Labor Final Draft New

Labor Law Reviewer 2007
LABOR LAW
Labor Law Is a body of statutes, rules, doctrines, which
defines state policies regarding labor and
employment and also governs the rights and
duties of the employer and employee,
respecting terms and conditions employment
by prescribing standards thereof or by
providing legal framework within which these
terms and condition and the employment
relationship may collectively negotiated,
adjusted and administered.
Labor Standards Law Sets out the minimum terms,
conditions and benefits of employment that
the employers must provide or comply with
and to which employees are entitled as a
matter of legal rights.
Labor Relations Law defines the status, rights and duties
including institutional mechanism that
governs the individual and collective
interactions between the employers and
employees and their representatives.
Policies:
- Art.3. Declaration of Basic Policy
1. The State shall:
a. Promote full employment,
b. Ensure equal work opportunities regardless of
sex, age or creed
c. Afford protection to labor.
d. Regulate the relations between workers and
employers.
2. The State shall ensure the right of the workers to:
Just and Humane conditions of work
Self-organization.
Security of tenure.
Collective bargaining.
- Art.43. Statement of objectives of National Manpower
Development program.
1. To develop human resources;
2. To establish training institutions; and
3. To formulate such integrated plans, policies and
programs that will ensure efficient and proper
allocation, development and optimum utilization or the
nations manpower and thereby promote employment
and accelerate economic and social growth.
- Art 211. Declaration of policy:
1. It is the policy of the State;
2. To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion of
social justice and development; and
3. To foster the free and voluntary organization of a
strong and united labor movement.
- Art. XIII, Sec. 3.
- Art. XIII, Sec. 14.
Social Justice The humanization of laws and the
equalization of social and economic forces
by the State so that justice in its rational and
objectively secular conception may at least
be proximated.
Police Power States authority to enact legislation that may
interfere with personal liberty or property in
order to promote the general welfare.
Seven Basic Rights of Workers: (Art XIII of the Constitution)
[POWEERC]
1. Right to Participate in Policy & Decision making
process affecting their rights and benefits as may
be provided by law.
2. Right to Organize themselves.
3. Right to Work under humane conditions.
By: Ruby Rose Tan

4.
5.
6.
7.
Right to Engage in peaceful concerted activities

including strike in accordance with the law.
Right to Enjoy security of tenure.
Right to Receive a living wage
Right to Conduct collective bargaining or negotiation
with the management.
Individual Constitutional Rights:

D due process of law
E freedom of Expression or freedom of speech
A association
N non-impairment of contracts and obligations
A adequate legal assistance
S speedy disposition of cases
I involuntary servitude
Due process both substantive and procedural
Freedom of Speech only in so far as labor is concern
- Includes picketing under the limitations
provide for by law
Association includes the right to join and not to join.
- One cannot be compelled to join union, unless
the existence of CBA providing a closed shop
agreement, unless further by religious grounds or
already a member of another union.
Closed Shop Only members of the union shall be admitted
as an employee of the establishment.
- Violation of which will result to the their
termination in accordance to due process
provided for by the law.
Non-impairment clause Free to enter to any contract
Adequate legal assistance even those that are not lawyer
are allowed to represent the aggrieved
Involuntary servitude No one can be force to work if he do
not desire so, but he shall be liable for any
damages that may be caused by his refusal
to work.
Art. 4. Labor code.
All
doubts
in
the
implementation and interpretation of
the provisions of this Code, including
its implementing rules and regulations,
shall be resolved IN FAVOR OF
LABOR..
If the law is CLEAR, there is NO room for interpretation. It
is applicable only in case of doubt or ambiguity in the law
or contract entered into by the parties.
RULE: Justice must be served for the deserving, to be
dispensed in the light of the facts and applicable law or
doctrine
Art. 1702 Civil Code In case of doubt, all labor
legislation and all labor contracts shall be construed
in favor of the safety and decent living for the laborer
- Because employer drafts the contracts, rules and
regulations of the company and it is presumed
that the drafting is in their favor.
Art. 1700 Civil code: The relation between capital and
labor are not merely contractual. They are also impressed
with public interest that labor contracts must yield to the
common good. Therefore such contracts are not subject
to the special laws on labor unions, collective bargaining,
strikes and lockouts, closed shop, wages, working
conditions, hours of labor and similar subjects.
Art. 1703 Civil Code No contract which practically
amounts to involuntary servitude, under any guise or
whatsoever, shall be valid.
Notes from the book of Azucena, the lectures of Atty. Adquillen, Atty. Rodriguez and Atty.Lorenzo, and other review materials.
By: Ruby Rose Tan
Recruitment/Placement
Any act of contracting, enlisting, canvassing,
transporting, utilizing, hiring, procuring workers, and
includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether
for profit or not: Provided that any person or entity
which, in any manner, offers or promises for a fee
employment to two or more persons shall be deemed
engaged in recruitment and placement.
GENERAL RULE: No person or entity, other than the
public employment offices, shall engage in the
recruitment and placement of workers. (Art.16)
Exception: Private Sector participation in the recruitment
and placement of workers pursuant to national
development objectives and in order to harness and
maximize the use of private sector resources and
initiative in the development and implementation of
a comprehensive employment program. (Art.25)
Management Prerogatives
Are Bundle of rights which inhere in the employer that allows
it to manage its business freely and without interference from
the government authority, subject only to such limitation as
may be imposed by:
- Law
- CBA
- Fundamental elements of good faith
- Fair play
- And equity.
Except as limited by special laws, an employer is free to

regulate, according to his own discretion and judgment,
all aspects of employment including:
- Hiring
- Work assignments
- Work methods
- Time, place and manner of work
- Tools to be used
- Processes to be followed
- Supervision of workers
- Working regulations
- Transfer of employees
- Work supervision
- Lay-off of workers
- Discipline, dismissal and recall of workers
Management Rights
1. Right to conduct business.
2. Right to prescribe rules.
3. Right to select and hire employees.
4. Right to transfer or discharge employees.
Art. 212, (m) "Managerial employee" is one who is

vested with powers or prerogatives to lay down and
execute management policies and/or to hire,
transfer, suspend, lay-off, recall, discharge, assign
or discipline employees.
Test: Reasonableness of the rules and regulations.

Art. 282. Termination by employer. An employer may
terminate an employment for any of the following
just causes:
(a) Serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or
representative in connection with his work;
(b) Gross and habitual neglect by the employee of his
duties;
(c) Fraud or willful breach by the employee of the trust
reposed in him by his employer or duly
authorized representative;
(d) Commission of a crime or offense by the
employee against the person of his employer or
any immediate member of his family or his duly
authorized representative; and
(e) Other causes analogous to the foregoing.
Power to hire:
- Pre-employment setting qualification standards or
requirements, unless unlawful.
- Employment proper standards must be in
accordance with laws.
Includes changing of working hours. Justified by the

exigencies of the services and it was done in
good faith.
Transfer of employees
- Requisites:
1. Valid and legitimate reasons to transfer
2. No demotion in rank or diminution of his salary,
benefits and other privileges.
- The families, status and concerns of EE must be
considered.
- Valid if the nature of the job so requires.
- When his transfer is not unreasonable, nor
inconvenient, nor prejudicial to him, and it does not
involve a demotion in rank or a diminutions of his
salaries, benefits, and other privileges, the employee
may not complain that it amounts to a constructive
dismissal. Jurisprudence proscribes transfers or
reassignments of employees when such acts are
unreasonable and cause inconvenience or prejudice
to them. [Chu vs. NLRC]
Discrimination prohibited
- It shall be unlawful for any employer to discriminate
against any woman employee with respect to terms
and conditions of employment solely on the account
of their sexes.
- Acts of discrimination:
- Payment of a lesser compensation for work of
equal value.
- Favoring a male EE over a female EE solely on
the account of their sexes.
- It shall be unlawful for an ER to stipulate, as a
condition of employment or continuation of
employment, that a woman EE shall not get married,
or that upon getting married, a woman EE shall be
deemed resigned or separated.
Employment of Children
- Children below fifteen years of age shall not be
employed.
- Except:
1. When the Child works under the sole
responsibility of his parents or legal guardian
and where only members of the employers
family are employed. Provided, however: (a)
that the employment neither endangers his life,
safety, health and morals, nor impairs his
normal development; (b) that the parent or
legal guardian shall provide the said minor with
the prescribed primary and/or secondary
education;
2. Where a childs employment or participation in
public entertainment or information through
cinema, theater, radio or television is essential.
Provided; the employment contract is
concluded by the childs parents or legal
guardian, with the express agreement of the
child concerned and approval of DOLE.
Sexual Harassment any demand, request or requirement of
a sexual favor with the use of authority, influence or
moral ascendancy, and which is done in workrelated or employment environment, education or
training environment.
Wages The remuneration or earnings, however designated,
capable of being expressed in terms of money,
whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of
calculating the same, which is payable by an

ER to an EE under a written or unwritten
contract of employment for work done or to be
done or for services rendered.
- Fixed by Regional Tripartite Wages and Productivity
Board (RTWPB) of the respective region, province
or industries.
- Prohibition against wages:
1. Interference in disposal of wages
2. Withholding of wages and kickbacks
3. Deduction to ensure employment or retention
in employment on kickbacks.
4. Retaliatory measures
5. False payrolls or other record.
Control Test Whether the employer controls or has reserved
the right to control employee not only as to the
results of the work to be done but also as to
the means and method which the same is to be
accomplished. "Among the four (4) requisites",
the Supreme Court stresses that "control is
deemed the most important that the other
requisites may even be disregarded". [Jardin
vs.NLRC]
- In the case of Corporal vs. NLRC it was ruled
that the owner of the barbershop has control
over the barbers and manicurists and therefore
the latter are considered employees of the
establishment. It is not essential that the
employer actually supervised the performance
of their duties. It is enough that the employer
has the right to wield that power.
Labor-only contracting (Prohibited by law)
1. Where the person supplying the workers to an employer
does not have a substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others; and
2. Where the workers recruited and placed by such
persons are performing activities which are directly
related to the principal business of the employer.
- The contractor or subcontractor merely recruits,
supplies or places workers to perform a job, work or
service for a principal.
- The failure of the contractor to register with DOLE shall
give the presumption that the contractor is engaged in
labor-only contracting.
- The law implies that ER-EE relationship between the ER
and the EE of the labor only contractor to prevent any
violation of the provisions of the Labor Code.
Job Contracting
- A person who:
(a) Carries on an independent business and
undertakes the contract work on his own account
under his own responsibility according to his own
manner and method, free from the control and
direction of his employer or principal in all matters
connected with the performance of the work
except as to the results thereof, and
(b) Has substantial capital or investment in the form of
tools, equipment, machineries, work premises,
and other materials which are necessary in the
conduct of the business. [Corporal vs. NLRC]
Coverage All employees in all establishments, whether for
profit or not, except the following employees:
1. Government employees because terms and
conditions of employment are governed by
the Civil Service Law, rules and regulation.
2. Managerial Employees because of their special
training and expertise and the value of
work cannot be measured in terms of
hours.
3. Field personnel refers to non-agricultural employees
who regularly performs their duties away
from the principal place of business or
branch office of the employer and whose
By: Ruby Rose Tan

actual hours of work in the field cannot be
determined with reasonable certainty.
4. Members of the family of the employer because
they are dependent on him for support
which may exceed the benefits granted by
law.
5. Domestic helpers one who serves for the personal
comfort and enjoyment of his employer.
6. Body Guards person in the personal service of
another.
7. Workers paid by results because their
compensation is computed on the basis of
the work accomplished.
Normal hours of work shall not exceed 8 hours a day
- If required to work on Sundays, 30% increase on
salary for that day, if special days, 50%, and
if special holidays, 30% of his regular wage.
- Health personnel in cities and municipalities with
a population of at least 1M or in hospitals
and clinics with a bed capacity of at least
100 shall hold regular office hours of 8 hours
a days for 5 days a week, exclusive of time
for meals.
- Except: Where the exigencies of the
service require that such personnel work
6 days or 48 hours in which case they
shall be entitled to an additional
compensation of at least 30% of their
regular wage for work on the 6th day.
- On call Engage to wait, compensable, but if
waiting
to
be
engage,
not
compensable.
Night Shift Differential 10 pm to 6 am, entitled to 10% of the
hourly rate except there is a valid and
organized CBA.
Overtime Work service rendered in excess of 8 hours a day.
- 25% of the hourly rate shall be added if during
regular workday.
- 30% of the hourly rate if during special days,
holidays and rest days.
Rest Day Not less than 24 consecutive hours after every 6
consecutive working days.
- Management
prerogative.
However,
the
management shall respect the preference of
the EE as to the rest day when such
preference is based on religious ground.
- 30% of his regular wage if he is required to work
in his scheduled rest day.
- 30% of his regular wage for the work performed
on Sundays or holidays if he has no scheduled
workdays and rest day.
- 50% of his regular wage for the work performed
on holidays falling on his scheduled rest day.
Single Parent Leave -- Refers to the additional 5-day leave
granted to single parents aside from the existing
leave incentive already provided by law, free from
discrimination with regard to other terms and
conditions of contract of employment, liberal in
giving time allowance to leave time for their
children, housing benefits by giving liberal
payment scheme and educational program for
them and their children provided they are
qualified.
- Parental leave leave benefit granted to a solo
parent EE to enable him/her to
perform parental duties and
responsibilities where physical
presence is required.
- Flexible work schedule the right granted to a solo
parent EE to vary his/her arrival
and departure time without
affecting the core hours as
defined by the ER.

- Children those living with and dependent upon
the solo parent for support who
are unmarried, unemployed and
below 18 years of age, or even
18 years and above but are
incapable of self-support and/or
mental and/or physical defect or
disability.
Holidays 2 times pay if required to work, provided EE must
not be absent without pay on the working day
preceding the holiday, unless the same is his
rest day.
- Regular Holidays:
New Years day -- Jan 1
Maundy Thursday
Good Friday
Bataan Day / Araw ng Kagitingan April 9
Labor Day May 1
Independence Day Jun 12
National Heroes Day last Sunday of
August
Bonifacio Day Nov 30
Christmas Day Dec 25
Rizal Day Dec 30
Muslim Holidays
- Special Holidays:
Nov 1
Dec 31
Plebiscite day
- If holiday falls on Sunday:
- If he worked he is entitled to30%+100%
additional to 100% regular wage he
shall receive for that day.
- If he did not he is still entitled to 100%
regular wage, but without any other
additional pays.
Service incentive leave five days leave with pay for every
employee who has rendered at
least one year of service.
- Does not apply if EE is:
- Already enjoying the said benefits;
- Already enjoying vacation leave with pay for at
least 5 days.
- Employed
in
establishments
regularly
employing less than 10 employees; and
- Employed in establishments exempted from
granting this benefit by the Secretary of
Labor.
Vacation and Sick leave is not a statutorily required but it is
a matter of management discretion or a
product of CBA. It must be enjoyed by the
EE in 1 year otherwise it is deemed waived
or forfeited.
Maternity Leave A female member, who need not be legally
married, who has paid for at least 3 months
contribution in the 12-month period
immediately preceding the semester of her
childbirth or her miscarriage shall be paid a
daily maternity benefit equivalent to 100% of
her average daily salary credit for 60 days or
78 days, in case of caesarian delivery,
provided, she shall be paid only for the first
4 deliveries or miscarriage.
Paternity Leave 7 days with full pay, consisting of basic
salary, to all married male employees in the
public and private sector.
- Available only for the first 4 deliveries
(childbirth, miscarriage, or abortion) of his
legitimate spouse with whom the husband is
cohabitating.
13th Month Pay All rank-and-file employees are entitled to
13th month pay regardless of the amount of basic
salary they receive in a month.
By: Ruby Rose Tan

- They are entitled to the benefit regardless
of their designation or employment status, and
irrespective of the method by which their wages are
paid, provided that they have worked for at least one
month during the calendar year.
Self-Organization
I. Concept of the Right to Self-Organization
b. Constitutional provisions/basis
Art. III Sec 8.
The right of the people, including those employed
in the public and private sectors, to form unions,
associations, or societies for purposes not contrary
to law shall not be abridged.
Art XIII Sec 3 Par 2
It shall guarantee the rights of all workers to selforganization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with the law.
c. Underlying reasons
- Because of the apparent inequality of the
employees and employers, the state shall protect
their rights by allowing them to form, join, or assist
labor organization for the purpose of collective
bargaining.
- Obtaining better terms and conditions of
employment through the collective bargaining and
negotiations.
- For securing a fair and just wages and good
working conditions for the laborers and for the
protection of labor against unjust exaction of
capital.
d. Policy of the State on Unionism
Art 211. Declaration of policy.
(a) It is the policy of the State
(b) To promote free trade unionism as an
instrument for the enhancement of
democracy and the promotion of social
justice and development;
(c) To foster the free and voluntary organization
of a strong and united labor movement;
Art 263
STRIKES AND LOCKOUTS
Art. 263. Strikes, picketing and lockouts.
(a) It is the policy of the State to encourage free
trade
unionism
and
free
collective
bargaining.
(b) Workers shall have the right to engage in
concerted activities for purposes of collective
bargaining or for their mutual benefit and
protection. The right of legitimate labor
organizations to strike and picket and of
employers to lockout, consistent with the
national interest, shall continue to be
recognized and respected. However, no
labor union may strike and no employer may
declare a lockout on grounds involving interunion and intra-union disputes.
Art 246
Non-abridgement
of
right
to
selforganization. It shall be unlawful for any person
to restrain, coerce, discriminate against or unduly
interfere with employees and workers in their
exercise of the right to self-organization.
Rule 2 sec 1 D.O.40
It is the policy of the State to promote the free
and responsible exercise of the right to self
organization through establishment of a simplified
mechanism for the speedy registration of labor
unions and workers associations, determination
of representation status and resolution of

inter/intra-union and other related labor relations
disputes. Only legitimate or registered labor
union shall have the right to represent their
members for collective bargaining and other
purposes. Workers association shall have the
right to represent their members for purposes
other than collective bargaining.
e. Right to Self-Organization defined:
Such right shall includes the right to form, join, or
assist labor organizations for the purpose of collective
bargaining through representatives of their own
choosing and to engage in lawful aid and protection,
subject to the provisions of Article 246 of this Code.
The employees have the constitutional right to
choose the labor organization which they desire to
join. The exercise of such right would be rendered
nugatory and ineffectual if they would be denied the
opportunity to choose in a certification election, which
is not a litigation, but a mere investigation of a nonadversary character, the bargaining unit to represent
them. The holding of a certification election is a
statutory policy that should not be circumvented.
[AIRTIME SPECIALISTS vs. FERRER-CALLEJA]
II. Employees covered
A.General coverage
a. Private Sector
Art 243 Coverage and employees' right to selforganization. All persons employed in commercial,
industrial and agricultural enterprises and in religious,
charitable, medical or educational institutions whether
operating for profit or not, shall have the right to selforganization and to form, join or assist labor
organizations of their own choosing for purposes of
collective bargaining.
b. Public Sector
Art. 244. Right of employees in the public service.
Employees of government corporations established
under the Corporation Code shall have the right to
organize and to bargain collectively with their
respective employers. All other employees in the civil
service shall have the right to form associations for
purposes not contrary to law.
c. Other Workers
Ambulant, intermittent and itinerant workers, selfemployed people, rural workers and those without any
definite employers may form labor organizations for
the purpose of enhancing and defending their
interests and for their mutual aid and protection.
Ambulant employees those employees who
has no fixed work.
Intermittent employees those employees who
are temporary in the establishment.
Itinerant employees those employees who
travels from one place to another.
B. Specific Coverage
a. Who May join unions?
(STAGNIS)
S- Supervisory Employees
Rule II Sec 2 D.O. 40. Shall not be eligible for
membership in a labor union of the rank-and-file
employees, BUT may form, join or assist
separate labor union of their own.
- Art. 245, LC. Supervisory employees shall
not be eligible for membership in a labor
organization of the rank-and-file employees but
By: Ruby Rose Tan

may join, assist or form separate labor
organizations of their own.
"Clearly, based on this provision [Article
245], a labor organization composed of both
rank-and-file and supervisory employees is no
labor organization at all. It cannot, for any guise
or purpose, be a legitimate labor organization.
Not being one, an organization which carries a
mixture of rank-and-file and supervisory
employees cannot posses any of the rights of a
legitimate labor organization, including the right
to file a petition for certification election for the
purpose of collective bargaining. It becomes
necessary, therefore, anterior to the granting of
an order allowing a certification election, to
inquire into the composition of any labor
organization whenever the status of the labor
organization is challenged on the basis of Article
245 of the Labor Code." [Tagaytay Highlands
vs. THEU]
The peculiar role of supervisors is such that
while they are not managers, when they
recommend action implementing management
policy or ask for the discipline or dismissal of
subordinates, they identify with the interests of
the employer and may act contrary to the
interests of the rank-and-file.
Thus, if the intent of the law is to avoid a
situation where Supervisors would merge with
the rank-and-file or where the supervisors' labor
organization would represent conflicting interests,
then a local supervisors' union should not be
allowed to affiliate with the national federation of
union of rank-and-file employees where that
federation actively participates in union activity in
the
company.
[ATLAS
LITHOGRAPHIC
SERVICES, INC., vs. LAGUESMA]
T- Terminated Employees / the so-called Dismissed EE
Art 212 (f) "Employee" includes any person in
the employ of an employer. The term shall not be
limited to the employees of a particular employer,
unless this Code so explicitly states. It shall include
any individual whose work has ceased as a result
of or in connection with any current labor dispute or
because of any unfair labor practice if he has not
obtained any other substantially equivalent and
regular employment.
A- Aliens with employment permits
RULE II Sec 2 D.O. 40 Alien employees w/
valid working permits issued by the Department
may exercise the right to self-organization and join
or assist labor unions for purposes of collective
bargaining if they are nationals of a country which
grants the same or similar rights to Filipino workers,
as certified by the Department of Foreign Affairs.
G- Government Employees
Art. 244. Right of employees in the public
service. Employees of government corporations
established under the Corporation Code shall have
the right to organize and to bargain collectively with
their respective employers. All other employees in
the civil service shall have the right to form
associations for purposes not contrary to law.
Art. 276. Government employees. The terms
and conditions of employment of all government
employees, including employees of governmentowned and controlled corporations, shall be
governed by the Civil Service Law, rules and
regulations. Their salaries shall be standardized by
the National Assembly as provided for in the new
constitution. However, there shall be no reduction of
existing wages, benefits and other terms and
conditions of employment being enjoyed by them at
the time of the adoption of this Code.
By: Ruby Rose Tan
N- New Employees
Rule II Sec 2 D.O. 40 Par 2
For purposes of this section, any employee,
whether employed for a definite period or not, shall
beginning on the first day of his/her service, be
eligible for membership in any labor organization.
b. Who cannot join unions?

(N-HE-CAME)
N- Non-employees
- Because no employer-employee relationship
exist as required for the application of the Labor
Code.
I- Iglesia Ni Kristo
Reyes vs. Trajano Case
The INK employees, as employees in the same
bargaining unit in the true sense of the term, do
have the right of self-organization, is also in truth
beyond question, as well as the fact that when they
voted that the employees in their bargaining unit
should be represented by "NO UNION," they were
simply exercising that right of self-organization,
albeit in its negative aspect.
Neither
law,
administrative
rule
nor
jurisprudence requires that only employees
affiliated with any labor organization may take part
in a certification election. On the contrary, the
plainly discernible intendment of the law is to grant
the right to vote to all bona fide employees in the
bargaining unit, whether they are members of a
labor organization or not.
Article 248 (a) declares it to be an unfair labor
practice for an employer, among others, to
"interfere with, restrain or coerce employees in the
exercise of their right to self-organization." Similarly,
Article 249 (a) makes it an unfair labor practice for
a labor organization to "restrain or coerce
employees in the exercise of their rights to selforganization . . ."
Logically, the right NOT to join, affiliate with, or
assist any union, and to disaffiliate or resign from a
labor organization, is subsumed in the right to join,
affiliate with, or assist any union, and to maintain
membership therein. The right to form or join a
labor organization necessarily includes the right to
refuse or refrain from exercising said right. It is selfevident that just as no one should be denied the
exercise of a right granted by law, so also, no one
should be compelled to exercise such a conferred
right. The fact that a person has opted to acquire
membership in a labor union does not preclude his
subsequently opting to renounce such membership.
H- High Level Government Employees

- Sec. 3. EO 180. High-level employees whose
functions are normally considered as policymaking or managerial or whose duties are of a
highly confidential nature shall not be eligible to
join the organization of rank-and-file government
employees.
S- Security Guards
They can join union of rank-and-file employees
but should not due to possible conflict of interests.
UST Case. "When a man joins a labor union (or almost
any other democratically controlled group), necessarily a
portion of his individual freedom is surrendered for the benefit
of all members. He accepts the will of the majority of the
members in order that he may derive the advantages to be
gained from the concerted action of all. Just as the enactments
of the legislature bind all of us, to the constitution and by-laws
of the union (unless contrary to good morals or public policy, or
otherwise illegal), which are duly enacted through democratic
processes, bind all of the members. If a member of a union
dislikes the provisions of the by-laws, he may seek to have
them amended or may withdraw from the union; otherwise, he
must abide by them. It is not the function of courts to decide
the wisdom or propriety of legitimate by-laws of a trade union.
"On joining a labor union, the constitution and by-laws
become a part of the member's contract of membership under
which he agrees to become bound by the constitution and
governing rules of the union so far as it is not inconsistent with
controlling principles of law. The constitution and by-laws of an
unincorporated trade union express the terms of a contract,
which define the privileges and rights secured to, and duties
assumed by, those who have become members. The
agreement of a member on joining a union to abide by its laws
and comply with the will of the lawfully constituted majority
does not require a member to submit to the determination of
the union any question involving his personal rights." [UST vs.
Bitonio]
E- Employees of Cooperatives
- If a member of the cooperative, he is excluded.
He cannot bargain with himself.
- If not a member of the cooperative, he is not
excluded.
- The right to collective bargaining is not available
to an employee of a cooperative who at the same
time is a member and co-owner thereof. With
respect, however, to employees who are neither
members nor co-owners of the cooperative they
are entitled to exercise the rights to selforganization,
collective
bargaining
and
negotiation as mandated by the 1987
Constitution and applicable statutes.
- The fact that the members-employees of
petitioner do not participate in the actual
management of the cooperative does not make
them eligible to form, assist or join a labor
organization for the purpose of collective
bargaining with petitioner. The Court's ruling in
the Davao City case that members of cooperative
cannot join a labor union for purposes of
collective bargaining was based on the fact that
as members of the cooperative they are coowners thereof. As such, they cannot invoke the
right to collective bargaining for "certainly an
owner cannot bargain with himself or his coowners." [Cooperative Rural Bank of Davao
City, Inc. v. Ferrer-Calleja,]. It is the fact of
ownership of the cooperative, and not
involvement in the management thereof, which
disqualifies a member from joining any labor
organization within the cooperative. Thus,
irrespective of the degree of their participation in
the actual management of the cooperative, all
members thereof cannot form, assist or join a
labor organization for the purpose of collective
bargaining.
A cooperative . . . is by its nature different
from an ordinary business concern being run
either by persons, partnerships, or corporations.
Its owners and/or members are the ones who run
and operate the business while the others are its
employees. As above stated, irrespective of the
number of shares owned by each member they
are entitled to cast one vote each in deciding
upon the affairs of the cooperative. Their share
capital earn limited interest. They enjoy special
privileges as ---- exemption from income tax and
sales taxes, preferential light to supply their
products to State agencies and even exemption
from the minimum wage laws.
An employee therefore of such a cooperative
who is a member and co-owner [BENECO vs.
Ferrer-Calleja]
C- Confidential Employees
- They are entrusted with confidence on delicate
matters or with the custody, handling or care and
protection of the employers property. By the very
nature of their functions, they assist and act in a
confidential matters to, or have access to

confidential matters of persons who exercise
managerial functions in the field of labor
relations.
- SMC Case. Confidential employees are those
who (1) assist or act in a confidential capacity, (2)
to persons who formulate, determine, and
effectuate management policies in the field of
labor relations. The two criteria are cumulative,
and both must be met if an employee is to be
considered a confidential employee that is, the
confidential relationship must exist between the
employee and his supervisor, and the supervisor
must handle the prescribed responsibilities
relating to labor relations.
The exclusion from bargaining units of
employees who, in the normal course of their
duties, become aware of management policies
relating to labor relations is a principal objective
sought to be accomplished by the ''confidential
employee rule." The broad rationale behind this
rule is that employees should not be placed in a
position involving a potential conflict of interests.
"Management should not be required to handle
labor relations matters through employees who
are represented by the union with which the
company is required to deal and who in the
normal performance of their duties may obtain
advance information of the company's position
with regard to contract negotiations, the
disposition of grievances, or other labor relations
matters."
If these managerial employees would belong
to or be affiliated with a Union, the latter might
not be assured of their loyalty to the Union in
view of evident conflict of interests or that the
Union can be company-dominated with the
presence of managerial employees in Union
membership.
"If access to confidential labor relations
information is to be a factor in the determination
of an employee's confidential status, such
information must relate to the employer's labor
relations policies. Thus, an employee of a labor
union, or of a management association, must
have access to confidential labor relations
information with respect to his employer, the
union, or the association, to be regarded a
confidential employee, and knowledge of labor
relations information pertaining to the companies
with which the union deals, or which the
association represents, will not cause an
employee to be excluded from the bargaining unit
representing employees of the union or
association."
- Confidential employees such as accounting
personnel, radio and telegraph operators, who
having access to confidential information, may
become the source of undue advantage. Said
employee(s) may act as a spy or spies of either
party to a collective bargaining agreement. This
is specially true in the present case where the
petitioning Union is already the bargaining agent
of the rank-and-file employees in the
establishment. To allow the confidential
employees to join the existing Union of the rankand-file would be in violation of the terms of the
Collective Bargaining Agreement wherein this
kind of employees by the nature of their
functions/positions are expressly excluded.
As to the company foremen, while in the
performance of supervisory functions, they may
be the extension or alter ego of the management.
Adversely, the foremen, by their actuation, may
influence the workers under their supervision to
engage in slow down commercial activities or
similar activities detrimental to the policy, interest
or business objectives of the company or
corporation, hence they also cannot join.
By: Ruby Rose Tan

[GOLDEN
CALLEJA]
FARMS,
INC.
vs.
FERRER-
A- AFP and Police Personnel

- Sec. 4. The Executive Order shall not apply to
the members of the Armed Forces of the
Philippines, including police officers, policemen,
firemen and jail guards.
M- Managerial Employees
- Art 245 of the Labor Code. Managerial
Employees are not eligible to join, assist or form
any labor organization.
- "One who is vested with powers or prerogatives
to lay down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees, or to
effectively recommend such managerial actions.
All employees not falling within this definitions are
considered rank-and-file employees for purposes
of this Book."
- The rationale. The interests of supervisors on the
one hand, and the rank-and-file employees on
the other, are separate and distinct. The functions
of supervisors, being recommendatory in nature,
are more identified with the interests of the
employer. The performance of those functions
may, thus, run counter to the interests of the
rank-and-file.
- "The test of 'supervisory or managerial status'
depends on whether a person possesses
authority to act in the interest of his employer in
the matter specified in Article 212 (K) of the Labor
Code and Section 1 (m) of its Implementing
Rules and whether such authority is not merely
routinary or clerical in nature, but requires the
use of independent judgment. [Pagkakaisa ng
mga Mangagawa vs. Ferrer-Calleja}
E- Employees of International Organizations with
immunities
III. Kinds of Unions and Ways of creating legal personality.
1.
Independent union
- Refers to a labor organization operating at the
enterprise level that acquired legal personality
through independent registration under the
provisions of the Labor Code.
2.
Local/charter
- Refers to a labor organization in the private sector
operating at the enterprise level that acquired legal
personality through the issuance of a charter
certificate by a duty registered federation or
national union, reported to the Regional Office and
the Bureau in accordance with the Rules.
3.
Affiliate
- Independent unions that affiliate with Federation,
national union or chartered local which was
subsequently granted independent registration but
did not disaffiliate federation, reported to the
Regional Office and the Bureau in accordance with
the Rules.
- Affiliate contract is required.
4.
Merger
- Refers to a process where a labor organization
absorbs another resulting in the cessation of the
absorbed labor organizations existence, and the
continued existence of the absorbing labor
organization.
5.
Consolidation
- Refers to the creation or formation of a new union
arising from the unification of two or more unions.
By: Ruby Rose Tan

(a) Fifty-pesos (P50.00) registration fee;
(b) The names of its officers, their addresses,
the principal address of the labor organization,
the minutes of the organizational meetings and
the list of the workers who participated in such
meetings;
(c) The names of all its members comprising at
least twenty 20% percent of all the employees in
the bargaining unit where it seeks to operate.
(d) If the applicant has been in existence for
one or more years, copies of its annual financial
reports; and
(e) Four copies of the constitution and by-laws
of the applicant union, the minutes of its adoption
or ratification and the list of the members who
participated in it.
Affiliation
- To strengthen the bargaining power of the union
- Federation will merely act as an agent, and the
union as principal.
Disaffiliation
- Tropical Hut case.
- In the absence of any enforceable provisions of
the CBL or in the federations constitution
preventing the disaffiliation of the local union,
disaffiliation can be made anytime.
- If there is a prohibition:
- Only during the freedom period.
- Except:
- When majority of the members of the
union consented to the disaffiliation.
IV. Registration of Unions
1. Effects of Registration
Registration with the bureau of Labor Relations is
the operative act that gives right to a labor
organization. Registered union becomes a legitimate
labor organization in the sense that it is clothed with
the legal personality to claim representational and
bargaining rights enumerated in Art 242 and 263 of
the Labor code.
The requirement of registration is not a curtailment
of the right to association. It is merely a condition sine
qua non for the acquisition of legal personality by the
labor organizations, associations or unions and the
possession of the rights and privileges granted by law
to labor org.
A valid exercise of police power since the activities
in which labor organizations are engaged affect public
interest which should be protected.
2.
4.
When and where to register.

- For Registration of independent Labor unions,
chartered locals, workers associations shall
be filed with the Regional office where the
applicant principally operates. It shall be
processed by the Labor Relations Division at
the Regional office.
- For registration of federations, national unions or
workers associations operating in more than
one region shall be filed with the bureau or
the regional office, but shall be processed by
the bureau.
Requirements for union registration
a.
Independent
Art. 234. Requirements of registration. Any
applicant labor organization, association or group
of unions or workers shall acquire legal
personality and shall be entitled to the rights and
privileges granted by law to legitimate labor
organizations upon issuance of the certificate of
registration based on the following requirements:
c.
Federation
(a) Proof of the affiliation of at least ten locals

or chapters, each of which must be a duly
recognized collective bargaining agent in the
establishment or industry in which it operates,
supporting the registration of such applicant
federation or national union;
(b) The names and addresses of the
companies where the locals or chapters operate
and the list of all the members in each company
involved.
5.
Action on application
Rule IV Sec 4 D.O. 40. The Regional Office
or the Bureau, as the case may be shall act on
applications for registration or notice of change of
name, affiliation, merger and consolidation within
10 days from receipt either by: (a) approving the
application and issuing the certificate of
registration/acknowledging the notice/report; or
(b) denying application/notice for failure of the
applicant to comply with the requirements for
registration/notice.
6.
Appeal on denial
Rule IV sec 5,6 D.O. 40. The denial may be
appealed to the Bureau if denial is made by the
Regional office or to the Secretary if denial is
made by the Bureau, within 10 days from the
receipt of such notice, on the ground of grave
abuse of discretion or violation of these Rule.
The memorandum of appeal shall be filed
with the Regional office or the Bureau that issued
the denial/return of notice of change of name,
affiliation, merger or consolidation, shall be
transmitted by the Regional Office to the Bureau
or by the Bureau to the Office of the Secretary,
within 24 hours from receipt of the memorandum
of appeal.
The Bureau or the Office of the Secretary
shall decide the appeal within 20 days from
receipt of the records of the case.
Art 263 Labor Code

Only legitimate labor organizations are given
the right to strike.
3.
Local/Charter
1. Charter certificate
2. Constitution and by-laws of the applicant
union, the minutes of its adoption or
ratification and the list of the members
who participated in it.
3. Sets of officers. The names of its officers,
their addresses, the principal address of
the labor organization.
Art.
237.
Additional
requirements
for
federations or national unions. Subject to Article
238 if the applicant for registration is a federation
or a national union, it shall, in addition to the
requirements of the preceding Articles, submit the
following:
Importance of Acquiring Legal personality

a. Rights of Legitimate Labor Org.
Art 242 Labor Code
A. Undertakes activities for benefit of members
B. Sue and be sued
C. Exclusive representative of all employees
D. Represent union members
E. Furnished by employers of audited financial
statements.
F. Own properties
G. Exempted from taxes
b.
V. Cancellation of Union Registration

Art. 239. Grounds for cancellation of union
registration. The following shall constitute grounds for
cancellation of union registration:
(a) Misrepresentation, false statement or fraud in
connection with the adoption or ratification of the
constitution and by-laws or amendments thereto,
the minutes of ratification, and the list of members
who took part in the ratification;
(b) Failure to submit the documents mentioned in the
preceding paragraph within thirty (30) days from
adoption or ratification of the constitution and bylaws or amendments thereto;
(c) Misrepresentation, false statements or fraud in
connection with the election of officers, minutes of
the election of officers, the list of voters, or failure to
subject these documents together with the list of
the newly elected/appointed officers and their
postal addresses within thirty (30) days from
election;
(d) Failure to submit the annual financial report to the
Bureau within thirty (30) days after the losing of
every fiscal year and misrepresentation, false
entries or fraud in the preparation of the financial
report itself;
(e) Acting as a labor contractor or engaging in the "cabo"
system, or otherwise engaging in any activity
prohibited by law;
(f) Entering into collective bargaining agreements which
provide terms and conditions of employment below
minimum standards established by law;
(g) Asking for or accepting attorneys fees or negotiation
fees from employers;
(h) Other than for mandatory activities under this Code,
checking off special assessments or any other fees
without duly signed individual written authorizations
of the members;
(i) Failure to submit list of individual members to the
Bureau once a year or whenever required by the
Bureau; and
(j) Failure to comply with the requirements under Articles
237 and 238
REPRESENTATION ELECTIONS
I. Bargaining Unit
Refers to a group of employees sharing mutual
interest within a given employer unit, comprised of all or
less than all of the entire body of employees in the
employer unit or any specific occupational or
geographical grouping within such employer unit. D. O
40-03
(UP vs. Calleja case) A "bargaining unit" has been
defined as a group of employees of a given employer,
comprised of all or less than all of the entire body of
employees, which the collective interest of all the
employees, consistent with equity to the employer,
indicate to be the best suited to serve the reciprocal
rights and duties of the parties under the collective
bargaining provisions of the law.
A group of employees of a given employer, comprised
of all or less that all the entire body of the employees,
which, consistent with equity to the employer, indicate to
be best suited to serve the reciprocal rights and duties
of the parties under the collective bargaining provision
of the law.
- GENERAL RULE:
- Art. 255. Labor Code. -- Exclusive bargaining
representation and workers' participation in policy
and decision-making.
The labor organization
designated or selected by the majority of the
employees in an appropriate collective bargaining
unit shall be the exclusive representative of the
employee in such unit for the purpose of collective
bargaining. However, an individual employee or
group of employees shall have the right at any time
to present grievances to their employer.
- ONE UNION, ONE-COMPANY POLICY
By: Ruby Rose Tan

- The proliferation of unions in an employer unit is
discouraged as a matter of policy unless there are
compelling reasons which would deny a certain
class of employees the right to self-organization for
purposes of collective bargaining.
Exception: Supervisory employees
who are allowed to form their own
unions apart from the rank-and-file
employees.
- The policy should yield to the right of the
employees to form unions for purposes not contrary
to law, self-organization and to enter into collective
bargaining.
2 companies cannot be treated into a

single bargaining unit even if their
businesses are related.
Subsidiaries or corporations formed out

of former divisions of a mother company
following
a
re-organization
may
constitute a separate bargaining unit.
-
(SMC vs. Laguesma) A unit to be appropriate

must effect a grouping of employees who have
substantial, mutual interests in wages, hours,
working conditions and other subjects of collective
bargaining.
It is readily seen that the employees in the instant
case have "community or mutuality of interests,"
which is the standard in determining the proper
constituency of a collective bargaining unit. It is
undisputed that they all belong to the Magnolia
Poultry Division of San Miguel Corporation. This
means that, although they belong to three different
plants, they perform work of the same nature,
receive the same wages and compensation, and
most importantly, share a common stake in
concerted activities.
Determination of Bargaining Representative

- 4 Factors:
1. The Express will or desire of the employees (Globe
Doctrine)
The desires of all the employees are relevant
to the determination of the appropriate
bargaining unit. The relevance of the wishes of
the employees concerning their inclusion or
exclusion from a proposed bargaining unit is
inherent in the basic right to self-organization.
3 or more unit is possibly be formed in a unit,
the will of the employees is the determining
factor.
2. Substantial and mutual interest
(SMC vs. Laguesma) A unit to be appropriate
must effect a grouping of employees who have
substantial, mutual interests in wages, hours,
working conditions and other subjects of
collective bargaining.
3. Prior collective bargaining history.
4. Employment status, such as:
a. Temporary
b. Seasonal
c. Probationary employees
- 3 modes of acquiring majority representative:
1. Voluntary recognition
- Refers to the process whereby the employer
recognizes a labor organization as the
exclusive bargaining representative of the
employees in the appropriate bargaining unit
after a showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
- The effect of which is the recognition by the
employer as the exclusive bargaining agent
By: Ruby Rose Tan
which may collectively bargain with such

employer.
There must be a demand of the part of the
labor organization before the duty of the
employer to bargain sets-in.
Process of negotiation sets-in upon recognition
by the employer.
Recognition must be reported to the Regional
office.
This must be first resorted before filing a
petition for CE.
(a) Who may file?

Any legitimate labor organization may file a petition
for certification election.
An employer, when requested to bargain collectively.
If there is no existing certified collective bargaining
agreement in the unit, the Bureau shall, after hearing,
order a certification election. All certification cases shall
be decided within 20 working days. Therefore,
establishment must be unorganized (Art 258 of the LC)
2. Consent Election
- Refers to the process of determining the
exclusive bargaining agent through the
voluntary agreement by the parties, with or
without the intervention of the Department.
- Department here is the Med-Arbiter. He is an
official of the Regional Office empowered to
hear and decide inter-union and intra-union
disputes.
In Unorganized establishments
- ANYTIME
- Art. 257. Petitions in unorganized establishments.
In any establishment where there is no certified
bargaining agent, a certification election shall
automatically be conducted by the Med-Arbiter
upon the filing of a petition by a legitimate labor
organization.
(a) When to file?
In Organized establishment
- With registered CBA: within freedom period
- With CBA but unregistered: ANYTIME
3. Certification Election
- Refers to the process of determining by secret
ballot the sole and exclusive bargaining agent
of the employees in an appropriate bargaining
unit for the purposes of collective bargaining
and negotiations.
Ordered by the Department.
It is a well-settled rule that "a certification
Sec 3, Rule VIII D.O.40-03

A petition for certification election may be filed
anytime, except:
(a) When a fact of voluntary recognition has been
entered or valid certification, consent or run-off
election has been conducted within the
bargaining unit within 1 year prior to the filing of
the petition for certification election. Where an
appeal has been filed from the order of the MedArbiter certifying the results of the election, the
running of the 1-year period shall be suspended
until the decision on the appeal has become final
and executory;
(b) When the duly certified union has commenced
and sustained negotiations in good faith with the
employer in accordance with article 250 of the
Labor Code within 1 year referred to in the
immediately preceding paragraph.
(c) When a bargaining deadlock to which an
incumbent or certified bargaining agent is a party
had been submitted to conciliation or arbitration
or had become the subject of a valid notice of
strike or lockout;
(d) When a CBA between the employer and a duly
recognized or certified bargaining agent has been
registered in accordance with Article 231 of the
Labor Code. Where such CBA is registered , the
petition may be filed only within 6 days prior to its
expiry.
proceedings is not a litigation in the sense

that the term is ordinarily understood, but
an investigation of a non-adversarial and
fact finding character."
-
Distinguish from union election

A union election is held pursuant to the
union's constitution and bylaws, and the right to
vote in it is enjoyed only by union members
In a certification election, all employees
belonging to the appropriate bargaining unit
can vote. [Airtime Specialists v. Ferrer-Calleja]
Therefore, a union member who likewise
belongs to the appropriate bargaining unit is
entitled to vote in said election. However, the
reverse is not always true; an employee
belonging to the appropriate bargaining unit but
who is not a member of the union cannot vote
in the union election, unless otherwise
authorized by the constitution and bylaws of
the union. Verily, union affairs and elections
cannot be decided in a non-union activity.
[UST vs. Bitonio]
(a) Requisites for Certification Election

Unorganized Establishment (Art 259)
- Petition for CE
- Filed by a legitimate labor organization.
BAR RULES:
Certification Year Rule No petition for CE may be filed
w/in 1 year from the date of a valid certification,
consent or run-off election or from the date of the
voluntary recognition.
Deadlock Bar Rule A petition for CE cannot be
entertained if, before the filing of the petition for
CE, a bargaining deadlock to which an incumbent
or certified bargaining agent is a party, had been
submitted to conciliation or arbitration or had
become the subject of a valid notice of strike or
lockout.
Contract Bar Rule While a valid and registered CBA is
subsisting, the BLR is not allowed to hold an
election contesting the majority status of the
incumbent.
Organized Establishment (Art 256)

- Verified petition
- Filed by a legitimate labor organization
- 25% consent requirement
- Within the freedom period or 60 day period prior to
the expiration of the CBA.
Unorganized establishment is that where the rank-and-file
has no CBA and no bargaining unit. In which case, the
employer may file a motion to dismiss the petition for CE.
Valid compliance of 25% but there is retraction?
-- There is still a conduct of CE, the latter being the best
way to determine the same. If the retraction is made
before the petition for CE it is considered as voluntary and
otherwise if after.
Section 3, Rule V, Book V of the Omnibus Rules

Implementing the Labor Code, prohibits not the
registration of a new union but the holding of a certification
election "within one year from the dare of issuance of a

final certification election result." Clearly, private
respondent's registration is not covered by the prohibition.
In any event, the union registration was effected in
September 1990, a month before the secretary of labor
issued his decision on the result of the certification
election on October 31, 1990. Hence, there was yet no
certified bargaining agent when the private respondent
was registered as a union. [KAMADA vs. FERRERCALLEJA]
(a) Where to file?
Regional Office
- Where the principal office of ER
- Place of bargaining unit
Sec 2. RULEVIII, D.O. 40-03
A petition for certification election shall be filed
with the Regional Office which issued the
petitioning
unions
certificate
of
registration/certificate of creation of chartered local.
The petition shall be heard and resolved by the
Med-Arbiter.
Where 2 or more petitions involving the same
bargaining unit are filed in one Regional Office, the
same shall be automatically consolidated with the
Med-Arbiter who first acquired jurisdiction. Where
the petitions are filed in different Regional Offices,
the Regional Offices in which the petition was first
filed shall exclude all others; in which case, the
latter shall indorse the petition to the former for
consolidation.
II.
Grounds for denial of the petition for C. E.

Sec 14. D.O 40-03
1. The petitioner is not listed in the Departments registry
of legitimate labor unions or that its legal personality
has been revoked or cancelled with finality in
accordance with the Rules;
2. The petition was filed before or after the freedom
period of a duly registered CBA; provided that the 60day period based on the original CBA shall not be
affected by any amendment, extension or renewal of
the CBA;
3. The petition was filed within 1 year from entry of
voluntary recognition or a valid certification, consent
of run-off election and no appeal on the results of the
certification, consent or run-off election is pending;
4. A duly certified union has commenced and sustained
negotiations with the employer in accordance with
Article 250 of the Labor Code within the 1-year period
referred to, or there exist a bargaining deadlock
which had been submitted to conciliation or arbitration
or had become the subject of a valid notice of strike or
lockout to which an incumbent or certified bargaining
agent is a party;
5. In case of an organized establishment, failure to
submit the 25% support requirement for the filing of
the petition for certification election.
(a) Election Procedures

2. Petition for CE Post in 2 strategic or most
conspicuous
places
in
the
establishment.
-- Incumbent bargaining unit is forced
intervenor of the petition.
3. Order After due hearing of the petition it is issued by
the Med-Arbiter. Either granting or denying
the petition for CE.
4. Actual Conduct within 24 hours from the receipt of
the order, the Regional Director shall cause
the raffle of the case to an Election Officer
who shall have control of the pre-election
conference and the election proceedings.
5. Who are entitled to vote?
By: Ruby Rose Tan

All employees who are members of the appropriate
bargaining unit sought to be represented by the
petitioner at the time of the issuance of the order.
An employee dismissed from work but has contested
the legality of the dismissal is a forum of
appropriate jurisdiction at the time of the
issuance of the order for the conduct of the CE.
UNLESS: His dismissal was declared valid in a
final judgment at the time of the conduct of the
CE.
All contested voters, in case of disagreement over the
voters list or over the eligibility of the voters.
BUT: Their votes shall be segregated and sealed
in individual envelopes in accordance with the
Rules.
6. Motion for intervention 25% requirement is not
necessary, only in Petition.
Organized Establishment Any labor union other than the
incumbent bargaining agent may file with
the Med-Arbiter during the freedom period.
The form and contents of the motion shall
be the same as that of the petition for CE.
Unorganized Establishment It may be filed at any time
prior to the decision of the Med-Arbiter. It
shall be resolved in the same decision
issued in the petition for certification election.
In both cases, the form and contents of the motion shall
likewise be the same as that of a petition for CE.
7. Certification of winning union.
- Within 24 hours from final canvass of votes, there
being a valid election, the Election Officer shall
transmit the records of the case to the Med-Arbiter
who shall, within the same period from receipt of
the minutes and results of election, issue an order
proclaiming the results of the election and certifying
the union which obtained a majority of the valid
votes cast the sole and exclusive bargaining agent
in the subject bargaining unit, under any of the
following conditions:
(a) No protest was filed or, even if one was filed,
the same was not perfected within the 5day period for protection of the protest.
(b) No Challenge or eligibility issue was raised or,
even if one was raised, the resolution of
the same will not materially change the
results of the election. [Sec. 20 Rule IX
D.O. 40-03]
After a certificate of registration is issued to a union,

its legal personality cannot be subject to collateral
attack. It may be questioned only in an independent
petition for cancellation in accordance with Section 5 of
Rule V, Book IV of the "Rules to Implement the Labor
Code" reads:
Sec. 5. Effect of registration. The labor organization or
workers association shall be deemed registered and
vested with legal personality on the date of issuance of
its certificate of registration. Such legal personality
cannot thereafter be subject to collateral attack, but may
be questioned only in an independent petition for
cancellation in accordance with these Rules.
The infirmity in the membership of the respondent
union cannot be remedied in "the pre-election
conference thru the exclusion-inclusion proceedings
wherein those employees who are occupying rank-andfile positions will be excluded from the list of eligible
voters." [Tagaytay Highlands vs. THEU]
8. Run-off Election. (Rule IV, D.O 40-03)
When an election which provides for 3 or more
choices results in none of the contending unions
receiving a majority of the valid votes casts, and there
are no objections or challenges which if sustained can
materially alter the results, the Election officer shall
motu proprio conduct a run-off election within 10 days
from the close of the election proceeding between the

labor unions receiving the two highest number of votes;
provided, that the total number of votes for all
contending unions is at least 50% of the number of
votes cast.
No Union shall not be a choice in the run-off
election.
Notice of the run-off election shall be posted by the
Election Officer at least 5 days before the actual date of
run-off election.
The same voters list in the certification election shall
be used in the run-off election. The ballots in the run-off
shall provide as choices the union receiving the greater
number of valid votes cast all be certified as the winner.
9. Appeal
Art. 259. Appeal from certification election orders.
Any party to an election may appeal the order or
results of the election as determined by the MedArbiter directly to the Secretary of Labor and
Employment on the ground that the rules and
regulations or parts thereof established by the
Secretary of Labor and Employment for the conduct
of the election have been violated. Such appeal shall
be decided within fifteen (15) calendar days.
III. Suspension of Certification Election.
COLLECTIVE BARGAINING
I.
Public Policy

It shall guarantee the rights of all workers to
self-organization, collective bargaining and
negotiations, and peaceful concerted activities,
including the right to strike in accordance with the
law.
Art 211. Labor Code

Declaration of policy -- It is the policy of the
State:
(a) To promote free trade unionism as an instrument
for the enhancement of democracy and the
promotion of social justice and development;
(b) To foster the free and voluntary organization of a
strong and united labor movement;
Sec. 1 Rule XVI D.O 40-03

It is the policy of the State to promote and
emphasize the primacy of free and responsible
exercise of the right to self-organization and
collective bargaining, either through single
enterprise level negotiations or through the
creation of mechanism by which different
employers and recognized or certified labor
unions in their establishments bargain
collectively.
II.
Concept and Nature
Collective Bargaining negotiation by an organization or group of

workmen, in behalf of its members, with the
employer, concerning wages, hours of work and
other terms and conditions of employment and
the settlement of disputes by negotiation between
an employer and the representative of his
employees.
The parties cannot stipulate terms and conditions of
employment which are below the minimum
requirements prescribed by law.
It does not end with the execution of the agreement. It is a
continuous process. The duty to bargain imposes on
the parties during the term of their agreement the
mutual obligation to meet and confer promptly and
expeditiously and in good faith for the purpose of
adjusting any grievances or question arising under
such agreement.
By: Ruby Rose Tan

III. Mechanics
The mechanic of collective bargaining is set in a motion only
when the following JURISDICTIONAL PRECONDITIONS are
present:
1. Possession of the Majority Status. Representation by
the employees representative in accordance with any
of the means of selection or designation provided for
by the Labor Code;
2. Proof of majority representation; (the certification issued
by Med-Arbiter) and
3. A demand to bargain under the Art 250 (a) of the Labor
Code.
IV. Duty to Bargain
Organized Establishment
Art. 253. Duty to bargain collectively when there
exists a collective bargaining agreement. When there
is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall
terminate or modify such agreement during its lifetime.
However, either party can serve a written notice to
terminate or modify the agreement at least sixty (60) days
prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force
and effect the term and conditions of the existing
agreement during the 60-day period and/or until a new
agreement is reached by the parties.
Unorganized Establishment
Art. 252. Meaning of duty to bargain collectively.
The duty to bargain collectively means the performance of
a mutual obligation to meet and convene promptly and
expeditiously in good faith for the purpose of negotiating
an agreement with respect to wages, hours of work and all
other terms and any grievances or questions arising under
such agreement and executing a contract incorporating
such agreements if requested by either party, but such
duty does not compel any party to agree to a proposal or
to make any concession.
Art. 251. Duty to bargain collectively in the absence of
collective bargaining agreements. In the absence of an
agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty
of the employer and the representatives of the employees to
bargain collectively in accordance with the provisions of this
Code.
V.
Procedures
Preliminary:
1. Written notice with statement of proposals.
2. Reply by the other party within 10 calendar days.
3. In case of differences, either party may request for a
conference, which must be held within 10 days from
the receipt of the notice of request. Otherwise, CBA.
4. If not settled, NCMB may intervene and encourage
the parties to submit the dispute to a voluntary
arbitration.
5. If not resolved, the parties may go to where they want
and resort to any other lawful means. Either to
settle the dispute or submit to voluntary arbitration.
NCMB National Conciliation and Mediation Board

* Deliberate failure to reply is tantamount to Unfair Labor
Practice (ULP)
Stages:
1. Preliminary process Written notice for negotiation
(clear & unequivocal.)
2. Negotiation process
3. Execution process signing of the agreement in
contract
form.
Sometimes
attested by officers.

4. Publication for at least 5 days before ratification.
5. Ratification by the majority of all the workers in the
bargaining unit represented in the negotiation.
6. Registration Process within 30 days.
7. Administration Process CBA shall be administered
by the management and the
bargaining unit for 5 days.
-- Compliance with what was agreed
upon.
-- Non-compliance is tantamount to ULP
8. Interpretation and application process.
Art. 250. Procedure in collective bargaining. The
following procedures shall be observed in collective
bargaining:
(a) When a party desires to negotiate an agreement, it
shall serve a written notice upon the other party
with a statement of its proposals. The other party
shall make a reply thereto not later than ten (10)
calendar days from receipt of such notice;
(b) Should differences arise on the basis of such
notice and reply, either party may request for a
conference which shall begin not later than ten
(10) calendar days from the date of request;
(c) If the dispute is not settled, the Board shall
intervene upon request of either or both parties or
at its own initiative and immediately call the
parties to conciliation meetings. The Board shall
have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It
shall be the duty of the parties to participate fully
and promptly in the conciliation meetings the
Board may call.
(d) During the conciliation proceedings in the Board,
the parties are prohibited from doing any act
which may disrupt or impede the early settlement
of the disputes; and
(e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit
their case to a voluntary arbitrator.
VI. Areas/Subjects of CB
Economic Issues monetary aspects
Non-economic issues political aspects
VII. CBA
-- A negotiated contract between a legitimate labor
organization and the employer concerning wages,
hours of work and all other terms and conditions of
employment in a bargaining unit, including
mandatory provisions for grievance and arbitration
machineries.
VIII. Terms and Agreement
Art.
253-A. Terms of a collective bargaining

agreement. Any collective bargaining agreement that
the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of
five (5) years. No petition questioning the majority
status of the incumbent bargaining agent shall be
entertained and no certification election shall be
conducted by the Department of Labor and
Employment outside of the sixty-day period
immediately before the date of expiry of such five year
term of the collective bargaining agreement. All other
provisions of the collective bargaining agreement
shall be renegotiated not later than three (3) years
after its execution. Any agreement on such other
provisions of the collective bargaining agreement
entered into within six (6) months from the date of
expiry of the term of such other provisions as fixed in
the collective bargaining agreement, shall retroact to
the day immediately following such date. If any such
agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of
By: Ruby Rose Tan

the collective bargaining agreement, the parties may
exercise their rights under this Code.
Political can only be renegotiated during the freedom period.
Monetary After 3 years can be renegotiated within 6 months
and will retroact to the time of the expiration of 3
years.
IX. Registration of CBA
Requisites:
1. Mandatory Provisions
- Wages
- Hours of work
- Grievance Machinery
- Voluntary Arbitration
- Family planning
- Rates of pay
- Mutual observance clause
- CBA should include a clear statement of the
terms of the CBA.
2. Payment of P1,000.00
3. 5 copies of CBA
4. Proof of ratification
Purpose: For the application of the Contract-Bar Rule
Sec.5 Rule XVII D.O.40-03
-- The denial of the registration shall be in writing, stating
in clear terms the reasons therefor and served upon the
applicant union and employer within 24-hours from
issuance. The denial by the Regional Office of the
registration of single enterprise collective bargaining
agreements may be appealed to the Bureau within
10days from receipt of the notice of denial. The denial
by the Bureau of the registration of multi-employer CBA
may be appealed to the Office of the Secretary within
the same period.
X.
Administration of Agreement
During the conciliation proceeding in the Board, the parties

are prohibited from doing any act that may disrupt or impede
the early settlement of the dispute.
Art. 232. Prohibition on certification election. The Bureau
shall not entertain any petition for certification election or any
other action which may disturb the administration of duly
registered existing collective bargaining agreements affecting
the parties except under Articles 253, 253-A and 256 of this
Code.
UNFAIR LABOR PRACTICE

I.
Nature of ULP
1. Violate the Constitutional Right of the workers and
employees to self-organization.
2. ULP are inimical to the legitimate interests of both labor
and management, including their right to bargain
collectively and otherwise deal with each other in
an atmosphere of freedom and mutual respect.
3. Disrupt industrial peace, and
4. Hinder the promotion of healthy and stable labor
management relations and mutual respect. [Labormanagement relations unstable.]
II.
Essential Elements of any ULP act

1. Employer-employee relationships between the
offender and the offended.
2. Act done is expressly defined in the Code as an
unfair labor practice.
III. A ULP is a special kind of Offense

Art. 247 Labor Code:
By: Ruby Rose Tan
Unfair labor practices are not only violations of the

civil rights of both labor and management but are also
criminal offenses against the State which shall be subject
to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the
Secretary of Labor and Employment of the powers vested
in them by Articles 263 and 264 of this Code, the civil
aspects of all cases involving unfair labor practices, which
may include claims for actual, moral, exemplary and other
forms of damages, attorney's fees and other affirmative
relief, shall be under the jurisdiction of the Labor Arbiters.
The Labor Arbiters shall give utmost priority to the hearing
and resolution of all cases involving unfair labor practices.
They shall resolve such cases within thirty (30) calendar
days from the time they are submitted for decision. (As
amended by RA 6715)
Recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be
instituted without a final judgment, finding that an unfair
labor practice was committed, having been first obtained
in the administrative proceeding referred to in the
preceding paragraph. During the pendency of such
administrative proceeding, the running of the period of
prescription of the criminal offense herein penalized shall
be considered interrupted: Provided, however, That the
final judgment in the administrative proceedings shall not
be binding in the criminal case nor be considered as
evidence of guilt but merely as proof of compliance with
the requirements herein set forth.
Aspects of ULP:
CIVIL CASE
CRIMINAL CASE
1.
A. Persons liable:
1. Officers and agents of
employer or
2. Labor organization,
officers and agents.
B. Jurisdiction:
-- Labor Arbiters of the
NLRC.
C. QUANTUM OF PROOF
NEEDED
-- Substantial evidence
D. PRESCRIPTIVE PERIOD
-- One year from the
accrual of the ULP act.
2.
Agents and officers

who participated or
authorized or
ratified the act.
Agents,
representatives,
members of the
government board,
including ordinary
members.
-- MTC/RTC as the case

may be.
-- Beyond reasonable
doubt [subject to
prosecution and
punishment.
-- 1 yr from the accrual of
the ULP act, however, it
will be suspended once
the administrative case
has been filed and would
only continue running
once the latter case has
attained finality.
Note:
Final judgment in the administrative proceeding finding
that ULP has been committed is a prerequisite in filing a
criminal case of ULP. However, the same shall not be binding
in the criminal case nor shall be considered as an evidence of
guilt but merely as a proof of compliance of the requirement by
the Code.
IV. Can be Committed by:
1.
2.
Employer Art. 248 Labor Code.

Employee Art. 249 Labor Code.
-- Whether the employer has engaged in conduct which it

may reasonably be said tends to interfere with the free
exercised of the employees right and it is not necessary
that there be direct evidence that any employee was in
fact intimidated or coerced by the statements of threats
or the employer if there is a reasonable interference that
the anti-union conduct of the employer does have an
adverse effect of self-organization and collective
bargaining.
ULP of EMPLOYERS
ULP of LABOR
ORGANIZATION
1. Restrain, Interference or
Coercion in the exercise
of the right to selforganization.
1. Restrain or coercion in the

exercise of the right to
self-organization.
2. Yellow Dog Contract

3. Contracting out in order to
coerce or restrain
employees in the
exercise of the right to
self-organization.
4. Initiating, Dominating,
Assisting, Interfering and
Giving support to unions.
[Company Union]
5. Discriminating in order to
encourage or discourage
union membership.
--
--
2. Featherbedding
3. To cause or attempt to
cause employer to
Discriminate against
employee
6. Retaliatory dismissal or
discrimination due to
adverse testimony.
--
7. Violation of the duty to

bargain.
4. Violation of the duty to

bargain.
8. Paying negotiation or
attorneys fee to union.
5. Asking or accepting
negotiation or Attorneys
fee from the management.
9. To Violate a CBA
6. To Violate a CBA.
Yellow Dog Contract:

-- A promise exacted from workers as a condition of
employment that they are not to belong to or attempt
to foster a union during their period of employment.
-- It is null and void because:
- It is contrary to public policy as it is tantamount to
involuntary servitude.
- It is entered into without consideration for employees
in waiving their right to self-organization.
- Employees are coerced to sign contracts
disadvantageous to their family.
Test of Discrimination:
-- Whenever benefits or privileges given to one is not given
to the other under similar or identical conditions when
directed to encourage or discourage union membership.
Featherbedding:
-- Refers to the practice of the union or its agents in causing
or attempting to cause an employer to pay deliver or agree
to pay or deliver money or other things of value, in the
nature of exaction, for services which are nit performed or
not to be performed, as when a union demands that the
employer maintain personnel in excess of the latters
requirements.
-- It is not featherbedding if the work is performed no matter
how unnecessary or useless it may be.
STRIKES AND LOCKOUTS
Test of Interference or Coercion:

By: Ruby Rose Tan
I. Legal Basis
strike may be filed by any legitimate labor

organization in behalf of its members. [263
(c)]
- If there is a:
- Reply CBA
- Non-reply ULP
Art. 263. [b] Labor Code.

Strikes, picketing and lockouts
(b) Workers shall have the right to engage in
concerted activities for purposes of collective bargaining or
for their mutual benefit and protection. The right of
legitimate labor organizations to strike and picket and of
employers to lockout, consistent with the national interest,
shall continue to be recognized and respected. However,
no labor union may strike and no employer may declare a
lockout on grounds involving inter-union and intra-union
disputes.
- Union Busting
- Dismissal of union organization duly elected.
- Immediate Notice
- In case of dismissal from employment of union
officers duly elected in accordance with the
union constitution and by-laws, which may
constitute union busting where the existence of
the union is threatened, the 15-day cooling-off
period shall not apply and the union may take
action immediately. [263 (c)]

It shall guarantee the rights of all workers to selforganization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in
accordance with the law.
II.
Definition and its Characteristics
"Strike means any temporary stoppage of work by the

concerted action of employees as a result of an
industrial or labor dispute. [212 (o)]
- It is the most effective weapon of labor in
protecting the rights of the employees to improve
the terms and conditions of their employment.
Only legitimate labor organizations are given the right
to strike.
Unorganized workers may hold a protest action but
not a strike.
Not all concerted activities are strikes. They may
only be protest actions. And they do not necessarily
cause work stoppage by the protesters. A Strike, in
contrast, is always a group action accompanied by
work stoppage.
"Lockout" means the temporary refusal of an employer to
furnish work as a result of an industrial or labor
dispute. [212 (p)]
Picketing means the act of marching to and fro the
employers premises, usually accompanied by the
display of placards and other signs making known
the facts involved in a labor dispute. This is an
exercise of ones freedom of speech.
Strike-Breaker any person who obstructs, impedes or
interferes by force, violence coercion, threats or
intimidation with any peaceful picketing by
employees during any labor controversy affecting
wages, hour or condition of work or in the exercise
of the right to self-organization or collective
bargaining.
Elements:
1. Stoppage of Work
2. Concerted Activities
3. Labor Disputes
III. Kinds of Strikes
1. According to the Grounds:
- Unfair labor Practice (Political)
Notice within 15 days
- Bargaining Deadlock (Economic)
- Notice
- Of strike by the employee
- Of lockout by the employer within 30
days before the intended date
thereof.
- In the absence of a duly certified or
recognized bargaining agent, the notice of
2.
According to performance:
- Sit-down Strike is characterized by a
temporary work stoppage of workers
who thereupon seize or occupy property
of the employer or refuse to vacate the
premises of the employer.
- It is ILLEGAL which amounts to a
criminal act because employees
trespass the premises of the
employer.
- Wildcat Strike is a work stoppage that violates
the labor contract and is not authorized
by the union.
- It is ILLEGAL because it fails to
comply with certain requirements of
the law, to wit: notice of strike, vote
and report on strike vote.
- Sympathetic Strike is a work stoppage of
workers of one company to make
common cause with the other strikers of
other companies, without demands or
grievances of their own against the
employer.
- It is ILLEGAL because there is no
labor dispute between the workers
who are joining the strikers and the
latters employer.
- Secondary Strike is work stoppage of workers
of one employer so that the latter will in
turn bring pressure upon the employer
of another company with whom another
union has a labor dispute.
- It is ILLEGAL because there is no
dispute involved.
- Slow-down Strike is work stoppage of the
workers by installment.
IV. Conditions and pre-requisites of a valid strike

1. It must be peaceful
- There are no:
- Violence
- Intimidation
- Coercion
- Intimidation
- Threat
- Obstruction
- Ingress
- Egress
Obstruction of Ingress and Egressthe denial of
Employer of his right given in his property and
other people of their right over public property.
2. In accordance with law
- There must be legal and valid ground
- Widespread, pervasive and resorted by a
matter of company policy.
- Made by a proper party Exclusive Bargaining
Agent or any legitimate labor organization.

- Compliance with procedural requirement.
(a) Notice of Strike
(b) Cooling of Period that period of time
given the NCMB to mediate and
conciliate the parties before staging
a strike or lockout.
(c) Strike Vote usually coincide with the
cooling-off period.
(d) 7-day strike ban
3. Consistent with National Interest
Should the dispute remain unsettled until the lapse of
the requisite number of days from the mandatory filing
of the notice (cooling-off period), the labor union may
strike or the employer may declare lockout. [263 (e)]
A decision to declare a lockout must be approved by
MAJORITY OF THE BOARD OF DIRECTORS of the
corporation or association or of the partners in a
partnership, obtained by secret ballot in a meeting
called for that purpose. The decision shall be valid for
the duration of the dispute based on substantially the
same grounds considered when the strike or lockout
vote was taken. The Department may, at its own
initiative or upon the request of any affected party,
supervise the conduct of the secret balloting. [263(f)]
Strike Vote a requirement wherein the decision to declare a
strike must be:
1. Approved by the MAJORITY of the total Union
membership in the bargaining unit concerned
(not of the whole bargaining unit) [263 (f)]
2. Obtained by SECRET BALLOT in MEETINGS or
REFERENDA called for the purpose.
- The report of the strike vote must be reported to the
DOLE at least 7 days before the intended strike
subject to the cooling-off period.
7-day Strike Ban the 7 day waiting period before the date of
the purported strike (within which the union intending
to conduct a strike must at least submit a report to the
DOLE of the result of the Strike Vote) intended to give
the department an opportunity to VERIFY whether the
projected strike really carries the imprimatur of the
majority of the union members.
Welga ng Bayan It is a ILLEGAL because it is a political
strike and therefore there is neither bargaining
deadlock nor any ULP. It is political rally.
It is not a strike under the Labor Code
because there is no labor dispute involved.
V.
Injunctions against strike
Secretary of Labor and Employment shall issue orders,

prohibitions or injunctions.
In line with the national concern for and the highest
respect accorded to the right of patients to life and health,
strikes and lockouts in hospitals, clinics and similar
medical institutions shall, to every extent possible, be
avoided, and all serious efforts, not only by labor and
management but government as well, be exhausted to
substantially minimize, if not prevent, their adverse effects
on such life and health, through the exercise, however
legitimate, by labor of its right to strike and by
management to lockout. In labor disputes adversely
affecting the continued operation of such hospitals, clinics
or medical institutions, it shall be the duty of the striking
union or locking-out employer to provide and maintain an
effective skeletal workforce of medical and other health
personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to insure
the proper and adequate protection of the life and health
of its patients, most especially emergency cases, for the
duration of the strike or lockout. [263 (g)]
By: Ruby Rose Tan
VI. Consequences of Strikes

If Strike is Legal:
-
Strikers are not entitled to their wages during the

period of strike, even if the strike is legal.
- Except:
1. In case of ULP STRIKE, in the discretion of the
authority deciding the case.
2. Where
the
strikers
VOLUNTARILY
AND
UNCONDITIONALLY OFFERED TO RETURN
TO WORK, but the employer refused to accept
the offer.
- They are entitled to backwages from the
date the offer was made.
3. Where there is RETURN-TO-WORK ORDER and
the employees are DISCRIMATED against.
- They are entitled to backwages from the
date of discrimination.
REINSTATEMENT:
- Striking employees are entitled to reinstatement
regardless of whether or not the strike was the
consequence of the employers ULP.
- Because while out on strike, the strikers are not
considered to have abandoned their employment,
but rather have only ceased from their labor.
- Except:
1. Union officers who knowingly participate in an
illegal strike; and
- Provided, That mere participation of a
worker in a lawful strike shall not
constitute sufficient ground for
termination of his employment,
even if a replacement had been
hired by the employer during such
lawful strike.
2. Any striker/union member who knowingly
participates in the commission of illegal acts
during the strike.
Prohibited Activities:
Labor organization [264 (a)]
(a) No labor organization or employer shall declare a
strike or lockout
- Without first having bargained collectively in
accordance with Title VII of this Book or
- Without first having filed the notice required in the
preceding Article or
- Without the necessary strike or lockout vote first
having been obtained and reported to the
Department.
(b) No strike or lockout shall be declared
- After assumption of jurisdiction by the President
or the Secretary or
- After certification or submission of the dispute to
compulsory or voluntary arbitration or
- During the pendency of cases involving the same
grounds for the strike or lockout.
Third Persons [264 (b)]
(b) No person shall obstruct, impede or interfere with by
force, violence, coercion, threats or intimidation
- Any peaceful picketing by employees
- During any labor controversy or in the exercise of
the right of self-organization or collective
bargaining or shall aid or abet such
obstruction or interference.
Employers [264 (c)]
(c) No employer
- Shall use or employ any STRIKE-BREAKER nor

- Shall any person be employed as a STRIKEBREAKER
Public Official or Employee [264 (d)]
(d) No public official or employee, including officers and
personnel of the New Armed Forces of the
Philippines or the Integrated National Police, or
armed persons,
- Shall bring in, introduce or escort in any manner,
any individual who seeks to replace strikers in
entering or leaving the premises of a strike
area, or work in place of the strikers.
- The police force shall keep out of the picket lines
- Unless actual violence or other criminal
acts occur therein:
- Provided, That nothing herein shall be
interpreted to prevent any public
officers from taking any measure
necessary to maintain peace and
order, protect life and property, and/or
enforce the law and legal order.
Persons engaged in picketing
(e) No person engaged in picketing shall
- Commit any act of violence, coercion or
intimidation or
- Obstruct the free ingress to or egress from the
employer's premises for lawful purposes, or
- Obstruct public thoroughfares.
ARREST AND DETENTION
- No union members or union organizers may be
arrested or detained by Police officers for union
activities without previous consultations with the
Secretary of Labor and Employment. [266]
- Except on the grounds of:
- National Security
- Public Peace
- Commission of a Crime
TERMINATION OF EMPLOYMENT
Regular Employee The employee has been engaged to
perform activities which are usually necessary or
desirable in the usual business or trade of the
employer. [280]
- Except:
- Where the employment has been fixed for a
specific project or undertaking, the completion
or termination of which has been determined at
the time of the engagement of the employee or
- Where the work or service to be performed is
seasonal in nature and the employment is for
the duration of the season.
- Test: Nature of the employment.
- Any employee who has rendered at least one year of
service, whether such service is continuous or
broken, shall be considered a regular employee with
respect to the activity in which he is employed and his
employment shall continue while such activity exists
- An employee who is allowed to work after a
probationary period. [281]
Casual Employee Employees whose employment is not
regular, temporary of seasonal.
Probationary Employment shall not exceed six months from
the date the employee started working. [281]
- Unless:
By: Ruby Rose Tan

- It is covered by an apprenticeship agreement
stipulating a longer period.
- Services may be terminated for a just cause or
when he fails to qualify as a regular employee in
accordance with reasonable standards made
known by the employer to the employee at the time
of his engagement.
Brent School vs. Zamora
Probationary employment shall not exceed six months
from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a
longer period. The services of an employee who has been
engaged in a probationary basis may be terminated for a
just cause or when he fails to qualify as a regular
employee in accordance with reasonable standards made
known by the employer to the employee at the time of his
engagement. An employee who is allowed to work after
a probationary period shall be considered a regular
employee.
Article 280 of the Labor Code, under a narrow and
literal interpretation, not only fails to exhaust the gamut of
employment contracts to which the lack of a fixed period
would be an anomaly, but would also appear to restrict,
without reasonable distinctions, the right of an employee
to freely stipulate with his employer the duration of his
engagement, it logically follows that such a literal
interpretation should be eschewed or avoided. The law
must be given a reasonable interpretation, to preclude
absurdity in its application.
Accordingly, and since the entire purpose behind the
development of legislation culminating in the present
Article 280 of the Labor Code clearly appears to have
been, as already observed, to prevent circumvention of
the employee's right to be secure in his tenure, the clause
in said article indiscriminately and completely ruling out all
written or oral agreements conflicting with the concept of
regular employment as defined therein should be
construed to refer to the substantive evil that the Code
itself has singled out: agreements entered into precisely to
circumvent security of tenure. It should have no
application to instances where a fixed period of
employment was agreed upon knowingly and voluntarily
by the parties, without any force, duress or improper
pressure being brought to bear upon the employee and
absent any other circumstances vitiating his consent, or
where it satisfactorily appears that the employer and
employee dealt with each other on more or less equal
terms with no moral dominance whatever being exercised
by the former over the latter.
Paraphrasing
Escudero,
respondent
Alegre's
employment was terminated upon the expiration of his last
contract with Brent School on July 16, 1976 without the
necessity of any notice. The advance written advice given
the Department of Labor with copy to said petitioner was a
mere reminder of the impending expiration of his contract,
not a letter of termination, nor an application for clearance
to terminate which needed the approval of the Department
of Labor to make the termination of his services effective.
In any case, such clearance should properly have been
given, not denied. [2-5-90]
Security of Tenure the constitutional right granted the

employee, that the employer shall not terminate
services of an employee except for just cause or
when authorized by law. [279]
Valid Dismissal when the dismissal is based on just or
authorized cause with the observance of due process
provided for by law.
Pioneer Texturizing Corp. vs. NLRC
Equally unmeritorious is petitioners' assertion that the
dismissal is justified on the basis of loss of confidence.
While loss of confidence, as correctly argued by

petitioners, is one of the valid grounds for termination of
employment, the same, however, cannot be used as a
pretext to vindicate each and every instance of
unwarranted dismissal. To be a valid ground, it must be
shown that the employee concerned is responsible for
the misconduct or infraction and that the nature of his
participation therein rendered him absolutely
unworthy of the trust and confidence demanded by
his position. In this case, petitioners were unsuccessful in
establishing their accusations of dishonesty and tampering
of records with intention of cheating. Indeed, even if
petitioners' allegations against de Jesus were true, they
just the same failed to prove that her position needs the
continued and unceasing trust of her employers. The
breach of trust must be related to the performance of the
employee's functions. Surely, de Jesus who occupies the
position of a reviser/trimmer does not require the
petitioners' perpetual and full confidence.
Corollary to our determination that de Jesus was
illegally dismissed is her imperative entitlement to
reinstatement and backwages as mandated by law. Under
Article 223 of the Labor Code, as amended, an employer
has two options in order for him to comply with an order of
reinstatement, which is immediately executory, even
pending appeal. Firstly, he can admit the dismissed
employee back to work under the same terms and
conditions prevailing prior to his dismissal or separation or
to a substantially equivalent position if the former position
is already filled up. Secondly, he can reinstate the
employee merely in the payroll. Failing to exercise any of
the above options, the employer can be compelled under
pain of contempt, to pay instead the salary of the
employee. In case the decision includes an order of
reinstatement, the Labor Arbiter shall direct the employer
to immediately reinstate the dismissed or separated
employee even pending appeal.
Furthermore, the rule is that all doubts in the
interpretation and implementation of labor laws should be
resolved in favor of labor. In ruling that an order or award
for reinstatement does not require a writ of execution
the Court is simply adhering and giving meaning to this
rule. Henceforth, we rule that an award or order for
reinstatement is self-executory. After receipt of the
decision or resolution ordering the employee's
reinstatement, the employer has the right to choose
whether to re-admit the employee to work under the same
terms and conditions prevailing prior to his dismissal or to
reinstate the employee in the payroll. In either instance,
the employer has to inform the employee of his choice.
The notification is based on practical considerations for
without notice, the employee has no way of knowing if he
has to report for work or not. [10-16-97]
JUST CAUSES: [282]
1.
Serious misconduct or willful disobedience by the

employee of the lawful orders of his employer or
representative in connection with his work;
Serious misconduct:
- Must be serious
- Must relate to the performance of the employees
duties.
- Must show that the employee has become unfit to
continue working for the employer
- Example:
Immorality
Sexual harassment.
Immorality per se, if detrimental to the
establishment
Willful Disobedience:
- The orders, regulations and instructions of the
employer or his representative must be:
a. Reasonable and lawful.
b. Sufficiently known to the employee.
By: Ruby Rose Tan

c. In connection with the duties which the
employee has been engaged to discharge.
Sexual Harassment Is any demand, request or
requirement of a sexual favor with the use of
authority, influence or moral ascendancy, done in
the work-related or employment environment or in
an education or training environment.
- Committed irregardless of whether the demand,
request or requirement was accepted.
2.
Gross and habitual neglect by the employee of his

duties;
- Implies want or absence of or failure to exercise
slight care or diligence, or the entire absence
of care
- Evinces
a
thoughtless
disregard
of
consequences without exerting any effort to
avoid them.
- Negligence must both gross and habitual.
3.
Fraud or willful breach by the employee of the trust

reposed in him by his employer or duly authorized
representative;
- Willful if done intentionally, knowingly and
purposely without justifiable cause.
- It must be shown that the employee concerned
holds a position of trust, betrayal of which is
the essence of the offense for which an
employee is penalized.
4.
Commission of a crime or offense by the employee

against the person of his employer or any immediate
member of his family or his duly authorized
representative; and
5.
Other causes analogous to the foregoing.

- Abandonment absence without a justifiable cause
with a clear intent to sever the employeremployee relationship.
-
Elements:
A.The failure to report for work or
absence without valid or justifiable
reason.
B. A clear intention to sever ER-EE
relationship. [Brewer case]
Circumstances belying it:

a. The attempt of the employee to report
back to work which was negated by
the company when the guards
refused them entry.
b. They took immediate steps to protect
their dismissal.
c. They filed a case of illegal dismissal.
[Malayang
Samahan
ng
mga
Manggagawa sa Greenfields vs. Ramos
2-28-00]
- Prolonged, absence does not, by itself,

necessarily
mean
abandonment.
Accordingly, there must be a concurrence of
intention and overt acts from which it can be
inferred that the employee is no longer
interested in working. [Policarpio v. Vicente
Dy Sun,]
Brew Master International vs. NAFLU
Complainant appellant's prolonged absences,
although unauthorized, may not amount to gross
neglect or abandonment of work to warrant outright
termination of employment. Dismissal is too severe a
penalty. For one, the mere fact that complainantappellant is a first offender must be considered in his
favor. Besides, it is generally impossible for an
employee to anticipate when he would be ill or

compelled to attend to some family problems or
emergency like in the case at bar.
Although he violated petitioner's rules and
regulations, his absences were justified: A scrutiny of
the facts discloses that complainant's absence was
precipitated by grave family problem as his wife
unexpectedly deserted him and abandoned the family.
Considering that he had a full-time job, there was no
one to whom he could entrust the children and he was
thus compelled to bring them to the province. It would
have been extremely difficult for him to have been
husband and wife/father and mother at the same time
to the children in the metropolis. He was then under
emotional, psychological, spiritual and physical stress
and strain. The reason for his absence is, under these
circumstances, justified. While his failure to inform
and seek petitioner's approval was an omission which
must be corrected and chastised, he did not merit the
severest penalty of dismissal from the service.
The Office of the Solicitor General submitted,
however, that "it would be at the height of callousness
if one, considering his plight under the
circumstance[s], would not give due consideration to
complainant's explanation. There has to be an
exception."
In declaring him guilty of abandonment, petitioner
merely relied on its Rules and Regulations which
limited its application to a six-day continuous
absence, contrary to the purpose of the law. While the
employer is not precluded from prescribing rules and
regulations to govern the conduct of his employees,
these rules and their implementation must be fair, just
and reasonable. It must be underscored that no less
than our Constitution looks with compassion on the
workingman and protects his rights not only under a
general statement of a state policy, but under the
Article on Social Justice and Human Rights, thus
placing labor contracts on a higher plane and with
greater safeguards. [4-17-97]
DUE PROCESS:
Just Causes
1. Notice specifying the ground/s for termination and
giving the said employee reasonable
opportunity within which to explain
2. Hearing or conference held during which the
employee concerned is given the opportunity to
the charge, present the evidence and present
the evidence presented against him.
3. Written Notice of Termination indicating that upon due
consideration of all the circumstances, grounds
have been established to justify his
termination.
Authorized Cause
1. Notice to the employee AND to the appropriate
Regional Office of DOLE at least 30 days
before the effectivity of the termination
specifying the ground/s for termination.
Century Textile Mills vs. NLRC

The twin requirements of notice and hearing
constitute essential elements of due process in cases of
employee dismissal: the requirement of notice is intended
to inform the employee concerned of the employer's intent
to dismiss and the reason for the proposed dismissal;
upon the other hand, the requirement of hearing affords
the employee an opportunity to answer his employer's
charges against him and accordingly to defend himself
therefrom before dismissal is effected. Neither of these
two requirements can be dispensed with without running
afoul of the due process requirement of the 1987
Constitution. [161 SCRA 528]
Agabon vs. NLRC [11-17-04]
By: Ruby Rose Tan

-
Dismissal is based on just cause but failed to comply

with the notice requirement
- The sanction to be imposed upon him should be
tempered because the dismissal was in effect
initiated by an act imputable to the employee.
The court awarded P30,000.00
- Dismissal is based on authorized cause but the

employer failed to comply with the notice requirement.
- The sanction should be stiffer because the
dismissal process was initiated by the employers
exercise of his management prerogative. The
Court awarded P50,000.00
- Procedural infirmity cannot be cured. It should not
invalidate dismissal. The dismissal should be upheld
because it was established that the petitioners
abandoned their jobs to work for another company.
Private respondent, however, did not follow the notice
requirements and instead argued that sending notices to
the last known addresses would have been useless
because they did not reside there anymore.
Unfortunately for the private respondent, this is not a
valid excuse because the law mandates the twin notice
requirements to the employees last known address.
Thus, it should be held liable for non-compliance with
the procedural requirements of due process.
AUTHORIZED CAUSES:
1. Automation installation of labor-saving devices.
2. Redundancy superfluity in the performance of a
particular work.
- Exist where the services of an employee are in
excess of what is reasonably demanded by
the actual requirements of the enterprise.
- Reorganization as cost-saving device is
acknowledged by jurisprudence.
3. Retrenchment to prevent losses there is excess of
employee and employer wants to prevent
financial losses.
- Provided:
- There is substantial loss
- There is imminence of such substantial
losses.
- Retrenchment would effectively prevent
the expected and additional losses.
- Alleged losses and expected losses must
be proven by sufficient and convincing
evidence.
4. Closing or Cessation of Operation of the
establishment or undertakings.
- Unless:
- The closing is for the circumventing the
provisions of the Labor Code.
CHENIVER DECO PRINT vs. NLRC
Broadly speaking, there appears no complete
dissolution of petitioners business undertaking but the
relocation of petitioners plant to Batangas, in our view,
amounts to cessation of petitioners business operations
in Makati. It must be stressed that the phrase "closure or
cessation of operation of an establishment or
undertaking not due to serious business losses or
reverses" under Article 283 of the Labor Code includes
both the complete cessation of all business operations
and the cessation of only part of a companys business.
There is no doubt that petitioner has legitimate
reason to relocate its plant because of the expiration of
the lease contract on the premises it occupied. That is
its prerogative. But even though the transfer was due to
a reason beyond its control, petitioner has to accord its
employees some relief in the form of severance pay.
As public respondent observed, the subsequent
transfer of petitioner to another place hardly accessible
By: Ruby Rose Tan
to its workers resulted in the latters untimely separation

from the service not to their own liking, hence, not
construable as resignation. Resignation must be
voluntary and made with the intention of relinquishing
the office, accompanied with an act of relinquishment.
Consequently, petitioner herein must pay the
employees their termination pay in the amount
corresponding to their length of service. Since the
closure of petitioners business is not on account of
serious business losses, petitioner shall give private
respondents separation pay equivalent to at least one
(1) month or one-half (1/2) month pay for every year of
service, whichever is higher. [2-17-00]
5. Disease
- Incurable within 6 months and the continued
employment is prohibited by law or
prejudicial to his health as well as to the
health of his co-employees; and
- With a certification from public health officer
that the disease is incurable within 6 months.
Just/Authorized
Causes
Due
Process
Status
Legal
illegal
illegal
Effect
- NO liability,
only separation
pay except if the
cause is serious
misconduct.
Reinstatement
and Full
Backwages
Reinstatement
and Full
Backwages
Legal
Php30,000.00
damages
Legal
Php50,000.00
damages
Hinatuan Mining Corporation vs. NLRC

Separation pay may be awarded only in cases
when the termination of employment is due to: (a)
installation of labor saving devices, (b) redundancy, (c)
retrenchment, (d) closing or cessation of business
operations, (e) disease of an employee and his
continued employment is prejudicial to himself or his coemployees, or (f) when an employee is illegally
dismissed but reinstatement is no longer feasible. In
fact, the rule is that an employee who voluntarily resigns
from employment is not entitled in the separation pay,
except when it is sanctioned by established employer
practice of policy.
In the case at bar, it has been shown beyond doubt
that there is an established employer practice of
awarding separation pay to resigning employees.
Private respondent is similarly situated as Alcantara who
was also a managerial employee of petitioner company
and a non-union member when he voluntarily resigned
from the service. Alcantara was awarded separation pay
by the Labor Arbiter after finding that the previous
resigning officers of petitioner company were given
separation pay. As correctly ruled by the NLRC, to hold
that private respondent is not entitled to separation pay
would unduly discriminate against her. [2-21-97]
CAUSE OF
TERMINATION
SEPARATION PAY
Automation
At least 1-month pay OR

At least once a month pay for every
year of service.
Whichever is higher
Redundancy

At least once a month pay for every
year of service.
Whichever is higher
Retrenchment

At least month pay for every year of
service.

service.

service.
Whichever is higher
Closure or
Cessation of
operation
Disease
-- Fraction of at least 6 months shall be

considered 1 whole year.
Constructive Dismissal Exist where there is cessation of
work because continued employment is rendered
impossible, unreasonable or unlikely, as an offer
involving a demotion in rank and a diminution in pay.
While termination of employment is prerogative of
management to dismiss or lay-off an employee, the exercise
of that prerogative must be made without abuse of
discretion, for what is at stake is not only the employees
position
Preventive Suspension
- If continued employment poses a serious and imminent
threat to the life or property of the employer or his coemployees.
- Period of suspension not more than 30 days, otherwise,
employer should be administratively fined.
RELIEF IF ILLEGALLY DISMISSED:
A.
B.
C.
D.
Reinstatement
Backwages
Financial assistance, only in valid dismissal other
than serious misconduct or other causes
reflecting adversely on the employees moral
character. [Chua vs. NLRC, 218 SCRA 545]
Moral and Exemplary Damages in proper ULP
cases of dismissal in violation of the Civil Code
provision on human relations.
PLDT vs. NLRC

The rule embodied in the Labor Code is that a
person dismissed for cause as defined therein is not
entitled to separation pay. The cases above cited
constitute the exception, based upon considerations of
equity. Equity has been defined as justice outside law,
being ethical rather than jural and belonging to the
sphere of morals than of law. It is grounded on the
precepts of conscience and not on any sanction of
positive law.
Strictly speaking, however, it is not correct to say
that there is no express justification for the grant of
separation pay to lawfully dismissed employees other
than the abstract consideration of equity. The reason is
that our Constitution is replete with positive commands
for the promotion of social justice, and particularly the
protection of the rights of the workers. The
enhancement of their welfare is one of the primary

concerns of the present charter. The categorical
mandates in the Constitution for the improvement of the
lot of the workers are more than sufficient basis to justify
the award of separation pay in proper cases even if the
dismissal be for cause.
The Court notes, however, that where the
exception has been applied, the decisions have not
been consistent as to the justification for the grant of
separation pay and the amount or rate of such award.
But where the cause of the separation is more
serious than mere inefficiency, the generosity of the law
must be more discerning. There is no doubt it is
compassionate to give separation pay to a salesman if
he is dismissed for his inability to fill his quota but surely
he does not deserve such generosity if his offense is
misappropriation of the receipts of his sales. This is no
longer mere incompetence but clear dishonesty. A
security guard found sleeping on the job is doubtless
subject to dismissal but may be allowed separation pay
since his conduct, while inept, is not depraved. But if he
was in fact not really sleeping but sleeping with a
prostitute during his tour of duty and in the company
premises, the situation is changed completely. This is
not only inefficiency but immorality and the grant of
separation pay would be entirely unjustified.
We hold that henceforth separation pay shall be
allowed as a measure of social justice only in those
instances where the employee is validly dismissed for
causes other than serious misconduct or those
reflecting on his moral character. Where the reason for
the valid dismissal is, for example, habitual intoxication
or an offense involving moral turpitude, like theft or illicit
sexual relations with a fellow worker, the employer may
not be required to give the dismissed employee
separation pay, or financial assistance, or whatever
other name it-is called, on the ground of social justice.
[164 SCRA 671]
Reinstatement restoration of the employee to the state from
which he has been unjustly removed or separated
without loss of seniority rights and privileges.
- Forms:
- Actual or Physical
- The employee shall be admitted back to work.
- Reinstatement in the payroll
- The employee is merely reinstated in the
payroll.
- The court can order the reinstatement of an employee
even if the complaint does not include a prayer for
reinstatement, unless, of course the employee has
waived his right to reinstatement.
- An Employee who is unjustly dismissed is entitled to
reinstatement, among others. The mere fact that the
complaint did not pray for reinstatement will not
prejudice the employee, because technicalities of law
and procedure are frowned upon in labor proceedings
[General Baptist Bible College vs. NLRC, 219 SCRA
549]
- If Position is NO LONGER AVAILABLE:
- The employee should be given a SUBSTANTIALLY
EQUIVALENT POSITION if there is an order of
reinstatement but the position is no longer
available.
- If NO SUBSTANTIALLY EQUIVALENT POSITION
IS AVAILABLE
- Reinstatement should not be ordered
because that would in effect compel the
employer to do the impossible.
- The employee should merely be
given SEPARATION PAY consisting of
ONE MONTH SALARY FOR EVERY
YEAR OF SERVICE.
[Union Supervisors vs. Sec. Of Labor 128 SCRA
442]
By: Ruby Rose Tan

- Non-reinstatement circumstances:
1. Transfer of Business ownership
2. Impossibility due to abolition of the position.
3. When the business has closed down.
4. Physical incapacity of the employee
5. Doctrine of strained relations
- When the employer can no longer trust the
employee and vice-versa, reinstatement
could not effectively serve as a remedy.
- Applies only to positions that require trust
and confidence.
Backwages the relief to an employee to compensate them
for lost earnings during the period of dismissal.
- Shall cover the period from the date of dismissal of
the employee up to the date of actual
reinstatement. Shall not exceed 3 years.
- Computed from the time of the illegal dismissal up
to the time of actual reinstatement.
- Shall include:
1. Transportation
and
emergency
allowances
2. Vacation or service incentive leave and
sick leave
3. 13th month pay
- Cannot be awarded on following circumstances:
1. Death of the employee
2. Physical and mental incapacity
3. Business reverses
4. Closure of Business
5. Reinstatement of dismissed employee
confinement in jail.
Bustamante vs. NLRC
Backwages to be awarded to an illegally dismissed
employee, should not, as general rule, be diminished or
reduced by the earnings derived by him elsewhere during
the period of his illegal dismissal. The underlying reason of
this ruling is that the employee, while litigating the legality
(illegality) of his dismissal, must still earn a living to
support himself and family, while his backwages have to
be paid by the employer as part of the price or penalty he
has to pay for illegally dismissing his employee. The clear
legislative intent of the amendment in Rep. Act No. 6715 is
to give more benefits to workers than was previously given
them under the Mercury Drug rule or the "deduction of
earnings elsewhere" rule. Thus, a closer adherence to the
legislative policy behind Rep. Act No. 6715 points to "full
backwages" as meaning exactly that, i.e., without
deducting from backwages the earnings derived
elsewhere by the concerned employee during the period
of his illegal dismissal. In other words, the provision
handling for "full backwages" to illegally dismissed
employees is clear, plain and free from ambiguity and,
therefore, must be applied without attempted or strained
interpretation. Index animi sermo est.
Therefore, in accordance with R.A. No. 6715,
petitioners are entitled on their full backwages, inclusive of
allowances and other benefits or their monetary
equivalent, from the time their actual compensation was
withheld on them up to the time of their actual
reinstatement. [11-28-96]
TERMINATION BY EMPLOYEE
d. Without Just Cause by serving a written notice on
the employer at least 1-month in advance. The
employer upon whom no such notice was served
may hold the employee liable for damages.
e. With Just Cause an employee may put an end to
establish without serving any notice on the
employer for any of the following just cause:
1. Serious insult by the employer or his
representative on the hour and person of the
employee.
2. Inhuman and unbearable treatment
3. Commission of a crime or offense by the
employer or his representative against the
By: Ruby Rose Tan
person of the employee or any of the

immediate members of the family
4. Other causes analogous to any of the
foregoing.
RETIREMENT
The age of retirement is that specified in the CBA or in the
employment contract if it is not specified in the former. [287]
- Benefits:
- A retiree is entitled to a retirement pay equivalent to
at least month salary for every year of service.
Fraction of at least 6 months is considered as 1
whole year.
- 1/2 month salary means:
- 15 days + 1/12 of the 13th month pay;
AND
- The cash equivalent of NOT more than
5 days of service incentive leave.
- All other benefits mutually agreed upon
by the employer and employee.
- Does not apply to:
- Government employees
- Employees of retail service and
agricultural
establishments
or
operations regularly employing not
more than ten employees.
- R.A. No. 7641
- All employees regardless of their position
designation or status and irrespective of the
method by which their wages are paid are
entitled to retirement benefits under R.A. No.
7641 upon compulsory retirement at the age of
65 or upon optional retirement a t 60 or more but
not 65.
- Applies in the absence of a retirement plan
- The rule is different with respect to underground mining
employees whose optional retirement age is 50-60
provided they have at least served for a period of 5
years. [287 as amended by RA 8558]
PRESCRIPTION OF OFFENSES
CAUSES
PERIOD OF PRESCRIPTION
Money Claims
3 years from accrual of the

causes of action.
ULP
1 year from accrual of the

causes of action.
Illegal Dismissal
4 years from accrual of the

causes of action.
Reinstatement
4 years

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Labor Law Reviewer 2007

By: Ruby Rose Tan

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