SYLLABUS 2017

LABOR RELATIONS

Instructor: Atty. Francis U. Ku

Grading:
Midterm Examination 25%
Final Examinations 30%
Recitation 25%
Attendance 20%
Total: 100%

Guide Book: The Labor Code With Comments and Cases ,

2013 Edition No. 8
(Cesario A. Azucena Jr.)

Fundamental Principles and Policies

A. Constitutional provisions

1. Article II, Secs. 9, 10, 11, 13, 14, 18, 20.

2. Article III, Secs. 1, 4, 8.
3. Art. XIII, Secs. 1, 2, 3, 14.

B. Civil Code
1. Articles 1700 and 1701
2. Art. 1703 to 1712.

Article 1700. New Civil Code. The relations between capital and
labor are not merely contractual. They are so impressed with
public interest that labor contacts must yield to the common
good. Therefore, such contracts are subject to the special laws on
labor unions, collective bargaining, strikes and lockouts, closed
shops, wages, working conditions, hours of labor and similar
subjects.
Art. 1701 Neither capital nor labor shall act oppressively against
the other, or impair the interest or convenience of the public.

Human Relations Under Civil Code:

Art. 19 to 35.

The anti-social and oppressive abuse of its right to investigate

and dismiss its employees constitute a violation of Article 1701 of
the New Civil Code which prohibits acts of oppression by either
capital or labor against the other, and Article 21 on human
relations. The grant of moral damages to the employees by reason
of such conduct on the part of the company is sanctioned by
Article 2219, No. 10 of the Civil Code, which allows recovery of
such damages in actions referred to in Article 21 to 35.

Labor Code:1

1. Article 3 - Declaration of Basic Policy

2. Article 218 - Declaration of Policy
3. Article 219- Definitions
4. Article 255- Exclusive Bargaining Representation and Workers'
Participation in Policy and Decision Making

Constitution:

1. Art. II, Secs. 9, 10 and 18;

2. Art. III, Sec 8;

3. Art. IX B, Sec. 2 subsection 3;2

4. Art. XII, Sec. 12; and

5. Art. XIII, Secs. 3 and 14.

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Labor Code renumbered as a result of Republic No. 10151 entitled, "AN ACT ALLOWING
THE EMPLOYMENT OF NIGHT WORKERS, THEREBY REPEALING ARTICLES 130 AND 131
OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED FORTY-TWO, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES."
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For Civil Service Employees

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ART II

SECTION 9. The State shall promote a just and dynamic

social order that will ensure the prosperity and
independence of the nation and free the people from poverty
through policies that provide adequate social services,
promote full employment, a rising standard of living, and an
improved quality of life for all.

SECTION 10. The State shall promote social justice in all

phases of national development.

SECTION 18. The State affirms labor as a primary social

economic force. It shall protect the rights of workers and
promote their welfare.

ARTICLE III

SECTION 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 XII

SECTION 12. The State shall promote the preferential use

of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them
competitive.

ART XIII (Social Justice and Human Rights)

SECTION 3. The State shall afford full protection to

labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-

organization, collective bargaining and negotiations, and

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 peaceful concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making
processes affecting their rights and benefits as may be
provided by law.

The State shall promote the principle of shared

responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in
the fruits of production and the right of enterprises to
reasonable returns on investments, and to expansion and
growth.

SECTION 14. The State shall protect working women by

providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable
them to realize their full potential in the service of the
nation.

Termination of Employment

A. Employer-employee relationship

1. Four-fold test

2. Probationary employment

3. Kinds of employment

a) Regular employment
b) Project employment
c) Seasonal employment
d) Casual employment

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 e) Fixed term employment

Define "ENDO".

4. Job contracting and labor-only contracting

a) When is there job contracting?

b) When is there labor-only contracting?
c) Conditions that must concur in legitimate job contracting
d) Effects of finding that there is labor-only contracting

DOLE Department Order No. 174 Series of 2017

(Rules Implementing Articles 106 to 109 of the Labor Code,
As Amended)

B. Termination of employment

1. Substantive due process

a.) Just causes

(i) Serious misconduct or willful disobedience

(ii) Gross and habitual neglect of duties
(iii) Fraud or willful breach of trust (loss of trust and
confidence)
(iv) Abandonment of employment;
(v) Termination of employment pursuant to a union
security clause
(vi) Totality of infractions doctrine

Must the rule of discipline also be fair per se? Is this part of
substantive due process?

b.) Authorized causes

(i) Redundancy, retrenchment and closure

(a) Procedural steps required
(b) Requirements for valid retrenchment/redundancy
(c) Criteria in selecting employees for dismissal
(d) Standards to be followed

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 (ii) Disease or illness

c.) Termination of employment by employee/resignation

d. ) Retirement

2. Procedural due process

a) Procedure to be observed in termination cases

b) Guiding principles in connection with the hearing
requirements in dismissal cases.
c) Agabon doctrine

3. Reliefs for illegal dismissal

a) Reinstatement aspect

(i) Immediately executory

(ii) Actual reinstatement
(iii) Payroll reinstatement

b) Separation pay in lieu of reinstatement

(i) Strained relation rule

c) Backwages

d) Constructive dismissal

4. Preventive suspension

5. Quitclaims.

Management Prerogative

A. Discipline
B. Transfer of employees

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Labor Relations

A. Right to self-organization

1. Who may unionize for purposes of collective bargaining

a) Who cannot form, join or assist labor organizations
b.) Definition of managerial, supervisory and rank-and-file
employee.

2. Bargaining unit
a) Test to determine the constituency of an appropriate
bargaining unit
b) Voluntary recognition
(i) Requirements
c) Certification election
(i) In an unorganized establishment
(ii) In an organized establishment
(iii) Rules prohibiting the filing of petition for
certification election
(iv) Requirements for validity of certification election
(v) Protests and other questions arising from conduct
of
certification election

d) Run-off election
e) Re-run election
f) Consent election
g) Affiliation and disaffiliation of the local union from the
mother union
(i) Substitutionary doctrine

h) Union dues and special assessments

(i) Requirements for validity
(j) Agency fees

B. Right to collective bargaining

1. Duty to bargain collectively

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 a) Kiok Loy ruling

2. Mandatory provisions of CBA

a) Grievance procedure
b) Voluntary arbitration
c) No strike-no lockout clause
d) Labor management council

3. Unfair Labor Practice in collective bargaining

a) Bargaining in bad faith

b) Refusal to bargain
c) Individual bargaining
d) Blue sky bargaining
e) Surface bargaining

4. Unfair Labor Practice (ULP)

a) ULP of employers
b) ULP of labor organizations

C. Right to peaceful concerted activities

1. Forms of concerted activities

2. Who may declare a strike or lockout?
3. Requisites for a valid strike
4. Requisites for a valid lockout
5. Requisites for lawful picketing
6. Assumption of jurisdiction by the Secretary of Labor or
certification of the labor dispute to the NLRC for compulsory
arbitration

(Read DOLE Department Order 40-H-13 Series of 2013)

7. Nature of assumption order or certification order

8. Effect of defiance of assumption or certification orders
9. Illegal strike:
a) Liability of officers of the unions
b) Liability of ordinary workers
c) Waiver of illegality of strike
10. Injunctions

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 a) Requisites for labor injunctions
b) Innocent bystander rule

Procedure and Jurisdiction

A. Labor arbiter
1. Jurisdiction
2. Effect of self-executing order of reinstatement on back
wages
3. Requirements to perfect appeal to NLRC

B. National Labor Relations Commission (NLRC)

1. Jurisdiction
2. Requirements to perfect appeal

C. Bureau of Labor Relations med arbiters

1. Jurisdiction (original and appellate)

D. National Conciliation and Mediation Board

1. Conciliation vs. Mediation
2. Preventive mediation

E. DOLE Regional Directors

F. DOLE secretary
1. Visitorial and enforcement powers
2. Power to suspend effects of termination

G. Voluntary arbitrators
1. Submission agreement
2. Rule 43, Rules of Court ; Phil. Electric case G.R. 168612
Dec. 10, 2014 ---appeal is now ten days.

H. Court of Appeals
1. Rule 65, Rules of Court

I. Supreme Court
1. Rule 45, Rules of Court

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J. Prescription of actions
1. Money claims
2. Illegal dismissal
3. Unfair labor practice
4. Offenses penalized by the Labor Code and Implementing
Rules and regulations issued pursuant thereto

Case on Prescription (Service Incentive Leave Pay) Autobus

Transport System v. Bautista G.R. No. 156367 May 16,2005

CASES:

Introduction:

Art. 219- Definition of Employee

Concept of employer-employee relationship and liability

Medical negligence cases (Doctor-Consultants)

Ramos v. C.A. Dec. 29, 1999

Prof. Services Inc. v Agana Jan. 31, 2007

Prof. Services Inc. v. Agana Feb. 2, 2010 (denial of 2nd M.R.)

Locsin v. PLDT Oct. 2, 2009- security guard (who is the

employer?)

Aquinas v. Inton Jan. 26, 2011

Cathechist conducted by nun of a religious order. Is the

school the employer or congregation?

Republic v. Asia Pro -- Nov. 23, 2007 Can Cooperative be

employers?

Bernalte v PBA Sept. 14, 2011- PBA referees- employee or

not?

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Orozco v. CA Aug. 13, 2008) - Inquirer's newspaper
columnist- employee or not?

Reyes v. Glaucoma Research Foundation June 17, 2015

-economic reality test
-consultants or employees?

Art. 224 Jurisdiction

Halaguena v. PAL Oct. 2, 2009

Compulsory retirement of females; is it labor issue or not?
Who has jurisdiction? RTC or NLRC?

Portillo v Lietz ( Oct. 10, 2012)- non-compete clause- claim

for liquidated damages- civil courts

Milan v NLRC Feb. 4, 2015 - employer may hold separation

pay pending return of property (ejectment from company
premises)

-jurisdiction of claims by employer for damages

Locson v. Mekeni ( Dec. 9, 2013)- car installment refund of

car plan

Leal v.Sangco ( Jan. 19, 2011) - corporate dispute or not?

Art. 228 Attorney's Fees- How to protect our fees

Malvar v Kraft Foods ( Sept. 9, 2013) - client compromised

without lawyer's consent- How to remedy?

Section 232

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Montano v. Verceles
July 26, 2010 concurrent jurisdiction of BLR and Reg.
Director in inter and intra union disputes?

Art. 233- compromise and quitclaims- validity

RMN v. Amurao Oct. 22, 2014

question of fact
-dire necessity- is it a ground to nullify quitclaim?

J-Phil Marine Inc. v NLRC (Aug. 8, 2011)

-legal counsel did not sign compromise. Valid?

Art. 252

Victoriano v Elizalde Rope Workers Union

Sept 12, 1974
Hierarchy of religious freedom

Art. 253
BSP v. COA June 7, 2011
Is BSP government or private?

Art. 258

BPI v BPI Employees Union Aug 18, 2010

Mergers effect on absorbed employees? Are they required to
join new union?

VA Art 272
Casiano Navarro III v. Damasco
July 14, 1995
Code of conduct violation- need to go thru grievance
machinery?

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STRIKES, PICKETS AND LOCKOUTS

Art. 277 and 278

Solidbank v Gamier Nov. 15, 2010
rally in front of DOLE during assumption order of DOLE

ILLEGAL OR NOT?

Bascon v CA Feb. 5, 2004 - Wearing armbands

NUHWRAIN V C.A. Nov. 11, 2008

Dusit hotel employees shaved heads - illegal strike or not?

TERMINATION OF EMPLOYMENT

Security of tenure

STATUS of EMPLOYEES

GMA network v. Pabriga Nov. 27, 2013 - media station staff.

difference between project and fixed term employees.

Art. 294 (Regular and Casual Employment)

FVR Skills v. Seva Oct. 22, 2014- Janitor- regular or project?

Plasos v. PNCC July 3, 2013 -construction project extended

without qualification. Are workers project or regular?

BRENT SCHOOL VS.ZAMORA Feb. 5, 1990

fixed term employment- LANDMARK CASE

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ARLENE SAMONTE ET AL. V. LA SALLE GREENHILLS, G.R.
No. 199683 Feb. 10, 2016
(School doctor and dentist )- fixed term

Mercado v NLRC Sept. 5, 1991

LANDMARK CASE- re project employee in agriculture

Teachers:

YOLANDA MERCADO V. AMA April 13, 2010- fixed term

/contractual? teachers

St.Paul v. Ancheta Sept. 11, 2011- probation for teachers

Colegio de Santissimo Rosario v. Rojo Sept 4, 2013 -

probation for teachers

Manaois v. St. Scholastica Dec. 11, 2013- part time status of

teachers failing to get a master's degree

Journalist:

Fuji v Espiritu- Dec. 3, 2014

journalist under contract- fixed term , regular or independent
contractor?

JUST CAUSES FOR TERMINATION:

IMASEN v. ALCON ( Oct. 22, 2014) -- sex at workplace

Alilem Multi-Purpose Cooperative v. Bandiola ( Feb 25, 2013,

G.R. No. 173489) - Engaging in Illicit Sexual relations
prohibited under a personnel policy is a ground for
termination even if does not connect to the performance of

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his duties. - co-employee complains that married employee
having relationship with co-employee's sister.

It was based on "ethical grounds" i.e. disgrace to the

community.

Lagrosas v Squibb ( Sept. 12, 2008) - lovers' fight outside

workplace - serious misconduct?

Immorality (form of serious misconduct):

Chua Qua v. Clave ( Aug. 30, 1990) -LANDMARK CASE on

serious misconduct/romantic relationship

Leus v. St. Scholastica Jan. 28, 2015 - pregnant teacher in

catholic school - not immoral or disgraceful conduct ( both
free and consenting adults fro purely public and secular view
of morality).

a.) totality of circumstances surrounding the conduct; and

b.) Assessment of the circumstances with the prevailing
norms of conduct i.e. what society considers moral and
respectable.

Christine Joy Cadiz v. Brent Hospital ( G.R. 187417, Feb. 24,

2016)-- immorality of HR pregnant out of wedlock and
deemed terminated until she marries her boyfriend.

SC: not immoral but reduced backwages.

Duncan v. Glaxo - Sept. 17, 2008- marrying employee of

competitor against company rules

PTT V NLRC- NO MARRIAGE STIPULATION VOID MAY 23,

1997

STAR PAPER V SIMBOL April 12, 2006 - rule vs marriage

with a co-employee?

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Drug cases ( DOLE Department Order No. 53-03 Series of
2003)

Analogous causes:

Yrasegui v PAL Oct. 17, 2008 - fat flight steward

ART. 297- AUTHORIZED CAUSES

SERIOUS LOSSES

G.J.T. Rebuilders v. Ricardo Ambos et al (Jan. 28, 2015)

If the employer closes the business and it is not losing or the

loss is not "serious ", then the proper separation pay is
equivalent to one-month pay or to at least one-half-month
pay for every year of service, whichever is higher.

Summary of termination rules per DOLE DEPARTMENT

ORDER NO. 147-15 Series of 2015
(Amending The Implementing Rules and Regulations of Book
VI Of The Labor Code of the Phils.)

BACKWAGES

LANDMARK CASE -AGABON vs. NLRC ( Nov. 17, 2004)

- no procedural due process but with just cause

Note: Other cases to be assigned in class.

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