LABOR LAW 1-ATTY.

TIOFILO VILLANUEVA

12.4.18- FIRST MEETING

Assignment: Labor Code (Up to Section 42), Constitutional Provisions

CONSTITUTIONAL PROVISIONS

1. Art. II, Section 10 (Social Justice)

Section 10. The State shall promote social justice in all phases of national development.

2. Art. II, Section 18 (Protection to Labor)

Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and
promote their welfare.

NOTE: FIRST OF TWO PROTECTION-TO-LABOR CLAUSES

3. Art. III, Section 8 (Right to Organize Unions)

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.

NOTE: THIS IS KNOWN AS “FREEDOM OF ASSOCIATION.” THIS PROVISION IS THE BASIS

FOR THE EMPLOYEES’ RIGHT TO SELF-ORGANIZATION.

4. Others under Art. III

Section 1. No person shall be deprived of life, liberty, or property without due process of law, nor shall any person
be denied the equal protection of the laws.

NOTE: THIS CANNOT BE INVOKED BY EMPLOYEES AGAINST THEIR EMPLOYERS IN

CASES OFTERMINATION OF THEIR EMPLOYMENT.

Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of
the people peaceably to assemble and petition the government for redress of grievances.

NOTE: THIS FREEDOM IS RELEVANT ONLY IN PICKETING AND NOT IN STRIKE.

Section 10. No law impairing the obligation of contracts shall be passed.

NOTE: THE CONCEPT OF THIS RIGHT IN POLITICAL LAW IS SIMILAR IN LABOR LAW.

Section 16. All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.

NOTE: THIS CAN BE INVOKED IN LABOR CASES AT ALL LEVELS.

Section 18 (2)

No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have
been duly convicted.

NOTE: THIS PRINCIPLE IS RELEVANT ONLY IN TWO (2) SITUATIONS: NAMELY: (1)
RESIGNATION AND (2) RETURN-TO-WORK ORDER IN NATIONAL INTEREST CASES. THIS
MEANS THAT:
(1) AN EMPLOYEE HAS THE RIGHT TO RESIGN SINCE HE CANNOT BE FORCED TO
WORK AGAINST HIS WILL;
(2) A STRIKER CAN BE ORDERED TO RETURN TO WORK EVEN AGAINST HIS WILL IN
NATIONAL INTEREST CASES. ACCORDINGLY, IT IS NOT IN VIOLATION OF THE

INVOLUNTARY SERVITUDE PRINCIPLE.

5. Art. XIII, Section 3

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 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 to investments, and to expansion and
growth.

NOTE: SECOND OF TWO PROTECTION-TO-LABOR CLAUSES

6. Art. XIII, Section 14

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.

• May cases be filed for violation of the foregoing constitutional provisions?

The labor-related provisions of the Constitution are merely statements of principles and are all NOT self
executing provisions. They are used only as guides for judicial decisions or legislative enactments. Being
mere statement of principles and policies, no case can be filed for their violation. Only violation of the
laws passed to implement these principles and policies can be proper subject of court litigation.

• What are the kinds of procedural due process that may be asserted in labor cases?
The following are the kinds of procedural due process that may be invoked in labor cases, to wit:
(1) Procedural due process that may be invoked against the employer during the investigation of the
employee’s administrative case at the company-level that may lead to his dismissal:

a. Statutory due process per Agabon doctrine which refers to the due process provision in the Labor
Code (Article 277[b]); and

b. Contractual due process per Abbott Laboratories doctrine which refers to the due process
prescribed in the Company Rules and Regulations or Code of Conduct or Code of Discipline.

NOTE: CONSTITUTIONAL DUE PROCESS UNDER ARTICLE III, SECTION 1 OF THE CONSTITUTION CANNOT BE
INVOKED AGAINST A PRIVATE PARTY LIKE THE EMPLOYER. IT CAN ONLY BE ASSERTED AGAINST THE STATE
OR GOVERNMENT. HENCE, THE EMPLOYEE BEING INVESTIGATED CANNOT INVOKE CONSTITUTIONAL DUE
PROCESS BUT ONLY STATUTORY AND CONTRACTUAL DUE PROCESS.

(2) Procedural due process that may be invoked once a case has already been filed in the labor court,
such as the Labor Arbiter or the NLRC, and/or brought to higher courts:

a. Constitutional due process under Section 1, Article III of the Constitution since this right cannot be
invoked against the private employer but only against the State or government as represented by
Labor Arbiters, NLRC, CA and SC. The rule since Agabon is that compliance with the statutorily-
prescribed procedural due process under Article 292(b) [277(b)] of the Labor Code would suffice. It is
not important in determining the validity of the termination whether there is an existing company policy
which also enunciates the procedural due process in termination cases. However, under the latest
doctrinal en banc ruling in the 2013 case of Abbott Laboratories, Philippines v. Pearlie Ann F. Alcaraz,
it is now required that in addition to compliance with the statutory due process, the employer should
still comply with the due process procedure prescribed in its own company rules now called
CONTRACTUAL DUE PROCESS. The employer’s failure to observe its own company-prescribed due
process, IN ADDITION TO STATUTORY DUE PROCESS, will make it liable to pay an indemnity in the form of
nominal damages, the amount of which is similar to the P30,000.00 awarded under the Agabon
doctrine.

• When can an employee invoke constitutional due process and right to equal protection of the laws?
As distinguished from company-level investigation conducted by the employer where only STATUTORY
and CONTRACTUAL DUE PROCESS can be invoked, a dismissed employee can invoke constitutional
due process only when he files an illegal dismissal case in the labor court and he is deprived due
process by a government functionary like the Labor Arbiter or the Commission (NLRC), or Court of
Appeals on Rule 65 certiorari petition. The reason is that, at this stage, the government is now involved
through said labor tribunals.

• Is right to counsel mandatory?

No. Per the prevailing Lopez doctrine (see 2011 case of Lopez v. Alturas Group of Companies), the right
to counsel is neither indispensable nor mandatory. It becomes mandatory only in two (2) situations:
(1) When the employee himself requests for counsel; or
(2) When he manifests that he wants a formal hearing on the charges against him, in which case, he
should be assisted by counsel.
NEW CIVIL CODE

1. Art. 19

Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give
everyone his due, and observe honesty and good faith.

2. Art. 1700

Article 1700. The relations between capital and labor are not merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws
on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor
and similar subjects.

NOTES:

• Is Article 1700 of the Civil Code applicable to labor cases?

Yes, Article 1700 of the Civil Code provides:

“Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed
with public interest that labor contracts must yield to the common good. Therefore, such contracts are
subject to the special laws on labor unions, collective bargaining, strikes and lockouts,
closed shop, wages, working conditions, hours of labor and similar subjects.”

In Davao Integrated Port Stevedoring Services v. Abarquez, March 19, 1993. It was held that a CBA, as
a labor contract within the contemplation of Article 1700 of the Civil Code, is not merely contractual
in nature but impressed with public interest, thus, it must yield to the common good.
Similarly, an employment contract or any other labor contract is treated as not merely contractual in
nature similar to an ordinary contract like a lease contract because it is impressed with public interest.
Consequently, all labor laws are deemed incorporated therein even if not so expressly provided or
stipulated in its provisions.

3. Art. 1702

Article 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and
decent living for the laborer.

NOTES:

• How is Article 1702 of the Civil Code correlated with Article 4 of the Labor Code?
Both Article 1702 of the Civil Code and Article 4 of the Labor Code speak of the rule on interpretation
and construction provisions of law and labor contracts. Article 1702 of the Civil Code provides:

“Article 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor
of the safety and decent living for the laborer.”

Article 4 of the Labor Code states:

“Article 4. Construction in Favor of Labor. – All doubts in the implementation and interpretation of the
provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of
labor.”
Article 1700 applies to doubts and ambiguities in

(1) Labor legislations;

(2) Labor contracts such as an employment contract or a CBA;
(3) evidence presented in labor cases.

Article 1700 applies to doubts and ambiguities:

(1) In the Labor Code; and

(2) In the Implementing Rules of the Labor Code.

DEFINITIONS:

1. Labor Law

LABOR LEGISLATION - Consists of statutes, regulations and jurisprudence governing the relations
between capital and labor, by providing for certain standards of terms and conditions of employment
or providing a legal framework within which these terms and conditions and the employment
relationship may be negotiated, adjusted and administered. It is divided into labor standards and labor
relations.

2. Labor Standards

“Labor standards law” is that part of labor law which prescribes the minimum terms and conditions
of employment which the employer is required to grant to its employees.

3. Labor Relations

“Labor relations law” is that part of labor law (Book V of the Labor Code) which deals with unionism,
collective bargaining, grievance machinery, voluntary arbitration, strike, picketing and lockout.

NOTES: Labor relations and labor standards laws are not mutually exclusive. They are complementary
to, and closely interlinked with, each other. For instance, the laws on collective bargaining, strikes and
lockouts which are covered by labor relations law necessarily relate to the laws on working conditions
found in Book III.

4. Social Legislation/Welfare Laws