LABOR RELATIONS LAW

COURSE OUTLINE
(Updated 30 November 2015)

For ADAMSON UNIVERSITY, FAR EASTERN UNIVERSITY

And LYCEUM OF THE PHILIPPINES UNIVERSITY

Dean Ada D. Abad

0917-526-9732

Course description:

[Cases, recitations and lectures, 3 hours a week 3 units]

Study of the General Principles of the Labor Code, Book V of the Labor Code on Labor
Relations, governing areas on government machinery, labor organizations, unfair labor
practices, representation issue; collective bargaining and administration agreements,
grievance machinery and voluntary arbitration, lockouts, strikes and other concerted
activities; Book VI on Post-Employment, covering areas such as classes of employees,
termination of employment and retirement; Book VII on penal provisions of the Labor Code
and prescription of actions and claims. Additional for Bar exams: Jurisdiction, remedies,
actions and procedures in labor cases.

Methodology:

A combination of the Socratic method of recitation, case studies and a highly participatory
and interactive approach to practical situations and problems confronting labor-
management relationships within the company. The study of law, while inherently a
serious matter, can also be fun!

Course requirements:

Recitation (incl quizzes) and attendance: 15%

Three (3) Group projects for following topics: (25%)

First group project 5%

For management team and Indep contractor company structure and
employees contracts
For Majority and Minority unions Union Constitution and By-laws, Minutes etc.

Second group project: 10% Collective Bargaining Negotiations

Third group project: 10% Personnel Discipline

Midterm examinations (30%)

Final Examinations (30%)

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Reference Materials:

Azucena, Cesario A., Jr. The Labor Code with Comments and Cases, Vol. II, National
Book Store, Inc., Manila, 1993 rev. ed.

Fernandez, Perfecto V. Labor Relations Law. Tala Publishing Corp., Quezon City 1980.

Abad, Antonio H. Jr. and Abad, Anna Maria D. Compendium on Labor Law. Rex Book
Store, 84 P. Florentino St., Quezon City. Fourth edition, 2011.

Foz, Vicente, editor. The Labor Code and its Implementing Rules and Regulations,
with Appendices and Abstracts, 2012 edition. Philippine Law Gazette, 28
Consult st., Fairview Park, Quezon City. (may be purchased at National Book
Store).

NOTE:
PLEASE DOWNLOAD DEPT OF LABOR ADVISORY NO. 1 SERIES
OF 2015 FOR THE RENUMBERING OF THE LABOR CODE.

A. INTRODUCTION
(Azucena Volume I, pp. 7-19; Fernandez, pp. 1 - 38)

1. Constitutional and statutory basis

1.1 Consti., art. 2, secs. 9-14, 18 and 20.

1.2 Consti., art. 3, secs. 10 and 18
1.2 Consti., art. 13, sec. 3
1.3 Labor Code, art. 112
1.4 Civil Code, Article 1700

2. General principles of labor law

2.1 Existence of employer-employee relationship is necessary for

the application of labor laws (See Section B for cases)

a) Employment not merely a contractual relationship:

Capitol Medical Center vs. Meris, 470 SCRA 125 [2005]

b) Who has initial burden of proving existence of an employer-employee

relationship?
Danilo P. Javier (Bitoy Javier) vs. FlyAce Corporation, G.R. No. 192558, 15
February 2012
Bernard A. Tenazas, Jaime Francisco, and Isidro Endraca v. R. Villegas Taxi
Transport, G.R. No. 192998, 02 April 2014

2.2 Burden of proof upon employer to show validity of the

exercise of its prerogatives

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 2.3 Only substantial evidence is required in administrative
proceedings
Alilem Credit Cooperative vs. Bandiola, G.R. No. 173489, 25 February
2013, J. Peralta.

2.4 In case of doubt or ambiguity, liberal interpretation of law in favor of

workers
Price vs. Innodata Phils., 567 SCRA 122 [2008]
BPI vs. BPI Employees Union Metro Manila, G.R. No. 175678, 22 August 2012
Philippine Journalist Inc. vs.Journal Employees Union, G.R. No. 192601, 26 June
2013
National Union Of Workers In Hotel Restaurant And Allied Industries
(NUWHRAIN) - Philippine Plaza Chapter vs. Philippines Plaza Inc., G.R. No.
177524, 23 July 2014.
En contra: Mitsubishi Motors Phils. Salaried Employees Union (MMPSEU) vs.
Mitsubishi Motors Phils Corp., G.R. No. 175773, 17 June 2013

2.5 But management rights likewise protected

Best Wear Garments vs. De Lemos, G.R. No 191281, 05 December 2012.

2.6 Paradigm shift towards mutual cooperation - Consti, Art XIII, Sec. 3
Toyota Motor Phils. Workers vs. NLRC, 537 SCRA 171

2.7 Principle of Social and Distributive Justice: Balancing of interests in

case workers and managements rights collide.
Tirazona vs. Phil. Eds Techno-Service [PET INC.], G.R. No. 169712, 20 January
2009
Reynaldo Moya vs. First Solid Rubber Industries, G.R. No. 184011, 18 September
2013

B. EMPLOYER-EMPLOYEE RELATIONSHIP
(Azucena Volume I, pp. 16-27; Fernandez, pp. 61-97)

1. Employer defined: Art. 212 (e), LC (Now Art. 219 [e], LC)
DOLE Dept. Order 40 [2003], R1 S1 (s)

2. Employee defined: Art. 212 (f), LC (Now Art. 219 [f], LC)
DOLE Dept. Order 40 [2003], R1 S1 (r)

3. Employer relationship as matrix

3.1 Concept of employer-employee relationship

3.2 Tests to determine the existence of employer-employee relationship

(Memory aid: South West Disaster Control)

a. Selection and hiring

b. Payment of Wages
c. Power of Dismissal
d. Control test

Cases:

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 Republic of the Philippines represented by the Social Security Commission and
Social Security Services vs. Asiapro Cooperative, G.R. No. 172101, 23 November
2007
Legend Hotel [Manila], owned by Titanium Corporation, et al. vs. Hernani S.
Realuyo, also known as Joey Roa. G.R. No. 153511, 18 July 2012.
Hacienda Leddy, et al. vs. Paquito Villegas, G.R. No. 179654, 22 September 2014

3.3 Who has jurisdiction to determine ER-EE relationship: Secretary of

Labor or the National Labor Relations Commission?

Peoples Broadcasting (Bombo Radyo Phils) vs. Secretary of Labor, G.R. No.
179652, 08 May 2009 See also: Meteoro et al vs. Creative Creatures, GR 171275,
13 July 2009

3.4 Reasonable causal connection:

Is a car benefit a labor or a civil dispute?

Smart Communications vs. Astorga, 542 SCRA 434, 27 Jan 2008
Grandteq Industrial Steel Products vs. Edna Margallo, G.R. No. 181393, 28 July
2009.
Indophil Textile Mills Vs. Adviento, G.R. No. 171212, 04 August 2014

Counterclaim involving transfer of ownership of company car falls

within ambit of the Labor Arbiters jurisdiction. Domondon vs. NLRC, 471
SCRA 559 [2005]

3.5 Corporate officer or employee?

Prudential Bank vs. Clarita Reyes, 352 SCRA 316

Arsenio Z. Locsin vs. Nissan Lease Phils. Inc. and Luis Banson, G.R. No.
185567, 20 October 2010.
Renato Real vs. Sangu Philippines, Inc. G.R. No.168757, 19 January 2011

3.6 Effect when NO employer-employee relationship exists, or when the

main issue does not involve Er-Ee relationship
- jurisdiction devolves with the regular courts

Manliguez vs. Court of Appeals, 232 SCRA 427

Georg Grotjahn GMBH vs. Isnani, 235 SCRA 216
Eviota vs. Court of Appeals, 407 SCRA 394 [2003]

4. WHEN EMPLOYER-EMPLOYEE RELATIONSHIP DOES NOT EXIST

Re: VALID JOB CONTRACTING ARRANGEMENTS
DOLE Department Order No. 18 series of 2002; Dept. Order No. 18-A, 14
November 2011 and Dept. Order No. 1, series of 2012.

4.1 Management prerogative to contract out of services

Asian Alcohol Corp vs. NLRC, 305 SCRA 416 [1999]
Meralco vs. Quisumbing, 22 February 2000
Alviado et. al. vs. Procter & Gamble, and Promm Gemm, G.R. No.
160506, 09 March 2010
Goya Inc. vs. Goya Inc. Employees Union-FFW, G.R. No. 170054, 21
January 2013.

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 4.2 Independent contractor/ Job-contracting vs. Labor-only
contracting (Art. 106, LC; Dept. Order No. 18-02 [21 February 2002];
Department Order No. 18-A, series of 2011)

Marites R. Cusap vs. Adidas Philippines, Inc., et al. G.R. No. 201494, 29
July 2015
Petron Corporation vs. Armz Caberte, G.R. No. 182255, 15 June 2015
Fonterra Brands Phils., Inc. vs. Leonardo Largado, et al., G.R. No.
205300, 18 March 2015
Alilin vs. Petron, G.R. No. 177592, 09 June 2014.
HOWEVER, PRELIMINARY PRESUMPTION IS THAT CONTRACTOR IS
LABOR-ONLY CONTRACTING. -- Garden of Memories Park and Life Plan vs.
NLRC 2nd Division, G.R. No. 160278, 08 Feb 2012, 665 SCRA 293, J. Mendoza,
citing 7K Corporation vs. NLRC, GR 148490, 22 Nov 2006, 507 SCRA 509, 523

THE PRINCIPAL HAS THE BURDEN OF PROOF TO SHOW THAT THE

PERSON CONCERNED IS AN INDEPENDENT CONTRACTOR RATHER
THAN A REGULAR EMPLOYEE. -- Fuji Television Network, Inc. vs. Arlene
S. Espiritu G.R. No. 204944-45, 03 December 2014

4.3 Examples

Masiador and sentenciador in a cockpit; not employees.

Semblante vs. Court of Appeals, G.R. No. 196426, 15 August 2011.

Manufacturing company vs. forwarding agent

Temic Automotive Phils. vs. Temic Automotive Phils. Employees Union
FFW, G.R. No. 18695, 23 December 2009

Television Company vs. Talent

Jose Sonza vs. ABS-CBN, G.R. No. 138051, 10 June 2004

Compare with:
ABS-CBN vs. Nazareno, GR 164156, 26 Sept 2006
Farley Fulache et al vs. ABS-CBN, GR 183810, 21 Jan 2010
Nelson V. Begino, et al., vs. ABS-CBN Corporation, etc., G.R. No.
199166,20 April 2015.

Insurance company vs. commission agents

Insular Life vs. NLRC, 179 SCRA 459
Contra: Tongko vs. Manufacturers' Life Insurance Company (Phils.) Inc.,
G.R. No. 167622, 29 June 2010, En Banc

4.4 Salient features of the Department Orders on Valid Job Contracting

Arrangements: capitalization, other requirements and negative list

Mandatory registration of independent contractors (DO18, s11)

Requirements for registration
Declaration of Net Financial Contracting Capacity (DO18A, s3[g])
Capitalization of at least P3Million (DO18A, s13[l])
THE NEGATIVE LIST - What cannot be subcontracted out (DO18, as
amended by DO18A , s7)

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 4.5 Liability of principal for unpaid wages of the employees of job
contractor Solidary liability as to wages and monetary claims

Compare with: Liability of principal to labor-only contracting

employees solidary liability as to ALL claims

4.5 Effect of DOLE Certification as legitimate job contractor

Ramy Gallego vs. Bayer Phils. G.R. No. 179807, 31 July 2009
Compare with: Coca Cola Bottlers vs. Ricky dela Cruz, supra.
and Coca Cola Bottlers vs. Agito, G.R.No. 179546, 13 Feb 09

5. COVERAGE OF LABOR CODE, ART. 6:

(Azucena Volume I, pp. 23-27; Fernandez, pp. 76-87)

5.1 Covered employment

a. Industrial and agricultural employees

b. Employees of labor organization
c. Employees of independent contractor
d. Employees of non-stock, non-profit organizations

5.2 Excluded employment

a. Government employees

Republic vs. Court of Appeals, 180 SCRA 428

Manila Public School Teachers Assn. Vs. Laguio, 200 SCRA 323
Carino vs. Commission on Human Rights, 204 SCRA 283

Special circumstances: Government employees with CBA

Abanilla vs. Comm on Audit, 468 SCRA 87 [2005]

Compare with: Employees of GOCCs

Lumanta vs. NLRC, 170 SCRA 79

b. Exempted employers

c. Managerial employees, with respect to right to unionize

C. MANAGEMENT PREROGATIVES
(Azucena Vol. I, pp. 19-22; Fernandez, pp. 99-104)

MEMORIZE ELEMENTS: Valid exercise of management prerogatives

The free will of the management to conduct its own affairs to achieve its purpose
cannot be denied, PROVIDED THAT THE SAME IS EXERCISED:

IN GOOD FAITH (BONA-FIDE IN CHARACTER),

FOR THE ADVANCEMENT OF THE EMPLOYERS INTEREST; AND

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 NOT TO CIRCUMVENT THE RIGHTS OF THE EMPLOYEES.
(Capitol Medical Center vs. Meriz; San Miguel Brewery and Union
Carbide cases).

1. Generally:

San Miguel Brewery Sales vs. Ople, 170 SCRA 25

2. Examples of the exercise of management prerogatives

2.1 Hiring of personnel and size of workforce

Wiltshire File Co. vs. NLRC, 193 SCRA 665

2.2 Taking out of chairs in assembly line

Royal Plant Workers Union vs. Coca-Cola Bottlers Phils., G.R. 198783,
15 April 2013

2.3 Prohibition against Elective Office

Ymbong vs. ABS-CBN, G.R. 184885, 07 March 2012

2.4 Search of office computer to check misconduct

Briccio Ricky Pollo vs. Chairperson Karina Constantino-David, G.R.
181881, 18 October 2012

2.5 Transfer of employees

Pharmacia and UPJOHN, Inc. (now Pfizer Philippines, Inc.) vs. Albayda,
Jr., G.R. No. 172724, 23 August 2010
Prince Transport vs. Garcia, G.R. No. 167291, 12 January 2011.

May employee refuse transfer by raising said transfer as a

grievance?
Manila Pavillion vs. Henry Delada, G.R. No. 189947, 25 January 2012

2.6 Terms and conditions upon hiring; qualification and change in law
St. Lukes Medical Center Employees Union AFW vs. NLRC, 517
SCRA 677 [2007]

2.7 Terms and conditions upon hiring; ban on spouses in same

company:
Star Paper vs. Simbol, 487 SCRA 228 [2006]

Compare with: Stipulations against marriage

Duncan Association of Detailman PGTWO and Tecson vs. Glaxo
Wellcome Phils., G.R. No. 164774, 12 April 2006; 438 SCRA 343 [2004]

2.8 Terms and conditions upon hiring; non-compete clauses

Ollendorf vs. Abrahamson, 38 Phil. 585 [1918]
Red Line Transportation Co. vs. Bachrach Motor Co, 67 Phil. 77
Dator vs. UST, Rev. Frs. Tamerlane Lana and Rodel Aligan, 31 Aug.
2006
Moreno vs. San Sebastian College-Recoletos, Manila, 550 SCRA 415
[28 March 2008]
Avon Cosmetics Vs. Leticia Luna, Gr No. 153674, 20 Dec 2006

7 | 2015 LABOR RELATIONS SYLLABUS Dean Ada D. Abad

 2.9 Imposition of weight requirement:
Armando G. Yrasuegui vs Philippine Airlines, G.R. No. 168081, 17
October 2008.

2.10 Permissible reduction of working hours

Philippine Graphic Arts vs.NLRC, 166 SCRA 188 [1988]
Linton Comml. Co. vs. Herrera, 535 SCRA 434 [2007]

2.11 Reorganization as an exercise of management prerogatives

Jonathan V. Morales vs. Harbour Centre Port Terminal, Inc., G.R. No.
174208, 25 January 2011.

3. Policies as to employee classification/status

- pertains to coverage purposes (Azucena, pp. 500-536)
Natl. Federation of Labor vs. NLRC, 234 SCRA 311
Pier 8 Arrastre vs. Roldan-Confesor, 241 SCRA 294 [1995]
Goya Inc. vs. Goya Employees Union, G.R. No. 170054, 21 January 2013

Doctrine of equal pay for equal work

Philex Gold Phils. vs. Philex Bulawan Supervisors Union, 468 SCRA 111
[2005]

3.1 Regular vs. casual employees, Art. 280 LC [now Art 295, LC]
Policy Instructions No.12; Dept. Order No. 10, Art. IV amending
Sec. 5, Rule 1, Bk. IV of Implementing Rules)
Romeo Basau, et al., vs. Coca-Cola Bottlers Philippines, G.R. No.
174365-66, 04 February 2015.

3.2 Probationary employees, Art. 282 LC [now Art. 297, LC], Policy
Insts No. 11;Dept. Order No. 10, Article V amending Sec. 6, Rule 1,
Book VI of Implementing Rules

Biboso vs. Victorias Milling, 76 SCRA 250

Mariwasa vs. Leogario, 169 SCRA 465
Intl. Catholic Migration vs. NLRC, 169 SCRA 606

Extended probationary period; when allowed.

Ver Buiser vs. GTE Directories, 131 SCRA 151
University of the East, Dean Eleanor Javier et. al vs. Analiza Pepanio and
Mariti D. Bueno, G.R. No. 193891, 23 January 2013

Training plus probationary period equals double probation:

Holiday Inn Manila vs. NLRC, 226 SCRA 417 [1993]

No need to inform probationary employee that he has to comply with

all company rules and regulations
Phil. Daily Inquirer vs. Magtibay, GR 164532, 24 July 2007

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 ON PROBATIONARY EMPLOYMENT WITH A TERM:
Pines City Educational Ctr. vs. NLRC, 227 SCRA 655 [1993]
Lacuesta vs. Ateneo de Manila, 477 SCRA 217 [2005]
Woodbridge vs. Pe Benito, 570 SCRA 164 [2008]

But probationary nature to prevail over term:

Yolanda Mercado vs. AMA Computer College Paranaque, 13 Apr 2010
Colegio del Santissimo Rosario vs. Rojo, G.R. No. 170388, 03 September
2013.

3.3 Term employment

Brent School vs. Zamora, 181 SCRA 702

Pakistan Air Lines vs. Ople, 190 SCRA 90
Cielo vs. NLRC, 193 SCRA 410
Phil. Village Hotel vs. NLRC, 230 SCRA 423
Anderson vs. NLRC, 252 SCRA 116 [1996]
AMA Computer College Paranaque vs. Austria, 538 SCRA 438 [2007]

CONTRA:
Viernes, et al. vs. National Labor Relations Commissions, et al., 400
SCRA 557 [04 Apr 2003]

3.4 Project employees, Art. 280 LC [now Art. 295, LC], Policy Instructions
No. 20; DOLE Dept Order No. 19, series of 1993, Section 2.2 [e] and
[f]

Ma. Charito C. Gadia, et al. vs. Sykes Asia, Inc. et al., G.R. No. 209499, 28
January 2015
Omni Hauling Services, Inc. vs. Bernardo Bon, G.R. No. 199388, 03
September 2014.
Cocomangas Hotel Beach Resort vs. Visca, 567 SCRA 269 [2008]

Indicators of project employment, enumerated:

Hanjin Heavy Industries vs. Ibanez, GR 170181, 26 June 2008

Absence of definite duration for projects lead to conclusion of regular

employment. PNOC-Energy Devlpt Bd vs. NLRC, 521 SCRA 222 [2007]
Exodus International Construction Corporation, et al. v. Guillermo Biscocho,
et al., G.R. No. 166109, 23 February 2011

Work pool explained:

Integrated Contractor and Plumbing Works vs. NLRC, 466 SCRA 265 [2005]

3.5 Seasonal Employees

Mercado vs. NLRC, 201 SCRA 332
Hacienda Fatima vs. Natl Federation of Sugarcane Workers, 396 SCRA 518
[28 Jan 2003]

CONTRA: Magsalin, et al. vs. National Organization of Working Men, et al.,

403 SCRA 199 [09 May 2003]

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 EMERGING TREND: REGULAR SEASONAL WORKERS.
Gapayao vs. Fulo and SSS, G.R. No. 193493, 13 June 2013 (Sereno, C.J.)
Universal Robina Sugar Milling Corporation and Rene Cabati, G.R. No.
186439. 15 January 2014. J Brion.
Hacienda Cataywa, et al. vs. Rosario Lorezo, G.R. No. 179640, 18 March
2015.

3.6 Managerial employees vs. supervisory employees

Art. 212 (m), LC; Policy Instructions No. 8
Rural Bank of Cantilan vs. Julve, 517 SCRA 17 [2007]
Echevarria vs. Venutek Medika, 516 SCRA 72 [2007]

D. RIGHT TO SELF-ORGANIZATION
Department Order No. 9. [21 June 1997], and
Department Order No. 40, [17 February 2003], Rule II
Republic Act No. 9481 (25 May 2007)

1. Principles of distributive and social justice found in the constitution;

rights of workers

ART II (State Policies), Sec. 9

ART. III, Secs. 1 and 8;
ART. XII (National Economy and Patrimony), Secs. 1, 6 and 12.
ART XIII (Social Justice & Human Rights; Labor), Secs. 1 & 3
Article 3, Labor Code: Declaration of Policy

2. Who cannot unionize for purposes of collective bargaining

(Azucena, pp. 140-149)

2.1 Government employees [ supra., Part B, sec. 5.2 (a) ]

2.2 Employees of government-owned and controlled corporations

with original charters

2.3 Members of a cooperative

Benguet Electric Cooperative vs. Caleja, 180 SCRA 740
BUT: Republic of the Philippines represented by SSS vs. AsiaPro Cooperative,
G.R. No. 172101, 23 Nov 2007

2.4 Managerial employees, Art. 245 cf. Art. 212 [m], Labor Code
[now Art. 255 cf. Art 219 [m], Labor Code]
Dept. Order No. 9, Rule II, Sec. 2; Dept Order 40, R1 S1(hh)

Higher standards required of managers:

Sim vs. NLRC, 534 SCRA 515 [2007]

2.5 Confidential employees: Doctrine of necessary implication

Philips Industrial Development vs. NLRC, 210 SCRA 339

Golden Farms vs. Sec. of Labor, 234 SCRA 517

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 Sugbuanon Rural Bank vs. NLRC, 324 SCRA 425 [2000]
Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery vs. Asia Brewery,
G.R. No. 162025, 03 August 2010.

Contra:
De la Salle Univ. vs. DLSU-Employees Assn., 330 SCRA 363 [2000]
San Miguel Cor. Supervisory and Exempt Employees Union vs. Laguesma,
277 SCRA 370 [1997]

2.6 Employees of International Organizations or Specialized Agencies

which are registered with the United Nations and enjoys diplomatic
immunity
Contra:
German Agency for Technical Cooperation (GTZ) vs. CA, GR No. 152318, 16
April 2009

3. Who can unionize for purposes of collective bargaining

(Azucena, pp. 140-149; Art. 245 LC [now Art 255, LC], cf. B5 R2 S1, IRR)

3.1 Supervisory employees (cannot join with rank and file)

Defined: DO40, R1 S1 (xx)

But note: Can they belong to the same Federation?

Atlas Lithographic vs. Usec Laguesma, 205 SCRA 12

REPUBLIC ACT NO. 9481, Section 8, amending Article 245 of the

Labor Code.

3.2 Rank and file employees (But cannot join supervisory union)
Defined: DO40, R1 S1 (nn)

3.3 Security guards

Philips Industrial Development vs. NLRC, (supra.) 210 SCRA 339

3.4 Alien employees with valid working permits

Dept. Order No. 9 [1997], Rule II, Sec. 2

E. LABOR ORGANIZATION
Azucena, pp. 95-105; Fernandez, 213-278
DOLE Department Order No. 9. [21 June 1997], and
Department Order No. 40, [17 February 2003], Rule III
Republic Act No. 9481 (25 May 2007)

1. Definitions

1.1 Labor organization - Art. 212 (g) [now Art. 219 (g), LC
Dept. Order No. 9, RI, S(h); DO 40, R1, S1 (cc)

1.2 Legitimate labor organization Art. 212 (h) [now Art. 219 (g), LC
DO 9, RI, S(i); DO 40, R1, S1 (ee)

11 | 2015 LABOR RELATIONS SYLLABUS Dean Ada D. Abad

 Effect: Art. 242, [now Art. 251] LC; Book 5, Rule 2, Sec. 10, IRR

1.3 Company union - Art. 212 (i)

1.4 Others: Legitimate Workers Association, DO40, R1 S1 (ff)

2. Rationale for unionization

3. Union registration and procedure (Department Order No. 9. [21 June

1997], and Department Order No. 40, [17 February 2003], Rule 3, Sections
1-11; Article 234 LC as amended by Rep. Act No. 9481)

3.1 Independent union, requirements for organization

Art. 234 (now Art. 240) LC; B5 R2 S2-4, IRR; DO 9, RIII, S(i); DO40 R3 S2
Republic Act No. 9481, Section 1, amending Art. 234, LC

3.2 Affiliation with federation or national union, requirements for orgn.

Art. 234 & 237 (now Arts. 240 and 244), LC; B5 R2 S2-4, IRR; DO 9, RIII, S(II);
DO40 R3 S2, S6-9; Art. 234-A (now Art 241), LC as inserted by Republic Act No.
9481

Chartered Local, defined under DO No. 40, RI S1(i)

San Miguel Corp [Mandaue PPP] vs. Mandaue Packing Products Plants
San Miguel Corporation Monthlies and Rank-and-File Union FFW, 467
SCRA 107 [2005]

3.3 Attestation requirements - verified by Secretary/Treasurer, and

attested by President thereof - DO 9, RV, S2(i)

Whether charter certificate issued by Federation needs to be

certified and attested to by the local union officers, as part of the
registration requirements of a charter
Samahang Manggagawa Sa Charter Cehmical Soidarily of Unions in the
Philippines for Empowerment and Reforms (SMCC-SUPER) vs. Charter
Chemical and Coating Corp., GR 169717, 16 March 2011.

3.4 Action by the Bureau of Labor Relations

Arts. 235-236, LC; B5 R2 S5-6, IRR; DO 9, RV, S3-4

3.5 Reportorial requirements

Article 242-A, LC, as inserted by Rep. Act No. 9481, Sec. 7

3.6 Cancellation
Arts. 238-239; B5 R2 S7-11, IRR; DO 9, RVII
Republic Act No. 9481, secs. 5-9, amending Art. 239 (now Art. 247), LC;
effect of amendment

For fraud and misrepresentation to be grounds for cancellation

of union registration under Art. 239 LC, the nature of the fraud
and misrepresentation must be grave and compelling enough to
vitiate the consent of a majority of union members.

12 | 2015 LABOR RELATIONS SYLLABUS Dean Ada D. Abad

 Takata (Philippines) Corporation v Bureau Of Labor Relations And
Samahang Lakas Manggagawa Ng Takata (Salamat), G.R. No.
196276, 04 June 2014.

Discrepancies in number of members stated in application,

whether a ground for cancellation on account of fraud
Mariwasa Siam Ceramics vs. Secretary of Labor, GR 183317, 21
December 2009
Eagle Ridge Golf and Country Club vs. Court of Appeals and Eagle
Ridge Employees Union [EREU], G.R. No. 178989, 18 March 2010

Failure to submit annual financial report; no longer a ground for

cancellation of union registration
The Heritage Hotel Manila vs. National Union of Workers in the Hotel,
Restaurant and Allied Industries-Heritage Hotel Manila Supervisors
Chapter (NUWHRAIN-HHMSC), G.R. No. 178296, 12 January 2011

Filing of petition for cancellation of Unions registration is

not per se an act of ULP
Rural Bank of Alaminos Employees Union vs. NLRC, 317 SCRA 669
(1999)

Registration of union not subject to collateral attack

San Miguel Employees Union-PTGWO vs. San Miguel Packaging
Products Employees Union Pambansang Diwa ng Manggagawang
Pilipino (PDMP), 533 SCRA 125 [2007]

Inclusion of supervisory employees in the R&F union is NOT a

ground to impugn the legitimacy of the union.
SAMMA-LIKHA vs. SAMA Corp., G.R. No. 167141, 13 Mar 2009

Compare with requirements under new law, Republic Act No.

9481, Secs. 4-5, amending Articles 238 and 239 of Labor Code; also
Article 238-A, LC

Pendency of a petition for cancellation of union registration will

not preclude collective bargaining
Legend International Resorts vs. Kilusang Manggagawa ng Legenda,
GR 169754, 23 February 2011.

Voluntary cancellation Article 239-A (now Art. 248), LC as inserted

by Republic Act No. 9481, Sec. 6

4. Rights and conditions of membership (Art. 241 [now Art. 250], LC)

4.1 Direct election and tenure of officers (Art. 241 {now Art.250} [c, f and k])
Cruz vs. Calleja, 188 SCRA 520

4.2 Payment of membership dues and other assessments

(Art. 241 {now Art.250} [g-j, n])
Palacol vs. Calleja, 182 SCRA 710

4.3 Attorneys fees

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 Gabriel vs. Secretary of Labor, 328 SCRA 247 [2000]

5. Right to Disaffiliate from Mother Union

Volkschel Labor Union vs. BLR, 137 SCRA 42

Philippine Skylanders Inc. vs. NLRC, G.R. 127374, 31 Jan. 2002
Cirtek Employees Labor Union FFW vs. Cirtek Electronics, GR 190516, 06
June 2011.

F. THE APPROPRIATE BARGAINING UNIT

Azucena, pp. 233-243; Fernandez, 279-290
Department Order No. 9. [21 June 1997], and
Department Order No. 40, [17 February 2003]
Republic Act No. 9481 [25 May 2007]

1. Bargaining unit defined - Art. 255 {now Art.267}, LC

DO 40, R1 S1 (d)

2. Determination of appropriate bargaining unit

2.1 Generally -- community of interest

exception: Globe Doctrine -- desire of employees

2.2 Ineligibility of Managerial Employees to Join any Labor

Organization; Right of Supervisory Employees Rep. Act No. 9481
sec 8, amending Art. 245 {now Art.255}, LC

2.3 Effect of Inclusion as Members of Employees Outside the Bargaining

Unit - Rep. Act No. 9481 sec 8, inserting Art. 245-A {now Art.256}, LC

G. CERTIFICATION ELECTION
Azucena, pp. 244-265; Fernandez, 290-347
Department Order No. 9. [21 June 1997], and
Department Order No. 40, [17 February 2003], RVIII
Republic Act No. 9481 (25 May 2007)

1. Role of Employer during certification elections

Rep. Act No. 9481 sec 12, inserting Art. 258-A {now Art.271}, LC

2. Other kinds of recognition of employee representatives

excluding certification elections

2.1 Direct certification - not allowed

2.2 Voluntary recognition, Dept. Order No. 9, Rule X

2.3 Consent election, DO 9, RI, S (ee); DO40 R8 S10

Effect of consent election: DO40 R8 S23

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 3. Certification election and procedure
Art. 256-258 {now Art.268-270} , LC; B5 R5 S1-9, IRR,
Dept. Order No. 40 [2003], Rule8 and 9
Rep. Act No. 9481 [25 May 2007], secs. 10 and 11

3.1 Definition and nature of CE -- B5 R1 S1[x], IRR; DO 9, RI, S(dd)

DO 40, R1 S1 (d)

Excl. bargaining represntve: DOLE Dept. Order 40 [2003], R1 S1 (r)

NUHRWRAIN Manila Pavilion Hotel Chapter vs. Sec. of Labor, BLR,
Holiday Inn Manila Pavilion Hotel Labor Union and Acesite Phils. Hotel
Corp., GR No. 181531, 31 July 2009
Mariwasa Siam Ceramics vs. Sec of Labor et al, GR 183317, 21
December 2009

3.2 Who may, and where to, file petition for CE

B5 R5 S1-2, IRR; DO 9, Rule XI, S1-2; DO40 R8 S1-2
Republic Act No. 9481, sec. 10, amending Art 256 {now Art.268}, LC

3.2.1 Challenging the petition for CE

Toyota Motors vs. Toyota MPC Labor Union, 268 SCRA 571 [1997]
Tagaytay Highlands Intl Golf Club, Inc. vs Tagaytay Highlands
Employees Union PGTWO, 395 SCRA 699 [22 Jan 2003]

3.2.2 Filing of petition for cancellation of Unions

registration is not per se an act of ULP,

3.2.3 Form and content of petition: DO40 R8 S4

3.3 When to file petition for CE - DO40 R8 S3

3.3.1 If unorganized establishment

- at any time (B5 R5 S3-6, IRR)
- Rep. Act No. 9481 sec 8, amending Art. 257 {now Art.269}, LC

3.3.2 If organized establishment

Rep. Act No. 9481 sec 8, amending Art. 256 {now Art.268}, LC

a) No duly registered CBA - at any time

b) With duly registered CBA

1) Contract bar rule - only during freedom period

(Art. 232 {now Art.238}, LC; B5 R5 S4, IRR)
FVC Labor Union-PGTWO vs. Sama Samang
Nagkakaisang Mangggagawa sa FVC-SIGLO, GR 176249,
27 November 2009

2) One year bar rule (B5 R5 S3, IRR)

3) Deadlock bar rule (B5 R5 S3, IRR)

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 4. Denial of Petition for Certification Election;

4.1 Grounds for denial: Dept Order No. 40, R8 S14-15

4.2 Appellate procedure in case of denial

Dept Order No. 40, R8 S17-22

5. Procedure in the Conduct of the Certification Elections

Dept Order No. 40, R9 Sections 1 to 20

5.1 Raffle and pre-election conference

5.2 Qualification of voters; inclusion-exclusion proceedings

May probationary employees vote in the certification elections, if the CBA

provision explicitly excludes them in the vote?
NUHRWRAIN Manila Pavilion Hotel Chapter vs. Sec. of Labor, BLR, Holiday
Inn Mnaila Pavilion Hotel Labor Unino and Acesite Phils. Hotel Corp., GR No.
181531, 31 July 2009

5.3 Voting proper

5.4 Challenging the votes; on-the-spot questions
5.5 Canvass of votes
5.6 Certification of Collective Bargaining Agent

6. Run-off Elections - DO 9, Rule XIII; Dept Order No. 40, R10

7. Failure of elections - Dept Order No. 40, R17 and 18

MIDTERM EXAMINATIONS HERE

16 | 2015 LABOR RELATIONS SYLLABUS Dean Ada D. Abad