GENERAL PROVISIONS

Q. What is LABOR LAW?

A. The law governing the rights and duties of the employer and employees:
- with respect to the terms and conditions of employment and
- with respect to labor disputes arising from collective bargaining respecting such terms and condictions
SOURCES:
- Statutes passed by the State
- Judicial decisions
- Rules and regulations by administrative agencies

Q: What are the CLASSIFICATIONS of LABOR LAW?

A: - Labor Standards
- Labor Relations
- Social Legislation

Q: What is LABOR STANDARDS?

A: These are the minimum terms and conditions of employment prescribed by existing laws, rules and
regulations relating to wages, hours of work, cost-of-living allowance and other monetary and welfare
benefits.

Ex: 13th month pay

Q: What is LABOR RELATIONS?

A: Defines and regulates the status, rights and duties, and the institutional mechanisms, that govern the
individual and collective interactions
of employers, employees, or their representatives.

It is concerned with the stabilization of relations of employer and employees and seek to forestall and adjust
the differences between them by the encouragement of collective bargaining and the settlement of labor
disputes through conciliation, mediation and arbitration.

Ex: Additional Allowance pursuant to CBA.

Q: What is SOCIAL LEGISLATION

A: It includes laws that provide particular kinds of protection or benefits to society or segments thereof in
furtherance of social justice

Ex: GSIS Law, SSS Law, Philhealth benefits.

Q: What is the STATE POLICY on Labor? (Art. 3)
A: 1. Afford full protection to labor
2. Promote full employment
3. Ensure equal work opportunities regardless of sex, race, or creed
4. Regulate the relations between workers and employers
5. Assure the rights of workers
a. to self organization
b. security of tenure
c. just and humane conditions of work
- participate in policy and decision-making processes affecting their right and benefits

Q: What is “Compassionate Justice”?

A: It is disregarding rigid rules and giving due weight to all equities of the case.
Ex: Employee validly dismissed may still be given severance pay.

Q: What are the ELEMENTS to determine EMPLOYER-EMPLOYEE RELATIONSHIP?

SC-DC A: - Selection and engagement of employee
- Control
- Dismissal
- Compensation
Note: All elements must concur.

Q: How should DOUBTS in the implementation and interpretation of the Labor Code and its IRR be
RESOLVED? (Art. 4)
A: They should be resolved IN FAVOR OF LABOR.

Q: To WHOM shall ALL RIGHTS and BENEFITS under the Labor Code APPLY? (Art. 6) A: All rights
and benefits apply alike to ALL WORKERS, whether agricultural or non-agricultural, UNLESS OTHERWISE
PROVIDED

Q: Who is an AGRICULTURAL/FARM WORKER?

A: - one employed in an agricultural or farm enterprise
- performs tasks which are directly related to agricultural activities of the employer
- and any activities performed by a farmer as an incident to farming operations

BOOK ONE
PRE-EMPLOYMENT

RECRUITMENT AND
PLACEMENT OF WORKERS

Q: Who is a WORKER? (Art. 13[a])

A: Any member of the labor force, whether employed or unemployed

Q: What is RECRUITMENT and PLACEMENT? (Art. 13[b])

A: - any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, -
includes referrals, contact services, promising or advertising for employment, locally or abroad, whether for
profit or not

Q: Who is DEEMED ENGAGED in RECRUITMENT and PLACEMENT?

A: - Any person or entity which, in any manner, offers or promises for a fee employment to 2 or more
persons

Q: What if employment is offered to ONLY 1 PERSON?

A: Immaterial. The number of persons dealt with is not an essential ingredient of the act of recruitment and
placement of workers. Any of the acts mentioned in the basic rule in Article 13(b) will constitute recruitment
and placement even if only one prospective worker is involved. The proviso merely lays down a rule of
evidence that where a fee is collected in consideration of a promise or offer of employment to two or more
prospective workers, the individual or entity dealing with them shall be deemed to be engaged in the act of
recruitment and placement. The words "shall be deemed" create that presumption. (People v. Panis [1988])

Q: What is the ESSENTIAL ELEMENT in determining whether one is engaged in

Recruitment/Placement?
A: It must be shown that the accused gave the complainant the distinct impression that she had the power or
ability to send the complainant for work, such that the latter was convinced to part with his money in order to
be so employed. (People v. Goce [1995])

Q: What is a PRIVATE EMPLOYMENT AGENCY?

A: Any person or entity engaged in the recruitment and placement of workers FOR A FEE WHICH IS
CHARGED, directly or indirectly, from the workers or employers or both

Q: What is a LICENSE?
A: It is issued by DOLE authorizing a person or entity TO OPERATE a private EMPLOYMENT agency

Q: What is a PRIVATE RECRUITMENT AGENCY?

A: It is any person or association engaged in the recruitment and placement of workers WITHOUT
CHARGING ANY FEE, directly or indirectly, from the workers or employers

Q: What is an AUTHORITY?
A: It is issued by DOLE authorizing a person or association TO OPERATE as private RECRUITMENT entity

Q: Who is a SEAMAN?
A: Any person employed in a VESSEL engaged in MARITIME NAVIGATION

Q: What is OVERSEAS EMPLOYMENT?

A: It is employment of a worker outside the Philippines

Q: Who is an EMIGRANT?
A: Any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or
resident permit or its equivalent in the country of destination

Q: What is the BAN on DIRECT-HIRING? (Art. 18)

A: It provides that an employer may only hire Filipino worker for overseas employment through POEA or
entities authorized by DOLE.

xpn: Direct hiring by members of the diplomatic organizations, international organizations and such other
employers as may be allowed by DOLE.
reason: To ensure the best possible terms and conditions of employment for the worker.

Q: Who may participate in RECRUITMENT in the PRIVATE SECTOR?

A: - Public employment offices
 - Private employment agencies
- Private recruitment entities
- Shipping or manning agents or representatives
- The POEA
- Construction contractors IF authorized by DOLE and the Construction Industry
Authority - Members of the diplomatic corps through the POEA
- Such other persons or entities as may be authorized by DOLE

Q: What are the MINIMUM CONDITIONS/PROVISIONS of OVERSEAS employment CONTRACTS? A:

(i) GUARANTEED WAGES for regular hours and overtime, NOT LOWER than the minimum wage
prescribed in all of the following:
- The HOST country
- Bilateral agreements or international conventions RATIFIED by the host country and the
Philippines - The Philippines
(ii) Free transportation to and from the worksite; or offsetting benefit
(iii) Free food and accommodation; or offsetting benefit
(iv) Just/authorized causes of termination of the contract or services of the worker

Note: An agreement that DIMINISHES the employee’s pay and benefits as contained in a POEA-approved
contract is VOID, unless such subsequent agreement is APPROVED by the POEA.

Q: What is the Rule on REMMITANCE of FOREIGN EXCHANGE EARNINGS? (Art. 22) A: It shall be
MANDATORY for all OFWs to remit a portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries

Q: What is the LIABILITY of the PRIVATE EMPLOYMENT AGENCY and the PRINCIPAL or FOREIGN
BASED EMPLOYER?
A: They are JOINTLY and SOLIDARILY LIABLE for any violation of the recruitment agreement and the
contracts of employment.
JURISDICTION

Labor Arbiter POEA

- original and - original and

exclusive jurisdiction exclusive
over all claims jurisdiction over
arising out of
employer-employee a. all cases which
relationship or by are administrative
virtue of any law or in character
contract involving relating to licensing
OFWs and registration of
recruitment and
- including claims for employment
actual, moral, agencies
exemplary and other
forms of damages b. disciplinary
action cases and
other special
cases, which are
administrative in
character, involving
employees,
principals,
contracting
partners and
Filipino migrant
workers

Q: What is the Rule on Recruitment of TRAVEL AGENCIES and SALES AGENCIES of AIRLINE
COMPANIES? (Art. 26)
A: They are PROHIBITED from engaging in the business of recruitment and placement of workers for
overseas employment whether for profit or not.

Q: Is the License or Authority transferable? (Art. 29)

A: NO, they are NON-TRANSFERABLE

Q: Who are ELIGIBLE to Participate in Recruitment/ Placement (Local/Overseas)? Art. 27, 28, 30, 31

A: Those who COMPLY with the following REQUIREMENTS:

- Citizenship:
a. Filipino citizens
 b. corporations, partnerships or entities at least 75% of authorized and voting
capital stock are owned and controlled by Filipinos
- Substantial capitalization
- Payment of registration fees
- Posting of surety/cash bonds

Q: When can a person applying with a private fee-charging employment agency BE CHARGED ANY
FEE?
A: When the applicant:
- has obtained employment through its efforts/facilities, or
- has actually commenced employment.

Note: A landbased agency may charge and collect from its hired workers a PLACEMENT FEE in an amount
EQUIVALENT to 1 MONTH SALARY, exclusive of documentation costs.

Q: What are PROHIBITED PRACTICES in Recruitment/Placement? (Art. 34)

A: - Charge or accept any amount greater than (that specified) by DOLE OR make a worker pay any amount
greater than actually received by him
- Furnish or publish any false notice/information/document related to
recruitment/employment - Commit any act of misrepresentation to secure a license or
authority
- Induce or attempt to induce a worker already employed to quit his employment in order to offer him
another UNLESS the transfer is designed to liberate a worker from oppressive terms and conditions -
Influence or attempt to influence any person/entity NOT to employ any worker who has not applied of
employment through his agency
- Recruitment/placement of workers in jobs harmful to public health or morality or to the dignity of the
country
- Obstruct or attempt to obstruct inspection by SLE or by his representatives
- Fail to file reports required by SLE
- Substitute or alter employment contracts without approval of DOLE
- To be engaged directly or indirectly in the management of a travel agency
- Withhold or deny travel documents from applicant workers before departure for monetary/financial
considerations other than authorized by law

Q: What are the REGULATORY POWERS of the Sec. of Labor and Employment (SLE)?
(Art.36) A: - Restrict and regulate the recruitment and placement activities of all agencies
- Issue orders and promulgate rules and regulations

Q: What are the VISITORIAL POWERS of SLE: (Art. 37)

A: SLE or his duly authorized representatives may, at any time:
- inspect the premises, books of account and records of any person or entity engaged in
recruitment/placement
- require it to submit reports regularly on prescribed forms
- act on violations of any provisions

Q: What are the ELEMENTS of ILLEGAL RECRUITMENT? (Art. 38)

A: (i) Offender is a non-licensee or non-holder of authority to lawfully engage in the recruitment/placement of
workers
(ii)Offender undertakes:
- Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and
includes referrals, contact services, promising or advertising for employment, locally or abroad, whether for
profit or not (Art. 13(b)) or
- Any of prohibited practices under Art. 34

Q: May a LICENSEE or HOLDER of AUTHORITY be held LIABLE for Illegal Recruitment? A: Yes, under
RA 8042 (Migrant Workers and Overseas Filipinos Act of 1995), which EXPANDED the list of prohibited acts
on Recruitment/Placement. Under said law, ANY PERSON (whether non-licensee, non holder of authority,
licensee or holder of authority) who COMMITS any of the PROHIBITED ACTS, shall be liable for Illegal
recruitment.

Q: When is ILLEGAL RECRUITMENT considered as ECONOMIC SABOTAGE? (Art.

38(b)) A: It is considered economic sabotage when committed:
a. by a syndicate – carried out by 3 or more persons conspiring/confederating with one another
b. in large scale – committed against 3 or more persons individually or as a group

Q: What is the PENALTY for illegal recruitment considered as ECONOMIC

SABOTAGE? A: It is penalized with LIFE IMPRISONMENT

Note: SLE CANNOT issue search warrant or warrants of arrest.

PENALTIES

Illegal Recruitment Life imprisonment +

as economic fine of
 sabotage P500,000-P1M

Licensee/holder of 2-5 yrs

authority violates imprisonment or
provisions fine of P10,000-
P50,000 or both

Non-licensee/non 4-8 yrs

holder of authority imprisonment or
violates provisions fine of P20,000-
P100,000 or both

Offender is a Penalty imposed

corporation, upon officer/s
partnership, responsible for
association, or entity violation

If officer is an alien,
he will be deported
without further
proceedings

In every case Automatic

revocation of
license or authority
and all permits and
privileges

EMPLOYMENT OF
NON-RESIDENT ALIENS

Q: Who are required to obtain an EMPLOYMENT PERMIT?

A: Only NON-RESIDENT aliens; For IMMIGRANTS and RESIDENT ALIENS what is required is an Alien
Employment Registration Certificate (AERC)

Q: When can an Employment permit be ISSUED? (Art. 41)

A: It is issued ONLY after determination of the non-availability of a person in the Philippines who is
competent and willing at the time of application to perform the services for which the alien is desired. Note:
After issuance of permit, alien CANNOT transfer to another job or change his employer without prior
approval of SLE.

Q: What is the DURATION of the Employment Permit?

A: Minimum of 1 year unless revoked and subject to renewal

Note: Aliens CANNOT be employed in entities engaged in NATIONALIZED

activities. XPNS:
1. Sec. of Justice specifically authorizes the employment of technical personnel OR 2. aliens are elected
members of the board of directors or governing body of corporations or associations

Q: Who are EXEMPTED from obtaining an Employment Permit?

A: - diplomatic services and foreign government officials
- officers and staff of international organizations and their legitimate spouses
- members of governing board who has voting rights only
- those exempted by special laws
- owners and representatives of foreign principals who interview Filipino applicants for employment
abroad
- aliens whose purpose is to teach, present and/or conduct research studies
- resident aliens

BOOK TWO
HUMAN RESOURCES DEVELOPMENT PROGRAM

TRAINING AND EMPLOYMENT

OF SPECIAL WORKERS

Q: Who are SPECIAL WORKERS?

A: - Apprentices
- Learners
- Handicapped Workers

Q: What are their CONDITIONS of EMPLOYMENT?

A: - work shall not exceed 8 hours per day

- allowed overtime but with pay

APPRENTICES

Q: Who is an APPRENTICE? (Art. 58)

A: Any worker who is covered by a WRITTEN APPRENTICESHIP AGREEMENT with an individual
employer or any of the entities recognized under the LC

Q: What is APPRENTICESHIP?
A: It is practical training on the job supplemented by related THEORETICAL INSTRUCTION.

Q: What is an APPRENTICEABLE OCCUPATION?

A: That which requires MORE THAN 3 MONTHS of practical training with theoretical instruction

Q: What is the STATUS of APPRENTICES?

A: They are CONTRACTUAL workers; employer is not obliged to employ them as regular workers.

Q: What is ON THE JOB TRAINING?

A: It is practical work experience through ACTUAL PARTICIPATION in productive activities given to or
acquired by an apprentice

Q: What are HIGHLY TECHNICAL INDUSTRIES?

A: Those which are engaged in the application of ADVANCED TECHNOLOGY

Q: What are RELATED THEORETICAL INSTRUCTIONS?

A: Technical information BASED on APPRENTICESHIP STANDARDS approved by the Bureau

Note: Prior approval by TESDA (formerly DOLE) of the proposed apprenticeship program is a condition sine
qua non. Otherwise, apprentice becomes a regular employee. (Nitto Enterprises vs. NLRC [1995]).

Q: What are the QUALIFICATIONS of an Apprentice?

A: - at least 15 years of age
(note: below 18 years of age shall not work in hazardous occupations)
- Physically fit for the occupation
- Possess vocational aptitude and capacity
- Possess:
a. the ability to comprehend, and
b. follow oral and written instructions

Q: When is an occupation deemed HAZARDOUS?

A: - nature of work exposes worker to dangerous environmental elemental contaminants, or work conditions

- workers are engaged in construction work, logging, firefighting, mining, quarrying, blasting, stevedoring,
deep-sea fishing, and mechanized farming
- workers are engaged in the manufacture or handling of explosives and other pyrotechnic
products - workers use, or are exposed to heavy or power-driven machinery or equipment

Q: Who may EMPLOY Apprentices?

A: Only employers in the:
- highly technical industries and
- only in apprenticeable occupations approved by SLE (Art. 60)

Q: What is the PERIOD of Apprenticeship?

A: Must NOT EXCEED 6 months:
- 2 months/400 hours: trades or occupations which normally require 1 year or more for proficiency - 1
month/200 hours: occupations and jobs which require more than 3 months but less than 1 year for
proficiency

Q: What is the STATUS of an apprentice hired after such term?

A: He is deemed a REGULAR EMPLOYEE; He cannot be hired as a probationary employee since the
apprenticeship is deemed the probationary period.

Q: What is the WAGE RATE of an Apprentice?

A: Start at NOT LESS THAN 75% of the statutory minimum wage for the first 6 months (except on the job
training); thereafter, shall be paid in full minimum wage, including the full COLA.

NOTE: Apprentices are contractual workers whose length of service depends on the term provided for in the
apprenticeship agreement. Thus, the employer is not obliged to employ the apprentice after the
completion of his training.

NOTE: An apprenticeship agreement with a MINOR shall be signed in his behalf by his parent or guardian,
or if the latter is not available, by an authorized representative of the DOLE.
GR: Apprenticeship programs shall be primarily VOLUNTARY
XPN: Compulsory Apprenticeship:
- national security or economic development so demand, the President may require compulsory training
- Services of foreign technicians are utilized by private companies in apprenticeable trades.

Q: May Apprentices be hired without compensation? (Art. 72)

A: Yes, IF training on the job is:
- required by school; or
- required by the Training Program Curriculum; or
- requisite for graduation; or
- requisite for Board Examination

Note: There is no employer-employee relationship between students on one hand, and schools, where there
is written agreement between them under which the former agree to work for the latter in exchange for
the privilege to study free of charge.

Q: What is the procedure for the Termination of Apprenticeship?

A: - party terminating
- shall serve a written notice on the other
- at least 5 days before actual termination,
- stating the reason for such decision
- and a copy of said notice shall be furnished the Apprenticeship Division concerned.

Q: What are the Causes of Termination of Apprenticeship

A:
1. By the employer

a. habitual absenteeism of apprentice

b.
c. willful disobedience of company rules OR insubordination to lawful order of superior

d. poor physical conditions, permanent disability or prolonged illness which incapacitates the
apprentice

e. theft/malicious destruction of company property/equipment

f. engaging in violence or other form of gross misconduct inside employer’s premises

2. By the apprentice

a. substandard or deleterious working conditions within employer’s premises

b. repeated violations by employer of the apprenticeship agreement

c. cruel or inhuman treatment by the employer or his subordinates

d. personal problems which prevent employee from a satisfactory performance of his job

e. bad health or continuing illness

Q: Who may file a complaint for any Violation of the Apprenticeship Agreement? A: Any interested
person or upon its own initiative, the appropriate agency of the DOLE or its authorized representative (Art.
65)

Q: Who is authorized to investigate any Violation of the Apprenticeship

Agreement? A: DOLE or its authorized representative

Q: May the Decision of the DOLE or its authorized representative be appealed? A: Yes, by any
aggrieved person to the SLE within five (5) days from receipt of the decision. The decision of the SLE shall
be final and executory.

LEARNERS

Q: Who are LEARNERS?

A: They are persons hired as trainees in semi-skilled and other industrial occupations which are non
apprenticeable and which may be learned through practical training on the job in a relatively short period of

time which shall not exceed 3 months, whether or not such practical training is supplemented by theoretical
instructions. (Art. 73)

Q: When may learners be EMPLOYED?

A: - When no experienced worker is available
- employment of learners is necessary to prevent curtailment of employment opportunities AND -
 employment does not create unfair competition in terms of labor costs or impair or lower working
standards. (Art. 74)

Q: What is the DURATION of the LEARNERSHIP period?

A: It shall NOT exceed 3 months

Q: What is the WAGE RATE of Learners?

A: It shall NOT be less than 75% of the minimum wage

Q: What is the QUALIFICATION of a learner?

A: Must be at least 15 years of age
Note: Those below 18 years of age shall not work in hazardous occupations

Q: Who May Employ Learners?

A: Only employers in semi-skilled and other industrial occupations which are non-apprenticeable.

Q: What is the STATUS of learners who have been allowed or suffered work during the first 2
months, if training is terminated by the employer before the end of the stipulated period though no
fault of the learner? (Art. 75)
A: They are deemed REGULAR employees

Q: What is the compensation for Learners in piecework?

A: Learners employed in piece or incentive-rate jobs during the training period shall be paid in full for the
work done. (Art. 76)
Learnership Apprenticeship

Nature Training on the Training in

job in trades which
semi-skilled are
and other apprentice-able
industrial , that is,
occupation or practical
trades which training on the
are non job
apprenticeable supplemented
and which may by related
be learned thru theoretical
practical instruction for
training on the more than 3
job in a months.
relatively short
period of time.

Duration Maximum: 3 Min: 3 months

of months
training Max: 6 months

Commit With No commitment

ment to commitment to to hire
employ employ the
learner as a
regular
employee if he
desires upon
completion of
learnership

In case Considered a Worker not

of regular considered as
pretermi employee if regular
nation pretermination employee.
of occurs after 2
contrac months of
t training and the
dismissal is
without fault of
the learner.

Cover Semi Highly technical

age skilled/Indus-tr industries and
ial only in
occupations industrial
occupation
 There is a list of No list
learnable
trades

by TESDA

Written Requires Requires

agree Learnership Apprentice-s
ment Agreement hip
Agreement

HANDICAPPED WORKERS

Q: Who are HANDICAPPED workers? (Art. 78)

A: Those whose earning capacity is impaired by:
- age or
- physical deficiency or
- mental deficiency
- injury.

Q: What is the DURATION of their EMPLOYMENT period?

A: There is no minimum or maximum duration; it depends on the agreement but it is necessary that there is
specific duration stated. (Art. 80)

Q: What is the WAGE RATE of handicapped workers?

A: It must be at least 75% of the applicable minimum wage.

Q: May Handicapped workers be hired as apprentices or learners?

A: Yes, IF their handicap is not such as to effectively impede the performance of job operations in the
particular occupations for which they are hired. (Art. 81)

Q: Can a handicapped worker acquire the status of a REGULAR EMPLOYEE?

A: Yes, IF work is usually or necessary or desirable to the business (Bernardo v. NLRC 3 [1999])

Q: Who may EMPLOY Handicapped Workers?

A: Employers in ALL INDUSTRIES, provided: the handicap is not such as to effectively impede the
performance of job operations in the particular occupations for which they are hired

Q: When can handicapped workers be EMPLOYED?

A: - When their employment is necessary to prevent curtailment of employment opportunities;
and - When it will not create unfair competition in labor costs or lower working standards. (Art.
79)

Note: Qualified disabled employees shall be subject to the same terms and conditions of employment and
the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able
bodied person.

Q: Does the mere fact that a worker has a disability, make him a handicapped worker? A: No, because
his disability may not impair his efficiency or the quality of his work. If despite his disability he can still
efficiently perform his work, he cannot be classified as handicapped; he would be considered a qualified
disabled worker entitled to the same treatment as qualified able-bodied workers. (Atty. Alcantara)
Handicapped Disabled
(Differently Abled)

Earning capacity is Refers to all

impaired by age, suffering from
or physical or restriction of
mental deficiency different abilities as
or injury a result of mental,
physical or sensory
impairment to
perform an activity
in the manner or
within range
considered normal
for a human being.

Covers only workers Covers all activities

 or endeavors.

Basis: Basis: range of

loss/impairment of activity which is
earning capacity normal for a human
being

Loss due to injury Restriction due to

or physical or impairment of
mental defect or mental/physical/
AGE sensory defect

If hired, entitled to If qualified, entitled

75% of minimum to all terms and
wage conditions as
qualified
able-bodied person

Subject to definite Handicapped

periods of worker gets all
employment terms & conditions
as qualified
able-bodied person

Employable only No restrictions on

when necessary to employment.
prevent curtailment
of employment Must get equal
opportunity opportunity and no
unfair competition

BOOK THREE
CONDITIONS OF EMPLOYMENT

Q: Who determines working conditions?

A: Generally, they are determined by the employer, as he is usually free to regulate, according to his
discretion, all aspects of employment.

Q: What is the limitation on the employer’s power to regulate working conditions? A: It must be done
in GOOD FAITH and not for the purpose of defeating or circumventing the rights of the employees.

Bona Fide Occupational Qualification (BFOQ)

Q: When does Book III of the LC apply?

A: Only if an EMPLOYER-EMPLOYEE RELATIONSHIP exists.

Chapter I - HOURS OF WORK

Q: Who is an EMPLOYER?
A: - One who employs the services of others
- One for whom employees work and who pays their wages and salaries

Q: Who is an EMPLOYEE?
A: - One who works for an employer
- A person working for salary or wages
- Any person in the service of another under a contract for hire, express or implied, oral or written

Q: What are the ELEMENTS of an Employer-Employee Relationship?

A: - Selection and engagement of the employee
- Payment of wages
- Power of dismissal
- Employer’s power to control the employee’s conduct (Note: Most important element)

Q: What is the CONTROL TEST?

A: Whether the employer controls or has reserved the right to control the
employee: - as to the RESULT of the work to be done, AND
- as to the MEANS and METHODS by which the same is to be accomplished. (“Brotherhood” Labor Unity
Movement of the Philippines, et al. vs. Zamora, [1987])

Note: No employer-employee relationship between Agent and Principal.

Q: What is the ECONOMIC TEST, which is also considered in addition to the right of control test? A:
These are the existing economic conditions prevailing between the parties, like the inclusion of the
employee in the payrolls, in determining the existence of an employer-employee relationship. (Sevilla v. CA
[1988])

Q: The employment contract stipulates that there is NO employer-employee relationship between the
parties. Is that valid?
A: - The existence of an employer-employees relation is a question of law and being such, it cannot be
made the subject of agreement. (Tabas v. California Manufacturing Co. [1990])

- The employment status of a person is defined and prescribed by law and not by what the parties say it
should be. In determining the status of the management contract, the "four-fold test" on employment earlier
mentioned has to be applied. (Insular Life Assurance Co. Ltd. v. NLRC [1998])

Q: Who is an INDEPENDENT CONTRACTOR?

A: One who exercises independent employment and contracts to do a piece of work according to his own
methods and without being subject to control of his employer except as to the result of the work.

Q: What is the LIMITATION on Management Prerogatives?

A: Such are not always absolute and must be exercised in GOOD FAITH and with due regard to the
RIGHTS OF LABOR.

Note: One’s employment, profession, trade or calling is a PROPERTY RIGHT and the wrongful interference
therewith is an actionable wrong.

Q: What is the NATURE of an Employment contract?

A: It is a contract in personam and binding only between parties.

Q: What determines the EXISTENCE of an employment relationship?

A: - It is determined by LAW and not by contract.
- Whether or not an employer-employee relationship exists between the parties is a question of FACT.
The findings of the NLRC are accorded not only respect but finality if supported by evidence.

Note: Taxi or jeepney DRIVERS under the “boundary” system are EMPLOYEES of the taxi or jeepney
OWNERS/OPERATORS; so also the passenger bus drivers and conductors. (Jardin vs. NLRC and
Goodman Taxi, February 23, 2000)

Q: Who are NOT covered by Book III?

A: - Government employees
- Managerial Employees and
- Other members of managerial staff
- Non-agricultural Field personnel
- Workers paid by Results
- Members of the family of employer dependent on him for support
- Domestic helpers AND persons in the personal service of another

Q: Who are GOVERNMENT EMPLOYEES?

A: - National Government or
- Any of its political subdivisions,
- including those employed in GOCC’s with original charters.

Q: What law GOVERNS government employees?

A: The Civil Service Law, rules and regulations.

Q: Who are MANAGERIAL EMPLOYEES? (Art. 82, 2nd paragraph)

A: Those whose primary duty consists os the management of the establishment in which they are employed
or a department or subdivision thereof, and other officers or members of the managerial staff.

They must meet all of the following conditions, namely:

- Primary duty: MANAGEMENT of the establishment in which they are employed or of a department or
sub-division thereof;
- Customarily or regularly direct the work of 2 or more employees
- Has the authority to hire or fire other employees of lower rank; OR their suggestions and
recommendations as to the hiring and firing and as to the promotion or any change of status of other
employees are given particular weight.

Q: Why are Managerial Employees NOT covered?

A: They are employed by reason of their special training, expertise or knowledge and for positions requiring
the exercise of discretion and independent judgment. Value of work cannot be measured in terms of hours.
Q: An employee is designated as “chief”, is he a managerial employee?
A: It depends. The functions of a managerial employee require the use of discretion and independent
judgment. Despite your title, it is the functions that are controlling. The fact that you are designated
"chief" only means you are number one in that category if you exercise no managerial functions (Namerco v
CIR).

- Mere designation to a position with a high-sounding title does not make an employee a managerial
employee where the exercise of the independent judgment is not present. (Sierra vs. NLRC)

- Managerial employees as defined in Art. 82 should be distinguished from Art. 212 (m). Art. 82 covers
managerial employees and supervisory employees as part of the managerial staff. (Nasurefco vs. NLRC)

Q: Who are officers or members of the MANAGERIAL STAFF?

A: Those who perform the following:
- Primary duty: performance of work directly related to management policies of the

employer; - Customarily and regularly exercise discretion and independent judgment;

- (i) Regularly and directly assist a proprietor or managerial employee OR

(ii) Execute under general supervision work along specialized or technical lines requiring special
training, experience or knowledge; OR
(iii) Execute under general supervision special assignment and tasks; and

- Do not devote more than 20% of their hours worked to activities which are not directly and closely
related to the performance of the work described above.

Q: Who are FIELD PERSONNEL?

A: - Non-agricultural employees
- Who regularly perform their duties
- Away from the principal place of business or branch office of the employer and
- Whose actual hours of work in the field cannot be determined with reasonable certainty.

Q: Who are workers PAID by RESULTS?

A: - Paid based on the work completed and
- Not on the time spent in working
- Including those who are paid on piece-work, “takay”, “pakiao”, or task basis if their output rates are in
accordance with the standards prescribed

Q: Who are DOMESTIC HELPERS and persons in the PERSONAL SERVICE of

another? A: - Those who perform services in the employer’s home
(i) which are usually necessary or
(ii) desirable for the maintenance or enjoyment thereof; OR

- Minister to the personal comfort, convenience or safety

(i) of the employer
(ii) as well as the members of his employer’s household.

Q: A house personnel was hired by a ranking company official to maintain a staff house provided for
the official. The personnel was paid by the company itself. Is the house personnel a domestic
servant of the company official?
A: NO, the personnel is not a domestic helpers but a REGULAR EMPLOYEE of the company. (Cadiz vs.
Philippine Sinter)

Q: Who are members of the FAMILY of the EMPLOYER?

A: Those who are dependent on him for support

Q: Why are members of the family of the employer not covered?

A: Because amounts given by way of support may far exceed the benefits to which the employees are
entitled under the laws on overtime.

Q: What are the 3 GROUPS of EMPLOYEES under the LC?

A: (i) Managerial employee:
- One who is vested with the powers or prerogatives
- to lay down and execute management policies
a. and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

(ii) Supervisory employees:

- those who in the interest of the employer,
- effectively recommend such managerial actions
- if the exercise of such authority is not merely routinary or clerical in nature but requires the use of
independent judgment.
 (iii) Rank-and-File employee: all employees not falling within any of the above definitions.

Q: What are the NORMAL HOURS of WORK? (Art. 83)

A: - Should NOT exceed eight (8) hours in a general working day.
- Only the maximum is prescribed, not the minimum. Part-time work is therefore not prohibited.

Q: Is an employer obliged to pay an employee, who rendered less than 8 hours of work, the wages
due for 8 hours-work?
A: No, following the principle of “a fair day’s wage for a fair day’s labor”

XPN: If by voluntary practice or policy, the employer, for a considerable period of time, has been paying
his employees wages due for 8 hours although their work shift is less than 8 hours.

Q: What are REGULAR WORKING DAYS?

A: - Should NOT be more than five days in a workweek.
- May begin at any hour and on any day, including Saturday or Sunday, designated by the employer

Q: What is the RATIONALE behind the 8-HOUR LABOR LAW?

A: It was designed not only to safeguard the health and welfare of the laborer but in a way to minimize
unemployment by forcing employers in cases where more than an 8-hour operations is necessary, to utilize
different shifts of laborers working only for 8 hours each. (Manila Terminal vs. CIR)

Q: Who are Health Personnel?

A: Includes resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers, laboratory
technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic
personnel.

Q: What are the Hours of work of health personnel?

A: 8 hours/5 days (40-hour work week), exclusive of time for meals
XPN: Where the exigencies of the service require that such personnel work for 6 days or 48 hours, they
shall be entitled to an additional compensation of at least 30% of their regular wage for work on the 6th day

Note: 40-hour work week does NOT apply if there is a training agreement between the resident physician
and the hospital and the training program is duly accredited or approved by appropriate government
agency. (Azucena)

Q: Who are COVERED by the 40-hour work week?

A: - Health personnel in cities and municipalities with a population of at least 1 million;
or - Hospitals and clinics with a bed capacity of at least 100

Note: Art. 83(2) does NOT require hospital to pay the employees a full weekly salary with paid 2 days off.
(San Juan de Dios Employees Assoc.-AFW et al. vs. NLRC)

Q: What are the Hours of Work of a WORKING CHILD?

A: (i) Child below 15 years of age (14 and below):
- Up to 20 hours a week, provided that the work shall not be more than 4 hours at any given day. -
No child below 15 years of age shall be allowed to work between 8pm and 6am of the following day;

(ii)Child 15 years of age but below 18 (15-17):

- Up to 40 hours a week, provided that the work shall not be more than 8 hours at any given day. -
No child 15-17 years of age shall be allowed to work between 10pm and 6am of the following day.

HOURS WORKED (Art. 84)

Q: What are considered HOURS WORKED?

A: (i) All time during which an employee is required
- to be on duty
- to be at a prescribed workplace and
(ii) All time during which an employee is suffered or permitted to work.

Note: Rest periods of short duration during working hours shall be counted as hours worked.

Q: What are the PRINCIPLES in Determining HOURS WORKED?

A: (i) All hours which the employee is required to give to his employer
- Regardless of whether or not such hours are spent in productive labor or involve physical or mental
exertion;

(ii) Rest period is EXCLUDED from hours worked, even if employee does not leave his workplace, it
being enough that:
 - he stops working,
- may rest completely and
- may leave his workplace, to go elsewhere, whether within or outside the premises of the workplace;

(iii) All time spent for work are considered hours work
- If the work performed was necessary
- If it benefited the employer

- Or the employee could not abandon his work at the end of his normal working hours because he had
no replacement
Provided, the work was with the knowledge of his employer or immediate supervisor

(iv)The time during which an employee is inactive by reasons of interruptions in his work beyond his
control shall be considered working time
- either if the imminence of the resumption of the work requires the employee’s presence at the place
of work or
- if the interval is too brief to be utilized effectively and gainfully in the employee’s own interest.

Q: When is WAITING TIME Considered WORKING TIME?

A: - If waiting is an integral part of his work or
- The employee is required or engaged by the employer to wait (ENGAGED TO WAIT)

Q: When is an employee considered WORKING WHILE ON CALL?

A: - When employee is required
- to remain on call in the employer’s premises or so close thereto
- that he cannot use the time effectively and gainfully for his own purpose

Q: When is waiting time NOT CONSIDERED working time?

A: When the employee is WAITING TO BE ENGAGED: idle time is NOT working time; it is not compensable.

Q: Are PRELIMINARY activities CONSIDERED as hours worked?

A: Yes, IF controlled or required by employer and are pursued necessarily and primarily for the employer’s
benefit.
Note: The controlling factor is whether waiting time spent in idleness is so spent predominantly for the
employer’s benefit or for the employee. (Azucena)

Q: When is time spent by the employee considered IDLE TIME?

A: - A laborer need NOT leave the premises of the factory, shop or boat in order that his period of rest shall
not be counted, it being enough that
(i) He “cease to work”,
(ii) May rest completely and leave or
(iii) May leave at his will the spot where he actually stays while working, or
(iv) Go somewhere else, whether within or without the factory, shop or boat. (Luzon Stevedoring vs. Luzon
Marine Dept. Union)

Q: When is working WHILE SLEEPING considered WORKING TIME?

A: - If SLEEPING:
(i) Is subject to serious interruption, OR
(ii) Takes place under conditions substantially less desirable than would be likely to exist at the
employee’s home i.e. firemen permitted to sleep a portion of the time they are so on duty at the fire station.
(Azucena)

Q: An employee is kept within reach through a cellular phone. Is he on call?

A: No. (Azucena)

Q: When is TRAVEL TIME considered WORKING TIME?

A: It depends. Normal travel from home to work is NOT working time.
XPNs: - Emergency call outside his regular working hours where he is required to travel to his regular place
of business or some other work site.
- Travel that is all in a day’s work: time spent in travel as part of the employee’s principal activity, i.e.
travel from job site to job site during the work day, must be counted as working hours. - Travel away from
home:
GR: Travel that required an overnight on the part of the employee when it cuts across the
employee’s workday is clearly working time.
The time is not only hours worked on regular workdays but also during corresponding working hours
on non-working days. Outside of these regular working hours, travel away from home is not considered
working time. (Azucena)
XPN: during meal period or when employee is permitted to sleep in adequate facilities furnished by
the employer.

Q: When are Lectures, Meetings and Training Programs considered WORKING

TIME? A: Shall NOT BE COUNTED as working time if ALL of the following conditions are
met: (i) Attendance is OUTSIDE of the employer’s regular working hours;
(ii) Attendance is in fact VOLUNTARY; and
 (iii) The employee DOES NOT PERFORM any productive work during such attendance.

Q: Are REGULAR FULL-TIME teachers entitled to salary and COLA during SEMESTRAL
BREAKS? A: Yes. (University of Pangasinan Faculty Union vs. University of Pangasinan)

Art. 85
MEAL PERIODS

Q: What is the DURATION of the MEAL PERIOD?

A: Every employer shall give his employees, regardless of sex, not less than 60 minutes or 1 hour time-off
for regular meals.

Q: Is the meal period COMPENSABLE?

A: Being time-off, it is NOT COMPENSABLE. Employee must be completely relieved from duty.

Q: When is the Meal Period considered COMPENSABLE

A: It is Compensable where the lunch period or mealtime:
- Is predominantly spent for the employer’s benefit or
- Where it is less than 60 minutes.
Note: Where during meal period, the laborers are REQUIRED to stand by for emergency work, or where
the meal hour is not one of complete rest, such is considered OVERTIME. (Pan Am vs. Pan Am Employees
Association)

Q: Are Meal Periods provided DURING OVERTIME WORK compensable?

A: Yes, the 1 hour meal period (non-compensable) is NOT given during overtime work because the latter is
usually for a short period and to deduct from the same would reduce to nothing the employees’ overtime
work. Thus the 1 hour break for meals during overtime should be treated as COMPENSABLE.

Q: What if meal period is less than 20 minutes?

A: It becomes only a REST PERIOD and is thus considered as work time - COMPENSABLE. Note: Rest
periods or coffee breaks running from 5 to 20 minutes shall be considered as COMPENSABLE working
time.

Q: When may the Meal Period BE SHORTENED to NOT LESS than 20

minutes? A: (i) At the instance of EMPLOYER: (still COMPENSABLE)
- work is Non-manual in nature or does not involve strenuous physical exertion;

- establishment regularly Operates less than 16 hours a day;

- work is necessary to Prevent serious loss of perishable goods.

- actual or impending Emergency or there is urgent work to be performed on machineries and

equipment to avoid serious loss which the employer would otherwise suffer

(ii) At the instance of EMPLOYEE: Employee requested for the shorter meal time so that he can leave
work earlier than the previously established schedule, then such shortened meal period is NOT
COMPENSABLE.
XPN: Shortened meal period upon request of employee is STILL COMPENSABLE provided: -
employees voluntarily agree in writing and are willing to waive overtime pay for the shortened meal
period;

- no diminution in the salary and other fringe benefits of the employees which are existing before the
effectivity of the shortened meal period;

- work of the employees does not involve strenuous physical exertion and they are provided with
adequate coffee breaks in the morning and afternoon;

- value of the benefits derived by the employees from the proposed work arrangements is equal to or
commensurate with the compensation due them for the shortened meal period as well as the overtime
pay for 30 minutes as determined by the employees concerned;

- overtime pay will become due and demandable after the new time schedule

- arrangement is of temporary duration.

NIGHT SHIFT DIFFERENTIAL (Art. 86)

Q: What is NIGHT SHIFT DIFFERENTIAL (NSD)?

A: - It is additional compensation
- of NOT LESS THAN 10% of an employee’s regular wage
- for every hour work
- done between 10:00 pm to 6:00 am,
- whether or not such period is part of the worker’s regular shift.
Q: Who are entitled to NSD?

A: NSD applies to all employees, EXCEPT:

1. Employees of the Government and any of its political subdivisions, including GOCC’s.
2. Retail and service establishments regularly employing not more than 5 workers. 3.
Includes task and contract basis
4. Domestic helpers and persons in the personal service of another.
5. Field personnel and other employees whose time and performance is unsupervised by the employer
6. Managerial employees

Q: What if work done between 10 PM and 6 AM is overtime work?

A: Then the 10% NSD should be based on the overtime rate.

Note: When the employee’s shift falls at nighttime, the receipt for overtime pay SHALL NOT preclude the
right to receive NSD.
NSD OVERTIME PAY

Payment for Payment for the

work done during excess of the
the night (10:00pm regular 8-hr work
6am)

10 % of basic 25% or 30% of

wage basic wage

Q: What is the FORMULA for computing NSD?

A: (10% x regular wage per hour) x no. of hours of work performed between 10pm-6am

SAMPLE ILLUSTRATION NO. 1 :

Daily Wage : P800

Work Schedule: 7:00pm – 3:00 am

Step 1: Compute for the hourly wage rate

Divide the Daily Wage by number of hours worked

e.g. P800 / 8 hrs. = P100

Step 2: compute wage between7:00pm -3:00 am

e.g. 8hrs x P100 = P800

Step 3: compute NSD

- (10% of regular wage per hour x no. of hours of work performed between
10pm-6am) e.g. (10% x P100) x 5 hours =P50

COMPUTATION:
7pm-10pm 3hrs x P100 P300
10pm-3am 5hrs x P100 500
NSD Pay 5hrs x P 10 50
------------
Total wage earned for the day P850

SAMPLE ILLUSTRATION NO. 2 :

Daily Wage : P800
Work Schedule: 8:00am – 5:00 pm

OT : 5:00pm – 12:00
mn

Step 1: get hourly wage rate

- Daily Wage divided by number of hours worked
e.g. P800 / 8 hrs. = P100

Step 2: compute wage between 8:00pm -5:00 am

e.g. 8hrs x P100 = P800

Step 3: compute OT Premium Pay between 5:00pm - 12mn

- [(25% x Wage per hour) + Wage per hour] x no.of OT hours

e.g.
(25% x P100)+100 = P125
x no.of OT hours (5pm-12mn)x 7hrs --------
P875
Step 4: compute NSD
- (10% of OT wage per hour x no. of hours of work performed between 10pm-6am)

e.g. (10% x P125) x 2 hours= P24

COMPUTATION:
8am-5pm 8hrs x P100.00 P800
5pm-12mn 7hrs x P125.00 875
NSD Pay 2hrs x P 12.50 24
------------
Total wage earned P1699

Q: May an employee waive the right to NSD?

A: No, such waiver is against public policy. (Mercury Drug Co.,Inc. vs. Dayao, et

al.) OVERTIME WORK (Art. 87)

Q: What is OVERTIME WORK?

A: Work performed BEYOND 8 HOURS within the worker’s 24 hour workday.
Note: - Express instruction from the employer to the employee to render overtime work is NOT required for
the employee to be entitled to overtime pay; it is sufficient that the employee is permitted or suffered to
work.
- However, written authority after office hours during rest days and holidays are required for entitlement to
compensation.

Q: What is a WORK DAY?

A: The 24-hour period which commences from the time the employee regularly starts to work (e.g. if the
worker starts to work 8 am today, the workday is from 8am today up to 8am tomorrow) Note: Minimum
normal working hours fixed by law need not be continuous to constitute the legal working day.
OVERTIME PAY PREMIUM PAY

Additional Additional
compensation for compensation for
work performed work performed
BEYOND 8 hours WITHIN 8 hours on
on ordinary days days when normally
(within the he should not be
worker’s 24-hour working (on non
workday) working days, such
as rest days and
special days.)

But additional
compensation for
work rendered in
excess of 8 hours
during these days
is also considered
 overtime pay.

PAY RATES
Overtime during Additional
a regular compensation of 25%
working day of the regular wage

Overtime during Rate of the first 8

a holiday or rest hours worked on
plus at least 30%
of the regular

wage (RW):

30% of 130% of RW
if done on a special
holiday OR rest day

30% of 150% of RW
done on a special
holiday AND rest day.

30% of 200% of RW
if done on a regular
holiday.

Q: What is the RATIONALE behind OVERTIME PAY?

A: (i) Employee made to work longer than what is commensurate with his agreed compensation for the
statutory fixed or voluntarily agreed hours of labor he is supposed to do. (PNB vs. PEMA and CIR) (ii)
Discourages the employer from requiring such work
- thus protecting the health and well-being of the worker, and
- also tend to remedy unemployment by encouraging employers to employ others workers to do what
cannot be accomplished during the normal hours of work. (Atty. Alcantara)
Daily Wage : P 800

Work Schedule: 8:00am – 5:00 pm

(inclusive of 1 hour
meal break)

OT : June 12
(Independence
day) 5:00pm –
10:00 pm

Q: Is right to OT PAY WAIVABLE?

A: The right to OTP cannot be waived as it is governed by law and not merely by the agreement of the
parties. (Cruz vs. Yes Sing)
XPN: If the waiver is done in exchange for certain valuable benefits and privileges, which may even exceed
the OTP, waiver may be permitted. (MERALCO Workers Union vs. MERALCO)

ILLUSTRATION :

REGULAR WORKDAYS
Regular basic wage + 25% of regular basic wage
Daily Wage : P 800
 Work Schedule: 8:00am – 5:00 pm
(inclusive of 1
hour meal break)

OT 5:00pm – 10:00
pm

Step 1. Get hourly wage rate

- Daily Basic Wage divided by number of hours worked
e.g. P800 / 8 hrs. = P100

Step 2: compute wage between 8:00am -5:00 pm

e.g. 8hrs x P100 = P800

Step 3: compute OT Premium Pay between 5:00 pm– 10pm

- [(25% x Wage per hour) + Wage per hour] x no.of OT hours
e.g. (25% x P100)+100 = P125
x no.of OT hours (5pm-10pm)= 5hrs
------------
P625
COMPUTATION:

8am-5pm 8hrs x P100.00 P800

5pm-10pm 5hrs x P125.00 625
------------
Total Take Home Pay P1,425

LEGAL OR REGULAR HOLIDAYS

Holiday wage rate + 30% of holiday rate (200%)

Step 1: get hourly wage rate

- Daily Basic Wage divided by number of hours worked multiplied by regular holiday wage
rate e.g. (P800 / 8 hrs.) x 200% = P200

Step 2: compute wage between 8:00pm -5:00 pm using holiday wage rate
e.g. 8hrs x P200 = P1600

Step 3: compute OT Premium Pay between 5:00 pm– 10pm

- [(30% x Wage per hour) + Wage per hour] x no.of OT hours
e.g. (30 % x P200)+200 = P 260
x no.of OT hours (5pm-10pm) = 5hrs
------------
P1300
COMPUTATION:

8am-5pm 8hrs x P200.00 P 1600

5pm-10pm 5hrs x P260.00 1300
------------
Total Take Home Pay P2,900

REST DAYS OR SPECIAL HOLIDAYS

Rest day or special holiday wage rate + 30% of rest day or special holiday wage rate (130%)
Daily Wage : P 800

Work Schedule: 8:00am – 5:00 pm

(inclusive of 1 hour
meal break)

OT : June 24
( Q.C. day - special
holiday)
5:00pm – 10:00 pm
Step 1: get hourly wage rate
- Daily Basic Wage divided by number of hours worked multiplied by special holiday wage
rate e.g. (P800 / 8 hrs) x 130% = P130
Step 2: compute wage between 8:00am -5:00 pm using special holiday wage
rate e.g. 8hrs x P130 = P1040

Step 3: compute OT Premium Pay between 5:00 pm– 10pm

- [(30% x HWage per hour) + HWage per hour] x no.of OT hours
e.g. (30 % x P130)+130 = P 169
x no.of OT hours (5pm-10pm) = 5hrs
------------
P 845
COMPUTATION:

8am-5pm 8hrs x P130.00 P 1040

5pm-10pm 5hrs x P169.00 845
------------
Total Take Home Pay P1,885

SCHEDULED REST DAY WHICH IS ALSO A SPECIAL HOLIDAY

Rest day & special holiday wage rate + 30% of rest day & special holiday wage rate (150%)
Work Schedule: 8:00am – 5:00 pm
(inclusive of 1 hour
meal break)

OT June 6
( Araw ng
Caloocan - special
holiday coinciding
w/ employee’s
scheduled rest
day) 5:00pm –
10:00 pm

Step 1: get hourly wage rate

Dail

- Daily Basic Wage divided by number of hours worked multiplied by rest day & special holiday wage
rate e.g. (P800 / 8 hrs) x 150% = P150

Step 2: compute wage between 8:00am -5:00 pm using special holiday wage
rate e.g. 8hrs x P150 = P1200
Step 3: compute OT Premium Pay between 5:00 pm– 10pm
- [(30% x HWage per hour) + HWage per hour] x no. of OT hours
e.g. (30 % x P150)+150 = P 195
x no. of OT hours (5pm-10pm)= 5hrs
------------
P 975
COMPUTATION:
8am-5pm 8hrs x P150.00 P 1200
5pm-10pm 5hrs x P195.00 975
------------
Total Take Home Pay P2,175

DOUBLE HOLIDAY
Double holiday wage rate + 30% of Double holiday wage rate (300%)

Step 1: get hourly wage rate

Daily Wage : P 800
 Work same time Good
Friday)
5:00pm – 10:00 pm

OT :

- Daily Basic Wage divided by number of hours worked multiplied by rest day & special holiday wage
rate e.g. (P800 / 8 hrs) x 300% = P300

Step 2: compute wage between 8:00am -5:00 pm using special holiday wage rate
e.g. 8 hrs x P300 = P2400

Step 3: compute OT Premium Pay between 5:00 pm– 10pm

- [(30% x HWage per hour) + HWage per hour] x no. of OT hours
e.g. (30 % x P300)+300 = P 390
x no. of OT hours (5pm-10pm) = 5hrs
------------
P 1950

COMPUTATION:
8am-5pm 8hrs x P300.00 P 2400
5pm-10pm 5hrs x P390.00 1950
------------
Total Take Home Pay P4,350

Note: Undertime work in any particular day shall NOT be offset by overtime work on ANOTHER day and on
the SAME day (Art.88)

Q: In lieu of overtime pay, the employee was given permission to go on leave on some other day, is
that valid?
A: No. Permission given to the employee to go on leave on some other day of the week shall NOT exempt
the employer from paying the additional compensation required.

Rationale: It would prejudice the employee, for he will be deprived of the additional pay for the overtime
work he has rendered and which is utilized to offset the undertime he may have incurred. Undertime could
be charged against the employee’s accrued leave.

EMERGENCY OVERTIME WORK

Q: May an employee be COMPELLED to render overtime work?

A: General rule: No. Overtime work is VOLUNTARY.
XPN: Compulsory Overtime Work in ANY of the following situations:
(i) - Country is at war, OR
- any other national or local emergency has been declared

(ii) - Necessary to prevent loss of life or property or

- In case of imminent danger to the public safety due to an actual or impending emergency in the
locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity.

(iii) Urgent work to be performed on machines and installations in order to avoid serious loss or damage
to the employer or some other cause of similar nature.

(iv)Work is necessary to prevent loss or damage to perishable goods.

(v) Completion or continuation of the work started before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business operations of the employer.

Note: - There should be payment of additional compensation.

- Employee’s refusal to obey the order of the employee constitutes insubordination for which he
may be subjected to disciplinary action. (Atty. Alcantara)

Q: The employment contract requires work for more than 8 hours a day with a fixed wage inclusive
of overtime pay. Is that valid?
A: It depends.
- When the contract of employment requires work for more than 8 hours at specific wages per day, without
providing for a fixed hourly rate or that the daily wages include overtime pay, said wages cannot be
considered as including overtime compensation. (Manila Terminal vs. CIR)
- However, the employment contract may provide for a “built-in” overtime pay. Because of this, non payment
of overtime pay by the employer is valid. (Engineering Equipment vs. Minister of Labor)
Q: What is the BASIS of computing the overtime pay and additional remuneration? (Art.90) A:
REGULAR WAGE: includes the cash wage only, WITHOUT deduction on account of facilities provided by
the employer

Chapter II - WEEKLY REST PERIODS (WRD)

Q: Discuss the right to WEEKLY REST DAY (WRD)?

A: - It shall be for the duty of every employer, whether or not operating for profit, to provide employee a rest
period of NOT LESS THAN 24 consecutive hours after EVERY 6 CONSECUTIVE normal working days.

Q: Who shall DETERMINE the WRD?

A: Employer shall determine and schedule the weekly rest day of his employees.
XPN: Employer shall respect the preference of employees when such is BASED ON RELIGION
GROUNDS.
XPN to the XPN: When such preference will PREJUDICE OPERATIONS of undertaking and the employer
cannot normally result to other remedial measures, employer may schedule the WRD of their choice for at
least 2 days in a month.

Note: Employee cannot be compelled to work on his rest day. UNA-EPA

Q: May an employee be COMPELLED to work during his WRD?

A: Yes, on ANY of the following situations:
(i) Urgent work, to avoid serious loss which the employer would otherwise suffer;

(ii) Nature of work requires continuous operations and stoppage of the work may result in irreparable
injury or loss to the employer; and

(iii) Abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be
expected to resort to other measures;

(iv) actual or impending Emergency (serious accident, fire, flood, typhoon, earthquake,

etc) (v)prevent or damage to Perishable goods;

(vi) Analogous (avail of favorable weather) or similar circumstances.

Q: May an employee VOLUNTEER to work on his rest day under OTHER

CIRCUMSTANCES? A: Yes, provided he shall express such desire in writing, subject to
additional compensation.

COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK (Art.93)

INSTANCE RATES OF
ADDITIONAL
COMPENSATION

work on a 30% of regular

scheduled rest wage (regular
day wage plus

30% of it)

no regular 30% of his regular

workdays and rest wage for the work
days performed on
Sundays and
holidays

work performed on 30% of the regular

any special holiday wage

The holiday work 50% of his regular

falls on the wage
employee’s
scheduled rest day

Note: This article does not prohibit a stipulation in the CBA for higher benefits.
 Scheduled rest day which is a regular holiday: entitled to additional compensation of at least 30% of his
regular holiday rate of 200% based on his regular wage rate. –CONFUSING (Grace)

HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES

RIGHT TO HOLIDAY PAY (Art. 94)

Q: Who are entitled to holiday pay?

A: Generally, all employees are covered by holiday pay except the following:

1. Government and any of its political subdivisions, including GOCCs (with original charter)
2. Retail and service establishments regularly employing less than 10 workers
3. Managerial employees and other member of the managerial staff
4. Domestic helpers and persons in the Personal service of another
5. Employees Engaged on task or contract basis or purely commission basis
6. Field personnel and other employees whose time and performance are unsupervised by the
employer
7. Employees paid Fixed amount for performing work irrespective of the time consumed in the
performance thereof
8. Members of the Family of the employer who are dependent on him for support

Q: Are Hourly Paid Faculty Members included within the coverage of employees entitled to holiday
pay?
A: No, They are not entitled.

Q: What are retail establishments?

A: They are engaged in the sale of goods to end-users for personal or household use (ex. Grocery).

Q: What are Service Establishments?

A: They are engaged in the sale of services to individuals to individuals for their own or household use (ex.
T.V. repair shop).

Q: Is an exercise of profession retail or service?

A: Exercise of a profession is neither both.

Q: What are regular holidays?

A: They are compensable whether worked or unworked. The following are considered regular holidays:
New Year’s Day January 1

Maundy Thursday Movable Date

Good Friday Movable Date

Eidul Fitr (Muslim Holiday) Movable Date

Araw ng Kagitingan April 9

Labor Day May 1

Independence Day June 12

National Heroes Day Last Sunday of

August

Bonifacio Day November 30

Christmas Day December 25

Rizal Day December 30

On the other hand, the following are considered the nationwide special holidays:
All Saints Day November 1
 Last Day of the Year December 31

Ninoy Aquino Day August 21 (RA 9256)

All other days declared by law or ordinance as

special holidays or non-working days

Eidul Adha shall be celebrated as a regional

holiday in the ARMM

Q: What are the classes of SPECIAL PUBLIC HOLIDAYS?

A: According to LOI814 as amended by LOI 1087, there are two classes of special public holidays and they
are:
1.nationwide special public holidays – treated as non working days except when otherwise
declared by the President
2.local special public holidays – treated as regular working days

Q: What is the difference between regular holiday and special holiday?

A: The following are the differences between regular and special holiday:
If unworked, regular If unworked, no pay
Q: What is HOLIDAY PAY? pay (subject to certain
conditions for daily-paid
A: It is a premium given to employees pursuant to law
employees)
even if he has not been suffered to work on a regular
holiday.

Q: May an employer require an employee to work on

a holiday?
If worked: 2x regular If worked: + 30%
A: Yes, but such employee shall be paid a pay (twice the regular premium (130% of the
compensation equivalent to twice his regular rate.
rate) regular wage)
Q: What is an important condition that should be
met in order to avail/receive the holiday pay? A: The
employee should NOT have been absent without pay Set by law Generally set by
on the working day preceding the regular holiday. proclamation
(Azucena)
Limited to those cited Not exclusive
Q: How is holiday pay rates computed? under Art. 94 of the
A: The following are the means to compute holiday pay Labor Code
rates:

Unworked - 100%
Worked - 200%
If also Rest day - 260%
REGULAR HOLIDAY SPECIAL HOLIDAY
Q: What is the difference between monthly paid and daily paid
employees? A: The difference between the two is the following:
MONTHLY PAID DAILY PAID
EMPLOYEE EMPLOYEE

one who is paid his one who is paid his

wage or salary for wage or salary ONLY
EVERY DAY OF THE on those days he
MONTH, including actually worked,
rest days, Sundays, except in cases of
regular regular or special
or special days, days, although he
although he does not does not regularly
regularly work on work on these days.
those days.

Q: Are monthly paid employees excluded from the benefits of holiday pay?
A: They are NOT excluded from the benefits of holiday pay. (Mantrade vs.

Bacungan) Q: What is the effect if a legal holiday falls on a Sunday?

A: A legal holiday falling on a Sunday creates no legal obligation for the employer to pay extra to the
employee who does not work on that day, aside from the usual holiday pay, to its monthly-paid employees.
(Wellington vs. Trajano)

Q: What is the concept of DOUBLE HOLIDAY PAY?

Ar: The concept of double holiday pay is shown under the following circumstances:

1. 200% of the basic wage: that the employee was PRESENT ON THE DAY IMMEDIATELY
PRECEDING the holiday or was on leave with pay

2. 300% of the basic wage: if the employee WORKED ON 2 REGULAR HOLIDAYS falling on the same
day provided that he worked or was on leave with pay or was on authorized absence on the day
prior to the regular holiday

3. If there are 2 succeeding regular holidays: the employee must be PRESENT ON THE DAY
IMMEDIATELY PRECEDING THE FIRST REGULAR HOLIDAY entitled to compensation to both;
otherwise, he must work on the first holiday to be entitled to holiday pay on the 2nd regular holiday

RIGHT TO SERVICE INCENTIVE LEAVE (SIL) (Art. 95)

Q: What is Service Incentive Leave

A: It is 5 days leave with pay for every employee who has rendered at least 1 year of service.

Q: Who are entitled to Service Incentive Leave?

A:
GR: Applies to every employee who has rendered at least 1 year of service.
XPNS: Employee in:

1. Government and any of its political subdivisions including GOCC’s

2. Those already enjoying the benefit
3. Domestic helpers and persons in the personal services of another
4. Those already enjoying vacation leave with pay of at least 5 days
5. Managerial employees
6. Field personnel and other employees whose performance is unsupervised by the employer
7. Employed in establishments regularly employing less than 10 workers
8. Exempt establishments
9. Engaged on task or contract basis, purely commission basis, or those who are paid in a fixed
amount of performing work irrespective of the time consumed in the performance thereof

Q: Are teachers of private schools on contract basis entitled to service incentive

leave? A: Yes, they are entitled to service incentive leave. (Cebu Institute of Technology vs.
Ople)

Q: Is SIL commutable to its monetary equivalent if not used or exhausted at the end of the year? A:
Yes. Cash equivalent is aimed primarily at encouraging workers to work continuously and with dedication to
the company.

Q: What does One year of service mean?

A: One year of service is:

1. service within 12 months

2. whether continuous or broken
3. reckoned from the date the employees started working
4. including authorized absences and paid regular holidays

5. unless the number of working days in establishment, as a matter of practice or policy or as

provided in the employment contract, is less than 12 months.

VACATION AND SICK LEAVE

Q: What is the nature of vacation and sick leave?

A: It is voluntary.

Q: What is the basis of vacation and sick leave?

A: It is a result of
1) collective bargaining negotiations or
2) established employer practice or policy, not granted by law

Q: How does an employee enjoy vacation and sick leave benefits?

A: It is enjoyed by the employee thru established practice or policy of the employer and cannot be
unilaterally withdrawn by the latter.
- It must be claimed, otherwise, waived
- cannot be converted into cash unless allowed by employer

Q: What is the reason/rationale for vacation and sick leave?

A: It is intended to give the employees a rest from the monotony and rigors of his daily work, on the other
hand, sick leave is meant to be enjoyed only during actual illness.

Q: What is PATERNITY LEAVE?

A: Paternity leave is:

1. granted to a married male employee (in private and public sectors)

2. allowing him NOT to report for work for seven days
3. but continues to earn the compensation,
4. provided his spouse has delivered OR suffered a miscarriage
5. for purposes of enabling him to actively lend support to his wife in her period of recovery
and/or in the nursing of the newly-born child.
NOTE: Avail only for the first 4 deliveries of his legitimate spouse with whom he is cohabiting.

Q: What is the SOLO PARENT LEAVE (RA 8972)?

A: It is a leave of not more than 7 working days granted every year to any solo parent employee who has
rendered service of at least 1 year

Q: Is the Solo Parent Leave convertible to cash?

A: No, It is not convertible to cash UNLESS specifically agreed upon otherwise, and is non-cumulative.

SERVICE CHARGES (Art. 96)

Q: What are service charges?

A: These are charges collected by hotels, restaurants and similar establishments shall be distributed at the
rate of:

∙ 85% for all covered employees to be equally distributed among them.

∙ 15% for management (may answer for losses and breakages)

Q: When does the SHARE OF EMPLOYEE be distributed and paid to them?

A: It shall be distributed and paid to the employees not less than once every 2 weeks or twice a month
intervals not exceeding 16 days.

Q: What happens if the Service Charge is abolished?

A: The share of the covered employees shall be considered integrated in their wages on the basis of the
average monthly share of each employees for the past 12 months immediately preceding the abolition.

∙ Service charges part of award in illegal dismissal cases.

Q: What is the difference between tip and service charge?

A:
SERVICE CHARGE TIP

What the restaurant what you give to the

requires you to pay waiter/waitress after
for the benefit of its eating if you like their
employees service

not a voluntary
contribution on the voluntary contribution
part of the customer

Q: What happens to the tips given freely by customers?

A: Pooled tips should be monitored, accounted for and distributed in the same manner as the service
charges where a restaurant or similar establishment does NOT collect service charges but has a practice
or policy of monitoring and pooling tips given voluntarily by its customers. (No. 7 [c] DOLE handbook on
Workers Statutory Monetary Benefits)

WAGES
Q: What is a wage?
A: It is the remuneration or earnings, whatever
Compensation for Denotes higher
designated, capable of being expressed in terms of
manual labor degree of
money, whether fixed or ascertained on a time, task,
employment
piece, or commission basis, or other method of
calculating the same, payable by an employer to an
Not subject to Subject to
employee under a written or unwritten contract of
execution except execution (Gaa
employment:
for debts incurred vs.CA)
for food, shelter,
1.for work done or to be done, or for services
clothing and
rendered or to be rendered; and
medical
attendance
2. fair and reasonable value of board, lodging,
WAGE SALARY

or other facilities customarily furnished by the employer to the employee as determined by

SLE.

[“Fair and reasonable value” shall not include any profit to the employer or to any person affiliated with
the employer.]

Q: What is the difference between wage and salary?

A:

∙ Salaries/wages of judgment obligor within 4 months preceding levy as are necessary for the support of the
family are EXEMPT from execution. (S13(j), Rule 39, Rules of Court)

Q: What does a fair day’s wage for a fair day’s labor mean?
A: If there is no work performed by the employee, there can be no wage or pay unless the laborer was able,
willing and ready to work but was prevented by management or was illegally locked out,

Q: To whom does this title does not apply?

A: It does not apply to the following:

1. farm tenancy or leasehold

2. household or domestic helpers, including family drivers and persons working in the personal
service of another

3. homeworkers engaged in needlework or in any cottage industry duly registered in

accordance with law.

4. Workers in duly registered cooperatives when so recommended by the Bureau of

Cooperative Development and upon approval of the SLE

Q: What is the difference between facilities and supplement?

A:
FACILITIES SUPPLEMENT

Items of expenses Extra remuneration

necessary for the or special privilege
laborer’s and his or benefit given to
family’s existence and or received by the
subsistence laborers over and
above their ordinary
(NOTE: does NOT earnings. (State
include tools of trade Marine Corp. and
or articles/ services Royal Line, Inc. v.
primarily for the Cebu Seaman’s
benefit of the Assoc., Inc.)
employer or
necessary to the
conduct of the
employer’s business.)

Forms part of the Independent of Wage

 wage

Deductible from wage Not wage deductible

for the benefit of the granted for the

worker and his family convenience of the
employer

∙ The criterion in determining whether an item is a supplement or facility is not so much with the kind of
benefit or item given, but its PURPOSE. (State Marine vs. Cebu Seamen’s Association)

Art. 99
REGIONAL MINIMUM WAGES

Q: What is the duty of Regional Tripartite Wages and Productivity Board (RTWPB)? A: Prescribe the
minimum wage rates for agricultural and non-agricultural employees and workers in each and every region
of the country.

Q: What is the purpose of fixing a minimum wage?

A:
1. provide rock-bottom which the rate must not fall (protecting laborer from sweatshop operators);

2. gives protection to enlightened employer who without legal compulsion voluntarily pays a decent
wage against competition of employer who pays employee inadequate wages and thus operate
lower cost and sell products at lower price. (Atty. Alcantara)

Q: Can an employer be exempt from his liability to pay minimum wages because of poor financial
condition of the company?
A: NO, the payment of minimum wage not being dependent on the employer’s ability to pay. Payment of
wage is a mandatory statutory obligation. (De Racho vs. Mun. of Ilagan)

Art. 100
PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS

Q: What is the concept of non-diminution rule?

A: Benefits being given to employees cannot be taken back or reduced unilaterally by the employer because
the benefit has become part of the employment contract, whether written or unwritten.

Q: What are the tests in ascertaining existence of binding and enforceable company
practice? Answer: The act of the employer
1) have been done for a long period of time;
2) have been done consistently and intentionally;
3) should not have been a product of erroneous interpretation or construction of a doubtful or
difficult question on law.

Question: What is a BONUS?

Answer:
1) amount granted and paid
2) to an employee
3) for his industry and loyalty
4) which contributed to the success of the employer’s business
5) and made possible the realization of profits

Question: Can bonus be demanded?

Answer:

GR: Bonus CANNOT be demanded. Given and paid ex gratia to the employee for his industry and
loyalty which contributed to the success and realization of profits of the employer’s business.

XPNS:
Given for a long period of time
1)Consistent and deliberate – employer continued giving benefit without any condition imposed for
its payment
2)Employer knew he was not required to give benefit
3)Nature of benefit is not dependent on profit
4)Made part of the wage or compensation agreed and stated in the employment contract.

Question: What is 13TH MONTH PAY (PD 851)?

Answer: An additional income equivalent to 1/12 of the total basic salary earned by an employee within a
calendar year. (Minimum Amount).
∙ May be given anytime but not later than December 24

Question: In what forms is the 13th month pay paid or given?

Answer: It is given in the forms of:
∙ Christmas Bonus
∙ Midyear Bonus
∙ Profit Sharing Scheme
∙ Other Cash bonuses amounting to not less than 1/12 of its basic salary
Difference of opinion on how to compute the 13th month pay does NOT justify a strike.

It must always be in the form of legal tender.

Free rice, electricity, cash and stock dividends and COLA are NOT proper substitutes for the 13th
month pay.

Question: What is the coverage of the 13th month pay?

∙ Rank-and-File employees
- regardless of their designation or employment status and
- irrespective of the method which their wages are paid,
- who worked for at least 1 month during the calendar year.

Question: What is covered by basic salary? 1. All rank-and-file 1. Government

employees
Answer: All remunerations or earnings paid by its
who 2. Employers of
employer for services rendered.
have worked at Household
least 1 month Helpers
Question: What are the exclusions to the basic
salary? Answer: Allowances and monetary benefits
2. Those with 3. Those already
which are NOT considered integrated as part of the
Multiple paying
regular or basic salary SUCH AS vacation and sick
leave credits, overtime, premium, night differential, employers
4. Employers paid
holiday pay and COLA .
3. Paid by result purely on
commission,
Qualification: They are treated as part of the basic
4. Private School fixed, boundary
salary if provided by reasons of individual or collective
Teachers or task basis
bargaining or company practice or policy.
5. Resigned or
Art. 101
Separated
PAYMENT BY RESULTS
employees
Question: What are the two categories of (proportional)
piece-rate workers?
Answer:
ENTITLED EXEMPTED
EMPLOYERS
1.those who are paid rates as prescribed in Piece Rate Orders by the DOLE
2.those who are paid output rates which are prescribed by the employer and are not yet approved by
the DOLE.

Question: What are non-time workers?

Answer: They are workers paid according to the quantity, quality or kind of job and the consequent results
thereof.

Question: What does workers paid on piece-rate basis mean?

Answer: Workers paid by standard amount for every piece or unit of work produced that is more or less
regularly replicated, without regard to the time spent in producing the same.

Question: What is the difference between piece rate employee from task work

employee? Answer:

produced, or the
PIECE RATE TASK WORK quantity thereof.

Stress is placed on Emphasis on the

the unit of work task itself
 Uniform amount is Payment is not
paid per unit reckoned in terms Question: What are the benefits payable to
accomplished of numbers of unit piece-rate workers?
produced, but in
terms of completion Answer:
of work.
1.Holiday pay
2.Applicable statutory minimum daily rate
3.Night shift differential pay
6.Premium pay (conditional) 4.Service incentive leave of five days with pay 5.Meal
7.Overtime pay (conditional) and rest periods
8.Thirteenth Month Pay

9.Other benefits granted by law, individual or collective bargaining agreements or company policy
or practice.

PAYMENT OF WAGES

Question: What is the form of payment of wages?

Answer:

GR: Wages shall be paid in legal tender. (Art. 102)

XPN: Payment of wages by bank checks, postal checks or money orders is allowed where such
manner of wage payment is:

1. Customary on the date of the effectivity of the Labor Code.

2. Stipulated in the CBA.

3. Where ALL of the following conditions are met:

a. there is a bank or other facility for encashment within a radius of 1 km. from the
workplace;

b. the employer or any of its agents or representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement.

c.the employees are given reasonable time during banking hours to withdraw their wages
from the bank which time shall be considered as compensable hours worked IF done during
working hours.

d. payment by check is with consent of the employees concerned IF there is no CBA

authorizing payment of wages by bank checks.

4. other instances when necessary because of special circumstances as specified in appropriate

regulations to be issued by the SLE.
∙ The use of tokens, promissory notes, vouchers, coupons, or any other form alleged to represent legal
tender is ABSOLUTELY PROHIBITED even when expressly requested by the employee.

TIME OF PAYMENT

Question: When should wages be paid?

Answer:

GR: Wages shall be paid

- At least once every two (2) weeks or
- twice a month at intervals not exceeding 16 days

∙ No employer shall make payment with less frequency than once a month.

XPN: Payment cannot be made with such regularity

- due to force majeure or
- circumstances beyond the employer’s control,
- in which case the employer shall pay wages immediately after such force majeure or
circumstance have ceased. (Art. 103)

Question: How will wages by results involving work which cannot be completed in 2 weeks be
paid? Answer:

1.Payment is made at intervals not exceeding 16 days, in proportion to the amount of work
completed.

2.Final settlement is made immediately upon completion of work.

Art. 104
PLACE OF PAYMENT

Question: Where is the place of payment of wages?

Answer:

GR: Place of payment shall be AT or NEAR the place of undertaking.

XPNS: permissible only under the following circumstances:

1.when payment cannot be effected at or near the place of work

a.by reason of the deterioration of the peace and order conditions or

b.by reason of actual or impending emergencies covered by fire, flood, epidemic, or other
calamity

c.rendering payment thereat permissible;

2.when the employer provides free transport to the employer back and forth;

3.any analogous circumstances provided that the time spent by the employer is collecting their
wage shall be considered a compensable hours worked.

∙ No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic,
dance hall, or other similar places or in place where games are played with stakes of money or things
representing money EXCEPT in case of persons employed in said places.

Question: When can payment thru banks be permitted?

Answer:

1. Written permission of the majority of the employees concerned in the establishments

2. Establishment must have 25 or more employees

3. Establishment must be located within 1km radius to the bank. (Section 7, R.A. 6727)

Question: What is the duty of the bank?

Answer: Whenever applicable and upon request of a concerned worker or union, the bank shall issue a
certification of the record of payment of wages of a particular worker or workers for a particular payroll
period.

Question: How does payment of wages be made?

Answer:
GR: Payment of wages shall be made DIRECTLY TO THE EMPLOYEES entitled thereto.

XPNS:
1.Force majeure rendering such payment impossible or under other special circumstances in
which the worker may be paid:
a.Through another person under written authorization, or
b.Upon authorization to a member of his family;

2.In case of death of the employee, in which case it will be paid directly to the worker’s heirs.

3.Authorized by existing laws

a.payment for the insurance premiums of the employee and

b.union dues where the right to check off provided in CBA or

c.authorized in writing by the individual employees concerned. (Sec. 5, Rule VIII, Book III,
IRR)

CONTRACTING OR SUBCONTRACTING

Question: What is contracting or subcontracting?

Answer:
1.refers to an arrangement
2.whereby a principal agrees to put out or farm out with a contractor or
 subcontractor 3. the performance or completion of a specific job, work or service
4.within a definite or predetermined period
5.regardless of whether such job, work or service to be performed or completed within outside the
premises of the principal. (D.O. 18-02)

Question: What is a contractual employee?

Answer: It includes one employed by a contractor or subcontractor to perform or complete a job, work, or
service pursuant to an arrangement between the latter and principal. (D.O. 18-02)

Question: What is job contracting?

Answer:

1.refers to the act of carrying out by a person

2.under his own responsibility, supervision and control,
3.the performance or completion of a specific job, service or work
4.which has been farmed out by another for the latter’s benefit.

Question: What is labor-only contracting?

Answer: It refers to an arrangement where the following conditions concur:
1.the person supplying workers to an employer
a.does NOT have substantial capital or investment in the form of tools, equipment,
machineries, work, premises, among others, or

b.even if such person has substantial assets, the same are not actually or directly used by
the employees contracted out;

2.the workers recruited and placed by such person are performing activities which are directly
related to the principal business of such employer.

Question: What does substantial capital or investment mean?

Answer: It refers to the capital stocks and subscribed capitalization in case of corporations, tools,
equipments, implement, machineries and work premises, actually and directly used by the contractor or
subcontractor in the performance or completion of the job, work or service contracted out. (D.O. 18-02)

∙ The law does NOT require BOTH substantial capital and investment in the form of tools, equipments,
machineries, etc. this is clear from the use of conjunction “or”. If the contention was to require the
contractor to prove that he has both capital and requisite investment, then the conjunction “and” should
have been used. (Virginia Neri vs. NLRC, GR No. 97008-09, July 23, 1993)

Question: What does the right to control mean?

Answer: It refers to the right reserved to the person for whom the services of the contractual workers are
performed, to determine not only the end to be achieved, but also the manner and means to be used in
reaching that end. (D.O. 18-02)

Question: What are the conditions before permitting job contracting?

Answer:

1.The labor contractor must be duly LICENSED by the appropriate Regional Office of the DOLE
2.There should be a WRITTEN CONTRACT between the labor contractor and his client
employer that will assure the employees at least the minimum labor standards and benefits
provided by existing laws.

∙ The employees of the contractor or subcontractor shall be paid in accordance with the provisions of
the Labor Code. (Art. 106)

Question: What is the liability of the employer entering contract with a contractor or subcontractor?

Answer: Joint and several liability with his contractor or subcontractor to such employees to the extent of the
work performed under the contract.

Question: What is the difference between job contracting and labor-only

contracting? Answer:

JOB CONTRACTING LABOR-ONLY CONTRACTING

 Liability is limited (shall be solidarily liable with Liability extends to all those provided under the
employer only when the employer fails to comply Labor Standards law
with requirements as to unpaid wages and other
labor standards violations)

Permissible subject only to certain conditions Prohibited by Law

The contract has substantial capital or investment Has no substantial capital or investment

Question: What are the grounds for delisting of contractors or

subcontractors? Answer:

1. Non-submission of contracts between the principal and the contractor or subcontractor when
required to do so;

2. Non-submission of annual report;

3. Findings through arbitration that the contractor or subcontractor has engaged in labor-only
contracting and other prohibited activities;

4. Non-compliance with labor standards and working conditions. (Section 16, D.O. 18-02)

Indirect Employer
The provisions of Art 106 shall likewise apply to ANY person, partnership, association or corporation which,
NOT being an employer, contracts with an independent contractor for the performance of any work, task, job
or project. (Art. 107)

∙ The employer or indirect employer may require the contractor or subcontractor to furnish a bond to the cost
of labor under contract conditioned to answer for the wages due the employees should the latter fail to
pay the same. (Art. 108)

∙ Every employer or indirect employer shall be held responsible with his contractor or subcontractor for any
violation of the provisions of the Labor Code.

∙ For purposes of determining their civil liability, every employer or indirect employer shall be considered as
direct employers. (Art. 109)

∙ Where however the law provides for the subsidiary liability of the principal for unpaid wages as in RA 6640,
the same should be given its literal meaning and applied without interpretation. The term “subsidiarily
liable” as used in RA 6640 means “secondarily liable.”

Secondary liability is a personal liability which attaches when the remedy against one primarily liable has
been exhausted and which may be satisfied from all assets of one secondarily liable. (Enjay, Inc. vs.
NLRC, GR No. 110240, July 4, 1995.)
∙ Under SSS Law (RA 8282), the principal is also made subsidiarily answerable for the liabilities of its job
contractor.

Question: What happens if the employer’s business experiences BANKRUPTCY OR LIQUIDATION?

Answer: His workers shall enjoy first preference as regards their wages and monetary claims, any provision
of the law to the contrary notwithstanding.
IMPORTANT! Such unpaid wages and monetary claims shall be paid in FULL before the claims of the
government and other creditors may be paid. (Art. 110)

Question: What the principles underlying the preference?

Answer:

1. Declaration of bankruptcy or judicial liquidation before enforcement of the worker’s preferential

right

2. The right does not constitute a lien to the property of the insolvent debtor in favor of workers
(DBP vs. NLRC, GR No. 8276384, march 19, 1990 and GR No. 97175, March 18, 1993)
 3. The preference in favor of the employees applies to discharge of funds. The preference does not
only cover unpaid wages, it also extends to termination pay and other monetary claims.

Termination pay, after all, is considered as additional remuneration for services rendered to the
employer for a certain period of time; it is computed on the basis of length of service.(PNB vs. Crux,
GR No. 80593, December 2, 1989)

Question: What are the limitations to the assessment of attorney’s lien against the culpable party
(Art. 111)?

Answer:

1. In case of unlawful withholding of wages – 10% of the amount of wages to be recovered.

2. It shall be unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees that exceed 10% of the amount of wages
recovered.

∙ The prohibition for attorney’s lien refers to proceedings for recovery of wages and not to services rendered
in connection with CBA negotiations.

In the latter case, the amount of attorney’s fees may be agreed upon by the parties and the same is to be
charged against union funds as provided for in Art. 222 of the Labor Code. (Pacific Banking Corporation vs.
Clave GR No. L-56965, March 7, 1984)

PROHIBITION REGARDING WAGES

Question: What does the non-Interference in the disposal of wages (Art. 112)

means? Answer:

1.Limit or otherwise interfere with the freedom of any employee to dispose of his wages;

2.Force, compel, or oblige his employees to purchase merchandise, commodities or other property
from any person, or otherwise make use of any store, or service of such employer or any other
person.

WAGE DEDUCTIONS

Question: What are the ALLOWABLE DEDUCTIONS?

Answer:

1. Deductions under Art. 113 for insurance premiums

2. Union dues in cases where the right of the worker or his union to check off has been recognized
by the employer or authorized in writing by the individual worker concerned (Art. 113). Paragraph
(o) Article 241 provides that special assessments may be validly checked-off provided that there is
an individual written authorization duly signed by every employee.

3. Deductions for SSS, Medicare and Pag-Ibig Premiums

4. Taxes withheld pursuant to the Tax Code

5. Deductions under Art. 114 for loss or damage to tools, materials or equipments

6. Deductions made with the written authorization of the employee for payment to a third person, as
authorized under Sec 13, Rule VIII, Book III of the IRR

7. Deductions as disciplinary measures for habitual tardiness (Opinion dated March 10, 1975 of the
SLE)

8. Agency Fees under Art. 248(e)

9. Deductions for value of meals and facilities freely agreed upon

10. In case where the employee is indebted to the employer where such indebtedness has become
due and demandable. (Art. 1706, Civil Code)

11. In court awards, wages may be subject of execution or attachment, but only for debts incurred
for food, shelter, clothing, and medical attendance. (Art. 1703, Civil Code)
 12. Salary deduction of a member of a legally established cooperative (RA 6938, Art. 59)

∙ Union Dues: employee’s check-off authorization, even if declared irrevocable, is good only as long as the
employee remains a member in good standing of the union concerned

Question: Can the employer make deductions from an employee’s wage?

Answer:

GR: No employer shall require his worker to make deposits from which deductions shall be made for
the reimbursement of loss or damage to tools, materials, or equipment supplied by the employer.
(Art. 114)

XPNS:
1. The employer is engaged in trades, occupations or business where the practice of making
deductions or requiring deposits is a recognized one.

2. Necessary or desirable as determined by the SLE in appropriate rules and regulations.

Question: What are the conditions for deductions?

Answer:

1.The employee concerned is clearly shown to be responsible for the loss or damage; 2.The

employee is given reasonable opportunity to show cause why deduction should not be made;

3.The amount of such deduction is fair and reasonable and shall not exceed the actual loss or
damage;

4.The deduction from the wages of the employee does not exceed 20% of the employee’s wage in a
week.

Arts. 116-119

Question: What are considered UNLAWFUL ACTS?

Answer:

1. Withholding of any amount,

a. by any person,
b. indirectly or directly,
c. from the wage of a worker or
d. induce him to give up any part of his wages
e. by force, stealth, intimidation, thereat or by any other means whatsoever without the
worker’s consent. (Art. 116)

2. Make any deductions

a. from the wages of any employee
b. for the benefit of the employer or his representative or intermediary
c. as consideration of a promise or employment or retention in employment. (Art 117)

3. Refusal of an employer
a. to pay or reduce the wages and benefits,
b. discharge or in any manner discriminate against any employee

c. who has filed any complaint or instituted any proceeding under this title or
d. has testified or is about to testify in such proceedings. (Art. 118)

4. For any person to make any statement, report or record filed or kept pursuant to the provisions
of the Labor Code
- knowing such statement, report or record to be false in any material aspect. (Art. 119)

WAGE STUDIES, WAGE AGREEMENTS AND WAGE DISTORTIONS

Question: What is a Minimum Wage?

Answer: It is the lowest wage rate fixed by law that an employer can pay his employees.

Question: What is a Wage Order?

Answer: It refers to the Order promulgated by the RTWPB pursuant to its wage fixing authority.

Question: When does a wage order take effect?

Answer: It takes effect after 15 days from the complete publication in at least 1 newspaper of general
circulation in the region.
 Frequency: a wage order issued by the Board may NOT BE DISTURBED for a period of 12 months from
its effectivity and no petition for wage increase shall be entertained during said period, unless Congress
itself issue a law increasing the wages.

Question: What are requisites for validity of wage order?

Answer:

1.Public consultation and hearing

2.Publication in a newspaper of general circulation

Question: When does an appeal to a wage order be made?

Answer:

1. It shall be made within 10 days from publication

2. The commission will decide within 60 calendar days from the filing of the aggrieved party

3. Grounds:
a.Non-conformity with prescribed guidelines and/or procedure
b.Questions of law
c.Grave abuse of discretion

GR: Appeal will NOT stay the wage order.

XPN: Appellant files adequate surety

Art. 124

Question: What are STANDARDS OR CRITERIA FOR MINIMUM WAGE FIXING?

Answer:

1. Demand for living wages

2. Wage adjustment vis-à-vis the consumer price index

3. Cost of living and changes or increase therein

4. Needs of workers and their families

5. Need to induce industries to invest in the countryside

6. Improvements in standards of living

7. Prevailing wage levels

8. Fair return of capital invested and the capacity to pay of employers

9. Effects on employment generation and family income

10. Equitable distribution of income and wealth along the imperatives

Question: What is Regional Minimum Wage?

Answer: It is the lowest basic wage rates that an
employer can pay his workers, as fixed by the Question: How does a correction of a wage
RTWPB, and which shall not be lower than the distortion be made?
applicable statutory minimum wage rates. Answer:

Question: What is a wage distortion? ∙ Wage Distortion: NON-Strikeable

Answer:

1.a situation Organized Unorganized

2.where an increase in wage Establishment Establishments
3.results in the elimination or severe contraction of
intentional quantitative differences in wage or salary the employer and the employer and
rates the union shall the workers shall
4.between and among the employee-groups in an NEGOTIATE to ENDEAVOR to
establishment correct distortion correct the
5.as to effectively obliterate the distinctions embodied distortion
in such wage structure based on skills, length of
service or other logical bases of differentiation.
 any dispute shall any dispute shall The dispute will be The NLRC shall
be resolved be settled through resolved within 10 conduct continuous
through a the NCMB days from the time hearings and
GRIEVANCE the dispute was decide the dispute
PROCEDURE referred to within 20 days
under the CBA voluntary from the time the
arbitration same was referred
If it remains if it remains
unresolved, it shall unresolved within
be dealt with 10 days it shall be
through REFERRED to the
VOLUNTARY NLRC
ARBITRATION
∙ Wage Order can not prevent workers in particular firms or enterprises or industries from bargaining for
higher wages with their respective employers. (Art. 125)

∙ No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal
or entity against any proceedings before the Commission or the Regional Boards. (Art. 126)

∙ No wage order issued by any Regional Board shall provide for wage rates lower than the statutory
minimum wage rates prescribed by Congress. (Art. 127)

ADMINISTRATION AND ENFORCEMENT

Question: What are the 3 Kinds of powers of the SLE?

Answer:
1. Visitorial powers
2. Enforcement Powers
3. Appellate or power to review

Question: What is a visitorial power?

Answer:

1) access to employer’s records and premises at any time of the day or night, whenever work is
being undertaken therein
2) to copy from said records
3) question any employee and investigate any fact, condition or matter which may be necessary
to determine violations or which may aid in the enforcement of the Labor Code and of any
labor law, wage order, or rules and regulation issued pursuant thereto.

Question: What is enforcement power?

Answer:

1)Issue compliance orders

2)Issue writs of execution for the enforcement of their orders, EXCEPT in cases where the
employer contests the findings of the labor officer and raise issues supported by documentary
proof which were not considered in the course of inspection

3)Order stoppage of work or suspension of operation when non-compliance with the law or
implementing rules and regulations poses grave and imminent danger to health and safety of
workers in the workplace;

4)Require employers to keep and maintain such employment records as may be necessary in
aid to the visitorial and enforcement powers.

Question: What are the VIOLATIONS UNDER ART. 128?

Answer:

1.Obstruct, impede, delay or otherwise render ineffective the orders of the SLE or his authorized
representatives

2.Any government employee found guilty of, or abuse of authority, shall be subject to administrative
investigation and summary dismissal from service.

Question: What are the limitations to other courts?

Answer: In relation to enforcement orders issued under Art. 128, no inferior court or entity
 1. shall issue temporary or permanent injunction or restraining order or
2. assume jurisdiction over any case

Art. 129
RECOVERY OF WAGES, SIMPLE MONEY CLAIMS, AND OTHER BENEFITS

Question: What are the powers of a Regional Director?

Answer: He exercises jurisdiction over recovery of wages, et. al.

Provided:
1.Claim is presented by an employee/person employed in domestic or household service, or
househelper

2.Claim arises from employer-employee relations

3.Claimant does not seek reinstatement

4.Aggregate amount of the money claim does not exceed P5,000 inclusive of legal

interest ∙ Resolved within 30 calendar days from the date of filing.

Art. 128 Art. 129 Art. 217(a)(6)

Visitorial Regional Labor Arbiter
and Directors
Enforce-me
nt Powers
of SLE

Inspection of Adjudication of Labor Arbiter

establishment employees’ exercises original and
s and claims for exclusive jurisdiction
issuance of wages and
orders to benefits
compel
compliance
with labor
standards,
wage orders
and other
labor laws

Enforcement Limited to All other claims arising

of labor monetary from
legislation in claims employer-employee
general relations

Proceeding is Initiated by Labor Arbiter decide

an offshoot of sworn case within 30
routine complaints filed calendar days afte
inspections by any submission of th
interested case by the parties fo
party decision
No Jurisdictional 1) All other claim
jurisdiction al requirements: arising from
requirements employer-employee
1) Complaint relations
WORKING CONDITIONS FOR SPECIAL
arises from GROUPS OF EMPLOYEES
employer 2) including those o
employee persons in domestic o EMPLOYMENT OF WOMEN
relationship household service
Art. 130
2) Claimant is 3) involving an amoun
an employee exceeding P5,000 Question: Can a woman be permitted to work
or person with or without compensation?
employed in 4) whether or no Answer:
domestic or accompanied with GR: NO WOMAN regardless of age shall be
household claim for reinstatemen employed or permitted to work, with or without
service or a
compensation:
househelper

3) Complaint 1. In any industrial undertaking or branch

does NOT thereof between 10pm and 6am the
include a claim following day.
for
reinstatement 2. In any commercial or non-industrial
undertaking or branch thereof, other than
4) Aggregate agricultural, between midnight and 6am of
money claim of the following day
EACH claimant
does not 3. In any agricultural undertaking at
exceed
nighttime unless she is given period of rest
P5,000
not less than 9 consecutive hours.
Order is Order is Appealable to NLRC
XPNS (Art. 131):
appealable to appealable to
SLE 1. actual or impending emergencies
NLRC
a. caused by serious accident, fire, flood,
typhoon, earthquake, epidemic, other
disasters, or calamity
b. to prevent loss of life or property or
c. in case of force majeure or
d. imminent danger to public safety

2. urgent work

a. to be performed on machineries, equipment or installations,

b. to avoid serious loss which the employer would otherwise suffer

3. work is necessary to prevent serious loss to perishable goods

4. woman employee
a. holds a responsible position of managerial or technical nature, or
b. has been engaged to provide health and welfare services

5. nature of the work

a. requires the manual skill and dexterity of women workers and
b. the same cannot be performed with equal efficiency by male workers

6. women employees are immediate members of the establishment or undertaking

7. analogous cases exempted by the Secretary of Labor in appropriate regulations.

∙ The operation of CALL CONTRACT CENTER which provides offshore case solutions to US based clients
who phone in to conduct product inquiries and technical support, operating for 24/7, has been exempted
from the prohibition considering the inevitable time difference between the US and the Philippines and the
peak time for its operation is between 8:00 pm to 10:00 am Manila time, thereby making it necessary for
eighty (80%) of its employees, including women, to work during graveyard shift. (BWC-WHSD Opinion No.
491, s 2003).

Art. 132

Question: What are FACILITIES FOR WOMEN?

Answer: SLE may require employers to:
1) Provide seats which are proper for women
2) Establish separate toilet rooms and lavatories for men and women
3) Provide at least one dressing room for women
4) Establish a nursery in the establishment
 5) Determine appropriate minimum age and other standards for retirement or termination of employment
in special occupations such as those of flight attendants and the like

Question: What is MATERNITY LEAVE?

Answer:

1.period of time
2.which may be availed of by a woman employee,
3.married or unmarried,
4.to undergo and recuperate from child birth, miscarriage or complete abortion
5.during which she is permitted to retain her rights and benefits flowing from her employment. (Art.
133) (SEE SSS LAW)

Question: What is PATERNITY BENEFIT (RA 8178)?

Answer:

1.granted to male married employees in the private or public sector

2.allows employee not to report for work within 7 working days

3.conditions:
a. spouse has delivered a child or
b.suffered a miscarriage

4.purpose: enabling male employee to effectively lend support to his wife in her period of recovery
and/or in the nursing of the newly-born child

5.requires notification of employer of the pregnancy of his legitimate spouse and the expected
delivery date

6.employee is entitled 7 days with full pay for the first 4 deliveries of the legitimate spouse with
whom he is cohabiting

7.benefit is not convertible in cash in case it is not availed of

Art. 134

FAMILY PLANNING SERVICES

Question: What is the duty of employer?

Answer: He is required to provide clinic or infirmary in order to provide free family planning services
to their employees which shall include but not limited to the application or use of contraceptives or
intra-uterine devices.

∙ The rule applies only to all private establishments which habitually employ 200 or more employees at any
given period within a year.

Question: What is the duty of DOLE?

Answer: Develop and prescribe incentive bonus scheme to encourage family planning among female
workers in any establishment or enterprise.

Question: What are the UNLAWFUL ACTS AGAINST WOMEN EMPLOYEES?

Answer:
1. Discrimination with respect to the terms and conditions of employment solely on account of sex a.
Payment of lesser compensation to a female employee as against a male employee for work of
equal value
b. Favoring a male employee with respect to promotion, training opportunities, study and
scholarship grants on account of gender (Art. 135)

2. Stipulating,
a. whether as a condition for employment or continuation of employment,
b. that a woman employee shall not get married,
c. or that upon marriage, such woman employee shall be deemed resigned or separated. (Art.
136)

3. Dismissing, discriminating or otherwise prejudice a woman employee by reason of her being married
(Art. 136)

4. Denying any woman employee benefits provided by law (Art. 137)

 5. Discharge any woman for the purpose of preventing her from enjoying any of the benefits provided by
law (Art. 137)

6. Discharging such woman on account of her pregnancy, or while on leave or in confinement due to her
pregnancy (Art. 137)

7. Discharging or refusing the admission of such woman upon returning to her work for fear that she
may again be pregnant (Art. 137)

∙ Philippine AIDS Prevention and Control Act of 1998 (RA 8504): discrimination in any form from pre
employment to post employment, including hiring, promotion or assignment, based on the actual,
perceived or suspected HIV status of an individual is UNLAWFUL.

Art. 138

Question: What is the classification of certain women workers?

Answer:

1. any women who is permitted or suffered to work

2. with or without compensation
3. in any night club, cocktail lounge, massage clinic, bar or similar establishment
4. under the effective control or supervision of the employer for a substantial period of time 5. shall
be considered as an employee of such establishment for purposes of labor and social legislation.

EMPLOYMENT OF MINORS

Question: What is the Minimum Employable Age?

Answer:
Age of Condition
Minor

Below 15 GR: Not employable

XPN: when child works directly

under the sole responsibility of
his parents or guardian
AND his employment does not
interfere with his schooling

Above Employable for such number of

15 but hours and such periods of day as
below determined by the SLE in
18 appropriate regulations.

Question: What are the general prohibitions?

Answer:

1. No person under 18 years of age will be allowed to be employed in an undertaking which is

hazardous or deleterious in nature.

2. No employer shall discriminate against any person in respect to terms and conditions of
employment on account of his age.

Question: What is a non-hazardous work?

Answer: It is any work or activity in which the employee is not exposed to any risk which constitutes an
imminent danger to his safety and health

Question: When is an employment of person below 15 allowed (RA 7658)?

Answer:

1. The child works directly under the sole responsibility of his parents, or guardians who employ
members of his family, subject to the following conditions:
a. employment does not endanger the child’s safety, health and morals
b. employment does not impair the child’s normal development
c. employer-parent or legal guardian provides the child with the primary and/or secondary
education prescribed by the DEPED

2. The child’s employment or participation in public entertainment or information through cinema,

theater, radio or television is essential provided
 a. employment contract is concluded by the child’s parents or legal guardian,
b. with the express agreement of the child concerned, if possible,
c. and the approval of DOLE, the following must be complied with:
i. the employment does not involve advertisement or commercials promoting
alcoholic beverages, intoxicating drinks, tobacco and its by-products or
exhibiting violence
ii. there is a written contract approved by DOLE
iii. the conditions provided in the first instance are met.

Pertinent provisions of the Child and Youth Welfare Code (PD 603)

Art. 107: Children below 16 years of age may be employed to perform light work which is not harmful to their
safety, health or normal development and which is not prejudicial to their studies.

Art. 108: The employer shall submit to DOLE a report of all children employed by him.

Art. 109: Every employer in any commercial, industrial or agricultural establishment or enterprise shall
keep: 1. A register of all children employed by him, indicating dates of their birth
2. A separate file for the written consent to their employment given by their parents
3. A separate file for their educational and medical certificates
4. A separate file for special work permits issued by the SLE in accordance with existing laws.

Art. 110: if a domestic is under 16 years of age, the head of the family shall give him an opportunity to
complete at least elementary education as required under Art. 71.

Provisions under Revised Penal Code on Child Labor

Art. 272: Exploitation of Child labor
Art. 278: Exploitation of Minors

EMPLOYMENT OF HOUSEHELPERS

Question: What is a domestic or household service?

Answer:

1)services in the employer’s home

2)which is usually necessary or desirable
3)for the maintenance and employment thereof and
4)includes ministering to the personal comfort and convenience of the members of the employer’s
household,
5)including services of family drivers.

Question: What is a househelper?

Answer: A househelper is synonymous to domestic servant
1) any person,
2) whether male or female,
3) who renders services in and about the employer’s home and
4) which services are usually necessary or desirable for the maintenance and enjoyment thereof, and
5) ministers exclusively to the personal comfort and enjoyment of the employer’s family

∙ The children and relatives of a househelper who live under the employer’s roof and who share the
accommodations provided for the househelpers by the employer shall NOT be deemed as househelpers
if they are NOT otherwise engaged as such and are not required to perform any substantial household
work. (Sec 3, Rule XII, Book III, IRR)

Question: What are RIGHTS OF HOUSEHELPERS?

Answer:

1.Original contract of domestic service shall not last for more than 2 years but it may be renewed by
the parties. (Art. 142)

2.Entitled to minimum wage in addition to lodging, food, and medical attendance. (Art. 144)

3.Employment contract should be reviewed every 3 years with the end view of improving the terms
and conditions of employment. (Art. 143)

4.SSS benefits for those who are receiving at least P1,000 (Art. 143)

5.Non-assignment to a work in a commercial, industrial or agricultural enterprise at a wage or salary

rate lower than that provided for agricultural or non-agricultural workers. (Art. 145)

6.Employees under 18 years of age shall be given opportunity for at least elementary education. The
cost of education shall be part of the household’s compensation, unless otherwise stipulated. (Art
 146)

7.Should be treated in a just and humane manner. (Art. 147)

8.Not to be treated with physical violence (Art. 147)

9.Suitable and sanitary living headquarters as well as adequate food and medical attendance. (Art.
148)

10. Termination of employment should be

a. upon expiration of term of employment or
b. based on just cause (Art. 149)

Book Five
LABOR RELATIONS

Q: WHAT IS LABOR RELATIONS?

A: The interaction between an employer and employees and their representatives and the mechanism
by which the standards and other terms and conditions of employment are negotiated, adjusted and
enforced.

Q: WHAT IS LABOR RELATIONS LAW?

A: It is concerned with the stabilization of relations of employer and employees and seeks to forestall and
adjust differences between them by the encouragement of collective bargaining (CB) and the settlement
of labor disputes thru conciliation, mediation and arbitration.

Q: WHAT IS COLLECTIVE BARGAINING?

A: The process of negotiation between an employer and employee’s organization or union to reach
agreement on the terms and conditions of employment for a specified period.

Q: CAN THERE BE COLLECTIVE BARGAINING WITHOUT AN EMPLOER- EMPLOYEE

RELATIONSHIP?

A: If the employer-employee relationship is absent, there would be no basis for collective bargaining
since there is no labor relation to speak of.

Q: WHAT IS ARBITRATION?

A: The submission for determination of disputed matter to private unofficial persons selected in the
manner provided by law or agreement. It may be compulsory (enforced by statutory provision) or
voluntary (agreement).

Q: WHAT IS MEDIATION?

A: It is the act of a third person that interferes between two contending parties with a view to reconcile
them or persuade them to adjust or settle their dispute.

Q: WHAT ARE THE PERTINENT CONSTUTIONAL PROVISIONS ON LABOR RELATIONS?

A: UNDER, Section 3, Article XIII of the 1987 Constitution, it guarantees to all workers:
1. Right to self-organization,
2. Collective bargaining and negotiations,
3. Peaceful and concerted activities
- Including the right to strike in accordance with law and

4. To participate in policy and decision-making processes affecting their rights and benefits as may be
provided for by law.

Q: WHAT ARE THE STATE POLICIES ON LABOR RELATIONS AS PROVIDED UNDER ART. 211 OF
THE LABOR CODE?
A: The state aims to promote the following:
1. Free collective bargaining and negotiations, mediation and conciliation.
2. Free trade unionism
3. Free and voluntary organization of a strong and united labor movement.
4. Enlightenment of workers concerning their rights and obligations as union members and employees.
5. Adequate administrative machinery settlement of labor and industrial disputes.
6. Stable but dynamic and just industrial peace must be ensured.
7. Truly democratic method of regulating the relations of workers and employers should be encouraged.
8. Participation of workers in decision and policy-making processes affecting their rights, duties and
welfare must be ensured.

Q: CAN THE COURT FIX RESORT TO VOLUNTARY ARBITRATION?

A: Except, for compulsory arbitration under art 263 par. G, resort to voluntary arbitration dispute, should
not be fixed by the court but by the parties relying on their strengths and resources.

Q: WHO ARE THE PARTIES TO LABOR RELATION CASES?

A: 1. Employee’s organization
2. Management
3. The Public

Q: WHO IS AN EMPLOYER?

A: It includes any person acting in the interest of an employer, directly or indirectly, does not include any
labor organization or any of its officers or agents except when acting as employer.

Q: WHO IS AN EMPLOYEE?

A: Any person in the employ of a particular employer including an individual whose work has ceased as
a result of or in connection with any current labor dispute or because of any ULP, if he has not obtained
any other substantially equivalent and regular employment.

Q: WHAT IS A BARGAINING UNIT?

A: Group of employees, sharing mutual interests, within a given employer unit, comprised of all or less
than all of the entire body of employees in the employer unit or any specific occupational or geographical
grouping within such employer unit.

Q: WHAT IS A WORKER’S ASSOCIATION?

A: Any association of workers organized for the mutual aid and protection of its members for any
legitimate purpose other than for collective bargaining.

Q: WHO IS AN EXCLUSIVE BARGAINING REPRESENTATIVE?

A: Any legitimate labor organization duly recognized or certified as the sole and exclusive bargaining
agent of all the employees in a bargaining unit.

Q: WHO IS A VOLUNTARY ARBITRATOR?

A: Any person accredited by the Board to act as such pursuant to a selection procedure agreed

upon. Q: CAN THERE BE SEVERAL UNIONS IN ONE BARGAINING UNIT?

A: YES. There may be several unions in a bargaining unit but only one will be chosen as bargaining
agent thru certification election.

Q: CAN THERE BE SEVERAL AGENTS IN ONE UNIT?

A: No.

Q: CAN THERE BE SEVERAL AGENTS IN ONE COMPANY?

A: Yes.

Q: CAN THERE BE SEVERAL CBA’S IN ONE COMPANY?

A: YES. Provided only one CBA per bargaining unit.

Q: ARE ALL LEGITIMATE UNIONS A BARGAINING UNIT?

A: NO. Union may be legitimate but not a bargaining agent.

Q: WHAT IS A LABOR MANAGEMENT COUNCIL?

A: Deals with the employer on matters affecting the employee’s rights, benefits and welfare.

NATIONAL LABOR
RELATIONS COMMISSION

Q: WHAT IS THE EFFECT IF A UNION IS NOT REGISTERED WITH DOLE?

A: It is still a lawful union but without legal personality. It does not acquire certain rights which are
accorded only to registered unions.

Q: WHAT IS A LABOR ORGANIZATION?

A: Any union or association of employees in whole or in part for the purpose of collective bargaining or of
dealing with employers concerning the terms and conditions of employment.

Q: WHAT ARE THE THREE KINDS OF LABOR DISPUTE?

A: IT INCLUDES THE FOLLOWING:

1. Matter or controversy concerning the terms and conditions of employment;

2. Association – e.g. intra union dispute;
3. Representation -- e.g. inter union dispute.

Arts. 213- 216

Q: WHAT IS THE NATURE OF THE NATIONAL LABOR RELATIONS COMMISSION?

A: It is the principal government agency that hears and decides labor-management

disputes. - An independent labor court.
- Has regional arbitration branch
- Acts as a body, either en Banc of 15 commissioners or any of the 5 divisions, each with 3
commissioners.

Q: WHAT ARE THE INSTANCES IN WHICH THE NLRC IS REQUIRED TO SIT EN BANC?

A:
1.Promulgation of rules and regulations governing the hearing and disposition of

cases. 2.Formulation of policies affecting its administration and operations.

3.Allow cases within the jurisdiction of any division to be heard and decided by any other division.

∙ Outside of the 3 instances, the acts of the NLRC are done thru its divisions and the concurrence of 2
commissioners of a division shall be necessary for the pronouncement of a judgment or resolution.

Q: WHAT IF THERE ARE INCONSISTENCIES IN THE FINDINGS OF FACTS OF THE LABOR ARBITER
AS AFFIRMED BY THE NLRC AND THAT OF THE COURT OF APPEALS?

A: The Supreme Court will make a scrutiny of the findings of fact.

Q: WHAT IS THE TRIPARTITE COMPOSITION OF THE NLRC?

A:
1. Workers
2. Employers
3. Public

Q: WHAT IS THE EFFECT OF FAILURE TO RAISE THE LACK OF JURISDICTION OF THE LABOR
TRIBUNAL AT THE EARLIEST OPPORTUNITY?

A: Estoppel will lie.

Art. 217 -JURISDITION OF LABOR ARBITER

Q: WHAT ARE THE INSTANCES IN WHICH THE LABOR ARBITER HAS EXCLUSIVE AND ORIGINAL
JURISDICTION?

A: Labor Arbiters have original and exclusive jurisdiction to hear and decide the following cases
 involving ALL workers:

1. Unfair labor practice

2. Termination disputes
3. Cases filed by workers
a. Involving wages, rates of pay, hours of work and other terms and conditions of
employment
b. Accompanied with a claim for reinstatement
4. Claims
a. For actual, moral, exemplary and other damages
b. Arising from employer-employee relations (even for OFWs’. However, The POEA
continues to have jurisdiction over recruitment or pre-employment cases which are
administrative in nature, involving or arising out of recruitment laws, rules and
regulations, including money claims arising there from or violation of the conditions for
issuance of license to recruit workers).

5. Cases arising from violations of Art. 264 (prohibited activities – strikes and lock-outs)
6. Questions involving legality of strikes and lock-outs
7. All other claims arising from employer-employee relations
a. Including persons in domestic or household service
b. Involving an amount exceeding P5,000
c. Whether or not accompanied with a claim for reinstatement
EXCEPTIONS:
1. Claims for employees’ compensation
2. Social security
3. Medicare
4. Maternity benefits

Q: WHO ARE THE WORKERS COVERED BY THE JURISDICTION OF THE LABOR ARBITER?

A: ALL workers whether agricultural or non-agricultural; GOCCs without an original charter and has
been incorporated under the Corporation Code; religious organization. NO JURISDICTION over
international agencies.

Q: WHAT IS THE EXTENT OF THE JURISDICTION OF THE LABOR ARITER IF THERE ARE
UNRESOLVED MATTERS ARISING FROM THE INTERPRETATION OF THE CBA?

A. Labor Arbiters have no jurisdiction over unresolved or unsettled grievances arising from the
interpretation or implementation of a CBA and those arising from the interpretation or enforcement of
company personnel policies, which fall within the jurisdiction of the voluntary arbitrator/s named in the
CBA, unless the case involves actual dismissal.

XPN: Actual termination dispute can be heard by the labor arbiter although an interpretation of the CBA
provision.

Q: WHO HAS EXCLUSIVE APPELLATE JURISDICTION OVER ALL CASES DECIDED BY LABOR
ARBITERS?

A: National Labor Relations Commission

Q: IS A MOTION FOR RECONSIDERATION REQUIRED BEFORE CERTIORARI MAY BE AVAILED OF?

A: YES. Before certiorari may be availed of, the petitioner must have filed a Motion for Reconsideration,
to enable it to correct its mistakes, within 10 calendar days from receipt of such order or resolution. If no
MR was filed, NLRC’s decision becomes final and executory after 10 days from its receipt and is a fatal
defect that warrants the dismissal of the petition for certiorari before the SC.

EXCEPTION: In the interest of substantial justice, MR on the decision of the NLRC may not be

required. Q: WHAT IS THE EFFECT OF THE DENIAL OF THE MOTION FOR RECONSIDERATION?

A: If the motion is denied, the aggrieved party may file the petition within the remaining period, but
which shall not be less than 5 days in any event, reckoned from the notice of the denial. No extension
of time to file the petition shall be granted except for the most compelling reason and in no case to
exceed 15 days.

Q: DOES THE JURISDICTION OF LABOR ARBITERS HAVE JURISDICTION OVER WAGE DISTORTION
CASES IN ORGANIZED ESTABLISHMENTS?

A: Labor Arbiters have jurisdiction over wage distortion cases only in unorganized establishments. In
organized establishments, jurisdiction is vested with Voluntary Arbitrators.
Arts. 218-219

Q: WHAT ARE THE POWERS OF THE NATIONAL LABOR RELATIONS COMMSSION?

A:
1. Make rules and regulations pertaining to its functions.
2. Administer oaths and issue subpoenas and summons.
3. Decide appealed cases.
4. Hold persons in contempt.
5. Investigate, hear and decide disputes within its jurisdiction.
6. Issue restraining orders and injunctions (exception to Art. 254 which provides that injunction or
restraining order is prohibited in any case growing or involving out of labor disputes. 7. Conduct
ocular inspection at any time during office hours.

Q: WHAT IS THE EXTENT OF JURISDICTION OF NLRC OVER MONEY

CLAIMS? A: Jurisdiction of NLRC over money claims is only appellate.

Q: CAN THE LABOR ARBITER ISSUE WRITS OF INJUNCTION?

A: NO. The labor arbiter does not have the power to issue writs of injunction nor TRO. Art 217 nor the
NLRC rules of procedure does not grant them such authority.

Art. 220

Q: WHAT IS COMPULSORY ARBITRATION?

A: It is a process of settlement of labor disputes by a government agency that has the authority to
investigate and make an award, which is binding on all parties.

Q: ARE THE STRICT RULES OF EVIDENCE OBSERVED IN PROCEEDINGS BEFORE THE NLRC?

A: The general rule states that strict rules of evidence and procedures are NOT binding in any of the
proceedings before the NLRC or Labor Arbiter. All efforts towards amicable settlement shall be exerted.

Exceptions: The cardinal primary requirements of due process must be respected such
as: 1. Violator must be heard and be given the opportunity to present evidence
2. Evidence presented must be duly considered before any decision is made
3. Decision must be based on substantial evidence
4. Decision was made by the authority and should explain the issues involved and the reason for the
decision rendered.
5. Right to a speedy disposition of cases

Q: Can denial of due process by the labor arbiter be cured by appeal to the

NLRC? A: Yes.

Art. 222 (APPEARANCES AND FEES)

Q: WHEN MAY NON-LAWYERS APPEAR BEFORE THE COMMISSION OR ANY LABOR

ARBITER? A: Non-lawyers may appear before the Commission or any Labor Arbiter only:

1. If they represent themselves; or

2. If they represent their organization or members thereof.

Q: WHERE SHALL ATTORNEY’S FEES TAKEN?

A: The attorney’s fees for CBA negotiation and conclusions shall be in the amount agreed upon by the
parties to be taken from the union funds and not from the individual union members.

Q: WHAT IS THE MAXIMUM AMOUNT TO BE GIVEN TO A LAWYER FOR LEGAL ASSISTANCE

RENDERED?

A: The amount must not exceed 10% of the total monetary award adjudged the employees excluding
the award for moral and exemplary damages.

Q: ARE LABOR CASES SUBJECT TO BARANGAY CONCILIATION?

A: NO. Labor cases are NOT subject to Barangay Conciliation under PD 1508

Art. 223
APPEAL

Q: ARE THE DECISIONS, ORDERS OR AWARDS OF THE LABOR ARBITER FINAL AND EXECUTORY?

A: YES. Decisions, orders or awards of the Labor Arbiter are final and executory
UNLESS it has been appealed to the NLRC within 10 days from its receipt.

Q: WHAT ARE THE GROUNDS FOR APPEAL?

A: Grounds for appeal are as follows:

1. Prima facie evidence of abuse of discretion on part of Labor Arbiter or Compulsory Arbitrator
2. Decision, order or award was secured thru fraud or coercion, including graft and corruption.
3. Appeal is purely on questions of law.
4. Serious errors in the finding of facts are raised which would cause great or irreparable damage or
injury to the appellant

Q: IS THE DECISION OF THE LABOR ARBITER REINSTATING A DISMISSED EMPLOYEE PENDING

APPEAL EXECUTORY?

A: YES. The decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as
the reinstatement aspect is concerned, shall immediately be executory EVEN PENDING APPEAL.

Q: WHAT ARE THE TWO OPTIONS OF EMPLOYER IN REINSTATEMENT?

A:
(1) Re-admit employee under same terms and conditions;
(2) Reinstate merely in the payroll

Q: IS THE POSTING OF A CASH OR SURETY BOND REQUIRED FOR THE PERFECTION OF THE
LABOR ARBITER’S MONETARY AWARD?

A: Posting of a cash or surety bond is a SINE QUA NON for the perfection of an appeal from the labor
arbiter’s monetary award UNLESS:

(1) The amount of the monetary award is not included in the judgment;
(2) Monetary award consists of moral and exemplary damages;
(3) Appellant employer is prepared to accept and comply with the monetary awards. HOWEVER,
posting of a bond by the employer shall not stay the execution of reinstatement.

Q: IS THE APPROVAL OF THE LABOR ARBITER BEFORE WHOM A CASE IS PENDING REQUIRED
BEFORE A COMPROMISE AGREEMENT MAYBE ENTERED INTO?

A: Sec. 2 Rule V of the New Rules of the NLRC requires that a compromise agreement of case pending
before the Labor Arbiter be approved by the labor arbiter before whom the case is pending after being
satisfied that it was voluntarily entered by the parties and after having explained to them the terms and
consequences thereof.

Quitclaims executed before the labor arbiters who had no participation in any aspect of the case are not
valid compromises.

Q: WHAT IS THE PERIOD TO DECIDE A CASE FILED BEFORE THE NLRC?

A: The NLRC shall decide all cases within 20 calendar days from receipt of the answer of the appellee.
The same becomes final and executory after 10 calendar days from receipt of the parties.

Q: WHO MAY ISSUE A WRIT OF EXECUTION ON A JUDGMENT?

A. The Secretary or any Regional Director, the NLRC or any Labor Arbiter, or med-arbiter or voluntary
arbitrator may, motu proprio or on motion of any interested parties, issue a WRIT OF EXECUTION on a
judgment within 5 years from the date it becomes final and executory. (Art 224)

Q: CAN REINSTAMENT BE MADE EVEN WITHOUT A MOTION FOR EXECUTION

FILED? A: Reinstatement should be made even without a motion of execution filed.

Q: CAN THE RTC ISSUE INJUNCTION AGAINST THE NLRC?

A: NO. The general rule is that no court has the power to interfere by injunction with judgments of
 another court with concurrent or concurrent jurisdiction. Except, if a third party complaint is involved

BUREAU OF LABOR RELATIONS

Q: BLR and Labor Relations Divisions have original and exclusive authority to act

on? A:

1. inter-union disputes
2. intra-union disputes
3. all disputes, grievances or problems
i. arising from or affecting labor-management relations
ii. in all workplaces whether agricultural or non-agricultural
iii. EXCEPT those arising from implementation/interpretation of CBA (governed by grievance
procedure and/or voluntary arbitration)

Q: WHAT IS INTER-UNION DISPUTE?

A: Inter-Union Dispute refers to any conflict between and among legitimate labor unions involving
representation questions for purposes of collective bargaining or to any other conflict or dispute between
legitimate labor unions

Q: WHAT IS INTRA-UNION DISPUTE?

A: Intra-Union Dispute: refers to any conflict between and among union members, including grievances
arising from any violation of the rights and conditions of membership, violation or disagreement over any
provision of the union’s constitution and by-laws, or disputes arising from chartering or affiliation of union

Q: HOW MANY DAYS MUST BLR ACT ON A LABOR CASE SUBMITTED BEFORE IT?

A: BLR has 15 days to act on a labor case before it, subject to the extension by agreement of the
parties.

Q: WHEN CAN A COMPROMISE SETTLEMENT BETWEEN THE PARTIES BE FINAL AND BINDING?

A:
1. The compromise settlement must be voluntarily agreed upon by the parties
2. It must be reduced in writing and;
3. It must be signed in the presence of the Regional Director or his duly authorized representative
(with the assistance of the BLR or Regional Office)

Q: WHO IS A MED-ARBITER?

A: An officer in the regional office or bureau authorized to hear, conciliate and decide representation
cases or assist in the disposition of intra or inter-union disputes.

Q: CAN THE RIGHT TO REINSTATEMENT BE WAIVED BY A COMPROMISE AGREEMENT ENTERED

INTO BY THE WORKERS AND THEIR EMPLOYER DURING THE PENDENCY OF AN APPEAL BEFORE

THE NLRC IN CONSIDERATION OF THE EMPLOYER’S UNDERTAKING TO ABIDE BY THE MONEY

CLAIMS?

A: YES, a compromise agreement entered into by the workers and their employer, during the
pendency of an appeal before the NLRC, wherein the former waived their right to reinstatement as
decreed by the labor arbiter in consideration of the employer’s undertaking to abide by the award of
their money claims plus attorney’s fees, is valid and binding.

Q: WHAT IS THE EFFECT OF THE FAILURE OF A PARTY TO COMPLY WITH THE TERMS OF THE
COMPROMISE AGREEMENT?

A: Should a party fail or refuse to comply with the terms of the CA, the other party could be either
enforce the compromise by a writ of execution or regard it as rescinded and insist upon his original
demand (Morales vs. NLRC, GR No. 1003133, Feb 6, 1995).

Q: IS A JUDGMENT MADE IN ACCORDENACE WITH A COMPROMISE AGREEMENT APPEALABLE?

A: A judgment made in accordance with a compromise agreement is NOT appealable and is immediately
executory.

EXCEPTIONS:

1) When a motion is filed to set aside the agreement

 2) On the ground of fraud, mistake or duress,
3) In which case an appeal may be taken against the order denying the motion.

Q: WHAT ARE THE INSTANCES IN WHICH THE NLRC OR ANY COURT SHALL NOT ASSUME
JURISDICTION OVER ISSUES INVOLVED IN COMPROMISE SETTLEMENT CASES?

A:
1. Non-compliance of the compromise agreement
2. Prime facie evidence that the settlement was obtained thru fraud, misrepresentation or

coercion. Q: CAN THE BLR ISSUE SUBPOENAS?

A: The Bureau has the power to issue subpoenas under its jurisdiction either at the request of any
interested party or at its own initiative. (Art 229)

Q: WHAT ARE THE DUTIES OF THE BLR?

A:

1. It shall keep a registry of legitimate labor organizations.

2. It shall also maintain a file of all collective bargaining agreements and other related agreements
and records of settlement of labor disputes, and copies of orders, and decisions of arbiters. (Art
231)

Q: CAN THE BLR ENTERTAIN ANY PETITION FOR CERTIFICATION ELECTION OR ANY OTHER
ACTION, WHICH MAY DISTURB THE ADMINISTRATION OF AN EXISTING CBA AFFECTING THE
PARTIES

A: NO. The general rule is that BLR shall NOT entertain any petition for certification election or any other
action, which may disturb the administration of existing CBA affecting the parties (Art 232). THE
EXCEPTIONS ARE THOSE PROVIDED UNDER:

1. Art. 253
2. Art. 253-A
3. Art. 256

Q: WHAT IS A CONTRACT BAR RULE?

A: It provides that where there is an existing CBA, no petition for certification election should be
entertained. To allow otherwise would result in the promotion of discord and disturbance in the
administration of the agreement.

Q: CAN THE INFORMATIONS AND STATEMENTS OBTAINED DURING THE CONCILIATION

PROCEEDINGS BE USED AS EVIDENCE?

A: NO. Information and statements made at conciliation proceedings shall be treated as privileged
communication and shall not be used as evidence. Conciliators and other officials shall not testify

regarding any matters taken up therein. The reason behind the rule is to encourage the parties to freely
divulge information to the conciliator/mediator.

LABOR ORGANIZATION

Q: WHAT IS A LABOR ORGAINZATION (LO)?

A: It refers to any union or association of employees in the private sector, which exist in whole or in part
for the purpose of collective bargaining, mutual aid, interest, cooperation, protector other lawful purposes.

Q: WHAT IS A LEGITIMATE LABOR ORGANIZATION (LLO)?

A: Refers to any labor organization in the private sector registered with the DOLE.

Q: WHAT IS A WORKER’S ASSOCIATION?

A: It refers to any association of workers organized for mutual aid and protection of its members or for any
legitimate purpose OTHER than collective bargaining.

Art. 234 –

Q: WHAT ARE THE REQUIREMENTS TO BE REGISTERED AS A LABOR ORGANIZATION?

A:
1. Fifty pesos registration fee
 2. Four copies of the:
a. Constitution and by-laws
b. Minutes of its adoption or ratification
c. List of participating members
3. Applicant union, if existing for more than 1 year, must submit copies of its annual financial report
4. Names of its officers, their addresses, principal address of the labor organization, minutes of the
organizational meeting & list of the workers who participated in such meetings
5. Names of all its members (comprise at least 20% of all employees in the bargaining unit where it
seeks to operate)

Q: WHAT IS THE EFFECT OF REGISTRATION?

A: LO acquires legal personality as well as the rights and privileges granted to it by law. Unregistered
association is still lawful but without juridical capacity, therefore, cannot avail the rights enumerated by
Art. 242.

Q: WHEN IS AN LO DEEMED REGISTERED?

A: An LO is deemed registered and vested with legal personality on the date of issuance of its
certificate of registration or certificate of chartered local. Such legal personality may be questioned only
through an independent petition for cancellation of union registration

Q: WHAT IS THE REMEDY TO COMPEL REGISTRATION?

A: MANDAMUS

DOCUMENTS AND PAPERS TO BE VALID FOR REGISTRATION?

A: All requisite documents and papers:

1. Shall be certified under oath by the Secretary or the Treasurer of the organization
and 2. Attested to by its President. (Art 235)

Q: WHAT IS THE EFFECT OF THE DISCOVERY OF LACKING ON THE ISSUANCE OF CERTIFICATION

ELECTION?

A: Where NO books of account were filed before the BLR, the constitution, by-laws and the list of
members who ratified the same were not attested to by the union president, and the same were not
verified, it was ruled that the local or chapter did not become a LLO and its petition for certification
election should be dismissed (Phoenix Iron vs. Secretary of Labor GR No. 112141, May 16, 1995).

Q: WHAT IS THE PERIOD IN WHICH THE BLR IS REQUIRED TO ACT ON APPLICATIONS FOR
REGISTRATION?

A: The BLR shall act on all applications for registration within 30 days from filing.

Q: WHAT IS THE EFFECT OF THE GRANTING OR DENIAL OF THE APPLICATION FOR

REGISTRATION?

A: If application is granted, a certificate of registration shall be issued. If it is denied, the decision is

appealable to the Secretary within 10 days from receipt of notice, based on grave abuse of discretion or
gross incompetence.

Q: WHAT IS A LABOR FEDERASTION OR A NATIOANAL UNION?

A: It is a grouping of local unions from different plants, factories or companies.

Q: WHAT IS A LOCAL UNION OR A CHAPTER?

A: A labor organization operating at the enterprise level whose legal personality is derived thru the
issuance of a charter by a duly registered federation or national union.

Q: WHAT ARE THE ADDITIONAL REQUIREMENTS FOR REGISTRATION IF A LABOR ORGANIZATION

IS A FEDERATION OR A NATIONAL UNION?

A: There must be a proof of affiliation of at least 10 locals or chapters. Each of which must be a duly
recognized collective bargaining agent in the establishment/industry. It must also include

1. Names and addresses of companies where locals/chapters operate and

2. List of all members in each company involved

Q: WHAT ARE THE GROUNDS FOR CANCELLATION OF UNION

REGISTRATION? A: The following are the grounds for cancellation of union

registration:

1. Misrepresentation, false statement or fraud in connection with

a. Adoption or ratification of the constitution or by-laws or amendments thereto
b. Minutes of ratification
c. List of members who took part in ratification of constitution and by-laws or amendments
thereto
d. Election of officers
e. List of voters
f. Financial report
2. Failure to submit
a. Required documents within 30 days from adoption/ratification of constitution/by-laws b.
Required documents together with list of newly elected-appointed officers and their postal
addresses within 30 days from election
c. Annual financial report within 30 days after the closing of every fiscal year
d. List of individual members once a year or whenever required
3. Acting as labor contractor or engaging in “cabo” system or otherwise engaging in any activity
prohibited by law
4. Entering into CBA with terms and conditions BELOW minimum labor standards
5. Asking for or accepting attorney’s fees or negotiation fees from employers
6. Checking off special assessments or any other fees WITHOUT duly signed individual written
authorizations of members
7. Failure to comply with any of the requirements

Q: WILL THE EXISTENCE OF A UNION BE AFFECTED BY A SUSPENSION OF ITS JURIDICAL

PERSONALITY, STATUTORY RIGHTS AND PRIVILEGES?

A: NO. The existence of the union would not be affected although its juridical personality, statutory rights
& privileges are suspended.

Q: WHAT IS A CHECK-OFF?

A: A process whereby the employer, on agreement with the union recognized as the proper bargaining
representative, or on prior authorization from its employees, deducts union dues or agency fees from the
latter’s wages and remits them directly to the union. The legal basis of it is thus found in contract. No
provision of law makes the employer directly liable for the payment to the labor organization of union dues
and assessments that the former fails to deduct from its employees’ salaries pursuant to a check-off
stipulation (Holy Cross of Davao vs. Joaquin GR No. 110007, Oct 8, 1996).

Q: WITHIN HOW MANY DAYS CAN YOU APPEAL A CANCELLATION OF REGISTRATION?

A: Cancellation of Registration is APPEALABLE within 10 days.

Q: TO WHOM MAY CANCELLATION OF REGISTRATION BE APPEALED?

A: To BLR or in case of cancellation by the BLR, to the Secretary,

Q: WHAT ARE THE GROUNDS FOR APPEAL?

A:

1. Grave abuse of discretion or

2. Any violation of implementing rules.

Q: WHO MAY COMMENCE A PETITION FOR CANCELLATION OF

REGISTRATION? A: Any party-in-interest may commence a petition for cancellation of

registration.

EXCEPTION: Violations of Art. 241 (rights and conditions of membership) which can be commenced
only by members of the respondent labor organization or worker’s association.

Q: WHAT IS A COMPROMISE AGREEMENT?

A: A contract whereby the parties by making reciprocal concessions, avoid litigation or put an end one
already commenced.

RIGHTS and CONDITIONS

OF MEMBERSHIP
Art. 241 -THE RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR

ORGANIZATION Q: IS THE MEMBERSHIP IN A PARTICULAR UNION AN ABSOLUTE

RIGHT?

A: NO. A union is free to select its own members and no person has an absolute right to membership in
a trade union.

EXCEPTION: the right of an industrial worker to protection against arbitrary and discriminatory
exclusion from union membership should be recognized wherever membership is a necessary
prerequisite to work since the public interest is involved.

Q: WHAT ARE THE POLITICAL RIGHTS OF A LABOR ORGANIZATION?

A:

1. Right against admission of subversives

2. Right against the appointment/election of a person convicted of a crime involving moral turpitude
3. Directly elect union officers by secret ballot at intervals of 5 years

Q: WHAT IS DELIBERATIVE AND DECISION-MAKING RIGHT OF A LABOR ORGANIZATION?

A: It is the right to determine by secret ballot any question of major policy affecting the entire
membership UNLESS the nature of the organization or force majeure renders secret ballot impractical

Q: WHAT ARE THE RIGHTS OF A MEMBER OF A LO ON MATTERS INVOLVING

FINANCES? A:

1. Right against arbitrary or excessive initiation fees, fines and forfeitures

2. Entitled to full and detailed reports of all financial transactions
3. Right against unauthorized collection of fees, dues or other contributions and illegal
disbursement of union funds
4. Right to demand a receipt for every payment of fees, dues or other contributions 5. Union funds
shall only be applied for purposes expressly provided in Constitution/by-laws or by written resolution
6. Every income or revenue should be evidenced by a record showing source
7. Every expenditure should be evidenced by a receipt
8. Officers shall NOT be paid any compensation other than salaries/expenses due to their positions
9. Treasurer shall render a true and correct account of all moneys received and paid by him since
he assumed office
a. At least once a year within 30 days after close of fiscal year
b. At such other times required by resolution of members

c. Upon vacating his office

10. Access to books of account and other financial records
11. Right against special assessments or other extraordinary fees UNLESS authorized by a written
resolution of majority of members in a general membership meeting called for such purpose 12.
Checking off of special assessments, negotiation fees or any other extraordinary fees REQUIRES
an individual written authorization duly signed by the employee EXCEPT for special assessments
for MANDATORY union activities

Q: WHAT DOES THE RIGHT TO INFORMATION INCLUDE?

A: It includes the right to be informed of the provisions of the Consti, by-laws, CBA, prevailing labor
relations system and all their rights and obligations

Q: IS THE EXHAUSTION OF REMEDIES WITIHN THE UNION REQUIRED BEFORE A COMPLAINT FOR
VIOLATION OF THE UNION’S CONSTITUTION AND BY-LAWS MAY BE FILED?

A: YES. Exhaustion of remedies within the union is required before a complaint for violation of the
union’s constitution and by-laws or Art. 241 may be filed. EXCEPT, where it would practically amount to
a denial of justice or would be illusory or in vain

Art. 242
Q: WHAT ARE THE RIGHTS OF A LEGITIMATE LABOR ORGANIZATION?

A:

1. Act as representative of members for purposes of collective bargaining

2. Be certified as exclusive representative of all employees in an appropriate collective bargaining
unit for purposes of collective bargaining (most important right)
 3. Be furnished by the employer of annual audited financial statements
4. Own real or personal properties for the use and benefit of LO and members
5. Sue and be sued in its registered name
6. Undertake all other activities designed to benefit organization and members

RIGHT TO SELF-ORGANIZATION

Q: WHAT ARE THE ELEMENTS OF THE RIGHT TO SELF- ORGANIZATION?

A:
1. Freedom to decide
2. Authority to act or not to act pursuant to one’s decision

Q: WHAT IS THE RIGHT TO SELF-ORGANIZATION?

A:

1. It is the right to join, form or assist labor organizations

a. For the purpose of collective bargaining
b. Thru representatives of the bargaining unit’s own choosing.
2. A right:
a. To engage in lawful concerted activities
b. For collective bargaining or
c. For mutual aid & protection subject to Art 264.

Q: IS THERE A LAW REQUIRING WORKERS TO JOIN A UNION?

A: NONE. There is no law in the Philippines requiring workers to join a union although there may be
disqualifications in joining unions.

Q: WHO ARE THE EMPLOYEES ALLOWED TO JOIN A UNION FOR PURPOSES OF COLLECTIVE
BARGAINING?

A: Persons employed in
1. Commercial,
2. Industrial, or
3. Agricultural enterprises
4. In religious
5. Medical WON

6. Educational for profit

7. Charitable institutions
8. Alien employees with valid working permits
PROVIDED: nationals of a country which grants same/similar rights to Filipino workers

Q: CAN GOVERNMENT EMPLOYEES STAGE A STRIKE?

A: NO. Government employees may organize, even unionize but CANNOT bargain and stage a strike,
and negotiate only on matters NOT fixed by law.

Q: WHAT IS THE REMEDY OF GOVERNMENT EMPLOYEES?

A: The government employees may lobby that the law fixing their benefits and salaries be amended.

Q: WHAT ARE THE DISTINCTIONS BETWEEN GOCCs WITH ORIGINAL CHARTER AND GOCCs
INCORPORATED UNDER THE CORPORATION CODE?

A:
1. GOCCs w/ orig. charter is governed by the civil service law while GOCCs incorporated under the
corporation code is governed by the Labor code.
2.Those with original charter cannot wage a strike but GOCCs w/o original charter cannot do
so. 3. GOCCs w/ orig. charter: can negotiate only in matter no fixed by law
GOCCs w/o orig. charter: Has unlimited bargaining powers
4.GOCCs w/ orig. charter: May join, form or assist labor organizations for purposes not contrary to
law
GOCCs w/o orig. charter: May join, form or assist labor organization for purposes of collective
bargaining and for mutual aid and protection

Q: WHO ARE THOSE EXCLUDED TO FORM LABOR ORGANIZATIONS?

A:
 1. High Level Government Employees
a. Policy-making
b. Managerial
c. With highly confidential duties
2. Employees of International Organizations who are granted diplomatic immunity
3. Employees of cooperatives who are members of the cooperative itself
4. Confidential employees
5. Excluded from union AND rank-and-file bargaining unit

1. Members of the Armed Forces and police

2. Managerial Employees

3. Supervisory Employees – to the extent that they cannot join labor organization of rank-and-file
employees

Confidential Employees
1. Assist or act in a confidential capacity

2. Persons who formulate, determine and effectuate management policies in the field of labor
relations
Reason: Conflict of interest

Q: ARE ALL CONFIDENTIAL EMPLOYEES EXCLUDED FROM JOINING A UNION?

A: Not all confidential employees are excluded, only those whose positions involve policies regarding
labor relations.

Q: WHAT ARE UNION SECURITY CLAUSES?

A: They are stipulations in a CBA requiring membership in the contracting union as a condition for
employment or retention of employment in the company. It is likewise intended to strengthen the
contracting union and protect it from fickleness of own members

Q: WHAT IS A CLOSED SHOP AGREEMENT?

A: It is an agreement in which the employer undertakes NOT to employ an individual who is not a
member of the contracting union (bargaining agent) and to dismiss the said individual if once employed,
he does not, for the duration of the agreement, remain a member of the union in good standing

Q: ARE ALL EMPLOYEES IN THE BARGAINING UNIT COVERED BY A CLOSED-SHOP AGREEMENT

SUBJECT TO ITS TERMS?

A: YES. The general rule is that all employees in the bargaining unit covered by a closed-shop
agreement are subject to its terms.

Exceptions:
1. Religious objectors
2. Employees already in the service and members of a different union at time closed-shop
agreement took effect
3. Those expressly excluded

Q: WHAT IS A UNION SHOP AGREEMENT?

A: It is an agreement where the employer is permitted to employ an individual who is not a member of
the contracting union (bargaining agent) but is obliged to dismiss such employee if he does not become
a member of the contracting union within a specified period and remain as such in good standing for the
duration of the agreement

Q: WHAT IS MAINTENANCE OF MEMBERSHIP CLAUSE?

A: A maintenance membership clause merely requires the employer to dismiss those who are union
members at time of execution of CBA or who may thereafter become members IF they do not, for the
duration of the CBA, maintain their membership IN GOOD STANDING

Q: WHAT IS THE RULE IN CONSTRUCTION OF UNION SECURITY

CLAUSES? A: Any doubt should always be resolved in favor of the worker

Q: WHAT ARE THE ACTS CONSTITUTING UNFAIR LABOR PRACTICES

(ULP)? A: ULP includes any act which:

1) Violates the constitutional right of workers to self-organization.

2) Hinders the promotion of healthy and stable labor management relations.
3) Inimical to the legitimate interest of both labor & management, including the following:
3.1 Right to bargain collectively; or
3.2 Deal with each other in an atmosphere of freedom & mutual respect.

4) Disrupts industrial peace

Q: IS ULP LIMITED TO VIOLATION OF CIVIL RIGHTS OF LABOR AND MANAGEMENT?

A: NO. It is not only a violation of the civil rights of labor and management but also a criminal offense
against the State.

Q: WHO SHALL HAVE JURISDICTION OVER THE CIVIL ASPECT OF ULP CASES AND WITHIN WHAT
PERIOD MUST IT BE RESOLVED?

A: Civil aspect of ULP cases shall be under the jurisdiction of the Labor Arbiters who must resolve said
cases within 30 days from the time it is submitted.

Q: WHAT IS THE EFFECT OF RECOVERY OF CIVIL LIABILITY UNDER THE ADMINISTRATIVE

PROCEEDINGS?

A: Recovery of civil liability under the administrative proceedings shall bar recovery under the Civil
Code.

Q: CAN CRIMINAL PROSECUTION BE INSTITUTED WITHOUT A FINAL JUDGMENT THAT ULP HAS
BEEN COMMITTED IN AN ADMINSTRATIVE PROCEEDING?

A: No criminal prosecution may be instituted without a final judgment that ULP has been committed in
the administrative proceeding.

Q: WILL THE RUNNING OF THE PERIOD OF PRESCRIPTION BE INTERRUPTED DURING THE

PENDENCY OF AN ADMINSTRATIVE PROCEEDING?

A: YES. During the pendency of the administrative proceeding, the running of the period of prescription
for the criminal offense shall be INTERRUPTED.
Provided:
1) The final judgment in the administrative proceeding shall NOT be binding in the criminal
case, or

2) Final judgment NOT considered as evidence of guilt but merely a proof of compliance of the
requirements therein set forth.

Q: WHAT IS A YELLOW DOG CONTRACT?

A: Yellow Dog Contract is a promise exacted from workers as a condition of employment that they are not
to belong to, or attempt to foster, a union during their period of employment

Q: WHAT IS FEATHERBEDDING?

A: It is a practice of the union or its agents in causing or attempting to cause an employer to pay or
deliver or agree to pay or deliver money or other things of value, for services which are not performed
or to be performed

Q: WHAT IS TOTALITY OF CONDUCT DOCTRINE?

A: It states that the culpability of an employer regarding unionization is to be evaluated not only on the
basis of their implications, but against the background of collateral circumstances.

Q: UNDER WHAT INSTANCE MAY EXPRESSIONS OF OPINION MADE BY AN EMPLOYER

CONSTITUTE UNFAIR LABOR PRACTICE?

A: Expressions of opinion by an employer, though innocent in themselves, may be held to be

constitutive of unfair labor practice because of the circumstances under which they were uttered, the
history of the particular employer’s labor relations or anti-union bias or because of their connection with
an established collateral plan of coercion or interference. An expression, which might be permissibly
uttered by one employer, might, in the mouth of a more hostile employer, be deemed improper and
 consequently actionable as an unfair labor practice.

Q: WHAT IS A SWEETHEART CONTRACT?

A: Asking for or accepting negotiations or attorney’s fees from employers as part of the settlement of
any issue in CB or other dispute

Q: WHAT IS BLUE-SKY BARGAINING?

A: Blue-sky bargaining means making exaggerated or unreasonable proposals. Q:

WHO ARE THE PARTIES WHO MAY COMMIT ULP?

A:
(1) Employer (Article 248);
(2) Labor Organization (Article 249)

Q: WHAT ARE THE ELEMENTS OF ULP MADE BY EMPLOYER?

A: The following must be present:

1. Employer-employee relationship
2. Act done is as defined in Art. 248

Q: CAN ULP BE COMMITTED IF THERE IS NO EMPLOYER-EMPLOYEE RELATIONSHIP? A: The

general rule is that ULP can be committed only if there is an employer-employee relationship. Except:

Yellow Dog Contract

Q: CAN ULP BE COMMITTED AGAINST A MANAGERIAL EMPLOYEE?

A: NO. ULP cannot be committed against a managerial employee because of their disqualification to
form a union.

Q: IS REFUSAL TO FURNISH FINANCIAL INFORMATION ULP?

A: YES. Refusal to furnish financial information is ULP. Except, if the union failed to put its request in
writing as required in Article 242 [c] of the Labor Code, management cannot be held liable for ULP.

Q: WITHIN WHAT PERIOD MUST AN ACTION BAESD ON ULP BE FILED?

A: The action must be filed within 1 yr. from accrual of such ULP.

Q: WHO HAS THE BURDEN OF PROOF IN ULP CASES?

A: In unfair labor practice cases, it is the union that has the burden of proof to present substantial
evidence to support its allegations of unfair labor practices committed by the employer. (Schering
Employees Labor Union [SELU] vs. Schering Plough Corporation, G. R. No. 142506, Feb. 17, 2005)

Arts. 250-253-A (COLLECTIVE BARGAINING)

Q: WHAT IS COLLECTIVE BARGAINING?

A: Collective Bargaining is a negotiation by an organization or group of workmen, in behalf of its

members, with the employer, concerning wages, hours of work and other terms and conditions of
employment and the settlement of disputes by negotiation between the employer and the representative
of his employees.

Q: WHAT IS A COLLECTIVE BARGAINING AGREEMENT? (CBA)

A: It refers to the contract between a legitimate labor union and the employer concerning wages, hours
of work, and all other terms and conditions of employment in a bargaining unit.

Q: WHAT ARE THE PROCEDURES TO BE OBSERVED IN COLLECTIVE BARGAINING?

A:

1. Party who desires to negotiate: serves a written notice upon other party with a statement of
proposals
2. Other party makes a reply not later than 10 days from receipt of notice
3. Differences arise based on notice or reply: either party may request a conference which begins
 10 days from date of request
4. Dispute not settled:
a. Board intervenes upon request of either/both parties or NCMB’s own initiative, call
parties to conciliation.
b. Board has power to issue subpoenas.
c. Duty of the parties: to participate fully and promptly in the conciliation meetings 5. During
conciliation: parties are prohibited from doing any act which may disrupt or impede settlement of
disputes
6. NCMB shall exert efforts to settle dispute amicably and encourage parties to submit case to a
voluntary arbitrator

Q: WHAT COMPRISES THE DUTY TO BARGAIN COLLECTIVELY?

A: The performance of a mutual obligation:

1) To meet and convene promptly and expeditiously in GF
2) For purpose of negotiating an agreement
3) With respect to wages, hours of work and all other terms and conditions of employment 4)
Including proposals for adjusting any grievances or questions arising under such agreement Q: WHAT
ARE THE LIMITATIONS ON THE DUTY TO BARGAIN COLLECTIVELY?

A: Duty to bargain collectively does NOT compel any party to:

(1) Agree to a proposal; or
(2) Make a concession
(3) Parties CANNOT stipulate terms and conditions of employment that are BELOW the
minimum requirements prescribed by law

Q: WHAT ARE THE SPHERES OF COLLECTIVE BARGAINING?

A:
1) Wages

2) Hours of work
3) Grievance machinery
4) Voluntary arbitration
5) Family planning
6) Rates of pay
7) Mutual observance clause

Q: WHAT IS THE EFFECT OF REFUSAL OF ANY PARTIES TO NEGOTIATE ON ANY OF THE

AFORESAID SUBJECTS?

A: Refusal of any parties to negotiate on any of the aforesaid subjects constitute ULP. Q:

WHAT ARE ACTS NOT DEEMED REFUSAL TO BARGAIN?

A:
1. Adoption of an adamant bargaining position in G
2. Refusal to bargain over demands for commission of ULP
3. Refusal to bargain during period of illegal strike
4. There is no request for bargaining
5. Union seeks recognition for an inappropriately large unit
6. Union seeks to represent some persons who are excluded from the Code

Q: IS MINUMUM WAGE INCLUDED IN THE SPHERE OF COLLECTIVE BARGAINING? A:

NO. It is beyond the sphere of collective bargaining because law requires their enactment. Q:

WHAT IS THE NATURE OF A CBA CONTRACT?

A: CBA is a contract in personam: binding only between the parties and not enforceable against a
transferee of an enterprise UNLESS expressly assumed.

Q: WHAT ARE THE JURISDICTIONAL PRECPNDITIONS OF A CBA?

A: The Jurisdictional Preconditions are as follows:

1. Possession of the status of majority representation of the employees’ representative in

accordance with any of the means of selection/designation
2. Proof of majority representation
3. Demand to bargain

Q: IF ALL JURISDICTIONAL PRECONDITIONS ARE PRESENT WHEN SHOULD COLLECTIVE

BARGAINING BEGIN?
 A: Collective bargaining shall begin within 12 months following the determination and certification of the
employees’ exclusive bargaining representative. (CERTIFICATION YEAR)

Q: WHAT DOES THE DUTY TO BARGAIN COLLECTIVELY INCLUDE WHERE THERE EXISTS A

CBA? A: The Duty to Bargain Collectively When There Exists a CBA:

1) Neither party shall terminate nor modify such agreement during its lifetime;
2) Either party can serve written notice to terminate or modify agreement at least 60 days prior to its
expiration date;
3) Duty of both parties to keep status quo and continue in full force and effects terms and conditions
of the existing agreement during the 60 day period or until new agreement is reached by
parties.

EXCEPTION: during the 60 day period prior to its expiration, upon service of a written notice of a
party’s intention to terminate or modify the same, a party may choose to terminate or modify the non
representational aspect of the CBA only after the expiration of the CBA of fixed duration

Q: WHAT IS AN AUTOMATIC RENEWAL CLAUSE?

A: It provides that the CBA shall remain effective and enforceable even after the expiration of the period
fixed by the parties as long as they reach no new agreement

Q: WHAT MAY BE DONE DURING THE 60-DAY PERIOD PRIOR TO THE EXPIRATION OF THE CBA?

A:
1) A LU may disaffiliate from the mother union to form a local/independent union only during the 60-
day freedom period immediately preceding the expiration of the CBA

2) Either party can serve a written notice to terminate or modify the agreement at least 60 days prior
to its expiration period

3) A petition for certification election may be filed

Q: WHAT ARE THE USUAL PROVISIONS IN A CBA?

A:

1. Scope of Bargaining Unit

2. Union Security Clause – intended to maintain strength of the contracting union during the life of
the agreement and safeguard it against the fickleness of its members and incursions by the
employers.
3. Check-off Provision
4. Management Prerogative Clause
5. Economic Benefits
6. Provision on Administration of Agreement – Art. 260 of the Labor Code requires the parties to
include in their agreement provisions to ensure mutual observance of the terms and conditions
agreed upon and to establish machinery for the adjustment of grievances.
7. Voluntary Arbitration Clause – also to designate in advance an arbitrator or panel of arbitrators
8. No-Strike, No-Lock-out Clause
9. Completeness of Agreement – stipulation that the CBA shall be the full settlement of all demands
and proposals made during the negotiations.
10. Provisions on Family Planning, Participation in Sports, etc. – participation in programs pertaining
to such,
11. Duration of Agreement
Q: WHAT IS TERM OR DURATION OF A CBA?

A:

1) Any CBA that the parties may enter into shall, insofar as representation aspect is concerned: 5
years
2) Outside 60-day period immediately before the date of expiry of the 5-year term of the CBA: NO
petition questioning incumbent BA be entertained; NO certification election shall be conducted 3) All
other provisions shall be renegotiated not later than 3 years after execution 4) Agreement on other
provisions of the CBA entered into within 6 months from date of expiry of such provisions as fixed in
the CBA: automatic retroaction
5) If beyond 6 months, parties shall agree on the duration of retroactivity period
6) If there’s deadlock in the renegotiation of CBA, parties may exercise their rights under the Code

Q: WHAT IS THE EFFECT OF SHIFT OF UNION ALLEGIANCE OF EMPLOYEES AFTER THE

EXECUTION OF CBA?
A: The shift will not result in the cancellation of the contract.

164. Q: WHAT ARE THE PURPOSES OF 253-A?

A: Purposes of Art. 253-A?

1) Promote industrial stability and predictability

2) Assign specific timetables wherein negotiations become a matter of right and requirement

Q: WHAT ARE THE VIOLATIONS OF THE DUTY TO BARGAIN CONSIDERED AS ULP? A:

1. Failure/refusal to meet or convene

2. Evading the purposes of bargaining
3. Not observing good faith bargaining (Surface Bargaining)
4. Grossly violating the economic provisions of the CBA

Kinds of bargaining under the implementing rules:

Q: WHAT IS A SINGLE ENTERPRISE BARGAINING?

A: It involves negotiation between one certified labor union and one employer. Any voluntarily
recognized or certified labor union may demand negotiations with its employer for terms and conditions
of work covering employees in the bargaining unit concerned.

Q: WHAT IS A MULTI-EMPLOYER BARGAINING SCHEME?

A: It involves negotiation between and among several certified labor unions and employers. (Sections
3 and 5, Rule XVI, Book V, Rules to Implement the Labor Code, as amended by Department Order
No. 40-03, Series of 2003, Feb. 17, 2003)

Q: WHAT IS SURFACE BARGAINING?

A: It is the act of going through the motions of negotiating without any legal intent to reach an
agreement

Q: WHEN DOES BULWARISM OCCUR?

A: It occurs when the employer directly bargains with the employee disregarding the union; the aim was
to deal with the LU through the employees rather than with the employees through the union. Employer
submits its proposals and adopts a take it or leave it stand. This is not negotiation because it implies a
threat.

Q: WHEN DOES DEADLOCK OCCUR?

A: When there is an impasse that presupposes reasonable effort at GF bargaining, which, despite
noble intentions, does not conclude in agreement between the parties

Q: WHAT ARE THE MANDATORY REQUISITES FOR THE VALIDITY OF THE CBA?

A: Publication- CBA is required to be posted in two (2) conspicuous places in the work premises, for a
period of at least five (5) days prior to its ratification.
In the case of multi-employer bargaining, two (2) signed copies of the CBA should be posted for at least
five (5) days in two (2) conspicuous areas in each workplace of the employer units concerned. Said
CBA shall affect only those employees in the bargaining units who have ratified it. (Section 7, Rule XVI,
Book V, Rules to Implement the Labor Code, as amended by Department Order No. 40-03, Series of
2003, [Feb. 17, 2003]).

B. Ratification of the CBA- should be made not by the majority of the members of the bargaining
union but by the majority of the members of the bargaining unit which is being represented by the
bargaining union in the negotiations.

C. Registration with the DOLE should carry a sworn statement of the union secretary and attested by
the president that the CBA has been duly posted and ratified. (Section 7, Rule XVI, Book V, Rules to
Implement the Labor Code, as amended by Department Order No. 40-03, Series of 2003, [Feb. 17,
2003]).

Q: WHO SHALL RATIFY A CBA?

A: The CBA should be ratified by the MAJORITY of all the workers of the bargaining unit and not just
members of the contracting union

Q: IS POSTING OF THE CBA REQUIRED?

 A: Yes. CBA should be posted for at least 5 days in 2 conspicuous places in the establishment before
ratification

Q: IS SWORN STATEMENT REQUIRED IN THE CBA TO BE SUBMITTED?

A: CBA to be submitted to the DOLE should carry a sworn statement of the union secretary and
attested by the president that the CBA has been duly posted and ratified.

Q: WHAT IS THE EFFECT OF NON-COMPLIANCE WITH THE

REQUIREMENTS? A: Non-compliance renders the CBA ineffective.

No Injunction Rule (Art. 254)

Q: CAN TEMP. OR PERMANENT INJUNCTION OR RESTRAINING ORDER BE ISSUED IN ANY CASE

INVOLVING THE GROWING OUT OF LABOR DISPUTES?

A: The general rule provides that no temporary or permanent injunction or restraining order in any
case involving or growing out of labor disputes shall be issued by any court or other entity.

EXCEPTIONS:

1. Art. 218(e)
2. Art. 263(g): “national interest” cases
3. Art. 264: prohibited activities in the course of a strike or lock-out

Q: WHAT IS THE REASON BEHIND THE PROHIBITION ON INJUNCTION?

A: To give labor a comparable bargaining power with capital and must be liberally construed to that
end; contradicts the constitutional preference for voluntary modes of dispute settlement

Q: WHO ARE THE PERSONS/ENTITIES AUTHORIZED TO ISSUE INJUNCTION?

A:
1. Labor Arbiters
2. NLRC or any division
3. Bureau of Labor Relations
4. Secretary of Labor
5. President

REPRESENTATION AND
CERTIFICATION ELECTIONS

Q: WHAT IS A SOLE AND EXCLUSIVE BARGAINING AGENT?

A: A “Sole and exclusive bargaining agent” refers to any legitimate labor organization duly recognized or
certified as the sole and exclusive bargaining agent of all the employees in a bargaining unit.

Art. 255

Q: WHO IS THE EXCLUSIVE REPRESENTATIVE OF EMPLOYEES FOR COLLECTIVE BARGAINING?

A: The Labor organization designated/selected by the majority of the employees in an appropriate

collective BU is the exclusive representative of the employees in such unit for the purpose of
collective bargaining

Labor Management Councils

Q: WHAT IS THE RATIONALE FOR THE CREATION OF A LABOR MANAGEMENT COUNCLI?

A: DOLE shall promote the formation of a labor-management council in organized and unorganized
establishments to enable the workers to participate in policy and decision-making processes in the
establishment, insofar as said processes will directly affect their rights, benefits and welfare

Q: WHAT IS THE PROCESS OF SELECTION OF SELECTION OF REPRESENTATIVES?

A:
1) Organized establishments: workers representatives to the council shall be nominated by the
exclusive bargaining representative
 2) Unorganized establishments: worker’s representatives shall be elected directly by the employees
at large

Q: WHAT IS AN APPROPRIATE BARGAINING UNIT?

A: An Appropriate Bargaining Unit:

1. A group of employees
2. Of a given employer,
3. Comprised of all or less than all of the entire body of employees,
4. Which the collective interest of all the employees consistent with equity to the employer, 5.
Indicate to be best suited to serve the reciprocal rights and duties of the parties under the collective
bargaining provisions

Q: WHEN CAN A BARGAINING UNIT BE CONSIDERED AS APPROPRIATE?

A: To be appropriate, the bargaining unit must effect a grouping employees who have substantial,
mutual interest in wages, hours, working conditions and other subjects of collective bargaining.

Q: WHAT ARE THE FACTORS IN DETERMINING A BARGAINING UNIT?

A:
1. Will of employees (Globe doctrine)
2. Substantial mutual interests principle or community or mutuality of interests
3. Prior collective bargaining history - employment status i.e. temporary, seasonal, probationary
employees

Q: EXPLAIN THE PROCEDURE IN THE REPRESENTATION ISSUE IN ORGANIZED ESTABLISHMENT.

A:
1) A verified petition questioning the majority status of the incumbent bargaining agent is filed before
DOLE within the 60-day period before CBA.

2) Med Arbiter shall automatically order an election by secret ballot when the verified petition is
supported by the written consent of at least 25% of all employees in the bargaining unit to
ascertain the will of the employees in the appropriate bargaining unit.

3) Valid election: at least a majority of all eligible voters in the unit must have cast their votes.

4) LU receiving the majority of the valid votes cast shall be certified as the exclusive BA of all
workers in the unit.

5) Election provides for 3 or more choices results in no choice receiving a majority of the valid votes
cast, a run-off election shall be conducted between the LU receiving the 2 highest no. of votes;
provided the total no. of votes for all contending unions is at least 50% of the no. of votes.

6) Expiration of the freedom period: employer shall continue to recognize the majority status of the
incumbent BA where no petition for certification election is filed.

Q: EXPLAIN THE NATURE AND PROCESS OF THE DETERMINATION OF REPRESENTATION

STATUS.

A:
1) The determination of an exclusive representative is a non-litigious proceedings and, as far as
practicable, shall be free from technicalities of law and procedure provided that in any case the
exclusive bargaining representative enjoys the majority support of all the employees in the BU.

2) The determination of an exclusive bargaining representative shall be through:

- Voluntary recognition in cases where there I only 1 legitimate labor organization operating within the
BU; or
- Through certification, run-off or consent election.

Q: WHAT ARE THE FOUR (4) WAYS OF DETERMINING A BARGAINING AGENT?

A:
(1) Voluntary recognition of union - process whereby the employer recognizes a labor organization
as the exclusive bargaining representative of the employees in the appropriate BU after a
showing that the labor organization is supported by at least a majority of the employees in the
BU.
(2) Certification election. - refers to the process of determining through secret ballot the sole and
exclusive bargaining representative of the employees in an appropriate bargaining unit, for
purposes of collective bargaining.
(3) Consent election. - refers to the election voluntarily agreed upon by the parties, with or without
the intervention of the Department of Labor and Employment, to determine the issue of majority
 representation of all the workers in the appropriate collective bargaining unit.
(4) Run-off election. - refers to an election between the labor unions receiving the two (2) highest
number of votes when a certification election which provides for three (3) or more choices results
in no choice receiving a majority of the valid votes cast; provided, that the total number of votes
for all contending unions is at least fifty percent (50%) of the number of votes cast.

Q: WHAT IS VOLUNTARY RECOGNITION?

A: It is a process whereby the employer recognizes a labor organization as the exclusive bargaining
representative of the employees in the appropriate BU after a showing that the labor organization is
supported by at least a majority of the employees in the BU.

Q: EXPLAIN THE PROCEDURE IN REPRESENTATION ISSUE IN UNORGANIZED ESTABLISHMENTS.

A:
∙ With only 1 legitimate labor organization, the employer may voluntarily recognize the
representation status of such a union.

∙ Within 30 days from such recognition, the employer and union shall submit a notice of voluntary
recognition with the Regional Office which issued the recognized LU’s certificate of
registration/creation of a chartered local.

Q: WHAT ARE ITS REQUIREMENTS?

A:
∙ A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition.

∙ Certificate of posting of the joint statement of voluntary recognition following publication

requirements.

∙ Approximate no. of employees in the BU, accompanied by the names of those who support the
voluntary recognition comprising at least a majority of the members of the BU.

∙ Statement that the LU is the only legitimate labor organization operating with the BU.

∙ All accompanying documents must be certified under oath by the employer representative and
president of the recognized LU.

Q: EXPLAIN THE PROPER ACTION ON THE NOTICE.

A:
∙ If sufficient in form, number and substance and no other registered LU operating with the BU
concerned, the RO, through Labor Relations Division shall, within 10 days from receipt of the
notice record the fact of voluntary recognition.

∙ If insufficient, the RO shall notify the LU of its findings and advise it to comply with the necessary
requirements.

∙ Where either the employer or the labor union failed to complete the requirements within 30 days
from receipt of advisory, RO shall return the notice for voluntary recognition together with its
documents without prejudice to its resubmission.

Q: WHAT IS THE EFFECT OF THE RECORDING OF FACT OF VOLUNTARY RECOGNITION?

A:
o From the time of recording of voluntary recognition, the recognized LU shall enjoy the rights,
privileges and obligations of an existing BA of all the employees in the BU.

o The entry of voluntary recognition bars the filing of petition for certification election by any
labor organization for 1 year from date of entry.

o Upon expiration: may file such petition unless a CBA between the employer and voluntarily
recognized LU was executed and registered with the RO.

Q: WHAT IS CERTIFICATION ELECTION?

A: It is the process of determining by secret ballot the sole and exclusive BA of the employees in an
appropriate BU for purposes of collective bargaining. It is the fairest and most effective way of
determining which labor organization can truly represent the working force.

🕮 Such proceeding is not a litigation but a mere investigation of a non-adversary fact-finding character in
which DOLE plays the part of a disinterested investigator seeking merely to ascertain the desires of the
employees as to the matter of their representation.

Q: WHAT IS CONSENT ELECTION?

A: It refers to the election voluntarily agreed upon by the parties, with or without the intervention of the
Department of Labor and Employment, to determine the issue of majority representation of all the
workers in the appropriate collective bargaining unit.

Q: STATE THE DIFFERENCES BETWEEN A CERTIFICATION ELECTION AND A CONSENT

ELECTION. A:

AS TO NATURE:

Certification Election: separate and distinct from a consent election

Consent election: a separate and distinct process and has nothing to do with the import and effect of
a certification election.

AS TO PURPOSE:

Certification Election: To determine the sole and exclusive BA of all the employees in an appropriate
BU for the purpose of the purpose of collective bargaining.

Consent Election: To determine the issue of majority representation of all the workers in the
appropriate collective BU mainly for the purpose of determining the administrator of the CBA when
the contracting union suffered massive disaffiliation but not for the purpose of determining the BA for
purposes of collective bargaining.

Q: WHAT IS DIRECT CERTIFICATION?

A: It is a process whereby the Med Arbiter directly certifies a labor organization of an appropriate BU
of a company after a showing that such petition is supported by at least a majority of the employees in
the BU (It is no longer allowed.).

Q: STATE THE DIFFERENCES BETWEEN CERTIFICATION ELECTION IN ORGANIZED AND

UNORGANIZED ESTABLISHMENTS.

A: WHEN MANDATORY ON THE PART OF THE BLR

∙ ORGANIZED: upon the filing of a verified petition by a legitimate labor organization questioning the
majority status of the incumbent bargaining agent within 60-day freedom period before the expiration of
CBA

∙ The petition must be supported by the written consent of at least 25% of all the employees in the
appropriate BU
∙ The employer cannot file a petition or certification election; only a legitimate labor organization can file
such petition.

∙ UNORGANIZED: upon the filing of a verified petition by a legitimate labor organization OR upon the filing
of a petition by the employer when such employer is requested by the employees to bargain collectively
AS TO THE PERIOD OF FILING:
Organized: When there is a CBA, the labor organization can file a petition for certification election within the
60-day period (Contract Bar Rule). When there is no CBA, then the labor organization can file a petition for
certification election at any time subject to the Deadlock Bar Rule
Unorganized: any time, subject however to the ‘one election per year rule’

Q: WHO MAY FILE A PETITION FOR CERTIFICATION ELECTION?

A: A petition for certification election may be filed by:

1. A legitimate labor organization; or

2. An employer, but only when requested by a labor organization to bargain collectively and the
status of the union is in doubt.

Q: WHERE IS THE VENUE OF CERTIFICATION ELECTION?

A:
∙ Where the place of work of the employees and the principal office of the employer are within the
 territorial jurisdiction of different ROs, the petition for certification election may be filed in the RO
where the employee’s workplace is located.

∙ RO having jurisdiction over the principal office of the employer applies only to cases where the
employees’ place of work and the employer’s principal place are under the same DOLE RO to
prevent inconvenience to the workers.

Q: WHAT ARE THE REQUISITES BEFORE A LABOR UNION CAN BE DECLARED A WINNER
(DOUBLE MAJORITY RULE)?

A:

∙ Majority of the eligible voters cast their vote

∙ Majority of the valid votes cast is for such union

Q: WHAT ARE INCLUDED IN DETERMINING THE DOUBLE MAJORITY RULE?

A:
∙ In determining the eligible votes cast (first majority), spoiled ballots are included. ∙ In determining
valid votes (second majority), spoiled ballots are eliminated but challenged votes are included.

212. Q: WHEN IS THE 25% REQUIREMENT CONSIDERED DIRECTORY?

A:
∙ 25% requirement shall be satisfied upon the filing of the petition, otherwise it will be dismissed. ∙ It
should not be strictly applied to frustrate the determination of the legitimate representative of the
workers.

∙ Mere filing of a petition for certification election within the freedom period is sufficient basis for
holding such election, subject to the submission of the consent signatures within a reasonable
period.

Q: WHEN IS A RUN-OFF ELECTION PROPER?

A:
∙ A valid election took place because majority of the collective BU members voted (first majority). ∙

The said election presented at least 3 choices.

∙ Not one of the choices obtained the majority (50% + 1 - second majority) of the valid votes cast. ∙

The total votes for the unions are at least 50% of the votes cast.

∙ There are no unresolved challenged votes or election protest which if sustained can materially
alter the results.

∙ The two choices which garnered the highest votes will be voted and the one which garners the
highest number of votes will be declared the winner provided they get the majority votes of the
total votes cast.

∙ The unions receiving the highest and second highest number of votes cast will participate in the
run-off election.

“No union” can not be a choice in the run-off election.

Q: WHAT ARE THE RULES WHICH PREVENT THE HOLDING OF A CERTIFICATION ELECTION?
EXPLAIN EACH.

A:

1. Deadlock Bar Rule is a petition for certification election can only be entertained if there’s no
pending bargaining deadlock submitted to conciliation or arbitration or which has become the subject
of a valid notice of strike or lockout

Q: WHAT ARE THE INDICATIONS OF A GENUINE DEADLOCK?

A:
∙ The submission of the deadlock to a third party conciliator or arbitrator
∙ The deadlock is the subject of a valid notice or strike/lockout

2. One Year Bar Rule (Certification Year Rule) states that no petition for certification election may be
filed within 1 year from the date of a valid certification, consent, or run-off election or from the date of
voluntary recognition
 3. Negotiation Bar Rule is a petition for certification election cannot be entertained if, before the filing
of the petition for certification election, the duly recognized or certified union has commenced
negotiation with the employer in accordance with Art. 250

4. Contract Bar Rule provides that while a valid and registered CBA of a fixed duration is subsisting,
the BLR is not allowed to hold an election contesting the majority status of the

incumbent union during the 5-year term of the CBA except during the 60-day period immediately
prior to the expiration of the CBA
5.
∙ Agreement is in writing and signed by all contracting parties
∙ It must contain the terms and conditions of employment
∙ Covered employees in an appropriate BU
∙ It is for a reasonable period of duration
∙ It must be ratified
∙ It must be registered with the BLR
∙ The violation of the contract bar rule or the existence of a duly registered CBA must be
specifically impleaded as a defense

Q: EXCEPTIONS TO CONTRACT BAR RULE.

A:
(1) CBA is not registered or, although registered, contains provisions lower than the standards fixed
by law;
(2) CBA deregistered during the 60-day freedom period;
(3) CBA was hastily concluded way ahead of the freedom period;
(4) CBA is incomplete in itself or when the documents supporting its registration are falsified,
fraudulent or tainted with misrepresentation;
(5) CBA does not foster industrial peace because of schism resulting in an industrial dispute; (6)
CBA was concluded in violation of an order enjoining the parties from entering into a CBA until the
issue of representation is resolved.

🕮 Petition must be filed during the 60-day period

Q: EXPLAIN THE SUBSTITUTIONARY DOCTRINE.

A: Where there occurs a shift in the employees’ union allegiance after the execution of a collective
bargaining contract with the employer, employees can change their agent (LU), but the collective
bargaining contract which is still subsisting continues to bind the employees up to its expiration date.
They may however, bargain for the shortening of said expiration.

Q: WHAT IS ITS LIMITATION?

A: it cannot be invoked to support the contention that a newly certified collective BA automatically
assumes all the personal undertakings of the former agent like the ‘no-strike clause’ in the CBA
executed by the latter.

Q: WHAT IS THE EFFECT OF A FORMAL CHARGE OF COMPANY DOMINATION AGAINST ONE OF

THE UNIONS PARTICIPATING IN THE CERTIFICATION PROCEEDING?

A: This is a prejudicial question that, until decided, bars such proceedings.

Arts. 260-262-B

GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

Q: WHAT IS GRIEVANCE?

A: It is any question, complaint or dissatisfaction by either the employer or the union regarding the
interpretation or application of the CBA or company personnel policies or any claim by either party of
any violation thereof.

Q: WHAT IS GRIEVANCE MACHINERY?

A: It refers to the mechanism for the adjustment and resolution of grievances arising from the
interpretation or implementation of a CBA and those arising from the interpretation or enforcement of
company personnel policies. It is part of the continuing process of collective bargaining.

Q: WHAT IS GRIEVANCE PROCEDURE?

A: It refers to the internal rules of procedure established by the parties in their CBA which usually
consists of successive steps starting at the level of the complainant and his immediate supervisor and
ending, when necessary, at the level of the top union and company officials and with voluntary
 arbitration as the terminal step, which are intended to resolve all issues arising from the
implementation and interpretation of their CBA.

Q: WHAT PROVISIONS MUST THE PARTIES TO A CBA INCLUDE?

A: Parties to a CBA shall include therein provisions that will ensure the mutual observance of its terms
and conditions. They shall also establish a machinery for adjustment and resolution of grievances
arising from the interpretation/implementation of their CBA and those arising from
interpretation/enforcement of personnel policies.

Q: WHAT WILL HAPPEN TO THE GRIEVANCES SUBMITTED TO THE GRIEVANCE MACHINERY

WHICH ARE NOT SETTLED WITHIN 7 CALENDAR DAYS FROM THE DATE OF SUBMISSION?

A: All grievances submitted to the grievance machinery which are not settled within 7 calendar days
from date of submission shall automatically be referred to voluntary arbitration prescribed in the CBA.

Q: HOW IS A VOLUNTARY ARBITRATOR/PANEL CHOSEN?

A: Parties in CBA shall name in advance a voluntary arbitrator/panel preferably from the listing of
qualified voluntary arbitrators duly accredited by NCMB

Q: WHO WILL DESIGNATE THE VOLUNTARY ARBITRATOR/ PANEL IN CASE THE PARTIES FAIL TO
SELECT ONE?

A: In case the parties fail to select a voluntary arbitrator, NCMB shall designate the voluntary
arbitrators/panel pursuant to the selection procedure provided by the CBA.

Q: DISCUSS THE PROCEDURE FOR THE ESTABLISHMENT OF GRIEVANCE MACHINERY?

A: In case of the absence of grievance machinery in the CBA: a grievance committee shall be created
within 10 days from signing of CBA. It shall be composed of at least 2 representatives each from
members of BU and employer unless otherwise agreed upon and the representatives of BU shall be
designated by the members of the BU.

Q: WHAT IS THE PROCEDURE IN HANDLING GRIEVANCES (IN THE ABSENCE OF PROCEDURE IN

CBA)?

A:
∙ Employee presents his grievance/complaint orally/writing to the shop steward; latter will verify the
facts and determine validity of grievance.

∙ If grievance is valid, shop steward shall immediately bring the complaint to employee’s immediate
supervisor; shop steward, employee, supervisor shall exert effort to settle grievance at their
level.

∙ If there is no settlement, the grievance shall be referred to the grievance committee; which shall
give its decision within 10 days upon receipt referral.

∙ If the issue involves/arises from interpretation of CBA, order, memo, circular, etc. issued by
appropriate authority in the establishment and such can’t be resolved at the level of the shop
steward/supervisor, the same may be referred immediately to grievance committee.

SUBMISSION TO VOLUNTARY ARBITRATION:

Q: WHAT IS VOLUNTARY ARBITRATION?

A: It refers to the mode of settling labor-management disputes by which the parties select a
competent, trained and impartial third person who shall decide on the merits of the case and whose
decision is final and executory. (Section 1 [d], Rule II, NCMB Revised Procedural Guidelines in the
Conduct of Voluntary Arbitration Proceedings [Oct. 15, 2004]).

∙ Grievance remains unresolved: either party may serve notice upon the other of its decision to submit
the issue to voluntary arbitration.

o Notice must state the issue/s

∙ Party upon whom the notice is served failed/refused to respond within 7 days from receipt: voluntary
arbitrator/panel designated in the CBA shall commence arbitration proceedings.

o CBA does not designate, NCMB appoints voluntary arbitrator

∙ Parties fail to select voluntary arbitrator/panel: regional branch of NCMB shall designate voluntary
arbitrator/panel
Q: WHAT IS THE JURISDICTION OF THE VOLUNTARY ARBITRATOR/PANEL?

A:
∙ Exclusive and original jurisdiction to hear and decide (rights disputes):

o All grievances arising from the implementation/interpretation of the CBA and those of
personnel policies which remain unresolved after exhaustion of the grievance procedure

o Wage distortion issues arising from application of any wage orders in organized
establishments

o Unresolved grievances arising from the interpretation/implementation of productivity incentive

programs (RA 6971)

Q: CAN NLRC, ITS REGIONAL BRANCHES AND RDS OF DOLE ENTERTAIN DISPUTES,
GRIEVANCES, OR MATTERS UNDER THE EXCLUSIVE AND ORIGINAL JURISDICTION OF THE
VOLUNTARY ARBITRATOR/PANEL?

A: No. NLRC, its regional branches and RDs of DOLE shall NOT entertain disputes, grievances, or matters
under the exclusive and original jurisdiction of the voluntary arbitrator/panel and shall immediately dispose
and refer the same to the appropriate grievance machinery or voluntary arbitration in the CBA.

🕮 Similar provisions stated in Article 261 Jurisdiction of voluntary arbitrator/panel over disputes/issues
(rights disputes):

∙ Violations of a CBA, except those that are gross in character, shall no longer be treated as ULP, and
shall be resolved as grievances under the CBA.

∙ Gross violations of CBA: flagrant/malicious refusal to comply with the economic provisions of CBA.

Q: CAN ALL OTHER DISPUTES INCLUDING ULP AND BARGAINING DEADLOCKS BE SUBMITTED
TO VOLUNTARY ARBITRATION?

A: Yes. Under Article 262, all other disputes including ULP and bargaining deadlocks (interest disputes)
may by agreement of parties be also submitted to voluntary arbitration.

Q: CAN “NATIONAL INTEREST” DISPUTES BE SUBMITTED TO VOLUNTARY ARBITRATION?

A: Yes. Under Article 263 (h) even “national interest” disputes may, be submitted by the parties to
voluntary arbitration before or at any stage of the compulsory arbitration process.

Q: WHAT ARE THE POWERS OF THE VOLUNTARY ARBITRATOR/PANEL?

A:
∙ To hold hearings, receive evidence and take whatever action necessary to resolve the
issues/subject of dispute.

∙ Conciliate/mediate to aid the parties in reaching a voluntary settlement of the dispute.

Q: WHAT IS THE PROCEDURE FOR VOLUNTARY ARBITRATION?

A:
∙ All parties to the dispute shall be entitled to attend to arbitration proceedings.

∙ Attendance of third party or exclusion of witnesses shall be determined by the voluntary

arbitrator/panel.

∙ Unless parties agree otherwise, mandatory for the arbitrator to render award/decision within 20
days from date of submission of resolution.

∙ Failure of the arbitrator to render a decision, resolution, award, order within the prescribed period,
upon complaint of a party, is a sufficient ground for NCMB to discipline said arbitrator.

∙ If the recommended sanction is de-listing, it is unlawful for the arbitrator to refuse/fail to turn over
to NCMB for its further disposition the records of the case within 10 days from date of demand.

🕮 Similar with Article 262-A

Q: WHEN IS THE DECISION/AWARD FINAL?

 A: The decision, order or award of the arbitrator shall be final and executory after 10 calendar days
from receipt of the copy of said award/decision and shall not be a subject for an MR.

Q: WHAT IS THE EFFECT OF THE AWARD OF THE VOLUNTARY ARBITRATORS?

A: Under Article 261, the award of voluntary arbitrators acting within the scope of their authority
determines the rights of the parties and their decisions have the same legal effects as judgment of the
courts. Such decisions on matters of fact and law are conclusive.

Q: WHO MAY ISSUE THE WRIT OF EXECUTION IN CASE OF ABSENCE OR INCAPACITY OF THE
ARBITRATOR WHO ISSUED THE AWARD/DECISION?

A: Upon motion of any interested party, the arbitrator or Labor Arbiter in the region where the movant
decides, in case of absence/incapacity for any reason of the arbitrator who issued the award/decision,
may issue a writ of execution requiring either the Sheriff of the Commission or regular courts or any
public officer whom the parties may designate in the submission agreement to execute the final
decision/award

Q: ARE BOTH EMPLOYER AND THE BARGAINING REPRESENTATIVE OF THE EMPLOYEES

REQUIRED TO GO THROUGH THE GRIEVANCE MACHINERY IN CASE A GRIEVANCE ARISES?

A: Yes. Both the employer and the bargaining representative of the employees are required to go
through the grievance machinery in case a grievance arises

RATIO:

∙ It is logical, just and equitable that whoever is aggrieved should initiate settlement of grievance
through grievance machinery

∙ To impose compulsory procedure on employers alone would be oppressive of capital.

Q: EXPLAIN THE CONCEPT OF GRIEVANCE MACHINERY.

A:
∙ Under the CBA, the department head shall act on the grievance within 5 days from the date of
presentation; otherwise, the grievance must be resolved in favor of the aggrieved party.

∙ One way of implementing the constitutional mandate for protection of labor.

∙ A must provision in any CBA and no collective agreement can be registered in the absence of
such procedure.

∙ Although the provision mentions “parties to a CBA” it does not mean that a grievance machinery
cannot be set up in a CBA-less enterprise. In any workplace where grievance can arise, a
grievance machinery can be established

∙ Part of the continuous process of collective bargaining intended to promote a friendly dialogue
between labor and management as a means of maintaining industrial peace

Q: WHAT IS VOLUNTARY ARBITRATION?

A: It is a contractual proceeding where parties to a dispute select a judge of their own choice and by
consent submit their controversy to him for determination

Q: HOW MAY ARBITRATION BE INITIATED?

A: Arbitration may be initiated by:

∙ Submission agreement: where the parties define the disputes to be resolved; or ∙

Demand notice: invoking collective agreement arbitration clause

Q: WHO HAS JURISDICTION OVER ACTUAL TERMINATION DISPUTES AND COMPLAINTS FOR
ILLEGAL DISMISSAL FILED BY WORKERS PURSUANT TO THE UNION SECURITY CLAUSE?

A: The Labor Arbiter NOT Grievance Machinery has Jurisdiction over Actual Termination Disputes and
over complaints for illegal dismissal filed by workers who were dismissed pursuant to the union

security clause in the CBA; where the dispute between the union and the company on one hand and
some union and non-union members on the other, the same must be settled by an impartial body.
Q: EXPLAIN THE CONCEPT OF JUDICIAL REVIEW OF VOLUNTARY ARBITRATION.

A:
∙ Decisions of voluntary arbitrators must be give the highest respect and as a general rule must be
accorded a certain measure of finality.

∙ Such decisions are final and inappealable except when there is want of jurisdiction, grave abuse of
discretion, and violation of due process, denial of substantial justice or erroneous interpretation
of the law.

∙ Arbitrators, by the nature of their functions, act in a quasi-judicial capacity (BP 129, as amended by
RA 7902); where a question of law is involved or there’s abuse of discretion, courts will not
hesitate to pass upon review of his acts.

∙ Proper remedy from an adverse decision of the voluntary arbitrator is a petition for review under
Rule 43 of the Revised Rules of Court which must be filed with the Court of Appeals within 15
days from notice of the decision of the voluntary arbitrator. The special civil action of certiorari is
not and cannot be sustained for an appeal.

Q: WHO WILL SHOULDER THE COST OF VOLUNTARY ARBITRATION AND VOLUNTARY

ARBITRATOR’S FEE?

A: The parties to a collective bargaining agreement shall provide therein a proportionate sharing scheme
on the cost of voluntary arbitration including the voluntary arbitrator’s fee.

Q: WHAT ARE THE FACTORS IN FIXING THE FEE OF VOLUNTARY ARBITRATORS?

A:
a. Nature of the case;
b. Time consumed in hearing the case;
c. Professional standing of voluntary arbitrator;
d. Capacity to pay the parties; and
e. Fees provided for in the Revised Rules of Court.

Arts. 263-264
STRIKES AND LOCKOUTS

Q: WHAT IS A STRIKE?

A: It is any temporary stoppage of work by the concerted action of employees as a result of an

industrial/labor dispute.

∙ It is the most effective weapon of labor in protecting the rights of employees to improve the terms
and conditions of their employment.

∙ Government employees may form labor unions but are not allowed to strike.

∙ Only legitimate labor organizations are given the right to strike.

∙ Unionized workers may hold a protest action but not a strike

∙ Not all concerted activities are strikes; they may only be protest actions — they do not necessarily
cause work stoppage by the protesters. A strike in contrast is always a group action accompanied
by work stoppage.

Q: WHAT IS A LOCKOUT?

A: It is the temporary refusal of an employer to furnish work as a result of an industrial or labor

dispute. Q: WHAT IS PICKETING?

A: It is the act of marching to and fro the employer’s premises which is usually accompanied by the
display of placards and other signs, making known the facts involved in a labor dispute. It is an
exercise of one’s freedom of speech.

Q: WHO IS A STRIKE-BREAKER?

A: A strike-breaker is any person who obstructs, impedes or interferes by force, violence, coercion,
threats or intimidation any peaceful picketing by employees during any labor controversy affecting
wages, hour or conditions of work or in the exercise of the right to self-organization or collective
bargaining.
Q: WHAT IS A STRIKE AREA?

A: It is the establishment, warehouse, depots, plants or offices, including the sites or premises used as
runaway shops of the employer struck against, as well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all points of entrance to and exit from said establishment.

Q: GIVE SOME EXAMPLES OF STRIKES AND EXPLAIN THEIR LEGALITY.

A:

1. Sit-down strike: characterized by a temporary work stoppage of workers who thereupon seize or
occupy property of the employer or refuse to vacate the premises of the employer.

🕮 Illegal – amounts to a criminal act because the employees trespass on their premises of the
employer.

2. Wildcat strike: a work stoppage that violates the labor contract and is not authorized by the union.

🕮 Illegal – invalid because it fails to comply with certain requirements of the law to wit: notice of
strike, vote and report on strike vote.

3. Slowdown: strike on the installment plan; an activity by which workers, without complete stoppage
of work, retard production or their performance of duties and function to compel management to
grant their demands.

🕮 Illegal – employees work on their own terms; while the employees continue to work and remain in
their positions and accept wages paid to them, they at the same time select what part on their
allotted tasks they care to perform on their own volition or refuse openly or secretly.

4. Sympathetic strike: work stoppages of workers of one company to make common cause with
other strikers or other companies without demands or grievances of their own against the employer.

🕮 Illegal – there is no labor dispute between the workers who are joining the strikers and the latter’s
employer.

5. Secondary strikes: work stoppages of workers of one company to exert pressure on their
employer so that the latter will in turn bring pressure upon the employer of another company with
whom another union has a labor dispute.

🕮 Illegal – there is no labor dispute involved.

6. ‘Welga ng Bayan’: a political strike and therefore there is neither a bargaining deadlock nor any
ULP.

🕮 Illegal – it is a political rally

Q: WHAT ARE THE GROUNDS FOR THE DECLARATION OF STRIKE?

A:
∙ Deadlock in CBA (economic)
∙ ULP (political)

Q: EXPLAIN THE DIFFERENCES BETWEEN AN ECONOMIC STRIKE AND A ULP STRIKE.

A:
AS TO NATURE:
ECONOMIC: voluntary strike because the employee will declare a strike to compel management to
grant its demands

ULP STRIKE: involuntary strike; the labor organization is forced to go on strike because of the ULP
committed against them by the employer. It is an act of self-defense since the employees are being
pushed o the wall and their only remedy is to stage a strike

WHO WILL INITIATE:

ECONOMIC: the collective bargaining agent of the appropriate bargaining unit can declare an
economic strike.
ULP STRIKE: either: collective bargaining agent or the legitimate labor organization in behalf of its
members.
AS TO THE COOLING-OFF PERIOD

ECONOMIC STRIKE: 30 days from notice of strike before the intended date of actual strike subject to the 7-
day strike ban.

ULP STRIKE: 15 days from the filing of the notice of strike.

AS TO THE EXCEPTION TO THE COOLING-OFF PERIOD:

ECONOMIC STRIKE: No exception – mandatory

notice of strike and strike vote maybe dispensed with. They may strike immediately.

ULP STRIKE: The cooling off period may be dispensed with, and the union may take immediate
action in case of dismissal from employment of their officers duly elected in accordance with the
union’s Constitution and by-laws, which may constitute union busting where the existence of the
union is threatened
it must still observe the mandatory 7-day (strike ban) period before it can stage a valid strike

Q: WHAT ARE THE CHARACTERISTICS OF STRIKES?

A:
∙ There is an established relationship between the strikers and the persons against whom the strike
is called.

∙ The relationship is one of employer and employee.

∙ The existence of a dispute between the parties and the utilization by labor of the weapon of
concerted refusal to work as a means of persuading or coercing compliance with the working
men’s demands.

∙ The contention advanced by the workers that although the work ceases, the employment relation
is deemed to continue albeit in a state of belligerent suspension.

∙ There is work stoppage, which is temporary.

∙ The work stoppage is done through the concerted action of the employees.

∙ The striking group is a legitimate labor organization, and in case of bargaining deadlock, is the
employees’ sole bargaining representatives.

Q: WHAT ARE THE TESTS IN DETERMINING THE LEGALITY OF STRIKE?

A:
-Purpose Test: the strike must be due to either bargaining deadlock and/or
-ULP

Q: DISCUSS THE COMPLIANCE REQUIREMENTS ON THE PROCEDURAL AND SUBSTANTIVE

ASPECTS OF THE LAW ON STRIKES.

A:
1. Notice of Strike
2. 30/15-day cooling off period before the intended date of actual strike subject to the 7-day strike
ban cooling off period:

∙ that period of time given by the NCMB to mediate and conciliate the parties
∙ that span of time allotted by law for the parties to settle their disputes in a peaceful manner
before staging a strike or lockout

3. Strike Vote: a requirement wherein the decision to declare a strike must be:

∙ Approved by a majority of the total union membership in the BU concerned

∙ Obtained by secret ballot through meetings or referenda called for the purpose

∙ Its purpose is to ensure that the intended strike is a majority decision

∙ The report on the strike vote must be submitted to DOLE at least 7 days before the intended
strike subject to the cooling off period

4. 7-day Strike Ban: a 7-day waiting period before the date of the purported strike (within which the
union intending to conduct a strike must at least submit a report to DOLE as to the result of the strike
vote) intended to give DOLE an opportunity to verify whether the projected strike really carries the
imprimatur of the majority of the union members in addition to the cooling off period before actual
strike. Cooling off and waiting period may be done simultaneously.

Q: EXPLAIN THE CONCEPT OF MEANS EMPLOYED TEST.

A: It states that a strike may be legal at its inception but eventually be declared illegal if the strike is
 accompanied by violence which is widespread, pervasive and adopted as a matter of policy and not
merely violence which is sporadic which normally occur in a strike area

Q: WHAT IS THE EFFECT OF GF OF STRIKERS ON THE LEGALITY OF STRIKE?

A: A strike may be considered legal where the union believed that the company committee ULP and
the circumstances warranted such belief in GF, although subsequently such allegations of ULP are
found out as not true

Q: EXPLAIN THE TOTALITY DOCTRINE.

A: It provides that the culpability of an employer’s remarks is to be evaluated not only on the basis of
their implicit implications but are to be appraised against the background of an in conjunction with
collateral circumstances

Q: WHEN IS AN EXPRESSION OF AN OPINION BY THE EMPLOYER HELD TO BE CULPABLE?

A: Expressions of an opinion by an employer which, though innocent in them, frequently were held to
be culpable based on the following:

∙ The circumstances under which they were uttered;

∙ The history of the particular employer’s labor relations of anti-union bias; or
∙ Their connection with an established collateral plan of coercion or interference.

Q: WHEN MAY THE SECRETARY OF LABOR ASSUME JURISDICTION OVER A STRIKE?

A:
∙ There exists a labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest

∙ The Secretary may decide it or certify the same to NLRC for compulsory arbitration

∙ Prior notice or hearing be given to parties not necessary as justified by the exigency of the
situation in relation to national interests

Q: WHAT ARE THE EFFECTS OF THE ASSUMPTION OF JURISDICTION BY THE SECRETARY?

A:
∙ It automatically enjoins the intended or impending strike or lockout, as specified in the assumption
or certification order.

∙ If one has already taken place at the time of assumption or certification, all striking or locked out
employees shall immediately return to work.

∙ The employer shall immediately resume operations and readmit all workers under the same terms
and conditions prevailing before the strike or lockout.

🕮 MR does not suspend the effects, as the assumption order is immediately executory.

Q: ARE STRIKERS ENTITLED TO THEIR WAGES DURING THE PERIOD OF STRIKE?

A: G.R NO. Strikers are NOT entitled to their wages during the period of a strike even if the strike is
legal.

Q: WHAT ARE ITS EXCEPTIONS?

A: in case of ULP strike, in the discretion of the authority deciding the case:

∙ Where the strikers voluntarily and unconditionally offered to return to work, but the employer
refused to accept the offer

∙ They are entitled to back wages from the date the offer was made

∙ When there is return-to-work order and the employees are discriminated against other employees

∙ They are entitled to back wages from the date of discrimination

Q: WHAT IS THE RULE ON THE REINSTATEMENT OF STRIKING WORKERS?

A: G.R.: Striking employees are entitled to reinstatement, regardless of whether or not the strike was the
consequence of the employer’s ULP because while out on strike, the strikers are not considered to have
abandoned their employment, but rather have only ceased from their labor; the declaration of a strike is not a
renunciation of employment relation.

Q: WHO ARE NOT ENTITLED TO REINSTATEMENT?

A:
∙ Union officers who knowingly participate in the illegal strike.

∙ Any striker or union who knowingly participates in the commission of illegal acts during the strike.

∙ Those union members who have joined an illegal strike but have not committed any illegal act shall
be reinstated but without backwages.

Q: WHAT IS THE RULE ON STRIKES IN HOSPITALS?

A:
∙ It shall be the duty of the striking employees or locking-out employer to provide and maintain an
effective skeletal workforce of medical and other health personnel for the duration of the strike or
lockout.

∙ The Secretary of Labor may immediately assume jurisdiction within 24 hours from knowledge of
the occurrence of such strike or lockout or certify it to the NLRC for compulsory arbitration.

Art. 264
PROHIBITED ACTIVITIES

Q: WHAT ARE THE REQUIREMENTS BEFORE A LABOR ORGANIZATION OR EMPLOYER CAN

DECLARE A STRIKE/LOCKOUT?

A:
No Labor organization or employer shall declare a strike/lockout:

∙ Without first having bargained collectively in accordance with Title VII of this Book; or ∙

Without first having filed the notice required in Art. 263; or

∙ Without the necessary strike/lockout vote first having obtained and reported in DOLE.

Q: WHEN IS A STRIKE, OR LOCKOUT WILL NOT BE ALLOWED TO BE DECLARED?

A:
∙ After assumption of jurisdiction by the President or the Secretary or

∙ After certification or submission of the dispute to compulsory or voluntary arbitration or ∙

During the pendency of cases involving the same grounds for the strike/lockout

Q: MAY THIRD PERSONS OBSTRUCT, IMPEDE OR INTERFERE BY FORCE, VIOLENCE, COERCION,

THREATS OR INTIMIDATION PEACEFUL PICKETING OR STRIKES BY EMPLOYEES?

A: No. No person (third person) shall obstruct, impede or interfere by force, violence, coercion, threats
or intimidation:

∙ Any peaceful picketing by employees

∙ During any labor controversy or in the exercise of the right of self-organization or collective
bargaining or

∙ Shall aid or abet such obstruction or interference

Q: MAY AN EMPLOYER USE OR EMPLOY A STRIKEBREAKER?

A: No. No employer shall use or employ any strikebreaker nor shall any person be employed as a
strike-breaker

SUBMISSION TO VOLUNTARY ARBITRATION:

Q: WHAT IS VOLUNTARY ARBITRATION?

 A: It refers to the mode of settling labor-management disputes by which the parties select a
competent, trained and impartial third person who shall decide on the merits of the case and whose
decision is final and executory. (Section 1 [d], Rule II, NCMB Revised Procedural Guidelines in the
Conduct of Voluntary Arbitration Proceedings [Oct. 15, 2004]).

∙ Grievance remains unresolved: either party may serve notice upon the other of its decision to submit
the issue to voluntary arbitration.

o Notice must state the issue/s

∙ Party upon whom the notice is served failed/refused to respond within 7 days from receipt: voluntary
arbitrator/panel designated in the CBA shall commence arbitration proceedings.

o CBA does not designate, NCMB appoints voluntary arbitrator

∙ Parties fail to select voluntary arbitrator/panel: regional branch of NCMB shall designate voluntary
arbitrator/panel

Q: WHAT IS THE JURISDICTION OF THE VOLUNTARY ARBITRATOR/PANEL?

A:
∙ Exclusive and original jurisdiction to hear and decide (rights disputes):

o All grievances arising from the implementation/interpretation of the CBA and those of
personnel policies which remain unresolved after exhaustion of the grievance procedure

o Wage distortion issues arising from application of any wage orders in organized
establishments

o Unresolved grievances arising from the interpretation/implementation of productivity incentive

programs (RA 6971)

Q: CAN NLRC, ITS REGIONAL BRANCHES AND RDS OF DOLE ENTERTAIN DISPUTES,
GRIEVANCES, OR MATTERS UNDER THE EXCLUSIVE AND ORIGINAL JURISDICTION OF THE
VOLUNTARY ARBITRATOR/PANEL?

A: No. NLRC, its regional branches and RDs of DOLE shall NOT entertain disputes, grievances, or matters
under the exclusive and original jurisdiction of the voluntary arbitrator/panel and shall immediately dispose
and refer the same to the appropriate grievance machinery or voluntary arbitration in the CBA.

🕮 Similar provisions stated in Article 261 Jurisdiction of voluntary arbitrator/panel over disputes/issues
(rights disputes):

∙ Violations of a CBA, except those that are gross in character, shall no longer be treated as ULP, and
shall be resolved as grievances under the CBA.

∙ Gross violations of CBA: flagrant/malicious refusal to comply with the economic provisions of CBA.

Q: CAN ALL OTHER DISPUTES INCLUDING ULP AND BARGAINING DEADLOCKS BE SUBMITTED
TO VOLUNTARY ARBITRATION?

A: Yes. Under Article 262, all other disputes including ULP and bargaining deadlocks (interest disputes)
may by agreement of parties be also submitted to voluntary arbitration.

Q: CAN “NATIONAL INTEREST” DISPUTES BE SUBMITTED TO VOLUNTARY ARBITRATION?

A: Yes. Under Article 263 (h) even “national interest” disputes may, be submitted by the parties to
voluntary arbitration before or at any stage of the compulsory arbitration process.

Q: WHAT ARE THE POWERS OF THE VOLUNTARY ARBITRATOR/PANEL?

A:
∙ To hold hearings, receive evidence and take whatever action necessary to resolve the
issues/subject of dispute.

∙ Conciliate/mediate to aid the parties in reaching a voluntary settlement of the dispute.

Q: WHAT IS THE PROCEDURE FOR VOLUNTARY ARBITRATION?

A:
∙ All parties to the dispute shall be entitled to attend to arbitration proceedings.
 ∙ Attendance of third party or exclusion of witnesses shall be determined by the voluntary
arbitrator/panel.

∙ Unless parties agree otherwise, mandatory for the arbitrator to render award/decision within 20
days from date of submission of resolution.

∙ Failure of the arbitrator to render a decision, resolution, award, order within the prescribed period,
upon complaint of a party, is a sufficient ground for NCMB to discipline said arbitrator.

∙ If the recommended sanction is de-listing, it is unlawful for the arbitrator to refuse/fail to turn over
to NCMB for its further disposition the records of the case within 10 days from date of demand.

🕮 Similar with Article 262-A

Q: WHEN IS THE DECISION/AWARD FINAL?

A: The decision, order or award of the arbitrator shall be final and executory after 10 calendar days
from receipt of the copy of said award/decision and shall not be a subject for an MR.

Q: WHAT IS THE EFFECT OF THE AWARD OF THE VOLUNTARY ARBITRATORS?

A: Under Article 261, the award of voluntary arbitrators acting within the scope of their authority
determines the rights of the parties and their decisions have the same legal effects as judgment of the
courts. Such decisions on matters of fact and law are conclusive.

Q: WHO MAY ISSUE THE WRIT OF EXECUTION IN CASE OF ABSENCE OR INCAPACITY OF THE
ARBITRATOR WHO ISSUED THE AWARD/DECISION?

A: Upon motion of any interested party, the arbitrator or Labor Arbiter in the region where the movant
decides, in case of absence/incapacity for any reason of the arbitrator who issued the award/decision,
may issue a writ of execution requiring either the Sheriff of the Commission or regular courts or any
public officer whom the parties may designate in the submission agreement to execute the final
decision/award

Q: ARE BOTH EMPLOYER AND THE BARGAINING REPRESENTATIVE OF THE EMPLOYEES

REQUIRED TO GO THROUGH THE GRIEVANCE MACHINERY IN CASE A GRIEVANCE ARISES?

A: Yes. Both the employer and the bargaining representative of the employees are required to go
through the grievance machinery in case a grievance arises

RATIO:

∙ It is logical, just and equitable that whoever is aggrieved should initiate settlement of grievance
through grievance machinery

∙ To impose compulsory procedure on employers alone would be oppressive of capital.

Q: What is Grievance machinery? Distinguished it from Grievance

A: A mechanism or the adjustment of controversies or disputes arising from the interpretation/implementation

of the CBA and the interpretation/implementation of personnel policies both employer and the bargaining
representative of the employees are required to go through the grievance machinery in case a grievance
arises logical, just and equitable that whoever is aggrieved should initiate settlement of grievance through
grievance machinery to impose compulsory procedure on employers alone would be oppressive of capital.

On the other hand a Grievance arises when there is a dispute/controversy over the
implementation/interpretation of a CBA or of personnel policies, and either the union or the employer invokes
the grievance machinery provision for the adjustment or resolution of such dispute/controversy)

Q: EXPLAIN THE CONCEPT OF GRIEVANCE MACHINERY.

A:
∙ Under the CBA, the department head shall act on the grievance within 5 days from the date of
presentation; otherwise, the grievance must be resolved in favor of the aggrieved party.

∙ One way of implementing the constitutional mandate for protection of labor.

∙ A must provision in any CBA and no collective agreement can be registered in the absence of
such procedure.
 ∙ Although the provision mentions “parties to a CBA” it does not mean that grievance machinery
cannot be set up in a CBA-less enterprise. In any workplace where grievance can arise, a
grievance machinery can be established

∙ Part of the continuous process of collective bargaining intended to promote a friendly dialogue
between labor and management as a means of maintaining industrial peace

Q: WHAT IS VOLUNTARY ARBITRATION?

A: It is a contractual proceeding where parties to a dispute select a judge of their own choice and by
consent submit their controversy to him for determination

Q: HOW MAY ARBITRATION BE INITIATED?

A: Arbitration may be initiated by:

∙ Submission agreement: where the parties define the disputes to be resolved; or ∙

Demand notice: invoking collective agreement arbitration clause

Q: WHO HAS JURISDICTION OVER ACTUAL TERMINATION DISPUTES AND COMPLAINTS FOR
ILLEGAL DISMISSAL FILED BY WORKERS PURSUANT TO THE UNION SECURITY CLAUSE?

A: The Labor Arbiter NOT Grievance Machinery has Jurisdiction over Actual Termination Disputes and
over complaints for illegal dismissal filed by workers who were dismissed pursuant to the union
security clause in the CBA; where the dispute between the union and the company on one hand and
some union and non-union members on the other, the same must be settled by an impartial body.

Q: EXPLAIN THE CONCEPT OF JUDICIAL REVIEW OF VOLUNTARY ARBITRATION.

A:
∙ Decisions of voluntary arbitrators must be give the highest respect and as a general rule must be
accorded a certain measure of finality.

∙ Such decisions are final and inappealable except when there is want of jurisdiction, grave abuse of
discretion, violation of due process, denial of substantial justice or erroneous interpretation of
the law.

∙ Arbitrators by the nature of his functions acts in a quasi-judicial capacity (BP 129, as amended by
RA 7902); where a question of law is involved or there’s abuse of discretion, courts will not
hesitate to pass upon review of his acts.

∙ Proper remedy from an adverse decision of the voluntary arbitrator is a petition for review under
Rule 43 of the Revised Rules of Court which must be filed with the Court of Appeals within 15
days from notice of the decision of the voluntary arbitrator. The special civil action of certiorari is
not and cannot be sustained for an appeal.

Q: WHO WILL SHOULDER THE COST OF VOLUNTARY ARBITRATION AND VOLUNTARY

ARBITRATOR’S FEE?

A: The parties to a collective bargaining agreement shall provide therein a proportionate sharing scheme
on the cost of voluntary arbitration including the voluntary arbitrator’s fee.

Q: WHAT ARE THE FACTORS IN FIXING THE FEE OF VOLUNTARY ARBITRATORS?

A:
f. Nature of the case;
g. Time consumed in hearing the case;
h. Professional standing of voluntary arbitrator;
i. Capacity to pay the parties; and
j. Fees provided for in the Revised Rules of Court.

Arts. 263-264
STRIKES AND LOCKOUTS

Q: WHAT IS A STRIKE?

A: It is any temporary stoppage of work by the concerted action of employees as a result of an

industrial/labor dispute.
 ∙ It is the most effective weapon of labor in protecting the rights of employees to improve the terms
and conditions of their employment.

∙ Government employees may form labor unions but are not allowed to strike.

∙ Only legitimate labor organizations are given the right to strike.

∙ Unionized workers may hold a protest action but not a strike

∙ Not all concerted activities are strikes; they may only be protest actions — they do not necessarily
cause work stoppage by the protesters. A strike in contrast is always a group action accompanied
by work stoppage.

Q: WHAT IS A LOCKOUT?

A: It is the temporary refusal of an employer to furnish work as a result of an industrial or labor

dispute. Q: WHAT IS PICKETING?

A: It is the act of marching to and fro the employer’s premises which is usually accompanied by the
display of placards and other signs, making known the facts involved in a labor dispute. It is an
exercise of one’s freedom of speech.

Q: WHO IS A STRIKE-BREAKER?

A: A strike-breaker is any person who obstructs, impedes or interferes by force, violence, coercion,
threats or intimidation any peaceful picketing by employees during any labor controversy affecting
wages, hour or conditions of work or in the exercise of the right to self-organization or collective
bargaining.

Q: WHAT IS A STRIKE AREA?

A: It is the establishment, warehouse, depots, plants or offices, including the sites or premises used as
runaway shops of the employer struck against, as well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all points of entrance to and exit from said establishment.

Q: GIVE SOME EXAMPLES OF STRIKES AND EXPLAIN THEIR LEGALITY.

A:

1. Sit-down strike: characterized by a temporary work stoppage of workers who thereupon seize or
occupy property of the employer or refuse to vacate the premises of the employer.

🕮 Illegal – amounts to a criminal act because the employees trespass on their premises of the
employer.

2. Wildcat strike: a work stoppage that violates the labor contract and is not authorized by the union.

🕮 Illegal – invalid because it fails to comply with certain requirements of the law to wit: notice of
strike, vote and report on strike vote.

3. Slowdown: strike on the installment plan; an activity by which workers, without complete stoppage
of work, retard production or their performance of duties and function to compel management to
grant their demands.

🕮 Illegal – employees work on their own terms; while the employees continue to work and remain in
their positions and accept wages paid to them, they at the same time select what part on their
allotted tasks they care to perform on their own volition or refuse openly or secretly.

4. Sympathetic strike: work stoppages of workers of one company to make common cause with
other strikers or other companies without demands or grievances of their own against the employer.

🕮 Illegal – there is no labor dispute between the workers who are joining the strikers and the latter’s
employer.

5. Secondary strikes: work stoppages of workers of one company to exert pressure on their
employer so that the latter will in turn bring pressure upon the employer of another company with
whom another union has a labor dispute.

🕮 Illegal – there is no labor dispute involved.

6. ‘Welga ng Bayan’: a political strike and therefore there is neither a bargaining deadlock nor any
ULP.
 🕮 Illegal – it is a political rally

Q: WHAT ARE THE GROUNDS FOR THE DECLARATION OF STRIKE?

A:
∙ Deadlock in CBA (economic)
∙ ULP (political)

Q: EXPLAIN THE DIFFERENCES BETWEEN AN ECONOMIC STRIKE AND A ULP STRIKE.

A:
AS TO NATURE:
ECONOMIC: voluntary strike because the employee will declare a strike to compel management to
grant its demands

ULP STRIKE: involuntary strike; the labor organization is forced to go on strike because of the ULP
committed against them by the employer. It is an act of self-defense since the employees are being
pushed o the wall and their only remedy is to stage a strike

AS TO WHOM SHALL INITIATE:

ECONOMIC: the collective bargaining agent of the appropriate bargaining unit can declare an
economic strike.
ULP STRIKE: either: collective bargaining agent or the legitimate labor organization in behalf of its
members.
AS TO THE COOLING-OFF PERIOD

ECONOMIC STRIKE: 30 days from notice of strike before the intended date of actual strike subject
to the 7-day strike ban.

ULP STRIKE: 15 days from the filing of the notice of strike.

AS TO THE EXCEPTION TO THE COOLING-OFF PERIOD:

ECONOMIC STRIKE: No exception – mandatory

notice of strike and strike vote maybe dispensed with. They may strike immediately.

ULP STRIKE: The cooling off period may be dispensed with, and the union may take immediate
action in case of dismissal from employment of their officers duly elected in accordance with the
union’s Constitution and by-laws, which may constitute union busting where the existence of the
union is threatened
it must still observe the mandatory 7-day (strike ban) period before it can stage a valid strike

Q: WHAT ARE THE CHARACTERISTICS OF STRIKES?

A:
∙ There is an established relationship between the strikers and the persons against whom the strike
is called.

∙ The relationship is one of employer and employee.

∙ The existence of a dispute between the parties and the utilization by labor of the weapon of
concerted refusal to work as a means of persuading or coercing compliance with the working
men’s demands.

∙ The contention advanced by the workers that although the work ceases, the employment relation
is deemed to continue albeit in a state of belligerent suspension.

∙ There is work stoppage, which is temporary.

∙ The work stoppage is done through the concerted action of the employees.

∙ The striking group is a legitimate labor organization, and in case of bargaining deadlock, is the
employees’ sole bargaining representatives.

Q: WHAT ARE THE TESTS IN DETERMINING THE LEGALITY OF STRIKE?

A:
-Purpose Test: the strike must be due to either bargaining deadlock and/or
-ULP

Q: DISCUSS THE COMPLIANCE REQUIREMENTS ON THE PROCEDURAL AND SUBSTANTIVE

ASPECTS OF THE LAW ON STRIKES.
A:
1. Notice of Strike
2. 30/15-day cooling off period before the intended date of actual strike subject to the 7-day strike
ban cooling off period:

∙ that period of time given by the NCMB to mediate and conciliate the parties
∙ that span of time allotted by law for the parties to settle their disputes in a peaceful manner
before staging a strike or lockout

3. Strike Vote: a requirement wherein the decision to declare a strike must be:

∙ Approved by a majority of the total union membership in the BU concerned

∙ Obtained by secret ballot through meetings or referenda called for the purpose ∙
Its purpose is to ensure that the intended strike is a majority decision
∙ The report on the strike vote must be submitted to DOLE at least 7 days before the intended
strike subject to the cooling off period

4. 7-day Strike Ban: a 7-day waiting period before the date of the purported strike (within which the
union intending to conduct a strike must at least submit a report to DOLE as to the result of the strike
vote) intended to give DOLE an opportunity to verify whether the projected strike really carries the
imprimatur of the majority of the union members in addition to the cooling off period before actual
strike. Cooling off and waiting period may be done simultaneously.

Q: EXPLAIN THE CONCEPT OF MEANS EMPLOYED TEST.

A: It states that a strike may be legal at its inception but eventually be declared illegal if the strike is
accompanied by violence which is widespread, pervasive and adopted as a matter of policy and not
merely violence which is sporadic which normally occur in a strike area