Labor
Labor
Labor
I. FUNDAMENTAL PRINCIPLES
4. Right to self-organization and collective bargaining
A. Legal Basis
> Includes Right to peaceful concerted activities & Right to Strike
1. 1987 Constitution
*Right to leave that organization & join another one
> Striker can be ordered to return to work even against his will in National Interest *Right to choose their own leaders to speak and bargain on their behalf
cases, its not a violation of the involuntary servitude principle
*Withdrawal from cooperative should be allowed pursuant to right of EE to self-
> Protection-To-Labor Clauses
organization, it is an expression of one’s preference for union membership
> Principle of Shared Responsibility - the preferential use of *Existence of ER-EE relationship - Employee
voluntary modes of settling disputes between the parties, through conciliation, *Fact of dismissal - Employee
* Constitutional Due Process (against the Labor Arbiters, NLRC, CA, SC)
*Enlisting *Promising employment
*Utilizing [CETCHUP-R-CPA]
2. Civil Code
*Hiring, or
> Any labor contract is not merely contractual in nature but because it is impressed *Procuring workers
with public interest. Consequently, all labor laws are deemed incorporated therein.
3. Labor Code
1. Regulatory authorities
*Labor Standards Law - prescribes the minimum terms & conditions of employment a. Philippine Overseas Employment Administration (POEA)
*Labor Relations law - deals with unionism, collective bargaining, grievance > Jurisdiction:
> SOLE may order “closure” however NO power of Arrest & Seizure anymore.
> ex. Giving separation pay even if person is dismissed due for lawful cause
2. Ban on direct hiring (unfamiliar ones only) exemptions:
*Professionals & skilled workers w/ authenticated contracts having conditions
3. Equal Work Opportunities - regardless of Sex, Race or Creed
OVER & ABOVE THE STANDARDS set by POEA. The number hired should not
> ex. Employment based on Knowledge, Skill & Quali cations rather than their AGE
exceed ve (5), however workers hired as a ground shall be counted as one (1).
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LABOR LAW
*Workers hired by relative/fam member who is a permanent resident of host country
> Illegal Recruitment as a form Economic Sabotage
3. Entities prohibited from recruiting * By a Syndicate-3 or more RECRUITERS conspiring with one another
*Sole proprietors of duly licensed agencies are not allowed to secure another 3. Illegal recruitment as distinguished from Estafa
*Any entities engaged in private recruitment & placement for local employment are D. Liability of local recruitment agency and foreign employer
prohibited from engaging in JOB CONTRACTING or SUBCONTRACTING activities
1. Solidary Liability between the two parties
*travel agencies & sale agencies of airlines, its members & o cers
- however as for the o cers of the recruitment agency, it is required there must
*those with derogatory records, even if there’s only prima facie nding of guilt
be proof of their culpability before they can be made personally liable.
*Travel agencies & sale agencies of airlines, its members & o cers
> EEs of agency may be held liable for IR as principal by direct participation,
*Sole proprietors, partners, o cers or board members w/ derogatory records
together with his ER, if its shown that he actively and consciously participated in IR
*Individuals connected to the Insurance Company who provide the compulsory
insurance covered for agency-hired OFWs
2. Theory of Imputed Knowledge
5. Prohibited Practices-
> This does not apply the other way around. Knowledge of the principal is NOT
>Recruitment of Local Workers
DEEMED knowledge of the agent.
*
~ Inde nite period of employment of OFWs is NOT VALID as it contravenes the
C. Illegal recruitment
explicit provision of POEA on xed-period employment
~ Mere impression that a person could deploy workers overseas is su cient as I.R.
* all salaries of the unexpired portion of the contract
~ Actual receipt of fee is NOT AN ELEMENT of the crime of I.R. * full reimbursement of placement fees & deductions made with interest at 12%p.a.
~ Absence of documents evidencing the recruitment activities STRENGTHENS, not F. Employment of non-resident aliens - Alien Employment Permit (AEP) is valid for 1
weakens, the case for Illegal Recruitment
year unless employment contract provides otherwise but never to exceed 3 yrs
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LABOR LAW
> Foreign National EXEMPTED from securing an AEP are those covered by Article B. Wages
40 of the Labor Code, but not required to secure an AEP under the existing laws.
1. De nition, components, and exclusions
Ex. Members of Diplomatic Service & ForeignGov o cials, O cers & sta of > Salary is compensation for superior level of employment while wage is for labor.
International Orgs and their legitimate spouses, Representatives of Foreign > Wage is exempted from execution, attachment or garnishment, Salary is not.
principals who come to PH for a limited period for sole purpose is to interview
Filipino applicants for employment abroad, etc.
b. Distinguish: facilities and supplements (the PURPOSE is the determinant)
> Bene t of EE & fam - Facilities (deductible)
> Foreign nationals EXCLUDED from obtaining an AEP are those providing services > Bene t of ER - Supplements (nondeductible)
in the country but their employers are located abroad or those without employer.
Ex. Members of the governing board who do not intervene in the management of -1/12th of their standard monthly wage multiplied by their length of service
the corp, providing consultancy services, intra-corporate transferee that is a within a given calendar year
d. Holiday pay
A. Conditions of Employment
> Special (Non-Working) Days
1. Hours of work
* Jan 31 - Chinese New Year
b. Compensable Time
* Aug. 21 - Ninoy Aquino Day
- Contract stipulates that compensation includes build-in overtime pay & > Hourly paid teachers (not entitled to holiday pay)
- EEs can use the time e ectively for their own interest
2. Principles
v. Commuting time
c. Fair wage for fair work
vi. Waiting time - compensable if spent PRIMARILY for the bene t of the ER
d. Non-diminution of bene ts
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LABOR LAW
*Act is NOT A PRODUCT OF ERRONEOUS INTERPRETATION of a doubtful or - commutable to money if not used EXCEPT kasambahays, not commutable
Principle: No company practice could ripen in situations where certain bene ts are 2. Special laws
granted only under speci ed certain circumstances such as payment of per diem, a. Parental leave solo parents (7 working days; must render at least 1 yr service)
> Any other person who solely provides parental care and support to a child
3. Minimum wage
> Principle: Emergency or Contingency leave under company policy SHALL NOT
a. Payment by hours worked
be credited as compliance with Parental Leave
-entitled to NOT LESS THAN the prescribed wage rates per 8 hrs of work a b. Expanded maternity leave (105 calendar days regardless of type of delivery)
4. Payment of wages
> Additional 15 days paid leave if mother quali es as a Solo parent
> Regional Min. Wage Rate includes cost-of-living allowances as xed by RTWPB
> At her option, may allocate 7 days paid leave to the father w/n they’re married
>COLA is a bene t intended to cover increases in the cost of living. Its not intended > Female contract of service & job order workers in Govt can claim maternity leave
to reimburse expenses incurred by EEs in the performance of their functions.
bene ts from SSS if they have remitted at least 3 monthly contributions in the 12
month period immediately preceding the semester of childbirth, miscarriage, etc.
-permissible if ER is engaged in trade where there is such practice of d. Gynecological leave (2 months)
making deductions as deposits to answer for reimbursements of loss or damage to > Must have rendered at least 6 months CONTINUOUS AGGREGATE employment
tools. But it should be shown as an industry-wide RECOGNIZED practice or for the last 12 months prior to the surgery.
6. Wage determination
a. Wage order
e. Battered woman leave (10 days)
> Salary-Cap/ Salary-Ceiling —wage adjustment is to be applied to EEs receiving a > Only requirement is that the Punong Barangay or Prosecutor shall issue a
certain denominated salary ceiling stated in the wage order.
CERTIFICATION that such an action is pending.
> Principle: The obligation to rectify is con ned to wage distortion resulting from > Create a committee on decorum & investigation of sexual harassment cases.
GOVERNMENT DECREED law or wage order. It doesn’t cover voluntary & unilateral 3. Applicable laws:
C. Leaves
1. Labor Code
E. Working conditions for special groups of employees
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LABOR LAW
2. Disabled workers
a. Equal opportunity
> Substantial Capital of 5M & Investment in tools are treated as 2 separate &
b. Discrimination on employment
distinct requirements, its enough only one of these two is complied.
3. Gender
c. Liabilities
a. Discrimination
> Legitimate Job Contracting - solidary obligation for a LIMITED PURPOSE only
b. Stipulation against marriage -Reasonable Business Necessity Rule
that is to pay wages tot he contractor’s EE’s.
c. Prohibited acts
> Labor-Only contracting - principal becomes solidary liable with contractor to the
d. Facilities for women
latter’s EEs in the same manner & extent that the principal is liable to EEs directly
e. Women working in night clubs, etc.
hired by him/her.
4. Minors
b. Casual - task is merely INCIDENTAL to the principal business of ER, its for.
5. Kasambahays
DEFINITE PERIOD made known to EE at the time of hiring.
> SIL and 13th month pay are mandatory bene ts for kasambahays
c. Contractual
> if K leaves w/o any justi cation, any unpaid salary for a period not exceeding 15 d. Project Employment - litmus test is if its assigned to a SPECIFIC undertaking,
days shall be forfeited.
the DURATION & SCOPE were speci ed AT THE TIME OF HIRING.
> Prohibition on debt bondage- the rendering of service as payment for debt where > Continuous rehiring, as opposed to intermittent, shows the EE is regular
length, nature & value of the service is not clearly de ned or applied to the debt.
e. Seasonal
> When there are successive renewals of xed-term contracts, EE becomes regular
6. Homeworkers
7. Solo parents
g. Probationary; private school teachers
8. Night workers
9. Migrant workers
B. Termination by employer
IV. POST-EMPLOYMENT
a. Substantive due process
A. Employer-employee relationship
i. Just causes
> Two tiered test applies to cases where there are several parties alleged to be > Insubordination or Willful Disobedience of Lawful Orders
a. Elements
> Fraud
*Engaged in a DISTINCT & INDEPENDENT BUSINESS & undertakes to perform the > Willful Breach of Trust and Con dence
work on its OWN RESPONSIBILITY according to its own MANNER & METHOD.
> Commission of Crime or O ense
*Has SUBSTANTIAL CAPITAL to carry out the job on his own account, manner & > Termination Due to Enforcement of Union Security Clause
*Free from the CONTROL OF THE PRINCIPAL except as to the RESULTS thereto
*Service Agreement ensures compliance w/ all the RIGHTS & BENEFITS for all EEs *Abandonment of Work
of contractor
> Clear intention from EE to sever employment relationship is necessary
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LABOR LAW
> Immediate ling of complaint for illegal dismissal w/ prayer for reinstatement > Employer must show a medical certi cate issued by a COMPETENT PUBLIC
negates abandonment. If prayer is separation pay, it does not negate abandonment
HEALTH AUTHORITY that the disease is of such nature or at such a stage that it
> Lapse of time between dismissal and ling of a case is not a material indication CAN’T BE CURED within a period of 6 months even w/ proper medical treatment.
of abandonment
>It must be a government doctor whose medical specialization pertains to the
> EE may be absolved from charge of abandonment but adjudged guilty of AWOL.
disease being su ered by the employee.
> Act justifying the loss of trust must be founded on clearly established facts
- 2 separate written notices served on both the EE and DOLE at least 1
> Long years of service, absence of derogatory record & small amount involved are month prior to the intended date of termination
- mere existence of a basis for believing that he breached the trust would su ce - Conduct of hearing/ Ample opportunity to be heard is enough
the dismissal.
- Service of 2nd written notice (termination)
2. Preventive suspension
> Redundancy
> If ER decides, for a justi able reason, to extend beyond the 30-day period of
> Retrenchment to prevent losses
suspension ER is obligated to pay the wages & other bene ts to the EE.
> Close or Cessation of Business Operations (Due & Not Due to losses)
> Disease
3. Illegal dismissal
a. Kinds
> Separation pay for Installation of Labor-Saving Device & Redundancy is 1month i. No just or authorized cause
pay or at least 1 month pay for every year of service whichever is higher.
ii. Constructive dismissal
> Separation pay for Retrenchment & Closure NOT due to serious business losses (a) Burden of proof
is 1 month pay or 1/2 month pay for every year of service whichever is higher.
(b) Liability of o cers
> The expected or actual losses must be proved by su cient and convincing - if ordered by LA, immediately executory
evidence. This is the only ground in Art. 283 which requires this kind of proof.
- If ordered by NLRC,CA or SC, EE should le a Motion for Issuance of Writ of
> Retrenchment e ected long after the business losses is not valid.
Execution
> Closure of department or section & hiring of workers supplied by independent - Salaries computed on the basis of the wage rate level at the time of the illegal
contractor as replacements is valid.
dismissal & not in accordance w/ the latest, current wage level of EE’s position
*Disease
4. Money claims arising from employer-employee relationship
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LABOR LAW
C. Termination by employee
* Community or Mutuality of Interest Doctrine
D. Retirement
* Employment Status Doctrine
> 5 years is the minimum yrs of service that must be rendered before EE can avail
of the retirement bene ts upon reaching optional or compulsory retirement age
C. Bargaining representative
> Amount of retirement pay is 1/2 month salary which means 22.5 days
1. Determination of representation status
> 1/2 of 13th month pay & 5 days SIL should not be included in the computation for > Request for SEBA Certi cation to the DOLE Regional Director
retirement pay if EE was not entitled to it during his employment like taxi drivers -there will be a certi cation election only when the requesting union fails to
that are paid on boundary system basis, eld personnel and other’s EEs whose complete the requirements (support of the majority of the EEs in the covered
performance are unsupervised.
bargaining unit, etc.) during the conference
> However for conductors since they’re paid a certain percentage of the bus’
earnings per day, they should get the 22.5 days as 1/2 month salary for retirement
> Certi cation election
V. LABOR RELATIONS
*Certi cation Year Bar Rule
A. Right to self-organization
*Negotiations Bar Rule
> Labor Union - for collective bargaining & mutual aid and protection
-CE petition may be led only within the 60-day freedom period prior to its expiry
-The 60 day freedom period based on the original CBA is not a ected by any
a. Doctrine of necessary implication
amendment, extension or renewal of CBA for purposes of certi cation election
-this is the legal basis when under the “con dential EE rule” a rank-and- le EE is -For organized establishments, petition for CE must comply with the 25% written
treated as if he is a managerial EE because of his access to con dential information support of the members of the bargaining unit.
a. Nature of relationship
>Rerun election
> Disa liation should be approved by the MAJORITY of the union members
D. Rights of labor organizations
> Where a local chapter disa liates from the mother union after it secured an * authorization by a written resolution of the majority of all the members at a
independent registration, the local union will be substituted to that of the federation general membership meeting
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LABOR LAW
2. Collective bargaining
*Criminal Liability for ULPs of Labor Organization
-The refusal of ER to send a counter-proposal to the union & to bargain on the F. Peaceful concerted activities
economic terms of the CBA constitutes as ULP/ Negotiating a CBA in bad faith
1. By labor organization
*Grievance Procedure
*Based on valid & factual ground
-What’s violated should be a NON-ECONOMIC or POLITICAL provision of CBA for *Notice of Strike must be led w/ NCMB-DOLE
*Voluntary Arbitration
*Strike vote must garner MAJORITY of the members of the union to approve it
-only when ground is economic in nature because it presumes that all economic *Except in cases of union busting, union must observe cooling o period.
Cirtek EEs Union case (2011): agreements embodied in the MOA were not the i. Valid strikes as distinguished from illegal strikes
proper subject of the LMC deliberation but it should be done in CBA negotiations
b. Picket
1. Nature, aspects
-what is de nitive of whether the action staged is a picket or strike is the totality of
2. By employers
the circumstances surrounding the situation.
*Company Union
-same requisites of strike but the majority vote needed is done by the members of
*Discrimination
the Board of Directors in a corporation or of the Partners in a Partnership.
*CBA-Related ULPs
3. Assumption of jurisdiction by Secretary of Labor and Employment
>The fact that EEs are signatories of the CBA does not itself su ciently establish
3. By labor organizations
their status as union o cers during the illegal strike. Only the union o cers during
*Restraint or Coercion of EE’s exercise of their Right to Self Organization
the illegal strike are liable.
*Discrimination
>Liability for illegal acts by union members should be determined on an individual
*Duty of Union to Bargain Collectively
basis. The individual identity of the union members and the speci c illegal acts they
*Featherbedding Doctrine
each committed should be described with particularity.
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LABOR LAW
VI. MANAGEMENT PREROGATIVE
H. Universal Health Care
A. Discipline
1. Policy
> Proportionality rule means that penalty to be imposed should be commensurate 2. Coverage
B. Transfer of employees
C. Productivity standards
A. Labor Arbiter
D. Bonus
1. Jurisdiction of the Labor Arbiter as distinguished from the Regional Director
>If considered as part of compensation & thus demandable, amount is usually xed 2. Requirements to perfect appeal to NLRC
>If amount is dependent upon realization of pro ts, bonus is not enforceable.
3. Reinstatement and/or execution pending appeal
G. Post-employment restrictions
C. Court of Appeals
> Valid as long as there are reasonable limitations as to TIME, TRADE & PLACE.
D. Supreme Court
3. Bene ts
1. Jurisdiction
3. Bene ts
3. Power to suspend e ects of termination
4. Remedies
1. Labor Code
2. Remedies
Contract
2. Illegal dismissal - 4 yrs
E. Solo Parents
4. O enses under the Labor Code - 3 yrs
F. Kasambahay
5. Illegal Recruitment - simple IR - 5 yrs
G. Agrarian Relations
economic sabotage - 20 yrs
1. Concept of agrarian reform
4. Concept of farmworkers
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