University of San Carlos
Department of Political Science
POSC 4219 (Labor Law and Social Legislation)
By: Atty. Lalaine P. Salve - Esmeralda
MODULE I : FUNDAMENTAL PRINCIPLES OF LABOR
A. BASIC POLICY ON LABOR
a. MAXIMUM AID AND PROTECTION TO LABOR
i. 1987 Constitution
1. Article II, Section 18, Section 20
a. Section 18. The State affirms labor as a primary social
economic force. It shall protect the rights of workers and
promote their welfare.
b. Section 20. The State recognizes the indispensable role of
the private sector, encourages private enterprise, and
provides incentives to needed investments
2. Article III, Sections 1, 4 and 8
a. Section 1. No person shall be deprived of life, liberty, or
property without due process of law, nor shall any person be
denied the equal protection of the laws.
b. Section 4. No law shall be passed abridging the freedom of
speech, of expression, or of the press, or the right of the
people peaceably to assemble and petition the government
for redress of grievances.
c. Section 8. The right of the people, including those employed
in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law
shall not be abridged.
3. Article XIII, Section 3 and 14
a. Section 3. The State shall afford full protection to labor,
local and overseas, organized and unorganized, and
promote full employment and equality of employment
opportunities for all.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in
accordance with law.
They shall be entitled to security of tenure, humane
conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting
their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to
foster industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in
the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
growth.
b. WOMEN, Section 14. The State shall protect working
women by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their welfare
and enable them to realize their full potential in the service
of the nation.
ii. Labor Code of the Philippines, Article 3 and Article 211
1. Article 3. Declaration of basic policy. The State shall afford
protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall assure
the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work.
2. Article 211. Declaration of Policy.
a. It is the policy of the State:
To promote and emphasize the primacy of free collective
bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or
industrial disputes;
To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social
justice and development;
To foster the free and voluntary organization of a strong and
united labor movement;
To promote the enlightenment of workers concerning their
rights and obligations as union members and as employees;
To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
To ensure a stable but dynamic and just industrial peace;
and
To ensure the participation of workers in decision and
policy-making processes affecting their rights, duties and
welfare.
To encourage a truly democratic method of regulating the
relations between the employers and employees by means
of agreements freely entered into through collective
bargaining, no court or administrative agency or official shall
have the power to set or fix wages, rates of pay, hours of
work or other terms and conditions of employment, except
as otherwise provided under this Code. (As amended by
Section 3, Republic Act No. 6715, March 21, 1989)
iii. The Civil Code of the Philippines, Article 1700
1. Article 1700 - The relations between capital and labor are not
merely contractual. They are so impressed with public interest that
labor contracts must yield to the common good. Therefore, such
contracts are subject to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages, working
conditions, hours of labor and similar subjects.
iv. Illustrative Cases
a. Rañises v. Employees Compensation Commission, G.R. No.
141709, [August 16, 2005], 504 PHIL 340-345
b. Travelaire & Tours Corp. v. National Labor Relations
Commission, G.R. No. 131523, [August 20, 1998],
c. Magsaysay Maritime Corporation and / or Cruise Ships
Catering and Services International NV. V. NLRC (Protection
of Labor Not Meant As a Sword to Oppress Employers)
B. A LIBERAL INTERPRETATION OF THE LABOR CODE AND ITS IMPLIMENTING RULES
a. When Liberal Interpretation is Allowed?
i. Article 4 – Construction in Favor of Labor. All doubts in the implementation
and interpretation of the provisions of this Code, including the IRR shall be
resolved in favor of labor
ii. Illustrative Cases:
1. Ditan v. Philippine Overseas Employment Administration
Administrator, G.R. No. 79560, [December 3, 1990], 270 PHIL 47-53
2. Lepanto Consolidated Mining Co. v. Moreno Dumapis, et. al., (G.R.
No. 163210, August 13, 2008)
3. Gandara Mill Supply and Milagros Sy v. NLRC and Silvestre
(Germano, G.R. No. 126703, December 29, 1998)
b. Where the Law is Clear, the Law is to be Applied to the Facts of the Case
i. Fetalino et., al. v. Comelec
C. PRINCIPLE OF NON-DIMINUTION OF BENEFITS
a. Article 100. Labor Code
(to be discussed further in Module IV)
D. MANAGEMENT PREROGATIVE
a. Conditions in the exercise of Management Prerogative
b. Hiring and Firing of Employees
i. The Coca-Cola Export Corporation v. Cagayan, Gr No. 149433, 15
December 2010
c. Discipline of Employees
i. Areno, Jr. v. Skycable PCC-Baguio, G.R. No. 180302, [February 5, 2010]
d. Transfer of Personnel
i. Herida v. F&C Pawnshop and Jewelry Store, GR. No. 172601, 16 April 2009
ii. Philippine Telegraph and Telephone Corp. v. Laplana, G.R. No. 76645, [July
23, 1991] – Delbert
e. Productivity Standards
i. Aliling v. Feliciano, G.R. No. 185829, [April 25, 2012]
f. Granting Bonus
i. Traders Royal Bank v. NLRC and Traders Royal Bank Employees Union, G.R.
No. 88168, [August 30, 1990], 267 PHIL 321-325)
g. Change of Working Hours
i. Unicorn Safety Glass Inc. v. Basarte et al, G.R. No. 154689, [November 25,
2004], 486 PHIL 493-508)
h. Rules of Marriage
i. Prohibition on Marriage to Employees of Competitor Companies
1. Duncan Association of Detailman-PTGWO v. Glaxo Wellcome
Philippines, Inc., G.R. No. 162994, [September 17, 2004],
ii. Prohibition on Marriage to Co-Employees
1. Spouses Osea v. Ambrosio, G.R. No. 162774, [April 7, 2006]
