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UNIVERSITY OF SAN JOSE RECOLETOS

SCHOOL OF LAW
LABOR LAW 1

I. Introduction/Orientation

II. Basic Concepts/Principles


a. Definition of Terms
1. Labor Legislation v. Social Legislation
2. Labor Law: Labor Standards v. Labor Relations
3. Management Prerogative v. Workers Rights
b. Purpose of Labor Law
c. Coverage
d. Elements
e. Social Justice
f. Sources of Labor Law
g. The Labor Code of the Philippines
h. Date of Effectivity
PASEI VS. TORRES, ET AL G.R. No. 101279 August 6, 1992
i. Basis of enactment of Labor Law
1. Police Power
St. Lukes Medical Center Employees Foundation-AFW vs. NLRC 517 SCRA 677
(2007)
JMM Promotion vs. CA, August 5, 1996
j. Constitutional Provisions
1. Art. II Secs. 9, 10, 11, 13, 14, 18, 20.
2. Art. III Secs. 1, 4, 8.
3. Art. XIII, Secs. 1, 2, 3, 14
k. New Civil Code
1. Article 19
2. Article 1700-1712
l. Labor Code
1. Article 3
2. Article 211
3. Article 212
4. Article 255
Philippine Airlines (PAL) vs. NLRC, August 13, 1993
m. Constitutional Mandates:
Gandara Mill Supply vs. NLRC 300 SCRA 702
Marcopper Mining Corp. vs. NLRC G.R. No. 103525 March 29, 1996
NFSW vs. Ovejera GR L-59743 May 31, 1982
Sarocam vs. Interorient Maritime Ent., G.R. No. 167813 June 27, 2006
NS Transport Employees Association (NSTEA) vs. NS Transport Service, Inc.
G.R. No. 164049 October 30, 2006
n. Constitutional Provisions:
Due Process:
Serrano vs. NLRC ( G.R. No. 117040, January 27, 2000
Agabon vs. NLRC (G.R. No. 158693, November 17, 2004
Equal Protection:
Duncan Association of Detailman-PTGWO vs. Glaxo Welcome Philippines, Inc.
(G.R. No. 162994, September 17, 2004)
Right to counsel:
Manuel vs. N.C. Construction Supply (G.R. No. 127553, November 28, 1997)
Punzal vs. ETSI Technologies Inc. (G.R. Nos. 170384-85, March 9, 2007)

III. Declaration of Basic Policy


Magallanes vs. Sun Yat Sen Elementary School 542 SCRA 79 (2008)
a. Interpretation and Construction
o ART. 4, LC. Construction in favor of labor
o Art. 1700-1702, New Civil Code
o CASES:
Acuna vs. Court of Appeals G.R. No. 159832, May 5, 2006
G and M Philippines, Inc. vs. Cuambot, G.R. No. 162308, November 22, 2006
Navarro vs. Coca-cola Bottlers Philippines, Inc. G.R. No. 162583, June 8, 2007
De Castro vs. Liberty Broadcasting Network Inc. G.R. No. 165153 September 23, 2008
Arco Metal Products Co., vs. Samahan ng mga Manggagaw sa Acro Metal-NAFLU G.R. No.
170734, March 14, 2008
b. Applicability of Labor Code
LRTA vs. Venus G.R. No. 163782, March 24, 2006
Juco vs. NLRC 277 SCRA 528
Caberra vs. NLREC 198 SCRA 573
c. Before 1987 Constitution:
NASECO vs. NLRC November 29, 1988
Paloma vs. PAL July 14, 2008

IV. Management Rights:


a. Right of workers vs. Right of Employer:
Jumuad vs. Hi-Flyer Food, Inc. GR. No. 187887, September 7, 2011
b. Security of Tenure vs. Management Prerogative
Discipline
Transfer of Employees
Productivity Standards
Grant of Bonus
Change of Working Hours
Marital Discrimination
Post-employment Ban
Limitations in its Exercise
Alert Security and Investigation Agency vs. Pasawilan, GR No. 182397, September 14, 2011.
Bisig Manggawa sa Tryco vs. NLRC October 15, 2008
Aguanza vs. Asian Terminal Inc. G.R. No. 163505, August 14, 2009
Endico vs. Quantum Foods Distribution Center G.R. No. 161615, January 30, 2009
PT&T vs. Court of Appeals, G.R. No. 152057, September 29, 2003
Dosch vs. NLRC, 123 SCRA 296 [1983]
Mendoza vs. Rural Bank of Lucban, G.R. No. 155421, July 7, 2004
Norkis Trading Co., vs. NLRC, G.R. No. 168159, August 19, 2005
PLDT vs. Paquio, G.R. No. 152689, October 12, 2005
Star Paper Corp., vs. Simbol, G.R. No. 164774, April 12, 2006
Rivera vs. Solidbank, G.R. No. 163269, April 19, 2006
Duldulao vs. Court of Appeals, G.R. No. 164893, March 1, 2007

AUGUST 12
Book One
(Pre-Employment)

I. Recruitment and Placement of Workers:


Definition
Republic Act 8042 as amended by Republic Act 10022
o Santiago vs. CF Sharp, G.R. No. 162419, July 10, 2007
o Jebsens Maritime Inc. vs. Undag, 622 SCRA 670
o Illegal Recruitment: RA 10022& RA. 8042
Flourish Maritime Shipping vs. Almanzor 548 SCRA 712 (2008)
People vs. Nogra, G.R. No. 170834, August 29, 2008
People vs. Ganigan, G.R. No. 178304, August 20, 2008
People vs. Jamilosa G.R. No. 169076, January 23, 2007
People vs. Zenchiro, G.R. No. 176733, August 11, 2008
People vs. Comilla G.R. No. 171448 February 28, 2007
o License v. Authority
o Elements of Illegal Recruitment
o Simple Illegal Recruitment
o Illegal Recruitment in Large Scale
o Illegal Recruitment as Economic Sabotage
o Illegal Recruitment v. Estafa
o Liabilities
Local Employment Agency
Foreign Employer
Theory of Imputed Knowledge
o New Life Enterprises vs. CA 207 SCRA 669
o Exception: Sunace International Management vs. NLRC 480 SCRA
146
Direct Hiring
Placement of Workers
o Money claims: Pre-termination
o Old Ruling:
Marsaman Manning Agency, Inc. vs. NLRC, August 25, 1999 (G.R. No. 127195)
o New Ruling:
Serrano vs. Gallant Maritime Services, Inc. G.R. No. 167614, March 24, 2009
o Interpretation under RA 10022
PERT/CPM Manpower Exponent vs. Armando A. Vinuy et.al, September 5, 2012
Perfection of Contract and Jurisdiction:
o C.F Sharp & Co. vs. Pioneer Insurance & Surety Corporation, G.R, No. 179469, February 15, 2012
Regulations of Recruitment and Placement Activities (Article 25 to Art. 35)
o Remittance of Foreign Exchange Earnings
o Prohibited Activities
o Regulatory and Visitorial Powers of the Labor Secretary
o Penalties for Illegal Recruitment
o Prescription

II. Employment of Nonresident Aliens

Book Two
Human Resources Development

I. National Policies and Administrative Machinery for their Implementation


TESDA Law
II. Employment of Special Workers
Apprentices
o Century Canning Corporation vs. CA August 17, 2007
Learners
Handicapped Workers (RA 7277)
o Definition of handicapped workers
o Rights of Disable Workers
o Prohibitions on Discrimination Against Disabled Persons
o Incentives for Employers
o Cases:
Bernardo vs. NLRC G.R. No. 122917, July 12 1999

AUGUST 19
Book Three
Conditions of Employment
(Art. 82- Art. 155)

I. Conditions of Employment: Coverage and Exclusion


Elements of employment relationship/ General Principles
Four-fold test:
Cases of Employer-Employee Relationship:

Villamaria vs. CA April 19, 2006 (G.R. No. 165881)


Alhambra Industries vs. CIR (G.R. No. L-15984)
Hydro Resources Corp. vs. Pagalilaun, April 18, 1989 (GR No. L-62909)

Cases of NO Employer-employee Relationship

Manila Golf Club vs. IAC 237 SCRA 207


Filamer Christian Institute vs. IAC (G.R. No. 75112 August 17, 1992)
CRC Agricultural Trading and Rolando Catindig vs. NLRC and Roberto Obias, G.R. No.
177664, December 23, 2009.
Supplements
Sonza vs. ABS-CBN, G.R. No. 138051, June 10, 2004
Encyclopedia Britanica vs. NLRC, 264 SCRA 4 [96]
Singer Sewing Machine vs. NLRC, 193 SCRA 271
Abante vs. Lamadrid Bearing & Parts, G.R. No. 159890, May 28, 2004
Phil. Global Communication vs. De Vera, 459 SCRA 260 [05]
Manila Golf Club vs. IAC, 237 SCRA 207
Consulta vs. CA, G.R. No. 145443, March 18, 2005
Insular Life vs. Basiao, 179 SCRA 459
Ramos vs. CA, 380 SCRA 467
Carungcong vs. Sunlife, 283 SCRA 319
Coca-Cola Bottlers Phils., vs. Dr. Climaco, G.R. No. 146881, February 15, 2007
Francisco vs. NLRC, 500 SCRA 690 [06]
ABS-CBN vs. Nazareno, G.R. No. 164156, Sept. 26, 2006
Big AA Manufacturer vs. Antonio, 484 SCRA 33 [2006]
Dumpit-Murillo vs. CA G.R. No. 164652 June 8, 2007
Traveno vs. Bobomgon Banawa Growers Multi. G.R. No. 164205 September 3, 2009
MERALCO vs. Benamira G.R. No. 145271, July 14, 2005
TAPE et.al vs. Servana G.R. No. 167648, January 28, 2008
Orozco vs. CA G.R. No. 155207, August 13, 2008
Gabriel vs. Bilon G.R. No. 146989, February 7, 2007
Calamba Medical Center Inc. vs. NLRC G.R. No. 176484, November 25, 2005
Managerial Employee
o Penaranda vs. Banganga Plywood Corp. G.R. No. 159577 May 3, 2006
o NAWASA vs.NWSA Consolidated Unions, 11 SCRA 766
o McLeod vs. NLRC 512 SCRA 222

Confidential Employee
o Standard Chartered Bank Employees Union vs. Standard Bank, et.al G.R. No. 161933, April
22, 2008
Field Personnel
o Auto Bus Transport Systems, Inc. vs. Bautista G.R. No. 156367, May 16, 2005
o Far East Agricultural Supply Inc. vs. Lebatique et.al G.R. No. 162813, February 12, 2007

AUGUST 26

II. Hours of Work

Coverage and Exclusions


Labor Standards Benefits Covered Under Art. 83, Normal Hours of Work
Exceptions
Hours of Work of Hospital and Clinic Personnel
San Juan De Dios Hospital Employees Association-AFW vs. NLRC, G.R. No. 126383,
November 28, 1997
Interphil Laboratories Employees Union vs. Interphil Laboratories Inc., G.R. No.
142824, December 19, 2001
Compressed Work Week
Change of Workings Hours:
Union Carbide Labor Union (NLU) vs. Union Carbide Phil. Inc. G.R. No. L-41314,
November 13, 1992
A. Soriano Aviation vs. Employees Assn. of A. Soriano Aviation, G.R. No.
166879, August 14, 2009
Manila Jockey Club Employees Labor Union vs. Manila Jockey Club Inc. G.R. No.
167760, March 7, 2007

Art. 84 Hours Worked: Rule 1 Omnibus Rules Implementing the Labor Code.
o Principles in determining hours worked
Durabilt Recapping Plant Company vs. NLRC G.R. No. L-76746, July 27, 1987
o Waiting time and working time on call
Opulencia Ice Plant and Storage vs. NLRC, G.R. No. 98368, December 15, 1993.
Arica vs. NLRC 170 SCRA 776
Pan American World Airways System vs. Pan American Employees Assn. L-
16275, February 23, 1961

o Travel Time
Travel from home to work
Travel that is all in the days work
Travel away from home
Rada vs. NLRC 205 SCRA 69
o Preliminary and Postliminary Activities
o Attendance in lectures, meetings and training programs
Sugue vs. Triumph International, January 30, 2009
o Attendance in CBA Negotiations
o Attendance or participation in strikes or pickets
o Working time of sea based workers or seamen
o Semestral Breaks
University of Pangasinan Faculty Union vs. Univesity of Pangasinan, February
20, 1984.
Sibal vs. Notre Dame of Greater Manila, G.R. No. 75093, February 23, 1990
o Work interruptions due to brown-outs
Durabilt Recapping Plant Company vs. NLRC G.R. No. L-76746, July 27, 1987
o Burden of proving hours worked.
o Seaman
Cagampan vs. NLRC, March 22, 1994

Art. 85 Meal Periods.


Philippine Airlines vs. NLRC 302 SCRA 582 (1999)
Sime Darby Pilipinas, Inc. vs. NLRC, G.R. No. 119205, April 15, 1998

Art. 86 Night Shift Differential


Mercury Drug Co., Inc. vs. Dayao, G.R. No. L-30452, September 30, 1982
Lepanto Consolidated Mining Co. vs. Lepanto Local Staff Union 562 SCRA 495
(August 2008)
o Exceptions
o Rate

Art. 87 Overtime Work


o Computation of Overtime Work
o Premium Pay vs. Overtime Pay
o Stipulation on overtime rate
o Built-in overtime pay
Engineering Equipment, Inc. vs. Minister of Labor, G.R. No. L-64967, September
23, 1985
PAL Employees Savings and Loan Association vs. NLRC August 22, 1996.
Bisig Manggawa sa Tryco vs. NLRC October 15, 2008
o Overtime Work of Seamen
Stolt-Nielsen Marine Services vs. NLRC, 1996
PCL Shipping, Inc. vs. NLRC, G.R. No. 153031, December 14, 2006.
o Waiver of Overtime Pay
Mercader vs. Manila Polo Club Inc. G.R. No. L-8373, September 28, 1956
PAL Employees Savings and Loan Association vs. NLRC August 22, 1996.
Damasco vs. NLRC, G.R. No. 115755, December 4, 200
o Compressed Workweek (CWW) Dole Advisory No. 02-04
Undertime Not Offset by Overtime
o Rationale:
NWSA vs. NWSA Consolidated Unions, 11 SCRA 766
Emergency Overtime Work
Computation of Additional Compensation

SEPT. 2

III. Rest Periods (Articles 91-93)


Right to Weekly Rest Day
o Application
o Determination of the Weekly Rest Day and Preference:
When employer may require Work on Rest Day
o Compensation for Rest Day
o Exclusions
o Computation of Rest day work

IV. Holidays, Service Incentive Leaves and Service Charges


Right to Holiday Pay
o EO 203
o Changes under RA 9177
o List of Legal Holidays in RA 9492
o Concept of Holiday Pay
o Coverage of Holiday Pay
o Exclusion
o Regular Holiday vs. Special Holidays
o Effect of Absences on Holiday pay
o Temporary or Periodic shutdown/cessation of work
o Holiday Pay of certain employees
Workers Paid by Results
Tan vs. Lagrama G.R. No. 151228, August 15, 2002
as applied to Field Personnel
Seasonal Employees
Manila Hotel Company vs. CIR, G.R. No. L- 188373 September 30, 1963
Monthly Paid Employees
Service Incentive Leave
o Purpose
o Coverage of SIL
o Exclusion
o Commutable Nature of benefit
Autobus Transport System, Inc. vs. Bautista. G.R. No. 156367, May 16, 2005
Duterte vs. Kingswood Trading Co., Inc. G.R. No. 160325, October 4, 2007
Labor Congress of the Philippines vs. NLRC, G.R. No. 123938, May 21, 1998
Fernandez vs. NLRC, G.R. No. 105892, January 28, 1998.
Ricardo G. Paloma vs. PAL, G.R. No. 148415, July 14, 2008
Texon Manufacturing and Betty Chua vs. Millena, G.R. No. 141380, April 14,
2004.
Maternity Leave (RA No. 7322 and Social Security Act of 1997 (RA No. 8282
o Coverage
o Conditions
o Availments
Paternity Leave (RA 8187 otherwise known as Paternity Leave Act of 1996
Solo Parent Leave (RA 8972 otherwise known as the Solo Parents Welfare Act of
2000.
Leave of Victims of Violence under RA 9262 or the Violence Against Women and
Their Children (VAWC)
Special Leave for Women (RA 9710)
Service Charges
o Coverage
o Exclusion
o Distribution
o Integration

SEPT. 16

V. Wages
No work, no pay Principle
Coverage/Exclusiosns
Preliminary Matters
o Concept of Facilities and Supplements
Mabeza vs. NLRC 271 SCRA 670
Millares vs. NLRC 305 SCRA 670
Minimum Wage Rates
o Methods of Fixing Compensation.
Payment of Wages
o Wages v. Salaries
Article 106-110 Contractor or Subcontractor (DO 18-A, Series of 2011)
o Independent Contractor
o Tri-lateral Relationship
o Requirements
Philippine Airlines vs. Ligan 547 SCRA 181 (2008)
o Labor Only Contracting
Mandaue Galleon vs. Andales 548 SCRA 17
o Independent Contracting
o Proof of Employer
Oregas vs. NLRC 559 SCRA 153 (2008)
o Joint and Solidary Liability
Meralco vs. NLRC 548 SCRA 315
Jaguar Security and Investigation vs. Sales 552 SCRA 295
o Wage Liability
o Articles 106, 107 and 109
Meralco vs. NLRC 548 SCRA 315 (2008)

Prohibition Regarding Wages


o Non-interference in disposal of wages
o Deposits for loss and liabilities
o Retaliatory measures
o False Reporting
o Withholding/kickbacks
o Wage deductions
o Cases:
Special Steel Products vs. Villaruel. G.R. No. 143304
Agabon vs. NLRC Nov. 17, 2004
o Principle of Non-diminution of benefits
Article 100
Davao Integrated Ports Stevedoring Services vs. Abarquez, March 19,
1993
Sevilla Trading Co. vs. Semana, G.R. No. 152456, April 28, 2004
Globe Mackay Cable vs. NLRC, G.R. No. 74156, June 29, 1988.
Acro Metal Products et.al vs. Samahan ng mga Manggawa sa Acro
Metal, G.R. No. 170734, May 14, 2008
Insular Hotel Employees Union vs. Waterfront Insular Hotel Davao,
September 22, 2010
Protacio vs. Laya Mananghaya and Co. G.R. No. 168654, March 25,
2009
Producers Bank of the Philippines vs. NLRC, G.R. No. 100701, March 28,
2001
Manila Banking Corporation vs. NLRC, G.R. No. 107487 September 29,
1997.
Article 127
RA 6677: Section 3.
TSPIC Corporation vs. TSPIC Employees Union G.R. No. 163419, February 13,
2008
American Wire and Cable Union vs. American Wire and Cable Co. April 29,
2005
o Attorneys Fees
NPC Drivers and Mechanics Association vs. NPC G.R. No. 156208 September 17,
2008.

SEPT. 23

Wage Distortion (Art. 124)


o Elements
P.I. Manufacturing, Incorporated vs. PI Manufacturing Supervisors G.R. No.
167217, February 4, 2008
o Corrections of Wage Distortion
National Federation of Labor vs. NLRC 234 SCRA 311

Administration and Enforcement:


o DOLE Regional Directors Jurisdiction:
Peoples Broadcasting Service (Bombo Radyo vs. Secretary of Labor, G.R. No.
179652, March 6, 2012
Small Money Claims
o Visitorial and Enforcement Power
Meteoro vs. Creative Creatures. G.R. No. 171275, July 13, 2009
Bay Haven, Inc. vs. Abuan G.R. No. 160859, July 30, 2008

VI. 13th Month Pay


P.D. 851
Revised Guidelines on the Implementation of 13th Month Pay
Handbook on Workers Statutory Benefits
DOLE ADVISORY NO. 02 Series of 2012
San Miguel vs. Inciong, 103 SCRA 139 (1981).
Honda Philippines vs. Samahan Ng Malayang Manggawa Sa Honda, G.R. No. 145561,
June 15, 2005
Philippine Airline Incorporated vs. PALEA, G.R. No. 142399, March 12, 2008
R&E Transport vs. Latag, G.R. No. 155214, February 13, 2004
Petroleum Shipping Limited vs. NLRC, G.R. No. 148130, June 16, 2006
SEPT. 30

VII. Working Conditions for Special Groups of Employees


RA 10151 (Employment of Night Workers)

Women Workers:
o Discrimination
o Stipulation Against Marriage
o Prohibited Acts
o Classification of Certain Women Workers
o Anti-Sexual Harassment Act (RA 7877)

CASES:

o Del Monte Philippines, Inc. vs. Velasco, G.R. No. 153477, March 6, 2007
o PT&T vs. NLRC 272 SCRA 596
o Lakpue Drug, Inc. vs. Belga, G.R. No. 166379, October 20, 2005
o Star Paper Corp. vs. Simbol, April 12, 2006 G.R. No. 164774
o Duncan Association vs. Glaxo Welcome Philippines, G.R. No. 162994, September
17, 2004
o Domingo vs. Rayala, 546 SCRA 90
o Bacsin vs. Wahiman, April 30, 2008, G.R. No. G.R. No. 146053

Employment of Minors (RA No. 7678, RA No. 9231)


o Minimum Employable Age
o Sec. 12 RA 7610
o Sec. 14, RA 7610
o DO No. 065-04 (Rules and regulations of RA 9231)
o Hazardous Workplaces (Department Order No. 4-1999)

Employment of Househelpers (RA No. 10361)


o Definition
o Benefits
o Termination
o Reliefs for Unjust Termination

Employment of Homeworkers
o Definition
o Rights and Benefits
o Conditions for Deduction from Homeworkers Earnings

OCT. 7
Book Four
Health, Safety and Social Welfare

I. Medical and Dental Services


Escasinas, et.al vs. Shangri-las Mactan Island Resort. G.R. No. 178827, March
4, 2009.

II. Employees Compensation Coverage and when compensable

III. SSS Law (RA 8282)


a. Coverage
b. Exclusions from Coverage
c. Benefits
d. Beneficiaries

IV. GSIS Law (RA 8291)


a. Coverage
b. Exclusions from Coverage
c. Benefits
d. Beneficiaries

V. RETIREMENT PAY LAW


a. Coverage
b. Exclusions from Coverage
c. Components of Retirement Pay