major business losses.

Quitclaims were also voluntarily signed by Casimiro and others after receiving
their pay and are thus valid and binding on them. There is no illegal dismissal. Retrenchment
termination of employment initiated by employer without fault or prejudice to the employees resorted
to by management in times of business recession It is not the function of law to compel a business to
operate at a continuing loss simply because it has to maintain its workers in employment. Such an act
would be tantamount to taking of property without due process of law

i
Civil Code
Innodata Philippines, Inc. v. Quejada-Lopez

Quejada and Natividad were employed as formatters for Innodata under a supposed fixed-term
employment. They were separated from the company and therefore they files a case for illegal
dismissal. The court ruled that the fixed-term employment agreement fixed not only a one year term
but also a 3 month probationary period where the employer can pre terminate the employment
therefore making it illegal.
blocking the acquisition of tenure by employees deserve to be struck down for being contrary to law,
morals, good customs, public order and public policy.

ii
iii
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Labor Code and Omnibus Rules Implementing to Labor Code

International Conventions, Recommendations
International Labor Organization> tripartism: government representatives, employees,
workers organization. Philippines is an ILO member
Universal Declaration of Human Rights (23, 24, 25, Covenant on Economic, Social and Cultural
Rights)

International School Alliance of Educators v. Quisumbing

Local Hires of the ISchool claim discrimination in pay as compared to foreign hires (those who are hired
from abroad to do expatriate teaching here) who earn 25% more than them and are entitled to
benefits such as housing. The court ruled that salaries could not be used to entice foreign hires. (but
lodging is okay) public policy abhors inequality and discrimination. Foreign hires do not perform 25%
more efficiently and thus should be paid equal pay for work of equal value.

The Labor Code of the Philippines

a Brief History: began in 1968 under Blas Ople to address needs of economic
development and justice.
b Name of Decree (Art 1) Labor Code of the Philippines PD 442
c Date of Effectivity (2) 6 mos. After promulgation which was on (May 1,
1974) therefore, Nov 1, 1974
d Declaration of Basic Policy (3) Full employment, Equal work opportunity,
Security of Tenure, etc.
e Construction in Favor of Labor (4) in favor of safety and decent living of the
laborer however, it must be noted that the management also has rights
(management prerogatives)
Reyes v. CA

Dr. Pedrito demanded PhilMalay for separation payment similar to its employees as well as for
underpayment of salary, a new car, life insurance policy, office rentals and legal service costs he
incurred. The LA claimed that the retrenchment of PhilM is valid. NLRC reduced the awards. His appeal
was dismissed by CA for failure to attach position paper, decision by Labor Arbiter and Memorandul of
Appeal.
Leniency should be applied. If the rules of procedure are applied very rigidly, justice would be
defeated. Labor laws mandate speedy disposition of cases without sacrificing fundamental requisites
of due process

Salinas Jr. v.NLRC

Constant renewals by AG&P of Salinas etc. contracts as cement workers etc. as project based
employees but did not comply with department order which requires them to submit to DOLE the
notice and reason of termination upon the end of the project. It would be prejudicial and would run
counter to the constitutional mandate on social justice and protection to labor

Technical Rules not binding (221) Commission and its members and the
Labor Arbiters shall use every and all reasonable means to ascertain the facts
in each case speedily and objectively and without regard to technicalities of
law as well as due process.

Huntington Steel Products, Inc. v. NLRC

Complaint for illegal dismissal by Orbase and 11 other employees against Huntington Steel Products
was dismissed due to the lack of a certificate of non-forum shopping required by Circular No. 28-91
with the petitioners commenting that the complaint was a mere scrap of paper.