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Labor Relations

Labor Relations
University of the Cordilleras
College of Law
Constitutional Mandates on Labor,
Labor Law
Labor Legislation, Social Legislation
What is Labor?
What is Labor?
As an act: Exertion by
human beings of hysical or
mental e!orts, or both,
towards the roduction of
goods and services"
As a sector of society: #hat
sector or grou in a society,
which derives its livelihood
chie$y from rendition of wor%
or services in exchange for
comensation under
managerial direction
(Mendoza, 2001).
&efers to wor%ers, whether
agricultural or non'
Mandates on
Mandates on
The State shall protect and
promote the interests of the
Filipino Laborer:
Art. II, Sec. 9. #he State shall
romote a (ust and dynamic
social order that will ensure
the roserity and
indeendence of the nation
and free the eole from
overty through olicies that
rovide ade)uate social
services, romote full
emloyment, a rising standard
of living and imroved )uality
of life for all"
Art. II, Sec. 18. #he State
a*rms labor as a rimary
social economic force" +t shall
rotect the rights, of wor%ers
and romote their welfare"
Mandates on
Mandates on
The State shall protect and promote the
interests of the Filipino Laborer:
Art. XII, Sec. 12. #he State shall
romote the referential use of ,iliino
labor, domestic materials and locally
roduced goods, and adot measures
that hel ma%e them cometitive"

Art XIII, Sec. 14. #he State shall
rotect women by roviding safe and
healthful wor%ing conditions, ta%ing into
account their maternal functions, and
such facilities and oortunities that will
enhance their welfare and enable them to
reali-e their full otential in the service of
the nation"

Art. XV, Sec. 8. #he State shall, from
time to time, review to ugrade the
ensions and other bene.ts due to
retirees of both the government and the
rivate sectors"
Mandates on
Mandates on
&ights of /or%ers
Art. Ill, Sec. 8. #he right of the
eole, including those emloyed
in the ublic and rivate sectors,
to form unions, associations, or
societies for uroses not contrary
to law, shall not be abridged"
0formation of labor organi-ations1
Art. Ill, Sec. 18(2). 2o
involuntary servitude in any form
shall exist excet as a unishment
for a crime whereof the arty shall
have been duly convicted"
Mandates on
Mandates on
rotection to Labor !la"se
Art. XIII, Sec. 3 #he State
shall a!ord full rotection to
labor, local and overseas,
organi-ed and unorgani-ed,
and romote full emloyment
and e)uality of emloyment
oortunities for all"

+t shall guarantee the rights of
all wor%ers to self'
organi-ation, collective
bargaining and negotiations,
and eaceful concerted
activities, including the right to
stri%e in accordance with law"
#hey shall be entitled to
security of tenure, humane
conditions of wor%, and a living
wage" #hey shall also
articiate in olicy and
decision'ma%ing rocess
a!ecting their rights and
bene.ts as may be rovided
by law"
Participation in
Participation in
Policy and
Policy and
Decision Making
Decision Making
3hrase included in the 4567
constitution to highlight
wor%er8s articiation in
Added in the Labor Code
Article :47, ;eclaration of 3olicy
Article :<4, Exclusive =argaining
&eresentation and /or%er8s
3articiation in 3olicy and
Mandates on
Mandates on
rotection to Labor !la"se
Art. XIII, Sec. 3 , cont.
#he State shall romote the
rincile of shared
resonsibility between wor%ers
and emloyers and the
referential use of voluntary
modes in settling disutes,
including conciliation, and
shall enforce their mutual
comliance therewith to foster
industrial eace"
#he State shall regulate the
relations between wor%ers and
emloyers, recogni-ing the
right of labor to its (ust share
in the fruits of roduction> and
the right of enterrises to
reasonable returns of
investments, and to exansion
and growth"
Commit Art. !!!,
Commit Art. !!!,
"ec. # to memory$
"ec. # to memory$
;e.nes rights of wor%ers under
Labor Standards and Labor
Under Labor Standards
Security of #enure9
Living wage9
Share in the fruits of roduction9
?umane conditions of wor%"
Under Labor &elations
Collective bargaining and
3eaceful concerted activities,
including stri%e9
3articiation in olicy and
decision'ma%ing rocesses"
"ocial, Labor and
"ocial, Labor and
Constitutional rovisions on
labor are not self'executory,
hence the need for Social
Legislation, Labor Legislation
and /elfare Legislation
"ocial Legislation ' Laws
that rovide articular %inds
of rotection or bene.ts to
society or segments thereof
in furtherance of social
Labor Legislation '
Statutes, regulations and
(urisrudence governing the
relations between caital and
labor" +t rovides for certain
emloyment standards and a
legal framewor% for
negotiating, ad(usting and
administering those
standards and other
incidents of emloyment"
Wel%are Legislation '
3rovides for the minimum
economic security, of the
wor%er and his family in case,
of loss of earnings due to
death, old age, disability,
dismissal, in(ury or disease"
"ocial Legislation
"ocial Legislation
and Labor
and Labor
Labor La&,
Labor La&,
#he law governing the rights
and duties of emloyers and
emloyees with resect to
Labor Standards and Labor
Labor "tandards La& deals
with the minimum standards
as to wages, hours of wor%
and other terms and
conditions of emloyment
that emloyers must rovide
their emloyees"
Labor Relations La&
de.nes the status, rights and
duties as well as the
institutional mechanisms
that govern the individual
and collective interactions
between emloyers,
emloyees and their
(he Philippine
(he Philippine
Labor Code, and
Labor Code, and
)ther La&s
)ther La&s
3residential ;ecree 2o" @@:
;eals with Labor Standards and
Labor &elations
=ecame e!ective 2ovember 4,
Secial Laws:
Laws on Social Security 0SSS
Law, AS+S Law, Limited
3ortability Law 0&A 7<551
2ational ?ealth +nsurance Act
3aternity Leave Act
&etirement 3ay Law
?ome Mutual ;eveloment
,und Law
Anti'Sexual ?arassment Act
Anti'Child Labor Act
4Bth Month 3ay Law
Migrant /or%ers and Cverseas
,iliinos Act of 455D 0&"A" 2o"
6E@:, as amended by &A
Exanded Comrehensive
Agrarian &eform Law
Magna Carta for 3ublic ?ealth
(he Philippine
(he Philippine
Labor Code, and
Labor Code, and
)ther La&s
)ther La&s
Labor'related rovisions in
Cther Laws
Civil Code
Art. *+,,. (he relation
bet&een capital and labor
are not merely contractual.
(hey are so impressed &ith
public interest that labor
contracts must yield to the
common good. (here%ore,
such contracts are sub-ect
to the special la&s on labor
unions, collecti.e
bargaining, strikes and
lockouts, closed shop,
&ages, &orking conditions,
hours o% labor and similar
Art" 47E4" 2either caital nor
labor shall act oressively
against the other, or imair the
interest or convenience of the
Art. *+,/. !n case o% doubt,
all labor legislations and all
labor contracts shall be
construed in %a.or o% the
sa%ety and decent %or
the laborer.
Art" 47EB" 2o contract which
ractically amounts to
involuntary servitude, under
any guise whatsoever, shall be
(he Philippine
(he Philippine
Labor Code, and
Labor Code, and
)ther La&s
)ther La&s
Labor'related rovisions in
Cther Laws
&evised 3enal Code
Art" :65" ,ormation,
maintenance and rohibition of
combination of caital or labor
through violence or threats" F
#he enalty of arresto mayor
and a .ne not exceeding BEE
esos shall be imosed uon
any erson who, for the
urose of organi-ing,
maintaining or reventing
coalitions of caital or labor,
stri%e of laborers or loc%'out of
emloyees, shall emloy
violence or threats in such a
degree as to comel or force
the laborers or emloyers in
the free and legal exercise of
their industry or wor%, if the
act shall not constitute a more
serious o!ense in accordance
with the rovisions of this
(he Aim and 0asis
(he Aim and 0asis
o% Labor La&s
o% Labor La&s
Attainment of Social Gustice
=alance the interest of labor and
caital 0eliminate oression1
Labor is a!orded a greater
measure of rotection
#here is greater suly of labor
than demand for their services9
#hose who have less in life should
have more in law9
#he need for emloyment by
labor comes from vital, and even
deserate necessity 0survival19
"ocial 1ustice
"ocial 1ustice
HSocial (ustice is I the
humani-ation of laws and the
e)uali-ation of social and
economic forces by the State
so that (ustice in its rational
and ob(ectively secular
concetion may at least be
aroximated" Social (ustice
means the 3&CMC#+C2 C,
#?E /EL,A&E of all eole,
the adotion by the
government of measures
calculated to ensure economic
stability of all the comonent
elements of the society
through the maintenance of
roer economic and social
e)uilibrium in the
interrelations of' the members
of the community,
constitutionally, through the
adotion of measures, legally
(, or extra'
constitutionally, through the
exercise of owers underlying
the existence of all
governments, on the time'
honored rincile of sal"s
pop"li est s"prema le#"J
2Calalang .. Williams, 3o.
4+5,,, December /, *64,7.
0asic Principles
0asic Principles
3reliminary ;iscussions on the
Labor Code
What are the basic
What are the basic
principles in the
principles in the
constitution and labor8
constitution and labor8
related la&s on
related la&s on
protection to labor?
protection to labor?
#he state shall a!ord full
rotection to labor, romote
full emloyment, e)ual wor%
oortunities without bias or
discrimination, regulate the
relations of emloyers and
emloyees, and assure
wor%ers rights 0refer to
protection to labor cla"se
$rt. %&&&, Sec. ', 1()* !onst"
K Art" B, Labor Code19
#he relation of caital and
labor are imressed with
ublic interest, hence
emloyment contracts are
not ordinary contracts 0$rt.
1*00, +!!19
What are the basic
What are the basic
principles in the
principles in the
constitution and labor8
constitution and labor8
related la&s on
related la&s on
protection to labor?
protection to labor?
+n case of doubt or
ambiguity, labor laws and
rules are to be construed in
favor of labor 0$rt. ,, Labor
!ode, $rt. 1*02, !i-il !ode1
+, #?E&E +S ;CU=# as to the
meaning of the legal and
contractual rovision, the above'
mentioned alies"
+, #?E 3&CL+S+C2 +S CLEA& A2;
U2AM=+AUCUS, it must be
alied in accordance with its
exress terms" 0Meralco v" 2L&C,
A& 2o" 767<B, Guly 4:, 45651"
#he law also recogni-es that
management has rights which
are also entitled to resect and
enforcement in the interest of
fair lay 0St" Lu%e>s Medical
Center Emloyee>s Assoc, v"
2L&C, A& 2o" 4<:EDB, March 7,
Why the
Why the
pre%erence %or
pre%erence %or
labor capital?
labor capital?
Comes from
ac%nowledgement that
caital wields more ower
than labor9
0Sanche- v" ?arry Lyons
Construction +nc", A& 2o" L'
:775, Cctober 46, 45DE1"
#here is greater suly than
demand for labor9
#hose who have less in life
should have more in law9 and
#he need for emloyment by
labor comes from vital, and even
deserate necessity 0survival1
(o &hom does the
(o &hom does the
Labor Code apply?
Labor Code apply?
Aeneral &ule: #he Code
alies to all wor%ers, whether
agricultural or non'agricultural,
including emloyees in a
government cororation
incororated under the
cororation code9
Aovernment emloyees9
Emloyees of government
Cororations created by
secial or original charter9
,oreign governments9
+nternational Agencies,
emloyees of
intergovernmental or
international organi-ations9
Cororate o*cersM+ntra'
cororate disutes which
fall under 3; 5E:'A and
now fall under the
(urisdiction of, the &egular
Courts ursuant to the
Securities &egulation Code9
Local water districts excet
where 2L&C (urisdiction is
Aovernment emloyees9
Emloyees of government
Cororations created by
secial or original charter
0Guco v" 2L&C, A& 2o" 564E7,
August 46, 455719
,oreign governments
0GUSMAA'3hiliines v" 2L&C,
A& 2o" 4E664B, ;ecember
4D, 455@19
+nternational Agencies 0Lasco
v" U2&,2&E, A& 2os"
4E5E5D'4E54E7, ,ebruary
:B, 455D1, emloyees of
intergovernmental or
international organi-ations
0SEA,;EC'AN; v" 2L&C, A&
2o" 6<77B, ,ebruary 4@,
Cororate o*cers M +ntra'
cororate disutes which fall
under 3; 5E:'A and now fall
under the (urisdiction of, the
&egular Courts ursuant to
the Securities &egulation
Code 02acil v" +=C, A& 2o"
4@@7<7, March :4, :EE:19
Local water districts 0#an(ay
/ater ;istrict v" Aabaton, A&
2os" <B7@: and 6@BEE, 47
Aril 45651 excet where
2L&C (urisdiction is invo%ed
0Oamboanga City /ater
;istrict v" =uat, A& 2o"
4E@B65, May :7, 455@1"
Who is a
Who is a
Article 4B P A wor%er is any
member of the labor force,
whether emloyed or
A erson who wor%s for an
emloyer for a fee9 a erson
wor%ing for salary or wages"
2ote the term emloyee
under Article :46 of the
Labor Code: 2ot limited to
the emloyees of a articular
emloyer, it shall include any
individual whose wor% has
ceased as a result of or in
connection with any current
labor disute or because of
any unfair labor ractice if he
has not obtained any other
substantially e)uivalent or
regular emloyment"
Protection to labor
Protection to labor
should not come at the
should not come at the
e:pense o% oppressing
e:pense o% oppressing
Law recogni-es management
rights" #he emloyer has the
right to
Conduct business9
3rescribe rules9
Select and hire emloyees9
#ransfer or discharge
;isciline of emloyees, and
&eturn of investment and
exansion of business"
."ral /an0 of !antilan " -.
1"l-e, 2. +o. 13(*40,
Febr"ar5 2*, 200*.
Under the doctrine of
mana6ement prero6ati-e, every
emloyer has the inherent right
to regulate, according to his own
discretion and (udgment, all
asects of emloyment,
including hiring, wor%Q
assignments, wor%ing methods,
the time, lace and manner of
wor%, wor% suervision, transfer
of emloyees, lay'o! of wor%ers,
and disciline, dismissal, and
recall of emloyees
Mendoza -. ."ral /an0 of
L"cban, 2. +o. 144,21, 1"l5
*, 200,.
Management rerogatives,
however, are sub(ect to
limitations rovided by
contract or collective bargaining
agreements and
general rinciles of fair lay and
;ie&points on
;ie&points on
Labor Relations
Labor Relations
#he /hys and ?ows
"tate Policy on
"tate Policy on
Labor Relations
Labor Relations
Article :47, Labor Code
3romote and emhasi-e the
rimacy of free collective
bargaining and negotiations,
including voluntary arbitration,
mediation and conciliation, as
modes of settling labor or
industrial disutes9
3romote free trade unionism as
an instrument for the
enhancement of democracy and
the romotion of social (ustice
and develoment9
,oster the free and voluntary
organi-ation of a strong and
united labor movement9
3romote the enlightenment of
wor%ers concerning their rights
and obligations as union
members and as emloyees9
"tate Policy on
"tate Policy on
Labor Relations
Labor Relations
Article :47, Labor Code
3rovide an ade)uate
administrative machinery for the
exeditious settlement of labor
or industrial disutes9
Ensure a stable but dynamic and
(ust industrial eace9 and
Ensure the articiation of
wor%ers in decision and olicy'
ma%ing rocesses a!ecting their
rights, duties and welfare"
3rohibit courts or administrative
agencies or o*cials from setting
or .xing wages, rates of ay,
hours of wor% or other terms and
conditions of emloyment,
excet as otherwise rovided
under the Labor Code"
"ocial 1ustice
"ocial 1ustice
"el% )rgani<ation
"el% )rgani<ation
/or%ers organi-e as a union
or some other form of
association 0registered or
E!ect of registration with the
State: Ac)uisition of legally
demandable rights, e"g" right
to demand collective
Crgani-ation must have rules
and mechanisms that resect
member rights
2o emloyer in$uence or
interference 0See Article :<4,
Labor Code1
Why Workers
Why Workers
Self Advancement
Gob Security
Uholding the rule of law
over arbitrary exercise of
ower by caital
3rovide emloyees a sense of
articiation in the
"el% )rgani<ation
"el% )rgani<ation
#here can be many labor
organi-ations in the
wor%lace, but
Cnly one recogni-ed
reresentative for wor%ers in
Collective =argaining
Selected by the wor%ers
themselves by way of election
0with or without intervention of
the government1
Who may e:ercise
Who may e:ercise
right to sel%8
right to sel%8
All ersons emloyed in
commercial, industrial and in
religious, charitable, medical
or educational institutions
0ro.t or non'ro.t1
+ncludes the right to
Labor organi-ations of their own
3resentation of roosals and
counter'roosals by the
+f caital and labor agree on
substantially all oints, a
labor contract is forged
0Collective =argaining
+f both arties do not agree
on material oints, this
results in a deadloc%
3arties are obliged to avoid or
brea% the imasse
,ailure to resolve a deadloc%
may result in wor% stoage
/hile a legal right, stri%e or
loc%out is not an ideal
solution to comel a arty to
agree to a roosal
Considered as measures of
last resort
Stri%es and loc%outs are
heavily regulated
Manner of imlementation
Liolation of established rules will
merit sanctions 0admin, civil and
3arties are allowed to
introduce means and
methods that will exedite
Sub(ect to comliance to legal
3arties are rimarily
resonsible for dealing with
roblems arising out of their
relations 0+nter'arty
Loluntary modes of settling
disutes are referred over
comulsory rocesses
Arievance machinery: +n'house
roblem solving structure
State stes in only when
3arties fail to agree
&ights are violated
SSS 7mplo5ees $ssociation
-s. !$, 1*4 S!.$ 3)3: 8#he
rincile behind labor
unionism in rivate industry
is that industrial eace
cannot be secured through
comulsion by law" &elations
between rivate emloyers
and their emloyees rest on
an essentially voluntary
basis" I the terms and
conditions of emloyment in
the unioni-ed rivate sector
are settled through the
rocess of collective
Categories o%
Categories o%
Managerial emloyees
Suervisory emloyees
&an%'and'.le emloyees
>:istence o% >r8>e
>:istence o% >r8>e
Relationship is
Relationship is
;ital in Labor
;ital in Labor
+f there is no such
relationshi, there is no basis
for exercising the right of
self'organi-ation for uroses
of collective bargaining"
2ote also that Labor Arbiters
cannot exercise (urisdiction
where Er'Ee &elationshi
does not exist" 0sub(" to
,our',old #est
the selection and engagement
of the emloyee9
the ayment of wages9
the ower of dismissal9 and
the ower to control the
emloyee8s conduct, or the so'
called Hcontrol test"J
#wo'tiered test of
emloyment relation shi
Control test P the emloyer8s
ower to direct the emloyee
0the manner, means and
methods1 by which wor% is
Economic reality test P
economic reality of the
relationshi9 the )uestion of
economic deendency of the
wor%er on his emloyer" 0&ead
Cro-co vs" CA, A& 4DD:E7,
Aril :5, :EED1
>:istence o% >r8>e
>:istence o% >r8>e
Relationship in
Relationship in
the %ollo&ing
the %ollo&ing
A stiulation stating
exressly that there is no Er'
Ee relationshi is not
controlling 0Chave- vs" 2L&C,
A& 2o" 4@<DBE, Gan" :EED1
Geeney and taxi drivers
03aguio #ransort Cor" vs"
2L&C A& 2o" 445DEE, August
=us, auto'calesa drivers 0&"
#ransort Cor" vs" E(andra,
A& 2o" 4@6DE6, May :EE@1
,ishermen 0&uga vs" 2L&C,
Gan" 455E1
Lawyers, doctors, nurses,
dentists, ublic relations
ractioners, other
Emloyees of cooeratives
+nsurance agents 0salaried1
3o >r8>e
3o >r8>e
Relationship in
Relationship in
the %ollo&ing
the %ollo&ing
Commission salesmen
Agents of rinicial 0who are
not emloyees in other
/or%ing scholars 0See
Section 4@, &ule R, =oo% +++,
+&&, Labor Code1
Lisiting 3hysicians
+ndeendent contractors
Labor disutes: +ncludes any
controversy or matter
concerning terms or
conditions of emloyment or
the association or
reresentation of ersons in
negotiating, .xing,
maintaining changing or
arranging the terms and
conditions of emloyment,
regardless of whether the
disutants stand in the
roximate relation of
emloyer and emloyee"
Labor Disputes
Labor Disputes
2ature: arises from Er'Ee
relationshi, regardless of
whether the disutants stand
in the roximate relation of
emloyer and emloyee9
SMCEU'3#A/C vs" =ersamira K
SMC, A& 2o" 677EE, Gune 455E1
+nvolves issue of SMC8s exclusion
of temorary, robationary K
contractual emloyees in scoe of
C=A with union
Sub(ect Matter
#erms and conditions of
Association or &eresentation of
Labor Disputes,
Labor Disputes,
/or%ing Conditions
&elations ;isutes
Crgani-ational rightsMUL3
Contract administration
3ersonnel olicy
Emloyment tenure disutes Labor Labor
Arievance rocedure P C=A'
rescribed, in'house
mechanism for addressing
Conciliation P involves third
erson who meets with both
arties and, by assuaging
hurt feelings and cooling
temers, aids in reaching
Mediation P third erson
o!ers suggested solutions to
Arbitration P disute is
submitted to imartial third
erson who renders decision
based on evidence, law and
(urisrudence" ;ecision is
Loluntary P by agreement of
Comulsory P directed by law"
3rimarily done by labor arbiters
of the 2L&C Labor Labor
Crder P disute arises from
concern uncovered by the
exercise of
enforcementMvisitorial ower
of SCLE, or ad(udicatory
owers of the ;CLE &egional
;irectors 0Articles 4:6, 4:5,
Labor Code1
+n case of labor disutes that
may a!ect an industry
indisensable to the national
interest, the following aly:
Assumtion of (urisdiction by
Certi.cation to the 2L&C for
comulsory arbitration
(he 3ational
(he 3ational
Labor Relations
Labor Relations
Gurisdiction, Case ,low, Aeals,
(he 3ational
(he 3ational
Labor Relations
Labor Relations
3recursor: Court of +ndustrial
2L&C was created by the
Labor Code
attached to the ;CLE
Under EC :E@, s" :EED, ;CLE
exercises administrative
suervision over the commission
Under &A 5B@7, several changes
to the comosition of the
divisions, ran% e)uivalence, and
reverted to the old version of
2L&C8s attachment to ;CLE
0rogram and olicy
E)ual reresentation from
wor%ers, emloyers K ublic
1urisdiction o%
1urisdiction o%
Labor Arbiters
Labor Arbiters
Criginal and exclusive
(urisdiction to hear and
decide the following cases
involving all wor%ers,
whether agricultural or non'
agricultural 0Art" ::B, LC,
&ule L Section 4, :E44 2L&C
Unfair labor ractice cases9
UL3 Means QUnfair labor
racticeQ means any unfair
labor ractice as exressly
de.ned by the Code 0Art"
:460S1, Art" :D@, Art" :DD1"
#ermination disutes9
+f accomanied with a claim for
&einstatement, those cases
that wor%ers may .le involving
wages, rates of ay, hours of
wor% and other terms and
conditions of emloyment9
(he 3ational
(he 3ational
Labor Relations
Labor Relations
2L&C exercises ad(udicatory
owers and other functions
through its divisions 0not the
individual commissioners19
En banc decisions ertain
only to
3romulgation of rules governing
hearing and disosition of cases
in the divisions 0e"g", :E44 2L&C
&ecommending Labor Arbiters to
the 3resident
Allowing a division to hear and
decide a case under the
(urisdiction of another division
1urisdiction o%
1urisdiction o%
Labor Arbiters
Labor Arbiters
Claims for actual, moral,
exemlary and other forms
of ;amages arising from
the emloyer'emloyee
Cases arising from any
Liolation of Article :7E of
this Code, including
)uestions involving the
legality of stri%es and
loc%outs9 and
Excet claims for
Emloyees Comensation,
Social Security, Medicare
and maternity bene.ts, all
other Claims arising from
relations, including those of
ersons in domestic or
household service, involving
an amount exceeding .ve
thousand esos 03D,EEE"EE1
regardless of whether
accomanied with a claim
for reinstatement 0Article
::B, Labor Code, as
1urisdiction o%
1urisdiction o%
Labor Arbiters
Labor Arbiters
Criginal and exclusive
(urisdiction over money
claims arising out of
relationshi or by virtue of
any law or contract,
involving ,iliino wor%ers
for Cverseas deloyment,
including claims for actual,
moral, exemlary and other
forms of damages 0Section
4E, &eublic Act 2o" 6E@:,
as amended by &eublic
Act 2o" 4EE::1"
/age distortion disutes in
unorgani-ed establishments
not voluntarily settled by
the arties ursuant to
&eublic Act 2o" <7:7"
Enforcement of comromise
agreements when there is
non'comliance by any of
the arties or if there is
rima facie evidence that
the settlement was
obtained through fraud,
misreresentation or
coercion 0Article :BB, Labor
Code, as amended1"
Cther cases as may be
rovided by law"
#he (urisdiction of labor
arbiters, as well as of the
2L&C, is limited to disutes
arising from an emloyer'
emloyee relationshi which
can only be resolved by
reference to the Labor Code,
other labor statutes, or their
collective bargaining
agreement" U'=ix>s comlaint
was one to collect sum of
money based on civil laws P
on obligations and contract,
not to enforce rights under
the Labor Code, other labor
statutes, or the collective
bargaining agreement" (9:/i#
!orporation, et al. -s. ;alerie
$nne <. <ollero, 2... +o.
1**3,*, =ctober '1, 200))
#he (urisdiction of labor
courts extends only to cases
where an emloyer'emloyee
relationshi exists" (1a6"ar
Sec"rit5 > &n-esti6ation
$6enc5 -s. .odolfo Sales, et.
al., 2... +o. 132,20, $pril
22, 200))
Excetion to the rule that Er'
Ee relationshi is necessary
for Labor Arbiters to ac)uire
H#he (urisdiction of Labor
Arbiters is not limited to claims
arising from Emloyer'Emloyee
relationshis under Sec" 4E of &A
6E@:, which cover money claims
arising out of an emloyer'
emloyee relationshi or by
virtue of any law or contract
involving ,iliino wor%ers for
overseas deloyment, including
claims forIdamages"J Santiago
vs" C, Shar Crew Management,
+nc" 0A& 2o" 4<:@45, Guly :EE71
Cororate C*cers
Nacpil vs. IBC (! No.
144"#", $arc% 21, 2&&2)
' C*cers designated by the
board are cororate o*cers
(r)*ential Ban+ an* ,r)st
Co-pan. (! No. 141&93,
/e0. 2&, 2&&1) ' Cne rising
from the ran%s is not a mere
cororate o*cer
!)ral Ban+ o1 Coron vs.
Cortes, (! No. 1#4888,
2ec. #, 2&&#) P A cororate
o*cer who is also an
emloyee may .le an illegal
dismissal case with the labor
See also
=0ol -s. Slimmers ?orld
&nternational (2. +o.
1301,3, @ecember 11, 200()
2omez -s. +=!
@e-elopment and
Mana6ement !orporation
(2. +o. 1*,0,,, +o-ember
2*, 200()
$tt5. ;ir6ilio .. 2arcia -s.
7astern Telecomm"nications
hilippines (2. +o. 1*'114,
$pril 13, 200()
!enato !eal vs. San3)
(%ilippines, Inc. et al.,
.!. No. 1#8"4",
Case may be .led in the &A=
having (urisdiction over the
wor%lace of comlainant or
/here two or more &A=s
have (urisdiction, venue
resides in the &A= which .rst
ac)uired it
2o ob(ection to venue before
the .ling of osition aers,
issue is deemed waived
May be by written
agreement, or by motion for
meritorious cases
Ction of the wor%er
Case Alo&, RA0
Case Alo&, RA0
/,** 3LRC Rules
/,** 3LRC Rules
o% Procedure
o% Procedure
Signi.cant changes from :EED
&ules 0as discussed by Atty"
&uben ;el &osario1
4" Service o1 Notices,
!esol)tions, 6r*ers an*
2ecisions 0. (rivate
Co)rier (Section 4, !)le
III). Under the :EED &ules,
service of notices such as
summons, notice of
conference, resolutions, orders
and decisions is made through
the 2L&C8s messenger or sent
by registered mail only" +n the
:E44 &ules, service can be
done by rivate courier also"
:" A)t%orit. o1 t%e 7a0or
Ar0itration Associate to
Con*)ct Conciliation an*
$e*iation Con1erence
(Section 8a, !)le V). #he
:EED &ules state that Hthe
Labor Arbiter shall ersonally
reside over and ta%e full
control of the roceedingsJ"
#he :E44 &ules state that the
Labor Arbiter may be assisted
by the Labor Arbitration
Associate in the conduct of the
/,** 3LRC Rules
/,** 3LRC Rules
o% Procedure
o% Procedure
B" &e'.ling of a ;ismissed
Comlaint ;ue to 2on'
Aearance of Comlainant
0Seafarer1 0Section 4E, &ule L1"
Under both the :EED and :E44
2L&C &ules, the Labor Arbiter
can dismiss the comlaint if
the seafarer fails to aear,
desite due notice, during the
two 0:1 settings for mandatory
conciliation and mediation
conference" #he dismissal
however is without re(udice
which means that the seafarer
can re'.le his comlaint"
?owever, under the :EED
2L&C &ules, the seafarer
cannot re'.le the case after it
has been dismissed for the
:nd time on the ground of
non'aearance during the
mandatory conferences"
#his limitation of H:nd timeJ is
not resent under the :E44
2L&C &ules" +t would aear
that the seafarer can %ee
.ling a new case desite
dismissals of his revious
cases due to non'aearance
at the mandatory conferences"
@" ,ailure to Attend Mandatory
Conferences by &esondents
0Manning Agents1
+n case of non'aearance by
the resondent 0manning
agent1 during the .rst
scheduled conference, the
second conference as
scheduled in the summons
shall roceed" ?owever, if the
resondent 0manning agent1
still fails to aear at the
second conference desite
being duly served with
summons, heMshe shall be
considered to have waived
hisMher right to .le osition
#he above was not in the :EED
2L&C &ules and is new in the
:E44 2L&C &ules"
+t is thus imortant to ensure
attendance at the mandatory
/,** 3LRC Rules
/,** 3LRC Rules
o% Procedure
o% Procedure
D" &emedy of the &esondents
0Manning Agents1 /hen
;eclared #o ?ave /aived #heir
&ight to ,ile 3osition 3aer
0Section :E, &ule L1
+n instances where a arty is
declared to have waived
hisMher right to .le osition
aer, the :E44 2L&C &ules
have rovided a remedy" #he
:E44 2L&C &ules states: A
arty declared to have waived
hisMher right to .le osition
aer may, at any time after
notice thereof and before a
case is submitted for decision,
.le a motion under oath to set
aside the order of waiver uon
roer showing that failure to
aear during the hearings
was due to ( and
meritorious grounds" +f said
motion is granted, the
manning agents can now .le
the necessary 3osition 3aer"
<" Limited 3eriod to Conduct
?earing or Clari.catory
Conference 0Section 4@a, &ule
#he concet of hearing or
clari.catory conference
referred to in this rule is
indeendent of and di!erent
from the mediation or
conciliation hearing wherein
the seafarer and the manning
agents are encouraged to
enter into an amicable
settlement" #he clari.catory
hearing is conducted after the
submission of the osition
=rie$y stated, a clari.catory
hearing is rarely held and it is
discretionary on the art of the
Labor Arbiter" As the term
connotes, its urose is to as%
the arties clari.catory
)uestions to further elicit facts
or information which will
include obtaining relevant
documentary evidence from
any arty or witness" "
#he hearing or clari.catory
conference shall be terminated
within thirty 0BE1 calendar
days from the date of the
initial clari.catory conference"
#he eriod now is shorter as it
was ninety 05E1 calendar days
under the :EED 2L&C &ules"
+n any event, under both the
:EED and :E44 &ules, cases
involving overseas ,iliino
wor%ers 0including seafarers1
the mandatory conciliation and
mediation conferences and
clari.catory conferences must
be terminated within sixty 0<E1
days from the ac)uisition of
(urisdiction by the Labor
Arbiter over the erson of the
/,** 3LRC Rules
/,** 3LRC Rules
o% Procedure
o% Procedure
7" 3rocedure for &ecovery of
Amount 3aid to the Seafarer
;uring Execution 3roceedings
0Section 4@, &ule R+1
=y way of brief bac%ground, if
the case is lost in the Labor
Arbiter level, the manning
agentsMrincials can .le an
aeal before the Commission
level to assail the Labor
Arbiter8s decision" +f the aeal
is dismissed, the remedy of
the manning agents is to .le a
Motion for &econsideration"
#he denial of the motion will
render the Labor Arbiter8s
decision .nal and executory"
Conse)uently, at this stage,
manning agents and their
rincials are re)uired to ay
the seafarer based on said
.nal award"
+n the meantime, the case can
still continue because the
manning agents has the
remedy of elevating the
matter to the Court of Aeals
and eventually, to the
Sureme Court"
+n some cases, the Court of
Aeals andMor the Sureme
Court would either reverse
0the seafarer is not entitled at
all to his claim1 or modify 0the
(udgment award is reduced1
the decision of the 2L&C"
+n case of reversal or
modi.cation by the Court of
Aeals or Sureme Court of
the Labor Arbiter8s decision,
the next recourse of the
manning agents is to recover
the amount it has reviously
aid to the seafarer"
#he resent :E44 2L&C &ules
of 3rocedure exlicitly
rovides for the stes on how
to recover the said amount
from the seafarer" Under the
:E44 2L&C &ules the Labor
Arbiters of the 2L&C can issue
orders of restitution to enable
the manning agents to recover
the amount they reviously
aid to the claimants as a
result of the reversed or
modi.ed decisions of the
2L&C" #his rovision was not
resent under the :EED 2L&C
/,** 3LRC Rules
/,** 3LRC Rules
o% Procedure
o% Procedure
6" Extraordinary &emedy
Available to the Manning
AgentsM3rincials Cther #han
Aeal 0&ule R++1
Cne of, if not, the most critical
stage in 2L&C roceedings is
during execution of the
(udgment award" +t is at this
oint that the seafarer can
now collect from the manning
agents or the bonding
comany the amount
mentioned in the Labor
Arbiter8s decision"
#he writ of execution is the
basic document which would
emower the 2L&C Sheri! to
collect the (udgment award
from manning agent which is
the losing arty" Under the
:EED 2L&C &ules of 3rocedure,
once the writ is issued, the
manning agents are already
helless to sto the 2L&C
Sheri! from enforcing the
(udgment award unless of
course, and this is very rare,
the Court of Aeals issues a
#emorary &estraining Crder
andMor /rit of +n(unction"
The 2011 +L.! ."les of
roced"re pro-ides for a
speciAc remed5. &t is not in the
form of an appeal b"t a
-eriAed petition Bith the +L.!
!ommission the p"rpose of
Bhich is to ann"l or modif5 the
order of the Labor $rbiter
iss"in6 the Brit of e#ec"tion.
#he immediate e!ect of the
.ling of the said veri.ed
3etition is that the 2L&C
Sheri! cannot, in the
meantime, enforce the writ of
execution or the 2L&C Sheri!,
in layman8s term, cannot
collect the amount stated in
the decision
from the manning agents or
from the bonding comany"
3lease note that the mere
.ling of the veri.ed 3etition
will revent the ban% of either
the manning agents or the
bonding comany from
releasing the garnished
amount to the seafarer within
.fteen 04D1 calendar days from
the .ling of the 3etition" Cf
course, the eriod can be
longer if the 2L&C issues a
#emorary &estraining Crder
or /rit of 3reliminary
+n(unction which has a lifetime
of twenty 0:E1 or sixty 0<E1
days, resectively" +t can also
go beyond said eriod if the
2L&C issues a .nal in(unction"
?owever, the #emorary
&estraining Crder or the /rit
of 3reliminary +n(unction only
becomes e!ective uon
osting by the manning agents
of a cash bond, not surety
bond, amounting to
3hDE,EEE"EE or a higher
amount as may be re)uired by
the 2L&C"
+mortant 2ote: /hile the
extraordinary remedy
described above can be
availed of during execution
roceedings, &ule R++ of the
:E44 2L&C &ules can be
availed of by Hany arty
aggrieved by an order or
resolution of the Labor
ArbiterJ" +t is thus not con.ned
to (ust execution roceedings
but on all orders or resolutions
of the Labor Arbiter" ,or
examle, if the manning agent
.les a Motion to ;ismiss on
the ground that the seafarer
has already been aid his
disability bene.ts and it is
denied by the Labor Arbiter,
the manning agent can avail of
the extraordinary remedy
under &ule R++ of the :E44
2L&C &ules"
#he above are the currently
erceived signi.cant changes
but we are continually
reviewing the :E44 2L&C &ules
and will reort on any other
signi.cant develoments in
subse)uent udates"
/,** 3LRC Rules,
/,** 3LRC Rules,
En =anc &esolution 44'4:
amended the :E44 2L&C
&ules of 3rocedure"
Lenue: /hen venue is not
ob(ected to before the .rst
scheduled mandatory
conference, such issue or
ob(ection will be deemed
waived" 0&ule +L, Section 4,
ar" c1
Con.dentiality of
Commission &ecords: access
to leadings and other
documents .led by arties to
a case are restricted"
&eorts, drafts of decisions,
records of deliberations, and
other documents involving
rivate rights are made
con.dential" 2evertheless,
decisions, resolutions and
orders of the 2L&C are oen
to the arties and their
counsel or authori-ed
reresentative during o*ce
hours" 0&ule R+++, Section 61
/,** 3LRC Rules,
/,** 3LRC Rules,
&ULE L, SEC#+C2 44"
AME2;ME2# C,
CCM3LA+2#M3E#+#+C2" An
amended comlaint or
etition may be .led before
the Labor Arbiter at any time
before the .ling of osition
aer, with roof of service
of a coy thereof to the
oosing artyMies" +f the
amendment of the comlaint
or etition involves
imleading additional
resondentMs, service of
another summons in
accordance with Section B
hereof is necessary to
ac)uire (urisdiction over the
erson of the said
&ULE L, SEC#+C2 :E" ;EA#?
C, 3A&#+ES" +n case a
comlainant dies during the
endency of the roceedings,
heMshe may be substituted by
hisMher heirs" +f it is the
individual resondent, the
rovision of Section :E, &ule
B of the &ules of Court shall
&ULE R+, SEC#+C2 D" E,,EC#
C, A MC#+C2 #C L+,# E2#&T
C, GU;AME2#" +n case a
motion to lift Entry of
Gudgment is .led, the
execution roceedings shall
not be susended and the
records of the case shall not
be elevated to the
Commission unless ordered
&ULE R+, SEC#+C2 44
;EA#? C, 3A&#T" /here a
arty dies after the entry of
(udgment or issuance of
certi.cate of .nality,
execution thereon may issue
or one already issued may be
enforced in accordance with
the alicable rovisions of
the &ules of Court" #he
sheri! shall submit to the
Commission or Labor Arbiter
a reort before and after the
sale" 3roceeds of the sale
should be deosited with the
Cashier for roer disosition
by the Commission or Labor
#he foregoing rovisions
rovide mechanisms to: a1
amend comlaints b1
substitute heirs in case of
death of a arty and c1
execute (udgments"
#he amendments also clarify
certain ambiguities in the
rules" ,or instance, the
amended rules secify the
rec%oning oint of the .ve 0D1
year e!ectivity of the writ of
execution, which is the date
of entry of (udgment or
issuance of certi.cate of
.nality" 0&ule R+, Section 71
+n resect of execution of
monetary (udgments, the
amended rules state the
manner by which a losing
arty may voluntarily tender
ayment" #he amended rules
also enumerate the order of
funds and roerties against
which the (udgment may be
enforced in the event the
losing arty refuses or fails to
ay" 2otably, the revailing
arty may even .le a motion
for the issuance of a Hbrea%
oen orderJ with the
Commission or the Labor
Arbiter if the losing arty
revents the sheri! from
entering the lace where the
roerty sub(ect of execution
is %et" 0&ule R+, Section 5
and 4E1
#he amended rules
introduced a new rovision,
which would have a
signi.cant e!ect during
execution roceedings" +t
contemlates a situation
where a case is elevated to
the Court of Aeals and
subse)uently to the Sureme
Court" #he new rovision
states that a total or artial
reversal of (udgment by the
Court of Aeals has the
e!ect of susending the
execution insofar as the
reversal is concerned even
during the endency of a
motion for reconsideration on
such (udgment" /here the
(udgment of the Court of
Aeals is reversed by the
Sureme Court, execution
roceedings shall commence
uon resentation of a
certi.ed true coy of the
decision and entry of
(udgment" 0Section 47, &ule
Doctrine o% Aorum
Doctrine o% Aorum
3on Con.eniens
3on Con.eniens
$anila 8otel Corporation
vs. N7!C (! No. 12&&"",
6cto0er 13, 2&&&) P #he
2L&C has no (urisdiction
when the main asects of the
case transired in foreign
(urisdictions and the only lin%
that the 3hiliines has with
the case is that the
emloyee is a ,iliino citi-en"
(NB vs. Ca0ansa3 (! No.
14"&1&, 9)ne 21, 2&&4) P
when the emloyee is
directly hired in a foreign
country but nonetheless
secures a 03CEA1
emloyment certi.cate, she
is an C,/ and thus the case
falls under the (urisdiction of
the labor arbiter"
Counter claims o%
Counter claims o%
Bane: vs. Val*evilla (!
No. 128&24, $a. 9, 2&&&)
P Art" :47 (noB 22') is
comrehensive enough to
include claims for all forms of
damages arising from Er'Ee
relations, including Er8s
claims for actual damages
against a dismissed Ee"
2o-on*on vs. N7!C (!
No. 1443"#, Sept. 3&,
3LRC, 1urisdiction
3LRC, 1urisdiction
#wo %inds
Criginal Gurisdiction
+n(unction in ordinary labor
+n(unction in stri%es and loc%outs
under Article :7E, LC
Certi.ed labor disutes in
industries indisensable to the
national interest, where wor%
stoage is li%ely or has already
Exclusive Aellate Gurisdiction
Cases decided by the labor
Cases decided by ;CLE regional
directors under Article 4:5
Labor Arbiters B
Labor Arbiters B
3LRC, distinction
3LRC, distinction
o% -urisdictions
o% -urisdictions
2L&C has exclusive aellate
(urisdiction on all cases
decided by the labor arbiters"
2L&C does not have original
(urisdiction on the cases over
which labor arbiters have
original and exclusive
+f the labor arbiter does not
exercise original and
exclusive (urisdiction over a
case, the 2L&C has no
aellate (urisdiction over it"
Labor Arbiters8 decisions P
ordinary aeal to the 2L&C,
wMin 4E calendar days from
receit" 2L&C8s decision on
aeal is elevated to the CA
by way of secial civil action
0&ule <D1, and then under
ordinary aeal 0&ule @D1 to
the SC
Crounds o% Appeal
Crounds o% Appeal
3rima facie evidence of
abuse of discretion on the
art of the labor arbiter
;ecision, order or award was
secured through fraud or
coercion, including graft and
3urely on )uestions of law
Serious errors in the .ndings
of facts which would cause
grave or irrearable damage
or in(ury to aellant
Per%ection o%
Per%ection o%
Appeal, reDuisites
Appeal, reDuisites
,iled within reglementary
eriod 0ten days from receit
of decision by arty see%ing
Under oath
Aeal fee
3osting of cash or surety
bond 0where (udgment
involves monetary award1
3roof of service to adverse
2ote the following:
Labor arbiter loses (urisdiction
uon erfection of aeal
Lac% of veri.cation is not fatal
nor (urisdictional
Aeal is still valid desite
failure to ay doc%et fee, but
refusal to ay desite directive
is fatal
&aising new issues or changing
theory on aeal is not allowed"
&einstatement is
immediately executory even
ending aeal
(ioneer ,e;t)ri:in3
Corporation vs. N7!C '
emloyer is duty'bound to
inform emloyee of
An emloyer may not stay
execution of reinstatement,
even when he has osted a
!o<)ero vs. (A7 (! No.
142329, April 2&&3) '
Labor arbiter has ministerial
duty to imlement
reinstatement order
Reinstatement by
Reinstatement by
Actual reinstatement of the
emloyee to his wor% under
the same terms and
conditions rior to dismissal
or searation, or
&einstatement in the ayroll
of the comany, without
re)uiring actual return to
0ureau o%
0ureau o%
Labor Relations
Labor Relations
AE3C(!)3" )A (F>
AE3C(!)3" )A (F>
R>LA(!)3" A0")R0>D
R>LA(!)3" A0")R0>D
0G 3CM0
0G 3CM0
3ursuant to 7.=. 123, the
2ational Conciliation and
Mediation =oard 02CM=1 has
absorbed the conciliation,
mediation and voluntary
arbitration functions of the
#he =L& functions, as it now
stands are con.ned largely to
union matters, collective
bargaining and labor
Gurisdiction over labor'
management roblems or
disutes is also exercised by
other o*ces such as the
;CLE regional o*ces, the
C*ce of the Secretary of
Labor, 2L&C, 3CEA, C//A,
SSS'ECC, the regional wage
and roductivity boards,
2/3C, and even the regular
courts over intra'cororate
>:clusi.e and
>:clusi.e and
1urisdiction o% the
1urisdiction o% the
#o act on its own initiative or
uon the re)uest of either or
both arties on all:
+2#&A'union con$icts9
+2#E&'union con$icts9 and
C#?E& &ELA#E; Labor &elations
)ther Related Labor
)ther Related Labor
Relations Disputes
Relations Disputes
Sec. 2, !)le XI 2.6.
Sec. 2, !)le XI 2.6.
Shall include any con$ict
between a labor organi-ation
and the emloyer or any
individual, entity, or grou
that is 2C# a labor
organi-ation or wor%er8s
#his includes:
Cancellation of registration of
unions and wor%er8s
associations9 and
A etition for interleader"
>) /H*, ". *65+
>) /H*, ". *65+
removed from the (urisdiction
of the =L& HallJ labor'
management disutes" #he
e!ect of 7.=. 241 is to
transfer to the 2CM= the
mediation, conciliation, and
arbitration functions of the
#he arties may, by
agreement, settle their
di!erences by submitting
their case to a voluntary
arbitrator rather than ta%ing
the case to the =L&"
>) /H*, ". *65+
>) /H*, ". *65+
#his category of labor
relations disutes as the
name suggests is related to
interMintra union disutes to
di!erentiate it from other
labor'management disutes,
such as those under
Article 4:6: Lisitorial and
enforcement ower
Article 4:5: recovery of wages,
simle money claims and other
Article ::B: Gurisdiction of the LA
and 2L&C
Article :<7: Gurisdiction of LA
Article :7E0g1: Secretary of
Labor, on ossibility of stri%es
and loc%outs
/)nctions an*
/)nctions an*
A)t%orit. o1 B7! )n*er
A)t%orit. o1 B7! )n*er
t%e 198"
t%e 198"
A*-inistrative Co*e
A*-inistrative Co*e
Sec. 13. /"rea" of Labor
.elations C #he =L& shall:
Set olicies, standards, and
rocedures on the
registration and suervision
of legitimate labor union
activities including denial,
cancellation, and revocation
of labor union ermits9
Set olicies, standards and
rocedures relating to
collective bargaining
agreements, and the
examination of .nancial
records of accounts of labor
organi-ation to determine
comliance with relevant
3rovide roer orientation to
wor%ers on their schemes
and ro(ects for imrovement
of the standards of living of
wor%ers and their families"
Enion Disputes
Enion Disputes
!ntra8Enion Disputes I
refer to any con$ict between
and among union members,
including grievances arising
from any violation of the
rights and conditions of
membershi, violation of or
disagreement over any
rovision of the union8s
constitution and by'laws, or
disutes arising from
chartering or a*liation"
!nter8Enion Disputes I
refer to any con$ict between
and among legitimate labor
organi-ations involving
reresentation )uestions for
uroses of collective
bargaining or to any other
con$ict or disute between
legitimate labor
organi-ations based on any
violations of their rights as
labor organi-ations"
Co.erage o% !nter9!ntra8
Co.erage o% !nter9!ntra8
Enion Disputes 2
Enion Disputes 2
Sec. 1
Sec. 1
!)le XI, 2.6. 4&=&3)
!)le XI, 2.6. 4&=&3)
Cancellation of registration
of a labor organi-ation .led
by its members or by any
other labor organi-ation9
Conduct of election of union
and wor%er8s association
o*cersMnulli.cation of
election of union and
wor%er8s association
AuditMaccounts examination
of union or wor%er8s
association funds9
;e'registration of C=A9
LalidityMinvalidity of union
a*liation or disa*liation9
LalidityMinvalidity of
for union membershi9
Co.erage o% !nter9!ntra8
Co.erage o% !nter9!ntra8
Enion Disputes 2
Enion Disputes 2
Sec. 1
Sec. 1
!)le XI, 2.6. 4&=&3)
!)le XI, 2.6. 4&=&3)
LalidityMinvalidity of
imeachmentMexulsion of
union and wor%er8s
association o*cers9
LalidityMinvalidity of
voluntary recognition9
Cosition to alication for
union and C=A registration9
Liolations of or
disagreements over any
rovision in a union or
wor%er8s association
constitution and by'laws9
Co.erage o% !nter9!ntra8
Co.erage o% !nter9!ntra8
Enion Disputes 2
Enion Disputes 2
Sec. 1
Sec. 1
!)le XI, 2.6. 4&=&3)
!)le XI, 2.6. 4&=&3)
;isagreements over
chartering or registration of
labor organi-ations and
Liolations of the rights and
conditions of union or
wor%er8s association
Liolations of the rights of
legitimate labor
organi-ations, excet
interretation of C=As9 and
Such other disutes or
con$icts involving the rights
to self'organi-ation, union
membershi, and collective
bargaining P
=etween and among legitimate
labor organi-ations9 and
=etween and among members
of a union or wor%er8s
ReDuirements as
ReDuirements as
to the Ailing o%
to the Ailing o%
! >ntire
#he comlaint must be signed
by at least BEU of the entire
membershi of the union9 and
+t must also show exhaustion of
administrative remedies"
ReDuirements as
ReDuirements as
to the Ailing o%
to the Ailing o%
! a Member
+n such case, only the a!ected
member may .le the
comlaint" &edress must .rst
be sough within the union itself
in accordance with its
constitution and by'laws
ERCE3# under any of the
following circumstances:
,utility of intra'union remedies9
+mroer exulsion rocedure9
Undue delay in aeal as to
constitute substantial in(ustice9
#he action is for damages9
ReDuirements as
ReDuirements as
to the Ailing o%
to the Ailing o%
! a Member
+n such case, only the a!ected
member may .le the
comlaint" &edress must .rst
be sough within the union itself
in accordance with its
constitution and by'laws
ERCE3# under any of the
following circumstances:
Lac% of (urisdiction of the
investigating body9
Action of the administrative
agency is atently illegal,
arbitrary, and oressive9
+ssue is urely a )uestion of law9
/here the administrative agency
had already re(udged the case9
/here the administrative agency
was ractically given the
oortunity to act on the case
but did not"
>Jects o% Ailing or
>Jects o% Ailing or
Pendency o% !nter9!ntra8
Pendency o% !nter9!ntra8
Enion Dispute and other
Enion Dispute and other
Labor Relations Disputes
Labor Relations Disputes
Sec. 3, !)le XI, 2.6. 4&=
Sec. 3, !)le XI, 2.6. 4&=
#he rights, relationships
and obligations o% the
part8litigants against each
other and other arties'in'
interest rior to the
institution of the etition
shall continue to remain
during the pendency o%
the petition and until the
date o% 'nality o% the
decision rendered
therein" #hereafter, the
rights, relationshis and
obligations of the arty
litigants against each other
and other arties'in'interest
shall be governed by the
decision so ordered"
Modes o% Appeal in
Disputes 2Rule !,
D.). 4,8,#
"ummary o% Rules
"ummary o% Rules
on !nter9!ntra
on !nter9!ntra
Enion Disputes
Enion Disputes
,or grounds under Section
4: any LLC members thereof
secially concerned
,or grounds under Section
:: any arty'in'interest
&C that issued its certi.cate
of registration or certi.cate
of creation of chartered
local P if it involves labor
unions with indeendent
registration, chartered
locals, wor%ers association,
its o*cers or members"
;irectly with the =L& if it
involves a
unionMindustry union, its
o*cers or members
>Jects o% Ailing or
>Jects o% Ailing or
Pendency o% !nter9!ntra8
Pendency o% !nter9!ntra8
Enion Dispute and other
Enion Dispute and other
Labor Relations Disputes
Labor Relations Disputes
Sec. 3, !)le XI, 2.6. 4&=
Sec. 3, !)le XI, 2.6. 4&=
#he .ling or endency of any
interMintra'union disutes is
not a pre-udicial Duestion
to any petition %or
certi'cation election and
shall not be a ground %or
the dismissal o% a petition
%or certi'cation election
or susension of roceedings
for certi.cation election"
"ummary o% Rules
"ummary o% Rules
on !nter9!ntra
on !nter9!ntra
Enion Disputes
Enion Disputes
,ormal re)uirements
+n writing
Leri.ed under oath
2ame, address and other
ersonal circumstances of the
comlainant or etitioner
2ame, address and other
ersonal circumstances of the
resondent or erson charged
2ature of comlaint or etition
,acts and circumstances
surrounding comlaint or
Causes of action
Statement on exhaustion of
Administrative &emedies
&eliefs rayed for
Certi.cation of non'forum
Cther relevant matters
%unctions o% 0LR
%unctions o% 0LR
&egulation and registration
of labor unions
Seeing of registry of labor
Maintenance of a .le of
Maintenance of a .le of all
settlements or .nal
decisions of the SC, CA,
2L&C and other agencies on
labor disutes
=L& has no (urisdiction over
imlementation or
interretation of C=As,
which shall be sub(ect of
grievance rocedure andMor
Loluntary arbitration"
3urose: 3arties agree to
Avoid litigation, or
3ut an end to one already in
?ow: ma%ing recirocal
Substantial re)uirements
Loluntary, devoid of coercion
2ot contrary to law, morals,
ublic olicy
,ormal re)uirements
+n writing
Signed in the resence of erson
before whom case is .led
/hen e!ected:
At any stage of the roceedings,
even when there is already a
.nal K executory (udgment
ERCE3# when (udgment is in
rocess of execution
Lalidity: Lalid and binding on
both arties, with or without
;CLE assistance
+f done without ;CLE assistance
+n case of non'comliance with
3rima facie evidence of fraud,
misreresentation, coercion
Ctions when agreement is
Enforce comliance
&egard as rescinded, revert to
original demand
Nuitclaim: A formal
renunciation or relin)uishing
of a claim
Usually integral in comromise
Mindoro Lumber vs" =aay, et"al",
A& 2o" 4D67DB, Gune :EED
Leloso and Liguaton vs" ;CLE,
2oah8s Ar% Sugar Carriers, A&
2o" 67:57, Aug" 4554
GAA K ?aggar Geans vs" 2L&C, A&
2o" 4ED74E, ,eb" 455D
Magbanua .s. Ey, CR
3o.*K*,,#, May /,,H
Labor Crgani-ations
2Article /*57
2Article /*57
QLabor organi-ationQ means
any union or association of
emloyees which exists in
whole or in art for the
urose of collective
bargaining or of dealing with
emloyers concerning terms
and conditions of

QLegitimate labor
organi-ationQ means any
labor organi-ation duly
registered with the
;eartment of Labor and
Emloyment, and includes
any branch or local thereof"

Q=argaining reresentativeQ
means a legitimate labor
organi-ation whether or not
emloyed by the emloyer"
De'nitions 2D)
De'nitions 2D)
QChartered LocalQ refers to a
labor organi-ation in the
rivate sector oerating at
the enterrise level that
ac)uired legal ersonality
through the issuance of a
charter certi.cate by a duly
registered federation or
national union, and reorted
to the &egional C*ce in
accordance with &ule +++,
Section :'E of these &ules"
QExclusive =argaining
&eresentativeQ refers to a
legitimate labor union duly
recogni-ed or certi.ed as the
sole and exclusive bargaining
reresentative or agent of all
the emloyees in a
bargaining unit"
Q+ndeendent UnionQ refers
to a labor organi-ation
oerating at the enterrise
level that ac)uired legal
ersonality through
indeendent registration
under Article :B@ of the
Labor Code and &ule +++,
Section :'A of these &ules"
De'nitions 2D)
De'nitions 2D)
QLabor Crgani-ationQ refers
to any union or association of
emloyees in the rivate
sector which exists in whole
or in art for the urose of
collective bargaining, mutual
aid, interest, cooeration,
rotection, or other lawful
QLabor &elations ;ivisionQ
refers to the 041 Labor
Crgani-ation and C=A
&egistration Unit and 0:1
Med'Arbitration Unit in the
&egional C*ce" #he Labor
Crgani-ation and C=A
&egistration Unit is in charge
of rocessing the
alications for registration
of indeendent unions,
chartered locals, wor%ers
associations and collective
bargaining agreements,
maintaining said records and
all other reorts and
incidents ertaining to labor
organi-ations and wor%ers>
De'nitions 2D)
De'nitions 2D)
QLegitimate Labor
Crgani-ationQ refers to any
labor organi-ation in the
rivate sector registered or
reorted with the ;CLE in
accordance with &ules +++ and
+L of these &ules"
QLegitimate /or%ers>
AssociationQ refers to an
association of wor%ers
organi-ed for mutual aid and
rotection of its members or
for any legitimate urose
other than collective
bargaining registered with
the ;CLE in accordance with
&ule +++, Sections :'C and :';
of these &ules"
(&o8Aold Purpose
(&o8Aold Purpose
o% Labor
o% Labor
;ealing with the Emloyer P
interaction between
emloyers and emloyees
Cther terms and conditions of
Alies even without
(&o8Aold Purpose
(&o8Aold Purpose
o% Labor
o% Labor
Collective =argaining P is a
right ac)uired through
registration, and recognition
or certi.cation as the
exclusive bargaining
Classi'cations o%
Classi'cations o%
At the 2ational Level
2ational UnionM,ederation
+ndustry Union
#rade Union Center
Comany Union
Enterrise Level
+ndeendent Labor Union
RA 645*
RA 645*
A2 AC# S#&E2A#?E2+2A
#?E /C&SE&S>
CC2S#+#U#+C2AL &+A?# #C
AME2;+2A ,C& #?E
3U&3CSE 3&ES+;E2#+AL
;EC&EE 2C" @@:, AS
AME2;E;, C#?E&/+SE
S2C/2 AS #?E LA=C& CC;E
C, #?E 3?+L+33+2ES
Amended Articles :@E, :@@,
:@D, :<4, :<: K :<B
Changes to Labor
Changes to Labor
Code Re?
Code Re?
Registration o% Labor
Registration o% Labor
:EU membershi of
emloyees in bargaining unit
re)uired only for
indeendent unions
Chaters ac)uire legal
ersonality 0for uroses of
certi.cation election1 uon
receiving their charter
Arounds of cancellation
revised" Some grounds were
removed as they were not
romotive of self
organi-ation rights
3etition for Certi.cation
Election will continue to be
heard desite etition to
cancel registration
Changes to Labor
Changes to Labor
Code Re?
Code Re?
Registration o% Labor
Registration o% Labor
Cancellation may be e!ected
by vote of two'thirds of
membershi, with alication
to cancel submitted to ;CLE
by the organi-ation8s board
&eortorial re)uirements
Suervisors Union and &an%
and ,ile Unions may (oin
same ,ederation
Commingling of suervisors
and ran% K .le emloyees no
longer a ground for
Changes to Labor
Changes to Labor
Code Re?
Code Re?
Registration o% Labor
Registration o% Labor
3CEs .led by a federation on
behalf of its chater need not
identify the chater8s o*cers
and members
Emloyer cannot oose a
etition for certi.cation
election9 he is considered a
Registration o%
Registration o%
Legal ersonality
En(oy the rights given to
legitimate labor organi-ation"
3etition for certi.cation election
=argaining rights
&ight to stri%e
2on'registered unions are
not illegitimate or illegal
Registration o%
Registration o%
Union registration refers to
the rocess of determining
whether the alication for
registration of a labor union
organi-ed for collective
bargaining comlies with the
documentary re)uirements
rescribed under &ule B and
@ of ;CLE ;eartment Crder
2o" @EFEBand the rules
imlementing =oo% L of the
Labor Code, as amended"
Registration o%
Registration o%
All labor unions whose
members are emloyed in
commercial, industrial and
agricultural enterrises, and
emloyees of government'
owned and controlled
cororations without original
charters established under
the Cororation Code,
including religious,
charitable, medical or
educational institutions
whether oerating for ro.t
or not which exist in whole
and in art for collective
Alien emloyees with valid
wor%ing ermits issued by
;CLE may exercise their
right to self'organi-ation and
(oin or assist labor unions for
uroses of collective
bargaining if they are
nationals of a country which
grants the same or similar
rights to ,iliino wor%ers, as
certi.ed by the ;eartment
of ,oreign A!airs"
Local or Chapter
Local or Chapter
;uly accomlished and
notari-ed Alication ,orm9
Charter certi.cate issued by
the federation or national
union indicating the creation
or establishment of the
#he names of the
localMchater8s o*cers, their
addresses and rincial
o*ce of the localMchater9
#he localMchater8s
constitution and by'laws,
rovided that where the
localMchater8s constitution
and by'laws is the same as
that of the federation or
national union, this fact shall
be indicated accordingly"
!ndependent L)
!ndependent L)
;uly accomlished and
notari-ed Alication ,orm9
Minutes of Crgani-ational
Meeting and Attendance
List of Members
,inancial &eort if in
existence for at least one 041
!ndependent L)
!ndependent L)
+f less than 4 year, and has
not collected any amount, a
certi.cation to this e!ect"
Constitution and by'laws
accomanied by the names
and signatures of ratifying
Minutes of adotion or
rati.cation of the constitution
and by'laws, dateMs when
rati.cation was made and list
of ratifying members"
!ndependent L)
!ndependent L)
Minutes of adotion or
rati.cation is not re)uired if it
is done simultaneously with
the organi-ational meeting
including the dateMs when
rati.cation was made and list
of ratifying members"
Statement that it is not
reorted as a chartered local
or any federation"
List of members comrising
at least :EU of the
emloyees of the bargaining
#he indeendent union8s act
of entering into an
agreement of a*liation with
a federation or national
union, or
A chartered local8s act of
maintaining its ties to a
federation or national union
desite its subse)uent
indeendent registration
ReDuirements o%
ReDuirements o%
&eort of a*liation of
indeendently registered
labor union9
&esolution of LU board aroving
#otal number of members, and
names of those aroving
Certi.cate of a*liation
/ritten notice to the emloyer
concerned if the a*liating union
is the bargaining agent
Chartering .s.
Chartering .s.
Re.ocation o%
Re.ocation o%
May only occur on the
grounds of disloyalty or such
grounds seci.ed in the
constitution K by'laws9
E!ected by serving a veri.ed
notice to the localMchater,
coy the =L&
revocation of legal ersonality,
excet if local chater has
ac)uired indeendent
+f covered by C=A, local chater
may be given oortunity to
register indeendently
0LR Action
0LR Action
Act on all alications within
BE days from .ling, rovided
all documents and aers
re)uired have been
/hen ;CLE refuses to
register a labor organi-ation
which has comlied with the
re)uirements, mandamus is
the roer remedy
Aroval P Crder and
Certi.cate of &egistration
;isaroval P ;ecision which
states clearly reasons for
Cancellation o%
Cancellation o%
=L& has (urisdiction
Cnly for grounds in Article
3etition for cancellation will
not susend 3CE roceedings
Union may still see% (ust and
e)uitable remedies in
aroriate courts
Crounds %or
Crounds %or
Misreresentation, false
statements or fraud in
connection with the adotion
or rati.cation of the
constitution and by'laws or
amendments thereto,
minutes of rati.cation and
list of members who too%
Misreresentation, false
statements or fraud in
connection with the election
of o*cers, minutes of the
election of o*cers and list of
Loluntary dissolution by
Crounds %or
Crounds %or
#en grounds in Article :@D
rior to &A 5@64 have been
reduced to three
Examles of removed
,ailure to submit reortorial
+llegal stri%e
Engaging in HcaboJ system
May be done by members
:MB of general membershi
votes during a meeting
called for the urose of
dissolving organi-ation
Alication to cancel
registration submitted by the
board, attested by the
Rights B
Rights B
Conditions o%
Conditions o%
Membership, L)
Membership, L)
Article :@7
Arbitrary or excessive initiation
,ull and detailed reorts
;irect election of o*cers
;etermination of ma(or olicy
a!ecting entire membershi of
Exclusion of subversive
ersons from membershi
Exclusion of convicted member
as union o*cer
Collection or disbursement
only by authori-ed o*cers
&eceits for all ayments
Rights B
Rights B
Conditions o%
Conditions o%
Membership, L)
Membership, L)
Article :@7
,unds for authori-ed use only
=an on unauthori-ed
comensation on o*cers
#rue and correct accounting of
+nsection of records of
2o unauthori-ed secial levy or
assessment of fees
Chec% P o!
+nformation on the Constitution
and by'laws
Rights B
Rights B
Conditions o%
Conditions o%
Membership, L)
Membership, L)
Article :@7can be best
groued into four basic
3olitical rights P right to vote
and be voted for
;eliberation and decision'
ma%ing" &ight to articiate in
deliberations on ma(or olicy
)uestions and decide by secret
Money matters
Constitution and =y'laws
Collective =argaining
Labor Laws
;iolation o% Rights
;iolation o% Rights
o% Enion
o% Enion
Cancellation of union
registration, C&
Exulsion from o*ce of a
union o*cer"
BEU of all members 0if
a!ecting entire membershi1
must concur re .ling of
comlaint with the =L&
Cnly a!ected
memberMmembers may .le a
comlaint ertaining to a
violation of which they are
Relationship o%
Relationship o%
the Enion and its
the Enion and its
Ang Malayang Manggagawa
ng Ang #ibay Enterrises, et
al" vs" Ang #ibay, et al", A"&"
2o" L'6:D5, ;ecember 45D7:
#he relationshi of the union and
the members is governed by
their mutual agreement, the
terms and conditions of which
are set forth in the union
constitution and by laws and
binding on the members as well
as the organi-ation itself
Prohibited as
Prohibited as
2on'emloyees 0:@70c11
Subversives 0:@70e11
/hat about ersons
convicted of crimes involving
moral turitudeV
Allowed as members, not eligible
for election as o*cer 0:@70f11
#he labor organi-ation
cannot comel emloyees to
become members of their
labor organi-ation if they are
already members of a &+LAL
#he ersons mentioned in
$rt 2,*DeE (S9/;7.S&;7S) of
the Labor !ode are
rohibited from becoming a
member of a labor
#he members of &EL+A+CUS
C&AA2+OA#+C2 whose
religion forbids membershi
in labor organi-ation could
not be comelled into union
membershi 0Lictoriano v"
Eli-alde &oe /or%ers Union,
L':D:@< Setember 457@1
Who are entitled
Who are entitled
to .ote?
to .ote?
#ancino vs" 3ura ,errer'
Calle(a, A"&" 764B4, Gan" 4566
Cnly members of the union have
the eligibility to ta%e art in the
election of union o*cers"
Eligibility to vote may be
determined through the use of
the alicable ayroll eriod and
the status of the emloyees
during the alicable eriod"
#his ertains to the ayroll of
the month next receding the
labor disute, in case of regular
emloyees and the ayroll
eriod at or near the ea% of
oeration, in case of emloyees
in seasonal industries"
ReDuirements %or
ReDuirements %or
Le.y o% "pecial
Le.y o% "pecial
Assessments or
Assessments or
/ritten resolution9
Aroved by a ma(ority of all
members9 and
Aroval obtained at a
general membershi meeting
duly called for that urose"
Secretary of the organi-ation
shall record the minutes of
the meeting, which shall be
attested to by the 3resident"
list of all members resent
votes cast9 and
urose of the assessment or
"trict Compliance
"trict Compliance
(alacol et aa. - Ferrer:
2alleFa, et al, 2. +o. )4222,
Febr"ar5 3, 1((0) :
Substantial comliance with
the aforementioned
rocedure is not enough P
the re)uirements must be
strictly comlied with
A method of deducting from
an emloyee8s ay at
rescribed eriod, the
amounts due to the union for
fees, .nes or assessments
3ature and
3ature and
o% Check8oJ
o% Check8oJ
Union dues are the lifeblood
of the union" All unions are
authori-ed to collect
reasonable membershi fees,
union dues, assessments and
.nes and other contributions
for labor education and
research, mutual death and
hositali-ation bene.ts,
welfare fund, stri%e fund and
credit and cooerative
0$rt. 2)' DaE)
With Regard to
With Regard to
(Art 241
(Art 241
Ceneral Rule? 2C secial
assessment, attorney8s fees,
registration fees or any other
extraordinary fees may be
chec%ed o! from any amount
due an emloyee Bitho"t an
indi-id"al Britten
a"thorization d"l5 si6ned b5
the emplo5ee
#he Authori-ation should
seci.cally state the:
Amount9 and
3urose and the bene.ciary of
the deduction
,or mandatory activities
rovided under the Code9
/hen non'members of the
union avail of the bene.ts of
the C=A:
Said non'members may be
assessed union dues e)uivalent
to that aid by members9
Cnly by a board resolution
aroved by ma(ority of the
members in a general meeting
called for the urose
Check )J
Check )J
7d"ardo 1. Marino, 1r. et al.
-s. 2il G. 2amilla, et al., 2...
+o. 1,(*3', 1"l5 *, 200(: #he
individual written
authori-ation duly signed by
the emloyee is an additional
re)uirement in order that a
secial assessment may be
validly chec%ed'o!" +n case of
chec%'o! another re)uisite is
necessary in addition to the
re)uirements for secial
assessment, enumerated
above and this is, individual
written authori-ation for
chec%'o! duly signed by the
emloyee concerned"
=eing an intra'union con$ict,
the &egional ;irector of
;CLE has (urisdiction over
chec% o! disutes"
Enion Dues
Enion Dues
&egular monthly
contributions aid by the
members to the union in
exchange for the bene.ts
given to them by the C=A
and to .nance the activities
of the union in reresenting
Agency Aees
Agency Aees
;ues e)uivalent to union
dues charged from the non'
union members who were
bene.ted by the C=A
#he relationshi between the
non'union emloyees and
the Union that is the
bargaining reresentative is
that of rincial P agent
Since the union was able to
secure better terms and
conditions of emloyment for
all emloyees, it is roer
that they be comensated
for their reresentation
ReDuisites %or
ReDuisites %or
Assessing Agency
Assessing Agency
#he emloyee is art of the
bargaining unit,
?e is not a member of the
union9 and
?e artoo% of the bene.ts of
the C=A
/ritten authori-ation is not
necessary for collection
Enion Dues .s.
Enion Dues .s.
Agency Aees
Agency Aees
Agency Aees not
Agency Aees not
+$&/$&L9 -. San Mi6"el
/reBer5 &nc., 2. +o.
1)1*0, $"6"st '1, 1(3'
Agency ,ee cannot be imosed
on emloyees already in the
service and are members of
another union" +f a closed sho
agreement cannot be alied
to them, neither may an
agency fee, as a lesser form of
union security, be imosed to
3ayment by non'union
members of agency fees does
not amount to an un(ust
enrichment basically because
the urose of such dues is to
avoid discrimination between
union and non'union
Co.erage o% C0A to !nclude
Co.erage o% C0A to !nclude
>mployee8Members o%
>mployee8Members o%
Another Enion
Another Enion
Members of a rival union are
2C# Considered ,ree &iders
/hen the union bids to be
the bargaining agent, it
voluntarily assumes the
resonsibility of
reresenting all emloyees
in the aroriate
bargaining unit"
CFAP(>R !!!.
CFAP(>R !!!.
R!CF(" )A
R!CF(" )A
A&#":@6 &+A?#S C, LEA+#+MA#E
Rights o% A
Rights o% A
Legitimate Labor
Legitimate Labor
Underta%e activities for
bene.t of members9
Sue and be sued9
Exclusive reresentative of
all emloyees9
&eresent union members9
=e furnished audited
.nancial statements by
Cwn roerties9 and
=e exemted from taxes"
Constitution and by'laws, or
amendments thereto,
minutes of rati.cation, and
the list of members who
too% art in the rati.cation
of the constitution and by'
laws or amendments
List of o*cers, minutes of
the election of o*cers and
list of voters within BE days
from election9
Annual .nancial reort
within BE days after the
close of every .scal year9
List of members at least
once a year or whenever
re)uired by the =ureau
,ailure to comly with the
re)uirements shall not be a
6ro"nd for cancellation of
"nion re6istration
Erring o*cers or members
to be susended, exelled
from membershi, or
otherwise sanctioned"
Art" :@5: Coverage and Emloyees8
&ight to Self'Crgani-ation
0asis o% the Right
0asis o% the Right
to "el%8
to "el%8
Art. !!!, "ec. 5. #he right of
the eole, including those
emloyed in the ublic or
rivate sectors, to form
unions, associations, or
societies for uroses not
contrary to law shall not be
Art. !!!, "ec. #. #he State
shall guarantee the rights of
all wor%ers to self'
organi-ation, collective
bargaining and negotiations,
and eaceful concerted
activities including the right
to stri%e in accordance with
Right to "el%8
Right to "el%8
#o 1or-, @oin an* assist
la0or or3ani:ations for the
urose of collecti.e
bargaining through o% their
o&n choosing9 and
#o en3a3e in laA1)l
concerte* activities for the
same urose or for their
mutual aid and protection
($rt. 242)
Right to "el%8
Right to "el%8
All ersons emloyed in
commercial, industrial and
agricultural enterrises and
in religious, charitable,
medical, or educational
Ambulant, intermittent and
itinerant wor%ers, self'
emloyed eole, rural
wor%ers and those without
de.nite Emloyers may form
labor organi-ations for their
mutual aid and rotection"
Right to "el%8
Right to "el%8
Art" :DE : &ights of
Emloyees in the ublic
Emloyees of government
cororations established under
the Cororation Code shall have
the right to organi-e and bargain
collectively with their resective
All other EE8s in the civil service
shall have the right to form
associations for the uroses not
contrary to law"
Right to "el%8
Right to "el%8
Art" :D4 :
Managerial emloyees are not
eligible to (oin, assist, or form
any labor organi-ation"
Suervisory emloyees shall not
be eligible for membershi in a
labor organi-ation of the ran%'
and'.le EE8s but may (oin, assist
or form searate labor
organi-ations of their own"
4" &ey8s ?air Salon refused to
bargain with the union of the
barbersho comosed of eight
barbers on the ground that the
sho was a service
establishment and the number
of the barbers was less than
ten" +s the contention tenableV
2o" #he law does not .x the
minimum number of
emloyees for the exercise of
the right to self'organi-ation
and the right extends to all
tyes of establishments"
:" ,aculty members of a non'
ro.t school converted their
club into a labor union" +s this
Tes" Even emloyees in non'
ro.t or religious
organi-ations are entitled to
exercise this right"
B" +s a religious sect8s directive
to its congregation not to (oin
a labor union a bar for
members to form their own
#he right of the members of
a sect not to (oin a labor
union for being contrary to
their religious beliefs does
not bar the members of that
sect from forming their own
union" 0Saatiran vs" Calle(a1
#hose, who, in the interest of
the E&, e!ectively
recommend such managerial
actions if in the exercise of
such authority is not merely
routinary or clerical in nature
but re)uires the use of
indeendent (udgment" 0Art"
#he criterion which
determines whether a
articular emloyee is within
the de.nition of a statute is
the character o% the &ork
per%ormed rather than
the title or nomenclature
o% position held" 02S&C vs"
+f the recommendation of the
teacher area suervisor is
sub(ect to evaluation, review
and .nal aroval of the
rincial, is the teacher a
suervisory emloyeeV 2o"
#his is merely ine!ective or
clerical recommendation"
0 Laguna Colleges vs" C+& 1
Suervisors were given the
(ob of Heither to assist the
foreman if the e!ective
disatch of manower and
e)uimentJ or Hexecute and
coordinate wor% lans
emanating from his
suervisors"J Are these
HsuervisorsJ suervisory
ersonnelV 2o" #hey only
execute aroved and
established olicies leaving
little or no discretion at all
whether to imlement the
said olicies or not"
0Southern 3hiliines
,ederation vs" Calle(a1
o% the Right to
o% the Right to
Art" :D: sea%s of the
illegality of the following acts
with resect to the exercise
to the right of self'
Undue interfere with emloyees
and the wor%ers in their exercise
of self'organi-ation right
o% the Right to
o% the Right to
Ale;an*er ! vs.
Cresenciano ,re@ano , !
No. 84433, 9)ne 1992. #he
right to self'organi-ation
includes the right not to form
or (oin a union
Airti-e Specialists vs.
/errer= Calle@a, (18& SC!A
1"9). #he intendment of the
law is to grant to bona'.de
emloyees of a bargaining
unit, whether members of a
labor organi-ation or not, the
right to vote in certi.cation
?owever, by virtue of the
oeration or enforcement of
a closed sho clause in a
C=A, an emloyee may be
comelled under ain of
dismissal, to become a
member of a labor union"
o% the Right to
o% the Right to
May an E& imose as
condition for emloyment
that the alicant shall not
(oin a labor organi-ation or
shall withdraw from the one
he belongs toV
2o" Such a condition
arta%es of the nature of a
Hyellow dog contractJ and
constitutes an unfair labor
ractice" +t is interference
with the individual8s right to
o% the Right to
o% the Right to
S(/7 v. Calle@a, 1"9 SC!A
12", ! No. 8&882, April
1989. #he right to self'
organi-ation must be uheld
in the absence of exress
rovision of law to the
contrary" +t cannot be
curtailed by a Collective
=argaining Agreement
Labor Code
Labor Code
Pro.isions on
Pro.isions on
En%air Labor
En%air Labor
Art" :DB P concet of UL3 and
rocedure for rosecution
Art" :D@ P UL3 by emloyers
Art" :DD P UL3 by labor
Art" :<7 P C=A violations
which are gross in character
Art" :7E0c1 P union busting
involving dismissal of union
o*cers which threatens
existence of union
>lements o% En%air
>lements o% En%air
Labor Practice
Labor Practice
Concurrence of =C#?
#here should exist an
relationshi between the
o!ended arty and o!ender
Act comlained of must be
ER3&ESSLT mentioned and
de.ned in the Labor Code
ELP o% >mployers
ELP o% >mployers
+nterference, restraint,
coercion of emloyees in the
exercise of their right to self
Tellow dog contract
Contracting out services or
functions erformed by union
members, that interfere,
restrain or coerce emloyees
in the exercise of their right
Comany union
Company Enion
Company Enion
+nitiate, dominate, assist or
otherwise interfere with the
formation or administration
of any labor organi-ation
+ncludes giving of .nancial or
other suort to it or its
organi-ers or suorters
ELP o% >mployers
ELP o% >mployers
/ages, hours of wor%, terms and
conditions of emloyment
Excet with resect to Union
Security Clauses
;ismissal or re(udice or
discrimination by reason of
Liolation of duty to bargain
3ayment of 2egotiation or
Attorney8s ,ees to the Union,
its o*cers or agents
Liolate C=A
Gello& dog
Gello& dog
Snown reviously as
Hinfamous documentJ or
Hiron'clad documentJ
,rom the United Mine
/or%ers Gournal 045:41 P
H#his agreement has been
well named" +t is yellow dog
for sure" +t reduces to the
level of a yellow dog any
man that signs it, for he
signs away every right he
ossesses under the
Constitution and by'laws of
the land and ma%es himself
the truc%ling, helless slave
of the emloyer"J
ELPs o% Labor
ELPs o% Labor
&estraint or coercion of
emloyees in the exercise of
their right
Causing or attemting to
cause emloyer to
discriminate against an
Liolate duty, or refuse to
bargain collectively with
Causing or attemting to
cause emloyer to ay or
deliver any money or other
things of value for services
which are not erformed,
including demand for union
negotiation fees 0,eather'
ELPs o% Labor
ELPs o% Labor
As% for or accet negotiation
or attorney8s fees from
emloyers as art of
settlement of any issue in
collective bargaining or any
other disute
Liolation of a C=A
Criminal Liability
Criminal Liability
%or ELPs
%or ELPs
Cnly o*cers or agents of
cororations, associations or
artnershis who actually
articiated in, authori-ed or
rati.ed UL3s to be held
criminally liable
Cn the art of the Union, its
o*cers, members of
governing boards,
reresentatives or agents
(otality o%
(otality o%
Conduct Doctrine
Conduct Doctrine
Exressions of oinion by an
emloyer, though innocent in
themselves, may be
constitutive of UL3 because
of the circumstances under
which they are uttered, the
history of the emloyer8s
labor relations or anti'union
bias or because of their
connection with an
established collateral lan of
coercion or interference"
Enion "ecurity
Enion "ecurity
Stiulation in the C=A where
management recogni-es
membershi of emloyees in
the union which negotiated
said agreement should be
maintained or continued as a
condition of emloyment or
retention of emloyment
3urose is to safeguard and
ensure continued existence
of the union
Enion "ecurity
Enion "ecurity
Clause, (ypes
Clause, (ypes
Closed sho
Maintenance of membershi
Union sho agreement
Modi.ed union sho
Exclusive =argaining
=argaining for members only
Agency sho agreement
3referential hiring agreement
Legal Principles
Legal Principles
Pertinent to Enion
Pertinent to Enion
"ecurity Clause
"ecurity Clause
Emloyer must still a!ord
emloyee due rocess
bargaining and
bargaining and
o% agreement
o% agreement
A democratic framewor% to
stabili-e Er'Ee relations, to
create a climate of sound
and stable industrial eace
A mutual resonsibility K
legal obligation of the
emloyer and the union
Collective bargaining denotes
negotiations loo%ing forward
to a collective agreement,
however, it is a continuous
2egotiation of wages, hours
K terms, conditions of
Execution of written contract
embodying terms
2egotiation of issues arising
out of interretation or
alication of agreement
2egotiation of terms of new
contract, or roosed
System of collective
bargaining consists of:
2egotiation of contracts
0legislative hase1
Administration of contract
0executive hase1
+nterretation or alication
0(udicial hase1
Process 2Article
Process 2Article
/HK, /H+, Labor
/HK, /H+, Labor
3arty see%ing negotiation
serves written notice K
statement of roosals
A contract
executed uon re)uest of
either the emloyer or the
exclusive bargaining
+ncororating all agreements
reached during negotiations
/ith resect to wages, hours of
wor% and other terms and
conditions of emloyment
+ncluding roosals for ad(usting
any grievance or )uestions
under such agreement
H+t is more than a contract9 it
is a generali<ed code to
go.ern a myriad cases which
the draftsmen cannot wholly
anticiate" +t co.ers the
&hole employment
relationship and prescribes
the rights and duties o% the
parties" +t is a system o%
industrial sel%8go.ernment
&ith the grie.ance
machinery at the .ery heart
o% the system"J
=argaining &eresentative
&efers to the Legitimate Labor
Crgani-ation selected or
designated by the emloyes"
;oes not refer to its o*cers"
?ow selected is discussed under
Articles :<4':<D of Labor Code
"election or
"election or
Designation o%
Designation o%
0argaining Agent
0argaining Agent
Manifestation of wor%ers8
articiatory right
3AL vs" 2L&C 0A& 2o" 6D56D,
Aug" 455B1 P 8The !/$ ma5
not be interpreted as cession
of emplo5eesH ri6ht to
participate in the
deliberation of matters Bhich
-a. aBect t%eir ri3%ts
an* t%e 1or-)lation o1
policies relative t%ereto.C
May be exercised by a Labor'
Management Council, aside
from or instead of a union
0dealing with the emloyer
vs" collective bargaining1
;oes not reclude the
exercise of an individual
emloyee8s right to raise his
own grievance"
0argaining Enit
0argaining Enit
#hat grou of (obs and
(obholders reresented by
the recogni-ed or certi.ed
union when it bargains with
the emloyer"
May comrise all of the
suervisors or, searately, all
the ran%'and'.le oulation
of the comany"
#he law favors having only
one grouing er category
0following the Hunited'we'
stand, divided we fallJ logic1,
but does not rohibit sub'
grous that are
C0E, Ender D)
C0E, Ender D)
&efers to a group o%
employees sharing
mutual interests &ithin a
gi.en employer unit,
comrised of all or less than
all of the entire body of
emloyees in the emloyer
unit or any seci.c
occuational or geograhical
grouing within such
emloyer unit"
What is
What is
=L&8s rimary function,
considering all legally
relevant factors"
=argaining Unit may be
determined following the four
recogni-ed modes:
Substantial Mutual +nterests
rincile or community or
mutuality of interests rule
/ill of the Emloyees 0Alobe
Collective =argaining ?istory
Emloyment Status
Mutual !nterests
Mutual !nterests
Emloyees sought to be
reresented must ha.e
substantial mutual
interests in terms o%
employment and &orking
Characteri-ed by similarity of
emloyment status, same
duties and resonsibilities
and substantially similar
comensation and wor%ing
Mutual !nterests
Mutual !nterests
#here must be a logical basis
for the formation of a
bargaining unit"
Adherence to the adage
HStrength in 2umbersJ
Aeograhical location can be
comletely disregarded if
communal or mutual
interests of the emloyees
are not sacri.ced"
?owever, if emloyers in two
lants are clearly distinct,
each grou of emloyees in
the lants are treated as
searate units 0;iatagon vs"
Cases, "ubstantial
Cases, "ubstantial
Mutual !nterests
Mutual !nterests
SMC Emloyees Union vs"
Confesor, 0A& 2o" 444:<:,
Se" 455<1
3hiltranco Service
Enterrises vs" =L&, 0A& 2o"
6DB@B, Gun" 45651
SMC vs" Laguesma 0A& 2o"
4EE@6D, Se" 455@1
SMC Suervisors and Exemt
Emloyees Union vs"
Laguesma 0A& 2o" 44EB55,
Aug" 45571
Cases, "ubstantial
Cases, "ubstantial
Mutual !nterests
Mutual !nterests
St" Games School of Nue-on
City vs" Samahang
Manggagawa sa St" Games
School of Nue-on City 0A&
2o" 4D4B:<, 2ov" :B, :EED1
Clobe Doctrine
Clobe Doctrine
Alobe Machine and Staming
Co", B 2"L"&"=" :5@ 045B71,
A etitioning union claimed
that there were three searate
bargaining units in the lant,
whereas an intervening union
argued for treating the lant as
one overall unit"
#he US 2L& =oard found that
either arrangement would
result in aroriate bargaining
units, and concluded that the
)uestion was so evenly
balanced that the determining
factor should be the desire of
the emloyees themselves"
Clobe Doctrine
Clobe Doctrine
Alobe Machine and Staming
Co", B 2"L"&"=" :5@ 045B71,
Each of the three searate
units was given the oortunity
to vote for the etitioning union
0and reresentation as a
searate unit1, the intervening
union 0and reresentation as
an overall unit1, or no union"
#he Alobe rocedure
thereby allows emloyees Qto
determine the scoe of a unit
by allowing them to cast a vote
for each of several otential
units which the =oard has
determined are aroriate"Q
Clobe Doctrine
Clobe Doctrine
US Case: Alobe Machine K
Staming Co" 0B 2L&= :5@,
In *eDnin3 t%e
appropriate 0ar3ainin3
)nit, E t%e *eter-inin3
1actor is t%e *esire o1 t%e
Aor+ers t%e-selves.
Conse<)entl., a
certiDcation election
s%o)l* 0e %el* separatel.
to c%oose A%ic%
representative )nion Aill
0e c%osen 0. t%e
3rior collective bargaining
history and a*nity of
emloyees should be
considered in determining
the aroriate bargaining
#he existence of a rior
collective bargaining history
is neither decisive nor
conclusive in the
determination of what
constitutes an aroriate
bargaining unit 0see SMC vs"
Laguesma, 2A,#U vs" Mainit
Lumber ;evt" Comany
/or%ers Union1
C0 Fistory .s.
C0 Fistory .s.
Mutuality o%
Mutuality o%
2A,#U vs" Mainit P SC alied
mutuality of interest among
wor%ers in sawmill division
and logging division, desite
the history of divisions being
treated as searate units and
geograhical distance 0see
also SMC vs" Laguesma1
Casual emloyees and those
emloyed on day'to'day
basis P must be considered
searate because there is no
mutuality of interest
03hiliine Land'Air'Sea
Labor Union vs" C+&, A& 2o"
L'4@<D<, 2ov" 45<E1
Con.dential emloyees
cannot be allowed to be
included in ran%'and'.le
bargaining units
=elyca Cororation vs" ,errer'
Calle(a 0A& 2o" 77B5D, 2ov"
"election o%
"election o%
Certi.cation Election
Consent Election
Loluntary &ecognition
3rocess of determining by
secret ballot the sole and
e:clusi.e bargaining
agent of the employees in
an appropriate bargaining
unit, for uroses of
collecti.e bargaining"
2o longer necessary under
the following circumstances
Loluntary recognition of the
Emloyees designate the union
as the bargaining reresentative
Crgani-ed establishments
Petition )uestioning the
ma(ority status of the incumbent
bargaining agent is 'led with
the ;CLE during the K,8day
%reedom period
;eri'cation of 3etition
"upport o% at least /HO o% all
employees in bargaining unit
+n unorgani-ed
establishments, certi.cation
election shall be
HautomaticallyJ conducted
uon the .ling of a etition
by a legitimate labor
Party Ailing
Party Ailing
Legitimate labor
organi<ation, or
>mployer, when re)uested
by a labor organi-ation to
bargain and status of
organi-ation is in doubt"
2ote: Art" :<@'A P Emloyer
is a bystander in etitions of
certi.cation election"
Emloyer8s articiation
limited to:
=eing noti.ed or informed of
etitions of such nature
Submitting list of emloyees to
Med'Arbiter during re'election
Petition %or
Petition %or
May be .led at any time in
the absence of a C=A,
Certi.cation year'bar rule
=argaining deadloc% bar rule
Contract bar rule
Petition %or
Petition %or
Certi.cation year'bar rule P A
certi.cation election may not
be .led within one year from
the date of a valid
certi.cation, consent or run'
o! election, or one year from
the date of voluntary
Petition %or
Petition %or
=argaining deadloc%'bar rule"
=efore the .ling of a etition for
certi.cation election, the duly
recogni-ed or certi.ed union has
commenced negotiations with
the emloyer within the one'
year eriod from the date of a
valid certi.cation, consent or
run'o! election or voluntary
A bargaining deadloc% to which
an incumbent or certi.ed
bargaining agent is a arty had
been submitted to conciliation or
arbitration or become the
sub(ect of a valid notice of stri%e
or loc%out"
Cases, 0argaining
Cases, 0argaining
Deadlock Rule
Deadlock Rule
Saisahan ng Manggagawang
3iliino 0Samil'Satiunan1
vs" #ra(ano 0A& 2o" 7D64E,
Set" 45541
Caitol Medical Center
Alliance of Concerned
Emloyees'US,/ vs"
Laguesma 0A& 2o" 44654D,
,eb" 45571
Contract 0ar Rule
Contract 0ar Rule
#he =L& shall not entertain
any etition for certi.cation
election or any other action
which may disturb the
administration of duly
registered existing collective
bargaining agreements
a!ecting the arties"
<E'day ,reedom 3eriod
C=A is not registered with
the =L&
C=A contains rovisions
lower than statutory
,alsi.ed, fraudulent or
misreresented documents
+ncomlete C=A
Collective bargaining and
negotiations entered into
rior to the <E'day freedom
+nternal strife in the union
resulting in an industrial
disute which does not foster
industrial eace"
Petition %or
Petition %or
>lection, )ther
>lection, )ther
Crounds %or
Crounds %or
3etitioner is not listed in
;CLE8s registry of legitimate
labor organi-ations, or whose
registration is revo%e or
cancelled with .nality
3etition .led outside of
freedom eriod, rovided
that the <E day eriod based
on the original C=A shall not
be a!ected by any
amendment, extension or
renewal of the C=A
,ailure to submit :DU
suort re)uirement for .ling
of etition
Consent >lection
Consent >lection
Loluntarily agreed uon by
the arties with or without
the intervention of the ;CLE
>lection .s.
>lection .s.
Consent >lection
Consent >lection
Certi.cation Election P to
determine the sole and
exclusive bargaining agent of
all the emloyees in an
aroriate bargaining unit
for the urose of collective
Consent Election P to
determine the issue of
ma(ority reresentation of all
wor%ers in the aroriate
collective bargaining unit
mainly for the urose of
determining the
administrator of the C=A9 not
for the urose of
determining the bargaining
agent for uroses of
collective bargaining"
3rocess whereby the
emloyer recogni-es a labor
organi-ation as the exclusive
bargaining reresentative of
the emloyees in the
aroriate bargaining unit
after a showing that the labor
organi-ation is suorted by
at least a ma(ority of the
emloyees in the bargaining
Available only in unorgani-ed
/hat is Certi.cation
Certi.cation election is a
rocess of determining
through secret ballot the sole
and exclusive bargaining
agent 0SE=A1 of all the
emloyees in an aroriate
bargaining unit for the
urose of collective
:" /here does a union .le a
etition for certi.cation
election 03CE1V
A 3CE is .led at the &egional
C*ce which issued the
certi.cate of etitioning
union8s certi.cate of
registrationMcerti.cate of
creation of chartered local"
B" /hat are the re)uirements
in .ling a 3CEV
Among the imortant
re)uirements are the
a1 A statement indicating
any of the following:
#hat the bargaining unit is
unorgani-ed or that there is
no registered C=A covering
the emloyees in the
bargaining unit9
+f there exists a duly
registered C=A, that the
etition is .led within the
sixty'day freedom eriod of
such agreement9
+f another union had been
reviously recogni-ed
voluntarily or certi.ed in a
valid certi.cation, consent or
run'o! election, that the
etition is .led outside the
one'year eriod from entry of
voluntary recognition or
conduct of certi.cation or
run'o! election and no
aeal is ending thereon"
b1 +n an organi-ed
establishment, the signature
of at least twenty'.ve 0:DU1
ercent of all emloyees in
the aroriate bargaining
unit shall be attached to the
etition at the time of its
.ling 0Section @, &ule L+++, of
the ;eartment Crder 2o"
@" /hat haens after
receit of the 3CEV
#he etition will be raWed to
the Med'Arbiter for
reliminary conference to
determine, among others,
the bargaining unit to be
reresented, the contending
unions, and the ossibility of
consent election"
D" /hat haens uon
aroval of the conduct of
certi.cation election by the
#he 3CE will be endorsed to
an election o*cer for the
conduct of re'election
conference wherein the date,
time and lace of election
will be identi.ed, the list of
challenged and eligible
voters will be made, as well
as the number and location
of olling laces"
<" May a 3CE be deniedV
Tes, a 3CE may be denied if:
a1 it was .led before or
after the freedom eriod of a
registered C=A9
b1 the etitioner union is
not listed in the ;CLE
&egistry of legitimate labor
organi-ation9 or
c1 the legal ersonality of
the etitioner'union has been
revo%ed or cancelled with
7" /ho will conduct the CEV
#he ;CLE &egional C*ce
through the election o*cer
conducts the certi.cation
6" ?ow is the SE=A
#he union that garners
ma(ority of the valid votes
cast in a valid certi.cation
election shall be certi.ed as
the SE=A"
5" May election rotest be
Tes, but rotest should have
been .rst recorded in the
minutes of the election
4E" /hat haens if the
etitioner union fails to
garner the ma(ority of the
valid votes castV
#here will be no SE=A, but
another 3CE may be .led one
year thereafter"
4E" /hat haens if the
etitioner union fails to
garner the ma(ority of the
valid votes castV
#here will be no SE=A, but
another 3CE may be .led one
year thereafter"
44" /hat are the re)uisites
for certi.cation election in
organi-ed establishmentsV
Certi.cation election in
organi-ed establishments
re)uires that:
a1 a etition )uestioning
the ma(ority status of the
incumbent bargaining agent
is .led before the ;CLE
within the <E'day freedom
b1 such etition is veri.ed9
c1 the etition is suorted
by the written consent of at
least twenty'.ve ercent
0:DU1 of all emloyees in the
bargaining unit"
4:" /hat is the re)uirement
for certi.cation election in
unorgani-ed establishmentsV
Certi.cation election in
unorgani-ed establishments
shall HautomaticallyJ be
conducted uon the .ling of
a etition for certi.cation
election by an indeendent
union or a federation in
behalf of the chartered local
or the localMchater itself"
4B" May an emloyer .le a
Tes, the emloyer may .le a
3CE if it is re)uested to
bargain collectively"
4@" May an emloyer extend
voluntary recognition to a
legitimate labor organi-ation
without .ling a 3CEV
Tes, management may
voluntarily recogni-e a union
if there is no other union in
the comany and if other
re)uirements are comlied
with 0Sec" :, &ule 7 of ;"C"
4D" /hat is the role of
emloyer in certi.cation
#he emloyer shall not be
considered a arty to a
etition for certi.cation
election, whether it is .led by
an emloyer or a legitimate
labor organi-ation, and shall
have no right to oose it" +ts
articiation shall be limited
only to being noti.ed or
informed of etition for
certi.cation election and
submitting the certi.ed list of
emloyees or where
necessary, the ayrolls
0Emloyer as =ystander
A negotiated contract
between a legitimate labor
organi-ation and the
emloyer concerning wages,
hours of wor% and all other
terms and conditions of
emloyment in a bargaining
;eemed as the law between
the arties during its lifetime
3rovisions are construed
Legal Principles
Legal Principles
Applicable to C0A
Applicable to C0A
A roosal not embodied in
the C=A is not art thereof
Minutes of C=A negotiation
have no e!ect if not
incororated in the C=A
Ma%ing a romise during the
C=A negotiation is not
considered bad faith
Adamant stance resulting in
imasse is not bad faith
2o terms and conditions may
be imosed by the ;CLE or
any other agency which the
law and the arties did not
intend to re$ect in the C=A
Signing bonus is not
demandable under the law
Allegations of bad faith are
erased with the signing of
the C=A
0argaining, @inds
0argaining, @inds
Single Enterrise
=etween on certi.ed labor union
and one emloyer
Multi'Emloyer =argaining
=etween and among several
certi.ed labor unions and
Cnly LLCs that are the SE=A may
articiate and negotiate
Cnly emloyers with counterart
LLCs which are incumbent
bargaining agents may articiate
Emloyers must consent to multi'
enterrise bargaining may
Duty to 0argain
Duty to 0argain
/here there is yet no C=A:
Comliance to Article :D<, LC
Er and union must MEE#,
CC2LE2E and CC2,E& for
collective bargaining uroses
&e)uisites of collective
bargaining must be comlied
Er'Ee relationshi
Ma(ority status of bargaining
;emand to negotiate
Advantage where the
negotiations have no recedent
C=A: Clean slate, unencumbered
by revious agreements
Duty to 0argain
Duty to 0argain
/here there exists a C=A
2either arty shall terminate nor
modify such agreement during
its lifetime"
3arties may serve notice to
terminate or modify agreement
during freedom eriod
3arties to %ee the status )uo
during freedom eriod until new
agreement is reached"
ReDuisites in
ReDuisites in
Relation to C0A
Relation to C0A
3osting of C=A
3osted in two consicuous
laces in the wor% remises, at
least .ve days rior to
Mandatory re)uirement9 non'
comliance will result in
ine!ectiveness of C=A 0A#U vs"
#ra(ano, 45661
Emloyer resonsible for osting
0ALU vs" ,errer'Calle(a, May
&ati.cation by Ma(ority of
Emloyees in =argaining Unit
&egistration of C=A
Re%usal to
Re%usal to
+gnoring all notices for
negotiation and re)uests for
&efusing to bargain anew on
economic terms of the C=A,
using $imsy excuses such as
)uestioning union
2ot serving an answer
All the above are indications
of bad faith
Re%usal to
Re%usal to
Emloyer who violates the
duty to bargain collectively
loses its statutory right to
negotiate or renegotiate
terms and conditions of the
draft C=A9 and may imose
the adotion of the roosals
of the union as the C=A
Aeneral Milling Cororation vs"
Sio% Loy vs" 2L&C
;ivine /ord University of
#acloban vs" SCLE
Li%etime o% a C0A
Li%etime o% a C0A
&eresentation asect P D
years, meaning no etition
)uestioning the ma(ority
status of the incumbent
agent shall be entertained by
Economic and non'economic
rovisions excet
reresentation renegotiated
not later than three years
after its execution
Retroacti.ity o%
Retroacti.ity o%
2ew C=A concluded by
#he C=A or other rovisions of
such agreement entered into
within < months from exiration
of term shall retroact to the day
immediately following date of
+f entered into beyond < months,
arties shall agree on e!ectivity
C=A concluded through
arbitral award
LMA Chemicals Cororation vs"
Secretary of ;CLE, 0A& 2o"
4:7@::, Aril :EE41
0reaking the
0reaking the
Conciliation and Mediation
with 2CM=, ;CLE
;eclaration of Stri%e or
&eferral to conciliation or
voluntary arbitration
Crie.ance and
Crie.ance and
Any )uestion by Er or union
interretation or alication of
the C=A, or
comany ersonnel olicies, or
Any claim by either arty that
the other arty is violating the
C=A or comany ersonnel
Comlaint or dissatisfaction
arising from the
interretation or
imlementation of C=A and
those arising from
interretation or enforcement
of ersonnel olicies"
&efers to mechanism for the
ad(ustment and resolution of
grievances arising from the
interretation or
imlementation of a C=A and
those arising from the
interretation and
enforcement of comany
ersonnel olicies"
+nternal rules of rocedure
established by the arties in
their C=A with voluntary
arbitration as the terminal
&efers to the system of
grievance settlement at the
lant level as rovided in the
Consists of successive stes
starting at comlainant and
his immediate suervisor, u
to the level of to union and
comany o*cials
All grievances submitted to
the grievance machinery that
are not settled in seven
calendar days from
submission shall be referred
to Loluntary Arbitration
rescribed in the C=A
Loluntary Arbitrators shall be
named and designated in
advance, or include a
rocedure for selection of
+n case arties fail to select
LA, 2CM= shall designate
Mode of settling labor'
management disutes
3arties select a cometent,
trained and imartial third
;ecision based on merits of
the case
;ecision is .nal and
Arbitration .s.
Arbitration .s.
Contract'negotiation disutes
#erms and conditions of
Collective bargaining issues
Snown as arbitration of
Contract interretation
Arises out of existing C=As
Snown as arbitration of
HgrievanceJ or HrightsJ
!nterplay o%
!nterplay o%
1urisdiction, Labor
1urisdiction, Labor
Arbiters .s.
Arbiters .s.
Gurisdiction of LA P Article
Gurisdiction of LA' Article :<7,
+nterretation or
imlementation of C=A are
disosed of by LAs by
referring the matter to the
grievance machinery, of
which the terminal ste is
voluntary arbitration
Under Article :<6, LAs may,
uon voluntary agreement of
the arties hear and decide
ALL other labor disutes
including UL3 and bargaining
!nterplay o%
!nterplay o%
1urisdiction, Labor
1urisdiction, Labor
Arbiters .s.
Arbiters .s.
#ermination disutes may fall
within the (urisdiction of LAs,
rovided that the arties had
agreed in une)uivocal
language that the
termination disute would be
referred to the grievance
machinery and voluntary
San Gose vs" 2L&C K Ccean
#erminal Services 0A&
4:4::7, Aug" 45561
San Miguel Cororation vs"
Sanyo 3hiliines /or%ers
Union vs" Cani-ares, A& 2o"
4E4<45, Guly 455:
Any erson accredited by
2CM= as such, or
Any erson named or
designated in the C=A as
such, or
Cne aointed by the 2CM=
in case either arty refuses
to submit to voluntary
2ote that LAs are not art of
;CLE or any government
agency" ?is authority to
render arbitral awards are
vested by law"
>n%orcement o%
>n%orcement o%
;A=s Decision
;A=s Decision
Article :<6'A: Uon motion of
any interested arty, the LA
may issue a writ of execution
re)uiring the sheri! of the
2L&C or regular courts or
ublic o*cials whom the
arties may designate in the
submission agreement
Lockouts and
Lockouts and
3eole lanning and acting
Cne underta%en by two or
more emloyees, or by one
on behalf of others"
#emorary stoage of wor%
by the concerted action of
the emloyees as a result of
an industrial or labor disute"
Consists not only of
concerted wor% stoages
but also sitdowns, mass
leaves, slowdowns, attemts
to damage, destroy or
sabotage lant e)uiment or
facilities and similar
Cessation of wor% by
emloyee in an e!ort to get
more favorable terms for
Concerted refusal by
emloyees to do any wor% for
their emloyer, or wor% at
their customary rate of seed
until the ob(ect of stri%e is
attained by emloyer8s
Characteristics o%
Characteristics o%
Established relationshi
between stri%ers and ersons
against whom the stri%e is
&elationshi must be of
Existence of disute between
the arties and the utili-ation
by labor of the weaon of
concerted refusal to wor% as
a means of ersuading or
coercing comliance to
Characteristics o%
Characteristics o%
Even though wor% cessation
is by Hbelligerent susension,
Emloyment relation still
/or% stoage is temorary
Concerted action by
Stri%ing grou is a LLC, and
in the case of bargaining
deadloc%, the sole
bargaining reresentative
#emorary stoage of wor%
by reason of refusal of an
emloyer to furnish wor% as
a result of an industrial or
labor disute
An emloyer8s means of
rotecting his bargaining
Emloyer must show that his
act is rimarily defensive,
and not an act of hostility to
collective bargaining or of

;alid Lockouts
;alid Lockouts
#o forestall threatened acts
of sabotage 0&i-al Cement
/or%ers Union vs" Madrigal
+n anticiation of a
threatened stri%e where
motivated by economic
+n resonse to unrotected
stri%e or wal%out
+n resonse to a whisaw
A right given to wor%ers to
eacefully march to and from
before an establishment
involved in a labor disute
accomanied by the carrying
and dislay of signs, lacards
and banners intended to
inform the ublic about the
Picketing Allo&ed
Picketing Allo&ed
by La&
by La&
+ncluded in the constitutional
to engage in concerted activities
for uroses of collective
bargaining for their mutual
bene.t and rotection
,reedom of seech rincile
Can be erformed by ersons
even in the absence of Er'Ee
&ight to eaceful ic%eting
should be exercised with due
resect to the right of others9
coercion, intimidation or acts
of violence are strictly
3ic%eters cannot rightfully
revent emloyees of
another comany which is
not their emloyer from
entering or leaving their
rented remises 0innocent
@inds o% "trikes
@inds o% "trikes
Aeneral P occur over a whole
community, rovince, state or
country" An extended form of
symathetic stri%e9 many
wor%ers sto wor%ing to ut
ressure on government or
araly-e economic K social
Local or 3articular P alies only
in a articular enterrise or
@inds o% "trikes
@inds o% "trikes
2ature of the Act
Sitdown Stri%e P 3ossession,
tresass and revention of
access and oeration
Slowdown P reduction of
roduction outut
3artial or )uic%ie stri%e P
intermittent, unannounced wor%
stoage9 used interchangeably
with wildcat stri%e
@inds o% "trikes
@inds o% "trikes
Emloyee +nterest
3rimary Stri%e P declared by
emloyees who have a direct
and immediate interest in the
sub(ect of the disute between
them and the Er
Secondary Stri%e P Coercive
measure adoted by wor%ers
against an emloyer connected
by roduct or emloyment with
alleged unfair labor conditions or
Symathetic Stri%e P stri%ing
emloyees have no demands or
grievances of their own, but
stri%e to directly or indirectly aid
others without direct relation to
the advancement of the interest
of the stri%ers"
@inds o% "trikes
@inds o% "trikes
Economic Stri%e P one
intended to force wage and
other concessions from the
emloyer, which he is not
re)uired by law to grant"
Unfair Labor 3ractice Stri%e P
called against the UL3 of the
emloyer, usually for the
urose of ma%ing him desist
from further committing such
ractices" Called for mutual
rotection, and for the
discontinuance of emloyer
A.oidance o%
A.oidance o%
3arties must .rst exhaust
measures or remedies that
will avoid the stri%e, a%in to
the doctrine of Exhaustion of
Administrative &emedies"
Cnly when non'disrutive
alternatives have roved
unsuccessful may stri%es be
deemed (usti.ed"
Guming the gun on the
arbitration of a disute will
mean that the stri%e is
3&EMA#U&E, thus illegal
Premature "trikes
Premature "trikes
+nsurefco 3aer 3ul 3ro(ect
/or%ers Union vs" +nsular
Sugar &e.nery Cororation,
5D 3hil" 4<4
Almeda vs" C+&, 57 3hil" BE<
2ational Labor Union vs"
3himco", 7E 3hil BEE
FGntil all t%e re-e*ies
an* ne3otiations loo+in3
toAar* t%e a*@)st-ent or
settle-ent o1 la0or
*isp)tes %ave 0een
e;%a)ste*, t%e laA *oes
not loo+ Ait% 1avor )pon
resort to ra*ical
-eas)res, t%e pernicio)s
conse<)ences o1 A%ic%
transcen* t%e ri3%ts o1
t%e i--e*iate parties.
0Union of the 3hiliine
Education Emloyees 02LU1
vs" 3ECC, L'@@:B, March B4,
A.oidance o%
A.oidance o%
Cnce an issue has been
submitted for conciliation,
mediation or comromise,
the emloyees cannot resort
to a stri%e"
;iscussions during
conciliation roceedings are
con.dential and treated as
rivileged information
3arties can enter into
comromise agreements to
avoid a stri%e, which
comromise shall be
immediately .nal and
Labor Code
Labor Code
Protecting the
Protecting the
Right to "trike
Right to "trike
Art" :<E P 2ot sub(ect to
labor in(unction or restraining
Art" :D@ P 2o discrimination
against stri%er in the exercise
of the right
Art" :7E0a1 P 3reservation of
emloyment relationshi
Art" :7E0c1 P 3rohibition on
who obstruct, imede or
with any eaceful ic%eting
by emloyees during any
labor controversy a!ecting
wages, conditions of wor% or
in the exercise of their rights
#hrough force, violence,
coercion, threats or
,irst re)uisite: Lalid and
factual ground
041 C=A ;eadloc%9 and
0:1 Unfair labor ractice
Second &e)uisite: 2otice 0of
Stri%e or Loc%out1
041 C=A ;eadloc% ' BE days
from intended date of stri%e
0:1 Unfair labor ractice
0UL31 P 4D days"
#hird re)uisite: 2otice to
2CM=';CLE at least :@ hours
riot to the ta%ing of the stri%e
or loc%out vote 0secret ballot1
;ecision to conduct vote
;ate, time and lace
,ourth &e)uisite: Stri%e or
Loc%out Lote
Ma(ority aroval re)uired
Must be imlemented even
in cases of union'busting
,ifth re)uisite: Stri%eMLoc%out
Lote &eort
Submitted at least seven
days rior to stri%eMloc%out
+f reort submitted during
cooling o! eriod, seven day
waiting eriod begins on the
day following the cooling o!
+f for union busting, cooling
eriod may be disensed
Sixth &e)uisite: Cooling C!
&ec%oned from .ling of
notice of stri%eMloc%out
BE days for deadloc%, 4D for
+f stri%e is for union'busting,
eriod is disensed with
Seventh re)uisite: /aiting
Seven days from submission
of stri%e vote reort
3ota 0ene? "trike
3ota 0ene? "trike
,ailure to comly with re)uisites will
render the stri%e or loc%out illegal"
A stri%e or loc%out based on non'
stri%eable issues is illegal
A stri%e or loc%out is illegal if the
issues involved are already sub(ect of
comulsory or voluntary arbitration
or conciliation or the stes in
grievance machinery are not
A stri%e or loc%out is illegal if unlawful
means were emloyed or rohibited
acts or ractices were committed
0e"g", Use of force, violence, threats,
coercion, etc"9 =arricades, bloc%ades
and obstructions of ingress to
XentranceY or egress from XexitY the
comany remises1"
A stri%e or loc%out is illegal if the
notice of stri%e or notice of loc%out is
already converted into a reventive
mediation case"
3ota 0ene? "trike
3ota 0ene? "trike
A stri%e or loc%out is illegal
if staged in violation of the
H2o'Stri%e, 2o'Loc%outJ
clause in the collective
bargaining agreement"
A stri%e or loc%out is illegal
if staged in violation of a
temorary restraining order
or an in(unction or
assumtion or certi.cation
A stri%e is illegal if staged
by a minority union"
A stri%e or loc%out is illegal
if conducted for unlawful
uroseMs 0e"g": Stri%e to
comel dismissal of
emloyee or to comel the
emloyer to recogni-e the
union or the so'called
HUnion'&ecognition Stri%eJ1
#he local union and not the
federation is liable to ay
damages in case of illegal
#he 2CM= has the authority
to convert a notice of stri%e
.led by the union into a
reventive mediation case if
it .nds that the real issues
raised therein are non'
stri%eable in character"
2CM= has duty to exert all
e!orts at mediation and
conciliation to enable arties
to settle the disute
amicably and in line with the
state olicy of favoring
voluntary modes of settling
labor disutes"
Cnce a notice of
stri%eMloc%out is converted
into a reventive mediation
case, it will be droed from
the doc%et of notices of
Cnce droed therefrom, a
stri%eMloc%out can no longer
be legally staged based on
the same notice" #he
conversion has the e!ect of
dismissing the notice"
!n.alid Crounds
!n.alid Crounds
%or "trike
%or "trike
;iolation o% collecti.e
bargaining agreements,
e:cept those &hich are
gross in character.
!nter8union or intra8
union disputes. A stri%e
declared more on the
ground of inter'union and
intra'union con$ict which is
a non'stri%eable issue is
atently illegal ursuant to
the rovision of aragrah
XbY of Article :<B (noB 23()
of the Labor Code" 0,ilcon
Manufacturing Cororation
vs" La%as Manggagawa sa
,ilcon'La%as Manggagawa
Labor Center XLM,'LMLCY,
A" &" 2o" 4DE4<<, Guly :<,
!n.alid Crounds
!n.alid Crounds
%or "trike
%or "trike
!ssues already assumed
by the D)L> "ecretary
or certi'ed by him to the
3LRC %or compulsory
arbitration. Cnce the
Secretary of Labor and
Emloyment assumes
(urisdiction over a labor
disute a!ecting national
interest or the
same to the 2L&C for
comulsory arbitration, the
issues involved in said labor
disute can no longer be
invo%ed by the union in
staging a stri%e or by
management in conducting
a loc%out"
!ssues already brought
be%ore grie.ance
machinery or .oluntary
arbitration. +n a lethora
of case, it was held that a
stri%e is illegal because of
the failure to exhaust all
the stes in the grievance
arbitration rovided for in
the C=A" 0Union of ,iliro
Emloyees, vs" 2estle
3hiliines, +nc", A" &" 2o"
6674E'4B, ;ec" 45, 455E1"
!llegal "trikes
!llegal "trikes
#hose that are exressly
rohibited by law
;oes not comly with
statutory re)uirements
;eclared for an unlawful
Emloys unlawful means
+n violation of an existing
+n violation of assumtion
or certi.cation order
Liolation of no'stri%e, no'
loc%out clause
Minority union calls stri%e
Stri%e by a non'registered
3remature stri%e
Assumption o%
Assumption o%
Cccurs when labor disute
that caused or may cause
stri%e is in an industry
indisensable to the national
;CLE Secretary assumes
(urisdiction and
May decide the case, or
Certify the same to the 2L&C for
comulsory arbitration
#he ower of assumtion of
(urisdiction over labor
disutes in these industries is
in the nature of the 3CL+CE
3C/E& measure
>Jects o%
>Jects o%
Automatically en(oins
intended or imending stri%e
or loc%out
All stri%ing or loc%ed out
emloyees shall return to
wor% immediately
2ote that stri%ing emloyees are
not considered to have
abandoned their emloyment,
but only ceased from their labor
Emloyer shall resume
oerations and admit all
wor%ers under same
conditions re'stri%e
2o Motion for
&econsideration will stay the
assumtion order
Wages to be paid
Wages to be paid
during strike
during strike
2o wor%, no ay rule alied
UL3 stri%e
Unconditional and voluntary
o!er to return to wor% is refused
by emloyer
Emloyees are discriminated
against desite a &#/C
2on'articiating emloyees
were loc%ed out by emloyer
&einstatement no longer
Article :7E ' 2ote
rohibitions on:
Labor Crgani-ations
#hird 3ersons
3ublic C*cials or Emloyees
Return to Work
Return to Work
En(oins stri%ing wor%ers to
&E#U&2 #C /C&S
;e.ance of &#/C is
considered an illegal act
Stri%e becomes illegal
;e.ant stri%ers may be
sanctioned with discilinary
measures, e"g" dismissal or
loss of emloyment status or
criminal rosecution
!mpro.ed )Jer
!mpro.ed )Jer
2CM= shall conduct a
referendum by secret ballot
on or before BEth day of the
+f ma(ority of union members
accet o!er
Stri%ing wor%ers shall return to
wor% immediately
Emloyer readmits stri%ing
wor%ers uon signing of
+nitiated when EM3LCTE&
ma%es an o!er that is, in his
oinion, better than his
revious stance in the labor
Reduced )Jer
Reduced )Jer
2CM= shall conduct a
referendum by secret ballot
on or before BEth day of the
+f ma(ority of board
members, trustees or
directors accet o!er
Loc%ed out wor%ers shall return
to wor% immediately
Emloyer readmits wor%ers uon
signing of agreement
+nitiated when S#&+SE&S
ma%e an o!er that is, in their
oinion, more accetable
than their revious stance in
the labor disute
Security of #enure
#ermination of Emloyment
"ecurity o% (enure
"ecurity o% (enure
;e.ned: #he constitutional
right granted the emloyee
that the emloyer shall not
terminate the services of an
emloyee excet for GUS#
CAUSE, or when
AU#?C&+OE; =T LA/"
+t extends to regular 0ran%
and .le, managerial1 as well
as non'regular emloyment
0robationary, seasonal,
Alies as rotection from
unwarranted and
unconsented demotion and
@inds and Aorms
@inds and Aorms
o% >mployment
o% >mployment
Article :6<
Cther forms
,ixed 3eriod
Emloyee has been engaged
to erform activities which
are usually necessary or
desirable in the usual
business or trade of the
Cne year of service has been
rendered, whether
continuous or bro%en, with
resect to the activity in
which he is emloyed
Regular "tatus
Regular "tatus
2ature of /or% #est P
/hether or not there is
reasonable connection
between the articular
activity erformed by the
emloyee in relation to the
usual business or trade of the
3eriod of Service #est P
Emloyee8s length of service
is at least one year, whether
continuous or bro%en
3robationary Emloyee #est P
/hether or not the emloyee
is allowed to wor% after the
lase of the robationary
Emloyee has been engaged
to erform activities which
are not necessary or
desirable in the usual trade
or business of the emloyer
Cnce a casual emloyee has
rendered at least one year of
service, his status becomes
#he urose of this rule is to
honor the constitutional
guarantee of security of
tenure and right to self'
Emloyee has been engaged
for a S3EC+,+C ro(ect or
the comletion or
termination of the ro(ect has
been determined at the time
of engagement of the
&EAULA& S#A#US vested
Continuous re'hiring of ro(ect
emloyees even after the
cessation of a ro(ect for the
same tas%s or nature of tas%s
#as%s erformed by ro(ect
emloyee are vital, necessary
and indisensable to the usual
business or trade of the
Pro-ect >mployees
Pro-ect >mployees
Exodus +nternational
Construction Cororation, et
al" v" Auillermo =iscocho, et
al", A"&" 2o" 4<<4E5, ,eb"
#wo tyes of emloyees in the
construction industry:
3ro(ect emloyees or those
emloyed in connection with a
articular construction ro(ect or
hase thereof and such
emloyment is coterminous with
each ro(ect or hase of the
ro(ect to which they are
2on'ro(ect emloyees or those
emloyed without reference to
any articular construction ro(ect
or hase of a ro(ect9 when one
ro(ect is comleted, emloyees
are automatically transferred to
the next ro(ect awarded to
emloyer" #here was no
emloyment agreement given
emloyees which clearly selled
out the duration of their
emloyment and the seci.c wor%
to be erformed and there is no
roof that they were made aware
of these terms and conditions of
their emloyment at the time of
Ai:ed Period
Ai:ed Period
Emloyment is for a re'
determined eriod
established at the time of
Lalidity of ,ixed 3eriod
.xed eriod of emloyment
was %nowingly and voluntarily
agreed uon by the arties
without any force, duress, or
imroer ressure being
brought to bear uon the
emloyee and absent any
other circumstances vitiating
his consent9 or
+t satisfactorily aears that
the emloyer and the
emloyee dealt with each
other on more or less e)ual
terms with no moral
dominance exercised by the
former or the latter" (7.nvil
/is%in3 Hnterprises, Inc. vs.
An*res . Ariola, et al.,
.!. No. 1819"4, /e0.
Cur laws recogni-e and
resect the exercise by
management of certain
rights and rerogatives" ,or
this reason, courts often
decline to interfere in
legitimate business decisions
of emloyers" +n fact, labor
laws discourage interference
in emloyers8 (udgment
concerning the conduct of
their business" 03hiliine
+ndustrial Security Agency
Cororation vs" Aguinaldo, A"
&" 2o" 4@557@, Gune 4D,
:EED9 Mendo-a vs" &ural
=an% of Lucban, A"&" 2o"
4DD@:4, Guly 7, :EE@1"
An emloyer can regulate,
generally without restraint,
according to its own
discretion and (udgment,
every asect of its business"
0;eles, Gr" vs" 2L&C, A" &" 2o"
4:4B@6, March 5, :EEE1"
#his rivilege is inherent in
the right of emloyers to
control and manage their
enterrise e!ectively"
0Mendo-a vs" &ural =an% of
Lucban, A"&" 2o" 4DD@:4, E7
Guly :EE@1"
>:tent o%
>:tent o%
regulate and control all
aspects o% employment in
their business organi-ations"
Such asects of emloyment
include hiring, &ork
assignments, &orking
methods, time, place and
manner o% &ork, tools to
be used, processes to be
%ollo&ed, super.ision o%
&orkers, &orking
regulations, trans%er o%
employees, &ork
super.ision, lay8oJ o%
&orkers and the
discipline, dismissal and
recall o% &orkers.
03hiliine Airlines, +nc" vs"
2L&C, A" &" 2o" 44D76D, Aug"
@, :EEE1"
Management retains the
rerogative I to change
the &orking hours o% its
employees" 0Sime ;arby
3iliinas, +nc" vs" 2L&C, A"&"
2o" 445:ED, 4D Aril 4556,
:65 SC&A 6<1"
>:tent o%
>:tent o%
>:tent o%
>:tent o%
A transfer means a
movement 041 from one
osition to another of
e)uivalent ran%, level or
salary, without a brea% in the
service9 or 0:1 from one o*ce
to another within the same
business establishment"
0Sentinel Security Agency,
+nc" vs" 2L&C, A" &" 2o"
4::@<6, Set" B, 45561"
3rerogative of management
to transfer an emloyee from
one o*ce to another within
the business establishment
uheld, rovided
#here is no demotion in ran% or
diminution of salary, bene.ts,
and other rivileges, and9
Action is not motivated by
discrimination, made in bad
faith, or e!ected as a form of
unishment or demotion
without su*cient cause"
0Mendo-a vs" &ural =an% of
Lucban, A" &" 2o" 4DD@:4, Guly
7, :EE@9 =enguet Electric
Cooerative vs" ,ian-a, A" &"
2o" 4D6<E<, March 5, :EE@1"
(rans%er, tests
(rans%er, tests
Must be exercised without
grave abuse of discretion
=asic elements of (ustice and
fair lay adhered to"
Emloyer must be able to
show that the transfer is not
unreasonable, inconvenient
or re(udicial to the
emloyee, otherwise, the
emloyee8s transfer is
tantamount to constructive
dismissal" (,%e (%ilippine
A-erican 7i1e an*
eneral Ins)rance Co. vs.
ra-a@e, . !. No.
14#9#3, Nov. 11, 2&&4I
lo0e ,eleco-, Inc. vs.
/loren*o=/lores, . !. No.
14&&92, Sept. 2", 2&&2).
/illiam Endeliseo =arroga vs"
;ata Center College of the
3hiliines, et al", A"&" 2o"
47@4D6, Gune :E44
Constructive dismissal is )uitting
because continued emloyment
is rendered imossible,
unreasonable or unli%ely, or
because of a demotion in ran% or
a diminution of ay" +t exists
when there is a clear act of
discrimination, insensibility or
disdain by an emloyer which
becomes unbearable for the
emloyee to continue his
+t is management rerogative for
emloyers to transfer emloyees
on (ust and valid grounds such
as genuine business necessity,
e"g" .nancial constraints
3o .ested right in
3o .ested right in