PROJECT PHOENIX 2016 Labor Laws and Social Legislaions !"# Cecilio Cecilio $# $%&a' Ed#$# Labor Sandards Laws Labor standards refers to the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits, including occupational, safety and health standards (BatongBuhay (BatongBuhay Gold Mines, Inc., vs. Dela Serna, et. al., G.R. No. 86963, ugust 6, !999" They are covered by Books I to I of the Labor !ode" Labor Relaions Law #a$or relations relations la%s are the laws, rules and regulations which govern the relationship between employees and their employers, promote the right of the employees to self#organi$ation and collective bargaining, penali$e unfair labor practice, and provide modes for the settlement of labor disputes such as conciliation, mediation, grievance machinery, voluntary arbitration and compulsory arbitration" They are covered by Books % II of the Labor !ode" Social Legislaions Social Social legislati legislations onsare are laws, laws, rules, rules, and regula regulati tions ons that that promot promote e welfa welfare re of all sector sectors s of societ society y" Social #egislationincludes #egislationincludes laws that provide particular kinds of protection or benefits to the society, in furtherance of social &ustice" 'ot all social legislations are labor laws" #a$or la%sdirectly la%sdirectly affect employment they directly govern effects of employment" ll ll labor laws are social legislations" But not all social legislations are labor laws" Consr%cion in (a)or o( labor ll doubts in the implementation and interpretation of the provisions of this !ode, including its implementing rules and regulations, shall be resolved in favor of labor" The liberality of law in favor of the working man and woman still prevails and the official agency charged by law to implement the constitutional guarantee guarantee of social &ustice should adopt a liberal attitude in favor of the employee in deciding claims for compensability, especially in light of compassionate policy towards labor which the )*+ !onstitution vivifies and enhances" (-mployees. !ompensation !ommission vs" !ourt of ppeals, /"0" 'o" )1)232, )3 'ovember )**4, 143 5!0 13+6 Cor*orae O((icers are no co)ered b" +e Labor Code 5ection 5ection 12 of the !orporation !orporation !ode plainly states that the corporate corporate officers officers are the 7resident, 7resident, 5ecretary 5ecretary,, Treasurer and such other officers as may be provided for in the By#Laws"8hoever are the corporate officers enumerated in the by#laws are the exclusive 9fficers of the corporation and the Board has no power to create other 9ffices without amending first the corporate By#laws"&Matling By#laws"&Matling Industrial 'or(oration 'or(oration vs. 'oros, )cto$er !3, *+!+" POE! :nder -xecutive 9rder 'o" * (;ay ), )*+16 and -xecutive 9rder 'o" 13 (-"9" 'o" 136, the 79- was established and mandated to assume the functions of the 9verseas -mployment
rans ction )verseas 'or(oration, vs. Secretary o- #a$or, G.R. No. !+983, Se(te/$er , !9901 ,one" Clai-s o( O./ 8e reiterate our finding in 5errano v" /allant ;aritime that limiting wages that should be recovered by an illegally dismissed overseas worker to three months is both a violation of due process and the equal protection clauses of the !onstitution" (5ameer 9verseas 7lacement vs" !abiles, ugust 2, 1=)36 Raes o( O./ Re-iance 5eamen and mariners % +=? of the basic salary, !onstruction companies and their workers % =? of the basic salary, 7rofessional workers (e"g" doctors, nurses, engineers, teachers6 whose employment contracts provide for free board and lodging % =? of the basic salary, 7rofessionals without free board and lodging % 2=? of the basic salary,
1
license is license is a document issued by the
automa automatic tic revoca revocati tion on of the licens license e or or auth authori ority ty &rt. 39e1"@ 39e1"@ forf forfei eitu ture re of the the cas cash h and and sur suret ety y bon bonds ds &rt. 39e1"@ 39e1"@ conv convic icti tion on for for the crim crime e of estafa estafa,, if found found guilt guilty y there therefo forr" &4eo(le o- the 4hili((ines vs. 'alon5o, G.R. Nos. !!!+7, !!!+7, Se(te/$er *0, !996"
Prescri*ion o( acion (or illegal recr%i-en Illegal recruitment cases under this ct shall prescribe in five (26 yearsE 7rovided, however, That illegal recruitment cases involving involving economic sabotage sabotage as defined herein shall prescribe prescribe in twenty twenty (1=6 years" &Section &Section !*, Re(u$lic Re(u$lic ct 8+*" $ocrine o( I-*%ed 5nowledge
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The theory of imputed knowledge ascribes the knowledge of the agent, to the principal, employer not the other way around"The knowledge of the principal#foreign employer cannot, therefore, be imputed to its agent"&Sunace International Manage/ent Inc. vs. N#R', G.R. No. !6!00, anuary *, *++6" !**renice n a((rentice is a worker who is undergoing training for an approved apprenticeable occupation covered by a written apprenticeship agreement with an individual employer" !**reniceable Occ%*aion n a((renticea$le occu(ation means any trade, form of employment or occupation which requires more than three (C6 months of practical training on the &ob supplemented by related theoretical instruction" Re4%ire-ens (or an a**renice )" ;ust at least be )2 years old as 5ection )1 % of 0epublic ct 'o" *1C) prohibits the employment of minor below )2 years old, except those employed in entertainment business where a necessary permit is issued by the
()6 The primary duty consists of the performance of work directly related to management policies of their employer@ (16 !ustomarily and regularly exercise discretion and independent &udgment@ and (C6 (i6 0egularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or subdivision thereof@ or (ii6 execute under general supervision work along speciali$ed or technical lines requiring special training, experience, or knowledge@ or (iii6 execute, under general supervision, special assignments and tasks@ and (36 8ho do not devote more than 1= percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs ()6, (16 and (C6 above" &Rule I, Section *&c", #a$or 'ode I/(le/enting Rules and Regulation, Boo; III" %s $ri)ers and Cond%cors are no .ield Personnel The driver is under constant supervision while in the performance of this work" Ge cannot be considered field personnel" &uto Bus rans(ort Syste/s, Inc. vs. Bautista, G.R. No. !6360, May !6, *++" Ho%rs wor&ed The following shall be considered as compensable hours workedE (a6 ll time during which an employee is required to be on duty or to be at the employerHs premises or to be at a prescribed work place@ and (b6 ll time during which an employee is suffered or permitted to work" &Section 3, Rule I, #a$or 'ode I/(le/enting Rules and Regulation, Boo; III" /or&ing w+ile slee*ing 5leepingwhile on duty is compensable if the nature of the employee.s work allows sleeping without interrupting or pre&udicing work or when there is an agreement between the employee and his employer to that effect" or example, a truck helper may sleep after performing his task and while his truck is traveling on its way to its assignment" But of course, the same may not be done by the driver" /or&ing w+ile on call iscompensable if the employee is required to remain on call in the employer.s premises or so close thereto that he cannot use the time effectively and gainfully for h is own purpose" R%les on -eal *eriods 0est periods or coffee breaks running from five (26 to twenty (1=6 minutes shall be considered as compensable working time"Thus, the eight#hour work period does not include the meal break" 'owhere in the law may it be inferred that employees must take their meals within the company premises" -mployees are not prohibited from going out of the premises as long as they return to their posts on time" 7rivate respondentHs act, therefore, of going home to take his dinner does not constitute abandonment"&4hili((ine ir #ines, Inc. vs. National #a$or Relations 'o//ission, G.R. No. !3*8+,
rendered service in excess of said number of hours" (-mphasis supplied6 &#egahi vs. National #a$or Relations 'o//ission,G.R. No. !***+, Nove/$er !8, !999" attycdduka To be eniled o wo 23 da"s s%ccessi)e +olida"s7 1. 9ne must be present on the day immediately preceding the first holiday@ or 2. 9ne is on leave with pay Two Reg%lar Holida"s .alling on +e Sa-e $a" 8hen raw ng Jagitingan falls on the same day as ;aundy Thursday or /ood riday, a covered employee is entitled to at least two hundred percent (1==?6 of hisFher basic wage even if said day is unworked" 8here the employee is required to work on that day, heFshe is entitled to an additional )==? of the basic wage" &*+!* =and$oo; on >or;ers? Statutory Monetary Bene-itsDole Bureau o- >or;ing 'onditions" ,on+l" *aid e-*lo"ees are no eniled o +olida" *a" ;onthly paid employees are not entitled to the holiday pay if their oal ann%al inco-e is di)ided b" 869 da"s resulting in a wage which is beyond the minimum wage per day because they are considered paid every day of the year including holidays, rest days and other n on#working days" Re4%isies (or +e En:o"-en o( Ser)ice Inceni)e Lea)e )" total of 2 days leave in one year with pay 1" The employee must have been in the service for at least ) year whether broken or continuous C" If unused the 2 days are paid their cash equivalent at the end of the year 3" It covers all employees except the general exceptions and establishments already giving sick leavesFvacation leaves with pay for at least 2 days" Service charge If the establishments like hotel, motels, restaurants and the likes collect service charges andFor the customers give tips for their services the following rules must be observedE )" 5ervices#charges or compensation for service rendered 1" Tips are for the recognition for satisfactory or efficient service C" The service charges must be pooled 3" The amount collected is divided between the company ()2?6 and employees (+2?6 2" It shall be given twice a month with intervals of not more than )2 days 4" If discontinued, removed, or stopped, the average, share of the employees of their service charge or tips shall be integrated with their basic wage .aciliies are ded%cible (ro- wages
(a6 8ages shall be paid not less than once every two (16 weeks or twice a month at intervals not exceeding sixteen ()46 days, unless payment cannot be made with such regularity due to force ma&eure or circumstances beyond the employerHs control in which case the employer shall pay the wages immediately after such force ma&eure or circumstances have ceased" (b6 In case of payment of wages by results involving work which cannot be finished in two (16 weeks, payment shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed" inal settlement shall be made immediately upon completion of the work" &Section 3, Rule @III, I/(le/enting Rules and Regulations o- Boo; III o- the # a$or 'ode" Job conracing There is D&ob contractingD where (a6 The contractor carries on a distinct and independent business and undertakes the contract work on his account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of his work except as to the results thereof@ (b6 The contractor has substantial capital or investment@ and (c6 The agreement between the principal and the contractor or subcontractor assures the contractual employeesH entitlement to all labor and occupational safety and health standards, free exercise of the right to self#organi$ation, security of tenure, and social welfare benefits"&Ba$as vs. #oren5o Shi((ing, Dece/$er !, *+!+" $e*ar-en Order No# 1;!' No)e-ber 1' 2011 5ubstantial capital refers to paid % up capital stocksFshares of at least three million pesos (7hp C,===,==="==6 in the case of corporations, partnerships and cooperatives@ in the case of single proprietorship, a net worth of at least three million pesos (7hp C,===,==="==6 Ele-ens o( labor < onl" conracing :nder the Labor !ode, two (16 elements must exist for a finding of labor#only contractingE (a6 the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and (b6 the workers recruited and placed by such persons are performing activities directly related to the principal business of such employer" &
:nder rticle )1*, the 0egional ceeds P9000 But even if the amount of the claim exceeds 72,==="==, the claim is not on that account necessary removed from the 0egional %al cond%c or (a)or 8e have reviewed carefully the records of this case and found no convincing evidence to sustain complainant.s charges" 8hat we perceive to have been committed by respondent &udge are casual gestures of friendship and camaraderie, nothing more, nothing less" In kissing complainant, we find no indication that respondent was motivated by malice or lewd design" -vidently, she misunderstood his actuations and construed them as work#related sexual harassment under 0"" +" &tty. Susan M. uino vs. =on. 2rnesto D. costa, 4residing udge, 'ourt o- a ((eals, . M. No. '7+!7!, (ril *, *++*" ,aerni" Lea)e %nder Re*%blic !c No# 22 SSS Law3 female member who +as *aid a leas +ree 83 -on+l" conrib%ions in the twelve#month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent ()==?6 of her average daily salary credit for si>" 603 da"s or se)en";eig+ ?3 da"s in case o( caesarean deli)er"# Paerni" ene(i R#!# 1?3 This benefit shall apply to the first four deliveries or miscarriage of the employee.s lawful wife with whom he is cohabiting" or this purpose, cohabiting refers to the obligation of the husband and wife to live together" 8here the 7
spouses are not physically living together because of the work station or occupation, the male employee is still entitled to the paternity leave benefit" The leave shall be for seven (6 days, with full pay, consisting of basic salary and mandatory allowances fixed by the 0egional 8age Board, if any, provided that his pay shall not be less than the mandated minimum wage" vailment of the paternity leave may be after the delivery, without pre&udice to an employer.s policy of allowing the employee to avail of the benefit before or during the delivery, provided that the total number of days shall not be more than seven (6 days for each covered delivery" &=and$oo; on >or;ers? Statutory Monetary Bene-its, (.38" ! *olic" *ro+ibiing an e-*lo"ee (ro- +a)ing a relaions+i* wi+ an e-*lo"ee o( a co-*eior co-*an" is a )alid e>ercise o( -anage-en *rerogai)e /laxo has a right to guard its trade secrets, manufacturing formulas, marketing strategies and other confidential programs and information from competitors, especially so that it and stra are rival companies in the highly competitive pharmaceutical industry" The prohibition against personal or marital relationships with employees of competitor companies upon /laxo.s employees is reasonable under the circumstances because relationships of that nature might compromise the interests of the company" In laying down the assailed company policy, /laxo only aims to protect its interests against the possibility that a competitor company will gain access to its secrets and p rocedures" &Duncan ssociation o- Detail/an74G>) vs. Glao >ellco/e 4hili((ines, Inc., G.R. No. !6*99, Se(te/$er !0, *++" Re*%blic !c =?10 < ,agna Cara o( /o-en -xpulsion and non#readmission of women faculty, due to pregnancy outside of marriage shall be outlawed" 'o school shall turn out or refuse admission to a female student, solely on the account of her having contracted pregnancy outside of marriage during her term in school" >5ection )C (c6K woman employee having rendered continuous aggregate employment service of at least six (46 months for the last twelve ()16 months shall be entitled to a special leave benefit of two (16 months with full pay based on her gross monthly compensation following surgery caused by gynecological disorders" &Section !8" Republic Act No. !!"# – $romotion o% &reast%eeding It is hereby mandated that all health and non#health facilities, establishments or institutions shall establish lactation stations" The lactation stations shall be adequately provided with the necessary equipment and facilities"The lactation station shall not be located in the toilet" E-*lo"-en o( C+ildren !hildren below fifteen ()26 years of age shall not be employed except when a child works directly under the sole responsibility of hisFher parents or legal guardian and where only members of hisFher family are employed provided that hisFher employment neither endangers hisFher life, safety, health, and morals, nor impairs hisFher normal development, providedfurther that the parent or legal guardian shall provide the said child with the prescribed primary andFor secondary education" or purposes of this rticle, the term DchildD shall apply to all persons under eighteen ()+6 years of age" &Section *, Re(u$lic ct No. 9*3!" Ho%rs o( /or& o( a /or&ing C+ild ()6 child below fifteen ()26 years of age may be allowed to work for not more than twenty (1=6 hours a week provided that the work shall not be more than four (36 hours at any given day@(16 child fifteen ()26 years of age but below eighteen ()+6 shall not be allowed to work for more than eight (+6 hours a day, and in no case beyond forty (3=6 hours a week@(C6 'o child below fifteen ()26 years of age shall be allowed to work between eight oHclock in the evening and six oHclock in the morning of the following day and no child fifteen ()26 years of age but below eighteen ()+6 shall be allowed to work between ten oHclock in the evening and six oHclock in the morning of the following day"&Section 3, Re(u$lic ct No. 9*3!" Re*%blic !c No# 10861 < aas 5asa-ba+a" anuary )+, 1=)C" ll articles or provisions of !hapter III of 7residential
8hile a+o-ewor&er is one who performs in or about his home any processing of goods or materials, in whole or in part which have been furnished directly or indirectly by an e mployer and thereafter to be returned to the latter" Re*%blic !c No# 10191 < +e nig+ wor&ers law It repealed rticles )C= and )C) of the Labor !ode The new provisions in the Labor !ode covering rticles )23 to )4) are brought about by 0epublic ct 'o" )=)2) which was approved on une 1), 1=))" This law also repealed rticles )C= and )C) of the Labor !ode and abolished the provisions of law which prohibits night work for women# Co)erage o( Nig+ /or& This chapter shall apply to all persons, who shall be employed or permitted or suffered to work at night except those employed in agriculture, stock raising, fishing, maritime transport and inland navigation, during a period of not less than seven (6 consecutive hours, including the interval from midnight to five o.clock in the morning" Heal+ !ssess-en !ricle 1993 t their request, workers shall have the right to undergo a health assessment without charge and to receive advice on how to reduce or avoid health problems associated with their workE (a6 Before taking up an assignment as a night worker@ (b6 t regular intervals during such an assignment@ and (c6 If they experience health problems during such an assignment which are not caused by factors other than the performance of night work" Labor Relaions Law #a$or relations la%s are the laws, rules and regulations which govern the relationship between employees and their employers, promote the right of the employees to self#organi$ation and collective bargaining, penali$e unfair labor practice, and provide modes for the settlement of labor disputes such as conciliation, mediation, grievance machinery, voluntary arbitration and compulsory arbitration" They are covered by Books % II of the Labor !ode" Co-*osiion o( +e NLRC based on R# !# =8? The 'ational Labor 0elations !ommission shall be composed of eight (+6 divisions with three members which shall be chosen only from among the nominees of the %or;ers and e/(loyers organi5ations, respectively" The !hairman and the seven (6 members shall come from the public sector, with the latter to be chosen preferably from among the incumbent labor arbiters" The !ommission may sit en $anc or in eight (+6 divisions, each composed of three (C6members" The !ommission shall sit en $anc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches and formulating policies affecting its administration and operations" 9f the eight (+6 divisions, the -irst, second, third, -ourth, -i-th and sith divisions shall handle cases coming from the National 'a(ital Regionand other (arts o- #u5on, the seventh and eighth divisions, cases -ro/ @isayas and Mindanao, respectively The divisions of the !ommission shall have exclusive appellate &urisdiction over cases within their respective territorial &urisdiction" !**oinees o NLRC no s%b:ec o con(ir-aion o( +e Co--ission on !**oin-ens
4" -xcept claims for -mployees !ompensation, 5ocial 5ecurity, ;edicare and maternity benefits, all other claims arising from employer#employee relations, including those of persons in domestic or household service, involving an amount exceeding five thousand pesos (72,==="==6 regardless of whether accompanied with a claim for reinstatement" E>ce* +ose o( +e &asa-ba+a"' Secion 8?' R! 108613 " !ases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies J%risdiciono)erO)erseas .ili*ino /or&ers The Labor rbiter has original and exclusive &urisdiction over claims arising out of an employer#employee relationship or by virtue of any law or contract involving
(c6 oluntary dissolution by the members &Re(u$lic ct No. 98!, May *, *++0" Re(u$lic ct No. 98!which lapsed into law on ;ay 12, 1== has effectively reduced to &ust three (C6 the grounds for the cancellation of registration of a legitimate labor organi$ation" :nder the old provisions of rticle 1C*, there were ten grounds for the cancellation of union registration" ,i>%re o( e-*lo"ees in one %nion is no a gro%nd (or cancellaion o( is regisraion !learly then, for the purpose of de#certifying a union, it is not enough to establish that the rank#and#file union includes ineligible employees in its membership" 7ursuant to rticle 1C* (a6 and (c6 of the Labor !ode, it must be shown that there was misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by#laws or amendments thereto, the minutes of ratification, or in connection with the election of officers, minutes of the election of officers, the list of voters, or failure to submit these documents together with the list of the newly elected# appointed officers and their postal addresses to the BL0" &ir 4hili((ines 'or(oration vs. Bureau o- #a$or Relations, G.R. No. !39 une **, *++6" Re4%isies (or +e )alidi" o( +e s*ecial assess-en )6 authori$ation by a written resolution of the ma&ority of all the members at the general membership meeting called for the purpose@ 16 secretaryHs record of the minutes of the meeting@ and C6 individual written authori$ation for check off duly signed by the employees concerned" (Ga$riel vs. Secretary o- #a$or and 2/(loy/ent, G.R. No. !!99 March !6, *+++". E-*lo"ees w+o do no +a)e +e rig+ o sel(;organiaion The following are the groups of people whose right to self#organi$ation is restricted by the labor lawsE high ranking government employees, employees of international organi$ations en&oying immunity form suits, managerial employees, members of the 7, 7'7, firemen, &ail guards, confidential employees and employees of the cooperative who are members of that same cooperative" Sec%ri" D%ardsB Rig+ o Sel( Organiaion The security guards and other personnel employed by the security service contractor shall have the right to form, &oin or assist in the formation of a labor organi$ation of their own choosing for purposes of collective bargaining and to engage in concerted activities which are not contrary to law including the right to strike"&Section !+, De(art/ent )rder N+. ! Series o- *++!, Dece/$er !8, *++!" Do)ern-en e-*lo"ees do no +a)e +e rig+ o sri&e The !ourt can concede hypothetically that the protest rally and gathering in question did not involve some specific material demand" But then the absence of such economic#related demand, even if true, did not, under the premises, make such mass action less of a prohibited concerted activity" or, as articulated earlier, any collective activity undertaken by government employees with the intent of effecting work stoppage or service disruption in order to reali$e their demands or force concessions, economic or otherwise,is a prohibited concerted mass action and doubtless actionable administratively. xxxAi1n the a$sence o- statute, (u$lic e/(loyees do not have the right to engage in concerted %or; sto((ages -or any (ur(ose &Govern/ent Service Insurance Syste/ vs. Ha(isanan ng /gaManggaga%asa GSIS, G.R. No. !0+!3*, Dece/$er 6, *++6" n(air labor *racice :nfair labor practice refers to acts that violate the workers. right to organi$e" The prohibited acts are related to the workers. right to self#organi$ation and to the observance of a !ollective Bargaining greement" 8ithout that element, the acts, no matter how unfair, are not unfair labor practices" &4hilco/ 2/(loyees nion vs. 4hili((ine Glo$al 'o//unications, G.R. No. !3!, uly !0, *++6" $is-issal d%e o %nion sec%ri" cla%se It has been the &urisprudential rule for quite sometime that the employer is not considered guilty of unfair labor practice if it merely complied in good faith with the request of the certified union for the dismissal of employees expelled from the union pursuant to the union security clause in the !B &Soriano v. tien5a, G.R. No. 686!9, March !6, !989, !0! S'R *8,*897*9+". Gence, the company may not be ordered to grant either backwages or financial assistance in the form of separation pay as a form of penalty" Thus, where reinstatement is ad&udged, the award of backwages and other benefits continues beyond the date of the Labor rbiter.s decision ordering reinstatement and extends up to the time said order of reinstatement is actually carried out" &)lvido, et. al. vs. 'ourt o- ((eals, G. R. Nos. !!!66 E 60, )cto$er !, *++0" nion Sec%ri" Cla%se 11
:nion 5ecurity !lause # is a stipulation contained in the !ollective Bargaining greement whereby the employer undertakes to recogni$e the right of the union who negotiated the !B to maintain and protect its membership by imposing certain terms and conditions in hiring employees and retention of employment" Co--on T"*es o( nion Sec%ri" Cla%ses !losed shop, :nion shop, ;aintenance of membership clause, agency shop, preferential shop agreement" J%risdicional *recondiions in bargaining ()67ossession of the status of ma&ority representation by the employeesH representative in accordance with any of the means of selection andFor designation provided for by the Labor !ode@ (16 proof of ma&ority representation@ and (C6 a demand to bargain under rticle 12), paragraph (a6, of the 'ew Labor !ode" &ssociated #a$or nions &#" vs. ended o en "ears ; )alid 8e also do not agree that the agreement violates the five#year representation limit mandated by rticle 142" :nder said article, the representation limit for the exclusive bargaining agent applies only when there is an extant !B in full force and effect" In the instant case, the parties agreed to suspend the !B and put in abeyance the limit on the representation period" In sum, we are of the view that the 7L#7L- agreement dated 5eptember 1, )**+, is a valid exercise of the freedom to contract" :nder the principle of inviolability of contracts guaranteed by the !onstitution, the contract must be upheld" &Rivera, et. al. vs. 2s(iritu, G.R. No. !30, anuary *3, *++*" T+e E>cl%si)e argaining Sa%s Canno Do e"ond .i)e Fears In the event however, that the parties, by mutual agreement, enter into a renegotiated contract with a term of three (C6 years or one which does not coincide with the said five#year term and said agreement is ratified by ma&ority of the members in the bargaining unit, the sub&ect contract is valid and legal and therefore, binds the contracting parties" The same will however not adversely affect the right of another union to challenge the ma&ority status of the incumbent bargaining agent within sixty (4=6 days before the lapse of the original five (26 year term of the !B" &<@' #a$or nion7 4hili((ine rans(ort and General >or;ers )rgani5ation vs. Sa/a7Sa/angNag;a;aisangManggaga%a Sa <@'7Solidarity )- Inde(endent and General #a$or )rgani5ations, G.R. No. !06*9, Nove/$er *0, *++9" S%bsi%ionar" docrine 5tated otherwise, the DsubstitutionaryD doctrine only provides that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent" nd it is in the light of this that the phrase Dsaid new agent would have to respect said contractD must be understood" It only means that the employees, thru their new bargaining agent, cannot renege on their collective bargaining contract, except of course to negotiate with management for the shortening thereof" 12
argaining ni $argaining unit is Da group of employees of a given employer, comprised of all or less than all of the entire body of employees, consistent with equity to the employer, indicate to be the best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provisions of the law" &International School lliance o- 2ducators vs. Juisu/$ing, G.R. No. !*88, une !, *+++" Tes in deer-ining +e a**ro*riae bargaining %ni In order to determine the appropriate bargaining unit the 5upreme !ourt has time and again applied the four tests to witE ()6 will of the employees (/lobe
@oluntary Recognition refers to the process by which a legitimate labor union is recogni$ed by the employer as the exclusive bargaining representative or agent in a bargaining unit, reported with the 0egional 9ffice in accordance with 0ule II, 5ection 1, or;s 'or(oration vs. National #a$or Relations 'o//ission, G.R. No. !++!60, March *, !99" !**eals (ro- +e $ecisions o( Aol%nar" !rbiraor or Panel o( Aol%nar" !rbiraors < Co%r o( !**eals The decisions of a voluntary arbitrator fall within the exclusive appellate &urisdiction of the !ourt of ppeals" Indeed, this !ourt took this decision into consideration in approving the )** 0ules of !ivil 7rocedure" &Ni((on 4aint 2/(loyees nion E )lalia vs. 'ourt o- ((eals, G.R. No. !9+!+. Nove/$er !9, *++" Sri&e Stri;eis any temporary stoppage of work by the concerted action of the employees as a result of industrial or labor dispute" labor dispute includes any controversy or matter concerning terms or conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and the employee" &Bu;luran ng Manggaga%asa'loth/an Hnitting 'or(. E Solidarity nions o- the 4hili((ines -or 2/(o%er/ent and Re-or/ vs. 'ourt o- ((eals, G.R. No. !8!8, anuary !0, *++" T+e re4%isies o( a )alid sri&e are -andaor" The requisites for a valid strike are as followsE (a6 a notice of strike filed with the <9L- thirty days before the intended date thereof or fifteen days in case of unfair labor practice@ (b6 strike vote approved by a ma&ority of the total union membership in the bargaining unit concerned obtained by secret ballot in a meeting called for that purpose@ (c6 notice given to the <9L- of the results of the voting at least seven days before the intended strike" These requirements are mandatory and failure of a union to comply therewith renders the strike illegal &4iKero vs. National #a$or Relations 'o//ission, ugust *+, *++" 8e explained in National
Sri&e in )iolaion o( arbiraion < illegal This !ourt has held that strikes staged in violation of agreements providing for arbitration are illegal, since these agreements must be strictly adhered to and respected if their ends are to be achieved" The rationale of the prohibition under rticle 143 is that once &urisdiction over the labor dispute has been properly acquired by competent authority, that &urisdiction should not be interfered with by the application of the coercive processes of a strike" Indeed it is among the chief policies of the 5tate to promote and emphasi$e the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation, and conciliation, as modes of settling labor, or industrial disputes" In lliance of /overnment 8orkers v" ;inister of Labor, !hief ustice ernando declared that the principle behind labor unionism in private industry is that industrial peace cannot be secured through compulsion by law" 0elations between private employers and their employees rest on an essentially voluntary basis, sub&ect to the minimum requirements of wage laws and other labor and welfare legislation"& Su;hothai 'uisine and Restaurant vs. 'ourt o- ((eals, G.R. No. !+30, u ly !0, *++6" ,ere *arici*aion o( a wor&er in a law(%l sri&e s+all no consi%e s%((icien gro%nd (or er-inaion o( +is e-*lo"-en' e)en i( a re*lace-en +ad been +ired b" +e e-*lo"er d%ring s%c+ law(%l sri&e# In Sa/ahangManggaga%asaSul(icio #ines, Inc.7N<# v. Sul(icio #ines, Inc. this !ourt explained that the effects of such illegal strikes, outlined in rticle 143, make a distinction between workers and union officers who participate thereinE an ordinary striking worker cannot be terminated for mere participation in an illegal strike" There must be proof that he or she committed illegal acts during a strike" In all cases, the striker must be identified" But proof beyond reasonable doubt is not required" 5ubstantial evidence available under the attendant circumstances, which may &ustify the imposition of the penalty of dismissal, may suffice" Liability for prohibited acts is to be determined on an individual basis" & Su;hothai 'uisine and Restaurant vs. 'ourt o- ((eals, G.R. No. !+30, u ly !0 , *+ +6" Ele-ens o( e-*lo"er < e-*lo"ee relaions+i* The elements to determine the existence of an employment relationship areE (a6 the selection and engagement of the employee (b6 the payment of wages (c6 the power of dismissal, and (d6 the employer.s power to control" The most important element is the employer.s control of the employee.s conduct, not only as to the result of the work to be done, but also as to the means and methods to accomplish it" &Murillo vs. 'ourt o- ((eals and ssociated Broadcasting 'or(oration, et. el., G.R. No. !66*, une 8, *++0" .%ll bac&wages inally came our ruling in Busta/ante which superseded 4ines 'ity 2ducational 'enter and allowed -ull recovery of backwages without deduction and without qualification pursuant to the express provisions of rticle 1* (now rt 1*36 of the Labor !ode, as amended by 0ep" ct 'o" 4)2, i "e", without any deduction of income the employee may have derived from employment elsewhere from the date of his dismissal up to his reinstatement, that is, covering the entirety of the period of the dismissal"&2uita$le Ban;ing 'or(oration vs. Sadac, G.R. No. !600*, une 8, *++6" Salar" increase no incl%ded in +e co-*%aion o( bac&wages There was no lawful decree or order supporting his claim, such that his salary increases can be made a component in the computation of backwages" 8hat is evident is that salary increases are a mere expectancy" They are, by its nature volatile and are dependent on numerous variables, including the company.s fiscal situation and even the employee.s future performance on the &ob, or the employee.s continued stay in a position sub&ect to management prerogative to transfer him to another position where his services are needed" In short, there is no vested right to salary increases" That respondent 5adac may have received salary increases in the past only proves fact of receipt but does not establish a degree of assuredness that is inherent in backwages" rom the foregoing, the plain conclusion is that respondent 5adac.s computation of his full backwages which includes his prospective salary increases cannot be permitted"&2uita$le Ban;ing 'or(oration vs. Sadac, G.R. No. !600*, une 8, *++6" Se*araion *a" in lie% o( reinsae-en :nder the law, an illegally dismissed employee is entitled to reinstatement and backwages, and if reinstatement is no longer possible, he may be given separation pay in lieu of reinstatement" &Bunagan vs. Sentinel >atch/an 4rotective gency, Inc., G.R. No. !306, Se(te/$er !3, *++6"a"cdd%&a Re*eaed re+iring o( *ro:ec e-*lo"ee t this time, we wish to allay any fears that this decision unduly burdens an employer by imposing a duty to re#hire a pro&ect employee even after completion of the pro&ect for which he was hired" The import of this decision is not to impose a positive and sweeping obligation upon the employer to re#hire pro&ect employees" 8hat this decision merely accomplishes is a &udicial recognition of the employment status of a pro&ect or work pool employee in accordance with what is -ait acco/(li , i.e., the continuous re#hiring by the employer of pro&ect or work pool employees who perform tasks 15
necessary or desirable to the employer.s usual business or trade" &Maraguinot, r. vs. National #a$or Relations 'o//ission, G.R. No. !*+969, anuary **, !998" $o%ble *robaionar" *eriod ; illegal The GotelHs system of double probation a transparent scheme to circumvent the plain mandate of the law and make it easier for it to dismiss its employees even after they shall have already passed probation" The policy of the !onstitution is to give the utmost protection to the working class when sub&ected to such maneuvers as the one attempted by the petitioners" This !ourt is fully committed to that policy and has always been quick to rise in defense of the rights o f labor, as in this case" &=oliday Inn Manila vs. National #a$or Relations 'o//ission, G.R. No. !+9!!, Se(te/$er !, !993" Probaionar" Period o( Pri)ae Sc+ool Teac+ers 5ection *C of the )**1 ;anual of 0egulations for 7rivate 5chools, provides that full#time teachers who have satisfactorily completed their probationary period shall be considered regular or permanent" urthermore, the probationary period shall not be more than six consecutive regular semesters of satisfactory service for those in the tertiary level" Thus, the following requisites must concur before a private school teacher acquires permanent statusE ()6 the teacher is a full# time teacher@ (16 the teacher must have rendered three consecutive years of service@ and (C6 such service must have been satisfactory" &Saint Mary?s niversity vs. 'ourt o- ((eals, G.R. No. !0088, March +8, *++" $isincion beween a dis-issal :%s ca%se and a dis-issal (or a%+oried ca%se The clear#cut distinction between a dismissal for &ust cause under rticle 1+1 and a dismissal for authori$ed cause under rticle 1+C is further reinforced by the fact that in the first, payment of separation pay, as a rule, is not required, while in the second, the law requires payment of separation pay" &a;a ah Auen Restaurant, vs. ayona, G.R. No. !98, Dece/$er !6, *++" Twin noice re4%ire-en 7rocedural due process requires the employer to give the employee two notices" The first is to apprise him of the particular acts or omissions for which his dismissal is sought, and the second is to inform him of the decision to terminate him"ailure to comply with these mandatory procedural requirements taints the dismissal with illegality and any &udgment 16
rendered by the employer without compliance therewith can be considered void and inexistent" It should be emphasi$ed that due process must be observed in effecting an employee.s dismissal because the dismissal of an employee affects not only his position but also his means of livelihood and his dependents. sustenance" Thus, strict adherence to the requirements set forth in the Labor !ode, as amended, is essential" &>ah Auen Restaurant, vs. ayona, G.R. No. !98, Dece/$er !6, *++" S%s*ension be"ond 80 da"s < consr%ci)e dis-issal !learly, constructive dismissal had already set in when the suspension went beyond the maximum period allowed by law" 5ection 3, 0ule MI, Book of the 9mnibus 0ules provides that preventive suspension cannot be more than the maximum period of C= days" Gence, after the C=#day period of suspension, the employee must be reinstated to his former position because suspension beyond this maximum period amounts to constructive dismissal" &=yatt ai Services Inc. vs. 'atinoy, G.R. No. !3*+, une *6, *++!" I( dis-issal is oo +ars+ s%s*ension can be i-*osed 8e cannot but agree that the extreme penalty of dismissal was too harsh and manifestly disproportionate to the infraction committed, which appears to have been fully explained, and, in fact, to be not inexcusable under the circumstances" There was no dishonesty, no demonstration of such moral perverseness as would have &ustified the claimed loss of confidence attendant to the &ob" 7erhaps, individual petitioner should first have been given a mere warning, then a reprimand or even a suspension, but certainly not outright dismissal from employment" 9ne must keep in mind that a worker.s employment is property in the constitutional sense, and he cannot be deprived thereof without due process and unless it was commensurate to his acts and degree of moral depravity" &'oca7'ola Bottlers, 4hils., Inc. vs. Ha(isanan ng MalayangManggaga%asa 'oca7 'ola 7 <<>, G.R. No. !8*+,
G%ali(icaion (or reire-en In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreementsE 7rovided, however, That an employee.s retirement benefits under any collective bargaining and other agreements shall not be less than those provided herein" In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (4=6 years or more, but not beyond sixty#five (426 years which is hereby declared the compulsory retirement age, who has served at least five (26 years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one#half ()F16 month salary for every year of service, a fraction of at least six (46 months being considered as one whole year" :nless the parties provide for broader inclusions, the term one half ()F16 month salary shall mean fifteen ()26 days plus one#twelfth ()F)16 of the )C th month pay and the cash equivalent of not more than five (26 days of service incentive leaves" &Sta. 'atalina 'ollege vs. National #a$or Relations 'o//ission, G.R. No. !83, Nove/$er !9, *++3" Co-*%aion o( reire-en *a" or the purpose of determining the minimum retirement pay due an employee under this 0ule, the term Aone#half month salary shall include all the followingE (a6 ifteen ()26 days salary of the employee based on his latest salary rate" (b6 The cash equivalent of not more than five (26 days of service incentive leave@ (c6 9ne#twelfth of the )C th month pay due an employee@ (d6 ll other benefits that the employer and employee may agree upon that should be included in the computation of the employee.s retirement pay" The foregoing rules are clear that the whole 2 days of 5IL are included in the computation of a retiring employees. pay" &2nriue5 Security Services, Inc. vs. 'a$otae, G.R. No. !0993, uly *!, *++6" Co-*%lsor" Reire-en n employer is free to impose a retirement age less than 42 for as long as it has the employees. consent" 5tated conversely, employees are free to accept the employer.s offer to lower the retirement age if they feel they can get a better deal with the retirement plan presented by the employer" Thus, having terminated petitioner solely on the basis of a provision of a retirement plan which was not freely assented to by her, respondent was guilty of illegal dismissal" &acul$e vs. Silli/an niversity, G. R. No. !693, March !6, *++0,'ercado vs. ni(ro/, Inc. )cto$er !3, *+!+" E-*lo"eeBs conrib%ion -%s be ded%ced (irs 0etirement benefits, on the other hand, are intended to help the employee en&oy the remaining years of his life, releasing him from the burden of worrying for his financial support, and are a form of reward for his loyalty to the employer"5ince the computed amount of her retirement pay is much lower than that provided under the law, she is entitled to receive the difference between the actual amount of her retirement benefits as required by law and that provided for under the 7-0. &Sta. 'atalina 'ollege vs. National #a$or Relations 'o//ission, G. R. No. !83, Nove/$er !9, *++3" Reire-en o( %ndergro%nd -iners 9n ebruary 14, )**+, Re(u$lic ct No. 88 was signed into law and amended rticle 1+ of the Labor !ode and provided for the retirement benefits of underground miners"Based on 0"" +22+, An underground mining employee upon reaching the age of fifty (2=6 years or more, but not beyond sixty (4=6 years which is hereby declared the compulsory retirement age for underground mine workers, who has served at least five (26 years as underground mine worker, may retire and shall be entitled to all the retirement benefits provided for in this rticle" Prescri*ion rticle C=2 9ffenses penali$ed under this !ode and the rules and regulations issued pursuant thereto shall prescribe in three (C6 years" The Labor !ode, however, does not contain any provisions on the mode of computation of the three#year prescriptive period it established"7rescription shall begin to run from the day of the commission of the violation of the law, and if the same be not known at the time, from the discovery thereof and institution of &udicial proceedings for its investigation and punishment"The term of prescription shall not run when the offender is absent from the 7hilippine rchipelago" &4eo(le o- the 4hili((ines vs. Duue, G.R. No. !++*8, ugust !3, !99*"
Prescri*ion *eriod (or -one" clai-s 18
rticle 1*) (now rt" C=46 of the Labor !ode which provides that all money claims arising from employer# employee relationship shall be filed within three (C6 years from the time the cause of action accrued" &'entral Negros 2lectric 'oo(erative &'2N2')", Inc. vs. National #a$or Relations 'o//ission, G.R. No. !+6*6, Se(te/$er !, !99" Prescri*ion (or all -one" clai-s 8hat rules on prescription should apply in cases like this one has long been decided by this !ourt" In illegal dismissal, it is settled, that the ten#year prescriptive period fixed in rticle ))33 of the !ivil !ode /ay not be invoked by petitioners, for the !ivil !ode is a law of general application, while the prescriptive period fixed in rticle 1*1 of the Labor !ode >now rticle 1*)K is a 57-!IL L8 applicable to claims arising from employee#employer relations"The language of rt" 1*) of the Labor !ode does not limit its application only to Dmoney claims specifically recoverable u nder said !odeD but covers all money claims arising from an employee#employer relationsD (!iting !adalin vs" 79- dministrator, 1C+ 5!0 1), 43 >)**3K@ and :y vs" 'ational Labor 0elations !ommission, 14) 5!0 2=2, 2)2 >)**4K6" " " " It should be noted further that rticle 1*) of the Labor !ode is a special law applicable to money claims arising from employer#employee relations@ thus, it necessarily prevails over rticle ))33 of the !ivil !ode, a general law" Basic is the rule in statutory construction that Dwhere two statutes are of equal theoretical application to a particular case, the one designed therefore should prevail"D 8e base our conclusion not on rticle ))33 of the !ivil !ode but on which sets the prescription period at three (C6 years and which governs under this &urisdiction" &#aureano vs. 'ourt o- ((eals, G.R. No. !!006, 3K#year prescriptive period under rticle ))34 of the 'ew !ivil !ode, applies by way of supplement, in the instant case, to witE rt" ))34" The following actions must be instituted within four years" >)K (on an inury to the lights o- the (lainti--. !learly then, when one is arbitrarily and un&ustly deprived of his &ob or means of livelihood, the action instituted to contest the legality of oneHs dismissal from employment constitutes, in essence, an action predicated Dupon an in&ury to the rights of the plaintiff,D as contemplated under rt" ))34 of the 'ew !ivil !ode, which must be brought within four >3K years" &'allanta vs. 'arnation 4hili((ines, Inc., G.R. No. 0+6! )cto$er *8, !986" In illegal dismissal cases, the employee concerned is given a period of four years from the time of his dismissal within which to institute a complaint" This is based on rticle ))34 of the 'ew !ivil !ode which states that actions based upon an in&ury to the rights of the plaintiff must be brought within four years" Thus, the four#year prescriptive period shall be counted and computed from the date of the employeeHs dismissal up to the date of the filing of complaint for unlawful termination of employment" &@ictory #iner, Inc. vs. Race, G.R. No. !68*+, March *8, *++0" 18+ -on+ *a" (or cerain "*es o( e-*lo"ees 7residential
'o employer shall discriminate against any solo parent employee with respect to terms and conditions of employment on account of hisFher status" In addition to leave privileges under existing laws, parental leave of not more than seven (6 working days every year shall be granted to any solo parent employee who has rendered service of at least one ()6 year"
&oo+s Authored by Atty. ,u+a 1# Labor Laws and Social Legislaions7 ! arriserBs Co-*anion (0ex Bookstore, 1=)46 2# Consi%ional Law7 ! arriserBs Co-*anion (0ex Bookstore, 1=)=6 8# Rial' His Legac" o +e P+ili**ine Socie" (nvil 7ublishing Gouse, 1=)=6 # T+e Sr%ggle (or .reedo-7 ! Te>boo& in P+ili**ine Hisor" (0ex Bookstore, 1==+6 9# T+e Law and +e Teac+ing Pro(ession in +e P+ili**ines (! and - 7ublishing, 1==+6 6# P+iloso*+" o( Ed%caion (0ex Bookstore, Inc", 1==4, )***6 ?# Re)iewer (or +e Ci)il Ser)ice E>a-inaion (;anila 0eview Institute, Inc", 1==)6 # /orld Deogra*+" (0ex Bookstore, Inc", 1==4, 1==)6 =# Inrod%cion o !sia7 Hisor"' C%l%re and Ci)iliaion (0ex Bookstore, 1==26 10# Re)iewer (or +e Licens%re E>a-inaion (or Teac+ers (;0I, 1==4, )**+6 11# Hisorical' P+iloso*+ical and Legal .o%ndaions o( Ed%caion (7hoenix 7ublishing Gouse, )**6 12# Inrod%cion o Sociolog" (nvil 7ublishing6, 1=)3 Di)e and i will be gi)en o "o%# ! good -eas%re' *ressed down' s+a&en oge+er and r%nning o)er' will be *o%red ino "o%r la*# .or wi+ +e -eas%re "o% %se' i will be -eas%red o "o%# L%&e 6783 T+ose w+o are in *ossession o( +is re)iew -aerial +a)e +e obligaion o s+are i wi+ o+ers# Dod bless "o% as "o% a&e +e ar E>a-inaions < !"# Cecilio $# $%&a
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