Memory Aid LABOR

SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!
PRELIMINARY TITLE
7.Right to Participate in Policy &
Decision-Making Processes affecting
CHAPTER I their rights and benefits as may be
GENERAL PROVISIONS provided by law
RELATED LAWS:
ART 1. NAME OF DECREE 1. CIVIL CODE: see Arts. 1700, 1701and 1703
2. REVISED PENAL CODE: Art. 289
LABOR LEGISLATION - Consists of 3. OTHERS: SSS Law, GSIS Law, Agrarian
statutes, regulations and jurisprudence Reform Law, the 13th month pay law, the
governing the relations between capital and Magna Carta for Public Health Workers, etc.
labor, by providing for certain standards of terms
and conditions of employment or providing a RATIONALE :
legal framework within which these terms and
conditions and the employment relationship may - The raison d etre of labor laws is the POLICE
be negotiated, adjusted and administered. It is POWER of the State
divided into labor standards and labor relations.
ART 3. DECLARATION OF BASIC
LABOR STANDARDS - Are the minimum
POLICY
requirements prescribed by existing laws, rules
and regulations relating to wages, hours of work,
The State shall afford protection to labor,
cost-of-living allowance, and other monetary and
promote full employment, ensure equal work
welfare benefits, including occupational safety,
opportunities regardless of sex, age or creed,
and health standards.
and regulate the relations between workers and
employers. The State shall assure the right of
LABOR RELATIONS LAW - defines the
workers to self-organization, collective
status, rights, and duties and the institutional
bargaining, security of tenure, and just and
mechanisms that govern the individual and
humane conditions of work.
collective interactions of employers, employees
or their representatives.
- The law which EMPLOYER - one who employs the services
seeks to stabilize the relation between employer of others; one for whom employees work and
and employee, to forestall and thresh out their who pays their wages or salaries.
differences through the encouragement of
collective bargaining and the settlement of labor EMPLOYEE - one who works for an
disputes through conciliation, mediation, and employer; a person working for salary or wages
arbitration.
ART. 2. DATE OF EFFECTIVITY ART 4. CONSTRUCTION IN FAVOR OF

LABOR
The Labor Code took effect on November 1,
1974 (six months after its promulgation on May CONSTRUCTION IN FAVOR OF LABOR
1,1974) CLAUSE -this is with a view to apply the Code
to the greater number of employees to enable
SEVEN (7) BASIC RIGHTS OF them to avail of the benefits under the law
WORKERS AS GUARANTEED BY THE (Abella vs. NLRC). The working mans welfare
CONSTITUTION (OCESHLP): should be the primordial consideration.
1. Right to Organize - This rule is applicable if there is a doubt as

2. Right to Conduct Collective Bargaining to the meaning of the legal or contractual
or Negotiation with Management provision. If the provision is clear and
3. Right to Engage in Peaceful Concerted unambiguous, it must be applied in
Activities including strike in accordance accordance with its express terms.
with law
4. Right to Enjoy Security of Tenure - These laws should be interpreted with a
5.Right to Work Under Humane Conditions view to the fact that they are remedial in
6.Right to Receive a Living Wage nature, they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
and promote the welfare of the members of the ART 6. APPLICABILITY

laboring class.
AGRICULTURAL OR FARM WORKER -
- Reservation of essential attributes of one employed in an agricultural or farm
sovereign power is read into contracts enterprise and assigned to perform tasks which
as a postulate of the legal order. are directly related to the agricultural activities of
the employer, such as cultivation and tillage of
- Courts adopt a liberal approach that the soil, dairying, growing and harvesting of any
favors the exercise of labor rights. agricultural and horticultural commodities, the
The mandate under Art. 4 is simply to raising of livestock or poultry, and any activities
resolve doubt, if any, in favor of labor. If performed by a farmer as an incident to or in
there is no doubt in implementing and conjunction with such farming operations.
interpreting the law, labor will enjoy no
built-in advantage and the law will have - There may be in one employer both
to be applied as it is. agricultural as well as industrial workers.
MANAGEMENT RIGHTS: (CPST) - PURPOSE of the provision: intended to

encourage workers to seek employment in
C Right to conduct business agricultural enterprises instead of migrating
P Right to prescribe rules to already overcrowded urban areas to find
S Right to select employees work in industrial establishments
T Right to transfer or discharge
employees - The LC applies to all workers, whether
agricultural or non-agricultural, including
MANAGEMENT PREROGATIVE employees in a government corporation
incorporated under the Corporation Code.
Except as limited by special laws, an
employer is free to regulate, according to his
own discretion and judgment, all aspects of FARM
employment, including: EMPLOYER-FARM TENANCY
HIRING, WORK ASSIGNMENTS, WORKER RELATIONSHIP
WORKING METHODS, TIME PLACE AND RELATIONSHIP
MANNER OF WORK, TOOLS TO BE USED,
PROCESSES TO BE FOLLOWED, - The lease is one - It is the landowner
SUPERVISION OF WORKERS, WORKING of labor with the who is the lessor
REGULATIONS, TRANSFER OF EMPLOYEES,
agricultural laborer and the tenant the
WORK SUPERVISION, LAY-OFF OF as the lessor of his lessee of
WORKERS, AND DISCIPLINE, DISMISSAL services and the agricultural land
AND RECALL OF WORKERS. (HW5T2PLSD) farm employer as
the lessee
- Thus, so long as management
prerogatives are exercised in good faith - The agricultural - The tenant derives
for the advancement of the employers worker works for his income from the
interest and not for the purpose of the farm employer agricultural produce
defeating or circumventing the rights of and for his labor he or harvest
employees under special law or under receives a salary or
valid agreements, it shall be upheld. wage, regardless of
whether the
employer makes a
ART 5. RULES AND REGULATIONS
profit.
- The rules and regulations issued by the DOLE
shall become effective 15 days after
announcement of their adoption in
newspapers of general circulation.
Page 2 of 70
CHAPTER II RECRUITMENT AND PLACEMENT - any act

EMANCIPATION OF TENANTS of canvassing, enlisting, contracting,
(Note: not included as per SC Memo) transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
ART 7-11
employment, locally or abroad, whether for profit
or not; PROVIDED, that any person or entity
- Share tenancy has been abolished
which, in any manner, offers or promises for a
placing in its stead leasehold system.
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
- Under Art. 8, the land covered by operation
(CEC-TUCP) (RCPA)
land transfer must be private agricultural
land, tenanted, primarily devoted to rice
-The number of persons dealt with is not
and/or corn, and more than seven
an essential ingredient of the act of recruitment
hectares in are.
and placement of workers. The proviso merely
creates the presumption.
Present retention limits:
- 5 hectares per landowner and 3 hectares
ART 16. PRIVATE RECRUITMENT
per child provided the child is:
1. Is at least 15 years of age; and ENTITIES AUTHORIZED TO RECRUIT

2. Actually tilling the land or directly managing
the farm 1. Public employment offices
2. Private recruitment entities; private
employment agencies
EXCEPTIONS:
3. Shipping or manning agents or
- those covered by homestead patents
representatives
- those covered by PD 27
4. The POEA
5. Construction contractors if authorized by the
EMANCIPATION PATENT - is the title issued DOLE and the Construction Industry
to the tenant upon compliance with all the Authority
requirements of the government. It represents 6. Members of the diplomatic corps (but hirings
the full emancipation pf the tenant from the must also go thru POEA)
bondage of the soil. 7. Other persons or entities as may be
authorized by the DOLE secretary
PROHIBITION AGAINST ALIENATION
IS INTENDED TO: DOCUMENTATION OF WORKERS:
1. Preserve the landholding in the hands of the 1. Contract Processing workers hired thru the
owner-tiller and his heirs; POEA shall be issued the individual
2. minimize land speculation; and employment contract and such other
3. prevent a return to the regime of land documents as may be necessary for travel
ownership by a few. 2. Passport Documentation
3. Visa Arrangement
BOOK ONE
PRE-EMPLOYMENT ART 17. (POEA)
- POEA has taken over the functions of the

TITLE I OEDB
RECRUITMENT AND PLACEMENT OF
WORKERS ADJUDICATORY FUNCTIONS OF THE
POEA :
CHAPTER I
a. All cases which are administrative in
GENERAL PROVISIONS character, involving or arising out of
violations of rules and regulations relating to
ART 13. DEFINITIONS licensing and registration of recruitment and
employment agencies or entities; and
WORKER -any member of the labor force, b. Disciplinary action cases and other special
whether employed or unemployed cases which are administrative in character,
Page 3 of 70
involving employers, principals, contracting valid any agreement to receive less

partners and Filipino Migrant Workers compensation than what the worker is
entitled to recover.
JURISDICTION TRANSFERRED TO THE (MR Yard Crew Union vs. PNR)
LABOR ARBITERS OF THE NLRC :
ART 18. BAN ON DIRECT-HIRING
a. claims arising out of an employer-employee
relationship or by virtue of any law or Direct hiring of Filipino workers by a
contract involving Filipino workers for foreign employer is not allowed.
overseas deployment including claims for
actual, moral, exemplary and other forms of EXCEPTIONS :
damages.
1. the members of the diplomatic corps;
Venue Money claims or claims for damages 2. international organizations;
should be filed before the Regional Arbitration 3. such other employers as may be allowed by
branch of the NLRC where the complainant the Department of Labor and employment
resides or where the principal office of the 4. name hirees individual workers who are
respondent/employer is situated, at the option of able to secure contracts for overseas
the complainant. employment on their own efforts and
representations without the assistance or
Compromise Agreement - Consistent with participation or any agency
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows RATIONALE OF THE PROHIBITION
resolution by compromise of cases filed with the - Filipino workers hired directly by a
NLRC. foreign employer, without government
intervention may not be assured of the
PREMATURE TERMINATION OF best possible terms and conditions of
CONTRACT - Where the workers employment work. The foreign employer must also be
contract is terminated long before its agreed protected and may chance upon a Filipino
termination date, and the termination is not worker who do not possess sufficient
shown to be based on lawful or valid grounds, knowledge for which he is employed.
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired MINIMUM EMPLOYMENT CONDITIONS
portion of their employment contract. (Tierra OF OVERSEAS EMPLOYMENT:
Intl Construction Corp. vs. NLRC).
1. Guaranteed wages for regular working hours
HOWEVER, under R.A. 8042, if the illegal and overtime pay for services rendered
dismissal took place on or after July 15, 1995, beyond regular working hours in accordance
the illegally dismissed overseas worker shall be with the standards established by the
entitled to the full reimbursement of his Administration
placement fee with interest at the rate of 12% 2. Free Transportation from point of hire to site
per annum plus salary for the unexpired of employment and return;
portion of his employment contract or for 3 3. Free emergency medical and dental
mos. for every year of the unexpired term treatment and facilities;
whichever is LESS. 4. Just causes for termination of the contract or
of the services of the workers;
5. Workmens compensation benefits and war
- Claims for death and burial benefits hazard protection;
involving seamen OCWs which the POEA 6. Repatriation of workers remains and
has jurisdiction are not the same as the properties in case of death to the point of
claims against the State Insurance Fund hire, or if this is not possible the possible
of the LC. disposition thereof
7. Assistance on remittance of workers
- The basis for the award of backwages is the salaries, allowances or allotments to his
parties employment contract, stipulating the beneficiaries; and
wages and benefits. 8. Free and adequate board and lodging
facilities or compensatory food allowance at
- The fact that the employee has signed a prevailing cost of living standards at the
satisfaction receipt does not result in jobsite.
waiver; the law does not consider as
Page 4 of 70
ART 22. MANDATORY REMITTANCE program and their relatives within the 4th
OF FOREIGN EXCHANGE EARNINGS degree of consanguinity or affinity; or
6. Those whose license has been previously
MANDATORY REMITTANCE canceled or revoked.
REQUIREMENTS:
1. Seamen or mariners: 80% of the basic CHAPTER II

salary; REGULATIONS OF RECRUITMENT
2. Workers for Filipino Contractors and AND PLACEMENT ACTIVITIES
Construction Companies: 70% of the basic
salary; ART 29. NON-TRANSFERABILITY OF
3. Doctors, engineers, teachers, nurses, and
LICENSE OR AUTHORITY
other professionals whose employment
contract provide for lodging facilities: same
- No license or authority shall be used
as #2
directly or indirectly by any person other
4. All other professionals without board and
than the one in whose favor it was issued
lodging: 50% of the basic salary;
or at any place other than that stated in the
5. Domestic and other service of workers; 50%
license or authority, nor may such license or
of the basic salary.
authority be transferred, conveyed or
assigned to any other person or entity.
ART 25. PRIVATE SECTOR - Licensees or holders of authority or their
PARTICIPATION IN THE RECRUITMENT duly authorized representatives may as a
AND PLACEMENT OF WORKERS rule, undertake recruitment and placement
activities only at their authorized official
QUALIFICATIONS FOR addresses.
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM: - Change of ownership or relationship of
single proprietorship licensed to engage
1. Filipino citizens, partnerships or corporations in overseas employment shall cause the
at least 75% of the authorized and voting automatic revocation of the license.
capital stock of which is owned and
controlled by Filipino citizens; - All overseas landbased workers shall be
2. Minimum capitalization of 1M in case of provided both life and personal accident
single proprietorship or partnership and a insurance.
minimum of 1M paid-up capital for
corporations; GROUNDS FOR DISCIPLINARY
3. Those not otherwise disqualified by law or ACTION (Under the MWA of 1995) ;
these guidelines to engage in the
recruitment and placement of workers for 1. Commission of a felony punishable by the
overseas employment laws of the Philippines or by the host
country;
DISQUALIFICATIONS: 2. Drug addiction or possession or trafficking of
prohibited drugs;
1. Travel agencies and sales agencies of 3. Desertion or abandonment;
airline companies; 4. Drunkenness, especially where the laws of
2. Officers or members of the board of any the of the host country prohibit the same;
corporation or members in a partnership 5. Gambling, especially where the laws of the
engaged in the business of a travel agency; host country prohibit the same;
3. Corporations and partnerships, when any of 6. Initiating or joining a strike or work stoppage
its officers, members of the board or where the laws of the host country prohibit
partners, is also an officer, member of the strikes or similar actions;
board or partner of a corporation engaged in 7. Creating trouble at the worksite or in the
the business of a travel agency. vessel;
4. Persons, partnerships, or corporations which 8. Embezzlement of company funds or of
have derogatory records; money an properties of a fellow worker
5. Persons employed in the Department of entrusted for delivery to kins or relatives in
Labor or in other government agencies the Philippines;
directly involved in overseas employment 9. Theft or robbery;
10. Prostitution;
Page 5 of 70
11. Vandalism or destroying company property;

12. Gunrunning or possession of deadly CHAPTER III
weapons;
13. Unjust refusal to depart for the worksite after
MISCELLANEOUS PROVISIONS
all employment and travel documents have
been duly approved by the appropriate ART 38. ILLEGAL RECRUITMENT (as
government agency; and per RA 8042 otherwise known as the
14. Violation of the laws and sacred practices of Migrant Workers Act of 1995)
the host country and unjustified breach of
government approved employment contract ILLEGAL RECRUITMENT - Any act of
by a worker. canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers and
ART 31. BONDS includes referring contract services, promising or
advertising for employment abroad, whether for
- Cash bond filed by applicants for license profit or not when undertaken by a non-licensee
or authority is not subject to garnishment or non-holder of authority.
by judgment creditor of agency PROVIDED that any such non-licensee
or non-holder of authority who in any manner,
ART 32. FEES TO BE PAID BY offers or promises for a fee employment abroad
WORKERS to two or more persons shall be deemed so
engaged. It shall likewise include the
- Suspension or cancellation of licenses may commission of prohibited acts whether
include award of damages to repair the committed by a non-licensee or non-holder of
injury caused to its victims. authority or a licensee or holder of authority.
PROHIBITED PRACTICES:
ART 34. PROHIBITED PRACTICES
(CFGIIEOFSBWF)
- A supplementary contract beneficial to
worker not violative of protection afforded C to charge or accept amount beyond
by the State to workers. amount allowed by law
F to furnish or publish false notice or
information in relation to Recruitment
ART 35. SUSPENSION AND/OR and Placement
CANCELLATION OF LICENSE OR G to give any false notice and information
AUTHORITY or commit any act of misrepresentation
to secure license or authority
NON-LICENSEE OR NON-HOLDER OF I Induce or attempt to induce workers to
AUTHORITY - any person, corporation or entity quit employment to offer him another
which has not been issued a valid license or except if the transfer is to liberate a
authority to engage in recruitment and worker from oppressive terms and
placement by the Secretary of Labor, or whose conditions of employment (NOTE: it is
license or authority has been suspended, not necessary that worker was actually
revoked, or cancelled by the POEA and the induced or did quit employment)
Secretary. I to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the Phil.
O Obstruct or attempt to obstruct
inspection by Secretary
F Fail to file reports
S Substitute or alter employment contracts
B Become officer or Board member of
corporation engaged in travel agency
W Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
Page 6 of 70
F Failure to actually deploy without valid TITLE II

reason as determined by the DOLE EMPLOYMENT OF NON-RESIDENT
F Failure to reimburse expenses incurred
by the worker in connection with his
ALIENS
documentation and processing for
purposes of deployment, in cases where ART 40. EMPLOYMENT PERMIT OF
the deployment does not actually take NON-RESIDENT ALIENS
place without the workers fault -Foreigners or domestic and foreign employers
desiring to employ aliens must secure
THE QUALIFYING CIRCUMSTANCES employment permit from the DOLE upon
THAT WOULD MAKE ILLEGAL determination of the non-availability of a person
in the Philippines who is competent, able and
RECRUITMENT AS A CRIME INVOLVING
willing at the time of the application to perform
ECONOMIC SABOTAGE ARE : the services for which the alien is desired.
(a) When committed by a SYNDICATE i.e., - Foreigners may not be employed in certain
if it is carried out by a group of three (3) nationalized business.
or more persons conspiring and
confederating with one another; or - a non-resident alien worker and the
(b) When committed in a LARGE SCALE employer shall bind themselves to train at least
i.e., if it is committed against three (3) or 2 Filipino understudies.
more persons
PROHIBITION AGAINST EMPLOYMENT
VENUE OF ACTIONS ON ILLEGAL
OF ALIENS
RECRUITMENT:
Section 2-A of the Anti-Dummy Law prohibits
1. RTC of the province or city where the the employment of aliens in establishment or
offense was committed; or entities which have under their name or control a
2. where the offended party resides at the time right, franchise, privilege, property or business
of the commission of the offense the exercise or enjoyment of which property or
at the option of the complainant business the exercise or enjoyment of which is
expressly reserved by the Constitution or the
- These circumstances only qualify. They do laws to citizens of the Philippines or to
not define the offense themselves corporations or associations at least 60% of the
capital of which is owned by such citizens.
- Recruitment and placement activities of
agents or representatives appointed by a
EXCEPTIONS TO THE
licensee, whose appointments were not
previously authorized by the POEA shall PROHIBITION:
likewise constitute illegal recruitment.
a. where the Secretary of Justice specifically
- ART. 38 ( c ) declared unconstitutional authorizes the employment of technical
since only a judge may issue search personnel; or
warrant/ warrant of arrest. The Sec. Of b. where the aliens are elected members of
Labor may only recommend not issue. the board of directors or governing body of
However, Closure of establishments of corporations or association in proportion to
illegal recruiters may still be ordered by their allowable participation in the capital of
Secretary of Labor, same being essentially such entities.
administrative and regulatory in
nature.(Salazar vs. Achacoso and
Marquez)
PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall

prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.
Page 7 of 70
BOOK TWO APPRENTICESHIP AGREEMENT - an

HUMAN RESOURCES employment contract wherein the employer
binds himself to train the apprentice and the
DEVELOPMENT apprentice in turn accepts the terms of training
TITLE I ON-THE-JOB TRAINING the practical work

NATIONAL MANPOWER experience through actual participation in
DEVELOPMENT PROGRAM productive activities given to or acquired by an
apprentice
CHAPTER I HIGHLY TECHNICAL INDUSTRIES trade,
NATIONAL POLICIES AND business, enterprise, industry or other activity,
ADMINISTRATIVE MACHINERY FOR which is engaged in the application of advanced
THEIR IMPLELENTATION technology
ART 45. DEFINITIONS ART 59. QUALIFICATIONS OF

APPRENTICES
MANPOWER - that portion of the nations
population which has actual or potential Qualifications of an Apprentice
capability to contribute directly to the production
of goods and services. 1. at least 15 years of age; provided those
who are at least 15 years of age but less
ENTREPRENEURSHIP - training for self- than eighteen may be eligible for
employment or assisting individual or small apprenticeship only in non-hazardous
industries within the purview of this the LC. occupations and the apprenticeship
agreement shall be signed in his behalf by
TITLE II the parent or guardian or authorized
TRAINING AND EMPLOYMENT OF representative of DOLE.
2. vocational aptitude/ capacity for appropriate
SPECIAL WORKERS test
3. ability to comprehend and follow oral and
CHAPTER I written instructions
APPRENTICES
ART 60. EMPLOYMENT OF
Types of Special Workers: APPRENTICES
1. Apprentice - Only employers in highly technical

2. Learners industries may hire apprentices and only in
3. Handicapped apprenticeable occupations as
determined by the Sec. Of Labor
ART 58. DEFINITION OF TERMS Requisites for a VALID

APPRENTICESHIP
APPRENTICESHIP - practical training on the
job supplemented by related theoretical 1. QUALIFICATIONS OF THE APPRENTICE
instruction 2. APPRENTICESHIP AGREEMENT DULY
EXECUTED AND SIGNED PROVIDING FOR
APPRENTICE - worker who is covered by a COMPENSATION NOT LESS THAN 75% OF
written apprenticeship agreement with an THE APPLICABLE MINIMUM WAGE, EXCEPT
individual employer or any of the entities ON-THE-JOB TRAINING (OJT)
recognized under this chapter 3.APPRENTICESHIP PROGRAM DULY
APPROVED BY DOLE
APPRENTICEABLE OCCUPATION - any 4. PERIOD OF APPRENTICESHIP SHALL NOT
trade, form of employment or occupation which EXCEED 6 MONTHS.
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction
Page 8 of 70
ART 71. DEDUCTIBILITY OF TRAINING

COSTS 2. Not less than 3 2. Practical training
months practical on the job not to
Requisites for tax deductions in case training on the job exceed 3 mos.
but not more than 6
employers have apprenticeship
months
programs:
3. No Commitment to 3. With Commitment
1. Program duly recognized by the Department
hire to employ the
of Labor
learner as regular
2. Deduction shall not exceed 10% of direct
employee if he
labor wage
desires upon
3. Pay his apprentices the minimum wage
completion of
learnership
ART 72. APPRENTICES WITHOUT
COMPENSATION 4. In case of 4. Learner is
pretermination of considered as a
Apprentices who may be hired without the apprenticeship regular employee
compensation: agreement, the in case of
worker is not pretermination of
1.those whose training on the job is considered as a contract after 2
required by the school; regular employee mos. of training
2.Training Program Curriculum; and the dismissal
3.Requisite for Graduation; or is without fault of
4.A requisite for Board Examination learner
5. Highly technical 5. Semi-skilled /

CHAPTER II industries and only industrial
LEARNERS in industrial occupations
occupation
ART 73. LEARNERS DEFINED
- Learners in piecework/ incentive - rate
jobs are to be paid in full for the work done.
LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be
CHAPTER III
learned thru practical training on the job in a
relatively short period of time which shall not HANDICAPPED WORKERS
exceed 3 mos.
ART 78. DEFINITION
APPRENTICESHIP LEARNERSHIP HANDICAPPED WORKERS - Are those

whose earning capacity is impaired by age or
1. Practical training 1. Hiring of persons physical or mental deficiency or injury.
on the job as trainees in
supplemented by semi-skilled and - Subject to the provisions of the Code,
related theoretical other industrial handicapped workers may be hired as
instruction. occupations which regular workers, apprentices or learners
are non- if their handicap is not such as to
apprenticeable effectively impede the performance of job
and which may be operations in the particular occupations for
learned thru which they were hired.
practical training
on the job in a - qualified disabled employee shall be
relatively short subject to the same terms and conditions
period of time. of employment and the same
compensation, privileges, benefits, fringe
benefits, incentives or allowances as a
qualified able-bodied person. Even a
handicapped worker can acquire the
status of a regular employee.
Page 9 of 70
Duration of employment - no minimum, no GOVERNMENT EMPLOYEES - Refers only to

maximum. Dependent on agreement but is employees of government agencies,
necessary that there is a specific duration instrumentalities or political subdivisions and of
government corporations that are not
BOOK THREE incorporated under the Corporation Code,
CONDITIONS OF EMPLOYMENT meaning those which have original charters.
MANAGERIAL EMPLOYEES - Refer to those

TITLE I whose primary duty consists of the management
WORKING CONDITIONS AND REST of the establishment in which they are employed
PERIODS or of a department or subdivision thereof and to
other members of the managerial staff
CHAPTER I
Note: Definition applies only to the 8-
HOURS OF WORK hour Labor law
ART 82. COVERAGE FIELD PERSONNEL - Refer to non-

agricultural employees who regularly perform
ELEMENTS OF EMPLOYER- their duties away from the principal place of
EMPLOYEE RELATIONSHIP: business or branch office of the employer and
whose actual hours of work in the field cannot
1. selection and engagement of the be determined with reasonable certainty.
employee
2. the payment of wages WORKERS PAID BY RESULTS - Method of
3. the power of dismissal computing compensation based on the work
4. the employers power to control the completed and not on the time spent in working.
employee (with respect to the means
and methods by which the work is to PIECE-RATE METHOD - Where pay is
be accomplished) dependent on unit of product finished, preferred
where the work process is repetitive and the out
- The last element as mentioned above is put is standardized and easily countable.
what is known as the CONTROL TEST - DOMESTIC HELPERS/ PERSONS
whether the employer controls or has RENDERING PERSONAL SERVICES -
reserved the right to control the employee Perform services in the employers home which
not only as to the result of the work to be are usually necessary and desirable for the
done but also as to the means and methods maintenance or enjoyment thereof, or ministers
by which the same is to be accomplished. to the personal comfort, convenience or safety
This last element is the most important index of the employer, as well as the members of the
of the existence of the relationship. employers household.
EMPLOYEE - A natural person who is hired, - The existence of employment relationship is

directly or indirectly, by a natural or juridical determined by law and not by contract.
person to perform activities related to the
business of the hirer who, directly or through - Whether or not an employer-employee
an agent, supervises or controls the work relationship exists between the parties is a
performance and pays the salary or wage of the question of fact. The findings of the
hire. NLRC are accorded not only respect but
finality if supported by substantial
Employees Exempt from the Benefits evidence.
of E-E Relationship
MANAGEMENT PREROGATIVE - except as
1. Government Employees otherwise limited by special laws, an employer is
2. Managerial Employees free to regulate, according to his own discretion
3. Field Personnel and judgment, all aspects of employment,
4. Family Members dependent on the including hiring, work assignments, working
employer for support methods, time, place, and manner of work, tools
5. Domestic Helpers to be used, processes to be followed,
6. Persons on the Personal Service of another supervision of workers, working regulations,
7. Workers Paid by Result transfer of employees, work supervision, lay-off
Page 10 of 70
of workers and discipline, dismissal and recall of whether within or outside the premises of his
workers. workplace;
3. If the work performed was necessary, or it
- Management prerogative recognizes the benefited the employer, or the employee
right of the employer to advance its could not abandon his work at the end of his
interest to prescribe standards of work and normal working hours because he had no
impose reasonable quotas or work replacement, all time spent for such work
assignments, and failure on the part of the shall be considered as hours worked if the
employees to meet the requirement, impose work is with the knowledge of his employer
in good faith, constitutes a just cause for his or immediate supervisor
dismissal. 4. The time during which an employee is
inactive by reason of interruptions in his
- New owner/management group has no work beyond his control shall be considered
obligation to re-employ workers who time either if the imminence of the
freely and voluntarily accepted their resumption of work requires the employees
separation pay and other benefits. A presence at the place of work or if the
change of ownership in a business concern interval is too brief to be utilized effectively
is not proscribed by law. and gainfully in the employees own interest.
- Only the maximum is prescribed, not minimum.

ART 83. NORMAL HOURS OF WORK Part- time work is therefore not prohibited.
- Shall not exceed 8 hours in a regular working ENGAGED TO WAIT - when waiting is an
day integral part of the job, it is compensable
PURPOSE WAITING TO BE ENGAGED - idle time is not

- to safeguard the health and welfare of the working time, not compensable
laborer and in a way to minimize
unemployment by utilizing different shifts
REGULAR WORKING DAYS: The regular WHEN TRAVEL TIME COMPENSABLE:

working days of covered employees shall not be
more than five days in a workweek. The 1. Travel from home to work- refers to ordinary
workweek may begin at any hour and on any work travel but where the worker is made to
day, including Saturday or Sunday, designated work on an emergency call and travel is
by the employer. necessary in proceeding to the workplace,
the time spent on travel is compensable
ART 84. HOURS WORKED 2. Travel that is all in a days work- time spent
by an employee in travel as part of his
SHALL INCLUDE: principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
1. All time during which an employee is
3. Travel away from home- travel that keeps an
required to be on duty or to be at a
employee away from home overnight.
prescribed workplace; and
2. All time during which an employee is
- Work hours of seamen are governed by
suffered or permitted to work
the same rules as land based employees.
Thus, they must show sufficient proof that
PRINCIPLES IN DETERMINING HOURS said work is actually performed.
WORKED: - Rest Periods of short duration during
working hours shall be considered as
1. All hours are hours worked which the hours worked.
employee is required to give to his
employer, regardless of whether or not such Preliminary activities compensable when
hour are spent in productive labor or involve controlled or required by employer and are
physical or mental exertion; pursued necessarily and primarily for the
2. An employee need not leave the premises of employers benefit,
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
Page 11 of 70
ART 85. MEAL PERIODS differential should be based on his

overtime rate.
MEAL PERIODS
RATIONALE
1. Should not be less than sixty (60) minutes, - it serves as an inducement of employment
and is time-off/non-compensable
2. Under specified cases, may be less than ART 87. OVERTIME WORK
sixty (60) minutes, but should not be less
than twenty (20) minutes an must be with full OVERTIME PAY- Additional compensation for
pay. work performed beyond eight (8) hours within
3. If less than twenty(20) minutes, it becomes the workers 24-hour workday.
only a rest period and is thus considered as
work time 1. 30% of 130% if on a special holiday/rest
day
NOTE: Employee must be completely 2. 25% of regular wage if done on a regular
relieved from duty. Otherwise, it is workday
compensable as hours worked. 3. 30% of 150% if on special holiday AND rest
day
- Mealtime is not compensable EXCEPT in 4. 30% of 200% if on a regular holiday
cases where the lunch period or meal time is
predominantly spent for the employers RATIONALE
benefit or where it is less than 60 - employee is given OT pay because he is made
minutes. to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
- Employees may request that their meal or voluntarily agreed hours of labor he is
period be shortened so that they can leave supposed to do.
work earlier that the previously established
schedule. - As a rule, cannot be waived, as it is
intended to benefit laborers and employees.
REQUISITES : But when the waiver is made in
consideration of benefits and privileges
1. The employees voluntarily agree in writing to which may even exceed the overtime pay,
a shortened meal period and are willing to the waiver may be permitted.
waive the overtime pay for such shortened
meal period; NOTE: OT pay will not preclude payment of
2. No diminution whatsoever in the salary and night shift differential pay.
other fringe benefits of the employees
existing before the effectivity of the - Meal periods during overtime work is not
shortened meal period; given to workers performing overtime for
3. Work does not involve strenuous physical the reason that OT work is usually for a
exertion and they are provided with short period ranging from one to three hours
adequate coffee breaks; and to deduct from the same one full hour
4. The value of benefits is equal with the as meal period would reduce to nothing the
compensation due them for the shortened employees OT work.
meal period
5. OT pay will become due and demandable WORK DAY - the 24-hour period which
after the new time schedule; and commences from the time the employee
6. The arrangement is of temporary duration. regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
ART 86. NIGHT SHIFT DIFFERENTIAL today up to 8 am tom.
NIGHT SHIFT DIFFERENTIAL -Additional - The minimum normal working hours fixed by
compensation of not less than ten percent the Act need not be continuous to
(10%) of an employees regular wage for every constitute the legal working day
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the - Express approval by a superior is not a
workers regular shift. prerequisite to make overtime work
compensable. HOWEVER, written
- If work done between 10 PM and 6 AM is authority after office hours during rest days
overtime work, then the 10% night shift
Page 12 of 70
and holidays are required for entitlement to

compensation.
- The right to OT pay cannot be waived. ART 89. EMERGENCY OVERTIME

Such waiver is contrary to law and public WORK
policy.
WHEN WORKER MAY BE REQUIRED
EXCEPTIONS: TO RENDER OT:
(WNUNCN)
1. When the waiver stipulates higher payment
or rate of OT pay; or W 1. Country is at war or any other
2. Where the contract of employment requires national/local emergency has been
work for more than eight hours of work at declared by the Chief
specified wage per day providing for a fixed Executive/Congress
hourly rate or that the daily wages include N 2. Necessary to prevent loss of
overtime pay. life/property/ in case of actual/impending
emergency in the locality
COMPRESSED WORKWEEK -allowable U 3. There is urgent work to be performed
under the following conditions: on machines, installations, or equipment
1. It is voluntary on the part of the worker in order to avoid serious loss/damage to
2. There will be no diminution of the weekly or the employer or some other causes of
monthly take-home pay and fringe benefits similar nature
of the employees; N 4. Work is necessary to prevent
3. The value of the benefits that will accrue to loss/damage to perishable goods; and
the employees under the proposed schedule C 5. where the completion or continuation
is more than or at least commensurate with of the work started before the eighth
the one-hour OT pay that is due them during hour is necessary to prevent serious
weekdays based on the employees obstruction or prejudice to the business
quantification or operations of the employer.
4. The one-hour OT pay will become due and N 6. when it is necessary to avail of
payable if they are made or permitted to favorable weather or environmental
work on a day not scheduled for work on the conditions where performance or quality
compressed work week of work is dependent thereon
5. The work does not involve strenuous physical
exertion and employees must have
ART 90. REGULAR WAGE
adequate rest periods
5. The arrangement is of temporary duration.
- include the cash wage only, without deduction
on account of facilities provided by the
ART 88. UNDERTIME NOT OFFSET BY employer
OVERTIME CHAPTER II
- Undertime work on any particular day WEEKLY REST PERIOD
shall not be offset by overtime work on
any other day. Permission given to the ART 91. RIGHT TO A WEEKLY REST
employee to go on leave on some other day DAY
of the week shall not exempt the employer
from paying the additional compensation. - Employees should be provided a rest period
of not less than twenty four (24)
RATIONALE consecutive hours after every six (6)
- An employees regular pay rate is lower than consecutive normal work days.
the overtime rate. Offsetting the undertime
hours against the overtime hours would - Employer shall schedule the weekly rest day
result in undue deprivation of the of his employees subject to collective
employees extra pay for overtime work. bargaining agreement. However, the
employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
Page 13 of 70
the employer may so schedule the weekly 4. Holiday Work falls on Scheduled Rest Day -
rest day that meets the employees choice 50% of regular wage
for at least two (2) days a month CHAPTER III
ART 92. WHEN EMPLOYER MAY HOLIDAYS, SERVICE INCENTIVE
REQUIRE WORK ON A REST DAY LEAVES AND SERVICE CHARGES
WHEN EMPLOYEE MAY BE REQUIRED ART 94. RIGHT TO HOLIDAY PAY
TO RENDER WORK ON A REST DAY:
HOLIDAY PAY - A days pay given by law to
1. In case of actual or impending emergencies an employee even if he does not work on a
caused by serious accident, fire, flood regular holiday. It is limited to the ten (10)
typhoon, earthquake epidemic or other regular holidays listed by law.
disaster or calamity, to prevent loss of life or - employee should not have been absent
property or in cases of force majeure or without pay on the working day preceding the
imminent danger to public safety regular holiday
2. urgent work to be performed on the
machinery, equipment or installation to avoid Art. 94(b) refers to regular holidays, special
serious loss which the employer would holidays are taken care of under Art. 93.
otherwise suffer
3. abnormal pressure of work due to special PREMIUM PAY - Additional compensation for
circumstances, where the employer cannot work performed on a scheduled rest day or
ordinarily be expected to resort to other holiday.
measures
4. prevent serious loss of perishable goods
REGULAR HOLIDAYS:
5. nature of work requires continuous operation
for seven days a week
1. New Years Day -January 1
6. work is necessary to avail of favorable
2. Maundy Thursday -Movable date
weather or environmental conditions where
3. Good Friday- Movable date
performance or quality of work depends
4. Araw ng Kagitingan -April 9
upon them
5. Labor Day -May 1
6. Independence Day -June 12
ART 93. COMPENSATION FOR REST 7. National Heroes Day`-Last Sunday of
DAY, SUNDAY OR HOLIDAY WORK August
8. Bonifacio Day-November 30
- this article does not prohibit a stipulation in 9. Christmas Day-December 25
the CBA for higher benefits 10. Rizal Day-December 30
SPECIAL HOLIDAYS Note: Compensable whether worked or

unworked.
1. All Saints Day -November 1
2. Last Day of the Year-December 31 DOUBLE HOLIDAY PAY
3. And all other days declared by law or
ordinances to be a special holiday or non- 1. 200% of the basic wage provided, he works
working day on that day and was present or on leave
with pay on the preceding workday. If
NOTE: worked = regular wage plus 30% on leave without pay, rate still applies if
premium pay leave is authorized.
not worked = none 2. 400% if he worked as per DOLE Memo if
there are 2 regular holidays in one day eg.
ADDITIONAL COMPENSATION FOR April 9 and Good Friday. Provided the
WORK ON A REST DAY, SUNDAY OR employee worked on the day prior to the
HOLIDAY WORK: regular holiday or on leave with pay or on
authorized absence.
1. Work on a scheduled rest day - 30% of 3. If there are two succeeding holidays eg.,
regular wage Maundy Thursday and Good Friday, the
2. No regular workdays and rest days -30% of employee must be present the day before
regular wage for work on Sundays & the scheduled regular holiday to be entitled
Holidays to compensation to both otherwise, he must
3. Work on Special Holidays -30% of regular work on the first holiday to be entitled to
wage holiday pay on the second regular holiday.
Page 14 of 70
1. 85% for all covered employees to be equally

distributed among them
2. 15% for management (may answer for
REGULAR SPECIAL losses and breakages or distributed to
HOLIDAY HOLIDAY management)
- compensable even - not compensable if - If collection of service charges is abolished,

if unworked subject unworked the share of covered employees shall be
to certain conditions considered integrated in their wages on
the basis of the average monthly share of
- limited to the 10 - not exclusive since each employee for the past 12 months
enumerated by the law may provide for immediately preceding the abolition.
LC other special
holidays
TITLE II
- rate is twice the - rate is 130% if WAGES
regular rate if worked
worked CHAPTER I
PRELIMINARY MATTERS
ART 95. RIGHT TO SERVICE
INCENTIVE LEAVE ART 97. DEFINITION
SERVICE INCENTIVE LEAVE (SIL) - Five (5) WAGE - the remuneration or earnings,
days leave with pay for every employee who has however designated, capable of being
rendered at least one (1) year of service. expressed in terms of money, whether fixed or
ascertained on a time, task, piece, or
commission basis or other method or calculating
BUT DOES NOT APPLY TO THOSE the same, which is payable by an employer to
WHO ARE: an employee under a written or unwritten
contract of employment for work done or to be
1. already enjoying the said benefits; or done or for services rendered or to be rendered
2. enjoying vacation leave with pay for at least and includes the fair and reasonable value of
5 days board, lodging, or other facilities customarily
3. those employed in establishments regularly furnished by the employer to the employee.
employing less than 10 employees
4. those employed in establishments exempted FAIR DAYS WAGE FOR A FAIR DAYS
from granting this benefit by the Secretary of LABOR - if there is no work performed by the
Labor. employee, there can be no wage or pay unless
the laborer was able, willing, and ready to work
ONE (1) YEAR OF SERVICE.- service within but was prevented by management or was
12 months, whether continuous or broken, illegally locked out, suspended or dismissed.
reckoned from the date the employee started
working including authorized absences and paid WAGE SALARY
regular holidays unless the number of working
day in the establishment as a matter of practice
- compensation for - denotes higher
or policy, or provided in the employment contract
manual labor degree of
is less than 12 mos.
employment
- SIL is commutable i.e., convertible to
- Not subject to - subject to
cash- the cash equivalent is aimed
execution execution (Gaa
primarily at encouraging workers to work
vs. CA)
continuously and with dedication to the
company.
FACILITIES shall include all articles or
ART 96. SERVICE CHARGES services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
TO BE DISTRIBUTED TWICE A MONTH
employer or necessary to the conduct of the
AND AT THE RATE OF: employers business.
Page 15 of 70
1. based on an express policy, or

2. has ripened into practice over a long period
FACILITIES SUPPLEMENTS of time, and the practice is consistent and
deliberate.
- Are items of - Constitute extra 3. It is not due to an error in the construction
expense necessary remuneration or /application of a doubtful or difficult question
for the laborers and special privileges or of law.
his familys benefits given to or
existence and received by the - But even in cases of error, it should be
subsistence laborers over and shown that the correction is being done
above their ordinary soon after the discovery of the error.
earnings wages
BONUS - A supplement or employment
- part of the wage - independent of the benefit given under certain conditions, such as
wage success of the business or greater production or
output. As a rule, it is an amount granted
- deductible from the - not wage voluntarily to an employee for his industry and
wage deductible loyalty which contributed to the success and
realization of profits of the employers business.
ART. 98. APPLICATION OF TITLE Therefore, from a legal point of view, it is not a
demandable and enforceable obligation.
Unless, it was promised to be given without any
This Title shall not apply to the conditions imposed for its payment, as such, it is
following: deemed part of the wage.
1. household or domestic helpers 13TH MONTH PAY (OR ITS EQUIVALENT)
2. homeworkers engaged in needle-work -additional income based on wage required by
3. workers employed in any establishment P.D. 851 which is equivalent to 1/12 of the total
duly registered with the National Cottage basic salary earned by an employee within a
Industry calendar year.
4. Workers in any duly registered cooperatives - may be given anytime but not later than Dec.
24
CHAPTER II COVERAGE:
MINIMUM WAGE RATES - All rank-and-file employees regardless of their
designation or employment status and
irrespective of the method by which their wages
ART 100. PROHIBITION AGAINST are paid, are entitled to this benefit, provided,
ELIMINATION OR DIMUNITION OF that they have worked for at least one (1)
BENEFITS month during the calendar year.
LEGAL REQTS. BEFORE FACILITIES FORMS:

CAN BE DEDUCTED FROM THE
EMPLOYEES WAGES: 1. Christmas bonus
2. midyear bonus
1. Proof that such facilities are customarily 3. profit sharing payments; and
furnished by the trade ; 4. other cash bonuses amounting to not less
2. Voluntarily Accepted in writing by the than 1/12 of its basic salary.
employee
3. Charged at Fair & Reasonable Value - Difference of opinion on how to compute the
13th month pay does not justify a strike
THE NON-DIMINUTION RULE -the benefits
being given to employees cannot be taken back - It must always be in the form of legal tender
or reduced unilaterally by the employer because . Free rice, electricity cash and stock
the benefit has become part of the employment dividends, COLA not equivalent
contract, written or unwritten.
The rule is applicable if it is shown that

the grant of the benefit is:
Page 16 of 70
2. necessary because of special

ART 101. PAYMENT BY RESULTS circumstances; or
3. as stipulated in the CBA
CATEGORIES OF PIECE-RATE
WORKERS:
ART 103. TIME OF PAYMENT
1. those who are paid piece rates as
prescribed in Piece Rate Orders by the WHEN TO PAY:
DOLE - at least once every two (2) weeks or twice a
2. Those who are paid output rates which are month at intervals not exceeding sixteen
prescribed by the employer and are not yet (16) days
approved by the DOLE
- force majeure or other
WORKERS PAID ON PIECE-RATE BASIS - circumstances beyond the
shall refer to those who are paid a standard employers control, payment must be
amount for every piece or unit of work produced made immediately after such
that is more or less regularly replicated, without occurrence have ceased.
regard to the time spent in producing the same.
ART.104. PLACE OF PAYMENT
BENEFITS PAYABLE TO PIECE-RATE
WORKERS: WHERE TO PAY:
- Shall be made at or near the place of
1. Applicable statutory minimum daily rate; undertaking,
2. Yearly service incentive leave of five days
with pay; EXCEPTIONS:
3. Night shift differential pay
4. Holiday pay 1. When payment cannot be effected at or near
5. Meal and rest periods the place of work by reason of deterioration
6. OT pay (conditional) of peace and security
7. Premium pay (conditional) 2. When the employer provides for free
8. 13th month pay transportation to the employees back and
9. other benefits granted by law, individual or forth;
collective bargaining agreement or company 3. And under analogous circumstances
policy or practice.
- payment of wages in bars, night or day
CHAPTER III clubs, massage clinics or similar
PAYMENT OF WAGES establishments are prohibited except for the
workers therein.
ART 102. FORMS OF PAYMENT
PAYMENT THRU BANKS:
EMPLOYER CANNOT PAY HIS
WORKERS BY MEANS OF: REQUISITES :
1. promissory notes 1. There must be written permission of the

2. vouchers majority of the employees concerned in an
3. coupons establishment;
4. tokens 2. The establishment must have 25 or more
5. tickets employees; and
6. chits 3. The bank must be located within one
7. or any object. kilometer radius to the bank from the
location of the establishment
GENERAL RULE:
- payment by legal tender - payment through the ATM is allowed
EXCEPTIONS:
- checks or money orders may be paid if:
1. the same is customary on the date of

effectivity of the LC;
Page 17 of 70
connected with the performance of the work

ART 105. DIRECT PAYMENT OF except as to the results thereof;
WAGES 2. the contractor or subcontractor has
substantial capital or investment; and
TO WHOM PAID 3. the agreement between the principal and
contractor or subcontractor assures the
- wages shall be paid directly to the workers
contractual employees entitlement to all
to whom they are due.
labor and occupational safety and health
standards, free exercise of the right to self-
EXCEPTIONS: organization, security of tenure and social
a. in case of force majeure/special and welfare benefits.
circumstances, payment may be made
through another person under written - Substantial capital need not be coupled
authority where the worker has died, the with investment in tools or equipment.
b. employer may pay the wages of the This is clear from the use of the conjunction
deceased worker to the heirs of the latter, or.
through the Secretary of Labor or his
representative, without the necessity of
JOB LABOR ONLY
intestate proceedings, after the heirs have
CONTRACTING CONTRACTING
executed an affidavit attesting to their
relationship to the deceased and the fact
1. No E- E 1. Employer is treated
that they are his heirs to the exclusion of all
relationship exist as direct employer
others
between of the person
employer and the recruited in all
ART 106. CONTRACTOR OR contractors instances
SUBCONTRACTOR employee except
when the
LABOR ONLY CONTRACTING - where the contractor or
person supplying workers to an employer does subcontractor
not have substantial capital or investment in fails to pay the
the form of tools, equipment, machineries, work wages of his
premises, among others, and the workers employees
recruited and placed by such persons are
performing activities which are directly related to 2. liability is limited 2. liable to all rights
the principal business of such employer. to unpaid wages duties and liabilities
and other labor under labor
INDEPENDENT CONTRACTOR - one who standards standards laws
exercises independent employment and violations including the right
contracts to do a piece of work according to his to self- organization
own methods and without being subject to
control of his employer except as to the result
thereof. 3. Permissible 3. Prohibited by law
- A mere statement in a contract with a 4. Contractor has 4. Contractor has no

company that laborers who are paid substantial capital substantial capital/
according to the amount and quality of work or investment investment
are independent contractors does not
change their status as mere employees
WORKING CONDITIONS - Refers to the
in contemplation of labor laws.
terms and circumstances affecting the
employment of an employee, including policies,
REQUISITES FOR A CONTRACTING programs and regulations governing his
OR SUBCONTRACTING TO BE : employment status, work, and work
relationships. They are, as a rule, determined by
1. where the contractor or subcontractor the employer.
carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner ART. 110. WORKER PREFERENCE IN
and method and free from the control and CASE OF BANKRUPTCY
direction of the principal in all matters
Page 18 of 70
- This Article did not sweep away the

overriding preference accorded under the
scheme of the Civil Code to tax claims of the ART 113. WAGE DEDUCTION
government.
ALLOWABLE DEDUCTIONS:
- just a preference, must yield to special
preferred credit, e.g. secured creditors WITH EMPLOYEES CONSENT:
- The formal declaration of insolvency or
1. SSS Payments
bankruptcy or a judicial liquidation of the
2. MEDICARE
employers business is a condition sine
3. Contributions to PAG-IBIG Funds
qua non to the operation of the preference
4. value of meals and others
accorded to workers under Art. 110.
5. payments to third persons with employees
consent
6. deduction of absences
CHAPTER IV
PROHIBITIONS REGARDING WAGES W/OUT EMPLOYEES CONSENT:
ART 112. NON-INTERFERENCE IN 1. Workers insurance acquired by the employer

DISPOSAL OF WAGES 2. Union Dues, where the right to check-off has
been recognized by the employer
3. Cases where the employer is authorized by
In relation to the Civil Code:
law or regulations issued by the Secretary of
Labor
Art. 1705. The laborers wages shall be paid in
4. debts of the employee to the employer which
legal currency.
have become due and demandable
Art. 1706. Withholding of the wages except for
a debt due, shall not be made by the employer
Art. 1707. The laborers wages shall be a lien ART 114. DEPOSITS FOR LOSS OR
on the goods manufactured or the work done. DAMAGE
Art. 1708. The laborers wages shall not be
subject to execution or attachment except for - Deposits for Loss or Damage to tools,
debts incurred for food, shelter, clothing, and materials and equipment supplied by the
medical attendance. employer shall not be made, EXCEPT
Art. 1709. The employer shall neither seize nor when the trade, occupation or businesses of
retain any tool or other articles belonging to the the employer recognizes, or considers the
laborer. practice of making deductions or requiring
deposits necessary or desirable.
PROHIBITIONS REGARDING WAGES:
REQUISITES FOR DEDUCTION FOR
1. Payment of wages with less frequency than LOSS OR DAMAGE :
once (1) a month.
2. Limitations/Interference by the employer 1. employee clearly shown responsible
with the employees freedom to dispose of 2. opportunity to show cause to show why
his wages. deduction should not be made
3. Forcing, Compelling/Obliging employees to 3. deduction is fair and reasonable and shall
purchase merchandise , commodities or not exceed the actual loss or damage
other properties from the employer or from 4. does not exceed 20% of the employees
any other person, or to make use of any wages in a week.
store or service of such employer or any
other person CHAPTER V
4. Withholding of wages
5. Deduction of wages as consideration of a
WAGE STUDIES, WAGE
promise of employment or retention in AGREEMENTS AND WAGE
employment DETERMINATION
6. Refusal to pay/ Reduction of wages and
benefits, discharge/ discrimination against ART 122. CREATION OF THE
any employee as retaliatory measures REGIONAL TRIPARTITE WAGES AND
against any employee who has filed any PRODUCTIVITY BOARDS
complaint or instituted any proceedings
against his employer
Page 19 of 70
elimination or severe contraction of intentional

quantitative differences in wage or salary rates
WHO MAY SET MINIMUM WAGE: between and among employee groups in an
establishment as to effectively obliterate the
1. Regional Tripartite Wages and Productivity distinctions embodied in such wage structure
Board based on skills, length of service or other logical
2. Congress bases of differentiation.
MINIMUM WAGE - The lowest wage rate fixed CORRECTING WAGE DISTORTION
by law that an employer can pay his employees.
Unionized Establishment
ART. 123 WAGE ORDER
1. Negotiate to correct the distortion.
WAGE ORDER an order issued by the 2. Any dispute arising therefrom should be
Regional Board whenever the conditions in the resolved through grievance procedure under
region so warrant after investigating and their CBA.
studying all pertinent facts and based on the 3. If the dispute remains unresolved, through
standards and criteria prescribed by the LC, the voluntary arbitration.
Regional Board proceeds to determine whether
to issue the same or not. Establishments without Unions
EFFECTIVITY of a wage Order it shall take 1. The employers and workers shall endeavor
effect after 15 days from the its complete to correct the distortion.
publication in at least one newspaper of general 2. Any dispute arising therefrom shall be
circulation in the region. settled through the NCMB and
3. If it remains unresolved after 10 days of
FREQUENCY of a wage order - Wage Order conciliation, it shall be referred to the NLRC.
issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no - Wage distortion is non- strikeable.
petition for wage increase shall be entertained
during said period. EXCEPTION: When Is the employer legally obliged to try &
Congress itself issues a law increasing wages. correct a wage distortion?
It appears so. Article 124 of the Code
ART 124. STANDARDS/CRITERIA FOR provides that the employer and the union shall
MINIMUM WAGE FIXING negotiate to correct the distortions. If there is
no union, the employer and the workers shall
endeavor to correct such distortions.
FACTORS FOR DETERMINING
REGIONAL MINIMUM WAGE RATES
Must the previous pay gaps be
(DACNNIPFEE)
restored?
While that is the aim, it need not
1. Demand for living wages;
necessarily be restored to the last peso. An
2. Wage Adjustment vis-a vis the consumer
appreciable differential, a significant pay gap
price index;
should suffice as correction of the distortion.
3. Cost of living and changes or increases
therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in the CHAPTER VII
countryside; ADMINISTRATION AND
6. Improvements in standards of living; ENFORCEMENT
7. Prevailing wage levels;
8. Fair Return of the capital invested and ART. 128. VISITORIAL AND
capacity to pay of employers;
ENFORCEMENT POWER
9. Effects on Employment Generation and
Family Income;
10. Equitable Distribution of Income & Wealth ART. 129. RECOVERY OF WAGES,
along the imperatives of economic and SIMPLE MONEY CLAIMS AND OTHER
social development BENEFITS
WAGE DISTORTION - situation where an - Under Art. 129, the Regional Director is
increase in prescribed wage rates results in the empowered through summary proceeding
Page 20 of 70
and after due notice, to hear and decide - as may be necessary in aid of his
cases involving recovery of wages and other visitorial and enforcement powers
monetary claims and benefits, including
legal interests.
REQUISITES : ART 128 ART 129
1. The claim is presented by an employee or 1. Visitorial and 1. Power of the

person employed in domestic or household enforcement Regional Director or
service or househelper; power of the any duly authorized
2. The claim arises from employer-employee Secretary of hearing officers to
relations; Labor /his duly hear and decide
3. The claimant does not seek reinstatement; authorized matters involving
and representatives the recovery of
4. The aggregate money claim of each exercised through wages, upon
employee or househelper does not exceed routine complaint of any
P5, 000.00 inspections of interested party
establishments
- Access to employers records and
premises 2. requires the 2. E-E relationship not
the day/night whenever work is being existence of E-E necessary since it
undertaken therein Relationship should not include a
includes the right to copy therefrom, claim for
to question any employee & investigate reinstatement
any fact, condition or matter which may
be necessary to determine violations or 3. No limit as to 3. Aggregate claim of
which may aid in the enforcement of the amount of claim each complainant
Code and of any labor law, wage order, does not exceed
or rules and regulations P5,000
- Issue Compliance Orders (ART. 128) 4. Appeal is with 4. Appeal with NLRC;
based on the findings of labor Sec.of Labor ; period of appeal is
employment and enforcement officers or period of appeal 5 calendar days
industrial safety engineers made in the is 10 calendar
course of inspection days
- Issue Writs of Execution (ART. 128) 5. Person exercising 5. The power is

for the enforcement of orders the power is the vested upon a
except in cases where the employer Sec. Of Labor or regional director or
contests the findings of the said labor any of his duly any duly authorized
officers and raises issues supported by authorized hearing officer of
documentary proofs which were not representatives the DOLE.
considered in the course of inspection. who may or may
not be a regional
- Order Work Stoppage/Suspension of director
Operations
when non-compliance with the law or
implementing rules and regulations TITLE III
poses grave & imminent danger to the WORKING CONDITIONS FOR
health and safety of the workers in the
workplace.
SPECIAL GROUP OF EMPLOYEES
- Conduct Hearings within 24 hours
to determine whether an order for CHAPTER I
stoppage of work/suspension of EMPLOYMENT OF WOMEN
operations shall be lifted or not.
employer shall pay the employees ART 130. NIGHTWORK PROHIBITION
concerned their salaries in case the
violation is attributable to his fault - No woman , regardless of age, shall be
- Require employers to keep and maintain employed or permitted or suffered to work,
Employment Records with or without compensation in any :
Page 21 of 70
1. Industrial undertaking between 10PM-6AM

2. Commercial/Non-Industrial undertaking her childbirth or miscarriage shall be paid a daily
between 12 MN-6AM maternity benefit equivalent to 100% of her
3. Agricultural undertaking at nighttime unless, average daily salary credit for 60 days or 78
she is given a period of rest of not less than days, in case of caesarian delivery.
9 consecutive hours
REQUISITES :
ART 131. EXCEPTIONS
1. Employee notified her employer of her
1. Actual/Impending Emergencies pregnancy of the probable date of her
caused by serious accident, flood, childbirth
typhoon, epidemic or other disasters or 2. Full payment be advanced by the employer
calamity, to prevent loss of life or within 30 days from the filing of the maternity
property, or in cases of force majeure or leave application
imminent danger to public safety 3. That payment of daily maternity benefits
2. Urgent work to be performed on shall be a bar to the recovery of sickness
machineries, equipment or installation, to benefits
avoid serious loss 4. That the maternity benefits shall be paid
3. Work is necessary to prevent serious loss of only for the first four (4) deliveries or
perishable goods miscarriages
4. Where she holds a responsible position of 5. That the SSS shall immediately reimburse
managerial/technical nature/engaged to the employer of 100% of the amount of
provide health and welfare service maternity benefits advanced to the
5. Nature of the work requires the manual skill employee by the employer
and dexterity of women workers & cannot be 6. That if an employee member should give
performed with equal efficiency by male birth or suffer a miscarriage without the
workers required contributions having been remitted
6. Where women workers are immediate family for her by her employer to the SSS, or
members of the family operating the without the latter having been previously
establishment or undertaking notified by the employer of the time of the
7. Analogous cases pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits
ART 132. FACILITIES FOR WOMEN which said employee member would
otherwise have been entitled to.
The Secretary of Labor may require employers
to: - ART 133 (b) subsists, i.e., the maternity
1. Provide seats proper for women and permit leave shall be extended without pay on
them to use the seats when they are free account of illness medically certified to arise
from work or during office hours provided out of the pregnancy, delivery, abortion, or
the quality of the work will not be miscarriage, which renders the woman unfit
compromised; for work , unless she has earned unused
2. To establish separate toilet rooms and leave credits from which such extended
lavatories for men and women and provide leave may be charged.
at least a dressing room for women;
3. To establish a nursery in the establishment; LIMIT OF THE BENEFIT: Applies only for the
4. To determine appropriate minimum age and first four deliveries irrespective of who is the
other standards for retirement or termination father of the children, and may not be availed of
in special occupations such as those of flight in addition to sickness benefit under the Social
attendants and the like Security program.
RA 8187 (PATERNITY LEAVE)

ART. 133 MATERNITY LEAVE
BENEFITS - This law grants paternity leave of seven day
with full pay to all married male employees
MATERNITY LEAVE UNDER THE SSS LAW in the private and public sectors.
A female member, who need not be
legally married, who has paid for at least three - It is available only for the first four
(3) monthly contributions in the 12-month deliveries of the legitimate spouse with
period immediately preceding the semester of whom the husband is cohabiting.
Page 22 of 70
individual or in granting said individual

favorable compensation, terms,
DELIVERY includes childbirth, miscarriage, or conditions, promotions, or privileges;
abortion. or the refusal to grant the sexual favor
results in limiting, segregating or
Purpose: to enable the husband to lend support classifying the employee which in
to his wife during the period of recovery and/or anyway would discriminate, deprive or
in the nursing of the newly born child. diminish employment opportunities or
otherwise adversely affect said
CONDITIONS : employee
2. the above acts would impair the
1. he is an employee at he time of the delivery employees rights or privileges under
of his child; existing labor laws or
2. he is cohabiting with his spouse at the time 3. The above acts would result in an
she gives birth or suffers a miscarriage; intimidating, hostile, or offensive
3. he has applied for paternity leave ; and environment (Sec. 3[a], RA No. 7877)
4. his wife has given birth or suffered a
miscarriage ART 136. STIPULATION AGAINST
MARRIAGE
- Paternity leave, if not availed of, is not
convertible to cash. - it shall be unlawful for an employer to require
as a condition for employment or continuation of
WIFE - refers to the lawful wife which means the employment that a woman employee shall not
woman who is legally married to the male get married, or to stipulate expressly or tacitly
employee concerned. that upon getting married a woman employee
shall be deemed resigned or separated, or to
- Where the male employee is already actually dismiss, discharge, discriminate or
enjoying the paternity leave by reason of otherwise prejudice a woman employee merely
any law, decree, executive orders or any by reason of her marriage.
contract, agreement or policy between
employer and employee and the existing
paternity benefit is greater, the greater ART 138. CLASSIFICATION OF
benefit shall prevail; if lesser, the
CERTAIN WOMEN WORKERS
existing benefit shall be adjusted to the
extent of the difference.
- Any woman who is permitted to work or
suffered to work, with or without
compensation, in any night club, cocktail
ART 135. DISCRIMINATION lounge, massage clinic, bar or similar
PROHIBITED establishment, under the effective control or
supervision of the employer for a substantial
- It shall be unlawful for any employer to period of time as determined by the
discriminate against any woman employee Secretary of Labor, shall be considered as
with respect to terms and conditions of an employee of such establishment for
employment solely on account of her sex. purposes of labor and social legislation.
Acts of Discrimination:
CHAPTER II
a. Payment of a lesser compensation for work EMPLOYMENT OF MINORS
of equal value.
b. Favoring a male employee over a female
ART 139. MINIMUM EMPLOYABLE AGE
employee solely on the account of their
sexes.
- Any person between ages 15 and 18 may
be employed in any non hazardous work.
Sexual Harassment in a Work-Related or
Employment Environment :
Exception and condition on the
1. the sexual favor is made as a employment of a child below 15:
condition in the hiring or in the
employment, re-employment or 1. When the child works directly under the sole
continued employment of said responsibility of his/her parents or legal guardian
Page 23 of 70
who employs members of his/her family only 6. indemnity for unjust termination of services
under the following conditions: 7. just causes for termination
a. employment does not endanger the 8. right not to be required to work more than 10
childs life, safety, health and morals hours a day
b. employment does not impair the childs 9. for days vacation each month
normal development 10. to regular wages if employed in industrial or
c. the parent/legal guardian provides the commercial or agricultural undertaking
child with the primary and/or secondary 11. funeral expenses must be paid by employer
education prescribed by DECS if the househelper has no relatives with
2. Where the childs employment or participation sufficient means in the place where the head
in public entertainment or information through of the family lives.
cinema, theater, radio, or television is essential, 12. at least elementary education
provided that: 13. employment certification
a. employment does not involve CHAPTER IV

advertisements or commercials
promoting alcoholic beverages,
EMPLOYMENT OF HOMEWORKERS
intoxicating drinks, tobacco and its by-
products or exhibiting violence; INDUSTRIAL HOMEWORK - a system of
b. There is a written contract approved production under which work for an employer or
by the DOLE; and contractor is carried out by a homeworker at his
c. The conditions prescribed for the home.
employment of minors {above stated}
are met. INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
NONHAZARDOUS WORK OR UNDERTAKING
one where the employee is not exposed to any BOOK FOUR
risk which constitutes an imminent danger to his HEALTH, SAFETY AND SOCIAL
safety and health. WELFARE BENEFITS
HAZARDOUS WORKPLACES:
TITLE I
1. Where the nature of the work exposes the MEDICAL, DENTAL AND
workers to dangerous environmental OCCUPATIONAL SAFETY
elements, contaminants or work conditions;
2. Where the workers are engaged in CHAPTER I
construction work, logging, fire-fighting, MEDICAL AND DENTAL SERVICES
mining, quarrying, blasting, stevedoring,
dock work, deep-sea fishing, and
mechanized farming; ART 156. FIRST-AID TREATMENT
3. Where the workers are engaged in the
manufacture or handling of explosives and FIRST-AID TREATMENT adequate,
other pyrotechnic products; immediate, and necessary medical and dental
4. Where the workers use or are exposed to attention or remedy given in case of injury or
heavy or power-driven machinery or illness suffered by a worker during employment,
equipment; and irrespective of whether or not such injury or
5. Where the workers use or are exposed to illness is work-connected, before a more
power-driven tools, extensive medical and/or dental treatment can
be secured.
CHAPTER III
FIRST AIDER any person trained and duly
EMPLOYMENT OF HOUSEHELPERS certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
RIGHTS OF HOUSEHELPERS: organization accredited by the former.
1. minimum cash wage TITLE II

2. non-assignment to non- household work
EMPLOYEES COMPENSATION AND
3. opportunity for education: if under 18 (cause
of education part of compensation) STATE INSURANCE FUND
4. board/ lodging, medical attendance
5. just and humane treatment
Page 24 of 70
WORKMENS COMPENSATON- A general 3. if the injury is sustained elsewhere, the

and comprehensive term applied to those laws employee must have been executing an
providing for compensation for loss resulting order for the employer
from the injury, disablement or death of a 4. the injury was not due to the employees
workman through industrial accident, casualty or intoxication, willful intention to injure or kill
disease. himself or another, notorious negligence or
otherwise prohibited under this Title.
COMPENSATION - Money relief afforded
according to the scale established under the SICKNESS - Any illness definitely accepted as
statute as differentiated from compensatory an occupational disease listed by the
damages recoverable in an action at law for Commission or any illness caused by
employment subject to proof that the risk of
breach of contract or for tort. contracting the same is increased by working
conditions.
WORKMENS EMPLOYEES Conditions for an occupational disease

COMPENSATION COMPENSATION and the resulting disability or death to be
ACT LAW compensable :
1. There is a 1. no presumption of 1. The employees work must involve the risk
presumption of compensability described therein
compensability 2. The disease was contracted as a result of
the employees exposure to the described
2. there is a 2. no presumption of risks;
presumption of aggravation 3. The disease was contracted within a period
aggravation of exposure and under such other factors
necessary to contract it;
3. there is a need for 3. no need for the 4. There was no notorious negligence on the
the employer to employer to part of the employee
controvert the controvert
claim within 14 DEATH - Loss of life resulting from injury
days otherwise or sickness
he is deemed to
have waived the DISABILITY -Loss or impairment of a physical
right or mental function resulting from injury or
sickness.
4. payment of 4. payment of
compensation compensation DIRECT PREMISES RULE as a general
made by the made by SSS/GSIS rule, the accident should have occurred at the
employer through the State place of work to be compensable
Insurance Fund
EXCEPTIONS TO THE DIRECT
PREMISES RULE
ART 164. DEFINITION OF TERMS.
1. INGRESS- EGRESS/ PROXIMITY RULE-
INJURY - Any harmful change in the human when the employer is about to leave or
organism from any accident arising out of and in about to enter the premises of the employer
the course of employment. by way of the customary or exclusive means
of ingress or egress.
GROUNDS FOR AN INJURY TO BE
COMPENSABLE 2. GOING TO OR COMING FROM WORK-
when the injury occurred when the
1. the employee must have been injured at the employee is proceeding to or from his work
place where the work requires him to be on the premises of the employer
2. the employee must have been performing must be a continuing act and has not
his official functions diverted therefrom by any other activity
and he has not departed from his usual
Page 25 of 70
route to or from his workplace and if the

employee is on a special errand, it must ART 170. EFFECTIVE DATE OF
have been official and in connection with COVERAGE
his work.
- The employer is covered compulsorily from
3. EXTRA-PREMISES RULE (or the shuttle first day of operation and the employee from
bus rule) where the company provides the the first day of employment
means of transportation in going to or
coming from the place of work is liable to the ART 172. LIMITATIONS OF LIABILITY
injury sustained by the employees while on
board said means of transportation. - NO COMPENSATION can be obtained if the
injury, death or disability is a result of the
4. SPECIAL ERRAND RULE injury employees:
sustained outside the company premises is
compensable if his being out is covered by 1. Intoxication;
an office order or a locator slip or a pass for 2. Willful intention to injure or kill himself or
official business. another;
3. Notorious negligence; or
5. DUAL PURPOSE DOCTRINE allows 4. Unless otherwise provided by the LC
compensation where a special trip would
have to be made for the employer if the NOTORIOUS NEGLIGENCE deliberate act
employee had not combined the service for of the employee to disregard his own personal
the employer with his own going or coming safety.
trip.
Is death through suicide compensable ?
6. SPECIAL ENGAGEMENT RULE covers As a rule NO. However as held in NAESS
field trips, outings, intramurals and picnics vs. NLRC, the supreme court ruled that a self
when initiated or sanctioned by the employer inflicted death could be compensable if :
7. POSITIONAL AND LOCAL RISKS 1. by agreement of the parties

DOCTRINE If an employee by reason of 2. The suicide/death is caused by a work
his duties is exposed to a special or peculiar related or compensable illness or
danger from the elements, that is, one disease.
greater than that to which other persons in
the community are exposed and an ART 173. EXTENT OF LIABILITY
unexpected injury occurs, the injury is
compensable - Simultaneous recovery under the Labor
Code and the Civil Code cannot be made.
8. FORCE MAJEURE OR AN ACT OF GOD- The action is selective and the employee
when one in the course of his employment is may either choose to file the claim under
reasonably required to be at a particular either. But once the election is made, the
place at a particular time and there meets an claimant cannot opt for the other remedy.
accident although one which any other
person then and there present would have - Simultaneous recovery under the LC and
met irrespective of his employment. the SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
CHAPTER II since PD 1921 has lifted the ban on
COVERAGE AND LIABILITY simultaneous recovery.
ART 168. COMPULSORY COVERAGE STATE INSURANCE FUND: all covered

employers are required to remit to a common
- ECL applies to all employers, public or fund a monthly contribution equivalent to one
private, and to all employees, public or percent of the monthly salary credit of every
private including casual, emergency, covered employee. The employee pays no
temporary, or substitute employees. contribution to the fund. Any agreement to the
contrary is prohibited.
- Every employee is covered who is not over
60 years over 60 years of age or over 60
years of age if he had been paying CHAPTER VI
contributions prior to the age of 60 DISABILITY BENEFITS
Page 26 of 70
a. Illegitimate children and legitimate

DISABILITY CATEGORIES: descendants
b. parents, grandparents, grandchildren
TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not exceeding 120 days
BOOK FIVE
LABOR RELATIONS
PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous TITLE I
period exceeding 120 days POLICY AND DEFINITIONS
PERMANENT PARTIAL - if as a result of the ART 211. DECLARATION OF POLICY

injury or sickness, the employee suffers a
permanent partial loss of the use of any part of LABOR RELATIONS LAW - Concerned with
his body. the stabilization of relations of employer and
employees and seeks to forestall and adjust
DEATH BENEFITS grievances through - the encouragement of
- The System shall pay to the primary collective bargaining and the settlement of labor
beneficiaries upon the death of the covered disputes through conciliation, mediation and
employee an amount equal to his monthly arbitration.
income benefit, plus ten percent thereof for
each dependent child, but not exceeding - Absent an employer-employee relation,
five, beginning with the youngest and there is no labor relations to speak of.
without substitution. The income benefit
shall be guaranteed for five years. PARTIES TO LABOR RELATIONS
CASES:
DEPENDENTS: 1. The employees organization,
2. management, and
1. the legitimate, legitimated, legally adopted or 3. the public
acknowledged natural child who is
unmarried, not gainfully employed and not - The public is always to be considered in
over 21 years of age or over 21 years of disputes between labor and capital, and it
age provided that he is incapable of self- ahas been held that the rights of the
support due to a physical or mental defect general public are paramount.
which is congenital or acquired during
minority - Labor relations policy under the LC is
2. legitimate spouse living with the employee embodied in Section 3 Article XIII of the
3. the parents of said employee wholly 1987 Constitution which guarantees to all
dependent upon him for regular support workers their right among others to self-
organization, collective bargaining and
BENEFITS negotiations, peaceful land concerted
activities including the right to strike in
1. for life to the primary beneficiaries, accordance with law, and to participate in
guaranteed for five years policy and decision making processes
2. for not more than 60 months to the affecting their rights and benefits as may be
secondary beneficiaries in case there are no provided by law.
primary beneficiaries
3. in no case shall the total benefit be less that
P 15, 000.00 ART. 212. DEFINITIONS
THE BENEFICIARIES ARE: LABOR DISPUTE INCLUDES:
PRIMARY BENEFICIARIES 1. any controversy or matter concerning terms
a. Dependent spouse until he remarries or conditions of employment or
b. dependent children ( legitimate, legitimated, 2. the association or representation of persons
natural born or legally adopted) in negotiating, fixing, maintaining, charging
or arranging the terms and conditions of
SECONDARY BENEFICIARIES employment, regardless of whether the
Page 27 of 70
disputants stand in the proximate relation of 1. for collective bargaining; and

employer and employee. 2. for mutual aid and protection.
EMPLOYEE- shall not be limited to the TYPES OF LABOR DISPUTES

employees of a particular employer.
1. Labor Standards Disputes :
- it shall include any individual whose a) compensation (underpayment of minimum
work has ceased: as a result of or in wage)
connection with any current labor b) benefits ( nonpayment of holiday pay,
dispute; or because of unfair labor overtime pay)
practice c) working conditions ( unrectified working
hazards)
- If he has not obtained any other:
1. Substantially equivalent and 2. Labor Relations Disputes
2. Permanent employment a) organizational right dispute/unfair labor
practice (coercion, restraint or interference
MANAGERIAL EMPLOYEE - is one who is in unionization efforts)
vested with powers or prerogatives to lay down b) representation disputes
and execute management policies and /or to c) bargaining disputes ( refusal to bargain )
hire, transfer, suspend, lay-off, recall, discharge, d) contract administration or personnel policy
assign or discipline employees. disputes (noncompliance with CBA
provisions)
SUPERVISORY EMPLOYEES are those e) employment tenure disputes
who, in the interest of the employer, effectively f) ( non regularization of employees)
recommend such managerial actions if the
exercise of such authority is not merely routinary PARTIES TO A DISPUTE:
or clerical in nature but requires the use of 1. Primary Parties employer, employees,
independent judgment. union
2. Secondary Parties voluntary arbitrator,
WORKERS ASSOCIATION - any association agencies of DOLE (BLR, NLRC, VAC, Sec.
of workers organized for the mutual aid and Of Labor, Office of the President)
protection of its members or for any legitimate
purpose other than collective bargaining. CONSULTATION ON POLICIES OF
MANAGEMENT AND OF THE EMPLOYER
INDEPENDENT UNION - any labor - What is needed is only consultation or
organization operating at the enterprise level participation. The employees need not
whose legal personality is derived through an agree.
independent action for registration prescribed
under Art. 234. It may be affiliated with a 1. the last say is still with the management
federation, national or industry union, in which 2. it is still the management prerogative that
case it may also be referred to as an affiliate. prevails
NATIONAL UNION/FEDERATION - any labor - If there is no labor union, then
organization with at least 10 locals/chapters or consultation should be made with the labor
affiliates each of which must be a dully certified management council.
or recognized collective bargaining agent.
- If the employees were not given the right to
LEGITIMATE WORKERS ASSOCIATION participate, then they could file with the NLRC
any workers association as defined herein a grievance.
which is duly registered with the Department of
Labor.
LABOR ORGANIZATIONS - Any union or

association of employees which exists in whole
or in part for the purpose of collective bargaining
or of dealing with employees concerning terms
and conditions of employment.
PURPOSES OF LABOR TITLE II

ORGANIZATIONS: NATIONAL LABOR RELATIONS
COMMISSION
Page 28 of 70
1. Cases certified to it for compulsory

CHAPTER I arbitration by the Secretary of Labor under
Art. 263;
CREATION AND COMPOSITION 2. Injunction cases under Art. 218 and 264;
and
ART. 213. NATIONAL LABOR 3. Contempt cases.
RELATIONS COMMISSION
TRIPARTISM
- Five (5) divisions of NLRC.
CASES WERE THE NLRC HAS
- Three (3) sectors are represented in the
composition of the NLRC. APPELLATE JURISDICTION:
- each division (3 commissioners) will
have representative from the 1. Cases decided by labor arbiters under
following : Art 217b and Sec 10 RA 8012(Migrant
Workers Act)
1. Choice of the Sec. Of Labor coming 2. Cases decided by the Regional Offices
from the public sector of DOLE in the exercise of its
2. labor adjudicatory function under Art 129 of
3. employer and management sector the Labor Code
THE NLRC ONLY SITS EN BANC FOR

QUALIFICATIONS OF THE CHAIRMAN
PURPOSES OF:
AND THE COMMISSIONER
1. promulgating rules and regulation
1. must be a member of the Philippine Bar; governing the hearing and disposition of
2. must have been engaged in the practice of cases before any of its divisions and
law in the Philippines for at least 15 years; regional branches, and
3. must have experience or exposure in
handling labor management relations for at 2. formulating policies affecting its
least 15 years; and administration and operations.
4. preferably a resident of the region where he
is to hold office.
- The Commission may only sit en banc for
- The Chairman and Commissioners of the
the determination of policies and NOT for
NLRC are not subject to confirmation by the
purposes of adjudication.
Commission on Appointments
- Petitions for certiorari against decisions
THE QUALIFICATIONS OF EXECUTIVE of the NLRC should henceforth be
LABOR ARBITERS initially filed with the Court of Appeals in
strict observance of the doctrine on the
1. must be members of the Philippine Bar; hierarchy of courts as the appropriate forum
2. must have been engaged in the practice of for the relief desired. The SC noted that the
law in the Philippines for at least 7 years; CA is procedurally equipped to resolve
3. must have experience or exposure in unclear or ambiguous factual finding, aside
handling labor management relations for at from the increased number of its component
least 3 years. divisions. (St. Martin Funeral Homes vs.
NLRC G.R. No. 130866)
TERM OF OFFICE OF THE CHAIRMAN,
COMMISIONERS, AND LABOR - Findings of facts of a labor tribunal are
ARBITERS: accorded the utmost respect by the courts
and are well-nigh conclusive if supported by
- until they reach the age of 65 unless substantial evidence.
removed for causes as provided by law or
become incapacitated to discharge the - Labor cases are not subject to Barangay
function of his office. Conciliation since ordinary rules on
procedure are merely suppletory in
character vis-a- vis labor disputes which are
CASES WERE THE NLRC HAVE
primarily governed by labor laws.
EXCLUSIVE AND ORIGINAL
JURISDICTION: - The failure of the petitioner to file a motion
for reconsideration of the decision of NLRC
Page 29 of 70
before filing a petition for certiorari has in the same to the grievance machinery and
certain instances been held not to be a fatal voluntary arbitration.
omission.
- The labor arbiter has jurisdiction over the
CHAPTER II claims of employees against GOCCs if the
POWERS AND DUTIES latter does not have an original charter and
has been incorporated under the
Corporation Code.
ART 217. JURISDICTION OF LABOR
ARBITERS AND THE COMMISSION. - The labor arbiter and the NLRC have no
jurisdiction over claims filed by employees
a. Except as otherwise provided under this against international agencies such as IRRI,
Code the Labor Arbiters shall have original WHO etc.
and exclusive jurisdiction to hear and
decide, within 30 calendar days after the ART 218. POWERS OF THE
submission of the case by the parties for COMMISSION
decision without extension, even in the
absence of stenographic notes, the following
POWERS OF THE NLRC:
cases involving all workers, whether
agricultural or non-agricultural:
a. Rule-making power
1, Unfair labor practice cases; b. Power to issue compulsory
2. Termination disputes; processes
3. If accompanied with a claim for c. Power to investigate matters
reinstatement, those cases that and hear disputes within its
workers may file involving wages, jurisdiction
rates of pay, hours of work and d. Contempt power
other terms and conditions of e. Power to issue injunctions and
employment; Restraining Orders
4. Claims for actual, moral,
exemplary and other forms of REQUISITES BEFORE RESTRAINING
damages arising from employer- ORDER/ INJUNCTION MAY ISSUE:
employee relations;
5. Cases arising from any violation 1. filing of a verified petition
of Art 264 of this Code, including 2. a hearing after due and personal notice has
questions involving the legality of been served in such manner as the
strikes and lockouts; and Commission shall direct, to all known
6. Except claims for Employees persons against whom the relief is sought
Compensation, Social Security, and also to the Chief Executive or other
Medicare and maternity benefits, public officials of the province or city within
all other claims arising from which the unlawful acts have been
employer-employee relations, threatened or committed charged with the
including those of persons in duty to protect the complainants property
domestic or household service, 3. reception at the hearing of the testimony of
involving an amount exceeding witnesses with opportunity for cross-
P5,000.00 regardless of whether examination, in support of the allegations of
accompanies with a claim for the complaint made under oath as well as
reinstatement. testimony in opposition thereto
7.Monetary claims of overseas 4. a finding of fact of the Commission to the
contract workers under the effect that :
Migrant Workers Act of 1995. a) prohibited or unlawful acts have been
threatened and will be committed and
b. The Commission shall have exclusive will be continued unless restrained, but
appellate jurisdiction over all cases no injunction or temporary restraining
decided by Labor Arbiters. order shall be issued on account of any
threat, prohibited, or unlawful act,
c. Cases arising from the interpretation or except against the persons, association
implementation of CBA and those arising or organization making the threat or
from the interpretation or enforcement of committing the prohibited or unlawful
company personnel policies shall be act or actually authorizing or ratifying the
disposed of by the Labor Arbiter by referring same after actual knowledge thereof.
Page 30 of 70
b) That substantial and irreparable injury to 4. NLRC

the complainants property will follow 5. Regional Directors
c) That as to each item of relief to be 6. Med- Arbiters
granted, greater injury will be inflicted
upon complainant by the denial of the Art 219. OCULAR INSPECTION
relief than will be inflicted upon the
defendants by the granting of the relief The Chairman, any Commissioner, labor Arbiter
d) That complainants has no adequate or their duly authorized representatives may, at
remedy at law anytime during working hours:
e) That public officers charged with the
duty to protect complainants property a. Conduct an ocular inspection on
are unable or unwilling to furnish any establishment, building,
adequate protection. ship, place or premises,
5. Posting of a bond including any work, material,
implement, machinery,
REQUISITES BEFORE TRO MAY BE appliance or any object therein;
ISSUED EX PARTE: and
b. Ask any employee. Laborer, or
1. The complainant shall allege that, unless a any person as the case may be
TRO shall be issued without notice, a for any information or date
substantial and irreparable injury to concerning any matter or
complaints property will be unavoidable; question relative to the object of
2. There is testimony under oath, sufficient, is the investigation
sustained, to justify the Commission in
issuing a temporary injunction upon hearing ART. 221. TECHNICAL RULES NOT
after notice ; BINDING AND PRIOR RESORT TO
3. The complainant shall first file an AMICABLE SETTLEMENT
undertaking with adequate security in an
amount to be fixed by the Commission - An amicable settlement of a labor dispute
sufficient to recompense those enjoined for should be approved by the labor arbiter
any loss, expenses or damage caused by before whom the case is pending after
the improvident or erroneous issuance of being satisfied that it was voluntarily entered
such order or injunction, including all by the parties and after having explained to
reasonable costs, together with a them the terms and consequences thereof.
reasonable attorneys fee, and expense of
defense against the granting of any PURPOSE: for the employees protection for the
injunctive relief sought in the same labor arbiter before whom the case is pending
proceeding and subsequently denied by the would be in a better position than just any labor
Commission; and arbiter to personally determine the voluntariness
4. The TRO shall be effective no longer than of the agreement and certify its validity.
20 days and shall become void at the
expiration of said 20 days counted from the RES JUDICATA applies only to judicial or
date of the posting of the bond. quasi-judicial proceedings and not to the
exercise of administrative powers.
- In the absence of service of summons or a
valid waiver thereof, the hearings and ART 222. APPEARANCES AND FEES
judgment rendered by the labor arbiter are
null and void.
APPEARANCE OF NON-LAWYERS
- The procedural and substantial BEFORE THE COMMISSION:
requirements of Art 218 (e) must be strictly
complied with before an injunction may GENERAL RULE: ONLY lawyers can
issue in a labor dispute. appear before the NLRC, or any Labor Arbiter,
EXCEPTIONS : Non-Lawyers can appear ONLY

THE FF. CAN ISSUE INJUNCTIONS/
in the following instances:
TRO IN LABOR DISPUTES
1. if they represent themselves; or
1. President (ART. 263, g) 2. if they represent their organization
2. Secretary of Labor (ART. 263, g) or members thereof; or
3. Labor Arbiters (ART. 217)
Page 31 of 70
3. if he is a duly-accredited member of
the legal aid office duly recognized IS THE PERIOD OF APPEAL
by the DOJ of IBP in cases referred EXTENDIBLE?
thereto by the latter. NO. The period of appeal to cases
decided by the regional Director and the Labor
ATTORNEYS FEES: The maximum amount to Arbiter is NEVER extendible. It is the policy of
be given a lawyer is 10% of the monetary the state to settle expeditiously labor disputes.
benefits awarded to the employees excluding
the award for moral and exemplary damages REQUISITES BEFORE APPEAL TO THE
shall not be included.
NLRC IS DEEMED PERFECTED:
- Moral and exemplary damages and other
benefits that employee receives when he is 1. File a verified memo of appeal within the
working are excluded. required period of appeal;
2. In case of monetary award, the employer
- This article prohibits the payment of should file a bond corresponding to the
attorneys fees only where the same is monetary award excluding awards for moral,
effected through forced contributions from exemplary damages and attorneys fees.
the workers form their own funds as 3. Appeal fee of P110;
distinguished from the union funds. 4. Furnish the other party with a copy of the
memo of appeal (proof of service).
- Where the employer failed to post a bond to

CHAPTER III perfect its appeal, the remedy of the
APPEAL employee is not a petition for mandamus by
a motion to dismiss appeal.
ART. 223. APPEAL - The intention of the lawmakers is to make

the bond an indispensable requisite for the
GROUNDS FOR APPEAL: perfection of an appeal by the employer.
1. If there is prima facie evidence of abuse of - Tardiness of an appeal form the decision of
discretion on the part of the Labor Arbiter or the labor arbiter may be considered as a
Compulsory Arbitrator; mere procedural lapse.
2. If the decision, order or award was secured
through fraud or coercion, including graft EXECUTION PENDING APPEAL:
and corruption; - the decision of the labor arbiter ordering the
3. If made purely on questions of law; reinstatement of a dismissed or separated
4. If serious errors in the findings of facts are employee shall immediately executory
raised which would cause grave or insofar as the reinstatement aspect is
irreparable damage or injury to the concerned and the posting of an appeal
appellant. bond by the employer shall not stay such
execution. There is no need for the arbiter to
PERIODS WITHIN WHICH TO APPEAL: issue a writ of execution on the
reinstatement order as it is self-executory
A. DECISIONS OF THE REGIONAL (Pioneer Texturizing Case).
DIRECTOR:
- within 5 calendar days from receipt of the OPTIONS OF THE EMPLOYER TO IN
order. COMPLYING WITH AN ORDER OF
REINSTATEMENT WHICH IS
B. DECISIONS OF THE LABOR ARBITER: IMMEDIATELY EXECUTORY:
- within 10 calendar days from the receipt of
the decision. 1. He can admit the dismissed employee back
to work under the same terms and
- The appeal must be under oath and must conditions prevailing prior to his dismissal or
state specifically the grounds relied upon separation or to a substantially equivalent
and the supporting arguments. position if the former position is already filled
up.
- Where the 10th day falls on a Saturday, 2. He can reinstate the employee merely in the
Sunday or legal holiday, the appeal may be payroll.
filed on the next business day.
Page 32 of 70
- Failing to exercise any option may be 3. all disputes, grievances or problems arising
compelled under pain of contempt and the from or affecting labor- management
employer may be made to pay instead the relations in all workplaces whether
salary of the employee. agricultural or non- agricultural.
A petition for relief from the decision of CASES WHERE THE BLR HAS NO
the labor arbiter must strictly comply JURISDICTION:
with 2 reglementary periods:
- Those arising from the implementation or
1. The petition must be filed within 60 days interpretation of collective bargaining
from knowledge of the judgment; and agreements which shall be subject of
2. Within a fixed period of 6 months from entry grievance procedure and/or voluntary
of such judgment. arbitration.
- petitions filed beyond said period
will no longer be entertained. INTRA- UNION DISPUTES - includes all
disputes or grievances arising from any violation
APPEAL FROM THE DECISION OF THE of or disagreement over any provision of the
NLRC: constitution and by-laws of a union.
- appeal by certiorari should be filed
with the Court of Appeals(St. Martin - It also includes any violation of the rights
Funerals Home) and conditions of union membership
provided for in the Labor Code.
ART 224. EXECUTION OF DECISIONS,
INTER- UNION DISPUTES - refers to
ORDER, OR AWARDS
questions involving or arising out of a
representation disputes between or among the
- The decision of the Secretary of Labor, the
different unions.
Commission, the Bureau or Regional
Director the Labor Arbiter, the Med-Arbiter
- It also includes all other conflicts which
or the Voluntary Arbitrator shall be final and
legitimate labor, organizations may have
executory after 10 calendar days from
against each other based on any violation of
receipt thereof by the parties.
their rights as labor organizations.
- The foregoing may upon its own initiative or
on motion of any interested party, issue a DETERMINATION OF EMPLOYER-
writ of execution on a judgment within 5 EMPLOYEE RELATIONSHIP:
years from the date it becomes final and
executory. - since the BLR has the original and exclusive
jurisdiction to decide inter alia, all disputes,
- The immediate execution of judgment grievances or problems arising from or
should be undertaken only when the affecting labor-management relations in all
monetary award had been carefully and workplaces. Necessarily, in the exercise of
accurately determined by the NLRC and this jurisdiction over labor-management
only after the employer is given the relations, the Med-Arbiter has the authority,
opportunity to be heard and to raise original and exclusive, to determine the
objections to the computation. existence of an employer-employee
relationship (MY San Biscuits, Inc. v
Laguesma G.R. No. 9511, 22 April 1991).
SPECIAL REQUIREMENT AS TO THE

TITLE III
FILING OF CASES:
BUREAU OF LABOR RELATIONS
A. INVOLVING ENTIRE MEMBERSHIP
ART. 226 BUREAU OF LABOR 1. The complaint must be signed by at
RELATIONS least 30% of the entire membership
of the union.
EXCLUSIVE AND ORIGINAL 2. It must also show exhaustion of
JURISDICTION OF THE BLR: administrative remedies.
1. inter- union conflicts B. INVOLVING A MEMBER ONLY:

2. intra- union conflicts In such case only the affected
Page 33 of 70
member may file the complaint.

- The CBA is more than a contract, it is highly
RE : Imposition of fees by the union impressed with public interest for it is an
does it affect the entire membership? essential instrument to promote industrial
YES. Such being the case, the peace.
complaint should be signed by at least 30% of
the membership of the union. - An unregistered CBA does not bar
certification election.
ADMINISTRATIVE FUNCTIONS OF THE
BLR: ART 233. PRIVILEGE
COMMUNICATIONS
1. The regulation of registration of the labor
unions; - Information and statements made at
2. The keeping of a registry of labor unions; conciliation proceedings shall be treated as
and privileged communication and shall not be
3. The maintenance of a file of CBAs. used as evidence in the Commission.
NATIONAL CONCILIATION AND - Conciliators and similar officials shall not

MEDIATION BOARD: testify in any court or body regarding any
- has absorbed the conciliation, mediation and matters taken up at conciliation proceedings
voluntary arbitration functions of the BLR conducted by them.
(E.O. 126)
TITLE IV
ART. 227. COMPROMISE LABOR ORGANIZATIONS
AGREEMENTS
CHAPTER I
REQUIREMENTS OF A VALID
REGISTRATION AND
QUITCLAIM:
CANCELLATION
1. The quitclaim must be voluntarily arrived at
by the parties; ART. 234. REQUIREMENT OF
2. It must be with the assistance of the Bureau REGISTRATION
of Labor Standards, Bureau of Labor
Relations of any representative of the LABOR ORGANIZATION- A labor
DOLE; and organization is any union or association of
3. The consideration must be reasonable. employees which exists in whole or in part for
the purpose :
- if the compromise agreement was entered - of collective bargaining or
into without the assistance of DOLE, it is - of dealing with employers concerning the
valid and binding between the parties but terms and conditions of employment.
the parties can still go to the NLRC and
repudiate the agreement. PURPOSE OF FORMATION OF LABOR
UNIONS: for securing a fair and just wages and
- if the compromise agreement was entered good working conditions for the laborers; and for
into with the assistance of DOLE, it shall the protection of labor against the unjust
be final and binding between the parties, exactions of capital
EXCEPT:
REQUIREMENTS BEFORE A LABOR
a. in case of non compliance with ORGANIZATION CAN BE REGISTERED
the compromise agreement; or
b. if there is prima facie evidence
WITH THE BUREAU OF LABOR
that the settlement was obtained RELATIONS:
through fraud,
misrepresentation, or coercion 1. Written application verified by the
- in such cases, the NLRC of the courts can Secretary/Treasurer, attested to by the
assume jurisdiction. President;
2. Names of members comprising at least 20%
ART 231. REGISTRY OF UNIONS AND of the employees in the bargaining unit
where it seeks to operate;
FILE OF COLLECTIVE AGREEMENT
Page 34 of 70
3. Non-existence of CBA, otherwise, if one b. supporting the registration

exist, state in the application that it is filed of such applicant federation
within the freedom period. It shall be or national union;
accompanied by the following attachments : 2. The names and addresses of the
a. Registration fee in the amount of companies where the locals or
P50.00; chapters operate and the list of all
b. Names of the officers and their the members in each company
addresses; involved.
c. Minutes of the organizational meetings;
d. List of workers who participated in the Can a local union affiliate with a
organizational meetings; federation? If so, how?
e. Names of all the members and the
number of employees in the bargaining YES. The procedure of affiliation would
unit; depend on whether the union is individually
f. Annual Financial Report ( if the registered or not.
applicant has been in the existence for
at least one year); If the union is independently registered, the
g. Four (4) copies of the constitution and affiliation is by signing a contract of affiliation
by-laws; with the labor union and the registration of such
h. Minutes of the resolution of the contract with the BLR.
constitution and by-laws and the list of
members who participated in the On the other hand, if the union Is not
bargaining unit concerned; and independently registered, affiliation is done by
i. If there is an existing collective the application of the union with the federation
bargaining agreement duly submitted to so it may be issued a charter certificate, to be
the DOLE, a sworn statement that the submitted with the BLR, including the following:
application for registration is filed during 1. Copies of its constitution and by-laws
the last 60 days of the agreement. 2. Statement of the set of officers and
books of accounts, all of which must be
MANDAMUS is the proper remedy for the certified by the Secretary/Treasurer and
unjustified refusal of the Bureau in approving the attested to by the President.
application and the corresponding issuance of a
certificate of registration, it being a ministerial
duty.
Can a union of supervisory employees
affiliate with a national federation of
REASON FOR REQUIREMENT OF labor organizations of rank and file
REGISTRATION it is a condition sine qua non employees ?
for the acquisition of legal personality by labor
organizations, associations or unions, and the YES, provided that:
possession or the rights and privileges granted a. The federation is not actively
by law to legitimate labor organizations involved in union affairs in the
company and
FEDERATION is an association of national b. The rank and file employees are not
unions. directly under the control of the
supervisors
REQUIREMENTS BEFORE A
FEDERATION CAN BE ISSUED A
CERTIFICATE OF REGISTRATION: EFFECTS WHEN A LOCAL UNION
DISAFFILIATE:
Aside from the application, which must be
accompanied with the requirements for IT DEPENDS. If the labor union is
registration of a labor registration, the independently registered, the disaffiliation of
application should also be accompanied by the the union would not affect its being a legitimate
following: labor organization and therefor would continue
1. Proof of affiliation of at least 10 to have the rights and privileges of a legitimate
locals or chapters, each of which labor organization as well as the legal
must be : personality as such.
a. a duly recognized collective
bargaining agent in the
establishment of On the other hand, if the labor union is
not independently registered, upon
Page 35 of 70
disaffiliation, it would cease to be a legitimate The certificate of registration of any legitimate

labor organization and would therefore no longer labor organization shall be cancelled by the BLR
have the legal personality and the rights and if it has reason to believe, after due hearing,
privileges granted by law to legitimate that the said labor organization no longer meets
organization. one or more of the requirements herein
prescribed.
EFFECT OF DISAFFILIATION WITH
EXISTING CBAs: - Appeal may be filed within 15 days from
receipt of the decision to the Secretary of
IT DEPENDS. If the labor union is Labor.
independently registered, existing CBAs would
continue to be valid as the labor organization ART 239. GROUNDS FOR
can continue administering the CBAs. CANCELLATION OF UNION
However, if the labor union is not REGISTRATION.
independently registered, existing CBAs would
no longer be valid as there would no longer be
any labor organization given by law the right to GROUNDS FOR CANCELLATION OF
administer the CBAs. UNION REGISTRATION:
ENTITLEMENT TO UNION DUES IN 1. Misrepresentation, False statement or Fraud

CASE OF DISAFFILIATION: in connection with:
- the adoption or ratification of the
- If the labor union is independently constitution and by-laws or
registered, then the labor organization is amendments thereto,
entitled to the union dues and not the - the minutes of ratification, and
federation from which the labor organization - the list of members who took part in
disaffiliated. the ratification.
2. Failure to submit the document mentioned in
- On the other hand, if the labor union is not the preceding paragraph
independently registered, then union dues - within 30 days from adoption or
may no longer be collected as there would ratification of the constitution and
no longer any labor union who is allowed to by-laws or amendments thereto.
collect such union dues from the employees. 3. Misrepresentation, false statement or fraud
in connection with the:
- A union can affiliate anytime but disaffiliation - election of officers,
can be done only during the freedom period. - minutes of the election of officer and
If not within the freedom period, can be done the list of voters, or failure to submit
only with the consent of the majority of the these documents together with
workers. Provided it is independently - the list of the newly
registered otherwise it loses its personality. elected/appointed officers and their
The exception will only apply if it is not postal addresses
prohibited by the constitution and by-laws of - within 30 days from election
the federation of national union. 4. Failure to submit the annual financial report
to the Bureau
- within 30 days after the closing of
ART 236. DENIAL OF REGISTRATION; every fiscal year and
APPEAL misrepresentation, false entries and
fraud
Decisions of the BLR denying the registration - in the preparation of the financial
of a labor organization is appealable to the report itself;
Secretary of Labor within 10 calendar days from 5. Acting as a labor contractor or engaging in
receipt, on grounds of: the cabo system, or otherwise engaging in
any activity prohibited by law;
a. grave abuse of discretion; and 6. Entering into collective bargaining
b. gross incompetence agreements which provide terms and
conditions of employment below minimum
standard established by law;
ART 238. CANCELLATION OF 7. Asking for or accepting attorneys fees or
REGISTRATION; APPEAL negotiation fees from the employers;
8. Other than for mandatory activities under
this Code, checking off special assessment
Page 36 of 70
or any other fees without duly signed 2. the resolution must have been approved by
individual written authorization of the a majority of all the members
members; 3. the approval must be at a general
9. Failure to submit a list of individual members membership meeting duly called for the
of the Bureau once a year or whenever purpose
required by the Bureau; and
10. Failure to comply with the requirements
under Articles 237 and 238. REQUIREMENTS OF THE LAW WITH
REGARDS TO CHECK-OFFS
REMEDY IN CASE THE BUREAU
SHOULD CANCEL THE REGISTRATION Art. 241(o). Other than for
OF THE UNION: MANDATORY ACTIVITIES under the
- to appeal to the Secretary of Labor within 10 Code.
calendar days on the grounds of:
- NO special assessment, attorneys fees,
1. grave abuse of discretion or registration fees or any other extraordinary
2. gross incompetence on the part of fees may be checked off from any amount
the Bureau due an employee.
- WITHOUT an individual written authorization
- Should the office of the Secretary affirm the duly signed by the employee.
decision of the Bureau, the final remedy is
a petition for certiorari to the SC under The authorization should specifically state
Rule 65, Rules of Court. the:
a. amount
CHAPTER II b. purpose and
RIGHTS AND CONDITIONS OF c. beneficiary of the deduction.
MEMBERSHIP IN A LABOR
ORGANIZATION EXCEPTION to the Requirement of
Individual Written Authorization:
ART. 241. RIGHTS AND CONDITIONS
OF MEMBERSHIP IN A LABOR - The law does not require individual written
authorizations from the employees when it
ORGANIZATION
comes to fees for mandatory activities under
the Labor Code.
REQUIREMENTS IN MAKING SPECIAL
ASSESSMENT CHECK-OFF is a method of deducting from an
employees pay at prescribed period, the
amounts due to the union for fees, fines or
Art. 241(n). No special assessment or other assessment.
extraordinary fees may be levied upon the
In Special Assessment, there must be a written
members of a labor organization: resolution authorized by a majority of the
- UNLESS authorized by a written resolution members at a general meeting called for the
of a majority of all the members at a general purpose.
membership meetings duly called for the
purpose. - Check-off there must be individual written
authorization of the members.
- The secretary of the organization shall
record the minutes of the meeting including: PERSONS WHO ARE PROHIBITED
- the list of all members present, FROM BECOMING MEMBERS OF A
- the votes cast, LABOR ORGANIZATION UNDER THE
- the purpose of the assessment or fees, LABOR CODE:
- The record shall be attested by the 1. Those who have been convicted of a crime
President. involving moral turpitude. (Art. 241(f));
2. Subversives or those engaged in subversive
- Therefore, the REQUIREMENTS when it Activities.
comes to special assessment are as follows:
1. there must be a written resolution
Page 37 of 70
- In general, a union is free to select its own f. to vote on special assessment

members, and no person has an absolute g. to be deducted a special assessment
right to membership in a trade union. only with the members written
authorization.
- The implementing rules require that the 4. Right to Information is the members right
remedies be exhausted within the union to be informed about:
before a complaint for any violation of the a. the organizations constitution and
unions constitution and by-laws may be by- laws
filed. b. the collective bargaining agreement
c. about labor laws
REQUIREMENTS BEFORE A CHECK-
OFF MAY BE DONE: CHAPTER III
RIGHTS OF LEGITIMATE LABOR
- Individual written authorizations of the ORGANIZATIONS
employees are required before a check-off
may be validly done. ART. 242. RIGHTS OF LEGITIMATE
LABOR ORGANIZATIONS
EXCEPTIONS :
1. For mandatory activities provided under RIGHTS OF A LEGITIMATE LABOR

the Code; and ORGANIZATION:
2. When non-members of the union avail
of the benefits of the CBA.
1. Undertake activities for benefit of members
- said non-members may be
2. Sue and be sued
assessed union dues equivalent to
3. Exclusive representative of all employees
that paid by members
4. Represent union members
- only by a Board Resolution
5. Furnished by employers of audited financial
approved by majority of the
statements
members in a general meeting
6. Own properties
called for the purpose
7. Exempted from taxes
NATURE AND PURPOSE OF CHECK-OFF
- to facilitate the collection of dues necessary
EFFECT OF CANCELLATION OF
for the unions life and sustenance. REGISTRATION IN THE COURSE OF
PROCEEDINGS;
GENERAL GROUPINGS OF THE - Where a labor union is a party in a

RIGHTS OF THE UNION MEMBERS: proceeding and later it loses its registration
permit in the course or during the pendency
(Under Art. 241)
of the case, such union may continue still as
a party without need of substitution of
1. Political right is the right of the members to parties, subject however to the
vote and be voted for, subject to lawful understanding that whatever decision may
provisions on qualifications and be rendered therein will only be binding
disqualifications. upon those members of the union who have
2. Deliberative and Decision-Making Right is not signified their desire to withdraw from
the members right to participate in the case before its trial and decision on the
deliberations on major policy questions and merits.
decide them by secret ballot.
3. Rights Over Money Matters is the right of
the members:
TITLE V
a. against excessive fees COVERAGE
b. against unauthorized collection of
contributions or unauthorized ART. 243. COVERAGE AND
disbursements EMPLOYEES RIGHT TO SELF
c. to require adequate records of ORGANIZATION
income and expenses
d. to access financial records

e. to vote on officers compensation
GOVERNMENT GOVERNMENT
Page 38 of 70
OWNED OR OWNED OR
CONTROLLED CONTROLLED 1. schedule of vacation and other leaves
CORPORATIONS CORPORATIONS 2. work assignment of pregnant women
WITH A CHARTER WITHOUT 3. personnel growth and development
CHARTER 4. communication system lateral and vertical
5. provision for protection and safely
1. Employees cannot 1.The GOCC is 6. provision for facilities for handicapped
stage strikes since created under personnel
they are governed Corporation Code, 7. provision for first-aid medical services for
by the Civil then employees are married women
Service Law. They covered by the 8. annual medical/physical examination
are enjoined by Labor Code. 9. recreational, social, athletic and cultural
Civil Service Therefore the activities and facilities (Rules implementing
Memorandum employees have WO 180)
Circular No. 6, the same rights as
under pain of those as employees THE FOLLOWING ARE CONSIDERED NOT
administrative of private NEGOTIABLE :
sanctions, from corporations, one of
staging strikes, which is the right to 1. Those which require appropriation of
demonstrations, stage strikes. funds, such as :
mass leaves, walk- a. increase in salary emoluments and
outs and other other allowance not presently
concerted provided for by law
activities. b. facilities requiring capital outlays
c. car plan
2.Corporations with 2. The GOCC is d. provident fund
original charters created under e. special hospitalization, medical and
cannot bargain with Corporation Code, dental services
the government being governed by f. rice/sugar/other subsidies
concerning the the Labor Code, they g. travel expenses
terms and can bargain with the h. increase in retirement benefits
conditions of their government
employment. concerning the terms 2. Those that involve the exercise of
However, they can and conditions of management prerogatives, such as :
negotiate with the their employment.
government on Thus, they have an - appointments
those terms and unlimited bargaining - promotion
conditions of rights. - assignments/details
employment which - reclassification/upgrading of position
are not fixed by law. - revision of compensation structure
Thus, they have a - penalties imposed as a result of
limited bargaining disciplinary actions
rights. - selections of personnel to attain
seminar, trainings. Study grants
- distribution of work load
- external communication linkages
- Government employees and employees of

3. Can only form, 3. Can form, join or
government-owned and controlled
join or assist Assisi labor
corporations with original charters may
labor organization for
bargain, however, such bargaining power
organization for purposes of CBA,
is limited.
purposes not etc.
contrary to law. RATIONALE : GOCCs INCORPORATED
UNDER THE CORP. CODE ALLOWED TO
ORGANIZE:
1. they are not involved in public service

THE FOLLOWING ARE CONSIDERED 2. terms of employment are not fixed by law
NEGOTIABLE IN GOCC WITH ORIGINAL 3. they are governed by the provisions of the
CHARTER: Labor Code not by the Civil Service Law
Page 39 of 70
- for the purpose of collective bargaining

EMPLOYEES COVERED BY THE RIGHT through representatives of their own choosing
and
TO SELF- ORGANIZATION:
b. To engage in lawful concerted activitiesfor the
- same purpose
1. Commercial - for their mutual aid and protection
2. Industrial
3. Agricultural enterprises, including:
- charitable ART 245. INELIGIBILITY OF
- religious MANAGERIAL EMPLOYEES TO JOIN
- education or ANY LABOR ORGANIZATION; RIGHT OF
- medical institution SUPERVISORY EMPLOYEES.
EMPLOYEES WITH LIMITED RIGHT TO Reason for ineligibility in the collective

SELF- ORGANIZATION: bargaining process, managerial employees are
supposed to be on the side of the employer, to
1. Self- employed act as its representatives, and to see to it that its
2. Without definite employers interests are well protected. The employer is not
3. Ambulant assured of such protection if these employees
4. Intermittent and Itinerant themselves are union members.
5. Rural worker
- they have the right to self-organization but ART. 246.

only for their mutual aid and protection.
THE RIGHT TO SELF-ORGANIZATION
EMPLOYEES WHO ARE NOT SHALL NOT BE ABRIDGED MEANS:
GRANTED THE RIGHT TO SELF- It shall be unlawful for any person to:
ORGANIZATION: restrain,
coerce,
1. Members of the Armed Forces of the discriminate against, or
Philippines, including police officers, unduly interfere
policemen, firemen and jail guards; with employees and workers in their
2. High-level employees exercise of the right to self-organization.
- whose functions are normally (Art. 246)
considered as policy-making or
managerial Any act intended to weaken or defeat the
- whose duties are of a highly confidential right is regarded by law as an offense, which is
or highly technical in nature ( EO 180, technically called unfair labor practice.
sections 3-4)
3. Government employees occupying high
positions
4. Employees of international organizations
with immunities
5. Confidential employees
6. Cooperative members who are also TITLE VI
employees UNFAIR LABOR PRACTICES
- Foreigners validly working in the CHAPTER I

Philippines can form labor organizations, CONCEPT
provided, the same right to form, join or
assist in the formation of labor unions is also
given to Filipinos in their country of origin. ART. 247 UNFAIR LABOR
This embodies the principle of PRACTICES
reciprocity.
NATURE OF UNFAIR LABOR
Extent of the Right to Self-Organization PRACTICES:
a. To form, join and assist labor organizations 1. violate the constitutional right of workers and
employees to self-organization,
Page 40 of 70
2. are inimical to the legitimate interests of both - including the giving of financial or other
labor and management, including their right support to it or its organizers or officers;
to bargain collectively and otherwise deal 5. To discriminate in regard to wages, hours of
with each other in an atmosphere of work, and other terms and conditions of
freedom and mutual respect, employment
3. disrupt industrial peace and - in order to encourage or discourage
4. hinder the promotion of healthy and stable membership in any labor organization .
labor-management relations.
TEST OF DISCRIMINATION:
PRESCRIPTIVE PERIOD FOR FILING
CRIMINAL AND CIVIL CASES FOR ULP: a. whenever benefits or privileges given to one
is not given to the other under similar or
- The prescriptive period of filing ULP cases identical conditions
whether it be civil or criminal is one year b. when directed to encourage or discourage
from the accrual of the ULP act. union membership
- The prescriptive period for the criminal case 6. To dismiss, discharge or otherwise prejudice
is suspended once the administrative case or discriminate against an employee
has been filed and would only continue - for having given or being about to give
running once the administrative case has testimony under this Code;
attained finality. 7. To violate the duty to bargain collectively as
prescribed by this Code;
- HOWEVER: Final judgment in the 8. To pay negotiation or attorneys fees to the
administrative proceedings shall not be union or its officers or agents
binding in the criminal case nor shall be - as part of the settlement of any issue in
considered as an evidence of guilt but collective bargaining or any other
merely as a proof of compliance of the disputes; or
requirements prescribed by the Code. 9. To violate a collective bargaining
agreement. NOTE: violation must be gross
Prerequisite for filing criminal case: and with respect to the economic provision
final judgment in the administrative proceeding of the CBA
finding that ULP has been committed
YELLOW DOG CONTRACT: A
CHAPTER II promise exacted from workers as a
UNFAIR LABOR PRACTICES condition employment that they are not to
belong to, or attempt to foster, a union
OF EMPLOYERS during their period of employment.
ART 248. ULP THAT MAY BE COMMITTED - It is contrary to public policy for it is
BY AN EMPLOYER tantamount to involuntary servitude.
- It is entered into without consideration for
1. To interfere with, restrain or coerce employees waive their right to self-
employees organization
- in the exercise of their right to self- - Employees are coerced to sign
organization; contracts disadvantageous to their
2. To require as a condition for employment family.
that a person or an employee
- shall not join a labor organization or Does Art. 248 (c ) mean that an
- shall withdraw from one to which he employer cannot contract out work?
belongs;
3. To contract out services or functions being NO. Contracting out services is not ULP
performed by union members per se. It is only ULP when the following
- when such will interfere with, restrain or conditions exist:
coerce employees in the exercise of 1. the service contracted- out are
their right to self-organization; being performed by union members;
4. To initiate, dominate, assist or otherwise and
interfere 2. such contracting-out interferes with,
- with the formation or administration of restrains, or coerce employees in
any labor organization, the exercise of their right to self-
organization.
Page 41 of 70
and remain as such in good standing for

- HOWEVER, when the contracting-out is continued employment for the duration of
being done to minimize expenses, then it is the CBA.
a valid exercise of management prerogative.
3. MAINTENANCE OF MEMBERSHIP
THREE COMPONENTS OF ART. 248 (e CLAUSE - the agreement DOES NOT
): (DISCRIMINATION) require non-members to join the contracting
union BUT provides that those who are
1. It prohibits discrimination in terms and members thereof at the time of the
conditions of employment in order to execution of the CBA and those may
encourage or discourage membership in thereafter on their own volition become
the union; members must for the duration of the
2. It gives validity to union security agreement maintain their membership in
agreements; good standing as a condition for continued
3. It allows an agency shop arrangement employment in the company for the duration
whereby agency fees may be collected of the CBA.
from non-union members.
4. PREFERENTIAL SHOP AGREEMENT -
SECURITY ARRANGEMENTS are stipulations The employer agrees to give preference to
in the CBA requiring membership in the the members of the bargaining union in
contracting union as a condition for employment hiring or filing vacancies and retention in
or retention of employment in the company. case of lay-off. But the employer has the
right to hire in open market if union
members are not available. Usually,
PRINCIPLES OF UNION SECURITY
ARRANGEMENTS: descendants (children) are also given
preference in employment.
1. Protection. To shield union
5. AGENCY SHOP AGREEMENT - An
members from whimsical and
agreement whereby employees must either
abusive exercise of
join the union or pay to the union as
management prerogatives.
exclusive bargaining agent a sum equal to
2. Benefits. An additional
that paid by the members.
membership will insure
additional source of income
- This is directed against FREE
to the union in the form of
RIDER employees who benefit from
union dues and special
union activities without contributing to
assessment.
union support to prevent a situation of
3. Self-preservation. It
non-union members enriching
strengthens the union
themselves at the expense of union
through selective acceptance
members.
of new members on the basis
of commitment and loyalty.
DIFFERENT KINDS OF UNION

THE REQUIREMENTS FOR A VALID
SECURITY ARRANGEMENTS: UNION OR CLOSE SHOP AGREEMENT
1. CLOSED- SHOP AGREEMENT - the (SO THAT THE EMPLOYER CAN
employer undertakes not to employ any TERMINATE THE EMPLOYEE FOR
individual who is not a member of the VIOLATION OF SAID AGREEMENT):
contracting union and the said individual
once employer must, for the duration of the 1. It must be expressed in a clear and
agreement, remain a member of the union in unequivocal way so as not to leave room for
good standing as a condition for continued interpretation because it is a limitation to the
employment. exercise of the right to self-organization.
- Any doubt must be resolved against close-
2. UNION SHOP AGREEMENT -stipulation shop.
whereby any person can be employed by 2. It can only have prospective application and
the employer but once employed such cannot be applied retroactively.
employee must, within a specific period, 3. Can only be exercised by giving the
become a member of the contracting union employee his right to due process.
Page 42 of 70
- The employer has the right to satisfy

itself that there are sufficient bases for FEATHERBEDDING - refers to the practice of
the request of the union. the union or its agents in causing or attempting
- The termination of the employee is not to cause an employer to pay or deliver or agree
automatic upon the request of the union. to pay or deliver money or other things of value,
4. Cannot be applied to employees who are in the nature of exaction, for services which are
already employees of the rival union nor to not performed or not to be performed, as when a
the employees based on their religious union demands that the employer maintain
beliefs. personnel in excess of the latters requirements
CHAPTER III TITLE VII

UNFAIR LABOR PRACTICES OF COLLECTIVE BARGAINING AND
LABOR ORGANIZATIONS ADMINISTRATION OF AGREEMENTS
ART. 249. UNFAIR LABOR PRACTICES ART 250. PROCEDURE IN

OF LABOR ORGANIZATIONS COLLECTIVE BARGAINING
a. To restrain or coerce employees in the COLLECTIVE BARGAINING negotiation by

exercise of their right to self-organization. an organization or group of workmen, in behalf
However, a labor organization shall have the of its members, with the employer, concerning
right to prescribe its own rules with respect wages, hours of work and other terms and
to the acquisition or retention of conditions of employment and the settlement of
membership; disputes by negotiation between an employer,
b. To cause or attempt to cause an employer and the representative of his employees.
to discriminate against an employee,
including discrimination PROCEDURE IN COLLECTIVE
c. To violate the duly or refuse to bargain BARGAINING:
collectively with the employer provides that it
is the representative of the employees; 1. Written notice with statement of proposals
d. To cause or attempt to cause an employer 2. Reply by the other party
to pay or deliver or agree to pay or deliver 3. In case of differences, either party may
any money or other things of value, in the request for a conference
nature of an exaction, for services which are 4. If not settled NCMB may intervene and
not performed or not to be performed, encourage the parties to submit the dispute
including the demand for a fee for union to a voluntary arbitrator
negotiations; 5. If not resolved, the parties may go to where
e. To ask for a accept negotiation or attorneys they want and resort to any other lawful
fees from employers as part of the means.
settlement of any issue in collective
bargaining or any other dispute; or COLLECTIVE BARGAINING
f. To violate a collective bargaining
AGREEMENT- (CBA)
agreement.
negotiated contract between a legitimate
labor organization and the employer
NOTE: Violation must be gross with respect to
concerning :
economic provisions of the CBA.
- wages,
- hours of work and
PERSONS CIVILLY LIABLE FOR ULP: - all other terms and
- conditions of employment in a
1. Officers and agents of employer bargaining unit, including
2. Labor organization, officers and agents mandatory provisions for grievances
and arbitration machineries.
PERSONS CRIMINALLY LIABLE FOR
ULP: MANDATORY PROVISIONS OF THE
CBA:
1. Agents and officers who participated or
authorized or ratified the act. 1. wages
2. Agents, representatives, members of the 2. hours of work
government board, including ordinary 3. grievance machinery
members 4. voluntary arbitration
Page 43 of 70
5. family planning period fixed by the parties as long as no new

6. rates of pay agreement is reached by them.
7. mutual observance clause
MODES OF CHOOSING THE
In addition, the Bureau requires that the CBA EXCLUSIVE BARGAINING UNIT:
should include a clear statement of the terms of
the CBA.
1. SELECTION
- certification election
ART 253. DUTY TO BARGAIN
COLLECTIVELY WHEN THERE EXISTS A 2. DESIGNATION
COLLECTIVE BARGAINING a) voluntary recognition
AGREEMENT b) direct certification
BARGAINING UNIT- a group of employees of

a given employer, comprised of all or less that CERTIFICATION ELECTION - process of
all the entire body of the employees, consistent determining by secret ballot the sole and
with equity to the employer, - indicate to be best exclusive bargaining agent of the employees in
suited to serve the reciprocal rights and duties of an appropriate bargaining unit, for purposes of
the parties under the collective bargaining collective bargaining.
provision of the law.
DIRECT CERTIFICATION - process whereby
FOUR FACTORS IN DETERMINING THE the Med-Arbiter directly certifies a labor
APPROPRIATE BARGAINING organization of an appropriate bargaining unit of
AGREEMENT: a company after a showing that such petition is
supported by at least a majority of the
1. The Express Will or Desire of the employees in the bargaining unit. It is no
Employees (Globe Doctrine); longer allowed. (EO 111)
2. The Substantial and Mutuality Interest
Factor; VOLUNTARILY RECOGNITION
3. Prior Collective Bargaining History; - process whereby the employer recognizes a
4. Employment Status, such as labor organization as the exclusive
- temporary bargaining representative of the employees
- seasonal, and in the appropriate bargaining unit after a
- probationary employee showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
THINGS TO CONSIDER IN
DETERMINING THE COMMUNITY OF
INTEREST DOCTRINE:
CERTIFICATION CONSENT
1. similarity in the scale and manner of
determining earnings ELECTION ELECTION
2. similarity in employment benefits, hours of
work and other terms and conditions of 1. aimed at 1. an agreed one,
employment determining the its purpose
3. similarity in the kinds of work performed sole and being merely to
4. similarity in the qualifications, skills and exclusive determine the
training of the employees bargaining agent issue of majority
5. frequency of contract or interchange among of all the representation of
the employees employees in an all the workers in
6. common supervision and determination of appropriate the appropriate
labor-relations policy bargaining unit collective
7. history of previous collective bargaining for the purpose bargaining unit
8. desires of the affected employees of collective
9. extent of union organization bargaining;
AUTOMATIC RENEWAL CLAUSE - this is 2. separate and 2. from the very

under the present Article which establishes an distinct from a nature of
automatic renewal clause the CBA is effective consent election consent election,
and enforceable even after the expiration of the it is a separate
Page 44 of 70
and distinct b. when there is no CBA, then the labor

process and has organization can file a petition for
nothing to do certification election at any time, subject
with the import to the Deadlock bar Rule.
and effect of a
certification DEADLOCK BAR RULE, a petition for
election certification election can only can only be
entertained if there is no pending bargaining
EFFECT OF VOLUNTARILY deadlock submitted to conciliation or arbitration
RECOGNITION BY THE EMPLOYER: or had become the subject of a valid notice of
strike or lockout.
- By voluntarily recognition of the employer,
the labor organization recognized by the REQUISITES BEFORE A LABOR UNION
employer as the exclusive bargaining agent CAN BE DECLARED A WINNER:
may collectively bargain with the employer.
1. Majority of the eligible voters cast their
WHEN IS THE CONDUCT OF A votes.
CERTIFICATION ELECTION 2. Obtained majority of the valid votes cast.
MANDATORY ON THE PART OF THE (DOUBLE MAJORITY)
BLR?
HOW TO DETERMINE THE TWO
1. In an unorganized company MAJORITY RULE :
a. upon the filing of a verified petition by a
legitimate labor organization; or 1. In determining valid votes, eliminate spoiled
b. upon the filing of a petition by the ballots but include challenged votes
employer when such employer is 2. In determining the eligible votes cast,
requested by the employees to bargain include spoiled ballots
collectively.
2. In an organized company upon the filing of RUN-OFF ELECTIONS
a verified petition by a legitimate labor
organization questioning the majority status This happens when:
of the incumbent bargaining agent within the a. The election provides for at least 3
60-day freedom period before the expiration choices(no union is always a
of a CBA. choice)
- The petition must be supported by b. The election results in none of the
the written consent of at least 25% choices received the majority
of all the employees in the votes(50%+1) of the valid votes cast
appropriate bargaining unit.
NOTE: In case the establishment is organized,

the employer cannot file a petition for Run-off shall be conducted:
certification election; only a legitimate labor
organization can file such petition. a. Between the labor union receiving
the two highest number of votes
WHEN MAY A LABOR ORGANIZATION b. Provided that the total number of
FILE A PETITION FOR CERTIFICATION votes for all the contending unions is
at least 50% of the total votes cast
ELECTION:
1. Where the establishment is not RULES WHICH WILL PREVENT THE

organized, it can file a petition for HOLDING OF A CERTIFICATION
certification election at any time, subject ELECTION:
however to the ONE-ELECTION-PER-YEAR
RULE. 1. Contract-Bar Rule
2. In an organized establishment 2. One-Year Bar Rule
a. when there is a CBA, the labor 3. Deadlock Bar Rule
organization can file a petition for
certification election within the 60-day THE CONTRACT-BAR RULE provides that
freedom period (CONTRACT-BAR while a valid and registered CBA is subsisting,
RULE ) the BLR is not allowed to hold an election
Page 45 of 70
contesting the majority status of the incumbent NOTE: Registration of CBA only puts into effect
union. the contract-rule bar rule but the CBA itself is
valid and binding even if unregistered.
EXCEPTIONS TO THE RULE:
SUBSTITUTIONARY DOCTRINE-- It
1. Where it is shown that because of a means that where there occurs a shift in the
schism in the union the contract can no employees union allegiance after the execution
longer serve to promote industrial of a collective bargaining contract with the
stability, and the holding of the election employer, the employees can change their
is in the interest of the employees right agent the labor union, but the collective
in the selection of their bargaining bargaining contract which is still subsisting,
representatives. continues to bind the employees up to its
2. Basic to the contract bar rule is the expiration date. They, may, however, bargain
proposition that the denial of the right to for the shortening of said expiration date.
select representatives can be justified
only where stability is deemed DEADLOCK arises when there is an
paramount. impasse which presupposes reasonable effort at
3. Certain types of contracts which do not good faith bargaining which, despite noble
foster industrial stability such as intentions, did not conclude in agreement
contracts where the identity of the between the parties.
representative is in doubt or those that
are prematurely renewed JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING: (Kiok Loy
REQUIREMENTS IN ORDER TO Case)
INVOKE CONTRACT-BAR RULE:
1. Possession of status of majority
1. Agreement is in writing, signed by all representation
contracting parties. 2. Proof of majority representation
2. It must contain the terms and conditions of 3. Clear and unequivocal demand to bargain
employment. collectively
3. Covered employees in an appropriate
bargaining unit. DUTY TO BARGAIN COLLECTIVELY-
4. It is for a reasonable period or duration.
5. It must be ratified. The performance of a mutual obligation to meet
6. It must be registered with the Bureau. and convene
7. The violation of the contract bar rule or the - promptly and expeditiously and in good faith,
existence of a duly registered CBA must be for the purpose of negotiating an agreement with
specifically impleaded as a defense. the respect to
- wages,
- hours of work and
EXCEPTIONS TO THE CONTRACT-
- all other terms and conditions of
BAR RULE: employment, including
- proposals for adjusting any
1. CBA is not registered. grievances or questions arising
2. CBA deregistered. under such agreement and
3. CBA was hastily concluded way ahead of - executing a contract incorporating
the freedom period such agreements if requested by
4. CBA is incomplete in itself either party.
5. CBA does not foster industrial peace
because of schism - When there is a collective bargaining
6. CBA was concluded in violation of an order agreement, the DUTY TO BARGAIN
enjoining the parties from entering into a COLECTIVELY shall mean that neither party
CBA until the issue of representation is shall terminate or modify such agreement
resolved. during its lifetime.
- However, either party can serve a
EFFECT OF AN INVALID AND written notice to terminate or modify
UNREGISTERED CBA: the agreement at least 60 days prior
to its expiration period.
- Then there is no bar and therefore a
certification election may be held.
Page 46 of 70
Does the Duty to Bargain Collectively This rule applies only if there is an
carry with it the duty to agree to a EXISTING AGREEMENT. IF THERE IS NO
proposal or to make a concession? EXISTING AGREEMENT, there is no
retroactive effect because the date agreed
upon shall be the start of the period of
NO. The duty to bargain collectively does
agreement.
not compel any party
- to agree to a proposal or
TAKE NOTE: Article 253-A on retroaction does
- to make a concession
not apply if the provisions were imposed by the
Secretary of Labor by virtue of arbitration. It
EXAMPLES OF BAD FAITH applies only if the agreement was voluntarily
BARGAINING: made by the parties.
1. Surface Bargaining occurs when SUCCESSOR-IN-INTEREST DOCTRINE

employer constantly changes its positions occurs when an employer is succeeded by
over the agreement. another employer, the successor-in-interest who
2. Boulwarism occurs is a buyer in good faith has no liability to
a. when the employer directly bargains employees in continuing employment and
with the employee disregarding the collectively bargain because they are contracts
union. in personam, as well as for cases of unfair labor
b. Employer submits its proposals and practice.
adopts a take it or leave it stand. This is
not negotiation because the take it or EXCEPTIONS TO THE SUCCESSOR-IN-
leave it stand implies threat. INTEREST DOCTRINE:
3. Side Bar Technique
1. If the transfer is done in bad faith;
DUTIES OF THE PARTIES DURING THE 2. If it was done to circumvent the obligation of
60-DAY PERIOD: the seller;
3. If the successor expressly assumes the
1. to keep the status quo and obligations of the seller
2. to continue in full force and effect and the
terms and conditions of the existing BARGAINING IMPASSE exists when good
agreement during the 60-day period and/or faith bargaining on the part of the parties filed to
until a new agreement is reached by the resolve the issue and there are no definite plans
parties. (Art. 253) for further efforts to break the deadlock
ART 254. NO INJUNCTION RULE

ART 253 A. TERMS OF A
COLLECTIVE BARGAINING No temporary or permanent injunction pr
AGREEMENT restraining order in any case involving or
growing out of labor disputes shall be issued
DURATION OF THE CBA: by any court or other entity, except as otherwise
provided in Articles 218 and 264 of this Code.
1. With respect to the representation aspect
the same lasts for 5 years. ART 255. EXCLUSIVE BARGAINING
2. With respect to other provisions, the same REPRESENTATION AND WORKERS
shall last for a maximum period of 3 years PARTICIPATION IN POLICY AND
after execution.
DECISION-MAKING
RULE ON RETROACTIVE EFFECTS OF IN DETERMINING THE APPROPRIATE
AGREEMENT PROVISIONS: BARGAINING UNIT THE FF. MUST BE
CONSIDERED:
- Any agreement on such other provisions of
the CBA if made within 6 months after the 1. Will of employees
date of expiry, there is AUTOMATIC 2. Affinity and unity of employees interest
RETROACTION to the day immediately 3. Prior collective bargaining history
following such date of expiry. 4. Employment status, such as temporary,
seasonal and probationary employees.
- If not within 6 months, the parties may
agree to the DATE OF RETROACTION.
Page 47 of 70
ONE-UNION, ONE-COMPANY POLICY- the - It is the labor arbiter and not the grievance
proliferation of unions in an employer unit is machinery which has jurisdiction over
discouraged as a matter of policy unless there dismissal pursuant to the union security
are compelling reasons which would deny a clause.
certain class of employees the right to self-
organization for purposes of collective 2. JURISDICTION BY AGREEMENT OF THE
bargaining. PARTIES
- voluntary arbitrators shall also hear and
EXCEPTIONS: supervisory employees who are decide all other disputes including ULP and
allowed to form their own unions apart from the bargaining deadlocks.
rank-and-file employees
GROUNDS FOR JUDICIAL REVIEW OF
LABOR MANAGEMENT COUNCILS deal with DECISIONS OF VOLUNTARY
the employer on matters affecting employees ARBITRATORS:
rights, benefits and welfare. They may be
formed even if there is already a union in the 1. Lack of jurisdiction
company. 2. Grave abuse of discretion
3. Violation of due process
TITLE VII- A 4. Denial of substantial justice
(as incorporated by RA 6715) 5. Erroneous interpretation of the law
GRIEVANCE MACHINERY AND

VOLUNTARY ARBITRATION TITLE VIII
STRIKES AND LOCKOUTS AND
ART 260. GRIEVANCE MACHINERY FOREIGN INVOLVEMENT IN TRADE
AND VOLUNTARY ARBITRATION UNION ACTIVITIES
GRIEVANCE MACHINERY - Mechanism for CHAPTER I

the adjustment of controversies or disputes STRIKES AND LOCKOUTS
arising from the interpretation or implementation
of the CBA and the interpretation or enforcement ART. 263. STRIKES, PICKETING AND
of personnel policies LOCKOUTS
GRIEVANCE ARISES: when a dispute or STRIKE - Any temporary stoppage of work by
controversy arises over the implementation or the concerted action of employees as a result of
interpretation of a CBA or from the an industrial or labor dispute.
implementation or enforcement of company
personnel policies, and either the union or the IMPORTANCE
employer invokes the grievance machinery
provision for the adjustment or resolution of such
- it is the most effective weapon of labor in
dispute or controversy.
protecting the rights of employees to
improve the stems and conditions of their
- both parties must resort to grievance
employment.
machinery
STRIKE-BREAKER- any person who
ART 261. JURISDICTION OF obstructs, impedes or interferes by force,
VOLUNTARY ARBITRATORS OR PANEL violence, coercion, threats or intimidation with
OF VOLUNTARY ARBITRATORS any peaceful picketing by employees during any
labor controversy affecting wages, hour or
JURISDICTION OF VOLUNTARY conditions of work or in the exercise of the right
ARBITRATORS: to self organization or collective bargaining
1. EXCLUSIVE ORIGINAL JURISDICTION STRIKE AREA the establishment,

CONFERRED BY LAW warehouse, depots, plants or offices, including
a) interpretation or implementation of the the sites or premises used as runaway shops of
CBA the employer struck against, as well as the
b) interpretation or enforcement of immediate vicinity actually used by picketing
company personnel polices strikers in moving to an fro before all points of
entrance to and exit front said establishment
Page 48 of 70
1. Voluntary strike 1. Involuntary :

LOCKOUT - means the temporary refusal of because the labor
an employer to furnish work as a result of an employee will organization is
industrial or labor dispute. declare strike to forced to go on
compel strike because
GROUNDS FOR THE DECLARATION management to the ULP
OF STRIKE grant its committed
demands. against them by
the employer. It
1. deadlock in collective bargaining; and/or
is an act of self-
2. unfair labor practices
defense since
the employees
WHO CAN DECLARE ECONOMIC are being
(Bargaining Deadlock) STRIKE: pushed to the
wall and their
1. Collective bargaining agent only remedy is to
strike.
WHO CAN DECLARE POLITICAL (ULP)
STRIKE:
COOLING OFF PERIOD - that period of time
1. collective bargaining agent given the NCMB to mediate and conciliate the
2. Legitimate labor organization in behalf of parties.
members
- It is that span of time allotted by law for the
SIT-DOWN STRIKE - is characterized by a parties to settle their disputes in a peaceful
temporary work stoppage of workers who manner, before staging a strike or lockout.
thereupon seize or occupy property of the
employer or refuse to vacate the premises of the NUMBER OF DAYS IN THE COOLING
employer. OFF PERIOD:
Is a sit-down strike legal? 1. If the ground for the intended strike or
NO. It borders to a criminal act because lockout is DEADLOCK IN COLLECTIVE
the employees trespass on the premises of the BARGAINING, the cooling-off period is 30
employer. days from the filing of the notice of strike.
2. If the ground for the intended strikes is
WILDCAT STRIKE- is a work stoppage that UNFAIR LABOR PRACTICE, the cooling-
violates the labor contract and is not authorized off period is 15 days from the filing of the
by the union. notice of strike. Therefore:
Is a wildcat strike valid? - HOWEVER, in case of dismissal from

NO. It is not valid because it fails to employment of union officers duly in
comply with certain requirements of the law, to accordance with the union constitution and
wit, notice of strike, vote, and report on strike by-laws, which may constitute union busting
vote. where the existence of the union is
threatened, the 15-day cooling-off period
Is a welga ng bayan legal? shall NOT apply AND the union may take
NO. A welga ng bayan is illegal action immediately.
because it is a political strike and therefore there
is no bargaining deadlock nor any ULP. It is a - the cooling off periods and seven-day
political rally. strike ban is mandatory otherwise the
purposes for which they have been imposed
PICKETING - is the marching to and fro the would not be achieved
employers premises, usually accompanied by
the display of placards and other signs making EXCEPTION TO THE COOLING-OFF
knowing the facts involved in a labor dispute. PERIOD:
This is an exercise of ones freedom of speech.
- In case of dismissal from employment of
ECONOMIC ULP STRIKE union officers duly elected in accordance
STRIKE with the union constitution and by-laws,
which may constitute union busting where
Page 49 of 70
the existence of the union is threatened, he 1. there exists a labor dispute causing or likely
15-day cooling-off period shall NOT apply to cause a strike or lockout in a industry
AND the union may take action indispensable to the national interest,
immediately but they must still observe the 2. the Secretary of Labor and Employment
mandatory 7 day period before they can may assume jurisdiction and EITHER:
stage a valid strike.
- decide it or
STRIKE VOTE - is a requirement wherein the - certify the same to the Commission for
decision to declare a strike must be: COMPULSORY ARBITRATION.
1. approved by a majority of the total union INDISPENSABLE INDUSTRY is based solely

membership in the bargaining unit upon the discretion of the Secretary of Labor
concerned,
2. obtained by secret ballot EFFECTS OF THE ASSUMPTION OF
3. in meetings or referenda called for the JURISDICTION OF THE SECRETARY
purpose.
1. automatically enjoining the intended or
PURPOSE OF A STRIKE VOTE - is to ensure impending strike or lockout as specified in
that the intended strike is a majority decision. the assumption or certification order.
2. if one has already taken place at the time of
When should the strike vote be assumption or certification, all striking or
submitted? locked out employees shall immediately
return to work and
The report on the strike vote must be 3. the employer shall immediately resume
submitted to the DOLE at least 7 days before operations and readmit all workers under
the intended strike subject to the cooling-off the same terms and conditions prevailing
period. before the strike or lockout.
4. A motion for reconsideration does not
TESTS FOR THE LEGALITY OF A suspend the effects as the assumption order
STRIKE: is immediately executory.
1. Whether or not is has a lawful PURPOSE. TOTALITY DOCTRINE:

2. Whether or not is complies with the
PROCEDURAL REQUIREMENTS OF THE the culpability of an employers remarks
LAW, to wit were to be evaluated not only on the basis of
- notice of strike their implicit implications, but were to be
- 30/15-day cooling-off period appraised against the background of and in
- strike vote conjunction with collateral circumstances.
- 7-day strike ban
3. Whether or not it is executed through - Under this doctrine expressions of
LAWFUL MEANS. opinion by an employer which, though
innocent in themselves, frequently were held
- NOTE: The 3 tests must concur. to be culpable because
- of the circumstances under which they
EFFECT OF GOOD FAITH OF were uttered,
- -the history of the particular employers
STRIKERS ON LEGALITY OF STRIKE:
labor relations of anti-union bias or
- A strike may be considered legal where the
- -because of their connection with an
union believed that the company committed
established collateral plan of coercion or
ULP and the circumstances warranted such
interference. (Rothenberg)
belief in good faith, although subsequently
such allegations of ULP are found out as not
ISSUES THAT THE SECRETARY OF
true.
LABOR CAN RESOLVE WHEN HE ASSUMES
JURISDICTION OVER A LABOR DISPUTE:
WHEN CAN THE SEC. OF LABOR 1. Only issues submitted to the Secretary may
ASSUME JURISDICTION OVER A be resolved by him. (PAL vs. Sec. of
STRIKE? Labor, 23 January 1991)
2. Issues submitted to the Secretary for
resolution and such issues involved in the
Page 50 of 70
labor dispute itself. (St. Scholasticas - -e.g. of Unconditioned offer: we will

College vs. Torres, 29 June 1992) return tomorrow and NOT willing to
3. Secretary of Labor may subsume pending return provided
labor cases before Labor Arbiters which are
involved in the dispute. (Intl 2. Where there is return-to-work and the
Pharmaceuticals vs. Sec of Labor, 09 employees are discriminated against.
January 1992). - -They are entitled to backwages
4. Power of Sec. of Labor is plenary and from the date of discrimination.
discretionary. (St. Lukes Medical Center
vs. Torres, 29 June 1993; reiterated in PAL RULES IN STRIKES IN HOSPITALS
vs. Confesor, 10 March 1994).
1. It shall be the duty of striking employees or
TESTS TO DETERMINE VALIDITY OF locking-out employer to provide and maintain an
STRIKES. effective skeletal workforce of medical and other
health personnel for the duration of the strike or
1. PURPOSE TEST - The strike must be due lock-out.
to either 2. Secretary of Labor may immediately assume
- -bargaining deadlock and/or jurisdiction within 24 hours from knowledge of
- -unfair labor practice. the occurrence of such strike or lock-out or
certify it to the Commission for compulsory
2. MEANS EMPLOYED TEST- -A strike may arbitration
be legal at its inception but eventually be
declared illegal if the strike is accompanied GOCCs organized under the Corporation Code
by violence which violence is widespread, with no original charter of its
pervasive and adopted as a matter of policy own can declare a strike.
and not merely violence which is sporadic
which normally occur in a strike area. ART 264. PROHIBITED ACTIVITIES
3. IN ACCORDANCE WITH PROCEDURAL & 1. NO labor organization or employer shall

SUBSTANTIVE REQUIREMENTS OF LAW declare a strike or lockout
- without first having bargained
In Case the strike is declared legal, collectively in accordance with Title
are the strikers entitled to strike duration VII of this Book or
pay? - without first having filed the notice
IT DEPENDS. required in the preceding Article or
without the necessary strike or
1. If it is an Economic Strike lockout vote first having been
NO, the strikers are NOT entitled to strike obtained and reported to the
duration pay since the employer should get the Department.
equivalent days work for what the pays his
employees. - NO strike or lockout shall be declared:
a. AFTER assumption of jurisdiction by
2. If it is a ULP Strike the President or the Secretary or
Would depend on the authority deciding b. AFTER certification or submission of
(discretionary). the dispute to compulsory or
voluntary arbitration or
-DURING the pendency of cases
GENERAL RULE:
involving the same grounds for the strike or
- Strikers are not entitled to their wages
lockout.
during the period of a strike, even if the
strike is legal.
b) NO person all obstruct, impede or interfere
with OII by force, violence, coercion, threats or
EXCEPTIONS: intimidation FVCTI
- any peaceful picketing by
1. Where the strikers voluntarily and employees
unconditionally offered to return to work, - during any labor controversy or
but the employer refused to accept the in the exercise of the right of self-
offer. organization or collective bargaining
- -They are entitled to backwages from or shall aid or abet such obstruction
the date the offer was made or interference.
Page 51 of 70
c) NO employer shall use or employ any

STRIKE-BREAKER
- nor shall any person be employed as a
strike-breaker.
ART 265. IMPROVED OFFER
d) NO public official or employee, including BALLOTING
officers and personnel of the New Armed Forces
of the Philippines of the Integrated National IMPROVED OFFER BALLOTING: a
Police, or armed persons, referendum conducted by the NCMB on or
- shall bring in, introduce or escort before the 30th day of the strike, for the purpose
in any manner, of determining whether or not the improved offer
- any individual who seeks to replace of the union is acceptable to the union members.
strikes in entering or leaving the - applies only to economic strikes (bargaining
premises of a strike area, or work in deadlock)
place of the strikers.
- The police force shall keep out of PURPOSE: to ascertain the real sentiment
the picket lines unless actual of the silent majority of the union members
violence or other criminal acts occur on strike.
therein:
Provided, That nothing herein shall be REDUCED OFFER BALLOTTING
interpreted to prevent any public officers from
taking any measure necessary to: - a referendum conducted by the NCMB,
- maintain peace and order, - for the purpose of determining whether or
- protect life and property, and/or not the reduced offer of the union is
- enforce the law and legal order. acceptable to the board of directors, trustees
or partners.
e) NO person engaged in picketing shall - applies only to economic strike
- commit any act of violence, coercion
or intimidation or
- obstruct the free ingress to or
ART 266. ARREST AND DETENTION
egress from the employers
premises for lawful purposes, or General rule is that a police officer cannot
- obstruct public thoroughfares. arrest or detain a union member for union
activities without previous consultations with the
Secretary of Labor except on grounds of:
RULES ON REINSTATEMENT OF
a. national security
WORKERS: b. public peace
c. commission of a crime
GENERAL RULE - Striking
employees are entitled to reinstatement,
regardless of whether or not the strike was the
consequences of the employers ULP BOOK SIX
POST EMPLOYMENT
REASON: because while out of
strike, the strikers are not considered to have TITLE I
TERMINATION
abandoned their employment, but rather have OF
only ceased from their labor. EMPLOYMENT
- -The declaration of a strike is NOT a
renunciation of employment relation. ART 279. SECURITY OF TENURE
EXCEPTIONS: The following strikers are SECURITY OF TENURE is the constitutional

NOT entitled to reinstatement: right granted the employee, that the employer
1. union officers who knowingly shall not terminate the services of an employee
participates in an illegal strike; except for just cause or when authorized by law.
and
2. any striker/union member who An employee that has been dismissed illegally is
knowingly participate in the entitled to:
commission of illegal acts during a. Reinstatement
the strike. b. Backwages
Page 52 of 70
Under the Labor Code, an employee

who is allowed to work after a probationary
period shall be considered a regular employee.
(Art. 281.)
ART 280. REGULAR AND CASUAL ART. 282. TERMINATION BY EMPOYER
EMPLOYMENT
JUST CAUSES:
REGULAR EMPLOYMENT- One wherein an
employee is engaged to perform activities which 1. Serious misconduct or willful disobedience
are usually necessary or desirable in the usual by the employee of the lawful orders of his
business or trade of the employer. employer or representative in connection
with his work;
TEMPORARY EMPLOYMENT-One wherein 2. Gross and habitual neglect by the employee
an employee is engaged to work on a specific of his duties;
project or undertaking which is usually 3. Fraud or willful breach by the employee of
necessary or desirable in the usual business or the trust reposed in him by his employer or
trade of the employer, the completion of which duly organized representative;
has been determined at the time of the 4. Commission of a crime or offense by the
agreement of the employee. employee against the person of his
employer or any immediate member of his
SEASONAL EMPLOYMENT-One wherein family or his duly authorized representative;
an employee is engaged to work during a and
particular season on an activity that is 5. Other causes analogous to the following:
usually necessary or desirable in the usual
business or trade of the employer. ART. 283- 284
PROBATIONARY PERIOD OF AUTHORIZED CAUSES OF TERMINATION

EMPLOYMENT - the period needed to BY THE EMPLOYER:
determine the fitness for the job, i .e., the
time needed to learn the job. 1. The installation of labor-saving devices
It is period during which the employer (automation)
may determine if the employee is qualified for 2. Redundancy (superfluity in the performance
possible inclusion in the regular force. of a particular work)
3. Redundancy to prevent losses (there is
NOTE: The standard which the probationary excess of employees and employer wants to
employee is to meet must be made known by prevent financial losses)
the employer to the employee at the time of the 4. The closing or cessation of operation of the
engagement. establishment or undertaking UNLESS the
closing is for the purpose of circumventing
Probationary employees may be terminated for the provisions of the Labor Code.
the same causes as a regular employee, except 5. Illness
that there is an additional ground failure to a. If illness is incurable within 6 months
meet the standard. and is
b. deleterious to his health or his co-
Is it necessary that probationary employment employees.
be for a period of 6 months? c. certification from public heath officer
No. Provided that the following that illness is incurable within 6
requisites concur: months.
1. it is done before the lapse of 6
months; STANDARDS UNDER WHICH AN
2.employee must be advised of such extension; EMPLOYER MAY RETRENCH:
3. employee must agree.
1. Losses expected should be imminent and
EFFECT IF PROBATIONARY EMPLOYEE IS substantial.
ALLOWED TO WORK BEYOND 6 MONTHS: 2.It must be reasonably necessary and likely to
effectively prevent the expected losses
If the probationary employee is allowed 3. Alleged losses if already incurred, and the
to work beyond the period of 6 months or the expected imminent losses sought to be
agreed probationary period, said employee forestalled, must be proved by sufficient and
become a regular employee by operation of law. convincing evidence.
Page 53 of 70
NOTE: If CLOSURE is due to severe financial

ART. 285. TERMINATION BY losses, it is still debatable whether or not
EMPLOYEE separation pay should be given.
- I f you are able to prove that such portion of
capital (10%) investment has been impaired,
TERMINATION BY THE EMPLOYEE
the employer should be exempt for the
An employee may terminate WITHOUT
payment of separation pay.
JUST CAUSE the employee-employer
relationship by serving a WRITTEN NOTICE on
GUIDELINES TO DETERMINE THE
the employer at least one month in advance. .
VALIDITY OF TERMINATION:
The employer upon whom no such
1. Gravity of the offence
notice was served may hold the employee liable
2. Position occupied by the employee
for damages.
3. Degree of damage to the employer
An employee may put an end to
4. Previous infractions of the same offense
establish WITHOUT SERVING ANY NOTICE on
5. Length of service
the employer for any of the following just
causes:
ART 287. RETIREMENT
1. Serious insult by the employer or his
representative on the hour and person of the RETIREMENT AGE -The age of retirement is
employee; that specified in the CBA or in the employment
2. Inhuman and unbearable treatment contract. If it is not specified,
accorded the employee by the employer or 1. 60-65 -retirement is optional
his representative; but the employee must have
3. Commission of a crime or offense by the served at least 5 years ;
employer or his representative against the
person of the employee or any of the 2. 65-compulsory retirement age
immediate members of his family; and (no need for 5 years of
4. Other causes analogous to any of the service)
foregoing.
BENEFITS- A retiree is entitled to a
SEPARATION PAY retirement pay equivalent at least month
salary for every year of service, a fraction of at
least six (6) months being considered as one
In case of termination due to
whole year.
Unless the parties provide for broader
a) THE INSTALLATION OF LABOR-SAVING
inclusions, the term one half (1/2) month salary
DEVICES OF
shall mean:
b) REDUNDANCY,
- the worker affected thereby shall be entitled 15 days plus 1/12 of the 13 th month
to a separation pay equivalent to at least pay and
one (1) month pay or to at least one (1) the cash equivalent of NOT more
month pay for every year of service, than 5 days of service incentive
whichever is higher. leaves.
(22.5 days per year of service)
c) RETRENCHMENT TO PREVENT LOSSES
and CLOSURES OR CESSATION OF NOTE: Exempted from the payment of
OPERATIONS (NOT due to serious retirement pay are retail, service and agricultural
business losses or financial reverses) establishments or operations employing NOT
- The separation pay shall be equivalent to more than ten (10) employees or workers.
one (1) month pay or at least month pay
for every year of service, whichever is
higher. BOOK SEVEN
d) In the case of ILLNESS TRANSITORY AND FINAL
- separation pay equivalent to at least one PROVISIONS
month salary or to month salary for every
year of service, whichever is greater, a
fraction of at least 6 months shall be TITLE II
considered one (1) whole year. PRESCRIPTION OF OFFENSES AND
CLAIMS
ART. 291. MONEY CLAIMS

Page 54 of 70
the affected employees right to due process has

PERIODS OF PRESCRIPTION been violated, the dismissal is valid but the
employee is entitled to damages by way of
A. MONEY CLAIMS-The prescriptive period is indemnification for the violation of the right.
3 years from the accrual of the cause of On Jan. 27, 2000, the SC in the case of
action. SERRANO vs. ISETANN et. al. Disregarded
B. ULP -The prescriptive period of filing a case this WENPHIL DOCTRINE and ruled that if the
for ULP is 1 year from the accrual of the employees right to due process is violated, his
cause of action. dismissal becomes illegal regardless of the
existence of a just and authorized cause.
ILLEGAL DISMISSAL
The prescriptive period of filing a case REINSTATEMENT - Restoration of the
for illegal dismissal is 4 years from the accrual of employee to state from which one has been
the cause of action. (Art. 1146) removed or separated without loss of seniority
rights and other privileges.
NOTE: The period of prescription mentioned
under Article 281, now Article 292, of the Labor WHAT HAPPENS IF THERE IS AN ORDER
Code, refers to and is limited to money claims, OF REINSTATEMENT BUT THE POSITION IS
all other cases of injury to rights of a NO LONGER AVAILABLE? If the position
workingman being governed by the Civil Code. previously occupied by the employee is no
Hence, reinstatement prescribes in 4 years. longer available at the time of reinstatement, he
should be given a substantially equivalent
POST- EMPLOYMENT position.
FORMS OF REINSTATEMENT: If THERE IS NO SUBSTANTIALLY

EQUIVALENT POSITION: If no substantially
1. ACTUAL OR PHYSICAL REINSTATEMENT equivalent position is available, reinstatement
-the employee shall be admitted back to should not be ordered because that would in
work; effect compel the employer to do the impossible.
In such a situation, the employee should merely
2. PAYROLL REINSTATEMENT be given separation pay of the one month salary
- the employee is merely reinstated in for every year of service (1:1).
the payroll.
CIRCUMSTANCES WHEN COMPANY MAY
PERIOD COVERED BY THE PAYMENT OF NOT REINSTATE DESPITE ORDER OF
BACKWAGES: Backwages shall cover the REINSTATEMENT
period from the date of dismissal of the
employee up to the date of actual 1. Transfer of business ownership;- There
reinstatement. is no law requiring a purchasing corporation to
absorb the employees of the selling corporation.
A fortiori, reinstatement of unjustly dismissed
SECURITY OF TENURE: An employer
employees CANNOT be enforced against the
CANNOT terminate the services of an employee
new owner UNLESS there is an express
EXCEPT for a just cause or when authorized by
agreement on the assumption of liabilities by
law.
the purchasing corporation.
2. When reinstatement is rendered impossible
REQUIREMENTS OF DUE PROCESS
due to the abolition of the position;
BEFORE AN EMPLOYEE CAN BE REMOVED:
3. When the business has closed down;
4. Physical incapacity of employee
1. written notice to apprise the employee of the
5. Doctrine of Strained Relations-When the
particular acts or omission for which his
employer can no longer trust the employee
dismissal is sought and is hereby
and vice-versa, reinstatement could not
considered as the proper charge;
effectively serve as a remedy. Applies only
2. ample opportunity to be employee to be
to positions which require trust and
heard and if the employee so decides, with
confidence; or
the assistance of counsel; and
Under the circumstances where the
3. written notice informing the employee of the
employment relationship has become so
employers decision to dismiss him.
strained to preclude a harmonious working
relationship, and that all hopes at reconciliation
Under the so-called WENPHIL
are nil after reinstatement, it would be more
DOCTRINE if just or authorized cause exist but
Page 55 of 70
beneficial to accord the employee backwages Commission including but not limited to the
and separation pay. following:
1. all self employed professionals
BACKWAGES-Relief given to an employee to 2. partners and single proprietors
compensate him for lost earnings during the 3. actors and actresses directors
period of his dismissal. 4. professional athletes, coaches,
trainers
How computed: Under existing law, 5. individual farmers and fishermen
backwages is computed from the time of the
illegal dismissal up to time of actual EFFECTIVE DATE OF COVERAGE:
reinstatement.
Shall take effect on the first day
WHAT ARE INCLUDED IN THE of the operation with respect to the
COMPUTATION OF BACKWAGES employer and that of the employee on
the day of his employment
1. transportation and emergency allowances
2. vacation or service incentive leave and sick DEPENDENTS:
leave
3. 13th month pay. 1. the legal spouse entitled by law to
However, facilities such as uniforms, shoes, receive support from the member
helmets and ponchos should NOT be included 2. the legitimate, legitimated or legally
in the computation of backwages. adopted and illegitimate child who is
unmarried, not gainfully employed
REASON: said items are given free, to and has not reached 21 years of
be used only during official tour of duty not for age or if 21 years of age, he is
private or personal use. congenitally incapacitated or while
still a minor has been permanently
CIRCUMSTANCES THAT PREVENT incapacitated and incapable of self-
AWARD OF BACKWAGES: support, physically and mentally and
3. the parent who is receiving regular
1. death of the employee support from the member
2. physical and mental incapacity
3. business reverses EMPLOYER
4. closure of business
5. reinstatement of dismissed employee Any person natural or juridical,
6. confinement in jail domestic or foreign, who carries on in
the Philippines, any trade business,
SPECIAL LAWS industry undertaking or activity of any
kind and uses the services of another
SOCIAL SECURITY SYSTEM person who is under his orders as
regards the employment except the
COVERAGE: Government and any of its political
Compulsory upon all employees not subdivisions, branches or
over 60 years of age and their employers instrumentalities, including corporations
In case of domestic helpers, their owned or controlled by the Government
monthly income shall not be less than one Self- employed person shall be both the
thousand pesos employer and employee at the same
Any benefit already earned by the time.
employees under private benefit plans existing
at the time of the approval of the Act shall not be EMPLOYEE
discontinued, reduced or otherwise impaired and
shall continue to remain under the employers Any person who performs
management unless there is an existing services for an employer in which either
agreement to the contrary or both mental and physical efforts are
Filipinos recruited by foreign based used and who receives compensation
employers for employment abroad may be for such services, where there is an
covered by the SSS on a voluntary basis employer- employee relationship.
Compulsory upon such self- employed
persons as may be determined by the
BENEFICIARIES
Page 56 of 70
life insurance only, all members of the GSIS

The dependent spouse until he or she shall have life insurance, retirement and all other
remarries, the dependent legitimate, social security protection such as disability,
legitimated or legally adopted and survivorship, separation and unemployment
illegitimate children who shall be the benefits.
primary beneficiaries of the member,
PROVIDED that the dependent
illegitimate children shall be entitled to COMPUTATION OF SERVICE
50% of the share of the legitimate,
legitimated or legally adopted children The computation of service for the
In the absence of the purpose of determining the amount of benefits
legitimated, legally adopted or legitimate payable shall be from the date of the original
children, illegitimate children shall be appointment/ election including periods of
entitled to 100% of the benefits. service at different times under the authority of
In their absence, the dependent the Republic of the Philippines and those that
parents who shall be the secondary may be prescribed by the GSIS in coordination
beneficiaries. with the Civil Service Commission.
In the absence of all of the All service credited for retirement,
foregoing, any person designated by the resignation or separation for which
covered employee as secondary corresponding benefits have been awarded shall
beneficiary be excluded in the computation of service in
case of reinstatement in the service of an
MEDICARE employer and subsequent retirement or
separation which is compensable.
COVERAGE:
All SSS members are covered under the UNEMPLOYMENT OR INVOLUNTARY

Medicare program. Total permanent disability, SEPARATION BENEFITS
unemployed partial permanent disability,
retirement pensioners and survivors of Monthly cash payments equivalent to
deceased members of the SSS and their 50% of the average monthly compensation shall
dependents are also entitled to medical care be paid to a permanent employee who is
benefits without need of additional contributions involuntarily separated from the service due to
the abolition of his office or position usually
PERIOD OF ENTITLEMENT resulting from reorganization.
The member or pensioner is entitled to a RETIREMENT BENEFITS: CONDITIONS

maximum of 45 days confinement in a hospital FOR ENTITLEMENT
in a given calendar year. His dependents are
given another set of 45 days to be shared 1. Member has rendered at least 15
among themselves. Unused benefits cannot be years of service
carried over to the succeeding year. 2. He is at least 60 years of age at the
time of retirement
GOVERNMENT SERVICE 3. He is not receiving a monthly
pension benefit from permanent
INSURANCE SYSTEM total disability
COMPULSORY MEMBERSHIP
PERMANENT DISABILITY BENEFITS
Compulsory for all employees receiving
Monthly income benefit for life equal to
compensation who have not reached the
the basic monthly pension effective from the
compulsory retirement age, irrespective of
date of the disability. Provided:
employment status, except members of the
Armed Forces and the PNP, subject to the
1. He is in the service at the time of the
condition that they must settle first their financial
disability
obligations with the GSIS and contractuals who
2. If separated from service, he has
have no employer and employee relationship
paid at least 36 monthly
with the agencies they serve.
contributions within the 5 year
period immediately preceding the
Except for the members of the Judiciary
disability or has paid a total of at
and constitutional commissions who shall have
Page 57 of 70
least 180 monthly contributions prior Claims for benefits under the Act except
to the disability for life and retirement shall prescribe after 4
years from the date of the contingency.
Unless the member has reached the JURISDICTION
minimum retirement age, disability benefits shall
be SUSPENDED when: GSIS shall have the exclusive and
original jurisdiction to settle any dispute arising
1. he is reemployed under the Act and any other laws administered
2. he recovers from his by the GSIS.
disability as determined by
the GSIS, whose decision
shall be final and binding RA 8042: "MIGRANT WORKERS AND
3. he fails to present himself OVERSEAS FILIPINOS ACT 0F 1995"
for medical examination
when required by the GSIS
Approved on 07 June 1995 and took
effect on 15 July 1995. As indicated in its title,
TEMPORARY DISABILITY BENEFITS the law institutes the policies of overseas
employment and establishes a higher standard
75% of the current daily compensation of protection and promotion of the welfare of
for each day or fraction thereof of temporary migrant workers, their families, and of overseas
disability benefit not exceeding 120 days in one Filipinos in distress.
calendar year after exhausting all sick leave
credits and collective bargaining agreement sick
GUARANTEE OF PROTECTION FOR
leave benefits. PROVIDED:
OVERSEAS WORKERS
1. he is in service at the time of his
disability
The State shall deploy overseas Filipino
2. if separated, he has rendered at
workers only in countries where the rights of
least 3 years of service and has
paid at least 6 monthly contributions
Filipino migrant workers are protected. The
in the 12- month period immediately
government recognizes any of the following as a
preceding the disability
guarantee for the protection of the receiving
country of the rights of overseas Filipino
HOWEVER:
workers:
A member cannot enjoy
temporary total disability benefit and sick leave
1. It has existing labor and social laws
pay simultaneously.
protecting the rights of migrant
In no case shall it be less than
workers;
70 pesos a day.
2. It is a signatory to multilateral
conventions, declarations or
SURVIVORSHIP BENEFITS: resolutions relating to the protection
of migrant workers;
Upon the death of a member, the 3. It has concluded a bilateral
primary beneficiaries shall be entitled to: agreement or arrangement with the
survivorship pension, PROVIDED: government protecting the rights of
a. member was in service at the time of his overseas Filipino workers; and,
death 4. It is taking positive, concrete
b. if separated from service, has rendered measures to protect the rights of
at least 3 years of service and paid 36 migrant workers.
monthly contributions with the 5- year
period immediately preceding his death
JURISDICTION
or has paid a total of at least 180
monthly contributions.
- NLRC
LIFE INSURANCE BENEFITS RA 8042 has transferred to the NLRC
the jurisdiction over employer-employee cases
All employees except members of the 1. Money Claims.-, the Labor Arbiters of
AFP and the PNP shall be compulsorily covered the National Labor Relations Commission
with life insurance. (NLRC) shall have the original and exclusive
jurisdiction to hear and decide, the claims arising
PRESCRIPTION OF CLAIMS out of an employer-employee relationship or by
Page 58 of 70
virtue of any law or contract involving Filipino A criminal action arising from illegal
workers for overseas deployment including recruitment shall be filed with the RTC of the
claims for actual, moral, exemplary and other province or city where the offense was
forms of damages. committed or where the offended party actually
resides at the time of the commission of the
LIABILITIES offense. The court where the criminal action is
first filed shall acquire jurisdiction to the
The liability of the principal/employer exclusion of other courts.
and the recruitment/placement agency for any
and all claims under this section shall be joint
and several. The performance bond to be filed PRESCRIPTIVE PERIODS
by the recruitment/placement agency, as
provided by law, shall be answerable for all Illegal recruitment cases under this Act
money claims, or damages that may be awarded shall prescribe in five (5) years; provided,
to the workers. If the recruitment/placement however, That illegal recruitment cases involving
agency is a juridical being, the corporate officers economic sabotage as defined herein shall
and directors and partners as the case may be, prescribe in twenty (20) years. (Sec. 12, R.A.
shall themselves be jointly and solidarily liable 8042)
with the corporation or partnership for the
aforesaid claims and damages. PROHIBITED ACTS IN THE RECRUITMENT
AND PLACEMENT OF WORKERS UNDER
THE LABOR CODE ARE RETAINED UNDER
Such liabilities shall continue during the entire THE MIGRANT WORKERS ACT WITH THE
period or duration of the employment contract ADDITION OF THE FOLLOWING:
and shall not be affected by any substitution,
amendment or modification made locally or in a 1. Failure to deploy employee without valid
foreign country of the said contract. reason
2. Failure to reimburse expenses incurred in
POEA connection with his documentation and
processing in cases that deployment did not
The POEA retains original and exclusive take place
jurisdiction to hear and decide:
DIFFERENT FUNDS CREATED UNDER THE
1. all cases which are administrative in LAW:
character, involving or arising out of
violations of rules and regulations relating to 1. Repatriation fund
licensing and registration of recruitment and 2. Loan Guaranty fund
employment agencies or entities; and, 3. Legal Assistance fund
2. disciplinary action cases and other special 4. Congressional Migrant Workers Scholarship
cases which are administrative in character, fund
involving employers, principals, contracting
partners and Filipino migrant workers. GOVERNMENT AGENCIES MOBILIZED:
Three Month's Pay Under RA 8042 1. DFA

2. DOLE
The date the employment termination 3. POEA
occured is material. On or after 15 July 1995, 4. OWWA
the law to apply is RA 8042.
Under Section 10 of RA 8042, a worker
GUIDELINES ON THE RIGHT TO
dismissed from overseas employment without
ORGANIZE OF GOVERNMENT EMPLOYEES
just, valid or authorized cause as defined by law
(E. O. 180)
or contract, is entitled to the full reimbursement
of his placement fee with interest at twelve
percent (12%) per annum, plus his salary for the COVERAGE
unexpired portion of his employment contract or -Applies to all employees of all
for three (3) months for every year of the branches, subdivisions, instrumentalities and
unexpired term, whichever is LESS. agencies of the government, including
government- owned or controlled corporations
WITH original charters
VENUE
Page 59 of 70
All government employees can form, Service AND the Department of Labor
join or assist employees organizations of their and Employment .
own choosing for the furtherance and protection
of their interest. They can also form in
conjunction with appropriate government 13TH MONTH PAY LAW
authorities, labor- management committees, (P.D. 851)
works councils and other forms of workers
participation schemes to achieve the same
objectives. WHO ARE EXCLUDED FROM
High- level employees whose functions COVERAGE:
are normally considered as policy- making or
managerial or whose duties are of a highly 1. government employees
confidential nature shall not be eligible to join the 2. employees already receiving 13th month pay
organization of rank and file government 3. household helpers
employees. 4. employees paid purely on commission basis
PROTECTION OF THE RIGHT TO

ORGANIZE WHAT CAN BE CONSIDERED AS 13TH
MONTH PAY:
1. Government employees shall not be
discriminated against in respect of 1. Christmas bonus
their employment by reason of their 2. Midyear bonuses
membership in employees 3. Cash bonuses
organization or participation in the
normal activities of the organization.
2. Government authorities shall not
interfere in the establishment,
functioning or administration of
government employees
organization through acts designed
to place such organization under the
control of the government authority
REGISTRATION
- Government employees
organization shall register with the Civil
Page 60 of 70
X. SOCIAL WELFARE LEGISLATION

COMPARATIVE CHART
SSS (RA 1161)) GSIS (RA 8291 ECC (PD 626)
To establish, develop, promote and perfect a

STATEMENT
sound and viable tax exempt social security
OF POLICIES system suitable to the needs of the people which
shall provide employees and their beneficiaries
protection against the hazards of disability,
sickness, old age, death and other contingencies
resulting in loss of income or financial burden.
EMPLOYER Employers in private sector All government agencies and All employers (private or public)
instrumentalities , including GOCCs
COVERAGE
COMPULSORY 1. Employees not over 60 years of age and their 1. Compulsory for all employees Any person compulsorily covered
employers. receiving compensation who have not by GSIS or SSS
2. 2. Domestic helpers whose monthly income reached compulsory retirement age Any person employed as casual,
is not less than P1,000.00. irrespective of employment status. emergency, temporary, substitute
3. Self-employed persons as determined by the or contractual
Commission : a) self-employed professionals; *Including barangay and sanggunian
b) partners and single proprietors; c) actors officials
and actresses, directors, etc; d) professional
athletes, coaches, trainers, etc. and e)
individual farmers and fishermen.
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-
Mac Romero, Filmar Callejo, Sally Silva, Joy Mejia, Howard Arzadon
Page 61 of 70
VOLUNTARY 1. Spouses who devote full time to managing of

household and family affairs, UNLESS they
are also engaged in other vocation or
employment which is subject to
MANDATORY coverage.
2. 2. Filipinos recruited by foreign-based
employers for employment abroad.
3. Employees separated from employment by
paying TOTAL contribution (meaning : both
employer and employees share)
BY-ARRANGEMENT
Any foreign government, international
organization or their wholly owned instrumentality
MAT enter into agreement for the inclusion of
their employees EXCEPT those covered by their
own respective civil service retirement systems.
1. AFP
EXEMPTED 1. purely CASUAL and not for purpose or 2. PNP
occupation of the employer. 3. Contractuals who have no employer
EMPLOYMENT
2. Performed in an alien vessel by an employee and employee relationship
if he is employed when such vessel is outside
of the Philippines. * Members of the judiciary and the
3. By the government of the Philippines or Constitutional Commissions life
instrumentality or agent thereof. insurance only
4. Foreign government of international
organization.
Page 62 of 70
BENEFITS 1. Monthly pension 1. Life Insurance

2. Dependents pension 2. Retirement
3. Retirement 3. Disability
4. Death Benefits 4. Survivorship
5. Permanent Disability benefits 5. Separation
6. Funeral 6. Unemployment
7. Sickness
8. Maternity * Life insurance for the members of the
judiciary and constitutional commissions.
BENEFICIARIES
PRIMARY 1. Dependent spouse until remarriage 1. Legal, dependent spouse until

2. Dependent legitimate, legitimated or legally remarriage
adopted and illegitimate children 2. Dependent children defines as the
legitimate, legitimated, legally
adopted child, including the
illegitimate child, who is unmarried,
not gainfully employed, not over the
age of majority, or is over the age of
majority but is incapacitated and
incapable of self-support.
SECONDARY 1. In the absence of primary beneficiaries, 1. Dependent parents

dependent parents 2. Legitimate descendants subject to the
restrictions on dependent children,
the legitimate descendants
Page 63 of 70
CONTRIBUTIONS 1. Employers contributions 1. Employers contribution

2. Employees contribution 2. Employees contribution
3. Government contribution
MODE 1. For those with employees Employee 1. The employer shall deduct each
OF COLLECTION contribution shall be deducted by the month from the salary or compensation of
employees based on an approved schedule. each employee the contribution payment.
Employer shall remit BOTH EMPLOYEE AND Employer shall remit to the system within
EMPLOYER contribution to the system. 10 days the Employer-Employee
2. For self-employed Self-employed shall pay contributions.
BOTH EMPLOYER AND EMPLOYEE
contributions to the system.
3. For government contribution remitted to the
SSS within the first 10 days of each calendar
month following the month got which they are
applicable.
* Contributions under this Act in case where an

employer refuses or neglects to pay the same
shall be collected by the SS in the same manner
as taxes are made collectable under the National
Internal Revenue Code.
Page 64 of 70
PENALTIES 1. False statement or misrepresentation as to 1. Participating directly or indirectly in

any compensation as to any compensation commission of fraud, collusion,
paid or received or whoever makes or causes falsification or misrepresentation in
to be made any false statement of a material any transaction of the GSIS Article
fact in any claim for any benefit payable 172 of the RPC (Falsification by
under this Act Art. 172 of the RPC private individuals and use of falsified
(falsification be private individuals and documents)
falsified documents) 2. Receiving money or check involving
2. Obtaining or receiving any money or check provision of this act, without being
without being entitled thereto with intent to entities with intent to defraud fine of
defraud any covered employee, employer or P5,000.00 to P20,000.0 or
SSS fine of P5,000.00 to P20,000.00 and imprisonment of 6 years and 1 day to
imprisonment of 6 years and 1 day to 12 12 years or both.
years or both. 3. Refusing to comply with the
3. Buys, sells, offers for sale, uses, transfers, provisions of this Act fine of
takes or gives in exchange, or pledges or P5,000.00 to P20,000.00 or
give in pledge, except as authorized in this imprisonment of 6 years and 1 day to
Act fine of P5,000.00 to P20,000.00 or 12 years or both.
imprisonment of 6 years and 1 day to 12 4. Failure to include in the annual
years or both. budget corresponding employer
4. Makes, alters, forges or counterfeits any contributions by finance officers,
stamps, coupon, ticket or other device treasurers, cashiers, etc. 6 months
prescribed by the Commission, or uses, sells, and 1 day to 6 years imprisonment
lends or in his possession any such altered, and a fine of P3,000.00 to P6,000.00
forged, or counterfeited materials, or makes, and absolute perpetual
uses or sells or has in his possession any disqualification from holding office.
materials used in the manufacture of such 5. Misappropriation or taking of funds
stamp, coupon, ticket or book fine of and property of the GSIS for
P5,000.00 to P20,000.00 or imprisonment of purposes other than authorized in this
Page 65 of 70
6 years and 1 day to 12 years or both. Act Article 217 of RPC

5. Fails or refuses to comply with the provisions (Malversation of public funds or
promulgated by the Commission fine of properties).
P5,000.00 ot P20,000.00 or imprisonment of 6. For head of officers who fails or
6 years and 1 day to 12 years or both. refuses payment or remittance of
6. Misappropriation of funds penalties under GSIS payments within 30 days from
Article 217 of the RPC. the time its demandable
7. Failure to remit the said deductions to the imprisonment of 1 year to 5 years and
SSS within 30 days from date they become fine of P10,000.00 to P20,000.00 and
due Article 315 of the RPC (Estafa). aboslute perpetual disqualification.
ENTITLED TO Member has reached age of 60 or 65. OPTIONAL. Member meets the ff :
RETIREMENT 1. has worked for at least 15 years.
BENEFITS 2. Is at least 60 years of age at time of
retirement, and
3. Is not receiving monthly pension
benefit from permanent total disability
COMPULSORY. Member is 65 years

with at least 15 years of service (if
service is less than 15 years, he may be
allowed to continue in accordance with
Civil Service Rules and Regulations.)
1. Complete loss of sight in both eyes.
DISABILITIES DEEMED 2. Loss of two limbs at or above the ankle or 1. Complete loss of sight in both eyes. 1. Temporary total disability lasting
PERMANENT TOTAL wrist. 2. Loss of two limbs at or above the over 120 days.
3. Permanent complete paralysis of two limbs. ankle or wrist. 2. Complete loss of sight in both
4. Brain injury resulting in incurable imbecility or 3. Permanent complete paralysis of two eyes.
insanity. limbs. 3. Loss of limbs at or above the ankle
5. Other cases determined by SSS. 4. Brain injury resulting in incurable or wrist.
Page 66 of 70
imbecility or insanity 4. Permanent complete paralysis of

5. Other cases determined by GSIS. two limbs.
5. Brain injury resulting in incurable
imbecility or insanity.
6. Other cases determined by
Medical Director of SSS
DISABILITIES DEEMED Complete and permanent loss of use of a Complete and permanent loss of a Complete and permanent loss of
PERMANENT PARTIAL digit, limb, ear (or both ears), hearing in one or digit, limb, ear (or both ears), hearing in use of a digit, limb, ear (or both ears),
both ears, or sight in one eye. one or both ears, or sight in one eye. hearing in one or both ears, or sight in
one eye.
SYSTEM EXCUSED For permanent disability in the ff. cases : For all contingencies in the ff. cases :
FROM LIABILITY 1. grave misconduct 1. intoxication
2. notorious negligence 2. willful intent to injure or kill ones
3. willful intent to kill self or another self or another
4. habitual intoxication 3. notorious negligence
AMOUNT OF FUNERAL P12,000.00 P12,000.00 (to be raised to P18,000.00 P10,000.00

BENEFITS in year 2002)
Employer And Employee Employer
WHO PAYS Employer and Employee
REMITTANCES?
COVERAGE Occurrence of contingency whether or not Occurrence of contingency whether or Work-related illness or injury.
work-connected. not work-connected.
NOTICE Employee to notify employer within 5 days Employee to notify employer within
Page 67 of 70
REQUIREMENT from injury or illness(unless no longer 5 days from injury or illness (unless
necessary under the exceptions) it is no longer necessary under the
Employer to notify SSS within 5 days from exceptions)
notice. Employer to record the same in
logbook within 5 days from notice.
Employer to notify SSS or GSIS
within 5 days from recording in
logbook.
EFFECT OF Legal And eligible claimant may still SSS absolved unless notified of other
ERRONEOUS demand benefits, without prejudice to claim prior to payment.
PAYMENT right of GSIS to sue improper claimant.
DISPUTE SETTLEMENT 1. File claim with SSS. 1. File claim with GSIS. 1. File claim with SSS and GSIS.
2. Appeal to Social Security Commission. 2. Appeal to GSIS Board. 2. Appeal to ECC.
3. Appeal to CA. 3. Appeal to CA. 3. Appeal to CA
4. Appeal to SC 4. Appeal to SC. 4. Appeal to SC
* Appeals shall be governed by Rules 43

and 45 of the 1997 Rules of Civil
Procedure
EXCLUSIVENESS OF May Apply for same benefits in EC, if in Whenever other laws provide similar May apply for the same benefits
BENEFITS private sector. benefits for the same contingencies, under SSS, if in the private sector.
May not receive benefits for same members who qualifies has option to May apply for same benefits under
contingency under GSIS offers more (he may choose. If benefits chosen are less GSIS, if in public sector (applying
then receive deficiency) than under GSIS, he may get the Mazo Sugar Central vs CA case.
Page 68 of 70
difference.
However, with respect to work-
connected illness and injuries, he
may also recover in full under ECC,
applying the Mazo Sugar Central vs
CA case.
PRESCRIPTIVE 10 years from the time the right of action 4 years from date of contingency
PERIODS accrues. except life and retirement benefits
XI. CHART ON JURISDICTION

Bureau Of Labor Grievance Machinery Voluntary Arbitration Labor Arbiter NLRC
Relations (UTRCCC-M)
1. Inter-union dispute 1. Interpretation or 1. Unresolved Grievances 1. ULP 1. Appellate jurisdiction
implementation of the over Labor Arbiters
2. Intra-union dispute CBA 2. Agreement on other 2. Termination Disputes
labor dispute(Bargaining 2. Injunction
2. Interpretation or deadlock, ULP) 3. Reinstatement-with
3. Labor Management enforcement of cases involving wages
Relations except company personnel 3. Contempt
interpretation or policies 4. Claims of damages
implementation of the arising from E-E
CBA relationship
Page 69 of 70
5. Cases involving
prohibited acts in strikes
(ART. 264)
6. Claims arising from E-E

relationship including
those of domestic
service, involving
amount exceeding
P5,000.0
7. Migrant Worker Cases
Page 70 of 70

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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

ART. 2. DATE OF EFFECTIVITY ART 4. CONSTRUCTION IN FAVOR OF

1. Right to Organize - This rule is applicable if there is a doubt as

and promote the welfare of the members of the ART 6. APPLICABILITY

MANAGEMENT RIGHTS: (CPST) - PURPOSE of the provision: intended to

CHAPTER II RECRUITMENT AND PLACEMENT - any act

1. Is at least 15 years of age; and ENTITIES AUTHORIZED TO RECRUIT

- POEA has taken over the functions of the

involving employers, principals, contracting valid any agreement to receive less

1. Seamen or mariners: 80% of the basic CHAPTER II

11. Vandalism or destroying company property;

F Failure to actually deploy without valid TITLE II

Illegal Recruitment cases under RA 8042 shall

BOOK TWO APPRENTICESHIP AGREEMENT - an

TITLE I ON-THE-JOB TRAINING the practical work

ART 45. DEFINITIONS ART 59. QUALIFICATIONS OF

1. Apprentice - Only employers in highly technical

ART 58. DEFINITION OF TERMS Requisites for a VALID

ART 71. DEDUCTIBILITY OF TRAINING

5. Highly technical 5. Semi-skilled /

APPRENTICESHIP LEARNERSHIP HANDICAPPED WORKERS - Are those

Duration of employment - no minimum, no GOVERNMENT EMPLOYEES - Refers only to

MANAGERIAL EMPLOYEES - Refer to those

ART 82. COVERAGE FIELD PERSONNEL - Refer to non-

EMPLOYEE - A natural person who is hired, - The existence of employment relationship is

- Only the maximum is prescribed, not minimum.

PURPOSE WAITING TO BE ENGAGED - idle time is not

REGULAR WORKING DAYS: The regular WHEN TRAVEL TIME COMPENSABLE:

ART 85. MEAL PERIODS differential should be based on his

and holidays are required for entitlement to

- The right to OT pay cannot be waived. ART 89. EMERGENCY OVERTIME

SPECIAL HOLIDAYS Note: Compensable whether worked or

1. 85% for all covered employees to be equally

- compensable even - not compensable if - If collection of service charges is abolished,

1. based on an express policy, or

LEGAL REQTS. BEFORE FACILITIES FORMS:

The rule is applicable if it is shown that

2. necessary because of special

1. promissory notes 1. There must be written permission of the

1. the same is customary on the date of

connected with the performance of the work

- A mere statement in a contract with a 4. Contractor has 4. Contractor has no

- This Article did not sweep away the

ART 112. NON-INTERFERENCE IN 1. Workers insurance acquired by the employer

elimination or severe contraction of intentional

REQUISITES : ART 128 ART 129

1. The claim is presented by an employee or 1. Visitorial and 1. Power of the

- Issue Writs of Execution (ART. 128) 5. Person exercising 5. The power is

1. Industrial undertaking between 10PM-6AM

RA 8187 (PATERNITY LEAVE)

individual or in granting said individual

a. employment does not involve CHAPTER IV

1. minimum cash wage TITLE II

WORKMENS COMPENSATON- A general 3. if the injury is sustained elsewhere, the

WORKMENS EMPLOYEES Conditions for an occupational disease

route to or from his workplace and if the

7. POSITIONAL AND LOCAL RISKS 1. by agreement of the parties

ART 168. COMPULSORY COVERAGE STATE INSURANCE FUND: all covered

a. Illegitimate children and legitimate

PERMANENT PARTIAL - if as a result of the ART 211. DECLARATION OF POLICY

disputants stand in the proximate relation of 1. for collective bargaining; and

EMPLOYEE- shall not be limited to the TYPES OF LABOR DISPUTES