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LABOR STANDARDS

EXEMPT FROM BOOK III (Conditions of Employment)


Government employees
Managerial employees: if primary duty is management,
customarily and regularly direct work of two or more Ees,
and
with authority to hire and fire or suggestions given
particular weight
Officers or members of managerial staff
Domestic Servants
Non-agricultural field personnel if regularly perform duties away from office

*Those paid by results, piece-work, pakyaw or task basis are entitled to certain
benefits (Labor Congress v. NLRC, 290 SCRA 509)

BENEFITS TO WHICH PIECE-RATE WORKERS ARE ENTITLED :


Applicable Statutory Minimum Daily Rate*
Service Incentive Leave
Night Differential Pay
Holiday Pay
Meal and Rest Periods
Overtime Pay*
Premium Pay*
Thirteenth Month Pay
Other Benefits
*Follows output rate prescribed by DOLE or standard used conforms with DOLE
output rate.

PREMIUM RATE for OVERTIME:


Normal 25% ON TOP OF HOURLY RATE
Holiday/Rest Day 30%
Special Day 30%

Emergency Overtime Work


Country at war/National or Local Emergency
Necessary to Prevent loss of life/property or Imminent danger to public safety
Urgent work to be performed on Machines to avoid serious loss or damage to
employer
Necessary to prevent loss or damage to perishable goods
Completion of work started before the 8th hour
Necessary to avail of favorable weather or environmental

Overtime Compensation
General Rule : cannot be waived
Exception : waiver of OT pay is in consideration of benefits and
privileges which may be more than the OT pay

Voluntarily agrees to work 9 hours


No diminution in pay
Value of benefits greater or at least equal to 1hr.
OT pay during weekdays
OT pay due and demandable even if permitted to work Saturdays
Work doesn't involve strenuous physical exertion
Temporary duration
NIGHT DIFFERENTIAL (10pm-6am) 10%
Does not apply to: Government Employees
Retail Businesses with less than 5 workers
Domestic Helpers
Managerial Employees
Field Personnel or those unsupervised, task or contract
basis, purely commission & fixed amount

MEAL TIME
General Rule: Minimum of 60 minutes
Exception: Minimum of 20 minutes with full pay

PREMIUM PAY (Days Worked)


Rest Day 30%
Special Day 30%
Nov.1 & Dec. 31 if also a Rest Day 50%for special day:

NO WORK, NO PAY

Authorized Work on a Rest Day:


Urgent work to be performed on machinery
Actual impending emergency
Abnormal pressure or work
Prevent loss/damage to perishable goods
Nature of work requires continuous operations
Analogous situations

HOLIDAY PAY
Unworked 100%
Worked 200%
- IF ALSO REST DAY 260%
- should not have been absent without pay on the working day preceding the
holiday

New Year's Day Maundy Thursday Good Friday Nov.


30
April 9 May 1 June 12
Dec. 25 Dec. 30 Last Sun of August

EXEMPT FROM HOLIDAY PAY:


Government ees
Retail and Service Establishments regularly employing less than 10
Domestic helpers
Managerial ees
Field Personnel

Hourly Paid Faculty Members not also entitled

SERVICE INCENTIVE LEAVE


has worked for at least a year
5 days with pay
Does not apply:
Government
Already enjoying benefit
Domestic Helpers and those in the personal service of another
Already with vacation leave with pay of at least 5 days
Managerial Employees
Field Employees including those in Contract basis
Employed in establishments regularly employing less than 10 employees
WAGE DISTORTIONS
- an increase in prescribed wage rates resulting in the elimination or severe
contraction of intentional quantitative differences in wage or salary rates between
and among employee groups in an establishment as to effectively obliterate
the distinctions embodied in such wage structure based on skills, length of
service, or other logical bases of differentiations

Procedure for correcting:


1. With Union
- go through grievance procedure
- voluntary arbitrators (decide within 10 days from referral)
2. Without Union
- Each brings his own grievance
- NCMB (10 calendar days => conciliation if unresolved)
- NLRC (decide within 20 days from submission)

13TH MONTH PAY


Entitled : Exempted Employers :
All Rank and File employeesworked at Government
least 1 month Employers of Household Helpers
Those with Multiple Employers Those already paying
Paid by Result Employers of paid purely on commission,
Private School Teachers fixed, boundary or task basis
Resigned or Separated Employees
(proportional)

Minimum Amount : not less than 1/12 of total basic salary earned within a calendar
year

*BASIC SALARY for purposes of 13th mo. pay shall include all remunerations or
earnings paid by his employer for services rendered
- BUT DOES NOT INCLUDE: allowances and monetary benefits which are not
considered or integrated as part of the regular or basic
salary such as vacation and sick leave credits, overtime,
premium night differential, holiday pay and COLA
UNLESS by individual or collective agreement or
company practice or policy, they are treated as basic
salary.

VACATION/SICK LEAVE - not required by law

SERVICE CHARGE 85% Covered Employees


15% Management

BONUS
General Rule :Can't be demanded
Exceptions:
1. Given for a long period of time
2. Consistent & deliberate
3. Employer knew he was not required to give benefit
4. Employer continued giving benefit
5. Employer realizes profits
MEDICAL TREATMENT OF EMPLOYEES
General Rule :First-Aid medicine and equipment made available
Training of sufficient Number of Employees to apply First-Aid Treatment

51-200 Employees Full-time registered nurse


EXCEPT when the employer doesn't maintain hazardous
work places (Licensed First-Aider sufficient)

201-300 Employees Full-time Registered Nurse, Part-Time Physician,


Dentist & Emergency Clinic

301 or more Full-Time Registered Nurse, Full-Time Physician,


Dentist, Dental Clinic, Infirmary/Emergency Hospital
with a bed capacity of 1 bed per 100 employees

EXCEPT when there is a hospital or clinic accessible from


the Employer's establishment AND he makes
arrangements for the Reservation of necessary bed and
dental facilities

Hazardous Work Full-Time Physician - at least 2 hours


Place Part-Time Physician - at least 8 hours

VISITORIAL AND ENFORCEMENT POWERby Secretary of Labor or duly authorized


representative
Access to employer's records and premises
Right to copy records
Right to question any employee
Investigate any fact, condition or matter which may be necessary to
Order and administer, after due notice and hearing, compliance with the Labor
Standards provisions
Issue writs of execution to the appropriate authority for enforcement of their orders
Order stoppage of work or suspension of operations when non-compliance with law
and implementing regulations poses grave and imminent danger to the health and
safety of workers in the workplace
- Hearing within 24 hours
- Employer liable for salaries during suspension of operations if found to have
caused the violation

*NO TRO or Temporary/Permanent injunction may be issued by an inferior court over


any case involving the enforcement orders issued

RECOVERY OF Wages, Simple Money Claims & Other Benefits - DOLE Regional
Director
Summary Proceeding
Claimant : employee or person in domestic or household service
Provided :
1. No claim for reinstatement
2. Aggregate claims of each employee or househelper does not
exceed P5,000
(even if it exceeds this, Regional Director may still enforce
based on inspection's findings in the nature of enforcement
action)
3. Claims arise from employer-employee relationship
Notice and Hearing
Resolution of Complaint within 30 days from filing (Appeal within 5 calendar
days to NLRC)
NLRC to resolve appeal within 10 calendar days from submission of last
pleading
Exception : Claims for Employee's Compensation
Claims for Social Security benefits
Claims for Medicare Benefits
Claims for Maternity Benefits

*Regional Director cannot enforce results of Visitorial Power when :


1. Employer contests the findings
2. Issues raised requires examination of evidentiary matters
3. Such matters are not verifiable in the normal course of inspection

EMPLOYMENT OF WOMEN
1. Nightwork Prohibition
a. Industrial Undertaking 10pm06am
b. Commercial or Non-industrial, or branch
thereof, other than agricultural 12am-6am
c. Agricultural Undertaking Nighttime, unless given a
period of rest not less than 9
consecutive hours

EXCEPTIONS:
Actual or impending emergencies to prevent loss of life/property or force majeure or
imminent danger to public safety
Urgent work to be performed to avoid serious loss to employer
Necessary to prevent serious loss of perishable goods
Holds a responsible position of managerial or technical nature or engaged to provide
health or welfare service
Nature of work requires the manual skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male workers
Immediate members of the family operating the establishment or undertaking
Other analogous cases

2. Facilities for Women


a. Provide seats proper for women
b. Establish separate toilet rooms and lavatories
c. Establish a nursery in a workplace for the benefit of the women
employees
d. Determine appropriate minimum age and other standards for retirement
and termination

3. Maternity Leave Benefits


a. Has paid at least 3 monthly contributions in the 12-mo. period
immediately preceding the semester of her childbirth or miscarriage
b. Paid only for the first 4 deliveries or miscarriages
c. 100% of average salary credit for 60 days if normal or 78 days if
caesarean

4. Family Planning Services, Incentives for Family Planning


a. Maintain clinic or infirmary which shall provide for family planning service
b. Develop and prescribe incentive bonus schemes to encourage family
planning among female workers in any establishment/enterprise

5. Discrimination Prohibited

ACTS OF DISCRIMINATION:
Payment of lesser compensation for work of equal value
Favoring over promotion, training opportunities, study and scholarship grants
solely on account of their sexes
Institution of any criminal action under this shall not bar the
aggrieved employee from filing an entirely separate and distinct
action for money claims, which may include claims for damages
and other affirmative relief
Actions authorized shall proceed independently of each other

6. Void Stipulations Against Marriage


- either as a condition for employment (pre) or for continuing employment
(post)

7. Prohibited Acts
Deny benefits or discharge any woman employed to avoid giving benefits
Discharge such a woman on account of her pregnancy or while on leave
or in confinement due to her pregnancy
Discharge or refuse the admission of such woman upon returning to her
work for fear she may again be pregnant

MINIMUM EMPLOYABLE AGE


15 Years Except when working under the sole responsibility of his parents or
guardian AND his employment does not in any way interfere with his
schooling
18 Years In undertakings which are hazardous or deleterious

a. exposes workers to dangerous environmental


elements, contaminations, or work conditions including
ionizing radiations, chemicals, fire, flammable
substances, noxious components and the like
b. engaged in construction work, logging, fire-fighting,
mining, quarrying, blasting, stevedoring, dock work,
deep-sea fishing and mechanized farming
c. engaged in the manufacture or handling of explosives
and other pyrotechnic products
d. exposed to or use of heavy or power-driven machinery
or equipment
e. use or are exposed to power-driven tools

EMPLOYMENT OF HOUSEHELPERS
- engaged in the employer's home, whose services are usually or desirable for
the maintenance and enjoyment thereof, and ministers exclusively to the
personal comfort and enjoyment of the employer's family

1) Original Contract not more than 2 years


2) If assigned to work in a commercial, industrial or agricultural enterprise, must
not be paid lower than agricultural or non-agricultural workers
3) If under 18 years of age, must be given opportunity to finish at least
elementary schooling - cost of education shall be part of compensation
4) Treated in a just and humane manner
5) Free : Sanitary and suitable living quarters
Adequate food
Medical attendance
6) Indemnity for unjust termination if Fixed Period of Service
Compensation already earned + 15 days
7) If no fixed period, notice of termination must be given at least 5 days prior

EMPLOYMENT OF HANDICAPPED WORKERS


- Earning capacity impaired by : age
physical or mental defects
- can be regular if work is usually or necessary or desirable to the business
(Bernardo Case)

1. When Employable
a. necessary to prevent curtailment of employment opportunities AND
b. does not create unfair competition in labor costs or impair working
standards
2. Employment Agreement shall state/include:
a. Names and addresses of the handicapped workers to be employed
b. Rate to be paid not less than 75% of applicable legal minimum wage
c. Duration of employment period
d. Work to be performed by handicapped
- the agreement is always subject to inspection by SOLE or duly authorized
representative
3. Eligibility for Apprenticeship
- If their handicap is not such as to effectively impede the performance
of job operations in the particular occupations for which they are hired

LABOR RELATIONS

REQUIREMENTS FOR REGISTRATION


LABOR ORGANIZATION FEDERAL/NATIONAL WORKERS ASSOCIATION
UNION
a. Registration Fee In addition to a, b, d and e of a. Registration fee
b. Names, addresses of its requirements for Labor Org: b. Names of its members,
officers; principal a. Resolution of affiliation of their addresses,
address; minutes of the at least 10 locals or principal office of
organizational meetings; chapters (all duly applicant, minutes of
list of workers who recognized Collective organizational
participated in the Bargaining agents) meetings, and names
meetings b. Names and addresses of of individual members
c. Names of all its the companies where the who attended such
members comprising at locals/chapters operate meetings
least 20% of all the plus list all members in c. Copy of constitution
employees in the each company involved and by-laws duly
bargaining unit where it ratified by majority of
seeks to operate individual members
d. Two (2) copies of its
financial reports is
applicant has been in
existence for one or
more year
e. Four (4) copies of the
Constitution and By-laws
(CBL), minutes of its
adoption or ratification
and a list of members
who participated therein
~ all requisite documents
shall be certified under
oath by the
Secretary/Treasurer and
attested by the President

CHARTERING
- Issuance by Federation of charter certificate to a local/chapter
- copy of which shall be submitted to BLR within 30 days from issuance
- in addition submit CBL and set of officers
- books of accounts are no longer required
AFFILIATION of Independently Registered Union
- file with Regional Office or BLR 2 copies of verified resolution of affiliation,
ratified by a majority of the union, and a resolution of acceptance of by the
federation / industry union

Local/Chapter becomes an LLO only upon Submission of the ff. to the BLR / Regional
Office:
a. a charter certificate (Within 30 days from issuance)
b. CBL and statement of officers
- books of account are no longer required

GROUNDS FOR CANCELLATION OF UNION REGISTRATION

Misrepresentation, False Statement or Fraud in connection with :


a. adoption/ratification of the CBL or amendments thereto, minutes of ratification
and the list of members who took part in the ratification
b. election of officers, minutes thereof, list of officers/voters
c. in the preparation of the financial reports
Failure to Submit :
a. CBL, minutes of its adoption/ratification, list of members ho took part within 30
days from adoption of ratification or amendments thereto
b. Minutes of the elections of officers, list of officers/voters within 30 days from
election
c. Annual financial report to the BLR within 30 days after the closing of every fiscal
year
d. List of individual members to the BLR once a year or whenever required by the
BLR
Acting as labor contractor or engaging in the 'Cabo System' or otherwise engaging in
any activity prohibited by law
Entering into CBAs with terms and conditions of employment below minimum
standards established by law
Asking for or accepting attorney's fees or negotiation fees from employer
Checking off special assessments or any other fees without duly signed individual
written authorizations of the members (other than for mandatory activities under the
labor Code)

RIGHTS AND CONDITIONS OF MEMBERSHIP

A. Political Rights
1. Officers Directly elected
2. No person convicted of crime involving moral turpitude shall be eligible to be
an officer of union
3. Officers shall not be paid any compensation other than salaries and
expenses due to their positions as authorized by CBL or written resolution of
majority

B. Deliberative & Decision Making Rights


1. Determination by secret ballot, any question of major policy
2. No admission of individuals who are members of subversive organizations

C. Rights Over Money Matter


1. No arbitrary, excessive oppressive fines and forfeiture
2. No collection of fees, dues NOR disbursements unless duly authorized
pursuant to CBL
3. All payment of fees, dues, contributions evidenced by receipt and entered
into records
4. Funds shall not be applied for any purpose other than expressly provided in
CBL or authorized by majority of members at general meeting
5. No special assessment or other extraordinary fees may be levied unless
authorized y written resolution of majority
6. Other than mandatory activities, no special assessment, atty.'s fees,
negotiation fees or any other extraordinary fees may be checked from any
amount due to an employee without individual written authorization

D. Right To Be Informed
1. Full and detailed report of all financial transactions
2. All income and revenue evidenced by a record and every expenditure
evidenced by a receipt
3. Treasurer and Officers render a true and correct account of all moneys
received and paid : Since assuming office
Since last accounting
At least once a year w/ in 30 days from close of fiscal year
Other times as required by written resolution of majority
4. Books of account and financial records open to inspection by officer/member
during office hours
5. Duty of labor organization to inform members of contents of CBL, CBA and
their rights and obligations under existing labor laws

*Protest on Election of Officers


Formalized before Med Arbiter within 5 days from close of Election
Proceedings

Decided within 20 working days

INTRA-UNION DISPUTES
General Rule :Relief must first be sought within the union itself in accordance
with its CBL which must be alleged in the petition
Exceptions :
Futility of intra-union remedies
Improper expulsion procedures
Undue delay as to constitute substantial injustice
Action for damages
Lack of jurisdiction of the investigating body
Action of the administrative agency is patently illegal, arbitrary and oppressive
Issue involved is purely a question of law
Administrative agency has already prejudged the case
Administrative agency was practically given an opportunity to act on the case
but did not

*Requirement for a complaint for Violation of by-laws and rights and conditions of
membership:
Minimum of 30% of the members of the Labor Organization
Exception :when such violation directly affects only 1 or 2 members,
then such number would be enough to report the violation and seek
redress with the CIR

REQUIREMENTS FOR DISAFFILIATION


General Rule : Only during the 60 day freedom period & effected by a
majority of the members of the bargaining unit
Exception : Outside the freedom period but must still be supported by
a majority of the members of the disaffiliating union who must remain bound
by the CBA until the CBA's expiration date.

Substitutionary Doctrine - employees cannot revoke the validity of a validly


executed
CBA with their employer by the simple expedient of
changing their collective bargaining agent
- the new agent must respect the subsisting CBA
- employer cannot renege on the CBA, except to
negotiate with the management for the shortening
thereof
- Inapplicable to personal undertaking of deposed union
e.g. : no strike stipulation
VISITORIAL POWER
Who : Sec of DOLE or duly authorized representative
Re : Inquire into Financial Activities of LLO
Cause : Complaint under oath supported by the written consent at
least 20% of LLO's total membership
Prohibited : 1. 60 day freedom period
2. within 30 days immediately preceding election of union
officers

EXECUTIVE ORDER 180


- Applies to all employees of all branches, subdivisions,
instrumentalities and agencies of the government including
employees of GOCCs with original charters
- Can form, join or assist employees organization for furtherance and
protection of interest
NOT Covered :
High-level employees
AFP
Police Officers
Policemen
Firemen
Jailguards

- Application filed with the BLR


- Registration is with the Civil Service Commission or DOLE
(CSC Chairman and Dole Sec jointly approve)
- Petition for Certification Election if filed with the BLR

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS


Act as the representative of its members for the purpose of collective bargaining
Certified as the exclusive bargaining representative of all employees in an appropriate
collective unit for purposes of collective bargaining
Furnished with the annual audit financial statements of employer
Own property (real/personal) for the use and benefit of its members and the labor
organization
Sue and be sued in its registered name
Undertake all other activities designed to benefit the organization and its members,
including cooperative, housing welfare and other projects not contrary to law
Collect reasonable membership fees, union dues, assessments and fines and other
contributions

2 KINDS OF UNIONS (Purpose)


1) For purposes of Collective Bargaining (called "Labor Organization")
- any union or association of employees which exists for collective
bargaining purposes or for dealing with employers regarding terms &
conditions of employment

2) For Mutual Aid and Protection (called "Worker's Association")


- an association of workers organized for its members' mutual aid and
protection or for any legitimate purpose other than collective
bargaining
*Any employee, whether employed for a definite period or not, shall, beginning
on his first day of service, be considered an employee for purposes of
membership in any labor union
UNION SECURITY CLAUSE
- union can determine membership and prescribe conditions for its acquisition
and retention
- cannot be used by union officials against an employer, much less their own
members except with a high sense of responsibility, fairness and
judiciousness

CLOSED SHOP - only union members can be hired and workers must
remain union workers/members to retain employment

UNION SHOP - non-members may be hired, but to retain employment, must


become union members within a certain period thereafter

MODIFIED UNION SHOP - employees who are not union members at the
time of the signing of the contract need not join the union, but all workers
hired thereafter should join

MAINTENANCE OF MEMBERSHIP - no employee is compelled to join the


union, but all present or future members must, as a condition of
employment, remain in good standing with the union

EXCLUSIVE BARGAINING SHOP - the union is recognized as the exclusive


bargaining agent for all employees, whether union members or not

BARGAINING FOR MEMBERS ONLY - the union is recognized as the


bargaining agent only for its own members

AGENCY SHOP - an agreement whereby employees must either join the


union or pay to the union as the exclusive bargaining agent a sum equal to
that paid by the members. This is directed against the "free rider" employees
who benefit from union activities without contributing to union support o
prevent a situation of non-union members enriching themselves at the
expense of union members.

PREFERENTIAL SHOP - agreement wherein management undertakes to


give preference to union members in the hiring of employees, whether or not
as regulars

HIRING HALL - agreement wherein list of employees are given a chance to


determine who to employ/regularize

General Rule : All employees in the bargaining unit covered by the union security
clause are subject to its terms
Exception :
Any employee who at the time the agreement takes effect is a bona fide member of a
religious organization which prohibits its members from joining labor unions on
religious grounds
Employees already in the service and already members of a labor union or unions
other than the majority union at the time the agreement took effect
Supervisors ineligible under the Act to join the majority union because of the
membership therein of employees under their supervision
Employees excluded from the agreement by express terms

UNFAIR LABOR PRACTICES


- acts opposed to workers' right to organize

*2 Elements : Employer-employee relationship between the offender and


offended
Act done is expressly defined in the Labor Code as ULP
*REMEDIES:
1. Civil Aspects
- Labor Arbiter who shall resolve within 30 calendar days from
submission for decision
- recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code
- substantial evidence enough

2. Criminal Aspects
- Must be proved independently from labor case
- Prosecution not possible until after finality of judgment in the labor
case
- Admin/civil judgment not evidence of ULP insofar as the criminal
case is concerned
- During the pendency of admin proceeding, the running of
prescription of criminal offense shall be interrupted

ULP OF EMPLOYERS
1. Restraint, interference or coercion in their exercise of the right to self-
organization
- no excuse that conduct was unintentional and innocent
- Totality of Conduct Doctrine : culpability of employer's remarks were
to be evaluated no only on the basis of their implicit implications, but
were to be appraised against the background of and in conjunction
with collateral circumstances (history of employer's labor relations +
anti-union bias)
- Doctrine of Successor-Employer : new company will be treated as a
continuation or successor of the one that closed in the new or take-
over company is engaging in the same business as the closed
company or department, or is owned by the same people, and the
"closure" is calculated to defeat the worker's organizational right in
which case the closure may be declared a subterfuge

*Factors to Determine Continuity :


a. Retention of control
b. Use of the same plant or factory
c. Use of the same or substantially the same employees,
workers, supervisors or managers
d. Similar or substantially the same work or production under
similar or substantially the same working conditions
e. Use of the same machinery and equipment
f. Manufacture of the same products or the performance of the
same services

2. Yellow Dog Contract - contract whereby an employee agrees that during the
period of his employment he will not become a member of a labor union

3. Contracting work out - services or functions being performed by union


members
- determining factor : motivation
*Runaway Shop : industrial plant moved by its owners from one
location to another to escape union labor
regulations or state laws; a plant removed to
a new location in order to discriminate against
employees at the old plant because of their
union activities

4. Discrimination (wages, hours of work, other terms & conditions of


employment)
- Purpose : to encourage /discourage membership in any labor org'n
5. Indirect discrimination against someone who has filed charges or for having
given or about to give testimony against the employer under the Labor Code

6. Violation of duty to Bargain

7. Pay negotiation or attorney's fees to the union or its officers or agents as part
of the settlement of any issue in collective bargaining or any other dispute.

8. Violation of the CBA


- Flagrant & malicious refusal to comply with the economic conditions
or provisions thereof

9. Initiates, dominates, assists otherwise interferes with the formation or


administration of any labor organization including the giving of financial or
other support to its organizers or officers

RELIEF IN ULP CASES - not subject to compromise


Cease and desist order where :
Restrained conduct was an issue in the case
There was a finding of fact on said misconduct
Finding of fact supported by evidence
Reinstatement, Payment of Backwages
Disestablishment - withdrew all recognition from the dominated labor union
Order to bargain

ULP OF LABOR ORGANIZATIONS


1) Restraint, interference or coercion in their exercise of the right to self-
organization
- Interference in itself is not prohibited, ULP only if it amounts to
restraint or coercion

2) Causes employer to discriminate between union and non-union members or


members of another union

3) Violation of duty or refusal to bargain collectively

4) Featherbedding : employee practices which create or spread employment by


unnecessarily maintaining or increasing the number of employees used or the
amount of time consumed to work on a particular job

5) Accept/ask for negotiation or attorney's fees from employers as part of the


settlement of any issue in collective bargaining or any other dispute

6) Gross violation of CBA (if not gross, not ULP)


- Flagrant & malicious refusal to comply with the economic conditions
or provisions thereof

JURISDICTION OF VOLUNTARY ARBITRATORS


1. Original and Exclusive
all unresolved grievances arising from the interpretation or
implementation of the CBA
those arising from the interpretation or enforcement of company
personnel policies
2. All other labor disputes AGREED to be referred to it by the parties

Grievance machinery, automatically referred Award to be made Final


after
if unsettled after to Voluntary Arbitrator within 20 calendar 10 cal
days
7 calendar days days
from submission
TERM OF CBA : 5 years as to the representation aspect
Renegotiation of provisions other than representation aspect
- not later than 3 years after its execution

BARGAINING UNIT
- group of employees of a given employer comprised of all or less than all of the entire
body of employees, which the collective interests of all he employees, consistent with
equity to the employer, indicate to be the best suited to serve the reciprocal rights
and duties of the parties under the CBA

EXCLUSIVE BARGAINING REPRESENTATIVE


- labor organization designated or selected by the majority of the
employees in an appropriate bargaining unit
- despite having an EBR, an individual employee or group of
employees shall have the right at anytime to present grievances to
their employers

Participation of Workers in Policy and Decision Making


- workers shall have the right subject to such rules and regulations as
the Secretary of Labor and Employment may promulgate, to
participate in policy & decision making processes of the establishment
where they are employed insofar as said processes will directly affect
their rights, benefits, and welfare
- pursuant to this, Labor-Management Councils may be formed

SECURITY OF TENURE
~ applies to all establishment or undertakings whether for profit or not

CLASSES OF EMPLOYEES
1. REGULAR
~ engaged to perform activities which are usually necessary or desirable in
the usual business or trade of the employer

2. PROJECT
~ one whose employment has been fixed for a specific project or
undertaking the completion of which has been determined at the time of
engagement of the employee (SO EVEN IF MORE THAN I YR., NOT
NECESSARILY REGULAR)
*becomes regular if:
a. Job is usually necessary or desirable in the usual business or trade
AND
b. Repeated rehiring

3. SEASONAL
~ one whose work or services to be performed is seasonal in nature and
the employment is for the duration of the season

4. CASUAL
~ activity performed is not usually necessary or desirable in the usual
business or trade of the employer, not project and not seasonal
Except: if he has rendered at least 1 year of service, whether such service is
continuous or broken = considered a REGULAR employee with respect to the
activity in which he is employed and his employment shall continue while
such activity exists
5. PROBATIONARY
~ General Rule: Not Exceed 6 mos.
Except:
1. covered by an apprenticeship agreement stipulating a longer period
2. voluntary agreement of parties (especially when the nature of the
work requires a longer period)
3. the employer gives the employee a second chance to pass the
standards set
~ may be terminated a) just cause
b) when he fails to qualify as a regular
employee in accordance with reasonable
standards made
known by the employer to employee at
the time
of his engagement
~ if allowed to work after the probationary period, he shall be considered a
REGULAR employee

6. FIXED TERM
~ allowed if:
- period is agreed upon knowingly and voluntarily by the parties without
force, duress, or improper pressure exerted on the employee
- satisfactorily appears that employer and employee dealt with each
other on more or less equal terms with no moral dominance exercised
by the employer on the employee
- term employment is not resorted to defeat the rights of the workers
rights

** EFFECTS OF REMOVAL WITHOUT CAUSE :


1. entitled to reinstatement
2. without loss of seniority and other privileges
3. entitled to full backwages, inclusive of allowances and other benefits
or their monetary equivalent

TERMINATION

JUST CAUSE

a. GROUNDS
1. Serious misconduct or willful disobedience by the employee of the
lawful orders of his employer or representative in connection with his
work (work-related)
2. Gross and habitual neglect by the employee of his duties
3. Fraud or willful breach by employee of the trust reposed in him by his
employer or duly authorized representative (not mere suspicion)
4. Commission of a crime or offense by the employee against the person
of his employer or any immediate member of his family or duly
authorized representative
5. Other causes analogous to the foregoing

b. ABANDONMENT
~ means the deliberate, unjustified refusal of an employee to resume
his/her employment.
~ Two elements must be proved:
- the intention to abandon; and
- an overt act from which it may be inferred that the employee has no
more intent to resume his/her work.
~ this is negated by immediate filing of an action for ILLEGAL
DISMISSAL
c. DUE PROCESS
1. written notice containing a statement of the causes for termination
2. a hearing or conference where the employee, who may be assisted by
counsel if he so desires, is given the opportunity to respond to the
charge, present his own evidence, or rebut evidence against him
3. written notice of termination served on the employee indicating that
grounds have been established to justify his termination based on due
consideration of all the circumstances
4. right to contest the validity or legality of his dismissal by filing a
complaint with the NLRC
5. burden of proof is with the employer
6. SUSPENSION OF EFFECTS PENDING RESOLUTION = if there is a
prima facie finding that the termination may cause a serious labor
dispute or is in implementation of mass layoff, the Secretary of Labor
may suspend the effects of the termination

RESIGNATION

a. WITHOUT JUST CAUSE


1. at least 1 month prior notice
2. employee may be held liable for damages for failure to give notice

b. WITH JUST CAUSE


1. Grounds
a. serious insult on the honor and person of employee by the
employer or his representative
b. inhumane and unbearable treatment accorded to the employee
c. commission of a crime against person of the employee or any of
the immediate members of his family
d. other causes analogous to the foregoing
2. Notice Not Necessary

EMPLOYMENT NOT DEEMED TERMINATED

a. bona fide suspension of the operation of a business/undertaking for a


period of not more than 6 months

b. fulfillment by the employee of a military or civic duty


~ Effects : Employer shall reinstate the employee to his former position
without loss of seniority rights IF employee indicates his desire to resume
his work not later than 1 month from resumption of operations of his
employer or his relief from the military or civic duty

PREVENTIVE SUSPENSION
~ justified where the employees continued employment poses a serious
and imminent threat to the life or property of the employer or of his co-
workers
~ must not exceed 1 month
~ only for the purpose of investigating the offense to determine whether he
is to be dismissed or not
~ if more than 1 month, the employee must be actually reinstated or
reinstated in the payroll
~ officers liable only if with malice and bad faith
AUTHORIZED CAUSES

a. GROUNDS
1. introduction to labor-saving devices
~ view to effecting more economy and efficiency in its method of
production
2. redundancy
~ exists where the services of an employee are in excess of what is
reasonably demanded by the actual requirements of the enterprise
~ a position has become superfluous as an outcome of a number of
factors such as overhiring of workers, decreased volume of business,
dropping of a particular product line or service activity previously
manufactured or undertaken by the enterprise (THUS IT ONLY
REQUIRES SUPERFLUITY NOT DUPLICATION OF WORK)
3. retrenchment
~ resorted primarily to avoid or minimize business losses
~ criteria of who to lay off (1) less preferred status
(2) efficiency rating
(3) seniority
(4) performance
~ standards of retrenchment
a. losses expected should be substantial and not merely de
minimis in extent
b. substantial loss apprehended must be reasonably imminent
c. retrenchment must be reasonable necessary and likely to
effectively prevent the expected losses
d. alleged losses, if already realized, and the expected imminent
losses sought to be forestalled, must be proven by sufficient
and convincing evidence
4. closure of business as a result of grave financial loss
5. closure not due to losses

b. NOTICE AND SEPARATION PAY


- written notice served on the worker and the DOLE at least 1
month before the intended date thereof
- Separation Pay:
1 month pay or 1 month pay 1 month pay or at least 1/2 month
for every year of service pay for every year of service
whichever is higher whichever is higher
- installation of labor- - retrenchment to prevent
saving devices losses
- redundancy - closures or cessation of
operations of establishments
or undertaking NOT due to
serious business losses or
financial reverses
- disease

** A fraction of at least 6 moths shall be considered as one year.

c. Backwages- granted on grounds of equity for earnings which a worker


has lost due to his illegal dismissal.
- full backwages are to be awarded to an illegally dismissed employee
and should not be diminished or reduced by earnings derived
elsewhere
d. Ailment or disease (other authorized causes: non-economic ground)
~ when his continued employment is prohibited by law or
prejudicial to his health or to the health of his co-employees
~ there is a certification by a competent public health authority
that the disease is of such nature or at such stage that it cannot
be cured within a period of 6 months even with proper medical
treatment
~ SEPARATION PAY : equivalent to at least 1 month salary or
1/2 month salary for every year of service, whichever is higher

RETIREMENT PAY LAW (RA 7641)


A. WHO ARE EXEMPTED:
~ retail, service, agricultural establishments
~ operations employing not more than 10 employees or workers

B. KINDS:
1. OPTIONAL - 60 years old / 5 years in service (includes authorized
absences/vacations/regular holidays/mandatory military or civic
service)
2. COMPULSORY - 65 years old/ regardless or years of service
(company not bound to dismiss employee)

C. BENEFITS:
- 1/2 month salary per year of service which shall include:
1. 15-day basic wage, plus
2. 1/12 of the 13th month pay, plus
3. 5-day Service incentive leave pay plus
* a fraction of at least 6 mos. considered as one whole year
4. other benefits as maybe agreed upon by er and ee

** MINIMUM ~ no. 1 + no. 2 + no. 3 = n x years of service


~ minimum only so employer must pay deficiency in case agreed amount
be less than the above

DISPUTE SETTLEMENT

A. Labor Dispute
~ includes any controversy or matter concerning terms or conditions of
employment or the association or representation of persons in negotiating, fixing,
maintaining, changing or arranging the terms and conditions of employment,
regardless of whether the disputants stand in the proximate relation of employer
and employee

B. Labor Arbiters/NLRC
1. JURISDICTION = Labor Arbiter NLRC CA
~ Cases involving all workers, whether agricultural or non agricultural:
a. ULP cases (may include claims for actual, moral, exemplary and other
forms of damages, attorney's fees, other affirmative relief)
b. termination disputes
c. if accompanied with a claim for reinstatement , those cases that
workers may file involving wages, rates of pay, hours of work, and
other terms and conditions of employment
d. claims for actual, moral, exemplary and other forms of damages,
arising from the employer-employee relationship
e. cases arising from any violation of Art.264 of the Labor Code,
including questions involving the legality of strikes and lockouts
f. Except claims for EC, SSS, Medicare and maternity benefits, all other
claims arising from employer-employee relations, including those of
persons on domestic or household service, including an amount
exceeding P5,000 regardless of whether accompanied with a claim for
reinstatement

2. JURISDICTION = NLRC
~ EXCLUSIVE appellate jurisdiction over all cases decided by Labor Arbiters

3. GRIEVANCE MACHINERY & VOLUNTARY ARBITRATION


~ cases arising from the interpretation of the CBA and those arising from the
interpretation or enforcement of company personnel policies
* monetary claim based on a CBA provision is under the exclusive jurisdiction
of the grievance machinery & VA

4. OCULAR INSPECTION = Labor Arbiter & NLRC


~ at any time during working hours

5. PROCEDURE
~ the rules of evidence prevailing in courts of law or equity shall not be
controlling
~ it is the spirit and intention of this Code which shall be used as reasonable
means to ascertain the facts in each case
~ without regard to technicalities of law and procedure all in the interest of
due process
~ parties may be represented by legal counsel but it shall be the duty of the
Chairman, any presiding Commissioner or commissioner or any labor arbiter
to exercise compete control of the proceedings at all stages

6. APPEARANCES AND FEES


A. When non-lawyers appear before the NLRC/LA
1. if they represent themselves
2. if they represent their organizations or members thereof
B. Attorney's Fees, negotiations fees or similar charges of any kind
arising from any collective bargaining negotiations or conclusion of the
collective agreement shall be imposed on any individual member of
the contracting union
~ attorney's fees may be charged against union funds in an amount to be
agreed upon by the parties
~ contract, agreement to the contrary shall be VOID

7. APPEAL
~ WHEN: within 10 calendar days from receipt of decision of LA
~ GROUNDS:
a. prima facie evidence of abuse of discretion on the part of LA
b. the decision, order or award was secured through fraud or coercion
including graft and corruption
c. pure questions of law
d. raised serious errors in the findings of facts which could cause grave
or irreparable damage or injury to the appellant
~ ADDITIONAL REQUIREMENT: in case of judgment involving a monetary
award-employer (appellant) may perfect the appeal only upon the posting of a
cash or surety bond issued by a reputable bonding company duly accredited by
the NLRC in the amount equivalent to the monetary award in the judgment
appealed from

8. ORDER OF REINSTATEMENT OF LABOR ARBITER


~ self-executing with no need for a writ of execution
~ immediately executory even pending appeal
~ either admitted back to work under the same terms and conditions
prevailing prior to his dismissal or separation or merely reinstated in the
payroll ( at the option of the employer, but which choice must be
communicated to the employee by the employer)
~ posting of a bond shall not stay the execution of reinstatement
9. FILING OF MEMORANDUM OF:
A. APPEAL ~ furnish other party within 10 calendar days answer, then
within 20 calendar days decision by NLRC, then within 10 calendar
days finality
B. ENFORCEMENT:
~ any law enforcement agency may be deputized by the Secretary of DOLE
of the NLRC
~ issuance of writ of execution on a judgment within 5 years from date it
becomes final and executory motu proprio or in motion of any interested party

C. Bureau Of Labor Relations


o original jurisdiction: appeal to Office of the Secretary
o appellate jurisdiction: appeal to Court of Appeals

1. JURISDICTION
a. Inter-union conflicts
b. Intra-union conflicts
c. All disputes, grievances or problems arising from or affecting labor-
management relations in all workplaces EXCEPT those arising from the
implementation or interpretation of the CBA which shall be the subject of
grievance procedure and/or voluntary arbitration

2. COMPROMISE AGREEMENTS
~ if voluntarily agreed upon by the parties with the assistance of the BLR or
the regional office of DOLE final and binding upon the parties
~ the only time NLRC or any courts can assume jurisdiction over issues
involved therein:
a. in case of non-compliance thereof
b. if there is prima facie evidence that the settlement was
obtained through fraud, misrepresentation or coercion

3. POWER TO ISSUE SUBPOENA


~ when relevant to a labor dispute under its jurisdiction either at the request
of any interested party or at its own initiative

4. REGISTRY OF UNIONS AND FILING OF COLLECTIVE AGREEMENTS


a. registry of LLO
b. file of all CBA and other related agreements, records of settlement of
labor disputes, copies of orders, and decisions of voluntary arbitrators
~ open and accessible to interested parties under conditions prescribed by
the Secretary of DOLE, provided that no specific information submitted in
confidence shall be disclosed UNLESS authorized by the Secretary OR when
it is at issue in any judicial litigation OR when public interest or national
security so requires
~ submitted within 30 calendar days from execution of CBA to the
BLR/DOLE for registration accompanied with verified proofs of its posting in 2
conspicuous places in the place of work and ratification by the majority of all
the workers in the bargaining unit

5. PRIVILEGED COMMUNICATION
~ information and statements made at conciliation meetings shall NOT be
used as evidence in the NLRC
~ conciliators and similar officials shall not testify in any court or body
regarding any matters taken up at conciliation proceeding conducted by them

6. APPEAL
~ within 10 calendar days to the Secretary
~ GROUNDS: a. grave abuse of discretion
b. gross incompetence
SUMMARY OF JURISDICTION

A. VOLUNTARY ARBITRATORS
~ supervised by National Conciliation and Mediation Board (NCMB)
~ cases decided within 20 calendar days, final within 10 calendar days
1. unresolved grievances arising from the interpretation or implementation of the
CBA EXCEPT gross violation of the CBA
~ unresolved within 7 cal days from submission to grievance machinery
2. unresolved grievances arising from the interpretation or enforcement of
company personnel policies
3. upon agreement of parties = any dispute

B. MED-ARBITERS/BLR
1. petition for certification election (Regional Director)
2. registration of CBA/ Labor Organization
3. inter-union conflicts (representation issue/cancellation of registration)
4. intra-union conflicts (election of officers/ compliance with CBL)
5. all disputes, grievances, or problems arising from or affecting labor
management relations in all workplaces whether agricultural or non-
agricultural EXCEPT those arising from the implementation or interpretation
of CBA

C. POEA
~ appeal to Secretary of DOLE within 10 calendar days
1. cancellation/ revocation/ supervision of license or authority
~ appeal to NLRC within 10 calendar days
2. violation of overseas employment contracts
3. disciplinary cases filed against overseas contract workers
~ original and exclusive jurisdiction over all claims arising out of an employer-
employee relationship or by virtue of any law or contract involving Filipino
overseas workers including disciplinary cases; and all pre-employment cases
which are administrative in character involving or arising therefrom, or violations
of the conditions for issuance of license or authority to recruit workers

D. LABOR ARBITERS/NLRC
~ appeal within 10 calendar days
1. ULP (priority resolved within 30 calendar days from submission for
decision)
2. termination disputes
3. claims for wages, rates of pay, hours of work and other terms and conditions
of employment

4. claims for actual, moral, exemplary and other forms of damages arising from
employer-employee relationship
5. cases arising from prohibited activities during strikes, including questions
involving the legality of strikes and lockouts
6. all other claims arising from employer-employee relationship involving an
amount exceeding P5000 regardless of whether accompanied by a claim for
reinstatement except ECC, SSS, Medicare, & maternity benefits

E. REGIONAL DIRECTORS
1. Secretary of DOLE enforcement power (inspection) = no limit to claims
2. adjudicatory power maximum of P5000 total claim/employee
~ summary appeal to NLRC within 5 calendar days
3. violation of the CBL and right and conditions of membership

ATTORNEY'S FEES
- Proceeding for recovery of wages
~ may be assessed against monetary benefits awarded (10%)
- CBA negotiations
~ charged against union funds in an amount to be agreed upon by parties
PRESCRIPTIVE PERIODS ULP 1 year
MONEY CLAIMS 3 years
OFFENSES UNDER Labor Code 3 years
ILLEGAL DISMISSAL 4 years

PETITION FOR CERTIFICATION ELECTION


A. ORGANIZED ESTABLISHMENT (w/ CBA)
What: verified petition for questioning the majority status of the
incumbent
bargaining agent
When filed: w/ CBA : within the 60 day period before the expiration of the
CBA
W/o CBA: anytime except certification year rule OR deadlock-bar
rule
With whom: DOLE (Regional Office)
Requisite: written consent of at least 25% of all employees in the
bargaining unit
~ under the law, 25% is not a requisite, but makes conduct of a
CE mandatory if submitted
~ under the rules, 25% is a requisite, absence of such is a ground
for dismissal of the petition.
B. UNORGANIZED ESTABLISHMENT (no CBA)
1) petition by a legitimate labor organization (no 25% requirement)
2) employer when requested to bargain collectively

Certification election
Requirement for valid election -- majority of all eligible voters cast their votes
Union to be certified -- labor union receiving majority of the valid votes cast
Procedure:
Petition with decided w/in 20 file appeal w/ Regl Ofc but 15 days to decide;
Deci-
Med-Arbiter working days it is Secretary who decides sion final &
unappealable

Petition where no CBA : anytime


Except - within 1 yr. From date of issuance of a final certification election result
- after bargaining deadlock has been submitted (to which an incumbent
bargaining agent is a party) to conciliation/arbitration or became subject
of valid notice to strike or lockout

Run-off election
(within 5 calendar days from close of election)
3 or more choices
o results of election - no choice received majority of valid votes cast
o total # of votes for all contending unions at least 50% of total votes
cast
THUS: conducted between labor unions receiving the 2 highest number of votes
Presumption: valid election, i.e. majority of eligible voters voted

Conduct Of Certification Election


notice of at least 5 working days before actual date (2 most conspicuous place)

election proper
- any party in interest may protest to be recorded in the minutes, otherwise, it is deemed
waived
(Protests must be formalized with Med-Arbiter within 5 days from close of election
proceedings)
If no protest, election officer proclaims and When a protest is perfected or any
certifies results challenge or eligibility issue raised, only the
Med-Arbiter can proclaim and certify the
winner within 20 working days from filing

Contents of Notice :
1 date of election
2 names of contending parties
3 description of bargaining unit
4 list of eligible voters

all employees in bargaining unit can vote


CHALLENGE: before employees cast vote
Abstention not valid vote

Four (4) Bars to holding a Certification Election:

1) certification year -- w/in 1 yr. from issuance of a final certification election result
Exception: unusual circumstances exist as when a change in the structure of the
membership of the contracting union occurs in such a way that a reasonable
doubt arises as to whether it remains the labor union which the employees
desired to represent them in the first place with an accompanying change in the
officials, constitution, by-laws, and bargaining authority of the contracting union.

2) dead-lock bar rule -- during the existence of a bargaining deadlock to which an


incumbent or certified bargaining agent is a party and which had been submitted to
conciliation or arbitration or had become the subject of a valid notice of strike or lock-
out

3) contract-bar rule -- during the existence of CBA


Exception: within the freedom period
*CBA need not be certified, need only to be registered under Art. 231
*Applies as well after the lapse of the 60 day freedom period when old
CBA is extended until a new one is signed

4) negotiations bar -- when the duly recognized or certified union has commenced
negotiations with the employer in accordance with Article 250 of the Labor Code
within the one-year period of a certification year

Bargaining Representative -- LLO or any duly authorized officer or agent of such organization
whether or not employed by the employer

Certification Election -- process of determining, through secret ballot, the sole and exclusive
bargaining unit for purposes of collective bargaining

Consent Election -- election voluntarily agreed upon by the parties to determine issue of
majority representation of all workers in the appropriate collective
bargaining unit
- where a petition for CE had been filed and, upon the intercession
of the Med-Arbiter, the parties agree to hold a consent election, the
results thereof shall constitute a bar to the holding of a CE for one
year from the holding of such consent election
- where no PCE had been filed but the parties have agreed to hold
a consent election, the results thereof shall not constitute a bar to
another CE, unless the winning union had been voluntary
recognized.

Run-off Election -- election between the labor unions receiving the 2 highest number of votes
when a certification election which provides for 3 or more choices results in no choice receiving
majority of valid votes cast, where the total number of votes for all contending unions is at least
50% of the number of votes cast
Organized Establishment -- a firm or company where there is a recognized or certified
exclusive bargaining agent

Representation Officer -- person duly authorized to conduct and supervise certification


Elections

PETITION FOR CERTIFICATION ELECTION :


Who files:
a) legitimate labor unions
b) employer - when requested to bargain collectively

When filed
a) absence of CBA duly-registered -- any time
Except: certification year-rule (not w/in 1 year from issuance of
final C.E. result) deadlock bar rule (submitted to
conciliation/arbitration OR had become the subject of a valid
notice of strike/lockout
b) with a CBA duly-registered -- during the freedom period

25% support

BARGAINING NEGOTIATIONS
Request to Bargain by union => Counter-Proposal w/in 10 calendar days or reasonable period
of time

REGISTRATION OF CBA WITH BIR REGIONAL OFFICE


-- 5 copies within 30 calendar days from execution with verified proof of :
a. posting in 2 conspicuous places
b. ratification by majority of all workers
Regional office -- 2 copies; NCMB -- 1 copy; BLR -- 2 copies
-- registration fee of P1000.00 --- employer's cost
-- certificate of registration within 5 cd from receipt of agreement

Voluntary Arbitration :
- involves interpretation/construction of : CBA
Company Personnel Policies

any person accredited by the NCMB as such or any person named or designated in the CBA
by the parties to act as their voluntary arbitrator
one chosen with or without the assistance of the NCMB pursuant to a selection procedure
agreed upon in the CBA or any official that may be authorized by the Secretary of Labor and
Employment t act as voluntary arbitrator upon the written request and agreement of the
parties to a labor dispute.

Powers:
holds hearings
receive audience
take whatever action is necessary to resolve the issue subject of the dispute

Procedure:
all parties entitled to attend proceedings
adjournment for cause or upon agreement of the parties

decision within 20 calendar days from submission


final/executory after 10 calendar days from receipt
Cost:
proportionate sharing scheme in the CBA
fixing of fee (factors to be considered)
a. nature of the case
b. time consumed in hearing the case
c. professional standing of the voluntary arbitrator
d. capacity to pay of the parties
e. fees provided for in the Rules of Court
shared equally by parties unless agreed otherwise

Special Voluntary Arbitration Fund


administered by the NCMB
amount of subsidy in appropriate cases shall e determined by the NCMB upon
recommendation of the Council

Labor-Management Committee
no LLO exists
formed voluntarily by workers and employees for the purpose of promoting industrial
peace

Labor-Management Council
organized establishment
enable workers to participate in policy and decision making process in the
establishment insofar as said processes will directly affect their rights, benefit and
welfare except those which are covered by CBA's or are traditionally areas of
bargaining

RA 6971 -- Productivity Incentives Act of 1990

Labor-Management Committee
- both management and labor shall have equal voting rights
- representations of labor
organized -- designated by the Collective bargaining agents in the bargaining unit
unorganized -- elected by at least a majority of all rank and file employees who have
rendered at least 6 months of continuous service

Productivity Incentives Program


- contains provisions for the manner of sharing and the factors in determining productivity
bonuses
- productivity granted ,1/2 (percentage increase in the productivity of the business enterprise)
- granted salary bonuses = increases in current productivity over the average for the
preceding 3 consecutive years
- entitles employer to special deduction from gross income equivalent of 50% of the total
allowable ordinary and necessary business deductions for said bonuses under the NIRC

Strike : any temporary stoppage of work by concerted action of employees as a result of an


industrial labor dispute
: not a strike: mass resignation

Lockout : temporary refusal of an employer to furnish work as a result of an industrial or labor


dispute

Internal Union Dispute - includes all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by-laws of a
union, including any violation of the rights and conditions of union
member ship provided for in this Code

Strike Breaker -- any person who obstructs, impedes, or interferes with by force, violence,
coercion, threats, or intimidation, any peaceful picketing by employees
during any labor controversy affecting wages, hours, and conditions of work
or in the exercise of the right of self-organization or collective bargaining

Strike Area : -- establishment, warehouses, depots, plants or offices, including the sites or
premises used as run-away shops of the employer struck against as well as
the immediate vicinity actually used by picketing strikers in moving to and fro
before all points of entrance to and exit from said establishment

Valid Purpose for Concerted Activities


collective bargaining
mutual benefit and protection

Grounds for strikes and lockouts :


Deadlock [after reasonable efforts]
ULP [good faith of the strikers as to the existence of ULP is sufficient, depending on
circumstances]
* violations of CBA that are not flagrant and/or malicious refusal to comply with its
economic provisions are not ULP; not strikeable

Personality : LLO or recognized bargaining agent in case of economic strike

1. NOTICE OF STRIKE : Cooling off period


Bargaining deadlocks ---------- 30 days
ULP ---------- 15 days
Dispensed with if duly elected officer of union is
dismissed such as to constitute union busting
Duty of DOLE to exert all efforts at mediation and
conciliation to effect a voluntary settlement
30 day/15 day cooling off period mandatory
except : cases of union-busting
7-day strike ban mandatory

2. STRIKE VOTE: decision must be


approved by a majority of the total
union membership in the bargaining
unit concerned obtained by secret
ballots in meetings or referenda
called for that purpose (or of the BoD
of the corp. case of a lockout)

3. REPORT OF STRIKE VOTE


RESULTS: DOLE must be furnished
with the results of the voting at least
7 days before the intended strike or
lockout subject to the cooling off
period (7 day strike ban)
DOLE informed of meeting 24
hours before

Peaceful Means :
Violence not pervasive and widespread
Ingress and egress rule

Assumption of Jurisdiction by Secretary of Labor (resolved within 30 calendar days)


1. Discretionary
~ In his opinion there exists a labor dispute causing or likely to cause a strike or lockout
in an industry indispensable to the national interest
may certify the same to the commission for compulsory arbitration
Effect: automatically enjoins the intended on impending strike or lockout but if one has
already taken place, all striking or locked out employees shall immediately return to work
and the employer shall immediately resume operations and re-admit all workers under
the same terms and conditions prevailing before the strike or lock-out

2. Mandatory: (within 24 hours)


~ In labor disputes adversely affecting the continued operation of hospitals, clinics, or
medical institutions
Duty of striking union or locking out employer to provide and maintain an effective
skeletal workforce of medical and other health personnel, where movement and
service shall be unhampered and unrestricted as are necessary to insure the proper
and adequate protection of the life and health of its patients most especially
emergency cases for the duration of the strike or lock-out

*President of the PI : may determine the industries, which are in his opinion indispensable to
national interest. He may intervene at any time and assume jurisdiction over any such labor
dispute in order to settler or terminate the same

*Decision of the President, Secretary of labor, NLRC => final and executory after receipt thereof
by the parties

PROHIBITED ACTIVITIES:
1) strike or lock-out without first having bargained collectively
2) strike or lock-out without the necessary notice being filed with the DOLE
3) strike or lock-out without the necessary vote first having been obtained and reported to
the DOLE
4) strike or lock-out after DOLE has assumed jurisdiction or the President or after
certification or submission of dispute to the compulsory arbitration/voluntary
arbitration or during the pendency of cases involving the same grounds for the strike
or lockout
5) knowingly participating in illegal strike/knowingly participates in the commission of illegal
acts during a strike ground for termination of employment
6) obstruct, impede, or interfere with by force, violence, coercion, threats, or intimidation
any peaceful picketing by employees during any labor contriversy or shall abeit or aid
such obstruction or interference
7) employment or use of any strikebreaker/ employed as a strike breaker
8) bringing in, introducing, or escorting by any public officer or employee, including officers
and personnel of the AFP or PNP, or any armed person in any manner of any
individual who seeks to replace strikers in entering or leaving the premises of a strike
area or work in place of strikers
9) commit any act of violence, coercion or intimidaion while engaged in picketing or obstruct
the ingress or egress from the employer's premises for lawful purposes or obstruct
public thoroughfares
(must be pervasive and widespread/consistently and deliberately resorted
to as a matter of policy)

**See Sec. 7 (g) of D.O. 9 regarding prohibition on contracting out a job, work or service
directly related to the business or operation of the principal by reason of a strike or
lockout whether actual or imminent.

Improved Offer Balloting


~ Referendum by the DOLE on the improved offer of the employer or on the reduced offer of
the union (on or before the 30th day of the strike or lock-out)
where at least a majority of the union members/BOD, trustees, or the partners holding the
controlling interest vote and accept the improved/reduced offer, the workers shall
immediately return to work and the employer shall thereupon readmit them upon the signing
of the agreement

Requirement for Arrest, Detention of Union Members/Organizers for union Activities


General Rule : previous consultations with the Secretary of Labor
Exception : grounds of national security and public peace
: in case of commission of a crime
GUIDELINES FOR THE CONDUCT OF THE INP/AFP PERSONNEL DURING
STRIKES/LOCKOUT AND LABOT DISPUTES IN GENERAL

Involvement limited to the :


a) maintenance of peace and order
b) enforcement of laws and legal order of duly constituted authorities
c) performance of special functions as maybe provided by law

1) elements of the Police Force should first be called upon to render assistance
2) when it is unavailable or inadequate, CAPCOM or METRODISCOM may call upon the
Constabulary to render assistance
3) personnel from the army, Navy, or Air Force only when directed by the President or
personally by the Secretary of National Defense upon consultation with the Secretary of
Labor and Employment or when requested by the latter.

*Personnel related by affinity or consanguinity within the 4 th civil degree to any official/leader of
the parties in the controversy or has any financial or pecuniary interest therein - not allowed to
render services in connection with a strike or lock-out

PEACE-KEEPING DETAIL
personnel detailed shall be in uniform, with proper namecloth at all times, personnel
shall observe strict neutrality in his dealings with both parties to the controversy
stationed such that their presence may deter the commission of criminal acts from
either side
maintain themselves outside a 50 meter radius from the picket line except if the 50
meter radius includes a public thoroughfare, they may station themselves in such
public thoroughfares for the purpose of insuring the free flow of traffic

ARRESTS/SEARCHES AND SEIZURES


effected only on the basis of an existing and valid warrant
any person who obstructs the free and lawful ingress to and egress from the
employer's premises or who obstructs public thoroughfares may be arrested and
accordingly charged in court
as well as any person who shall have in his possession deadly weapons in violation
of BP Blg. 06 such as knives, bolos, blunt or pointed instruments and firearms or
explosives in violation of PD 1896

Service of DOLE, Court or Lawful Orders/Writs


primary concern of the DOLE representatives, sheriff, representative of the govt.
agency issuing the order respectively
role of the AFP/INP is only supportive

Administrative Jurisdiction
determination of whether a strike, picket or lock-out is legal or not should be left to
DOLE
personal escort only upon direction of competent authority
other party shall be informed accordingly
all escorts shall be in uniform at all times

Socializing/Liaison
discouraged from socializing with any of the parties involved during the pendency
shall not, under any pretext, accept an invitation from either of the parties
liaison established and maintained with representatives of DOLE, mgmt., and union
for the purpose of maintaining peace and order as well as to maintain a continuing
peaceful dialogue

Administrative Action
all complaints/reports leveled against any personnel of the INP/AFP on the occasion of
strike/lock-out shall be acted with dispatch
whenever applicable, and if the evidence so warrants, appropriate disciplinary action
shall be takes against the erring personnel

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