MJManuel 2019
SELF-ORGANIZATION
• Concept
• Purposes
• Components
• Types of Labor Organizations
• Company level - independent unions & chapters
• Multi-company – federations & trade union centers
Independent Unions
• Registration
• 20% membership
requirement
• Certificate of
Registration
• Personality starts upon
ISSUANCE of certificate
• Can affiliate with a
federation
• As an affiliate, it
remains the principal in
collective bargaining
• Can disaffiliate at any
time
• Not affected by
cancellation of
federation’s legal
personality
Federations
• Registration
• 10 chapters that are
SEBAs in their
establishments
• Personality starts upon
ISSUANCE of certificate
• Can create chapters after
it has acquired its own
certificate of registration
and legal personality
• UNLIKE Trade Union
Center, which cannot
create chapters
Chapters/Locals/Chartered
Locals
• Chartering
• No minimum
membership
• Charter certificate
• Personality acquired:
• Initially, through charter
certificate BUT limited
to filing PCE
• Full personality
acquired upon
SUBMISSION of charter
certificate & additional
documents
• Can be considered an
affiliate if it subsequently
registers as an
independent union, but
remains part of the
federation
• If it has not registered, it
cannot disaffiliate – it
loses its legal personality
• Cancellation of the
federation’s legal
personality automatically
cancels the personality
of chapters

SELF-ORGANIZATION
Cancellation of Personality
• Petition for Cancellation
• Based on fraud, false
statement,
misrepresentation
• Constitution
• Election of officers
• Voluntary dissolution
• NOT grounds for
cancellation
• Failure to comply with
reportorial
requirements
• Violation of rights of
members
• Mixed membership
• In case of mixed
membership –ineligible
members or members
outside the bargaining
unit deemed removed
from roster of members
Compulsory membership
• Through union security
clause in CBA
• In favor of SEBA
• Covers all employees (old &
new)
• Does not cover those who
are already members of
another union
• Cannot cover religious
objectors
• But there is no legal
prohibition for those whose
religious belief prohibits
union membership
MJManuel 2019
Eligibility
• 1st day of employment,
regardless of
employment status
• Managerial
• Policy determining
• Not eligible
• Confidential employee
• Fiduciary relationship
• Necessary access to
labor relations
information
• Not eligible
• Supervisory
• Effective
recommendation
• Not merely routinary
• Eligible
• Rank & File
• Eligible
• Supervisory & Rank &
File employees cannot
be part of same
bargaining unit
• Supervisory union & R&F
union can be part of the
same federation
Visitorial Powers
• Secretary has power to
inquire into financial
activities of unions
• 20% of membership can
request inquiry
• Cannot be conducted
within freedom period or
30 days prior to election
of officers
• 30% or member/s
specifically concerned
can report violation of
rights of members
 MJManuel 2019

REPRESENTATION
• Concept
• Sole & Exclusive Bargaining Agent (SEBA)
• Bargaining Unit
• Commonality of interest – substantial similarity
• Occupational or geographic grouping
• Will of the employees
• Organized vs Unorganized
• Manner of selection
•
• Sole & Exclusive Bargaining Agent (SEBA)

Certification election
• Consent election
• Request for SEBA Certification
• Has replaced Voluntary Recognition
• Certification done by DOLE
• Requirement: only existing legitimate labor organization

Certification Election Election proper

• Petition for CE • Validity of CE – majority
• Anytime if unorganized; within of eligible voters
freedom period if organized • Eligible voters –
• Incumbent SEBA becomes forced members of bargaining
intervenor unit 3 months prior to
• If organized, 25% signature filing of Petition for CE
support required by Rules
• Med-Arbiter has jurisdiction
• Challenged voters shall
• Steps
be allowed to vote but
• Preliminary conference
ballot shall be
• Agreement or Decision
segregated
• Pre-election Proceedings • Failure of election – no
• Election proper 1st majority
• Bars
• 1 year/election year bar • Re-run – rescheduling of
• Contract bar CE after failure
• Deadlock bar • Winner – majority of
• Negotiations bar
valid votes cast
• Abstention – considered
Principles/Rules valid votes
• If no Petition for CE, SEBA retains • Run-off
status
• NOT grounds for opposition/denial: • Valid CE but no winner
• Mixed membership • At least 3 choices (i.e., at
• Questions on legal personality least 2 unions)
• New CBA negotiated by SEBA • Total union votes = at
• Petition for Cancellation of union’s least 50% of total votes
personality will not prevent CE & not cast (valid and spoiled)
justify suspension of proceedings • Top 2 unions will be
• SEBA can negotiate CBA despite contenders – “No Union”
pendency of Petition for CE choice will be eliminated
• GRANT of Petition in UNORGANIZED as a choice in Run-off
unit NOT APPEALABLE
• Employer is By-stander & cannot
participate. Employer can file
Petition if there is no SEBA and a
union demands to negotiate
• Employer-employee issue within
Med-Arbiter’s jurisdiction
 MJManuel 2019

COLLECTIVE BARGAINING
• Concept
• Mutual obligation to convene promptly, expeditiously and in
good faith
• For the purpose of negotiating:
• terms and conditions of employment
• plant level dispute settlement/grievance machinery
• Expected result – collective bargaining agreement (CBA)
• Does not compel any party to agree to the other’s proposal
• If there is an existing CBA, the duty entails respecting the CBA
• Violation of duty to bargain constitutes ULP
• Penalty for refusal to bargain – union’s proposal shall be
imposed on employer
• Single employer (mandatory) vs. Multi-employer (voluntary)

CBA Terms of CBA

• Effective limitation on
managerial prerogatives
• Ordinary violation is not ULP
• Gross violation of CBA is ULP
• Malicious/flagrant refusal to comply
with ECONOMIC provisions
• Must be ratified by members of
the bargaining unit
• Valid and binding even if not
registered, but will not bar
Petition for CE
• Steps for negotiating a CBA
• Union (or employer) presents
proposal
• Employer replies with its
counter-proposal
• Parties meet to discuss proposal
and counter proposal
• If differences are resolved –
agreement (CBA)
• If no agreement reached –
Deadlock
Principles/Rules
• CBA is law between the parties,
cannot be unilaterally modified by
one party without the consent of the
other
• Imposed CBA (arbitral award) is as
good as a CBA voluntarily agreed
upon by parties
• 5 years for the representation
aspect – this is fixed by law,
cannot be changed by parties
• The 60 day period at the end of
the 5th year (Freedom Period to
open representation issue) shall
not be affected by any
amendment, extension or
renewal of the CBA
• Term of all other provisions shall
be fixed by the parties, but must
be renegotiated not later than 3
years from execution
• Renegotiation is for amendments
to an existing CBA with a
remaining period, not negotiation
for a new CBA that will replace an
expired CBA
• Either party can serve a written
notice to terminate or modify the
agreement at least sixty (60) days
prior to its expiration date.
• This period is not the Freedom
Period; Freedom Period is not
affected by the expiration date
set by parties
• CBA holds over with full force and
effect even after expiration –
parties mandated to maintain
status quo until a new agreement
is entered into
• Subsequent CBA automatically
retroacts to day after expiration of
expired CBA if the new CBA is
entered into within 6 months
from expiry of old CBA
• If new CBA entered into beyond 6
months from old CBA’s expiry, no
automatic retroactivity, but
parties may agree to make the
new CBA retroactive

STRIKE
• Concept
• Temporary stoppage of work, by the concerted action of
employees, as a result of a labor dispute
• Stoppage can be in different forms
• walk-out, sit-down, slow down, mass leave
• picketing (marching) is not strike if it does not
amount to stoppage of work
Grounds
• Deadlock
• Factual incident, not dependent on
parties’ mutual declaration
• ULP
• Violation of the right to self
organization
• Has a criminal aspect (but
prosecution waits for labor case)
• Union busting - a special ULP
• dismissal from employment of duly
elected union officers, where the
existence of the union is threatened
• Grievance NOT a ground
• Inter/Intra union dispute NOT a
ground
• Good faith strike
• circumstances/ acts of management
justified employees’ belief in good
faith on commission of ULP, but final
decision rules otherwise
• strike is legal even without ULP
Principles/Rules
• No work no pay during strike
• unless employer refuses unconditional offer
to return to work (in a legal strike)
• No prohibition against hiring of
replacement workers
• Participation in a lawful strike shall
not constitute sufficient ground for
termination from employment
• In case of an illegal strike, union
members cannot be dismissed from
employment because of mere
participation, but officers who
knowingly participated in the strike
can be terminated from employment
• Commission of illegal acts will be a
ground for termination, whether
strike is legal or not.
MJManuel 2019
Procedural Requirements
• Notice of strike to be filed by a
company-level legitimate labor
organization (not by federation)
• If there is a SEBA, only the SEBA
can file
• Cooling-off period
• 30 days from Notice of Strike if
deadlock, 15 days if ULP
• If union-busting, not required
• Notice of Conduct of Strike Vote –
at least 24 hours before Strike
Vote
• Strike Vote
• Members of union (not bargaining
unit) will vote
• Majority must approve the strike
• Secret ballot
• DOLE presence not required
• Notice of Results of Strike Vote
• Strike ban – 7 days from Notice of
Results of Strike Vote
• Strike must be conducted without
prohibited activities (there are
prohibited activities that may be
committed by the employer)
• isolated violence not sufficient to
make a strike illegal
• violence must be pervasive before
it can make a strike illegal
Assumption of Jurisdiction /
Certification
• Special, plenary, immediately executory
• Return to work automatic
• Defiance by strikers – dismissal from employment
• Defiance by employer – payment of backwages
• For strikes affecting “industries
indispensable to national interest” (under
the Rules – hospital, power, water, air
traffic control)

EMPLOYER-EMPLOYEE
RELATIONSHIP
• Concept
• determined by operation of law
• cannot be denied/negated by parties’ agreement
• can co-exist and will not be cancelled out by other juridical
relationship (“dual juridical relationship”)
• not dependent on manner of compensation
Test
• “4-fold test”
• Hiring – selection can be implied
• Wages – designation is not material
• Firing – power to discipline (including
dismissal)
• Control
• control
• must relate to the manner, means,
methodology – how the work is done
• not only over the result or output
• existence of the power, not its actual
exercise, is needed
• existence of power may be inferred
from the circumstances – work is
performed within the premises
owned/controlled by the employer
• company guidelines may be proof of
control if they cover the manner of
work, not just the result
• economic dependence test
• “usual necessity/desirability”
standard NOT appropriate test
• This test is for determination of
regular employment status
• exclusivity is not a requirement,
but could be an indicator
Non-employees
• corporate officer – position must be
mentioned in the by-laws
• “Talents”
• Apprentices & learners
Employees
• Any woman who is permitted or
suffered to work, with or without
compensation, in any night club,
cocktail lounge, massage clinic, bar or
similar establishments under the
employer’s effective control or
supervision for a substantial period
MJManuel 2019
Contracting
• DOLE Secretary is given power to regulate
by restricting or prohibiting contracting for
the protection of workers’ rights
• Rules prohibit labor-only contracting
• Labor-only contracting:
• no substantial capital/investment
• work is directly related to the
business of the principal
• control is in the hands of the principal
• Possession of substantial capital will not be
enough to escape liability as labor-only
contractor - any of the elements will be
enough for the arrangement to be labor
only
• Effect of labor-only contracting:
• principal is the employer
• contractor is a mere agent of the
principal
• In legitimate contracting, the principal is
liable as indirect employer to pay the
wages for work performed under the
contract in case of contractor’s failure to
pay
• Other than wages, principal is also
solidarily liable for any violation of any
provision of the law (jurisprudence added
qualification: if principal is at fault – has
connived with the contractor in committing
the violation)
• Principal is also employer when there is
commission of any of the prohibited/illicit
practices (even if there is no labor-only
contracting)
• Non-registration – presumption that there
is labor-only contracting; registration
merely removes the presumption, and not
a guarantee that there will be no finding of
labor-only contracting
• DO 174 applies to cooperatives, but not to
BPOs & construction industry
 MJManuel 2019
CLASSIFICATION OF
EMPLOYMENT
• Concept
• determined by operation of law; cannot be denied/negated
by parties’ agreement
• based on reasonable connection between the work of the
employee and the business of the employer
• mode of compensation is not material

Regular Employee Project Employee

• Test: usual necessity or desirability
of the work to the usual trade or
business of the employer
• not equivalent to full time
employment (in one case, however,
SC said regular employees are
entitled to full time employment if
work is available)
• exclusivity is not a requirement
• no minimum period required
• in case of doubt due to vague
contract, employee shall be
considered regular
Probationary Employee
• not a statutory requirement for
regular employment
• essence is evaluation of the
employee’s qualifications
• maximum period is 6 months as a
general rule
• except teachers – 3 years + full time
• work requiring longer period for assessment
may justify longer probation period
• 2nd chance after failing 1st probation valid
• standards for assessment must be
made known to the employee at the
start of engagement, otherwise,
employment is regular
• if employee is allowed to work
beyond the probationary period
without evaluation, employee
becomes regular by operation of law
Fixed-term employee
• employment is limited to a period
• must be voluntarily entered into by
parties who must have dealt with each
other on more or less equal bargaining • Work is not usually necessary or desirable to
position
• must not be used as a way to
• Employment becomes regular (but only with
circumvent right to attain regular
employment status
• Project: separate undertaking, separable from
the res of the business, BUT can be part of the
regular business operations
• Employment is coterminous with the project
• Completion stage of the project must be
determined and made known to the
employee at the start of employment
• Completion stage does not refer to a fixed
period or a set end date – a tentative date
may be set as an estimated completion point
• If employee is made to perform tasks outside
the project or even after the completion of
the project, employment is regular
• Maraguinot doctrine/”work pool”:
• continuous rehiring for different
projects; for the same task or nature of
tasks; tasks are vital, necessary,
indispensable to the usual business of
the employer
• employment becomes regular &
relationship continues after the
completion of a project
• If no project is available, employee is
considered on “temporary lay-off
without pay”, but employee is entitled
to be given work when there is a new
project that requires the employees’
task/s, otherwise, it will be a dismissal
Seasonal Employee
• engagement is for work that is done/available
only during a season, i.e., a specific period
within a calendar year
• If employee is made to perform tasks other
than the seasonal work, or after the
completion of the seasonal work, or
throughout the year, employment is regular
• Repeated engagement season after season
will convert employment to “regular
seasonal”, but during off-season, employee is
on no-work no-pay status
Casual Employee
the usual trade or business of employer
respect to the specific activity) after 1 year of
service, continuous or broken

LABOR STANDARDS
• Concept
• terms and conditions of employment are fixed generally by
the employer as part of managerial prerogatives
• collective bargaining gives the employees the opportunity
to participate in decision-making concerning terms and
conditions of employment
• State does not interfere, except in setting minimum
standards, including setting the minimum wage
Wage
• remuneration for work performed
or to be performed
• includes fair & reasonable value of
facilities – for primary benefit of employee
• Supplements – for the primary benefit of
the employer; not part of wage
• only minimum wage rate is set by
the government through the Wage
Boards; they cannot grant across
the board increase
• wage distortion
• happens only when there is a law/wage
order setting a new minimum wage rate
• increase in prescribed rates results in the
elimination or severe contraction of
intentional quantitative differences in
wage or salary rates
• must be corrected through grievance
machinery; if no CBA/union, then, NCMB
first, then, NLRC
• Manner of payment
• Legal tender or check/bank
• Directly to the employee
• At or near place of work
• 2x a month, intervals not exceeding
16 days
• Prohibitions
• Interference in disposal of wage
• Withholding
• Wage deductions, unless those
authorized
• False reporting
• Worker preference – in case of
employer’s bankruptcy, workers shall
enjoy first preference as regards their
unpaid wages and other monetary
claims. They shall be paid in full
before the claims of the Government
and other creditors may be paid. (SC:
subject to concurrence/preference of
credits)
• Double indemnity – civil
liability/penalty for non-
payment of correct wages
MJManuel 2019
Other statutory benefits
• Over time work
• Normal working hours = not exceeding 8 in a day
• Meal break of at least 1 hour not compensable working
time; but compensable if reduced to less than 1 hour, and
in any case, should not be less than 20 minutes
• Not compulsory, except in emergency cases
• Compensated with additional 25% / 30% premium rate
• Cannot be offset with undertime on another day
• Based on “regular wage”, i.e., cash wage without
•
deducting value of facilities
Compressed work week, if compliant with rules, will
justify non-payment of OT pay even if work may exceed 8
hours per day
• Night shift differential
• Night shift: 10pm-6am
• Compensated by adding 10% differential
• On top of OT premium rate, if any
• Night work allowed, even for women employees, but
subject to right to alternative to night work in some cases,
eg. pregnancy – 16 weeks pre & post child birth
• Field personnel excluded from coverage –
those who work outside the premises of
employer AND whose actual time of work is
unsupervised by employer
• Rest period
• 24 consecutive hours for every 6 consecutive work days –
this rest day is not compensated
•
•
Work during rest day not compulsory as a general rule
Work on rest day compensated by adding 10% premium
• Scheduling of rest day is employer’s decision, unless
employee’s preference is base don religious grounds; in
case of conflict, compromise – 2 days selected by
employer, 2 days selected by employee
• Holidays & Special days
• Holiday pay is payment for an unworked holiday
• Requirement for holiday pay – employee must not have
been absent without leave on the working day preceding
the holiday
• Worked holiday compensated by 2x the regular wage
• Special day – no work no pay; if worked, paid with 30%
premium
• New special day: Dec. 8 – Immaculate Conception
• Leaves
• Service Incentive Leave (SIL) – 5 days; requirement – must
have rendered at least 1 year of service
• Maternity leave – based on OLD law (60/78)
• Paternity leave – 7 days, must be married & cohabiting
• VAWC leave – 10 days for legal/medical reasons
• Special leave for women for gynecological disorder
requiring surgery – 2 months
• Parental/Solo Parent leave – 7 days
• Service Charge –OLD law: 85% share; if
stopped, share must be integrated in wage
13th month pay
• 1/12th of total basic pay for the year
• Minimum requirement: 1 month of service
• Paid on or before December 24
• Excluded: purely commission based,
boundary, task basis, pakyaw employees
• Included: piece rate workers

DISMISSALS
• Concept
• Right to security of tenure is enjoyed not only by regular
employees
• Dismissal must be for cause, and must comply with due
process requirements
Just Causes
• Based on fault of employees
• Grounds:
• Gross misconduct – work-related
• Wilful disobedience – order defied
must be work related, lawful, made
known to employee
• Gross & habitual neglect – single
offense cannot justify termination
• Fraud or willful breach of trust –
applies only to managerial employees
& those who occupy positions of
utmost trust and confidence
(handling cash or property of
employer)
• Crime
• Analogous reasons – Rules require
that analogous causes be identified in
company guidelines
• Procedure:
• 1st notice – identifying acts &
potential cause for termination;
giving employee opportunity to
explain in writing (5 day period)
• Face to face conference/hearing –
NOT required unless employee asks
for it in writing, it is part of company
policy, nature of case requires it
• 2nd notice – informing employee of
dismissal; dismissal can be effective
immediately
• No separation pay (financial
assistance granted in some cases)
• Preventive suspension –
• Only if continued employment poses
a serious and imminent threat to the
life or property of employer/co-
workers.
• Maximum of 30 days, otherwise, paid
• Probationary employees may be
terminated for just cause or failure
to meet standards
MJManuel 2019
Authorized Causes
• Based on business/financial conditions
• Grounds:
• Installation of labor saving device
• Redundancy – workers in excess of needs of
operations; fact of redundancy must be
proved, not merely declared
• Retrenchment to prevent losses –
retrenchment must be last resort &
reasonably expected to successfully
prevent/mitigate losses
• Closure or cessation of operations – in some
cases, partial closure had been considered as
valid cause
• Procedure:
• Individual notice of termination to
employee/s and notice to DOLE
• Notice must be given at least 30 days before
effectivity of termination
• SC: Employer may opt to require dismissed
employees to work during the 30-day period
• separation pay – except in closure due to
serious business losses
Remedies for illegal
dismissal (without cause)
• Reinstatement to former or equivalent position,
without loss of seniority rights
• If reinstatement is not possible or not advisable
(due to strained relations), then, separation pay
in lieu of reinstatement
• Full backwages (combined with reinstatement or
separation pay)
• Damages – based on Civil Code provisions
• Attorney’s fees
• If there is a cause for the dismissal, but
procedural requirements not complied with,
dismissal is NOT illegal; dismissed employee will
get nominal damages
Others
• Disease – not limited to contagious diseases;
medical certificate is proof of cause, not just a
procedural requirement; if employee left
employment, no separation paya
• Floating status – similar to temporary
suspension of operations; limited to 6
months, otherwise, constructive dismissal
• Constructive dismissal – employee placed on
unbearable working conditions, compelling
quitting
• Resignation – 1 month notice required

DISPUTE SETTLEMENT
Labor Arbiter
• Jurisdiction:
• ULP
• Termination disputes
• Money claims, if with a claim for
reinstatement
• Money claims exceeding P5,000
• All other claims arising from
employer-employee relationships,
including damages, except social
security benefits
• Legality of strikes and lockouts
• Claims of OFWs
• Decision appealable to NLRC (not
subject to MR) within 10 days
• If there is a finding of illegal
dismissal, reinstatement aspect
immediately executory pending
appeal; employer may choose
between actual or payroll
reinstatement
• Employer’s appeal must be
perfected by filing an appeal bond
equivalent to the monetary award
(subject to rules on reduction)
• Where the resolution of the dispute
requires expertise in the application
of the general civil law, LA has no
jurisdiction
NLRC
• Jurisdiction:
• Appellate jurisdiction over cases
decided by LA
• Appellate jurisdiction over decisions
of Regional Director/hearing officer
in simple money claims
• Injunction/restraining order against
prohibited acts
• Cases referred by the DOLE Secretary
through a certification order
• Decision subject to MR, becomes
final after 10 days from resolution
• Decision subject to Original Action
through a Petition for Certiorary
under Rule 65, within 60 days
• A decision finding illegal dismissal
and ordering reinstatement is not
immediately executory; it will
require a Writ of Execution.
MJManuel 2019
Regional Office (Director or
Med-Arbiter)
• Jurisdiction:
• Simple money claims up to P5,000 per
employee, provided there is no claim for
reinstatement
• Visitorial &enforcement powers - inspection
cases; premised on existing employer-
employee relationship
• Certification election cases
• Procedure:
• Simple money claims cases appealable to
NLRC
• Inspection cases/writ of compliance
appealable to DOLE Secretary
• CE cases appealable to DOLE Secretary
DOLE Secretary
• Jurisdiction:
• Assumption of Jurisdiction cases (cases
subject of Certification Order will be decided
by NLRC)
• Visitorial &enforcement powers - inspection
cases; premised on existing employer-
employee relationship
• Appellate jurisdiction over CE cases &
inspection cases subject of Writ of
Compliance
• Procedure:
• Decision in CE cases not subject to MR
• Decision subject to Original Action through a
Petition for Certiorary under Rule 65, within
60 days
BLR/Industrial Relations
Division in Regional Offices
• Inter/Intra Union disputes:
• BLR – original jurisdiction over cases involving federations and
appellate jurisidiction over cases involving independent
unions and chapters
• IRD of Regional Office (Med-Arbiter) – original jurisidiction
over cases involving independent unions and chapters
• Decision of IRD-Reg. Office appealable to BLR
• Decision of BLR in federation cases appealable to
Secretary of Labor
• Decision of BLR in appealed cases decided by IRD
Regional office subject to Original Action under
Rule 65, Petition for Certiorari
Voluntary Arbitrators
• Unresolved grievances
• Other labor disputes referred by the parties
Court of Appeals
• Review of decisions of Secretary, BLR, NLRC
through Rule 65
• Review of decisions of Voluntary Arbitrators
under Rule 43