Labor (Divina 2024)

COMPENDIOUS BAR
REVIEWER
ON LABOR LAW
Based on Bar Exam Syllabus
Nilo T. Divina
Alden Francis C. Gonzales
Harly Jayson U. Reyes
Jarodelyn N. Mabalot
Marifelle L. Isip
Clarissa Joyce R. Gorreon
Karen A. De Villa
Maria Frances Faye R. Gutierrez
lyla Marie D. Ferrer
2024 EDITION
Philippine Copyright, 2024
By
FOREWORD
Nilo T. Divina Much is always said about the grandeur of the legal profession, with
Alden Francis C. Gonzales its traditions and accoutrements seemingly out of reach for the
Harly Jayson U. Reyes common folk, and the fame, fortune and the best of life's things that
Jarodelyn N. Mabalot await those who are admitted into its hallowed halls.
Marifelle L. Isip
Clarissa Joyce R. Gorreon At least, that is how it appears from the outside looking in.
Karen A. De Villa
Maria Frances Faye R. Gutierrez But the truth is, admission to the legal profession is never a glamorous
lyla Marie D. Ferrer endeavor. It is as painful as it is complicated. It takes patience and
wits, humor and a healthy understanding of the human condition.
ALL RIGHTS RESERVED
Most importantly, one must pass the Bar. After all, it is the ultimate
The author prohibits unauthorized reproduction of this book. No test to determine whether the examinee has learned enough of the law
portion of this book shall be copied or reproduced in books, pamphlets, to make him or her worthy of being a member of the legal profession.
outlines or notes, whether printed, machine copied, mimeographed,
typewritten, photocopied, scanned or in any other form, manner or We learn the law through reading. Constant and plenty of reading. In
technique for distribution or sale, without the written permission of the law school, the professor prescribes the book. For the bar, the
author. Any copy of this book without the corresponding number and examinee picks his reading materials. With nary a moment to waste,
genuine signature of the author or his representative on this page, either the chosen book must be complete without being verbose, as well as
proceeds from an illegitimate source or is in possession of one who has engaging and accurate. It must remove every little cloud on one's
no authority to dispose thereof.
understanding of the law.
Which is where reviewers like this one from the Professors of the
University of Sto. Tomas (UST) Faculty of Civil Law come in.
The Divina Bar Review Series, made by some of the country's most
respected legal luminaries and educators, is formatted in Q&A so that
legal concepts and principles, that may otherwise be difficult to
Serial No. comprehend, become far more comprehensible for reviewees who
hope to pass, if not ace the bar, and equally useful for practitioners
ISBN 978-621-02-2328-6 who wish to refine their craft. Indeed, each book's reader-centered
approach makes it an essential resource for any person in need of
Published and Printed by: added proficiency in the law.
CENTRAL BOOK SUPPLY, INC.
927 Quezon Avenue, Quezon City, Then again, this reviewer is not a treatise; it is not meant to dive deep
Philippines Email: infoReentral.com.ph into the philosophy of the law. It is akin simply to a wrench that one
needs in order to finish a laborious task such as the Bar. Indeed, Bar
iii
candidates can use this wrench from UST Law— it is as handy and FOREWORD
timely as it comes.
I congratulate the UST Faculty of Civil Law on this welcome addition As the various innovations and elaborate advancements in the
to a bar candidate's toolbox. Dean Nilo T. Divina, no doubt the conduct of the Bar Examinations and the rules concerning admission
progenitor and benefactor for this work, is always looking for ways to to the legal profession continue to transform how law graduates
help law students fulfill their dream of becoming a lawyer. prepare for their journey towards the elusive title of Attorney, there is
For this, the legal education community is truly grateful. no doubt that this has challenged our traditional methods of training
law students and providing guidance regarding the rigors of Bar
Admission. The digital age has indeed found its way into the process
by instituting the revolutionary digital Bar Examinations. The
Dr. Anna Marie Melanie B. Trinidad
implementation of regional Examinations also made an appearance in
Chairperson, Legal Education Board
the field. Taking the step even further, the Chairperson for the 2023
Bar Examination has lamented the need to "modernize the manner in
which we admit those who wish to join our profession if we are to
keep up with the best practices that other legal jurisdictions observe
and implement in their respective areas".
As the President of the Philippine Association of Law Schools, I
am confident that through this seemingly thick screen of novelty and
unfamiliarity in the conduct of the Bar Examination, our students'
goals remain the same: to demonstrate knowledge of the law and
exhibit the correct application of legal principles and jurisprudence.
Unsurprisingly, DivinaLaw is in the same boat as the Academe
with this idea, being composed of lawyers who also teach in various
law schools in the country. Their development of this collection of Bar
Reviewers is a huge boon to law graduates who intend to brave the
challenge of taking the 2023 Bar Examination. The extensive scope of
this compendium, coupled with the beloved Q&A format, is expected
to be helpful to Bar Takers looking for materials to hone their
substantive knowledge of the law. The incorporation of doctrines
arising out of Supreme Court decisions penned by Justice Ramon Paul
Hernando is likewise welcome, given that Bar Questions typically
include those authored by the designated Bar Chairperson. You may
see all of these in this collection dedicated to each Bar subject,
iv
presented in a simplified and easy-to-understand context — the PREFACE AND ACKNOWLEDGMENT
Compendious Bar Reviewers. This may well be one of the most
ambitious and useful reviewers this season.
After receiving heartfelt messages of commendation and gratitude
Congratulations to DivinaLaw for this launch! Your efforts are from the 2023 Bar-takers who used the 2023 Divina Compendious
indeed commendable!
Bar Review Series, and upon seeing the results of the recent Bar
examinations, I am ecstatic and honored to present the 2024
-1.ervnt-- C-fg.
Divina Compendious Bar Review Series.
This year, we take this book a leap higher with its revised,
updated and expanded contents. The 2024 Divina Compendious
ATTY. GEMYLITO L. FESTIN, LL.M. Bar Review Series now includes Commercial Law — the field
President and practice closest to my heart. This creation represents my
Philippine Association of Law Schools 30+ years of experience as a lawyer and academician. As the
sole author for this Bar subject in this series, it is effectively me
asking the questions to my students, to my examinees, and to my
reviewees. It is as if I am whispering to their ears the answers to
the Bar exam questions. It is as if I am lifting them up with a
hand because it is a product of love. It is a work of love.
This year's Compendious Bar Reviewer was revised, updated
and customized in strict accordance with the latest Bar Exam
Syllabus prescribed by this year's Bar Chairperson Associate
Justice Mario V. Lopez. The presentation follows the 2024 Bar
Examination Syllabi to serve as a seamless manual for the Bar-
takers. It was designed to lay a strong conceptual foundation
and assist candidates in their preparations.
This work is a compendium of fundamental legal principles,
designed in a question-and-answer format, deliberately crafted
to stimulate the test-taking experience for Bar Reviewees. The
questions and answers are based on the pertinent provisions of
law/s and regulation/s, past Bar Examinations, landmark and
recent Supreme Court cases, as well as the cases penned by
Justice M.V. Lopez. The questions were crafted to test the Bar
Reviewees' knowledge and application of the law. Quick
vi vii
answers were then provided to aid the reader in noting the For Labor Law: Alden Francis C. Gonzales, Harly
important concepts. Jayson U. Reyes, Jarodelyn N. Mabalot, Marifelle L. Isip,
Clarissa Joyce R. Gorreon, Karen A. De Villa, Maria
This 2024 edition would not have been possible without the Frances Faye R. Gutierrez, and tyla Marie D. Ferrer.
gracious collaboration of Central Book Supply Inc. I am grateful
to them for collaborating again with us and being our constant For Criminal Law: Lorenzo Luigi T. Gayya, Alwyn
partners in championing legal education. Faye B. Mendoza, Bianca Isabel D. Soriano, Danica Mae
M. Godornes, Edrea Jean V. Ramirez, Angelica Mae T.
This collection of Bar Reviewers for all Bar subjects was authored Destajo, and Beatriz Anna S. Balbacal.
by lawyers from DivinaLaw—all with sterling academic
credentials, and many of whom are law professors. For Remedial Law: Ian Jerny E. De Leon, Krisyl M.
Cancino, Vaupetroanji J. Pella, Patricia Faith R. Lacuesta,
I wish to express my deep appreciation to the subject teams and Jairus Vincent Z. Bernardez, Edbert Marcel S. Ragadio,
authors for their kind and heroic involvement in this project, as Daverick Angelito E. Pacumio, John Edward F. Fronda,
they commit to produce academically competent lawyers in the Maria Frances Faye R. Gutierrez, Beatriz Anna S.
country. Their names should all be mentioned: Balbacal, Lorrence Kyle T. Mufioz, Joshua Ejeil A.
For Political Law: Enrique V. Dela Cruz Jr., Nasha Pascual, and Jovelynne C. Atag.
Jemimah R. Reyes-Ferrer, Jennel L. Chu, Ma. Ninna For Legal and Judicial Ethics: Janna Mae B. Tecson,
Roem A. Bonsol, Peter Paolo P. Dim III, Joseph Lorenz Nasha Jemimah R. Reyes-Ferrer, Terence Mark Arthur
A. Asuncion, Maria Carissa C. Guinto, Iyla Marie D. S. Ferrer, Mark Vixen M. Dorado, Daverick Angelito E.
Ferrer, Norbert Peter R. Indunan, Stephanie A. Serapio, Pacumio, John Edward F. Fronda, and Stephanie A. Serapio.
Joshua Cris F. Aguilar, and Jonathan Victor S. Noel.
I am grateful to the people behind DL Publishing for their
For Taxation Law: Lean Jeff M. Magsombol, Danica continued commitment in producing academic materials for the
Mae M. Gordones, Izzel Jarviz M. Arzadon, Isabella A. benefit of the legal community. May they continue to publish
Rodriguez, Ephraim P. Bie, Kara C. Ramos, and more materials that will produce competent lawyers and Bar
Christian Gio R. Senarlo. topnotchers.
For Civil Law: Alden Francis C. Gonzales, Danny E. I am thankful to the Thomasian community for their unwavering
Bunyi, Janna Mae B. Tecson, Ciselie Marie T. Gamo- support and for sharing with me the dream to produce more
Sisayan, Klinton M. Torralba, Marnelli A. Sales, Alfonso lawyers to serve the nation, and to honor and glorify God. Thank
Roel D. Vargas, Julie Ann C. Manguiat, Kristina Mae C. you to the school administration and faculty for prescribing the
Durana, Louis-Mari R. Opina, Iyla Marie D. Ferrer, 2023 Compendious Bar Review Series, which modesty aside, I
Alexandra Nicole D. Sugay, Daverick Angelito E. Pacumio, claim, helped UST be consistently part of the top performing
and Angel Isah M. Romero. schools in the Bar Examinations, and produce two home-grown
viii ix
Thomasians to be among the Top 10 examinees in the recent
2023 Bar Examinations.
TABLE OF CONTENTS
I extend my gratitude to Attys. Ephraim P. Bie, Pio Vincent R.
Buencamino, and Nicolo Paolo M. Manikad for their kind words Page
and sharing their insights on how the 2023 Compendious Bar
Reviewer helped them in their Bar preparation journey. I. Fundamental Principles and Concepts
Of course, I thank, too, the rest of the lawyers, members and A. Sources of Labor Laws 1
staff of DivinaLaw. Without their competence, hard work, and 1. 1987 Constitution 1
devotion this collection would not have been possible. 2. Civil Code 3
3. Labor Code 5
I thank my wife, children, and my entire family for their love and
4. Department of Labor and Employment
encouragement as they remain my inspiration in honing my craft.
(DOLE) Issuances 6
Finally, I thank the Father Almighty for giving us the wisdom 5. Jurisprudence 9
and allowing us to honor and glorify Him through producing B. State Policies 9
legal educational materials. 1. Labor as Primary Social Economic Force
(Constitution, Art. II, Sec. 18) 9
2. Full Protection to Labor
Deo Omnis Gloria. (Constitution, Art. XIII, Sec. 3) 10
3. Security of Tenure
(Constitution, Art. XIII, Sec. 3) 11
NILO T. DIVINA 4. Social Justice (Constitution, Art. II, Sec. 10;
Labor Code, Art. 218, as renumbered
by DOLE D.A. No. 01-2015) 12
5. Equal Work Opportunities
(Constitution, Art. XIII, Sec. 3; Labor Code, Art. 3) 14
6. Right to Self-Organization and Collective
Bargaining (Constitution, Art. XIII, Sec. 3;
Labor Code, Arts. 3 and 253) 15
7. Construction in Favor of Labor
(Labor Code, Art. 4; Civil Code, Art. 1702) 17
TABLE OF CONTENTS TABLE OF CONTENTS
Page Page
4. Holidays - Labor Code, Art. 94; Omnibus Rules

II. Recruitment and Placement of Workers
Implementing the Labor Code, Book III,
A. Recruitment and Placement of Local Rule IV, Secs. 1-11 132
and Migrant Workers (Labor Code, Art. 13) 23 5. Service Charge - Labor Code, Art. 96;
1. Regulatory Authorities 26 Omnibus Rules Implementing the Labor Code,
Book III, Rule VI, Secs. 1-7; R.A. No. 11360;
2. Regulation of Recruitment and Placement Activities 30
DOLE D.O. No. 206-19; DOLE L.A. No. 14-19 138
B. Employment of Non-Resident Aliens (Labor Code, 6. Occupational Safety and Health Standards
Articles 40-42; DOLE D.O. No. 186-17, Sections 1-3 Law - R.A. No. 11058, Secs. 4-6, 8 and 12 141
and 12-14, as amended by DOLE D.O. No. 221-21; B. Wages 144
DOLE D.O. No. 205-19, Sections 1-3, 7-8) 60
1. Components and Exclusions 144
III. Employer-Employee Relationship 2. Principles 158
3. Payment of Wages - Labor Code, Arts. 102-105;
A. Employer-Employee Relationship 65 Omnibus Rules Implementing the Labor Code,
1. Tests to Determine Employer-Employee Book III, Rule VIII, Secs. 1-7 and 10-14 163
Relationship (DOLE D.O. No. 147-15, 4. Prohibitions Regarding Wages - Labor Code,
Rule I-A, Sec.3) 65 Arts. 112-119; DOLE L.A. No. 11-14 165
2. Kinds of Employment (Labor Code, Arts. 295-296) 71 5. Wage Distortion - Labor Code, Art. 124. 170
3. Related Concepts 84 6. Minimum Wage - Labor Code, Art. 99;
B. Legitimate Subcontracting vs. Labor-Only Omnibus Rules Implementing the Labor Code,
Contracting (Labor Code, Arts. 106-109; Book III, Rule VII, Secs. 7, 9 and 15 175
DOLE D.O. No. 174-17; DOLE D.C. No.01-17; C. Leaves 177
E.O. No. 51, Series of 2018) 89 1. Service Incentive Leaves - Labor Code, Art. 95;
Omnibus Rules Implementing the Labor Code,
IV. Labor Standards Book III, Rule V, Secs. 1-6 177
2. Leaves under Special Laws 182
A. Conditions of Employment 102
D. Special Groups of Employees 194
1. Covered Employees; Exceptions - Labor Code,
1. Women - Labor Code, Arts. 130 and 132-136 194
Article 82; Omnibus Rules Implementing the
Labor Code, Book III, Rule I, Sections 1-2 102 2. Minors - R.A. No. 7610, as amended
104 by R.A. No. 9231 201
2. Hours of Work
3. Kasambahays - R.A. No. 10361 205
3. Rest Periods - Labor Code, Arts. 91-93;
Omnibus Rules Implementing the Labor Code, 4. Homeworkers - Labor Code, Arts. 151-153 213
Book III, Rule III, Secs. 1-9 130
xii
Page Page
5. Night Workers - Labor Code, Arts. 154-161) 214 E. Claims of Seafarers; 2010 Standard Terms
6. Apprentices and Learners - Labor Code, and Conditions Governing the Overseas Employment
Arts. 58-60 and 73-74 215 of Filipino Seafarers On-Board Ocean-Going
7. Persons With Disabilities - R.A. No. 7277, Ships (Secs. 20, 32 and 32-A) 267
as amended by R.A. No. 9442, R.A. No. 10070
and R.A. No. 10524 223 VI. Management Prerogative
E. Sexual Harassment in the Work Environment A. Occupational Qualifications 291
(R.A. No. 7877); Safe Spaces Act
(R.A. No. 11313, Article IV) 226 B. Productivity Standards 292
F. Discriminatory Practices 231 C. Change of Working Hours 294
1. Age - R.A. No. 10911 231 D. Transfer of Employees 296
2. Gender and Marital Status - R.A. No. 9710 233 E. Discipline of Employees 299
3. Pregnancy - R.A. No. 10354, Sec. 23 (c) 236
F. Grant of Bonuses and Other Benefits 299
4. Illness — DOLE D.A. No. 05-10;
DOLE D.O. No. 73-05 237 G. Clearance Process 304
5. Solo Parents — R.A. No. 8972, as amended H. Post-Employment Restrictions 307
by R.A. No. 11861, Sec. 7 237
6. Persons with Disability — R.A. No. 7277, VII. Post-Employment
as amended 238
A. Termination of Employment by Employer 309
V. Social Welfare Benefits 1. Just Causes — Labor Code, Art. 297;
DOLE D.O. No. 147-15 309
A. SSS Law (R.A. No. 8292, as amended by 2. Authorized Causes — Labor Code, Arts. 298-299;
Republic Act No. 11199) 240 DOLE D.O. No. 147-15 317
1. Benefits; Coverage and Exclusions 240 3. Due Process Requirements — Labor Code,
2. Dependents and Beneficiaries 248 Art. 292 (b); DOLE D.O. No. 147-15 323
B. GSIS Law (R.A. No. 8291) 251 B. Termination of Employment by Employee 330
1. Benefits; Coverage and Exclusions 251 1. Resignation vs. Constructive Dismissal —
2. Dependents and Beneficiaries 254 Labor Code, Art. 300 332
C. Limited Portability Law (R.A. No. 7699) 256 C. Preventive Suspension (Omnibus Rules
D. Disability and Death Benefits - Labor Code Implementing the Labor Code, Book V,
and Civil Code 257 Rule XIV, Secs. 3-4) 337
xiv xv
Page Page
D. Reliefs from Illegal Dismissal 1. Strikes, Picketing, and Lockouts - Labor Code,
(Labor Code, Art. 294) 339 Art. 278; Omnibus Rules Implementing
the Labor Code, Book V, Rule XIII 397
E. Retirement (Labor Code, Art. 302) 345
2. Assumption of Jurisdiction by Secretary
VIII. Labor Relations of Labor and Employment - Labor Code,
Art. 278 (g); DOLE D.O. No. 40-H-13 404
A. Right to Self-Organization 354
1. Coverage and Eligibility for Membership; IX. Jurisdiction and Remedies
Exceptions (Labor Code, Arts. 253-255;
A. Labor Arbiter 406
DOLE D.O. No. 40-03, Rule II, Secs. 1-2) 354
1. Jurisdiction - Labor Code, Arts. 124 and 224;
2. Doctrine of Necessary Implication
R.A. No. 8042, as amended by R.A. No. 10022,
(Confidential Employees) 359
Sec. 10; 2011 NLRC Rules of Procedure,
3. Bargaining Unit - DOLE D.O. No.40-03, as amended, Rule V, Sec. 1 410
Rule I, Sec. 1(e) 359 2. Mode of Appeal to the NLRC — 2011 NLRC
4. Registration of Unions, Chartering, Cancellation Rules of Procedure, as amended, Rule VI 413
of Registration - Labor Code, Arts. 240, 241, 3. Reinstatement and/or Execution Pending
245 and 247 361
Appeal — Labor Code, Art. 229; 2011 NLRC
5. Sole and Exclusive Bargaining Agent (SEBA) Rules of Procedure, as amended, Rule IX, Sec. 12 417
(DOLE D.O No. 40-03, Rule I, Sec.1(u));
Modes to Acquire Status (DOLE D.O. No 40-I-15) 363 B. National Labor Relations Commission 419
6. Employer as a Mere Bystander Rule - 1. Jurisdiction 419
DOLE D.O No. 40-03, Rule IX, Sec.1, as amended 378 2. Mode of Appeal and Requisites 420
B. Rights of Legitimate Labor Organizations 380 C. Court of Appeals 421
1. Check Off, Assessment, and Agency Fees - D. Supreme Court 421
Labor Code, Arts. 250 (n) (o) and 259 (e);
E. Bureau of Labor Relations 423
DOLE D.O. No. 40-03, Rule XIII, Sec.1 380
2. Collective Bargaining 383 F. National Conciliation and Mediation Board 423
C. Unfair Labor Practices 389 G. DOLE Regional Directors 424
1. By Employers - Labor Code, Art. 259 391 H. DOLE Secretary 427
2. By Labor Organizations - Labor Code, Art. 260 395 1. Visitorial and Enforcement Powers -
Labor Code, Arts. 128 and 289 427
D. Peaceful Concerted Activities 397
2. Power to Suspend Effects of Termination -
Labor Code, Art. 292 (b) 430
xvi xvii
TABLE OF CONTENTS
Page
I. Fundamental Principles
I. Voluntary Arbitrator; Jurisdiction and Procedure — and Concepts
Labor Code, Arts. 274-277; Revised Procedural
Guidelines in the Conduct of Voluntary A. Sources of Labor Laws
Arbitration Proceedings 431
1. 1987 Constitution
J. Prescription of Actions 434
1. Money Claims - Labor Code, Art. 306 434 Q: What are the provisions in the 1987 Constitution pertaining
2. Illegal Dismissal - Civil Code, Art. 1146 435 to Labor?
3. Unfair Labor Practices - Labor Code, Art. 305 435 A: Provisions regarding labor are found in Articles II (Declaration
4. Illegal Recruitment - R.A. No. 8042, as amended, of Principles and State Policies), III (Bill of Rights), and XIII
Sec. 12 435 (Social Justice and Human Rights) of the 1987 Constitution:
5. Offenses Under the Labor Code 435
Article II
About the Authors 437 SECTION 9. The State shall promote a just and dynamic social order
that will ensure the prosperity and independence of the nation
and free the people from poverty through policies that provide
adequate social services, promote full employment, a rising standard
o0o of living, and an improved quality of life for all.
SECTION 10. The State shall promote social justice in all phases
of national development.
SECTION 18. The State affirms labor as a primary social economic
force. It shall protect the rights of workers and promote their welfare.
SECTION 20. The State recognizes the indispensable role of the
private sector, encourages private enterprise, and provides incentives
to needed investments.
Article III
SECTION 4. No law shall be passed abridging the freedom of
speech, of expression, or of the press, or the right of the people
peaceably to assemble and petition the government for redress of
grievances.
1
xviii
2 COMPENDIOUS BAR REVIEWER FUNDAMENTAL PRINCIPLES 3
ON LABOR LAW AND CONCEPTS
SECTION 8. The right of the people, including those employed SECTION 13. The State shall establish a special agency for disabled
in the public and private sectors, to form unions, associations, or persons for rehabilitation, self-development and self-reliance,
societies for purposes not contrary to law shall not be abridged. and their integration into the mainstream of society.
SECTION 10. No law impairing the obligation of contracts shall SECTION 14. The State shall protect working women by providing
be passed. safe and healthful working conditions, taking into account their
maternal functions, and such facilities and opportunities that will
SECTION 16. All persons shall have the right to a speedy enhance their welfare and enable them to realize their full potential
disposition of their cases before all judicial, quasi-judicial, or in the service of the nation.
administrative bodies.
2. Civil Code
SECTION 18. (2) No involuntary servitude in any form shall exist
except as a punishment for a crime whereof the party shall have Q: What are the provisions in the Civil Code on labor contracts?
been duly convicted.
A: The following are the Civil Code provisions governing labor
Article XIII contracts:
SECTION 2. The promotion of social justice shall include the Article 1700. The relations between capital and labor are not merely
commitment to create economic opportunities based on freedom contractual. They are so impressed with public interest that labor
of initiative and self-reliance. contracts must yield to the common good. Therefore, such contracts
SECTION 3. The State shall afford full protection to labor, local and are subject to the special laws on labor unions, collective bargaining,
overseas, organized and unorganized, and promote full employment strikes and lockouts, closed shop, wages, working conditions,
and equality of employment opportunities for all. It shall guarantee hours of labor and similar subjects.
the rights of all workers to self-organization, collective bargaining Article 1701. Neither capital nor labor shall act oppressively against
and negotiations, and peaceful concerted activities, including the the other, or impair the interest or convenience of the public.
right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. Article 1702. In case of doubt, all labor legislation and all labor
They shall also participate in policy and decision-making processes contracts shall be construed in favor of the safety and decent
affecting their rights and benefits as may be provided by law. living for the laborer.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of voluntary Article 1703. No contract which practically amounts to involuntary
servitude, under any guise whatsoever, shall be valid.
modes in settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace. The Article 1704. In collective bargaining, the labor union or members
State shall regulate the relations between workers and employers, of the board or committee signing the contract shall be liable for
recognizing the right of labor to its just share in the fruits of non-fulfillment thereof.
production and the right of enterprises to reasonable returns on
investments, and to expansion and growth. Article 1705. The laborer's wages shall be paid in legal currency.
T-
FUNDAMENTAL PRINCIPLES 5
4 COMPENDIOUS BAR REVIEWER AND CONCEPTS
ON LABOR LAW
3. Labor Code
Article 1706. Withholding of the wages, except for a debt due,
shall not be made by the employer. Q: What is the basic policy on labor?
Article 1707. The laborer's wages shall be a lien on the goods A: Article 3 of the Labor Code provides that "the State shall afford
manufactured or the work done. protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed, and regulate the
Article 1708. The laborer's wages shall not be subject to execution
relations between workers and employers. The State shall assure the
or attachment, except for debts incurred for food, shelter, clothing
rights of workers to self-organization, collective bargaining, security
and medical attendance.
of tenure, and just and humane conditions of work."
Article 1709. The employer shall neither seize nor retain any tool
or other articles belonging to the laborer. Q: Who are covered by the Labor Code?
Article 1710. Dismissal of laborers shall be subject to the supervision A: Article 6 of the Labor Code provides that "all rights and
of the Government, under special laws. benefits granted to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all workers, whether
Article 1711. Owners of enterprises and other employers are agricultural or non-agricultural."
obliged to pay compensation for the death of or injuries to their
laborers, workmen, mechanics or other employees, even though Q: Which entities are not covered by the Labor Code?
the event may have been purely accidental or entirely due to a A: The following are not covered by the Labor Code:
fortuitous cause, if the death or personal injury arose out of and
in the course of the employment. The employer is also liable for 1. Corporate officers involved in intra-corporate disputes
compensation if the employee contracts any illness or disease under P.D. No. 902-A fall under the jurisdiction of regular
caused by such employment or as the result of the nature of the courts in accordance with the Securities Regulation Code;'
employment. If the mishap was due to the employee's own notorious
negligence, or voluntary act, or drunkenness, the employer shall 2. Employees of government-owned or controlled corporations
not be liable for compensation. When the employee's lack of due (GOCCs) created by special or original charter are governed
care contributed to his death or injury, the compensation shall be by the Civil Service Law;2
equitably reduced. 3. Local water districts;3
Article 1712. If the death or injury is due to the negligence of a 4. Foreign Governments;4
fellow worker, the latter and the employer shall be solidarily
liable for compensation. If a fellow worker's intentional or malicious
act is the only cause of the death or injury, the employer shall not
be answerable, unless it should be shown that the latter did not
exercise due diligence in the selection or supervision of the
Nacpil v. International Broadcasting; Corporation, G.R. No. 144767, 21 March 2002.
plaintiffs fellow worker. 2 Juco v. NationalLabor Relations Commission, et al., G.R. No. 98107, 18 August 1997.
3 Tarifa}, Water District v. Gahaton, G.R. Nos. L-63742 and 84300, 17 April 1989.
4 Jl.S.A,L4G Philippines v. National Labor Relations Commission, et al., G.R. No.
108813, 15 December 1994.
5. International Agencies' and employees of intergovernmental 3. Department Order No. 141-14 provides the rules and
or international organizations6; and regulations governing private recruitment and placement
for local employment.
6. Government Agencies which are covered by the civil service
rules and regulations.' 4. Department Order No. 131-B-16 or the "Revised Rules
on Labor Laws Compliance System" provides guidelines
4. Department of Labor and Employment (DOLE) Issuances on voluntary compliance with labor laws among establishments.
Q: What is the legal basis for the DOLE's power to 5. Department Order No. 174-17 regulates job contracting
promulgate rules and regulations relating to labor? and subcontracting arrangements. This must be read
together with Department Circular No. 01-17, which
A: Article 5 of the Labor Code provides that "the Department clarifies the applicability of D.O. No. 174-17.
of Labor and other government agencies charged with the
administration and enforcement of this Code or any of its parts 6. Department Order No. 182-17 or the "Guidelines
shall promulgate the necessary implementing rules and regulations. Governing the Employment and Working Conditions of
Such rules and regulations shall become effective fifteen (15) Health Personnel in the Private Healthcare Industry"
days after announcement of their adoption in newspapers of ensures the protection and welfare of health personnel
general circulation." employed in the private healthcare industry.
Q: Enumerate key DOLE issuances relating to labor standards. 7. Department Order No. 183-17 introduced three new
approaches by which the Secretary of Labor and
A: Some of the key DOLE issuances relating to labor standards Employment may conduct inspections of establishments
are as follows: through its visitorial and enforcement powers.
1. The Omnibus Rules Implementing the Labor Code, as 8. Department Order No. 198-18 provides the rules
amended, provides the labor standards on the hours of implementing R.A. No. 11058 or "An Act Strengthening
work, wages, rest periods, holidays, leaves, thirteenth Compliance with Occupational Safety and Health Standards
month pay and bonuses, among others. and Providing Penalties for Violations Thereof."
2. Department Order No. 19-93 or the "Guidelines Governing 9. Department Order No. 202-19 provides the rules
the Employment of Workers in the Construction implementing R.A. No. 11165 or the "Telecommuting Act."
Industry" ensures the protection and welfare of workers
in the construction industry. 10. Department Order No. 221-21 or the "Revised Rules and
Regulations for the Issuance of Employment Permits to
Foreign Nationals" governs the employment of foreign
nationals.
5 Lasco, et al. v. United Nations Revolving Fundfor Natural Resources Exploration, 11. Department Advisory No. 02-04 guides employers and
et al., G.R. No. 109095-109107, 23 February 1995.
employees who may opt to adopt a compressed
6 Southeast Asian Fisheries Development Center-Aquaculture Department, et al. v.
National Labor Relations Commission, et al., G.R. No. 86773, 14 February 1992. workweek scheme.
7 CONST., Art. IX-B, Sec. 2.
8. Labor Advisory No. 11-14 clarifies the principles on 5. Jurisprudence

non-interference in the disposal of wages and on
allowable deductions. Q: How does jurisprudence become a source of labor law?
9. Labor Advisory No. 10-16 reiterates the prohibition on A: The Civil Code provides that judicial decisions applying or
labor-only contracting. interpreting the laws or the Constitution shall form a part of the
legal system of the Philippines.' Hence, Supreme Court decisions
Q: Enumerate key DOLE issuances relating to labor relations. applying or interpreting labor statutes assume the same authority
as the statutes to which they apply or interpret and until
A: Some of the key DOLE issuances relating to labor relations authoritatively abandoned, necessarily become, to the extent that
are as follows: they are applicable, the criteria which must control the actuations
1. The Omnibus Rules Implementing the Labor Code, as not only of those called upon to abide thereby but also of those
amended, provides the procedure and remedies for disputes, duty-bound to enforce obedience thereto.'
claims and other grievances, and includes provisions B. State Policies
against discrimination as to gender, religious and political
belief and marriage status, and provisions safeguarding 1. Labor as Primary Social Economic Force (Constitution,
the right to self-organization, collective bargaining, Art. II, Sec. 18)
strikes and peaceful protests.
Q: Discuss the policy of labor as primary social economic force.
2. Department Order No. 151-16 or the "Single Entry
Approach Implementing Rules and Regulations or SEnA A: Section 18, Article II of the Constitution recognizes labor as
IRR" provides the procedure for DOLE's SEnA program. a primary social economic force and mandates the State to
protect the rights of workers and promote their welfare.
3. Department Order No. 170-17 provides the rules implementing Moreover, the Congress is constitutionally mandated to give
R.A. No. 10911 or the "Anti-Age Discrimination in highest priority to the enactment of measures that protect and
Employment Act." enhance the right of all the people to human dignity, and reduce
4. Department Order No. 182-17 or the "Guidelines social, economic, and political inequalities.10
Governing the Employment and Working Conditions of Pursuant to these provisions, the Philippines has adopted labor
Health Personnel in the Private Healthcare Industry" laws as pieces of social legislation. They are means for effecting
ensures the protection and welfare of health personnel social justice, i.e., the "humanization of laws and the equalization of
employed in the private healthcare industry. social and economic forces by the State so that justice in the
8 Civil Code, Art. 8.

9 Caltex (Phil) Inc. v. Palomar, G.R. No L-19650, 29 September 1966.
10 CONST., Art. XIII, Sec. 1.
rational and objectively secular conception may at least be the laborer authorizes neither oppression nor self-destruction of
approximated."" the employer.
2. Full Protection to Labor (Constitution, Art. XIII, Sec. 3) Q: What are the limitations to the protection of labor?
Q: Discuss the policy on full protection to labor. A: Section 3, Article XIII of the Constitution provides that the
State shall regulate the relations between workers and employers,
A: Section 3, Article XIII of the Constitution mandates that the recognizing the right of labor to its just share in the fruits of production
State shall afford full protection to labor, local and overseas, and the right of enterprises to reasonable returns on investments,
organized and unorganized, and promote full employment and and to expansion and growth.
equality of employment opportunities for all. This policy is
reiterated in Article 3 of the Labor Code, which provides that the The law also recognizes that management has rights which are also
State shall afford protection to labor, promote full employment, entitled to respect and enforcement in the interest of fair play.16
ensure equal work opportunities regardless of sex, race or creed In protecting the rights of the workers, the law, however, does
and regulate the relations between workers and employers.
not authorize the oppression or self-destruction of the employer.
This constitutional policy is brought to life by labor contracts, The constitutional commitment to the policy of social justice cannot
which are placed on a higher plane than ordinary contracts for be understood to mean that every labor dispute shall automatically
being imbued with public interest.12 In Ascent Skills Human be decided in favor of labor. The constitutional and legal protection
Resources Services, Inc. v. Manuel,' the Supreme Court held equally recognize the employer's right and prerogative to manage its
that the State's policies of affording full protection to labor and operation according to reasonable standards and norms of fair play."
upholding the dignity of the Filipino workers should not be
reduced to a mere lip service. In every labor case, the courts and 3. Security of Tenure (Constitution, Art. XIII, Sec. 3)
labor tribunals should always endeavor to assiduously assess the Q: Discuss the principle of security of tenure.
totality of the circumstances to ensure that the rights and interests of
the labor force are not unduly compromised or undermined. A: The principle of security of tenure mandates that workers are
entitled to substantive and procedural due process before termination.
This constitutional policy, however, is not meant to be a sword They may not be removed from employment without a valid or
to oppress employers." In Agabon v. National Labor Relations just cause as determined by law and without going through the
Commission,' the Supreme Court held that its commitment to
proper procedure. The purpose of these two-pronged qualifications
the cause of labor does not prevent it from sustaining the is to protect the working class from the employer's arbitrary and
employer when it is in the right. The law protecting the rights of
unreasonable exercise of its right to dismiss.'
I I Rivera v. Genesis Transport Service, Inc., G.R. No. 215568, 03 August 2015.
12 Innodata Knowledge Services, Inc. v. Inting, G.R. No. 211892, 06 December 2017. 16 St. Luke's Medical Center Employees Association v. National Labor Relations
13 G.R. No. 249843, 06 October 2021. Commission, G.R. No. 162053, 07 March 2007.
14 Amoroso v. Vantage Drilling International and Group of Companies, G.R. No. 17 Imasen Philippine Manufacturing Corporation v. Alcon, G.R. No. 194884, 22
238477, 08 August 2022. October 2014.
15 G.R. No. 158693, 17 November 2004. 18 Cuartocruz v. Active Works, Inc. et al., G.R. No. 209072, 24 July 2019.
Security of tenure for labor is guaranteed by the Constitution. welfare of all the people, the adoption by the Government of
Section 3, Article XIII, of the Constitution mandates that the measures calculated to insure economic stability of all the competent
State shall afford full protection to labor and declares that all elements of society, through the maintenance of a proper economic
workers shall be entitled to security to tenure. Thus, a termination of and social equilibrium in the interrelations of the members of the
his employment must be for a lawful cause and must be done in a community, constitutionally, through the adoption of measures
manner which affords him the proper notice and hearing.19 legally justifiable, or extra-constitutionally, through the exercise
of powers underlying the existence of all governments on the
Article 294 of the Labor Code provides that in cases of regular time-honored principle of salus populi est suprema lex. Social
employment, the employer shall not terminate the services of an justice, therefore, must be founded on the recognition of the necessity
employee except for a just or authorized cause. An employee who of interdependence among divers and diverse units of a society
is unjustly dismissed from work shall be entitled to reinstatement and of the protection that should be equally and evenly extended
without loss of seniority rights and other privileges and to his to all groups as a combined force in our social and economic life,
full backwages, inclusive of allowances, and to his other benefits consistent with the fundamental and paramount objective of the
or their monetary equivalent computed from the time his compensation state of promoting the health, comfort, and quiet of all persons,
was withheld from him up to the time of his actual reinstatement. and of bringing about "the greatest good to the greatest number.i21
Q: Are Overseas Filipino Workers (OFWs) entitled to security The social justice policy mandates a compassionate attitude toward
of tenure? the working class in its relation to management. In calling for the
protection to labor, the Constitution does not condone wrongdoing
A: Overseas workers, regardless of their classifications, are entitled by the employee, it nevertheless urges a moderation of the sanctions
to security of tenure, at least for the period agreed upon in their that may be applied to him in the light of the many disadvantages
contracts. This means that they cannot be dismissed before the that weigh heavily on him like an albatross on his neck."
end of their contract terms without due process. If they were illegally
dismissed, the workers' right to security of tenure is violated.20 The policy of social justice is not intended to countenance wrongdoing
simply because it is committed by the underprivileged. At best, it
4. Social Justice (Constitution, Art. II, Sec. 10; Labor Code,. may mitigate the penalty but it certainly will not condone the
Art. 218, as renumbered by DOLE D.A. No. 01-2015) offense. Compassion for the poor is an imperative of every humane
society but only when the recipient is not a rascal claiming an
Q: What is social justice? undeserved privilege. Social justice cannot be permitted to be
A: Social justice is "neither communism, nor despotism, nor refuge of scoundrels any more than can equity be an impediment
atomism, nor anarchy," but the humanization of laws and the to the punishment of the guilty. Those who invoke social justice
equalization of social and economic forces by the State so that may do so only if their hands are clean and their motives
justice in its rational and objectively secular conception may at blameless and not simply because they happen to be poor. This
least be approximated. Social justice means the promotion of the great policy of our Constitution is not meant for the protection of
19 Archbuild Masters and Construction, Inc., et al. v. National Labor Relations

21 Calalang v. Williams, et al., G.R. No. 47800, 02 December 1940.
Commission, et al., G.R. No. 108142, 26 December 1995. 22 Gandara Mill Supply, et al. v. National Labor Relations Commission, G.R. No.
20 Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 170139, 05 August 2014. 126703, 29 December 1998.
those who have proved they are not worthy of it, like the workers Article 133 of the Labor Code also provides that it shall be unlawful
who have tainted the cause of labor with the blemishes of their for any employer to discriminate against any woman employee
own character.23 with respect to terms and conditions of employment solely on
account of her sex. The following are acts of discrimination: (a)
Q: What are the provisions regarding social justice? payment of a lesser compensation, including wage, salary or other
form of remuneration and fringe benefits, to a female employee
A: Section 10, Article II of the Constitution provides that the
as against a male employee, for work of equal value; and (b)
State shall promote social justice in all phases of national development.
favoring a male employee over a female employee with respect
The Constitution mandates more sensitivity towards several
to promotion, training opportunities, study and scholarship grants
classes and identities found within our society. Social justice at
solely on account of their sexes.
all levels of governances is an overarching state policy. This
envisions a dynamic social order that will ensure prosperity and Further, Section 5 of R.A. No. 7277, or the "Magna Carta for
free the people from poverty through policies which provide Disabled Persons", provides that no disabled persons shall be
adequate social services, promote full employment, a rising denied access to opportunities for suitable employment. A qualified
standard of living, and an improved quality of life for all. Our disabled employee shall be subject to the same terms and
fundamental law values the dignity of every human person and conditions of employment and the same compensation, privileges,
guarantees full respect for human rights. Women, the youth, benefits, fringe benefits, incentives or allowances as a qualified
indigenous peoples, farmers and farmworkers, labor in general able-bodied person.
enjoy significant protection."
6. Right to Self-Organization and Collective Bargaining
This is further echoed by Article 218 (b) of the Labor Code, which (Constitution, Art. 301I, Sec. 3; Labor Code, Arts. 3 and 253)
declares that it is the policy of the State "to promote free trade
unionism as an instrument for the enhancement of democracy Q: What are the provisions on the right to self-organization and
and the promotion of social justice and development." collective bargaining?
5. Equal Work Opportunities (Constitution, Art. XIII, Sec. A: The legal provisions governing the right to self-organization
3; Labor Code, Art. 3) and collective bargaining are as follows:
Q: What does it mean to provide equal work opportunities? Section 3, Article XIII of the Constitution provides that the State
shall guarantee the rights of all workers to self-organization,
A: Article 3 of the Labor Code provides that the State shall afford collective bargaining and negotiations, and peaceful concerted
protection to labor, promote full employment, ensure equal work activities, including the right to strike in accordance with law.
opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. Article 253 of the Labor Code provides that all persons
employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions,
whether operating for profit or not, shall have the right to self-
organization and to form, join, or assist labor organizations of their
23 Manila Water Company v. Del Rosario, G.R. No. 188747, 29 January 2014. own choosing for purposes of collective bargaining. Ambulant,
24 Zabal v. Duterte, G.R. No. 238467, 12 February 2019.
intermittent and itinerant workers, self-employed people, rural termination of his employment, even if a replacement
workers and those without any definite employers may form had been hired by the employer during such lawful strike.
labor organizations for their mutual aid and protection.
2. No person shall obstruct, impede, or interfere with, by force,
Article 257 of the Labor Code also provides for the non- violence, coercion, threats or intimidation, any peaceful
abridgment of the right to self-organization. It shall be unlawful for picketing by employees during any labor controversy or
any person to restrain, coerce, discriminate against or unduly in the exercise of the right to self-organization or
interfere with employees and workers in their exercise of the collective bargaining, or shall aid or abet such obstruction
right to self-organization. Such right shall include the right to form, or interference.
join, or assist labor organizations for the purpose of collective
3. No employer shall use or employ any strike-breaker, nor
bargaining through representatives of their own choosing and to
shall any person be employed as a strike-breaker.
engage in lawful concerted activities for the same purpose for
their mutual aid and protection. 4. No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines
Q: What are prohibited activities in relation to collective or the Integrated National Police, or armed person, shall
bargaining? bring in, introduce or escort in any manner, any individual
A: Under Article 279 of the Labor Code, the following who seeks to replace strikers in entering or leaving the
activities are prohibited: premises of a strike area, or work in place of the strikers.
The police force shall keep out of the picket lines unless
1. No labor organization or employer shall declare a strike actual violence or other criminal acts occur therein:
or lockout without first having bargained collectively or Provided, That nothing herein shall be interpreted to prevent
without first having filed the notice required or without any public officer from taking any measure necessary to
the necessary strike or lockout vote first having been maintain peace and order, protect life and property, and/
obtained and reported to the Ministry. No strike or lockout or enforce the law and legal order.
shall be declared after assumption of jurisdiction by the
President or the Minister or after certification or submission 5. No person engaged in picketing shall commit any act of
of the dispute to compulsory or voluntary arbitration or violence, coercion or intimidation or obstruct the free
during the pendency of cases involving the same grounds ingress to or egress from the employer's premises for
for the strike or lockout. Any worker whose employment lawful purposes, or obstruct public thoroughfares.
has been terminated as a consequence of any unlawful
7. Construction in Favor of Labor (Labor Code, Art. 4;
lockout shall be entitled to reinstatement with full backwages.
Civil Code, Art. 1702)
Any union officer who knowingly participates in an illegal
strike and any worker or union officer who knowingly Q: What is the principle of construction in favor of labor?
participates in the commission of illegal acts during a
strike may be declared to have lost his employment A: Article 4 of the Labor Code provides that all doubts in the
status: Provided, That mere participation of a worker in a implementation and interpretation of the provisions of this Code,
lawful strike shall not constitute sufficient ground for including its implementing rules and regulations, shall be resolved
in favor of labor.
Article 1702 of the Civil Code also provides that in case of doubt, involved the application of the rules on evidence, not the Labor
all labor legislation and all labor contracts shall be construed in Code, could not necessarily be resolved in favor of Procopio.
favor of the safety and decent living for the laborer. Was the reversal correct? Explain your answer.28
The Supreme Court has also upheld the rudimentary principle A: No, the reversal was incorrect. It is a well-settled doctrine
that in the implementation and interpretation of the provisions of that if doubts exist between the evidence presented by the
the Labor Code and its implementing regulations, the workingman's employer and the employee, the scales of justice must be tilted in
welfare should be the primordial and paramount consideration. favor of the latter. It is a time-honored rule that in controversies
The policy is to extend the applicability of the decree to a greater between a laborer and his master, doubts reasonably arising from
number of employees who can avail of the benefits under the the evidence, or in the interpretation of agreements and writing,
law, which is in consonance with the avowed policy of the State should be resolved in the former's favor.29 In this case, there are
to give maximum aid and protection to labor." doubts in the evidence on record as to the factual basis of the
charges against Procopio. These doubts shall be resolved in his
Further, doubts in the appreciation of evidence in labor cases shall favor in line with the policy under the Labor Code to afford
work to the advantage of labor.26 protection to labor and construe doubts in favor of labor. The
The rule of interpretation under the Labor Code has been applied employer must affirmatively show rationally adequate evidence
to labor contracts. It was held that in the interpretation of their that the dismissal was for a justifiable cause. Since the employer
provisions, labor contracts require the resolution of doubts in did not satisfy its burden of proof, the Labor Arbiter's ruling in
favor of the laborer because of their being imbued with social Procopio's favor should not have been reversed.30
justice considerations.27
Q: In what manner do the labor laws show its solicitous
Q: Procopio was dismissed from employment for stealing his compassionate policy towards the working man?
co-employee Raul's watch. Procopio filed a complaint for A: Labor laws show solicitous compassionate policy towards the
illegal dismissal. The Labor Arbiter ruled in Procopio's favor working man by providing that all doubts in the implementation
on the ground that Raul's testimony was doubtful, and, therefore, and interpretation of labor laws including its implementing rules
the doubt should be resolved in favor of Procopio. On appeal, and regulations shall be resolved in favor of labor. Thus, among
the National Labor Relations Commission (NLRC) reversed others, the Constitution recognizes that workers are entitled to
the ruling because Article 4 of the Labor Code - which states security of tenure, humane conditions of work and a living wage.
that all doubts in the interpretation and implementation of Labor laws should be liberally interpreted to ensure that the
the provisions of the Labor Code, including the implementing above rights are given to workers. Many times, an employee
rules and regulations, shall be resolved in favor of labor - commits an offense that is a valid ground for disciplinary action,
applied only when the doubt involved the "implementation but law and jurisprudence do not automatically provide for the
and interpretation" of the Labor Code; hence, the doubt, which termination of the guilty employee because termination may be
25 Rodriguez v. Park N Ride, Inc., G.R. No. 222980, 20 March 2017. 2B BAR 2017.
26 Celis v. Bank of Makati (A Savings Bank), Inc., G.R. No. 250776, 15 June 2022. 26 Lepanto Consolidated Mining Co. v. Dumapis, G.R. No. 163210, 13 August 2008.
27 Centro Project Manpower Services Corporation v. Naluis, G.R. No. 160123, 17 30 Asuncion v. National Labor Relations Commission, et al., G.R. No. 129329, 31
June 2015. July 2001.

too harsh a penalty, his employment may, more often than not, Also, the burden of proving abandonment is upon the employer
be the sole source of his means of livelihood.3' who, whether pleading the same as a ground for dismissing an
employee or as a mere defense, additionally has the legal duty to
Q: What are the rules regarding burden of proof in illegal observe due process."
dismissal cases?
In claims for payment of salary differential, service incentive
A: As to the existence of employer-employee relationship, the leave, holiday pay and 13th month pay, the burden rests on the
burden of proof lies with the employee. The burden of proof employer to prove payment.36 This standard follows the basic
regarding the fact of dismissal also lies with the employee. rule that in all illegal dismissal cases the burden rests upon the
employer to prove payment rather than on the employee to prove
Before the employer must bear the burden of proving that the
non-payment.37 This likewise stems from the fact that all
dismissal was legal, the employee must first establish by substantial
pertinent personnel files, payrolls, records, remittances and other
evidence the fact of his dismissal from service. If there is no
similar documents - which will show that the differentials,
dismissal, then there can be no question as to the legality or
service incentive leave and other claims of workers have been
illegality thereof.32
paid - are not in the possession of the worker but are in the
On the other hand, the burden of proof rests upon the employer custody and control of the employer.38
to show that the dismissal is for just and valid cause; failure to
do so would necessarily mean that the dismissal was illegal." Q: What is the quantum of evidence required in labor cases?
The employer's case succeeds or fails on the strength of its A: As a rule, the quantum of proof required in labor proceedings is
evidence and not on the weakness of the employee's defense. substantial evidence."
Accordingly, when an employer raises the defense of resignation, Substantial evidence is defined as such amount of relevant evidence
the burden to establish the voluntariness of such resignation rests which a reasonable mind might accept as adequate to support a
on the employer, and the evidence thereon must be clear, conclusion.40 It only entails evidence to support a conclusion,
positive and convincing." "even if other minds, equally reasonable, might conceivably
opine otherwise."41 Accordingly, requiring a quantum of proof
that is over and above substantial evidence is contrary to law.42
35 .4tienza v. Saluta, G.R. No. 233413, 17 June 2019.

36 Minsola v. New City Builders, Inc., G.R. No. 207613, 31 January 2018.
37 Id.
31 CONST., Art. XIII, Sec. 3; Labor Code, Art. 4. 38 Id.
39
32 Renioticado v. Typical Construction Trading Corp., et al., G.R. No. 206529, 23 Musahamat Workers Labor Union-1-AL U v. Musahamat Farms, Inc. Farm 1,
April 2018. G.R. No. 240184, 06 July 2022.
33 Distribution & Control Products, Inc. v. Santos, G.R. No. 212616, 10 July 2017 40 Travelaire & Tours Corp. v. National Labor Relations Commission, G.R. No.
citing Agusan Del Norte Electric Cooperative, Inc„ et al. v. Cagampang, et al., G.R. 131523, 20 August 1998.
No. 167627, 10 October 2008. 41
42
JR Hauling Services v. Solamo,
Id
G.R. No. 214294, 30 September 2020.
34 Dela Fuente v. Gimenez, G.R. No. 214419, 17 November 2021.
22 COMPENDIOUS BAR REVIEWER
ON LABOR LAW
The quantum of proof required in illegal dismissal cases is

merely substantial evidence. The employer need only present
II. Recruitment and
evidence which is adequate to support a conclusion, and not Placement of Workers
evidence which will establish moral certainty of guilt on the part
of the employee.43 A. Recruitment and Placement of Local and Migrant Workers
(Labor Code, Art. 13)
Q: What is recruitment and placement?

A: Recruitment and placement refer to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit
or not: Provided, that any person or entity which, in any manner,
offers or promises for a fee, employment to two or more persons
shall be deemed engaged in recruitment and placement."
The Supreme Court has clarified that regardless of the number of
persons dealt with, recruitment and placement are still constituted.
The proviso merely lays down a rule of evidence that where a fee
is collected in consideration of a promise or offer of employment
to two (2) or more prospective workers, the individual or entity
dealing with them shall be deemed to be engaged in the act of
recruitment and placement. The words "shall be deemed" create
that presumption."
Q: On 12 December 2008, A signed a contract to be part of

the crew of ABC Cruises, Inc. through its Philippine manning
agency XYZ. Under the standard employment contract of the
Philippine Overseas Employment Administration (POEA), his
employment was to commence upon his actual departure from
the port in the point of hire, Manila, from where he would
take a flight to the USA to join the cruise ship "MS Carnegie".
44 Labor Code, Sec. 13(b).

43 G.R. Nos. L-58674-77, 11 July 1986.
People v. Panis, et al.,
43 Philippine Long Distance Telephone Company v. Domingo, G.R. No. 197402, 30

June 2021. 23
24 COMPENDIOUS BAR REVIEWER RECRUITMENT AND PLACEMENT 25
ON LABOR LAW OF WORKERS
However, more than three months after A secured his exit (b) It promotes and facilitates re-integration of migrants
clearance from the POEA for his supposed departure on into the national mainstream;
January 15, 2009, XYZ still had not deployed him for no (c) It is a signatory and/or ratifier of multilateral conventions,
46
valid reason. Is A entitled to relief? Explain. declarations or resolutions relating to the protection of
A: Yes. A is entitled to relief. The breach of the contract of migrant workers;
employment which has already been perfected may give rise to a cause (d) It has concluded a bilateral agreement or arrangement
of action against the erring party. A may obtain the following reliefs: with the government on the protection of the rights of
1. Section 2, Rule I, Part V of the 2003 POEA Rules on overseas Filipino workers.
Employment of Seafarers provides that a complaint for A: (b) It promotes andfacilitates re-integration of migrants into
recruitment violation may be filed by A for XYZ's the national mainstream is not included among the guarantees
failure to deploy him within the prescribed period without listed under Section 4, as amended by R.A. No. 10022.5°
any valid reason.
It bears mentioning, however, that the rights and protections
2. Section 6(L) of R.A. No. 8042 provides that A can file a afforded to Filipino laborers under the Constitution and the
case for illegal recruitment.47 Labor Code shall apply to Filipinos, regardless of whether they
3. A complaint for breach of contract with a claim for are working within the country or abroad. These rights, including
damages may be filed by A before the NLRC, regardless the right to security of tenure, do not disappear simply because a
of the absence of an employer-employee relationship. laborer is working in a different jurisdiction. With respect to the
The Labor Arbiter has jurisdiction over claims which rights of [overseas Filipino workers], we follow the principle of
arise by virtue of any law or contract involving Filipino lex loci contractus.51
workers for overseas deployment including claims for
Q: Which phrase is the most accurate to complete the statement
actual, moral, exemplary and other forms of damages in
— A private employment agency is any person or entity engaged
accordance with Section 10 of R.A. No. 8042.48
in the recruitment and placement of workers:'
Q: The State shall allow the deployment of overseas Filipino (a) For a fee, which is charged directly from the workers.
Workers only in countries where the rights of Filipino migrant
workers are protected. Which of the following is not a guarantee, (b) For a fee, which is charged directly from employers.
on the part of the receiving country, for the protection of the
rights of Overseas Filipino Workers (OFWs)?49 (c) For a fee, which is charged directly or indirectly from
workers, employers or both.
(a) It has existing labor and social laws protecting the
rights of migrant workers;
46 BAR 2010. 5° R.A. No. 8042, Sec. 4, as amended by R.A. No. 10022, Sec. 3.
5I I-People Manpower Resources, Inc., et al. v. Court of Appeals, et al., G.R. No.
47 c£ 2003 POEA Rules on Employment of Seafarers, Part V, Rule I, Section 11.
48 Santiago v. CF Sharp Crew Management, Inc., G.R. No. 162419, 10 July 2007.
246410, 25 January 2023.
57 BAR 2012.
49 BAR 2012.
(d) For a fee, which is charged from workers or employers, A: The following entities, agencies, and units are consolidated
which covers both local and overseas employment. and merged, and hereby constituted as the Department of
Migrant Workers:
A: The most accurate statement is (c) For a fee, which is
charged directly or indirectly from workers, employers or both. 1. The Philippine Overseas Employment Administration (POEA);
Article 13 of the Labor Code provides that "private fee-charging 2. Office of the Undersecretary for Migrant Workers' Affairs
employment agency" means any person or entity engaged in (OUMWA) of the Department of Foreign Affairs (DFA);
recruitment and placement of workers for a fee which is charged,
directly or indirectly, from the workers or employers or both.53 3. All Philippine Overseas Labor Offices (POLO) under
the DOLE;
Q: What are the requirements that an applicant must 4. The International Labor Affairs Bureau (ILAB) under
possess in order to operate a private employment agency for the DOLE;
local employment?
5. The National Reintegration Center for OFWs (NRCO)
A: These are the citizenship and capital requirements.
under the Overseas Workers Welfare Administration
On the citizenship requirement: For single proprietorship, the (OWWA);
applicant must be a resident Filipino citizen. For partnership or 6. The National Maritime Polytechnic (NMP) under the
domestic corporation, at least 75% of the authorized capital stock
DOLE; and
must be owned and controlled by resident Filipino citizens.
7. The Office of the Social Welfare Attaché (OSWA) under
On the capital requirement: For single proprietorship, the the DSWD.
applicant must have a minimum net worth of one million pesos.
For partnership or domestic corporation, the applicant must have Q: Which agency is primarily tasked to protect the rights
a minimum paid-up capital of one million pesos, 75% of which and promote the welfare of OFWs?
must be owned by resident Filipinos as evidenced by the Articles
of Partnership or Incorporation.' A: The Department of Migrant Workers shall be the primary
agency under the Executive Branch of the government tasked to
1. Regulatory Authorities protect the rights and promote the welfare of OFWs, regardless
of status and of the means of entry into the country of destination. It
a. Department of Migrant Workers - R.A. No. 11641, shall formulate, plan, coordinate, promote, administer, and implement
Sections 4-6 policies, and undertake systems for regulating, managing, and
monitoring the overseas employment of Filipino workers and
Q: What constitutes the Department of Migrant Workers? reintegration of OFWs, while taking into consideration the
53Labor Code, Art. 13 (c).

54 DOLE Department Order No. 217, s. 2020, Rules and Regulation governing
recruitment and placement of domestic workers by private employment agencies for
local employment.
national development programs formulated by the National e. Perform all the powers, functions, and responsibilities
Economic and Development Authority (NEDA).55 assigned to all agencies, offices, or units to be transferred to,
or absorbed by, the Department pursuant to the
Q: Does the Department of Migrant Workers regulate consolidation mandated by this Act;
recruitment and placement activities?
f. Require private recruitment and manning agencies to
A: Yes. Under Section 6 (b) of R.A. No. 11641, one of the provide comprehensive insurance to the OFWs they
powers and functions of the Department of Migrant Workers is deploy in accordance with the law: Provided, that with
to regulate the recruitment, employment, and deployment of respect to OFWs deployed through other arrangements, a
OFWs, among others. substantially similar benefit shall be provided to the
concerned OFW; and
Q: Give at least five (5) powers and functions of the
Department of Migrant Workers. g. Perform such other functions as may be necessary to
achieve the objectives of this Act.
A: Section 6, R.A. No. 11641 enumerates the powers and functions
of the Department of Migrant Workers which are as follows: b. DOLE Secretary; Regulatory and Visitorial Powers —
Labor Code, Articles 33, 36 and 37
a. Regulate the recruitment, employment, and deployment
of OFWs; Q: Discuss the regulatory and visitorial powers of the Secretary
of Labor.
b. Investigate, initiate, sue, pursue, and help prosecute56
illegal recruitment and human trafficking cases, and A: The Secretary of Labor shall have the power to restrict and
other existing laws and other issuances;57 regulate the recruitment and placement activities of all agencies
within the coverage Title I (Recruitment and Placement of Workers)
c. Protect and promote the welfare, well-being, and
of the Labor Code and is authorized to issue orders and promulgate
interests of the families of OFWs;
rules and regulations to carry out the objectives and implement
d. Regulate the operations of private recruitment and the provisions of said Title.58
manning agencies involved in the deployment of OFWs
The Secretary of Labor or his duly authorized representatives
abroad to protect the interests and well-being of these workers;
may, at any time, inspect the premises, books of accounts and
records of any person or entity covered by Title I of the Labor
55 R.A. No. 11641, Sec. 5.
Code, require it to submit reports regularly on prescribed forms, and
56 In cooperation with the Department of Justice (DOJ) and the Inter-Agency act on violation of any provisions of Title I of the Labor Code."
Council Against Trafficking (IACAT).
57 Further, 6, R.A. No. 11641 provides that in the performance of its functions, the
Department Secretary and his or her authorized deputy shall have the power: (1) to
issue subpoena or subpoena duces tecum to any person for investigation for illegal
recruitment or trafficking in persons cases as defined under Republic Act No. 9208,
as amended, and other existing laws and other issuances; and hold or cite any person
in contempt as may be provided by the implementing rules and regulations; (2) to
administer oaths upon cases under investigation; and (3) to have access to all public 58 Labor Code, Art. 36.
records and to records of private parties and concerns, in accordance with law. 59 Labor Code, Art. 37.
Q: Who has the power to terminate, suspend, or impose a 2. International organizations;

total ban on the deployment of migrant workers?
3. Heads of state and government officials with the rank of
A: The Secretary of the Department of Migrant Workers6° may, at least deputy minister;
at any time, terminate, suspend, or impose a total ban on the
4. Other employers as may be allowed by the Secretary of
deployment of migrant workers, when upon his or her assessment,
Labor and Employment, such as:
after consultation with the advisory board on migration and
development and the Secretary of the DFA in consonance with a. Those provided in (a), (b) and (c) who bear a lesser
R.A. No. 8042, as amended, the conditions in the receiving rank, if endorsed by the Philippine Overseas Labor
country or region are inimical and not protective of the best Office (POLO), or Head of Mission in the absence
interest, welfare, and safety of migrant workers. of the POLO;
2. Regulation of Recruitment and Placement Activities b. Professionals and skilled workers with duly executed/
authenticated contracts containing terms and conditions
a. Ban on Direct Hiring; Exceptions — Labor Code, Article 18 over and above the standards set by the POEA. The
number of professional and skilled OFWs hired for
Q: What is the ban on direct hiring? the first time by the employer shall not exceed five
A: Article 18 of the Labor Code provides that no employer may (5). For the purpose of determining the number,
hire a Filipino worker for overseas employment except through workers hired as a group shall be counted as one; or
the Boards and entities authorized by the Secretary of Labor. c. Workers hired by a relative/family member who is a
Direct hiring by members of the diplomatic corps, international permanent resident of the host country.62
organizations and such other employers as may be allowed by
the Secretary of Labor is exempted from this provision. 5. Name Hires.63
Q: What is a name hire? Q: TRUE or FALSE: As a general rule, direct hiring of

OFWs is not allowed.64
A: A name hire is a worker who is able to secure employment
overseas on his own without the assistance or participation of A: True. Article 18 of the Labor Code provides that as a
any agency or entity.G1 general rule, direct hiring of OFWs is banned. Some exceptions
include the direct hiring by members of the diplomatic corps,
Q: Who are excluded from the ban on direct hiring? international organizations and such other employers as may be
A: The following are excluded from the ban on direct hiring: allowed by the DOLE is exempted from the ban on direct hiring.
1. Members of the diplomatic corps;
62 2016 Revised POEA Rules and Regulations, Sec. 124.

R.A. No. 11641, Sec. 8(k). 63 2016 Revised POEA Rules and Regulations, Sec. 6.
61 IRR of the Labor Code, Book I, Rule I, Sec. 1 (gg). 64 BAR 2010.
Name hires are also considered direct hires. These are workers a. Those convicted, or against whom probable cause
who are able to secure an overseas employment opportunity with or prima facie finding of guilt is determined by a
an employer without the assistance or participation of any agency.65 competent authority, for illegal recruitment, or for
other related crimes or offenses committed in the course
b. Entities and persons prohibited from recruiting — Labor of, related to, or resulting from, illegal recruitment,
Code, Article 26; R.A. No. 8042, as amended by R.A. No. or for crimes involving moral turpitude;
10022, Section 6 (ii;, Revised POEA Rules 2016 for Land-
b. Those agencies whose licenses have been revoked
based Workers, Part II, Rule I, Section 3
for violation of R.A. No. 8042 (Migrant Workers and
Q: Who are disqualified from engaging in the recruitment Overseas Filipinos Act of 1995), as amended, PD 442
and placement of workers for overseas employment? (Labor Code of the Philippines), as amended, and
R.A. No. 9208 (Trafficking in Persons Act of 2003),
A: The following are disqualified from the recruitment and as amended, and their implementing rules and
placement of workers for overseas employment: regulations;
1. Travel agencies and sales agencies of airline companies; c. Those agencies whose licenses have been cancelled, or
those who, pursuant to the Order of the Administrator,
2. Officers or members of the Board of any corporation or
were included in the list of persons with derogatory
partners in a partnership engaged in the business of a
record for violation of recruitment laws; and
travel agency;
d. Any official or employee of the DOLE, POEA, OWWA,
3. The applicant is presently an incorporator, director or
DFA, DOJ,66 DOH,67 BI,68 IC,69 NLRC, TESDA,7°
key officer of at least five (5) licensed manning agencies;
CFO,71 NBI,72 PNP,73 CAAP,74 MARWIA,75 international
4. Corporations and partnerships, where any of its officers, airport authorities, and other government agencies
members of the board or partners is also an officer, member directly involved in the implementation of R.A. No.
of the board or partner of a corporation or partnership 8042, as amended, and/or any of his/her relatives
engaged in the business of a travel agency; within the fourth civil degree of consanguinity or
affinity.76
5. Individuals, partners, officers or directors of an insurance
company who make, propose or provide an insurance contract
under the compulsory insurance coverage for seafarers;
66 Department of Justice.
6. Sole proprietors, partners or officers and members of the 67 Department of Health.
61 Bureau of Immigration.
board with derogatory records, such as, but not limited
69 Insurance Commission.
to the following: 70 Technical Education and Skills Development Authority.
71 Commission on Filipino Overseas.
J2 National Bureau of Investigation.
~3 Philippine National Police.
" Civil Aviation Authority of the Philippines.
76 Maritime Industry Authority.
65 2016 Revised POEA Rules and Regulations, Sec. 6; R.A. No. 8042, Rule II, Sec.
1, as amended by R.A. No. 10022. 76 2016 Revised POEA Rules and Regulations, Rule I. Part II, Sec. 3.
Q: Who are disqualified from engaging in the recruitment c. Non-transferability of License or Authority — Labor
and placement of workers for local employment? Code, Article 29
A: The following are disqualified from the recruitment and Q: Jose is the manager and Pre-Departure Orientation
placement of workers for local employment: Seminar Trainor of the Workers for Overseas Recruitment
Key Center, Inc. (WORK, Inc.), a licensed private recruitment
1. Those who are convicted of illegal recruitment, trafficking agency. In 1992, Jose represented himself to be a licensed
in persons, anti-child labor violation, or crimes involving recruiter and convinced complainants Maria, Marie, Mary,
moral turpitude; and May that for a consideration, they could work abroad at
2. Those against whom probable cause or prima facie finding Taipei either as a domestic helper or factory worker. Later,
of guilt for illegal recruitment or other related cases exist however, complainants sensed that they would not leave
particularly to owners or directors of agencies who have anymore. Thus, they filed a complaint against Jose. The
committed illegal recruitment or other related cases; Chief of the Licensing Branch of POEA testified that Jose is
not a licensed recruiter as evidenced by the Certification
3. Those agencies whose licenses have been previously submitted to and approved by the POEA.
revoked or cancelled by the DOLE;
In his defense, Jose argues that because of his position in
4. Cooperatives whether registered or not under the Cooperative WORK, Inc., which is a licensed private recruitment agency,
Act of the Philippines; it follows that he has the authority to recruit. Is Jose's
contention tenable?
5. Law enforcers and any official and employee of the DOLE;
A: No. Article 29 of the Labor Code provides that no license or
6. Sole proprietors of duly licensed agencies are prohibited authority shall be used directly or indirectly by any person other
from securing another license to engage in recruitment than the one in whose favor it was issued or at any place other
and placement; and than that stated in the license or authority be transferred,
7. Sole proprietors, partnerships or corporations licensed to conveyed or assigned to any other person or entity. Any transfer
engage in private recruitment and placement for local of business address, appointment or designation of any agent or
employment are prohibited from engaging in job contracting representative including the establishment of additional offices
or sub-contracting activities." anywhere shall be subject to the prior approval of the DOLE.
Here, even assuming that WORK, Inc. had authorized Jose by
reason of his position in the company to recruit workers, still,
such authority was not previously approved by the POEA. Jose's
employment with a licensed placement agency does not ipso
facto authorize him to recruit workers.78
77DOLE Department Order No. 141, s.2014, Revised Rules and Regulations
Governing Recruitment and Placement for Local Employment, Sec. 5. 78 Abaca v. Court of Appeals, et al., G.R. No. 127162, 05 June 1998.
d. Suspension or cancellation of license or authority — e. Prohibited Practices — Labor Code, Article 34; R.A. No.
Labor Code, Article 35; Revised POEA Rules 2016 for 8042, as amended by R.A. No. 10022, Section 6; Revised
Land-based Workers, Part III, Rule 1, secs. 101 and 104 POEA Rules 2016 for Land-based Workers, Part I, Rule
Section 76
Q: What is the difference between a license and an authority?
Q: What are the prohibited practices in recruitment for
A: A license means a document issued by the DOLE authorizing a local employment?
person or entity to operate a private employment agency.79 On the
other hand, an authority refers to a document issued by the DOLE A: Article 34 of the Labor Code provides that the following
authorizing a person or association to engage in recruitment and practices shall be prohibited for any individual, entity, licensee,
placement activities as a private recruitment entity.80 or holder of authority:
1. To charge or accept, directly or indirectly, any amount
Q: Who may suspend and/or cancel a license or authority?
greater than that specified in the schedule of allowable
A: The Secretary of Labor and Employment shall have the power fees prescribed by the Secretary of Labor, or to make a
to suspend or cancel any license or authority to recruit employees worker pay any amount greater than that actually received
for overseas employment for violation of rules and regulations by him as a loan or advance;
issued by the DOLE, the Department of Migrant Workers, or for
2. To furnish or publish any false notice or information or
violation of the provisions of the Labor Code and other
document in relation to recruitment or employment;
applicable laws.81
3. To give any false notice, testimony, information or document
The Department of Migrant Workers shall suspend or revoke the
or commit any act of misrepresentation for the purpose
license of a manning agency for failure to maintain the required
of securing a license or authority;
qualifications or conditions for the issuance of a license."
4. To induce or attempt to induce a worker already employed
The power to suspend or cancel any license or authority to recruit
to quit his employment in order to offer him to another
employees for overseas employment is concurrently vested with
unless the transfer is designed to liberate the worker
the Department of Migrant Workers and the Secretary of Labor."
from oppressive terms and conditions of employment;
5. To influence or to attempt to influence any person or
entity not to employ any worker who has not applied for
employment through his agency;
6. To engage in the recruitment or placement of workers in
jobs harmful to public health or morality or to the
79 Labor Code, Art. 13(d).
80 Labor Code, Art. 13 (f). dignity of the Republic of the Philippines;
81 Labor Code, Art. 35.
82 R.A. No. 11641, Sec. 4 in relation to 2016 Revised POEA Rules and Regulations, 7. To obstruct or attempt to obstruct inspection by the Secretary
Rule II, Part II, Sec. 19. of Labor or by his duly authorized representatives;
83 People v. Diaz, G.R. No. 112175, 26 July 1996; R.A. No. 11641, Sec. 4 in
relation to 2016 Revised POEA Rules and Regulations, Rule II, Part II, Sec. 19.
8. To fail to file reports on the status of employment, placement of securing a license or authority under the Labor Code,
vacancies, remittance of foreign exchange earnings, separation or for the purpose of documenting hired workers with
from jobs, departures and such other matters or information the POEA, which include the act of reprocessing workers
as may be required by the Secretary of Labor; through a job order that pertains to nonexistent work,
work different from the actual overseas work, or work
9. To substitute or alter employment contracts approved with a different employer whether registered or not with
and verified by the Department of Labor from the time of the POEA;
actual signing thereof by the parties up to and including
the periods of expiration of the same without the approval 4. To include or attempt to induce a worker already employed
of the Secretary of Labor; to quit his employment in order to offer him another,
unless the transfer is designed to liberate a worker from
10. To become an officer or member of the Board of any oppressive terms and conditions of employment;
corporation engaged in travel agency or to be engaged directly
or indirectly in the management of a travel agency; and 5. To influence or attempt to influence any person or entity
not to employ any worker who has not applied for employment
11. To withhold or deny travel documents from applicant workers through his agency or who has formed, joined or
before departure for monetary or financial considerations supported, or has contacted or is supported by any union
other than those authorized under the Labor Code and its or workers' organization;
implementing rules and regulations.
6. To engage in the recruitment or placement of workers in
Q: What are the prohibited practices in the recruitment for jobs harmful to public health or morality or to the dignity
overseas employment? of the Republic of the Philippines;
A: Section 6 of R.A. No. 8042 or the "Migrant Workers and 7. To obstruct or attempt to obstruct inspection by the
Overseas Filipino Act", as amended by R.A. No. 10022, Secretary of Labor and Employment or by his duly
provides that the following practices are prohibited, whether authorized representative;
committed by any person, whether a non-licensee, non-holder,
licensee or holder of authority: 8. To fail to submit reports on the status of employment,
placement vacancies, remittance of foreign exchange
1. To charge or accept directly or indirectly any amount earnings, separation from jobs, departures and such other
greater than that specified in the schedule of allowable matters or information as may be required by the Secretary
fees prescribed by the Secretary of Labor and Employment, of Labor and Employment;
or to make a worker pay or acknowledge any amount greater
than that actually received by him as a loan or advance; 9. To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by the
2. To furnish or publish any false notice or information or Department of Labor and Employment from the time of
document in relation to recruitment or employment; actual signing thereof by the parties up to and including
the period of the expiration of the same without the
3. To give any false notice, testimony, information or document approval of the Department of Labor and Employment;
or commit any act of misrepresentation for the purpose
10. For an officer or agent of a recruitment or placement only from specifically designated institutions, entities
agency to become an officer or member of the Board of or persons;
any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of travel agency; 3. Refusing to condone or renegotiate a loan incurred by an
overseas Filipino worker after the latter's employment contract
11. To withhold or deny travel documents from applicant workers has been prematurely terminated through no fault of his
before departure for monetary or financial considerations, or her own;
or for any other reasons, other than those authorized under
4. Imposing a compulsory and exclusive arrangement whereby
the Labor Code and its implementing rules and regulations;
an overseas Filipino worker is required to undergo health
12. Failure to actually deploy a contracted worker without examinations only from specifically designated medical
valid reason as determined by the Department of Labor clinics, institutions, entities or persons, except in the
and Employment; case of a seafarer whose medical examination cost is
shouldered by the principal/shipowner;
13. Failure to reimburse expenses incurred by the worker in
connection with his documentation and processing for 5. Imposing a compulsory and exclusive arrangement whereby
purposes of deployment in cases where the deployment an overseas Filipino worker is required to undergo training,
does not actually take place without the worker's fault. seminar, instruction or schooling of any kind only from
Illegal recruitment when committed by a syndicate or specifically designated institutions, entities or persons,
in large scale shall be considered an offense involving except for recommendatory trainings mandated by principals/
economic sabotage; and shipowners where the latter shoulder the cost of such
trainings;
14. To allow a non-Filipino citizen to head or manage a licensed
recruitment/manning agency.84 6. For a suspended recruitment/manning agency to engage
in any kind of recruitment activity including the processing
In addition to the foregoing, the following practices are also of pending workers' applications; and
prohibited under Section 6 of R.A. No. 8042, as amended:
7. For a recruitment/manning agency or a foreign principal/
1. Granting a loan to an overseas Filipino worker with employer to pass on the overseas Filipino worker or
interest exceeding eight percent (8%) per annum, which deduct from his or her salary the payment of the cost of
will be used for payment of legal and allowable placement insurance fees, premium or other insurance related charges,
fees and make the migrant worker issue, either personally as provided under the compulsory worker's insurance coverage.
or through a guarantor or accommodation party, postdated
checks in relation to the said loan; f. Illegal Recruitment
2. Imposing a compulsory and exclusive arrangement whereby i. Elements and Types — Labor Code, Article 38: R.A. No.
an overseas Filipino worker is required to avail of a loan 8042, as amended by R.A. No. 10022, Section 6
Q: How is illegal recruitment of local workers committed

84The underlined portions are distinct from the prohibited practices listed under under the Labor Code?
Article 34 of the Labor Code.
A: Article 38 provides that non-licensees or non-holders of three (3) or more persons individually or as a group. When illegal
authority are guilty of illegal recruitment when they undertake any recruitment does not constitute sabotage, it is simple illegal recruitment.
recruitment activity (canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract Q: Must the number of victims be alleged in a complaint for
services, promising or advertising for employment, locally or abroad, illegal recruitment done in large scale?
whether for profit or not) or when they do any of the prohibited A: Yes. The number of victims must be alleged in the information
practices enumerated under Article 34 of the Labor Code. for illegal recruitment.85
However, even licensees and holders of authority may be guilty
Q:
of illegal recruitment when they do any of the prohibited practices
enumerated under Article 34 of the Labor Code. a. Rocket Corporation is a domestic corporation registered
with the SEC, with 30% of its authorized capital stock
Q: How is illegal recruitment of migrant workers committed owned by foreigners and 70% of its authorized capital
under R.A. No. 8042, as amended by R.A. No. 10022? stock owned by Filipinos. Is Rocket Corporation allowed
to engage in the recruitment and placement of workers,
A: Section 6 of R.A. No. 8042, as amended provides that a non-
licensee or non-holder of authority commits illegal recruitment locally and overseas? Briefly state the basis for your
answer.
when they undertake any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and includes b. When does the recruitment of workers become an act of
referring, contract services, promising or advertising for employment economic sabotage?"
abroad, whether for profit or not, provided, that any such non-
licensee or non-holder who, in any manner, offers or promises A:
for a fee employment abroad to two or more persons shall be
a. No. Article 27 of the Labor Code provides that only corporations,
deemed so engaged.
partnerships or entities at least seventy-five percent (75%) of
There is also illegal recruitment when any of the prohibited acts the authorized and voting capital stock of which is owned
listed in Section 6 of R.A. No. 8042, as amended is committed, and controlled by Filipino citizens shall be permitted to
whether by a non-licensee, non-holder, licensee or holder of authority. participate in the recruitment and placement of workers,
locally or overseas. Thus, Rocket Corporation cannot validly
Q: What are the types of illegal recruitment? engage in recruitment and placement of workers, locally and
overseas, as only seventy percent (70%) of its authorized capital
A: Illegal recruitment may either be simple illegal recruitment stock is owned by Filipinos.
or constituting economic sabotage. Article 38 of the Labor Code
provides that illegal recruitment when committed by a syndicate b. Section 6 (m) of R.A. No. 8042 provides that illegal recruitment
or in large scale shall be considered an offense involving economic when committed by a syndicate or in large scale shall be
sabotage. Illegal recruitment is deemed committed by a syndicate if considered an offense involving economic sabotage. Illegal
carried out by a group of three (3) or more persons conspiring
and/or confederating with one another. Meanwhile, illegal recruitment
is deemed committed in large scale if it is committed against 85 People v. Fernandez, et al., G.R. No. 193478, 23 June 2014.
86 BAR 2015.
recruitment is deemed committed by a syndicate if carried purported jobs abroad. Given these circumstances, complainants
out by a group of three (3) or more persons conspiring or genuinely believed that Regina could make their dream of overseas
confederating with one another. It is deemed committed in employment come true and handed their hard-earned money to
large scale if committed against three (3) or more persons her. However, the expected employment did not take place.
individually or as a group. Worse, the complainants have not been reimbursed the full
amount of their placement fees. Furthermore, Regina had no
Q: Milagros received a phone call that Regina and Darwin authority to engage in recruitment activities. Finally, there are
were conducting interviews for applicants interested to work four (4) complainants who testified against Regina which
abroad as apple-pickers in Canada. Darwin interviewed qualified the offense to economic sabotage. All the complainants
Milagros and gave her a list of employment requirements suffered miserable fate in their desire to work abroad.87
and fees. Milagros shared the job opportunity to her nieces
Germaine, Geraldine and Gloria. Regina and Darwin promised Q: On 8 March 2015, Cherrylyn Chan Ramos (Ramos)
to send them to Canada. Thereafter, Regina received the introduced herself as the manager of a restaurant based in
placement fees of Milagros, Germaine, Geraldine and Gloria. Singapore located near Sentosa Park, and of a recruitment
In these transactions, Regina assured them of earning high agency, while Susana Ojastro (Ojastro) was supposedly the
compensation, and further instructed them to await their secretary of a recruitment agency. They offered Angelo the
deployment. Unfortunately, no one got to leave for Canada opportunity for employment abroad. Upon payment, Angelo
nor got their money back. Regina and Darwin were charged was issued an undated petty cash voucher. Angelo asked for
with large scale illegal recruitment. the name of the recruitment agency, however, both of them
refused to give its name because their boss was allegedly held
Darwin remained at large. Regina pleaded not guilty. The up before when they did. At this point, Angelo already
prosecution presented the testimonies of the victims and a wanted to back out from the application, but Ramos and
certification from the POEA that Regina and Darwin had no Ojastro warned him that if he did, he would be blacklisted
license to recruit workers abroad. Regina denied the from future employment abroad.
accusations and claimed that she did not promise overseas
employment nor receive money from the victims, and that Due to his growing suspicion, Angelo went to the DOLE to
she was a victim of Darwin who offered her work abroad as ask for assistance about the incident. The DOLE informed
well. Is Regina liable for large scale illegal recruitment? him that they could not give him any information as Ramos
and Ojastro's names were not on the list of those licensed or
A: Yes. All the elements of large scale illegal recruitment are given the authority to do recruitment activities. So, Angelo
present in this case. The prosecution established that Regina went to the National Bureau of Investigation (NBI).
engaged in recruitment activities and gave complainants the
distinct impression that she had the power or ability to send them Similarly, Rodel and Rudilyn were likewise illegally recruited
abroad for work. Regina directly transacted with the complainants by both Ramos and Ojastro. Rodel, on one hand, paid placement
regarding the job prospect in Canada and personally assisted fees for him to be recruited to a restaurant in Singapore.
them in completing the requirements for deployment. Regina
received money from the complainants as placement fees and
gave assurances that they will earn high compensation for their B7 People of the Philippines v. Begino, et al., G.R. No. 251150, 16 March 2022,
[M.V. Lopez, J.]
Rudilyn, on the other hand, was promised employment as a "Cherryline Garcia Ramos" and "Susana Rabanal Ojastro."
waitress in Singapore but she was unable to pay the processing Is their argument tenable?
fee. Both Rodel and Rudilyn went to the NBI. Because of the A: No. Their argument is untenable. A POEA certification is a
reports of Angelo, Rodel, and Rudilyn, an entrapment
public document issued by a public officer in the performance of
operation was planned and eventually both Ramos and
official duty, hence, it is prima facie evidence of the facts stated
Ojastro was arrested.
therein. Further, public documents are entitled to a presumption
On their defense, Ramos and Ojastro argued that it was not of regularity. Consequently, the burden of proof rests upon him,
proven that they did not have the required license or who alleges the contrary. The burden, therefore, was on Ramos
authority to lawfully engage in the recruitment of workers. and Ojastro to present evidence to prove their innocence. Ramos
and Ojastro could have presented their license or authority if
a. Are the elements of large scale illegal recruitment they were granted one or supplied the courts with evidence to
present in this case? prove that their identities are different from those indicated in the
POEA certification. Unfortunately, they did not. Moreover, the
A: Yes. The elements of large scale illegal recruitment are
law is clear in punishing illegal recruitment activities, whether it
present in this case. First, Ramos and Ojastro do not possess the
is done for profit or otherwise, and whether they are undertaken
required license or authority to enable them to lawfully engage in
by a non-licensee or non-holder of authority or a licensee or
the recruitment and placement of workers. Second, Ramos and
holder of authority.89
Ojastro promised to provide opportunities for overseas employment
at a restaurant in Singapore to Angelo, Rodel, and Rudilyn, c. Ramos and Ojastro argued that since Rudilyn did not
solicited payment from them, and failed to actually deploy them sign any contract, and she did not give any amount as
without valid reason. Ramos and Ojastro performed these acts payment to them, the element that they committed illegal
under the false premise that they possessed the required license recruitment in a large scale against three or more
or authority to perform overseas recruitment activities. As persons individually or as a group is wanting. Are Ramos
Ramos and Ojastro committed the foregoing acts against three and Ojastro correct?
people - Angelo, Rodel, and Rudilyn - the offense committed
was qualified as illegal recruitment and constitutes economic A: No, Ramos and Ojastro are incorrect. Receipt of money is
sabotage, specifically on a large scale.88 not necessary as proof for conviction in an illegal recruitment
case if the prosecution's evidence successfully establishes the
b. Ramos and Ojastro argued that it was a certain "Cherryline accused's guilt, as in the case. Thus, it is irrelevant that Rudilyn
Chan Ramos" and "Susana Rabanal Ojastro" who did was not able to give any amount to Ramos and Ojastro.9°
not possess the necessary license or authority to conduct Further, the execution of a contract between the parties need not
overseas recruitment activities in the POEA Certification. be proven as it does not fall under the elements of the crime of
They raised that these referred to people who may not illegal recruitment.
necessarily refer to them as their actual names are
89
People of the Philippines v. Ramos, et al., G.R. No. 257675, 13 February 2023.
88 People of the Philippines v. Ramos, et al., G.R. No. 257675, 13 February 2023. 90 People of the Philippines v. Ramos, et al., supra.
ii. Illegal Recruitment vs. Estafa — R.A. No. 8042, as the implementation of the employment contract involving seafarers
amended by R.A. No. 10022; Section 6, Revised Penal is joint and several (solidary). The liability of partners, or officers
Code, Article 315, par. 2 (a) and directors with the partnership or corporation over claims
arising from employer-employee relationship shall also be solidary.93
Q: May a person be convicted separately of illegal recruitment
Further, Section 10 of R.A. No. 8042, as amended provides that
and estafa for the same acts?
the liability of the principal/employer and the recruitment/ placement
A: Yes. It is settled that a person, for the same acts, may be agency for any and all claims under this section shall be joint and
convicted separately of illegal recruitment and estafa under Article several. This provision shall be incorporated in the contract for
315(2)(a) of the Revised Penal Code. The elements of estafa are: overseas employment and shall be a condition precedent for its
(1) the accused defrauded another by abuse of confidence or by approval. The performance bond to be filed by the recruitment/
means of deceit; and (2) the offended party or a third party suffered placement agency, as provided by law, shall be answerable for
damage or prejudice capable of pecuniary estimation. Deceiving all money claims or damages that may be awarded to the
another person into believing that one has the authority and workers. If the recruitment/placement agency is a juridical being,
capability to send them abroad for employment and making them the corporate officers and directors and partners as the case may
part with their hard-earned money for the payment of an agreed be, shall themselves be jointly and solidarily liable with the
placement fee constitutes estafa.91 corporation or partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration
g. Solidary Liability of Local Recruitment Agency and of the employment contract and shall not be affected by any
Foreign Employer — R.A. No. 8042, as amended by R.A. substitution, amendment or modification made locally or in a
No. 10022, Section 10; Theory of Imputed Knowledge foreign country of the said contract.
Q: Who may be held criminally liable for illegal recruitment? Q: SRL International Manpower Agency (SRL) is the local
manpower agency of the foreign principals namely, Akkila
A: The principals, accomplices and accessories to the illegal
Co. Ltd. UAE (Akkila) and Al Salmeen Trading Est. (Al
recruitment are criminally liable. In case of juridical persons, the
Salmeen).
officers having ownership, control, management or direction of
their business, who are responsible for the commission of the offense Akkila informed SRL that it needed manpower for its Qatar
and the responsible employees/agents thereof shall be liable." project. In view of this, Pedro Yarza (Yarza) submitted his
application as Project Manager to SRL. Unknown to SRL,
Q: What is the nature of liability of the local recruitment Akkila and Yarza directly contacted each other. To SRL's
agency and the foreign employer regarding the claims of surprise, Akkila sent a visit visa for Yarza instead of an
the OFW? employment visa. SRL protested and informed Akkila that
A: The nature of liability of the foreign principal/employer and Yarza cannot be deployed under a visit visa since it would
the licensed manning agency for any and all claims arising out of violate the rules of the Philippine Overseas Employment
Agency (POEA). Akkila and Yarza insisted on using the visit
91 G.R. No. 198795, 07 June 2017.

People v. Delos Reyes,
92 IRR of R.A. No. 10022, Rule IV, Sec. 4. 93 POEA Rules and Regulations Governing Overseas Employment, Rule II, 2016.
visa. Nonetheless, SRL turned over to Yarza all of his Yarza's deployment would be in accordance with existing
documents including the visit visa. From then on, SRL did policies, from the beginning of the employment until its end.94
not facilitate Yarza's deployment as SRL did not agree to act
Q: What is the solidary liability in recruitment?
as the local manpower agency of Akkila. Yarza was
eventually hired as Akkila's Project Manager for two years. A: R.A. No. 8042, as amended, holds recruitment agencies
solidarily liable with the foreign employers for all claims arising
Later, Yarza was repatriated to the Philippines with an
from the employment of OFWs. Such solidary liability is anchored
instruction to renew his visa, and with the condition that he
on the following documents that an agency is required to submit
should return 10 days after its processing. Although Yarza
as part of its application for a recruitment license:
complied with all the requirements, Akkila terminated his
employment without prior notice and due process. Yarza 1. A verified undertaking to assume all responsibilities for
filed a complaint for illegal dismissal against SRL and the proper use of its license and the implementation of
Akkila. As proof against SRL, Yarza offered the contents of the contracts of employment with the workers it recruited
the e-mail correspondence between him and SRL which and deployed.
encompasses the interview period until the issuance of the
plane ticket for Yarza. Is SRL solidarily liable to Yarza? 2. An agency contract with the foreign employer, empowering
it to sue and be sued jointly and solidarily with the
A: Yes, SRL and Akkila are solidarily liable to Yarza. Even if foreign principal for any violations of the recruitment
Yarza's employment contract was not previously approved by the agreement and contracts of employment.
POEA, he should still be protected by our labor laws precisely
because an employer-employee relationship was established. SRL 3. Cash and surety bonds to guarantee compliance with the
participated in Yarza's initial deployment despite its insistence terms and conditions of employment.95
that it ceased to process his documents after discovering that a
visit visa was secured instead of a work visa. According to the Q: When does the solidary liability of the foreign employer
time stamps and the contents of the e-mail correspondence, SRL and the local recruitment agency end?
participated, one way or another, and acted as Akkila's local A: If either or both of the parties decide to end the agreement, the
manning agent. responsibilities of such parties towards the contracted employees
Here, Yarza proved SRL's solidary liability with its foreign under the agreement do not at all end, but the same extends up to
principal, Akkila/A1 Salmeen. This is notwithstanding Yarza's and until the expiration of the employment contracts of the
undocumented status or SRL's insistence on its supposed non- employees recruited and employed.96
participation. SRL cannot evade liability by simply refusing to
process an overseas worker's documentation yet at the same time
admit to being the local manning agent of a foreign principal
which invalidly dismissed an employee. As the local placement
agency, SRL should have employed measures to ensure that 94 SRL International Manpower Agency v. l'arza, G.R. No. 207828, 14 February 2022.
95 Royal Crown Internationale v. National Labor Relations Commission, et al., G.R.
No. 78085, 16 October 1989.
96
ATCI Overseas Corporation, et al. v. Echin, G.R. No. 178551, 11 October 2010
citing Skippers United Pacific v. Maguad.
Q: What is the effect on the solidary liability of the original A:

recruitment agency in case of transfer of accreditation by the
a. No. The obligation to register personnel such as X with the
employer from the original recruitment agency to another
POEA belongs to the officers of the agency. A mere
agency?
employee of the agency cannot be expected to know the
A: Even if there was transfer of accreditation by the employer legal requirements for its operation. X's conscious and active
from one recruitment agency to another, the liability of the participation in the commission of the crime of illegal
original agency to employees remained intact because respondent recruitment must be proven beyond reasonable doubt for him
employees are not privy to such contract.97 to be convicted."
Q: A was approached for possible overseas deployment to b. Yes. Section 6(m) of R.A. No. 8042 provides that failure to
Dubai by X, an interviewer of job applicants for Alpha reimburse expenses incurred by the worker in connection
Personnel Services, Inc., an overseas recruitment agency. X with his documentation and processing for purposes of
required A to submit certain documents (passport, NBI deployment, in cases where the deployment does not actually
clearance, medical certificate) and to pay P25,000 as processing take place without the worker's fault constitutes illegal
fee. Upon payment of the said amount to the agency cashier, recruitment.
A was advised to wait for his visa. After five months, A
Q: A was recruited to work abroad by Speedy Recruitment
visited the office of Alpha Personnel Services, Inc. during
Agency as a technician for a Saudi Arabian construction
which X told him that he could no longer be deployed for
firm, with a monthly salary of $650.00. When she got to the
employment abroad. A was informed by the Philippine
construction site, the employer compelled her to sign another
Overseas Employment Administration (POEA) that while
contract that referred her to another employer for a salary of
Alpha Personnel Sendees, Inc. was a licensed agency, X was
$350.00. She worked for the second employer and was paid
not registered as its employee, contrary to POEA Rules and
$350.00 until her two-year contract expired. Upon her return
Regulations. Under POEA Rules and Regulations, the
to the Philippines, she filed a case against the agency and the
obligation to register personnel with the POEA belongs to
two employers. May the agency validly raise the defense that
the officers of a recruitment agency.
it was not privy to the transfer of A to the second employer?
a. May X be held criminally liable for illegal recruitment? Explain.'"
Explain.
A: No. Section 10 of R.A. No. 8042, as amended, provides that
b. May the officers having control, management or direction of the liability of the principal/employer and the recruitment/
Alpha Personnel Services, Inc. be held criminally liable placement agency for any and all money claims arising out of an
for illegal recruitment? Explain.98 employer-employee relationship or by virtue of any law or contract
involving Filipino workers for overseas deployment shall be
joint and several. This provision shall be incorporated in the
97
Powerhouse Staffbuilders International Inc. v. Rey, et al., G.R. No. 190203, 07
November 2016. 99 People v. Chowdury, G.R. No. 129577-80, 15 February 2000.
98 BAR 2010. l°° BAR 2010.
contract for overseas employment and shall be a condition Q: Explain the theory of imputed knowledge in relation to
precedent for its approval. Thus, Speedy is solidarily liable with recruitment and placement cases.
the principal employer to A.101 A: The theory of imputed knowledge ascribes the knowledge of
the agent to the principal. However, the knowledge of the
Q: What is the nature of the liabilities of the local recruitment
principal cannot be imputed to the agent. In applying this
agency and its foreign principal?102
principle to recruitment and placement cases, the Supreme Court
(a) The local agency is jointly liable with the foreign principal; held that an agent may not be held solidarily liable with the
severance of relations between the local agent and principal in cases where the agent cannot be shown to have known
the foreign principal dissolves the liability of the local or consented to the employment contract extension between the
agent recruiter; principal-foreign employer and the employee. 104
(b) Local agency is solidarily liable with the foreign principal; h. Termination of Contract of Migrant Workers — R.A. No.
severance of relations between the local agent and the 8042, as amended by R.A. No. 10022, Section 10
foreign principal dissolves the liability of the foreign
principal, only; Q: When can there be a termination or ban on deployment?
(c) Local agency is solidarily liable with the foreign principal; A: Section 5 of R.A. No. 8042, as amended, provides that in pursuit
severance of relations between the local agent and of the national interest or when public welfare so requires, the
foreign principal does not affect the liability of the POEA Governing Board, after consultation with the DFA, may,
foreign principal; at any time, terminate or impose a ban on the deployment of
migrant workers.
(d) Local agency is jointly liable with the foreign principal;
severance of the relations between the local agent and Q: What are the remedies of an employee whose service was
the foreign principal does not affect the liability of terminated without just, valid, or authorized cause as defined
the local recruiter. by their law or contract?
A: The correct answer is (c) Local agency is solidarily liable with the A: Section 10 of R.A. No. 8042, as amended, provides that in
foreign principal; severance of relations between the local agent case of termination of overseas employment without just, valid or
and foreign principal does not affect the liability of the foreign authorized cause as defined by law or contract, or any unauthorized
principal. deductions from the migrant worker's salary, the worker shall be
entitled to the full reimbursement if his placement fee and the
Section 10 of R.A. No. 8042 provides that the liability of the deductions made with interest at twelve percent (12%) per
principal/employer and the recruitment/placement agency for annum, plus his salaries for the unexpired portion of his
any and all claims under this section shall be joint and several.'" employment contract or for three (3) months for every year of the
unexpired term, whichever is less. In case of a final and executory
judgement against a foreign employer/principal, it shall be
1o' R.A. No. 8042, Sec. 10.
I°2 BAR 2012.
103 R.A. No. 8042, Sec. 10, par. 2. 104 APQ Shipmanagement Co., Ltd. v. Casehas, G.R. No. 197303, 04 June 2014.
automatically disqualified, without further proceedings, from worker if the termination of employment was due solely to
participating in the Philippine Overseas Employment Program and his/her fault.107
from recruiting and hiring Filipino workers until and unless it
fully satisfies the judgement award. Q:
The Supreme Court has held that the clause "or for three (3) a. Andrew Manning Agency (AMA) recruited Feliciano for
months for every year of the unexpired term, whichever is less" is employment by lnvictus Shipping, its foreign principal.
unconstitutional for violating the equal protection clause and Meantime, AMA and lnvictus Shipping terminated their
substantive due process.'" agency agreement. Upon his repatriation following his
premature termination, Feliciano claimed from AMA
Q: Who has the primary responsibility for repatriation of worker? and lnvictus Shipping the payment of his salaries and
benefits for the unserved portion of the contract. AMA denied
A: Repatriation of the worker and the transport of his personal liability on the ground that it no longer had an agency
belongings shall be the primary responsibility of the agency, agreement with lnvictus Shipping. Is AMA correct? Explain
which recruited or deployed the worker overseas. The repatriation your answer.
of remains and transport of the personal belongings of a deceased
worker and all costs attendant thereto shall be borne by the b. As a rule, direct hiring of migrant workers is not allowed.
principal and/or the local agency.106 What are the exceptions? Explain your answer.10S
Q: What are the exceptions to the rule that the agency has A:
the primary responsibility for repatriation of workers? a. No, AMA is not correct. Section 10 of R.A. No. 8042, as
A: Section 15 of R.A. No. 8042 provides that in cases where the amended, provides that the liability of the principal/employer
termination of employment is due solely to the fault of the worker, and the recruitment/placement agency for any and all money
the principal/employer or agency shall not in any manner be claims arising out of an employer-employee relationship or by
responsible for the repatriation of the former and/or his belongings. virtue of any law or contract involving Filipino workers for
overseas deployment shall be joint and several.'09
However, the primary responsibility to repatriate entails the obligation
on the part of the principal or agency to advance the repatriation Jurisprudence provides that in a case where the employment
and other attendant costs, including plane fare, deployment cost agency and the foreign principal severed their agency agreement
of the principal, and immigration fines and penalties, to immediately at the time the worker was injured, the agency may still be
repatriate the worker should the need for it arise, without a prior sued for a violation of the employment contract if no notice
determination of the cause of the termination of the worker's of the agency agreement's termination was given to the said
employment. After the worker has returned to the country, the worker. The obligations covenanted in the recruitment agreement
principal or agency may recover the cost of repatriation from the entered into by and between the local agent and its foreign
107
IRR of R.A. No. 8042, as amended, Rule XIII, Sec. 2.
105 Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 170139, 05 August 2014. l" BAR 2017.
1°6 IRR of R.A. No. 8042, as amended, Rule XIII, Sec. 1. 109 R.A. No. 8042, Sec. 10, as amended by R.A. No. 10022, Sec. 7.
principal are not coterminous with the term of such agreement A: No, the employer is not correct. Only non-resident aliens seeking
so that if either or both of the parties decide to end the admission to the Philippines are required to obtain an employment
agreement, the responsibilities of such parties towards the permit from the DOLE.14
contracted employees under the agreement do not at all end,
but the same extends up to and until the expiration of the Q: Peter worked for a Norwegian cargo vessel. He worked
employment contracts of the employees recruited and employed as a deckhand, whose primary duty was to assist in cleaning
pursuant to the said recruitment agreement. Otherwise, this the ship. He signed a five-year contract starting in 2009. In
will render nugatory the very purpose for which the law governing 2011, Peter's employers began treating him differently. He
the employment of workers for foreign jobs abroad was was often maltreated and his salary was not released on time.
enacted. Thus, AMA is still liable to Feliciano.1' These were frequently protested to by Peter. Apparently
exasperated by his frequent protestations, Peter's employer, a
b. Article 18 of the Labor Code provides that the direct-hiring once top official in China, suddenly told him that his services
by members of the diplomatic corps, international organizations would be terminated as soon as the vessel arrived at the next
and such other employers as may be allowed by the DOLE is port, in Indonesia. Peter had enough money to go back home,
exempted from the ban on direct-hiring. Name hires are also and immediately upon arriving, he filed a money claim with
considered direct hires. These are workers who are able to the NLRC against his former employer's local agent. Will
secure an overseas employment opportunity with an employer Peter's case prosper?15
"
without the assistance or participation of any agency.
(a) Yes, he is entitled to full reimbursement of his placement
The reasons for the ban are to promote and develop overseas fee, with interest at 12% per annum, plus salary for
employment opportunities in cooperation with relevant government the unexpired portion of his employment contract or
institutions and the private sector; establish the environment for three (3) months for every year of the unexpired
conducive to the continued operations of legitimate and responsible portion, whichever is higher.
private agencies; and afford protection to Filipino workers
and their families, promote their interests and safeguard their (b) Yes, he is entitled to full reimbursement of his placement
welfare."' fee, with interest at 12% per annum, plus his salary
for the unexpired portion of his employment contract
Q: Phil, a resident alien, sought employment in the Philippines. for three (3) months for every year of the unexpired
The employer, noticing that Phil was a foreigner, demanded portion, whichever is less;
that he first secures an employment permit from the DOLE.
(c) Yes, he is entitled to his salaries for the unexpired portion
Is the employer correct? Explain your answer.13
of his employment contract, plus full reimbursement
of his placement fee with interest at 12% per annum;
(d) Yes, he is entitled to his salaries for three (3) months
for every year of the unexpired portion of his
l i° Catan/MS. Catan Placement Agency v. National Labor Relations Commission,
et.al., G.R. No. 77279, 15 April 1988.
I I 2016 Revised POEA Rules and Regulations, Sec. 6.
12
Rules and Regulations Governing Overseas Employment (as amended), 21 May 1985 "4 Labor Code, Art. 40.
1 13 BAR 2017. "5 BAR 2012.
unemployment contract, plus full reimbursement of competent, able and willing at the time of application to perform
his placement fee with interest at 12% per annum. the services for which the alien is desired. For an enterprise
registered in preferred areas of investments, said employment
A: The correct answer is (a) Yes, he is entitled to full permit may be issued upon recommendation of the government
reimbursement of his placement fee, with interest at 12% per agency charged with the supervision of said registered enterprise.
annum, plus salary for the unexpired portion of his employment
contract or for three (3) months for every year of the unexpired The Supreme Court has also held that an alien cannot file a labor
portion, whichever is higher. complaint without having obtained an employment permit.18
The Supreme Court has ruled that the subject clause "or for three Q: What is the prohibition against the transfer of employment
months for every year of the unexpired term, whichever is less" in regarding aliens?
the 5th paragraph of Section 10 of R.A. No. 8042 is declared
A: Article 41 of the Labor Code provides that after the issuance
unconstitutional. He is thus entitled to his salaries for the unexpired
of an employment permit, the alien shall not transfer to another
portion of his employment contract, plus full reimbursement of his
job or change his employer without prior approval of the Secretary
placement fee with interest at 12% per annum.16
of Labor. Any non-resident alien who shall take up employment
B. Employment of Non-Resident Aliens (Labor Codes in violation of this provision shall be punished in accordance
Articles 40-42; DOLE D.O. No. 186-17, Sections 1-3 and with the provisions of Articles 303 and 304 of the Labor Code.
12-14. as amended by DOLE D.Q. No. 221-21; DOLE In addition, the alien worker shall be subject to deportation after
D.O. No. 205-19, Sections 1-3, 7-8) service of his sentence.
Q: Who is a non-resident alien? Q: Who are exempted from securing an AEP?

A: A non-resident alien means any alien already in the Philippines A: The following are exempted from securing an AEP:
or seeking admission to the Philippines to obtain employment in 1. All members of the diplomatic service and foreign government
any public or private enterprise.' 17
officials accredited by and with reciprocity arrangement
Q: Who should apply for an Alien Employment Permit (AEP)? with the Philippine government;
A: Article 40 of the Labor Code provides that any alien seeking 2. Officers and staff of international organizations of which
admission to the Philippines for employment purposes and any the Philippine government is a member, and their legitimate
domestic or foreign employer who desires to engage an alien for spouses desiring to work in the Philippines;
employment in the Philippines shall obtain an employment permit 3. Owners and representatives of foreign principals whose
from the DOLE. The employment permit may be issued to a non- companies are accredited by the POEA, who come to the
resident alien or to the applicant employer after a determination of Philippines for a limited period and solely for the purpose
the non-availability of a person in the Philippines who is of interviewing Filipino applicants for employment abroad;
1
16 Serrano v. Gallant Maritime Services, Inc., et al., G.R. No. 167614, 24 March 2009.
117 IRR of the Labor Code, Rule I, Sec. 1 (j). 18 McBurnie v. Ganzon, G.R. Nos. 78034, 178117, and 186984-85, 17 October 2013.
4. Foreign national who comes to the Philippines to teach, Q: Explain the requirements for an intra-corporate transferee
present, and/or conduct research studies in universities to be excluded from securing an AEP.
and colleges as visiting, exchange or adjunct professors A: For an intra-corporate transferee to be excluded, he or she:
under formal agreements between the universities or colleges
in the Philippines and foreign universities or colleges; or 1. Must be an executive, manager, or specialist.
between the Philippine government and foreign government:
provided that the exemption is on a reciprocal basis; a. Executive: primarily directs the management of the
organization and exercises wide latitude in decision
5. Permanent resident foreign nationals, probationary or making and receives only general supervision or
temporary resident visa holders; direction from higher level executives, the board of
directors, or stockholders of the business; an executive
6. Refugees and stateless persons recognized by DOJ; and would not directly perform tasks related to the actual
7. All foreign nationals granted exemption by law.19 provision of the service or services of the organization.
b. Manager: a natural person within the organization
Q: Who are excluded from securing an AEP? who primarily directs the organization/department/
A: The following are excluded from securing an AEP: subdivision and exercises supervisory and control functions
over other supervisory, managerial or professional
1. Members of the governing Board with voting rights only staff; does not include first line supervisors unless
and do not intervene in the management of the corporation employees supervised are professionals; does not include
or in the day to day operation of the enterprise; employees who primarily perform tasks necessary
2. President and treasurer, who are part owners of the company; for the provision of the service.
3. Those providing consultancy services who do not have c. Specialist: a natural person within the organization
employers in the Philippines; who possesses knowledge at an advanced level of
expertise essential to the establishment/provision of
4. Intra corporate transferee who is a manager, executive or the service and/or possesses proprietary knowledge
specialist; of the organization's service, research equipment,
techniques or management; may include, but is not
5. Contractual service supplier who is a manager, executive, limited to, members of a licensed profession.
or specialist; and
2. Must have at least one (1) year of continuous employment
6. Representative of the foreign principal/employer assigned prior.'2'
in the Office of Licensed Manning Agency (OLMA) in
accordance with the POEA law, rules, and regulations.'2° Q: What are the requisites for a contractual service supplier
to be excluded?
"9 DOLE Order No. 186-17, Sec. 2.

121 DOLE Order No. 186-17, Sec. 3.
ON LABOR LAW
A: The requisites for exclusion are:

III. Employer-Employee
1. Must be an executive, manager, or specialist;
Relationship
2. Enters the Philippines temporarily to supply a service
pursuant to a contract between his/her employer and a A. Employer-Employee Relationship
service consumer in the Philippines;
1. Tests to Determine Employer-Employee Relationship -
3. Must possess the appropriate educational and professional DOLE D.Q. No. 147-15, Rule I-A, Sec. 3
qualifications; and
Q: What are the tests to determine the existence of an
4. Employed for at least one (1) year prior.'22 employer-employee relationship?
Q: Are foreign nationals who are excluded from securing an A: The following tests may be applied in determining the existence
AEP required to secure any other certification? of an Employer-Employee Relationship:
A: Yes. All foreign nationals excluded from securing AEP shall 1. Four-fold test; and
secure Certificate of Exclusion from the Regional Office. Further,
2. Two-tiered test.'
Regional Offices shall issue the Certificate of Exclusion within
two (2) working days after receipt of complete documentary Q: What is the four-fold test?
requirements and fees.123
A: The four-fold test is a test applied to ascertain the existence
Q: Discuss the validity of the AEP and its renewal. of employer-employee relationship by considering the following
factors:
A: As a general rule, the AEP shall be valid for the position and
the company for which it was issued for one (1) year. However, 1. The selection and engagement of the employee;
if the employment contract/mode of engagement provides otherwise,
it shall be valid for a period not exceeding three (3) years.124 2. The payment of wages;
The renewal of the AEP shall be filed not earlier than sixty (60) 3. The power of dismissal; and
days before its expiration, unless the alien needs to leave the
4. The power to control the employee's conduct, or the so-
country or other similar circumstances that will hinder the filling
called "control test".127
of renewal within this prescribed period.'25
126 Wahing, et al v. Spouses Daguio, G.R. No. 219755, 18 April 2022.

122 DOLE Order No. 186-17, Sec. 3. '27 Id.
125 DOLE Order No. 186-17, Sec. 10. 65
66 COMPENDIOUS BAR REVIEWER EMPLOYER-EMPLOYEE RELATIONSHIP 67
ON LABOR LAW
Q: What is the two-tiered test? only the end achieved, but also the manner and means to be used
in reaching that end.130
A: The two-tiered test involves an inquiry into the following:
Q: Applying the tests to determine the existence of an
1. The putative employer's power to control the employee employer-employee relationship, is a jeepney driver operating
with respect to the means and methods by which the under the boundary system an employee of his jeepney operator
work is to be accomplished [control test]; and or a mere lessee of the jeepney? Explain your answer.131
2. The underlying economic realities of the activity or A: The relationship between jeepney owners/operators on one
relationship. The standard of economic dependence is hand and jeepney drivers on the other under the boundary system
whether the worker is dependent on the alleged employer is that of employer-employee and not of lessor-lessee. In the
for his continued employment in that line of business lease of chattels, the lessor loses complete control over the
[economic reality test].'28 chattel leased although the lessee cannot be reckless in the use
thereof, otherwise he would be responsible for the damages to
Q: When is the two-tiered test applied? the lessor. In the case of jeepney owners/operators and jeepney
A: In certain cases, the control test is not sufficient to give a drivers, the former exercise supervision and control over the
complete picture of the relationship between the parties, owing latter. The management of the business is in the owner's hands.
to the complexity of such relationship. There are instances when, The owner as holder of the certificate of public convenience
aside from the employer's power to control the employee with must see to it that the driver follows the route prescribed by the
respect to the means and methods by which the work is to be franchising authority and the rules promulgated as regards its
accomplished, economic realities of the employment relations operation. Now, the fact that the drivers do not receive fixed
help provide a comprehensive analysis of the true classification wages but get only that in excess of the so-called "boundary"
of the individual, whether as employee, independent contractor, they pay to the owner/operator is not sufficient to withdraw the
corporate officer or some other capacity.'" relationship between them from that of employer and employee.132
Q: What is the control test or the means and methods test? Q: Don Luis, a widower, lived alone in a house with a large
garden. One day, he noticed that the plants in his garden
A: The so-called "control test" is commonly regarded as the needed trimming. He remembered that Lando, a 17-year-old
most crucial and determinative indicator of the presence or absence out-of-school youth, had contacted him in church the other
of an employer-employee relationship. Under the control test, an day looking for work. He contacted Lando who immediately
employer-employee relationship exists where the person for attended to Don Luis's garden and finished the job in three
whom the services are performed reserves the right to control not
13° DOLE D.O. No. 147-15, Rule I-A, Sec.3.

[28 Francisco v. National Labor Relations Commission, G.R. No. 170087, 31
pi BAR 2017.
August 2006.
132 Jardin, et al. v. National Labor Relations Commission, G.R. No. 119268, 23
[29 Francisco v. National Labor Relations Commission, G.R. No. 170087, 31
February 2000.
August 2006.
ON LABOR LAW
days. Is there an employer-employee relationship between Q: Dr. Crisostomo entered into a retainer agreement with
Don Luis and Lando?133 AB Hotel and Resort whereby he would provide medical
services to the guests and employees of AB Hoteland Resort,
A: There is no employer-employee relationship between Lando which, in turn, would provide the clinic premises and medical
and Don Luis since the latter does not exercise control over the supplies. He received a monthly retainer fee of 860,000.00,
134
means and methods by which Lando performs his work. plus a 70% share in the service charges from AB Hotel and
Resort's guests availing themselves of the clinic's services.
Q: Malyn Vartan is a well-known radio talk show host. She
The clinic employed nurses and allied staff, whose salaries,
signed a contract with XYZ Entertainment Network to host a
SSS contributions and other benefits he undertook to pay.
one-hour daily talk show where she interviews various celebrities
AB Hotel and Resort issued directives giving instructions to
on topical subjects that she herself selects. She was paid a
him on the replenishment of emergency kits and forbidding
monthly remuneration of 8300,000.00. The program had
the clinic staff from receiving cash payments from the guests.
been airing for almost two years when sponsors' advertising
revenues dwindled, constraining the network to cancel the In time, the nurses and the clinic staff claimed entitlement to
show upon the expiration of its latest contract with Ms. rights as regular employees of AB Hoteland Resort, but the
Vartan. The talk-show host protested the discontinuance of latter refused on the ground that Dr. Crisostomo, who was
her monthly talent fee, claiming that it was tantamount to their employer, was an independent contractor. Rule, with
her illegal dismissal from the network since she has already reasons.i37
attained the status of a regular employee. As the network's
legal counsel, how would you justify its decision to cancel Ms. A: Dr. Crisostomo is an independent contractor and is the
Vartan's program which in effect terminated her services in employer of the nurses and clinic staff. AB Hoteland Resort does
the process?'" not exercise control over the means and methods by which Dr.
Crisostomo, the nurses and the clinic staff do their work. The
A: I would argue that no employer-employee relationship exists instruction on the replenishment of emergency kits and the
between the network and Ms. Vartan. In the case of Jay Sonza v. prohibition on the clinic staff from receiving cash payments from
ABS-CBN,136 it was held that a radio broadcast specialist who guests are merely guidelines towards the achievement of the
works under minimal supervision is an independent contractor. mutually desired result and not control over the means by which
Ms. Vartan is not an employee of the network as the network has the work is to be performed.18
no control over the means and methods by which she performs
her work. Q: Ador is a student working on his master's degree in
horticulture. To make ends meet, he takes on jobs to come up
with flower arrangements for friends. His neighbor, Nico, is
about to get married to Lucia and needs a floral arranger.
Ador offers his services and Nico agrees. They shake hands
133 BAR 2014.

134 BAR 2014. 137 BAR 2017.
133 BAR 2005. 138Escasinas and Singco v. Shangri-La's Mactan Island Resort and Pepito, G.R.
136 G.R. No. 138051, 10 June 2004. No. 178827, 04 March 2009.
ON LABOR LAW
on it, agreeing that Nico will pay Ador P20,000.00 for his Third, control is exercised as the boys were told to be present
services but that Ador will take care of everything. As Ador from the opening of the store up to closing time and were
sets about to decorate the venue, Nico changes all of Ador's required to follow the company rules on cleanliness and decorum.
plans and ends up designing the arrangements himself with
Fourth, the power to dismiss is shown by the fact that for a valid
Ador simply executing Nico's instructions. Is there an
139 complaint by a customer or for violation of any company rule,
employer-employee relationship between Nico and Ador?
the boys can be refused admission to the store.'"
A: Yes. Nico was exercising control over the means and methods
by which Ador performs his work as Ador was simply executing 2. Kinds of Employment - Labor Code, Arts. 295-296
Nico's instructions.'"
a. Regular
Q: Matibay Shoe and Repair Store, as added service to its
Q: Who are regular employees?
customers, devoted a portion of its store to a shoe shine
stand. The shoe shine boys were tested for their skill before A: Regular employees are those who have been engaged to
being allowed to work and given ID cards. They were told to perform activities which are usually necessary or desirable in the
be present from the opening of the store up to closing time usual business or trade of the employer, the provisions of written
and were required to follow the company rules on cleanliness agreement to the contrary notwithstanding and regardless of the
and decorum. They bought their own shoe shine boxes, oral agreement of the parties.'"
polish, and rags. The boys were paid by their customers for
their services but the payment is coursed through the store's Q: When is an employee deemed regular?
cashier, who pays them before closing time. They were not
A: An employee is deemed regular under the following circumstances:
supervised in their work by any managerial employee of the
store but for a valid complaint by a customer or for violation 1. By nature of work — when the employee has been engaged to
of any company rule, they can be refused admission to the perform activities which are usually necessary or desirable
store. Were the boys employees of the store? Explain."' in the usual business or trade of the employer.144
A: Yes. Employment relationships are determined on the basis 2. By length of service — when the employee has rendered
of the following factors: (a) the selection and engagement of the at least one year of service, whether such service is
employee; (b) the payment of wages; (c) the employer's power to continuous or broken, with respect to the activity in
control the employee's conduct; and (d) the power of dismissal. which he is employed and his employment shall continue
First the boys were selected by Matibay as they were tested while such exists.'"
before being allowed to work.
Second, it is Matibay who pay the boys before closing time.
142 BAR 2016.

139 BAR 2015. 143 Labor Code, Art. 295.
14° BAR 2015. 144 Labor Code, Art. 295.
ON LABOR LAW
Q: Freddie is a painter tasked with preparing, sanding and Q: Regala was hired by MHC sometime in February 2000 as
painting various construction works in Helenar Construction. one of its waiters assigned to the Food and Beverage
Specifically, Freddie continuously performed tasks as a painter Department. He was later assigned as cook helper at MHC's
since April 2012 in Helenar's various project locations, Chocolate Room/Cookies Kitchen during the period from
namely: (a) Binondo from April 2012 to May 2012; (b) October 18, 2004 to June 26, 2006. In the course of his
Buendia from May 2012 to July 2012; and (c) Little Baguio employment as waiter/cook helper, Regala worked for six (6)
Terraces from July 2012 until the termination of his service days every week. Regala alleged that he was not recognized
in November 2014. Notably, on 24 October 2014, Helenar as a regular rank-and-file employee despite having rendered
required Freddie to sign a labor contract for a period of services to MHC for several years. On its part, MHC denied
three (3) months with a clause stating that his employment outright that Regala is its regular employee, and claimed that
would be renewable "depending on the evaluation of the site he is a mere freelance or "extra waiter" engaged by MHC on
engineer and foreman." Freddie refused to sign said contract a short term basis. MHC then presented a sample fixed-term
alleging that it would violate his security of tenure. Is service contract, and copies of Regala's Department Outlet
Freddie a regular or project employee? Services Contracts for Extra Waiters/Cocktail Attendants
(Service Agreements) covering the periods of his supposed
A: Freddie is a regular employee. Under Article 280 of the temporary engagement with MHC, or from March 1, 2010 to
Labor Code, an employment shall be deemed to be regular where March 3, 2010. Is Regala a regular employee of MHC?
the employee has been engaged to perform activities which are
usually necessary or desirable in the usual business or trade of A: Yes. The employment status of a person is defined and
the employer. In this case, Helenar is principally engaged in the prescribed by law and not by what the parties say it should be. In
construction business. The nature of Freddie's job required him this regard, Article 295 of the Labor Code "provides for two
to perform activities, which were deemed necessary in the usual types of regular employees, namely: (a) those who are engaged
business of respondents. In addition, Freddie's continuous to perform activities which are usually necessary or desirable in
rehiring to different construction projects of Helenar from April the usual business or trade of the employer (first category); and
2012 until his termination in November 2014 attests to the (b) those who have rendered at least one year of service, whether
desirability of his services. continuous or broken, with respect to the activity in which they
are employed (second category)." While MHC insists that
Freddie cannot be considered as a project employee because Regala was engaged under a fixed-term employment agreement,
there is no showing that he was informed of his status as a the circumstances and evidence on record, and provision of law,
project employee at the time of hiring and that the period of his however, dictate that Regala is its regular employee.
employment was agreed upon. It must be emphasized that the
principal test in determining project-based employment is First, Regala is performing activities which are usually necessary or
whether one was assigned to carry out a specific project or desirable in the business or trade of MHC. This connection can
undertaking, the duration and scope of which was specified at, be determined by considering the nature of the work performed
146 by Regala and its relation to the nature of the particular business
and made known to him, at the time of his engagement.
or trade of MHC in its entirety. Being part of the hotel and food
industry, MHC, as a service-oriented business enterprise, depends
largely on its manpower complement to carry out or perform
146 Laurente v. Helenar Construction, G.R. No. 243812, 07 July 2021.
74 COMPENDIOUS BAR REVIEWER • EMPLOYER-EMPLOYEE RELATIONSHIP 75
ON LABOR LAW
services relating to food and beverage operations, event planning employer's power to control the employee with respect to the
and hospitality. As such, it is essential, if at all necessary, that it means and methods by which the work is to be accomplished.
retains in its employ waiting staff, such as Regala, specifically
The application of the four-fold test shows that an employer-
tasked to attend to its guests at its various dining establishments.
employee relationship did exist between Parayday and Reboso and
Second, the fact alone that Regala was allowed to work for MHC Shogun Ships. Shogun did not categorically deny the following:
on several occasions for several years under various Service that in May 2006, Parayday and Reboso were engaged by Shogun
Agreements is indicative of the regularity and necessity of his to work on repairs on one of its barges, M/T Daniela Natividad;
functions to its business. Moreover, it bears to emphasize that that Parayday and Reboso worked for Shogun Ships until they
MHC has admitted, albeit implicitly, that it renewed Regala's were verbally dismissed on May 1, 2008; that Parayday and
Service Agreements on various occasions is also sufficient evidence Reboso were duly compensated for any work done; and that
of the indispensability of his duties as waiter to MHC's business.147 Paraygay and Reboso were verbally dismissed on May 1, 2008.
Q: Parayday and Reboso alleged that they were employed This lends credence to Parayday and Reboso's assertions that
sometime in October 1996 and March 1997, respectively, as Shogun Ships: (1) engaged them as employees; (2) paid their
fitters/welders by Oceanview, a corporation engaged in the salaries for services rendered; and (3) had ultimate discretion to
business of ship building. Their duties and responsibilities dismiss their services after the needed repairs on the barges were
included assembling, welding, fitting, and installing materials carried out. As regards Shogun Ship's power of control, the
or components and/or repairing and securing parts and control test calls merely for the existence of the right to control
assemblies of Oceanview barges. Sometime in 2003, Oceanview the manner of doing the work and not the actual exercise of the right.
changed its corporate name to "Shogun Ships Inc." It Considering that Parayday and Reboso were working on the
maintained the same line of business, and retained in its barges alongside regular employees and that they were taking
employ Oceanview employees. Shogun denied that Parayday orders from its engineers as to how the barges of Shogun Ships
and Reboso were engaged by Shogun Ships as regular should be repaired, it may be logically inferred that Shogun Ships
employees. It pointed out that Shogun Ships, a corporation had the right to control the work of Parayday and Reboso.148
engaged in domestic cargo shipping, was only incorporated
in November 2002, and that Oceanview was separate and b. Casual
distinct from it. Are Parayday and Reboso regular employees
of Shogun Ships? Q: Who are casual employees?
A: Yes. In determining the existence of an employer-employee A: Casual employees are those who are not regular, project, or
relationship, the Supreme Court has time and again applied the seasonal employees.'49
"four-fold test" which has the following elements, to wit: (a) the
selection and engagement of the employee; (b) the payment of
wages; (c) the power to discipline and dismiss; and (d) the
1" Parayday v. Shogun Shipping Co, G.R. No. 204555, 06 July 2020.
147 Regala v. Manila Hotel Corporation, G.R. No. 204684, 05 October 2020. 149 Labor Code, Art. 295.
ON LABOR LAW
Q: When does a casual employee become a regular employee? Q: May probationary employees be terminated?
A: Any casual employee who has rendered at least one (1) year A: Probationary employee enjoys security of tenure, although it
service whether such service is continuous or broken, shall be is not on the same plane as that of a permanent employee. Other
considered a regular employee with respect to the activity in than being terminated for a just or authorized cause, a probationary
which he is employed and his employment shall continue while employee may also be dismissed due to his or her failure to
such activity exists.' qualify in accordance with the standards of the employer made
known to him or her at the time of his or her engagement.
c. Probationary
Hence, the services of a probationary employee may be terminated
Q: Who are probationary employees? for any of the following: (1) a just cause; (2) an authorized
cause; and (3) when he or she fails to qualify as a regular
A: Probationary employees are those who upon engagement are employee in accordance with the reasonable standards prescribed
made to undergo a trial period during which the employer by the employer.'"
determines his fitness to qualify for regular employment based on
reasonable standards made known at the time of engagement.15' Q: Does the twin notice requirement in dismissal apply to
probationary employees?
Q: How long is the probationary period?
A: The twin notice requirement applies only when the probationary
A: Probationary employment shall not exceed six (6) months employee is dismissed for just/authorized cause. When a
from the date the employee started working, unless it is covered probationary employee is dismissed for failure qualify, the twin
152
by an apprenticeship agreement stipulating a longer period. notice requirement does not apply. Due process of law in
termination for failure to qualify consists of making the reasonable
Q: What is the exception to the six (6) month probationary
standards expected of the employee during his probationary
period?
period known to him at the time of his probationary employment.
A: In case of academic school personnel, three (3) consecutive By the very nature of probationary employment, the employee
years in elementary and secondary levels, six (6) consecutive knows from the very start that he will be under close observation
regular semesters of satisfactory service for those in the tertiary and his performance of his assigned duties and functions would
level, and nine (9) consecutive trimesters of satisfactory service be under continuous scrutiny by his superiors. It is in apprising
for tertiary level offering a trimester.153 him of the standards against which his performance shall be
continuously assessed where due process regarding the second
ground lies, and not in notice and hearing.'"

151 Implementing Rules of the Labor Code of the Philippines, Rule I, Book VI, 154
Section 6 (d). Moral v. Momentum Properties Management Corporation, G.R. No. 226240, 06
152 Labor Code, Art. 296. March 2019.
155
153 1992 Manual of Regulations for Private Schools, Sec. 92. Enchanted Kingdom, Inc. v. Verzo, G.R. No. 209559, 09 December 2015.
ON LABOR LAW
Q: When is a probationary employee deemed as a regular Employer); or b) terminate her for violating her probationary
employee? contract. Explain.159
A: An employee who is allowed to work after a probationary A: Amaya may be terminated for violating her probationary
period shall be considered a regular employee.'" contract. Probationary employees may be terminated for a just
cause. Part of her probationary contract is strict compliance with
Q: When may the six (6) month probationary period be SFH's Code of Discipline. Her act of discrediting Dr. Ligaya
extended? clearly violates the SFH's Code of Discipline, as such there is
sufficient ground for her dismissal.
A: Generally, the probationary period of employment is limited
to six (6) months. The exceptions to this general rule is; 1) when d. Project
the parties to an employment contract may agree otherwise, such
as when the same is established by company policy or when the Q: Who are project employees?
same is required by the nature of work to be performed by the
A: Project employees or those whose employment has been
employee;157 and 2) when the extension is an act of liberality on
fixed for a specific project or undertaking, the completion or
the part of the employer and for the benefit of the employee.'"
termination of which has been determined at the time of the
Q: Amaya was employed as a staff nurse by St. Francis engagement of the employee.'"
Hospital (SFH) on July 8, 2014 on a probationary status for
Q: When does a project employee become a regular employee?
six (6) months. Her probationary contract required, among
others, strict compliance with SFH's Code of Discipline. A: A project employee may acquire the status of a regular
employee when there is a continuous rehiring of the project
On October 16, 2014, Dr. Ligaya, filed a Complaint with the
employee for the same task or nature of tasks even after the
SFH Board of Trustees against Amaya for uttering
cessation of a project and the tasks performed by the alleged
slanderous remarks against the former. Attached to the
project employee are vital necessary and indispensable to the
complaint was a letter of Minda, mother of a patient, who
usual business or trade of the employer.161
confirmed the following remarks against Dr. Ligaya:
"Bakit si Dr. Ligaya pa ang napili mong pedia 'eh ang tanda- Q: Mario Brothers, plumbing works contractor, entered
tanda na n'un? E makakalimutin na yun xxx Alam mo ba, into an agreement with Axis Business Corporation (Axis) for
kahit wala naming diperensya yung baby, ipinapa-isolate the plumbing works of its building under construction.
nya?" The SFH President asks you, being the hospital's Mario Brothers engaged the services of Tristan, Arthur, and
counsel, which of these two (2) options is the legal and proper Jojo as plumber, pipe fitter, and threader, respectively.
way of terminating Amaya: a) terminate her for a just cause These workers have worked for Mario Brothers in numerous
under Article 288 of the Labor Code (Termination by construction projects in the past but because of their long
159 BAR 2016.

156 Labor Code, Art. 296. 160 Labor Code, Art. 295.
157 161 Maraguinot v. National Labor Relations Commission, G.R. No. 120969, 22
Mariwasa Manufacturing, Inc. v. Leogardo, Jr., G.R. No. 74246, 26 January 1989.
158 Buiser v. Leogrado, Jr., G.R. No. L-63316, 31 July 1984.
January 1998.
ON LABOR LAW
relationship, they were never asked to sign contracts for each completion of the extension project. Omar claims that because
project. No reports to government agencies were made of these repeated contracts, he is now a regular employee of
regarding their work in the company. Design Consultants, Inc. Is he correct? Explain briefly.164
During the implementation of the works contract, Axis A: Yes. Omar is a regular employee of Design Consultants, Inc.
suffered financial difficulties and was not able to pay Mario There is no showing that Omar's employment has been fixed for
Brothers its past billings. As a result, the three (3) employees a specific project or undertaking, the completion or termination
were not paid their salaries for two (2) months and their 13th of which has been determined at the time of the engagement of
month pay. Because Axis cannot pay, Mario Brothers the employee. Neither was Omar hired for a fixed period
cancelled the contract and laid off Tristan, Arthur, and Jojo. determined at the time of his engagement. Thus, Omar is a
The 3 employees sued Mario Brothers and Axis for illegal regular employee.
dismissal, unpaid wages, and benefits.
Q: What is the effect of continuous re-hiring?
Mario Brothers claims the three workers are project
employees. It explains that the agreement is, if the workers' A: An employment ceases to be coterminous with specific
contract is cancelled due to the fault of the client, the period projects when the employee is continuously rehired due to the
of employment is automatically terminated. Is the contractor demands of the employer's business and re-engaged for many
correct? Explain.'62 more projects without interruption.'"
A: No, the contractor is not correct. First, the three workers are e. Seasonal
not project employees since their employment has not been fixed
for a specific project or undertaking, the completion or termination of Q: Who are seasonal employees?
which has been determined at the time of their engagement. A: Seasonal employees or those who work or perform services
Second, the employer's failure to report the termination of which are seasonal in nature, and the employment is for the
employees upon project completion to the DOLE Regional duration of the season.'"
Office having jurisdiction over the workplace within the period
prescribed militates against the employer's claim of project Q: When does a seasonal employee become a regular employee?
employment.163
A: A seasonal employee can become a regular employee when
Q: Design Consultants, Inc. was engaged by the PNCC to an employee is engaged in work or services seasonal in nature
supervise the construction of the South Expressway Extension. and the employment is for more than one season.167
Design Consultants, Inc., hired Omar as a driver for two (2)
years. After his two-year contract expired, he was extended
another contract for nine (9) months. These contracts were
entered into during the various stages and before the
1fi4 BAR 2002.
165 Malicdem v. ,Ilarulas Industrial Corporation, G.R. No. 204406, 26 February 2014.
166Labor Code, Art. 295.
162 BAR 2016. 167 Hacienda Fatima v. National Federation of Sugarcane Workers, G.R. No.
163 GA/L4 Network, Inc v. Pabriga, G.R. No. 176419, 17 November 27 2013. 149440, 28 January 2003.
ON LABOR LAW
f. Fixed-Term pressure being brought to bear upon the employee and absent
any other circumstances vitiating his consent.17'
Q: What are the requisites for a valid fixed term employment?
While the former requires a project or specific undertaking, the
A: Two criteria validate a contract of employment with a fixed decisive determinant in fixed-term employment is not the
period: activity that the employee is called upon to perform but the day
certain agreed upon by the parties for the commencement and
(1) the fixed period of employment was knowingly and
termination of the employment relationship.' 72
voluntarily agreed upon by the parties without any force,
duress or improper pressure being brought to bear on Q: San Sebastian appointed Arcilla as a full-time probationary
the employee and without any circumstances vitiating faculty member for the second semester of School Year 2014
consent; or to 2015. The employment contract stated that Arcilla's
(2) it satisfactorily appears that the employer and employee appointment commenced on November 21, 2014 and would
dealt with each other on more or less equal terms with end on March 31, 2015, unless extended by San Sebastian. It
no moral dominance whatever being exercised by the also stated, among others, that its renewal or extension
former on the latter.168 was discretionary upon San Sebastian, and that Arcilla's
appointment could be revoked before the expiration period if
Q: Must an employer report to the DOLE for the termination of she would be found to have violated the employment contract
fixed term and/or seasonal employee? or committed acts inimical to San Sebastian's interests,
students, or moral values.
A: No. Contracts of employment for a fixed period terminate on
their own at the end of such period.169 Hence, the employer need San Sebastian reappointed Arcilla for the first semester of
not report the termination to DOLE. School Year 2015 to 2016. Her contract for the period of
June 1, 2015 until October 31, 2015 had the same terms and
Q: Distinguish project and fixed-term employees. conditions as the first contract.
A: Project employees are workers whose employment has been San Sebastian did not reappoint Arcilla for the following
fixed for a specific project or undertaking the completion or semester. Arcilla was told that her she could not be given a
termination of which has been determined at the time of their teaching load, and her probationary contract would not be
engagement.17° renewed purportedly due to a low turnout of enrollees.
Arcilla filed a Complaint for illegal dismissal. San Sebastian
On the other hand, fixed-term employees are workers whose claimed that Arcilla's employment was probationary and
employment is for a fixed period knowingly and voluntarily
had not attained permanent status. It added that it had full
agreed upon by the parties without any force, duress, or improper discretion not to renew Arcilla's contract after the fixed term
had expired. Was Arcilla illegally dismissed?
168 Labayog v. M.Y. San Biscuits, G.R, No. 148102, 11 July 2006.
169 Fuji Television Network, Inc. v. Arlene S. Espiritu, G.R. No. 204944-45, 03
December 2014. 171
170 Toyo Seat Philippines Corporation v. Velasco et al, G.R. No. 240774, 03 March 172
Fuji Television Network, Inc. v. Espiritu, G.R. No. 204944-45, 03 December 2014.
2021. GIVA Network v. Pabriga, G.R. No. 176419, 27 November 2013.
ON LABOR LAW
A: Yes. Arcilla's employment was both probationary and for a Q: When is the employer-employee relationship deemed
fixed term. When a full-time employee's probationary status suspended?
overlaps with a fixed-term contract not specifically used for the
A: The employer-employee relationship shall be deemed suspended
fixed term it offers—as when the fixed term is merely for a
in case of suspension of operation of the business or undertaking
convenient arrangement to coincide with the school's academic
of the employer for a period not exceeding six (6) months, unless
year—the probationary nature of the employment prevails. The
the suspension is for the purpose of defeating the rights of the
employer cannot simply invoke the expiration of the fixed term.
employees under the Labor Code, and in case of mandatory
The employment may only be terminated for a just or authorized
fulfillment by the employee of a military or civic duty.16
cause or due to the employee's failure to meet the reasonable
standards made known to the employee at the time of the Q: What is the rule on the payment of wages of the employee
engagement. In this case, there is no showing that Arcilla was while the employer-employee relationship is suspended?
dismissed due to a just or authorized cause, or that Arcilla failed
to qualify as a regular employee per San Sebastian's standards. A: The payment of wages of the employee as well as the grant
Thus, San Sebastian illegally dismissed Arcilla on the sole of other benefits and privileges while he is on suspended
ground of expiration of her fixed term.13 employment or on a military or civic duty shall be subject to
existing laws and decrees and to the applicable individual or
3. Related Concepts collective bargaining agreement and voluntary employer practice
or policy.177
a. Floating Status - Labor Code, Art. 301; DOLE D.O. No.
215-20 Q: May the employer extend the six (6) month suspension
period of employment?
Q: When is an employment not deemed terminated?
A: In case of declaration of war, pandemic and similar national
A: An employment is not terminated by a bona fide suspension emergencies, the employer and the employees, through the
of the operation of a business or undertaking for a period not union, if any, or with the assistance of the DOLE, shall meet in
exceeding six (6) months, or the fulfillment by the employee of a good faith for the purpose of extending the suspension of
military or civic duty.14 In the period of suspension, the employment for a period not exceeding six (6) months.18
employer is constrained to put employees on a floating status.
Q: What are the rules for a valid extension of the six (6)
In all such cases, the employer shall reinstate the employee to his month suspension period?
former position without loss of seniority rights if he indicates his
desire to resume his work not later than one (1) month from the A:
resumption of operations of his employer or from his relief from
the military or civic duty.15 1) The employer shall report to the DOLE, through the
regional offices, the extension of suspension of employment
173
Ar•cilla v. San Sebastian College-Recoletos, G.R. No. 235863, 10 October 2022. "6 DOLE D.O. No. 215-2020,
174 Labor Code, Art. 301. 17 DOLE D.O. No. 215-2020.

175 Labor Code, Art. 301. 178 DOLE D.O. No. 215-2020.
ON LABOR LAW
ten (10) days prior to the effectivity thereof subject After passing the interview and online examination, ANZ,
to inspection; offered Sagun the position of Customer Service Officer,
which the latter accepted on June 8, 2011.
2) The employees shall not lose employment if they find
alternative employment during the extended suspension In the letter of confirmation of the offer which constituted
of employment except in cases of written, unequivocal Sagun's employment agreement with ANZ, the terms and
and voluntary resignation; conditions of his employment required, among others, a
satisfactory result of his pre-employment screening.
3) Should retrenchment be necessary before or after the
expiration of the extension of suspension of employment, On July 11, 2011, ANZ informed Sagun that the job offer
the affected employee shall be entitled to separation pay had been withdrawn on the ground that the company found
as prescribed by the Labor Code, company policies or material inconsistencies in his declared information and
collective bargaining agreement, whichever is higher. documents provided after conducting a background check
The retrenched employees shall have priority in the re- with his previous employer.
hiring if they indicate their desire to resume their work
Sagun asserted that his employment contract had already
not later than one (1) month from the resumption of been perfected upon his acceptance of the offer on June 8,
operations;
2011, and as such, was already deemed an employee of ANZ
4) By mutual agreement of the employer and the employees, who can only be dismissed for cause.
through the union, if any, or with the assistance of the ANZ countered that they have no employer-employee
DOLE, employees may be recalled to work or retrenched
relationship with petitioner. They contended that their offer
subject to the requirement of notice and separation pay,
was conditional and the effectivity of Sagun's employment
anytime before the expiration of the extension of contract was subject to a term or period. They claimed that
suspension of employment.
Sagun made material misrepresentations in his job application
5) The extension of suspension of employment shall not and interview that prompted them to withdraw the offer.
affect the right of the employees to separation pay. the They added that Sagun likewise failed to report for work on
first six (6) months of suspension of employment shall or before July 11, 2011; hence, his employment never took
be included in the computation of the employees' effect and no employer-employee relationship was created.
separation pay.179 Was employer-employee relationship created between Sagun
and ANZ?
b. Employment Subject to a Suspensive Condition
A: No. There is no employer-employee relationship between Sagun
Q: Sagun was employed at HSBC when he applied online for and ANZ. An employment contract, like any other contract, is
the position of Payments and Cash Processing Lead at ANZ. perfected at the moment the parties come to agree upon its terms
and conditions, and thereafter, concur in the essential elements
thereof. In this relation, the contracting parties may establish
such stipulations, clauses, terms, and conditions as they may
179 DOLE D.O. No. 215-2020.

ON LABOR LAW
deem convenient, provided they are not contrary to law, morals, before July 11, 2011, which was also a suspensive condition
good customs, public order or public policy. mandated under the contract.180
There was already a perfected contract of employment when Sagun B. Legitimate Subcontracting vs. Labor Only Contracting -
signed ANZ's employment offer and agreed to the terms and Labor Code, Arts. 106-109; DOLE D.O. No. 174-17;
conditions that were embodied therein. Nonetheless, the offer of DOLE D.C. No.01-17; E.O. No. 51, Series of 2018
employment extended to Sagun contained several conditions
before he may be deemed an employee of ANZ. Among those Q: What are the elements of legitimate contracting or
conditions for employment was the "satisfactory completion of subcontracting?
any checks (e.g. background, bankruptcy, sanctions and reference
A: The contracting or subcontracting shall only be allowed if
checks) that may be required by ANZ." Accordingly, Sagun's
the following elements concur:
employment with ANZ depended on the outcome of his
background check, which partakes of the nature of a suspensive 1. The contractor or subcontractor is engaged in a distinct
condition, and hence, renders the obligation of the would-be and independent business and undertakes to perform the
employer, i. e., ANZ in this case, conditional. job or work on its own responsibility according to its
own method;
Article 1181 of the Civil Code provides that in conditional obligations,
the acquisition of rights, as well as the extinguishment or loss of 2. The contractor or subcontractor has substantial capital to
those already acquired, shall depend upon the happening of the carry out the job farmed out by the principal on his
event which constitutes the condition. account, manner and method, investment in the form of
tools, equipment, machinery and supervision;
Here, the subject employment contract required a satisfactory
completion of petitioner's background check before he may be 3. In performing the work farmed out, the contractor or
deemed an employee of ANZ. Considering, however, that Sagun subcontractor is free from control and/or discretion of the
failed to explain the discrepancies in his declared information, principal in all matters connected with the performance
that rendered his background check unsatisfactory, ANZ's of the work except as to the result thereto; and
obligations as a would-be employer were suspended and thus,
had yet to acquire any obligatory force. To reiterate, in a contract 4. The service agreement ensures compliance with all the
with a suspensive condition, if the condition does not happen, the Rights and benefits for all the employees of the contractor
obligation does not come into effect. Thus, until and unless or subcontractor under the labor laws.'81
Sagun complied with the satisfactory background check, there
exists no obligation on the part of ANZ to recognize and fully Q: When is contracting or subcontracting prohibited?
accord him the rights under the employment contract. In fact, A: Contracting or subcontracting, when undertaken to circumvent
records also show that Sagun failed to report for work on or the worker's right to security of tenure, self-organization and
180
Sagun v. ANZ Global Services and Operations, Inc., G.R. No. 220399, 22
August 2016.
181 DOLE Order No. 174-17, Section 3(I).
ON LABOR LAW
collective bargaining, and peaceful concerted activities, is Q: What is the effect of a finding of labor only contracting?
strictly prohibited.182
A: In such cases, the person or intermediary shall be considered
Q: When is there labor only contracting? merely as an agent of the employer who shall be responsible to
the workers in the same manner and extent as if the latter were
A: There is labor-only contracting where the person supplying directly employed by him.187 Moreover, the principal shall be
workers to an employer does not have substantial capital or deemed as the direct employer of the contractor's or subcontractor's
investment in the form of tools, equipment, machineries, work employees.'"
premises, among others, and the workers recruited and placed by
such person are performing activities which are directly related Q: Is registration with the DOLE as contractor conclusive
to the principal business of such employer.183 There is likewise evidence of legitimate subcontracting?
labor only contracting when the contractor or subcontractor does A: No. Registration with the DOLE as contractor is not conclusive
not exercise the right to control over the performance of the
evidence that it is a legitimate job contractor; the registration
work of the employee.184
only prevents the legal presumption that it is a labor only
Q: What is substantial capital for the purpose of compliance contractor from arising. In distinguishing between permissible
in legitimate contracting? job contracting and prohibited labor only contracting, the totality
of the facts and the surrounding circumstances of the case are to
A: Substantial capital refers to paid-up capital stock/shares of at be considered.'"
least five million pesos (P5,000,000.00) in case of corporations,
partnerships and cooperatives; or net worth of at least five million Q: What is the concept of trilateral relationship?
pesos (P5,000,000.00) in the case of single proprietorship.'"
A: Trilateral relationship refers to the relationship in a contracting
Q: Does the law require both substantial capital and investment or subcontracting arrangement where there is a contract for a
in the form of cash, tools and equipment before a contractor specific job, work or service between the principal and the
may be considered a legitimate contractor? contractor, and a contract of employment between the contractor
and its workers.'90
A: No. The law does not require both substantial capital and
investment in the form of tools, equipment, machineries, etc. Q: Who are the parties involved in a trilateral relationship?
This is clear from the use of the conjunction "or". If the intention
A: The parties involved in a trilateral relationship are:
was to require the contractor to prove that he has both capital and
the requisite investment, then the conjunction "and" should have 1. Principal — who decided to farm out a job, work, or
been used.'" service to a contractor;
182 E.O. No. 51, Series of 2018, Sec. 2.

184 DOLE Order No. 174-17, Sec. 5. 188 DOLE Order No. 174-17, Sec. 7
185 DOLE Order No. 174-17, Sec. 3(I). 189 Marvin Daguinod v. Southgate Foods Inc., G.R. No. 227795, 20 February 2019.
86 190 DOLE Order No. 18-A, Sec, 3(m).
Mago v. Sun Power Manufacturing Limited, G.R. No. 210961, 24 January 2018.
ON LABOR LAW
2. Contractor — who has the capacity to independently A similar situation obtains where there is "labor only" contracting.
undertake the performance of the job; and The "labor-only" contractor- i.e, "the person or intermediary" - is
considered "merely as an agent of the employer." The employer
3. Contractual workers — engaged by the contractor to is made by the statute responsible to the employees of the "labor
accomplish the job, work, or service.19' only" contractor as if such employees had been directly
employed by the employer. Thus, where "labor-only" contracting
Q: What is extent of the liability of the principal of
exists in a given case, the statute itself implies or establishes an
legitimate contracting?
employer-employee relationship between the employer (the
A: The principal shall be solidarily liable with the legitimate owner of the project) and the employees of the "labor only"
contractor in the event of any violation of any provision of the contractor, this time for a comprehensive purpose: "employer for
Labor Code, including the failure to pay wages.192 purposes of the Labor Code, to prevent any violation or
circumvention of any provision of the Labor Code." The law in
Q: Distinguish the liabilities of an employer who engages the effect holds both the employer and the "labor only" contractor
services of a bona fide "independent contractor" from one responsible to the latter's employees for the more effective
who engages a "labor only" contractor?'" safeguarding of the employees' rights under the Labor Code.194
A: Under the general rule set out in the first and second Q: Do the above-mentioned rules on contracting apply to all
paragraphs of Article 106 of the Labor Code, an employer who businesses?
enters into a contract with a contractor for the performance of
work for the employer, does not thereby create an employer- A: No. The above-mentioned rules on contracting applies only
employees relationship between himself and the employees of to trilateral relationship which characterized contracting or
the contractor. Thus, the employees of the contractor remain the subcontracting. It does not contemplate to cover information
contractor's employees and his alone. Nonetheless when a technology-enabled services involving an entire or specific
contractor fails to pay the wages of his employees in accordance business process such as:
with the Labor Code, the employer who contracted out the job to
1) Business Process Outsourcing;
the contractor becomes jointly and severally liable with his
contractor to the employees of the latter "to the extent of the 2) Knowledge Process Outsourcing;
work performed under the contract" as such employer were the
employer of the contractor's employees. The law itself, in other 3) Legal Process Outsourcing;
words, establishes an employer-employee relationship between
4) IT Infrastructure Outsourcing;
the employer and the job contractor's employees for a limited
purpose, i.e., in order to ensure that the latter get paid the wages 5) Application Development;
due to them.
6) Hardware and/or Software Support;
7) Medical Transcription;
191 DOLE Order No. 18-A, Sec. 3(m).
192
Daguinod v. Southgate Foods, Inc., G.R. No. 227795, 20 February 2019.
193
BAR 2012, 1994. 194 Vigilla v. Philippine College of Criminology, G.R. No. 200094, 10 June 2013.
ON LABOR LAW
8) Animation Services; Jobcrest and Sunpower entered into a Service Contract

Agreement, in which Jobcrest undertook to provide business
9) Back office Operations/Support.195 process services for Sunpower, a corporation principally
The same rules do not apply to contracting or subcontracting engaged in the business of manufacturing automotive computer
arrangement in the construction industry under the licensing and other electronic parts.
coverage of the Philippine Contractors Accreditation Board.' Jobcrest then trained Leo and Leilanie, for purposes of their
Similarly, except for registration requirements, the rules do not engagement in Sunpower. Jobcrest assigned Leo and Leilanie
apply to contracting or subcontracting arrangement in the private to Sunpower. Leo was tasked as a Production Operator, while
security industry.197 Leilanie was assigned as a Production Operator. Jobcrest's
On-site Supervisor, Allan Dimayuga (Allan), supervised the
The rules do not contemplate to cover contractual relationships petitioners during their assignment with Sunpower.
such as in a contract of sale or purchase, contract of lease,
contract of carriage, contract of growing/growership agreement, While Jobcrest has substantial capital, the tools and equipment
toll manufacturing, contract of management, operation and for the performance of the work were for the account
maintenance and such other contracts governed by the Civil of Sunpower.
Code and other special laws:" Sunpower conducted an operational alignment, which affected
The rules also do not cover the contracting out of job or work to some of the services supplied by Jobcrest. Sunpower decided
a professional, or individual with unique skills and talents who to terminate the Coinstacking/Material Handling segment
himself or herself performs the job or work of the principal.i99 and the Visual Inspection segment. Leo and Leilannie was
dismissed from work.
Q: Are contractors required to register before the DOLE?
Is Jobcrest a legitimate contractor, thereby making it the
A: Yes. It shall be mandatory for all persons or entities acting as employer of Leo and Leilanie?
contractors to register with the DOLE where it principally
A: Yes. Jobcrest is a legitimate independent contractor making
operates. Failure to register shall give rise to the presumption
it the employer of Leo and Leilanie.
that the contractor is engaged in labor only contracting.20°
First, while fact of registration with DOLE does not necessarily
Q: Jobcrest is a corporation engaged in the business of create a presumption that Jobcrest is a legitimate and independent
contracting management consultancy and services. Jobcrest contractor, the DOLE Certificate of Registration issued in favor
was licensed by the Department of Labor and Employment of Jobcrest is presumed to have been issued in the regular
(DOLE) through Certificate of Registration. performance of official duty. Hence, in the absence of sufficient
proof to the contrary, there is a disputable presumption that
195 DOLE D.C. No. 01-17, Sec II. Jobcrest is a legitimate contractor.
196 DOLE D.C. No. 01-17, Sec III.
197 DOLE D.C. No. 01-17, Sec IV.
Second, while it is Sunpower who provides the tools and
198 DOLE D.C. No. 01-17, Sec V. equipment, it is enough that Jobcrest has substantial capital. In
199 DOLE D.C. No. 01-17, Sec II.
ON LABOR LAW
other words, the law does not require both substantial capital and However, the labor contractor's Certificate of Registration with
investment in the form of tools, equipment, machineries, etc. the Department of Labor and Employment is not conclusive
evidence of its status as a legitimate labor contracting entity. At
Third, and more importantly, Jobcrest controls the manner by most, it causes a disputable presumption that the entity is a
which the Leo and Leilanie accomplished their work.20' legitimate labor contractor which can be refuted by other
evidence. In order to determine whether an entity is a labor-only
Q: Is outsourcing prohibited by law?
contractor or a legitimate labor contractor, what must be considered
A: The outsourcing of services is not prohibited in all instances. is the totality of the facts and surrounding circumstances of
In fact, Article 106. In fact, Article 106 of the Labor Code of the the case."'
Philippines provides the legal basis for legitimate labor contracting.
Legitimate labor contracting or subcontracting refers to an Q: What is the period of validity of a certificate of registration?
arrangement whereby a principal agrees to put out or farm out A: The certificate of registration shall be effective for two (2)
with a contractor or subcontractor the performance or completion years, unless cancelled after due process. The contractor shall be
of a specific job, work or service within a definite or deemed registered only on the date of the issuance of its
predetermined period, regardless of whether such job, work or Certificate of registration."'
service is to be performed or completed within or outside the
premises of the principal. Meanwhile, labor-only contracting is Q: What are the required contracts under DO 174-17?
prohibited.'"
A: The following are the required contracts under DO 174-17:
Q: What are the presumptions accompanying certificate of
1) Employment contract between the contractor/subcontractor
registration?
and its employees; and
A: The DOLE Certificate of Registration is presumed to have
2) Service Agreement between principal and the contractor.'"
been issued in the regular performance of official duty. The
certificate of registration recognizes the contractor as an Q: Respondent PPI Holdings, Inc. (PPI) hired petitioner
independent contractor, presumes the validity of the registration Conjusta as a messenger. Eventually, Conjusta's employment
of the independent contractor, until the period indicated therein. was transferred to a manpower agency, Consolidated
In the absence of evidence to the contrary, flowing from the Buildings Maintenance, Inc. (CBMI). Despite such transfer,
presumption of regularity in the performance of official functions, he continued to be PPI's messenger. PPI then terminated his
the existence of registration in favor of a contractor is a strong services. Conjusta filed an illegal dismissal case with money
badge of legitimacy in favor of the contractor."' claims against PPI and CBMI arguing that he was PPI's
regular employee for having worked with it for 14 years. PPI
denied having an employer-employee relationship and
204
201
Mago v. Sun Power Manufacturing Limited, G.R. No. 210961, 24 January 2018. Manila Cordage Company Employees Labor Organization v. Manila Cordage
Daguinod v. Southgate Foods, Inc., G.R. No. 227795, 20 February 2019. Company, G.R. No. 242495-96, 16 September 2020.
202
205
203
Consolidated Building Maintenance, Inc. v. Asprec, Jr., G.R. No. 217301, 06 DOLE Order No. 174-17, Sec. 20.
206
June 2018. DOLE Order No. 174-17, Sec. 11.
ON LABOR LAW
argued that he was merely assigned to it by CBMI, a actually controls the manner of the employee's work, such
legitimate job contractor that rendered allied services to PPI contractor is considered as engaged in labor-only contracting.207
until the termination of the contract of services agreement.
The Labor Arbiter ruled that PPI is the direct employer of Q: Star Crafts is a lantern maker based in Pampanga. It
Conjusta, the latter performing tasks which are necessary or supplies Christmas lanterns to stores in Luzon, Metro
desirable to PPI's main business. In addition, the Labor Manila, and parts of Visayas, with the months of August to
Arbiter held that CBMI is a legitimate contractor as shown November being the busiest months. Its factory employs a
by the following evidence: (1) CMBI SEC registration; (2) workforce of 2,000 workers who make different lanterns
CMBI company profile; (3) Contract of Services with PPI for daily for the whole year. Because of increased demand, Star
several years; (4) CBMI Certificates of Registration with the Crafts entered into a contractual arrangement with People
DOLE; and (5) financial statements. The NLRC ruled that Plus, a service contractor, to supply the former with 100
CMBI is a labor-only contractor as there is no showing that workers for only 4 months, August to November, at a rate
it carries on an independent business or undertakes the different from what they pay their regular employees. The
performance of its service contracts according to its own contract with People Plus stipulates that all equipment and
manner and method, free form the control and supervision of raw materials will be supplied by Star Crafts with the
PPI. Is CMBI a legitimate or a labor-only contractor? express condition that the workers cannot take any of the
designs home and must complete their tasks within the
A: CMBI is a labor-only contractor. The only evidence to premises of Star Crafts. Is there an employer-employee
support PPI and CBMI's claim of legitimate job contracting are relationship between Star Crafts and the 100 workers from
the certificates of registration, financial statements, and service People Plus? Explain.'"
agreements. It has been consistently ruled that a certificate of
registration as an independent contractor is not conclusive A: There is an employer-employee relationship between Star
evidence of such status. Such registration merely prevents the Crafts and the 100 workers of People Plus. People Plus is a
legal presumption of being a labor-only contractor from arising. labor-only-contractor because it has no substantial capital to
The financial statements presented to prove that CBMI has carry out the job farmed out by Star Crafts. All equipment and
substantial capital likewise do not suffice to classify it as an raw material are being supplied by Star Crafts. Being a labor-
independent contractor. It is settled that, despite proof of only contractor, Star Crafts becomes the employer of the
substantial capital, a contractor is still considered engaged in supplied workers by People Plus.'"
labor-only contracting whenever it is established that the
Q: Empire Brands (Empire) contracted the services of Style
principal actually controls the manner of the employee's work.
Corporation (Style) for the marketing and promotion of its
Conjusta is PPI's regular employee since Conjusta started
clothing fine. Under the contract, Style provided Empire with
working directly with PPI, and continuously did so for 14 years
Trade Merchandising Representatives (TMRs) whose services
without any intervention from CBMI. Indeed, the element of
control is a strong indicator of the nature of a contractor's
activity and its relationship with the employee. Whenever it is
established, as in this case, that the principal, not the contractor,
207 Conjusta v PPI Holdings, Inc., G.R. No. 252720, 22 August 2022.
208 BAR 2015.
209 BAR 2015.
ON LABOR LAW
began on September 15, 2004 and ended on June 6, 2007, still controlled the performance of the work of the TMRs through
when Empire terminated the promotions contract with Style. Empire's Marketing Director. The stipulation of a five (5) month
contract did not divest the TMRs of their regular employment
Empire then entered into an agreement for manpower with Empire.
supply with Wave Human Resources (Wave). Wave owns its
condo office, owns equipment for the use by the TMRs, and (b) Were the TMRs illegally dismissed by Wave?
has assets amounting to P1,000,000.00. Wave provided the
A: No, the TMRs are employees of Empire. As such, Empire
supervisors who supervised the TMRs, who, in turn, received
has the power to dismiss the TMRs, not Wave. The dismissal of
orders from the Marketing Director of Empire. In their
the TMRs by Wave has no legal effect.21 1
agreement, the parties stipulated that Wave shall be liable
for the wages and salaries of its employees or workers,
including benefits, and protection due them, as well as
remittance to the proper government entities of all withholding
taxes, Social Security Service, and Philhealth premiums, in
accordance with relevant laws.
As the TMRs wanted to continue working at Empire, they

submitted job applications as TMRs with Wave. Consequently,
Wave hired them for a term of five (5) months, or from June
7, 2007 to November 6, 2007, specifically to promote
Empire's products.
When the TMRs' 5-month contracts with Wave were about

to expire, they sought renewal thereof, but were refused.
Their contracts with Wave were no longer renewed as Empire
hired another agency. This prompted them to file complaints
for illegal dismissal, regularization, non-payment of service
incentive leave and 13th month pay against Empire and Wave.
(a) Are the TMRs employees of Empire?'"
A: The TMRs are employees of Empire.
For the initial contract with Style, it did not have substantial
capital relating to the job performed. The subsequent contract
with Wave, likewise did not negate the employer-employee
relationship of the TMRs with Empire considering that Empire
21 1
210 BAR 2016. BAR2016
1
LABOR STANDARDS 103
(1) The primary duty consists of the performance of

IV. Labor Standards work directly related to management policies of their
employer;
A. Conditions of Employment
(2) Customarily and regularly exercise discretion and
1. Covered Employees; Exceptions - Labor Code, Article independent judgment;
82; Omnibus Rules Implementing the Labor Code, Book
III, Rule I, Sections 1-2 (3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists
Q: Who are excluded from the coverage of Title I, Book III of the management of the establishment in which he
of the Labor Code (Conditions of Employment)? is employed or subdivision thereof; or (ii) execute
under general supervision work along specialized or
A: The following employees are excluded from the coverage of technical lines requiring special training, experience,
the Labor Code provisions on Conditions of Employment:
or knowledge; or (iii) execute, under general
(a) Government employees whether employed by the supervision, special assignments and tasks; and
National Government or any of its political subdivision, (4) Who do not devote more than 20 percent of their
including those employed in government-owned and/or hours worked in a work week to activities which are
controlled corporations; not directly and closely related to the performance of
(b) Managerial employees, if they meet all of the following the work described in paragraphs (1), (2) and (3)
conditions: above.
(1) Their primary duty consists of the management of (d) Domestic servants and persons in the personal service of
the establishment in which they are employed or of a another if they perform such services in the employer's
department or sub-division thereof; home which are usually necessary or desirable for the
maintenance and enjoyment thereof, or minister to the
(2) They customarily and regularly direct the work of personal comfort, convenience, or safety of the employer
two or more employees therein; and as well as the members of his employer's household.
(3) They have the authority to hire or fire employees of (e) Workers who are paid by results, including those who
lower rank; or their suggestions and recommendations are paid on piece-work, "takay," "pakiao" or task basis,
as to hiring and firing and as to the promotion or any and other non-time work if their output rates are in
other change of status of other employees, are given accordance with the standards prescribed under Section
particular weight. 8, Rule VII, Book Three of the Omnibus Rules
Implementing the Labor Code, or where such rates have
(c) Officers or members of a managerial staff if they
been fixed by the Secretary of Labor and Employment in
perform the following duties and responsibilities:
accordance with the aforesaid section.
(f) Non-agricultural field personnel if they regularly perform
102 their duties away from the principal or branch office or
LABOR STANDARDS 105
ON LABOR LAW
place of business of the employer and whose actual phone on so that he could be contacted whenever his services
hours of work in the field cannot be determined with as driver becomes necessary.
2 12
reasonable certainty.
Would the hours that Lito and Bong are on call be considered
2. Hours of Work compensable working hours?2"
a. Normal Hours of Work - Labor Code, Articles 83-84; A: Yes, the hours that Lito and Bong are on call can be
Omnibus Rules Implementing the Labor Code, Book III, considered compensable working hours.
Rule I, Sections 3-4 Under the Omnibus Rules Implementing the Labor Code, waiting
Q: What is the total normal hours of work of an employee time spent by an employee shall be considered as working time
per day? if waiting is an integral part of his work or the employee is
required or engaged by the employer to wait. Furthermore, an
A: The total normal hours of work of any employee shall not employee who is required to remain on call in the employer's
exceed eight (8) hours a day.213 premises or so close thereto that he cannot use the time
effectively and gainfully for his own purpose shall be considered
Q: What are compensable hours worked? as working while on call. An employee who is not required to
leave word at his home or with company officials where he may
A: The following shall be considered as compensable hours worked:
be reached is not working while on call.
(a) All time during which an employee is required to be on
Here, Lito is required or engaged by the manager to stay and
duty or to be at the employer's premises or to be at a
wait at the office after office hours so he could be called to drive
prescribed workplace; and
the trucks whenever necessary. Hence, the time that Lito spent
(b) All time during which an employee is suffered or waiting on call is considered compensable working hours.
permitted to work.2'4
As regards Bong, while he is permitted to leave after office
Q: Lito Kuiangkuiang and Bong Urongsulong are employed hours, he is nonetheless required to remain on call should his
as truck drivers of Line Movers. Inc. Usually Lito is required services be needed. Thus, the time that Bong spent waiting on
by the personnel manager to just stay at the head office after call is considered compensable working hours if he cannot use
office hours because he could be called to drive the trucks. the time effectively and gainfully for his own purpose.
While at the head office, Lito merely waits in the manager's Otherwise, if he can use his time effectively and gainfully to his
reception room. On the other hand, Bong is allowed to go own purpose, the time he spent at home while even on call may
home after office hours but is required to keep his cellular not be compensable.216
212 Labor Code, Art. 82; Omnibus Rules Implementing the Labor Code, Book III,
Rule I, Sec. 2.
214 Labor Code, Art. 84; Omnibus Rules Implementing the Labor Code, Book III, 215 BAR 1997.
Rule I, Sec. 3. 216 Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 5.
106 COMPENDIOUS BAR REVIEWER LABOR STANDARDS 107
ON LABOR LAW
Q: Percival was a mechanic of Pacific Airlines. He enjoyed a Q: Under what instances are employers allowed not to
meal break of one hour. However, during meal breaks, he provide a one hour time off for regular meals?
was required to be on stand-by for emergency work. During
emergencies, he was made to forego his meals or to hurry up A: An employer may provide a minimum of twenty (20) minute
eating. He demanded payment of overtime for work done during meal period, in lieu of the one hour time off for regular meals
his meal periods. Is Percival correct? Explain your answer."' provided that such shorter meal period is credited as compensable
hours worked, under the following instances:
A: Percival is correct. Under Article 85 of the Labor Code and
Book Ill, Rule I, Section 7 of the Omnibus Rules Implementing 1. Where the work is non-manual work in nature or does
the Labor Code, it shall be the duty of every employer to give his not involve strenuous physical exertion;
employees not less than sixty (60) minutes time-off for their 2. Where the establishment regularly operates not less than
regular meals. Where during the meal break, the workers are sixteen (16) hours a day;
required to stand by "for emergency work," such period is
considered overtime.218 3. In case of actual or impending emergencies or there is
urgent work to be performed on machineries, equipment
Q: TRUE OR FALSE: Daily-paid employees are those who or installations to avoid serious loss which the employer
are paid only on the days they actually worked and worked would otherwise suffer; and
on regular holidays.
4. Where the work is necessary to prevent serious loss of
A: False. Daily-paid employees are those who are paid only on the perishable goods."'
days they actually worked and unworked on regular holidays.'
Q: The meal time (lunch break) for the dining crew in Glorious
b. Meal Periods - Labor Code, Art. 85; Omnibus Rules Restaurant is either from 10:00 a.m. to 11:00 a.m. or from
Implementing the Labor Code, Book III, Rule I, Sec. 7 1:30 p.m. to 2:30 p.m., with pay. But the management wants
to change the mealtime to 11:00 a.m. to 12:00 nn or 12:30
Q: Are meal times compensable hours? p.m. to 1:30 p.m., without pay. Will the change be legal?222
A: The one hour or more time off for regular meals are not A: Yes, in the absence of an agreement to the contrary. The
compensable. However, rest periods or coffee breaks running from one-hour meal period an employer is required to provide under
five (5) to twenty (20) minutes are considered as compensable the law is not compensable. However, in the exercise of its
working time."' management prerogative, the management determines the work
hours of the employees in the absence of an agreement to
the contrary.
217 BAR 2017.

218 Pan American World Airways System (Phil.) v. Pan American Employees
Association, G.R. No. L-16275, 23 February 1961.
219 Handbook on Workers' Statutory Benefits 2023 Edition of the Bureau of
Working Conditions of the Department of Labor and Employment.
229 Labor Code, Art. 85; Omnibus Rules Implementing the Labor Code, Book III, 221 Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 7.
Rule I, Sec. 7. 222 BAR 2011.
ON LABOR LAW
Q: Company X entered into a CBA with SUPER Union, a Here, Company X's scheming policy, wherein it authorized a
legitimate labor organization, wherein one of the provisions one-hour meal break that is not compensable, is clearly a
of the CBA is that working hours shall be eight hours a day circumvention of the unequivocal provisions of the CBA providing
including meal break of 30 minutes and two 15-minute coffee for compensable meal and rest periods."'
breaks. This means that said meal and coffee breaks are
compensable. The same also provides that any employee who c. Night Shift - Labor Code, Art. 86; Omnibus Rules
works in excess of eight hours in any regular working day Implementing the Labor Code, Book III, Rule H, Secs. 1-6
shall be entitled to an additional 25% of the daily hour basic Q: What is night shift differential?
rate as overtime premium.
A: Night shift differential is an additional premium pay of ten
Company X from time to time order its employees to take percent (10%) for every hour of work done between 10 p.m. to 6
one hour straight break instead of the 30-15-15 as agreed a.m. the following day."'
upon in the CBA. To the surprise of the employees upon
seeing their payroll, only three hours were compensated as Q: Who are excluded from the coverage of night shift
overtime pay in their 12-hour duty. differential?
Company X reasoned that employees were only compensated A: The following are excluded from the coverage of night shift
three hours as overtime pay in their 12-hour duty because differential:
only the 30-15-15 is compensable and that the one hour
straight meal break is not, as provided under Section 83 in 1. Those of the government and any of its political subdivisions,
relation to Section 85 of the Labor Code. Is Company X including government-owned and/or controlled corporations;
correct?
2. Those of retail and service establishments regularly
A: No, Company X is not correct. Section 83 in relation to employing not more than five (5) workers;
Section 85 of the Labor Code states that the compensable eight
3. Domestic helpers and persons in the personal service of
hours of work in a day does not include the sixty (60) minutes
another;
time-off for the regular meals of an employee, ergo, this
statutory one-hour meal break, not being part of the normal 4. Managerial employees as defined in Book Three of the
working hours of an employee, is non-compensable. In short, the Labor Code; and
normal eight-hour work period does not include the statutory and
non-compensable one-hour meal break. However, the hours of 5. Field personnel and other employees whose time and
work of the employees may be modified or regulated in a duly performance are unsupervised by the employer including
signed CBA between the employer and its employees as they those who are engaged on task or contract basis, purely
may deem convenient provided these are not contrary to law,
morals, good customs, public order or public policy. Thus, where
the CBA is clear and unambiguous, it becomes the law between 223 Bonpack Corp. v. Nagkakaisang Manggagawa sa Bonpack-Solidarity of Unions
in the Philippines for Empowerment and Reforms (NMB-SUPER), G.R. No. 230041,
the parties and compliance therewith is mandated by the express 5 December 2022.
policy of the law. 224 Labor Code, Art. 86; Omnibus Rules Implementing the Labor Code, Book III,
Rule II, Sec. 2.
ON LABOR LAW
commission basis, or those who are paid a fixed amount (c) while overtime pay is for work done beyond eight
for performing work irrespective of the time consumed hours, night differential is added to the overtime pay
in the performance thereof."' if the overtime work is done between 6:00 p.m. and
12 midnight.
Q: As a tireman in a gasoline station, open twenty-four (24)
hours a day with only five (5) employees, Goma worked from (d) while overtime pay is 25% additional to the employee's
10:00 P.M. until 7:00 A.M. of the following day. He claims he hourly regular wage, night differential is 10% of such
is entitled to night shift differential. Is he correct? Explain hourly wage without overtime pay.
briefly:" A: (a) while overtime pay is given for overtime work done during
A: No, Goma is not entitled to night shift differential. day or night, night differential is given only for work done between
10:00 p.m. and 6:00 a.m.229
Under the Omnibus Rules Implementing the Labor Code, employees
of retail and service establishments regularly employing not more d. Overtime Work - Labor Code, Arts. 87-90; Omnibus
than five (5) workers are not covered by the provisions on night Rules Implementing the Labor Code, Book III, Rule I,
shift differential. Secs. 8-10
Here, although Goma worked from 10 p.m. to 7 a.m. the Q: What is overtime work and how is it paid?'
following day, which is normally covered by the provisions on
night shift differential, the gasoline station where he is employed A: Overtime work is work performed beyond the normal eight
at has only five employees, which exempts the employer from (8) hours of work a day. An additional compensation equivalent
paying night shift differential."' to the regular wage plus at least twenty-five percent (25%)
thereof is paid to the employee. Work performed beyond 8 hours
Q: Night differential is differentiated from overtime pay on a holiday or rest day shall be paid an additional compensation
in that:228 equivalent to the rate of the first 8 hours on a holiday or rest day
plus at least thirty percent (30%) thereof.23'
(a) while overtime pay is given for overtime work done
during day or night, night differential is given only Q: Can an employer compel an employee to render overtime
for work done between 10:00 p.m. and 6:00 a.m. work?
(b) while overtime pay is paid to an employee whether on A: As a general rule, an employee may not be compelled to
day shift or night shift, night shift differential is only render overtime work against his will since it will constitute
for employees regularly assigned to night work. involuntary servitude.
229
Labor Code, Art. 86.
225 Omnibus Rules Implementing the Labor Code, Book III, Rule II, Sec. 1. 230 BAR 2009.
226 BAR 2002. 231 Labor Code, Art. 87. Omnibus Rules Implementing the Labor Code, Book III,
227 Omnibus Rules Implementing the Labor Code, Book III, Rule II, Section 1. Rule I, Sec. 8-9.
228 BAR 2011.
1 12 COMPENDIOUS BAR REVIEWER LABOR STANDARDS 113
ON LABOR LAW
However, in any of the following cases, an employer may require contrary is against the law.234 An exception would be the adoption
an employee render overtime work, provided that the said of a compressed work week on voluntary basis, subject to the
employee is paid the additional compensation required by law: guidelines of D.O. No. 02-2004.
1. When the country is at war or when any other national or Q: In a scenario like typhoon Ondoy, who may be required
local emergency has been declared by Congress or the by the employer to work overtime when necessary to prevent
Chief Executive; loss of life or property?'"
2. When overtime work is necessary to prevent loss of life A: [d] Any employee"'
or property, or in case of imminent danger to public safety
due to actual or impending emergency in the locality Q: Socorro is a clerk-typist in the Hospicio de San Jose, a
caused by serious accident, fire, floods, typhoons, charitable institution dependent for its existence on contributions
earthquake, epidemic or other disaster or calamities; and donations from well-wishers. She renders work eleven
(11) hours a day but has not been given overtime pay since
3. When there is urgent work to be performed on machines, her place of work is a charitable institution. Is Socorro
installations, or equipment, in order to avoid serious loss entitled to overtime pay? Explain briefly.'"
or damage to the employer or some other causes of
similar nature; A: Yes, Socorro is entitled to overtime pay for work rendered
beyond eight (8) hours as an employee of Hospicio de San Jose,
4. When the work is necessary to prevent loss or damage to a charitable institution.
perishable goods;
Under the Omnibus Rules Implementing the Labor Code, employees
5. When the completion or continuation of work started of non-profit institutions and organizations are entitled to overtime
before the 8th hour is necessary to prevent serious pay, unless they are specifically excluded from coverage.238
obstruction or prejudice to the business or operations of
the employer; or Q: Can overtime work be used to offset undertimes?
6. When overtime work is necessary to avail of favorable A: No. Undertime work on any particular day shall not be offset
weather or environmental conditions where performance by overtime work on any other day."'
or quality of work is dependent thereon.'
Q: TRUE or FALSE. A waiver of the right to claim overtime

pay is contrary to law.'"
A: True. As a general rule, overtime compensation cannot be
waived, whether expressly or impliedly; and stipulation to the 234
Pampanga Sugar Development Co., Inc v. Court of Industrial Relations and
Sugar Workers Association, G.R. No. L-39387, 29 June 1982.
235 BAR 2011.
236
Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 10.
232 Labor Code, Art. 89; Omnibus Rules Implementing the Labor Code, Book III, 237 BAR 2002.
Rule I, Sec. 10. 238 Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 9.
233
BAR 2009. 239 Labor Code, Art. 88.
ON LABOR LAW
Q: Danilo Flores applied for the position of driver in the his eight (8) working hours which circumstance renders him
motorpool of Gold Company, a multinational corporation. on call whenever his service is needed. Therefore, he insists
Danilo was informed that he would frequently be working that he be paid 16 hours a day by way of overtime. Is the
overtime as he would have to drive for the company's executives contention of seaman Pedro Sisid tenable? Why?
even beyond the ordinary eight-hour work day. He was A: No. The contention of seaman Sisid is not tenable.
provided with a contract of employment wherein he would
be paid a monthly rate equivalent to 35 times his daily wage, The fact that he is on board the vessel 24 hours a day does not
regular sick and vacation leaves, 5 day-leave with pay every mean that beyond his eight working hours, he could be also
month and time off with pay when the company's executives considered as working because he is on call, and thus, is entitled
using the cars do not need Danilo's service for more than to overtime pay. Because he is a seaman, this circumstance means
eight hours a day, in lieu of overtime. he is on board his vessel while at sea. But he is not thereby on
call as to be entitled to overtime pay because when it is not his
Are the above provisions of the contract of employment in
working time, he can, if he chooses to do so, use said non-
conformity with, or violative of, the law?24°
working time effectively and gainfully for his own purpose.241
A: The provision where Danilo shall have time off with pay
Q: A manufacturing company operates on a six (6) day
when the company's executives using the cars do not need
Danilo's service for more than eight hours a day, in lieu of workweek. It employs 200 workers whose regular workday is
8 hours. On May 1, 1990, the company and Union "M", the
overtime is violative of labor laws which states that undertime
employees' bargaining agent, agreed that the workday be 7
work shall not be offset by overtime work on any other day.
hours from Monday to Wednesday and 9 hours from
Permission given to the employer to go on leave on some other
Thursday to Saturday. The agreement was ratified by all the
day of the week shall not exempt the employer from paying the
additional compensation required by the Labor Code. employees. In 1991, Union "M" lost its majority status and
Union "P" was certified as bargaining representative. Union
Moreover, parties cannot stipulate that the basic pay already "P" filed a claim against the Company for unpaid overtime
covers overtime pay. As such, the monthly rate equivalent to 35 pay of the 200 employees from May 1. 1990 when they
times the daily wage cannot be used as an excuse for non- started working 9 hours per day, 3 days a week. Invoking the
payment of overtime pay. 1990 agreement, the Company moved to dismiss the claim of
Union "P". Decide with reasons.
Q: Pedro Sisid is a seaman who was employed in 1990 by
Kuhol Ocean Transport. In May 1993, he was discharged A: The claim of Union "P" is valid. The Labor Code is very
and correspondingly paid vacation pay, terminal pay and clear; undertime work on any particular day shall not be offset
overtime pay for the number of hours he actually rendered by overtime work on any other day.242
service in excess of his eight (8) working hours a day. Pedro The right arising from the above provision, meaning, entitlement
Sisid, however, is dissatisfied with his overtime pay contending to overtime pay for one hour for working 9 hours per day, 3 days
that he is on board the vessel 24 hours a day, or even beyond
241 BAR 1997.

ON LABOR LAW
a week243 cannot be considered as waived by a CBA even if the Overtime Pay = (daily rate / 8 hours) x (overtime hours
CBA is ratified by the employees concerned. The waiver in this worked) + 25%
instance is against the law, morals, and public policy. The law
must prevail over the CBA. = (P640/8) x 1 + 25%
= P80 + (P80 x .25)
Q: Krys is a daily-paid factory worker who is required to
render eight hours of work per day. Two days ago, he = P80 + P20
rendered only seven hours of work as he arrived late in the
morning. Yesterday, Krys worked for nine hours as he was = P100.00
required to assist in the processing of perishable goods. His
Q: Ping Gabo is the Chief Engineer of the National Publishing
supervisor, Rudy, told Krys that he would not get any
Corp. with a monthly salary of P3,000.00. He works over
overtime pay as his work for nine hours yesterday was meant
eight (8) hours daily from Monday to Saturday. In May,
to offset the one-hour shortfall in his work the day before.
June, and July 1991, he rendered, each month, ten (10) hours
a. Is Rudy correct? Explain briefly. beyond his regular work schedule. Is he entitled to overtime
pay and holiday pay? Why?
b. Assuming Krys is entitled to overtime pay, how much
will he get as overtime pay if his daily wage is A: The entitlement of Gabo to overtime pay and holiday pay is
P640.00? Explain briefly.244 dependent on whether he is a managerial employee or not. If he
is a managerial employee, he is not entitled to overtime pay and
A: holiday pay. The Labor Code provides that the provisions that
grant overtime pay and holiday pay shall not apply, among
a. No. It is not proper to offset the Krys' overtime against his
one-hour shortfall in his work the day before. Pursuant to others, to managerial employees.
Article 87 of the Labor Code, when an employee renders A managerial employee is defined by the Labor Code as referring to
overtime work, he is entitled to payment. Article 88 further those whose primary duty consists of the management of the
states that undertime work on any particular day shall not be establishment in which they are employed or of a department or
offset by overtime work on any other day. subdivision thereof, and to other officers or members of the
managerial staff.
b. Krys is entitled to an additional compensation equivalent to
25% of his regular wage."' Hence, he would get P100.00 as Gabo, as Chief Engineer, appears to be a managerial employee.
overtime pay for the one hour overtime worked computed as On the other hand, his monthly pay is rather low for a
follows: managerial employee. Despite his title, his duty may not consist
of a management of department or of a subdivision thereof.246

244 BAR 2022. 246Labor Code, Art. 82; Omnibus Rules Implementing the Labor Code, Book III,
245
Labor Code, Art. 87. Rule I, Sec. 2.
ON LABOR LAW
Q: After working from 10 a.m. to 5 p.m. on a Thursday as (c) Employee is paid for overtime work an additional
one of 5,000 employees in a beer factory, A hurried home to compensation equivalent to his regular wage plus at
catch the early evening news and have dinner with his family. least 20% thereof;
At around 10 p.m. of the same day, the plant manager called
and ordered A to fill in for C who missed the second shift. (d) None of the above.
a. May A validly refuse the plant manager's directive? A: (d) None of the above.
Explain. Employee is paid for overtime work an additional compensation
b. Assuming that A was made to work from 11 p.m. on equivalent to his regular wage plus at least 25% thereof."'
Thursday until 2 a.m. on Friday, may the company argue
Q: The provisions of the Labor Code on the Working
that, since he was two hours late in coming to work on
Conditions and Rest Periods of employees are inapplicable to
Thursday morning, he should only be paid for work
the following employees, except:252
rendered from 1 a.m. to 2 a.m.? Explain.247
(a) A supervisor in a fast food chain;
A:
(b) A family driver;
a. Yes. A may validly refuse the directive to fill in for C. A
may not be compelled to render overtime work since the (c) A laborer without any fixed salary, but receiving a
overtime work required is not considered an emergency.248 compensation depending upon the result of his work;
b. No. Undertime work on any particular day is not offset by (d) A contractual employee.
overtime work on any other day.249
A: (d) A contractual employee.'
Q: Work may be performed beyond eight (8) hours a day
provided that:2" Q: May the employer and employee stipulate that the
latter's regular or basic salary already includes the overtime
(a) Employee is paid for overtime work an additional pay, such that when the employee actually works overtime he
compensation equivalent to his regular wage plus at cannot claim overtime pay?'"
least 30% thereof;
(a) Yes, provided there is a clear written agreement
(b) Employee is paid for overtime work an additional knowingly and freely entered into by the employee;
compensation equivalent to his regular wage plus at
least 30% thereof; (b) Yes, provided the mathematical result shows that
agreed legal wage rate and the overtime pay. Computed
247 BAR 2010.

248 Labor Code, Art. 89; Omnibus Rules Implementing the Labor Code, Book III, 251 Labor Code, Art. 87.
Rule I, Sec. 10. 252 BAR 2012.
249 Labor Code, Art. 88 253 Labor Code, Art. 82.
250 BAR 2012. 254 BAR 2012.
ON LABOR LAW
separately, are equal to or higher than the separate everyday for the whole year, but only those employees whose
amounts legally due; services were needed after their regular working hours and only
upon the instructions of management. The overtime pay was not
(c) No, the employer and employee cannot stipulate that given to each employee consistently, deliberately and unconditionally,
the latter's regular or basic salary already includes but as a compensation for additional services rendered.
the overtime pay;
In other words, the employee must have been permitted to work
(d) A and B beyond the normal eight (8) hours of work in order to be eligible
for overtime pay.
A: (c) No, the employer and employee cannot stipulate that the
latter's regular or basic salary already includes the overtime pay."' Lastly, the employer has the freedom and prerogative, according
to its discretion and best judgment, to regulate and control the
Q: LKG Garments Inc., makes baby clothes for export. As time when employees should report for work and perform their
part of its measures to meet its orders, LKG requires its respective functions.25'
employees to work beyond eight (8) hours everyday, from
Monday to Saturday. It pays its employees an additional Q: Republic Drug Co. has 1,000 employees, including 50
35% of their regular hourly wage for work rendered in excess managerial personnel, 90 supervisors and 150 sales representatives.
of eight (8) hours per day. Because of additional orders, LKG The regular workday in the Company is from 8:00 a.m. to
now requires two (2) shifts of workers with both shifts 5:00 p.m. The sales representatives register their presence
working beyond eight (8) hours but only up to a maximum of with the timekeeper at 8:00 A.M. every day before they go to
four (4) hours. Carding is an employee who used to render their respective sales territories. They are paid a basic salary
up to six (6) hours of overtime work before the change in plus commission. Sixty of the sales representatives are
schedule. He complains that the change adversely affected members of the Republic Salesmen Union which sent to the
him because now he can only earn up to a maximum of four Company a set of bargaining proposals, including a demand
(4) hours worth of overtime pay. Does Carding have a cause for payment of overtime pay of the sales representatives for
of action against the company?' working beyond 5:00 P.M., everyday. The Company refused
to consider the bargaining proposals and rejected the
A: No, Carding does not have a cause of action against the company.
demand for overtime pay for the reason that the sales
First, no specific amount of overtime work is guaranteed to an representatives are not entitled thereto. The Union filed an
employee under the Labor Code."' unfair labor practice case against the Company for refusal to
bargain, and after complying with the legal requirements
Second, in Manila Jockey Employees' Union v. Manila Jockey declared a strike.
Club,258 the Supreme Court held that the employer was not
obliged to allow all its employees to render overtime work Was the Company legally justified in rejecting the Union's
demand for overtime pay? Reason.

256 BAR 2015.
259Philippine Airlines, Inc. v. National Labor Relations Commission, G. R. No.
258 G.R. No. 167760, 07 March 2007. 115785, 04 August 2000.
ON LABOR LAW
A: The Company was legally justified. (4) Section 1508 contains a catch-all provision allowing the
payment of additional service fees whenever applicable.261
Under the Labor Code, "field personnel" are among those classes
of workers who are not entitled to overtime pay, and the phrase e. Compressed Work Week, Flexible Work Arrangement,
"field personnel" includes sales representatives who like other Alternative Work Arrangements, Telecommuting Program
field personnel, are non-agricultural employee who regularly - DOLE D.A. No. 02-04; DOLE D.A. No. 02-09; DOLE
perform their duties away from the principal place of business or D.A. No. 04-10; R.A. No. 11165, Secs. 3-5
branch office of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.260 Q: What is a compressed work week?
Q: In 2019, Airlines Philippines (ALP), a private airline, A: Compressed work week refers to one where the normal
questions the act of the Department of Finance (DOF) and workweek is reduced to less than six (6) days but the total
Bureau of Customs (BOC) as they charge ALP the overtime number of work hours of 48 hours per week shall remain. The
pay of all airport personnel. DOF and BOC assert that Sec. normal workday is increased to more than eight hours but not to
3506 of the Tariff and Customs Code of the Philippines exceed twelve hours, without corresponding overtime premium.
(TCCP) legally allow them to do so. The concept can be adjusted accordingly depending on the
normal workweek of the company pursuant to the provisions of
Are the DOF and BOC correct? D.A. No. 02-2004.262
A: DOF and BOC are not correct.
Q: Under what conditions may a compressed work week
R.A. No. 10863 or "The Act Modernizing the Customs and schedule be legally authorized as an exception to the "eight-
Tariff Administration" has taken effect in 2016. Section 1508 of hour a day" requirement under the Labor Code? State your
R.A. No. 10863 differs from Section 3506 of the TCCP in the answers and your reasons therefor.263
following aspects: A: A compressed work week schedule may be authorized under
(1) overtime work shall now be paid by the Bureau of the following conditions:
Customs, and no longer by "importers, shippers or other 1. The compressed work week scheme is undertaken as a
persons served"; result of an express and voluntary agreement of majority
(2) the rate of service fees, including overtime pay, as fixed of the covered employees or their duly authorized
by the Commissioner of Customs explicitly requires representatives. This agreement may be expressed through
approval by the Secretary of Finance; collective bargaining or other legitimate workplace
mechanisms of participation such as labor-management
(3) the provision in Section 3506 of the TCCP stating that councils, employee assemblies or referenda.
overtime pay in the Bureau of Customs should not be
lower than that paid to employees in private enterprises
no longer appears in Section 1508 of R.A. No. 10863; and
261 Bureau of Customs Employees Association v. Biazon, G.R. No. 205836, 12 July
2022.
262 DOLE D.A. No. 04-2010.
260 Labor Code, Art. 82. 263 BAR 2005.
ON LABOR LAW
2. In firms using substances, chemicals and processes or eight-hour workday shall not constitute a diminution of
operating under conditions where there are airborne benefits. The reversion shall be considered a legitimate
contaminants, human carcinogens or noise prolonged exercise of management prerogative, provided that the
exposure to which may pose hazards to the employees' employer shall give the employees prior notice of such
health and safety, there must be a certification from an reversion within a reasonable period of time.2"
accredited health and safety organization or practitioner
or from the firm's safety committee that work beyond Q: What are flexible working arrangements?
eight hours is within threshold limits or tolerable levels A: Flexible work arrangements refer to alternative arrangements
of exposure, as set in the Occupational Safety and Health or schedules other than the traditional or standard workhours,
Standards. workdays and workweek.'
3. The employer shall notify the DOLE, through the Q: What are examples of flexible working arrangements?
Regional Office having jurisdiction over the workplace,
of the adoption of the compressed work week scheme.264 A: The following are examples of flexible working arrangements:
(1) compressed workweek, (2) reduction of workdays, (3) rotation
Q: What are the effects of a valid compressed work week scheme? of workers, (4) forced leave, (5) broken-time schedule, and (6)
A: The effects of a valid compressed work week (CWW) scheme flexi-holidays schedule.267 Other examples include gliding or
are the following: flexi-time schedule!"
1. Unless there is a more favorable practice existing in the Q: What are the requirements prior to the adoption of a
firm, work beyond eight (8) hours will not be compensable flexible working arrangement?
by overtime premium provided the total number of hours A: The employer must notify the DOLE through the regional
worked per day shall not exceed twelve (12) hours. In office having jurisdiction over the workplace of the adoption of
any case, any work performed beyond 12 hours a day or any flexible working arrangement prior to its implementation in
48 hours a week shall be subject to overtime premium. the form prescribed by DOLE.'
2. Consistent with Article 85 of the Labor Code, employees
Q: What is telecommuting?
under a CWW scheme are entitled to meal periods of not
less than sixty (60) minutes. Nothing herein shall impair A: Telecommuting refers to a work arrangement that allows an
the right of employees to rest days as well as to holiday employee to work from an alternative workplace, in whole or in part,
pay, rest day pay or leaves in accordance with law or with the use of telecommunications and/or computer technologies."'
applicable collective bargaining agreement or company
practice.
3. Adoption of the CWW scheme shall in no case result in 265 Id.
diminution of existing benefits. Reversion to the normal 266 DOLE D.A. No. 4-10, Article II.
267 DOLE D.A. No. 2-09, Article III
268 DOLE D.A. No. 4-10, Article III
269 DOLE D.A. No. 2-09, Article V.
264 DOLE D.A. No. 02-2004. 270 R.A. No. 11165, Sec. 3.
ON LABOR LAW
Q: What is a telecommuting program? Q: May an employee propose a telecommuting program to

the employer?
A: Telecommuting program refers to the set of voluntarily
agreed policies and guidelines adopted in accordance with A: Yes. Any employee or group of employees may also propose
DOLE D.O. No. 237, any applicable collective bargaining a telecommuting program to the employer.'
agreement (CBA) or employment contract, or other company
Q: What are the contents of a telecommuting program?
rules or regulations that allow an employee to work from an
alternative workplace.271 A: The telecommuting program shall contain provisions as are
reasonably necessary or relevant to ensure its effective implementation,
Q: What form should the telecommuting program be? including but not limited to provisions on the following:
A: The telecommuting program may be in the form of a separate 1. Eligibility - job qualification (educational attainment, work
policy, or incorporated into existing policies or employment experience, training, soft skills, and digital skills), nature
contracts, or in such other form as is convenient to the parties; or functional areas of work or projects (e.g., research and
provided that in every case there is evidence that the employer development, product design and development, sales and
and the employees voluntarily agreed to adopt the program.' customer support, marketing and brand management, corporate
communication and social media marketing, finance
Q: May an employer offer a telecommuting program to its
employees? and administrative functions/task, financial management,
accounting, audit, controllership, human resource management,
A: An employer in private sector may offer a telecommuting IT and related works, and executive functions/tasks) and
program to its employees on a voluntary basis, and upon such terms roles or positions suitable for telecommuting], logistical
and conditions as they may mutually agree upon: Provided, that requirements (minimum specification or requirements of
such terms and conditions shall not be less than the minimum computer hardware and software and internet bandwidth,
labor standards set by law, and shall include compensable work access to host applications, and other applicable equipment
hours, minimum number of work hours, overtime, rest days, and and supplies, as deemed necessary), personal circumstances
entitlement to leave benefits. In all cases, the employer shall (age, pregnancy, health condition, disability), and performance
provide the telecommuting employee with relevant written (performance rating for the previous rating periods).
information in order to adequately apprise the individual of the
terms and conditions of the telecommuting program, and the 2. Alternative workplace/s - acceptable alternative workplace/s
responsibilities of employee."' for telecommuting, including provisions for telecommunication,
computer technology, facilities, and equipment.
3. Technology - Telecommunication and computer technology
minimum requirements of computer hardware and software,
such as terminals, host applications, internet connectivity
and security, and other applicable equipment and supplies.
271 R.A. No. 11165, Sec. 4.

272 DOLE Order No. 237 series of 2022, Sec. 5.
ON LABOR LAW
4. Occupational Safety and Health (OSH) - 0SH standards, of the telecommuting program, which shall include an
such as ergonomics, good housekeeping, light, sound, agreement for referral to voluntary arbitration.275
and temperature control, and mental health programs, as
reasonably necessary, including the physical and mental f. Non-compensable hours
well-being of employees.
Q: Which of the following is not compensable as hours worked?"'
5. Performance evaluation - common performance standards
A: The following are not compensable as hours worked; (1)
for telecommuting employees and comparable employees
travel away from home;27 (2) travel from home to work; (3)
at the employer's premises method and manner of
working while on call; and (4) travel that is all in a day's work.
performance evaluation and monitoring, appropriate means
of communicating feedback to the concerned employee, Q: When is attendance at lectures, meetings, training programs,
and immediate interventions to address performance issues. and other similar activities considered non-compensable?
6. Code of Conduct - appropriate work standards, such as A: Attendance at lectures, meetings, training programs, and
attendance, appearance and demeanor during virtual meetings, other similar activities shall not be counted as working time if all
submission of accomplishment reports, and measures to of the following conditions are met:
ensure compliance.
(a) attendance is outside of the employee's regular working
7. Data protection, confidentiality, and security - standards hours;
to protect personal information, sensitive personal information,
and other proprietary information utilizing available (b) attendance is in fact voluntary; and
technologies that promote data protection, confidentiality,
(c) the employee does not perform any productive work
and security pursuant to R.A. No. 10173 or the "Data
Privacy Act of 2012," its implementing rules and during such attendance.278
regulations, and other pertinent issuances of the National Q: Pol requested Obet, a union officer and concurrently
Privacy Commission. chairman- of the company's Labor-Management Council, to
8. Emergency Protocols - measures to address device breakdown, appeal to the company for a recomputation of Pol's overtime
poor internet connection, power interruption, weather disturbances, pay. After 5 p.m., his usual knock-off time, Obet spent two
and other related events and similar circumstances. hours at the Personnel Office, reconciling the differing computations
of Pol's overtime. Are those two hours compensable?279
9. Duration - date of effectivity and duration of the telecommuting,
such as termination or change of work arrangement due A: Yes, the two hours spent by Obet are considered compensable.
to employee's request, business necessity, or change in
operation, including reversion to previous work arrangement
sans renewal or extension.
10. Dispute resolution - grievance machinery to resolve all 276 BAR 2012.
grievances arising from the implementation and enforcement 278 Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 6.
279 BAR 2011.
ON LABOR LAW
Under the Omnibus Rules Implementing the Labor Code, Q: An employer may require an employee to work on the
attendance at lectures, meetings, training programs, and other employee's rest day283
similar activities shall not be counted as working time if all of
the following conditions are met: (a) attendance is outside of the (a) to avoid irreparable loss to the employer.
employee's regular working hours; (b) attendance is in fact (b) only when there is a state of calamity.
voluntary; and (c) the employee does not perform any productive
work during such attendance. (c) provided he is paid an extra of at least 50% of his
regular rate.
Here, not all of the conditions are met. While Obet's attendance
at the Personnel Office is outside of his regular working hours, (d) subject to 24-hour advance notice to the employee.
his attendance is not voluntary, but upon the request of Pol.
A: (a) to avoid irreparable loss to the employer."'
Moreover, Obet performed productive work during such attendance
by reconciling the differing computations of Poi's overtime.280 Q: When may an employer compel a worker to work on
his/her rest day?
3. Rest Periods - Labor Code., Arts. 91-93; Omnibus Rules
Implementing the Labor Code, Book HI, Rule 111, Secs. 1-9 A: An employer may require his employees to work on any day:
Q: What is the duration of weekly rest periods? 1. In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic
A: It shall be the duty of every employer, whether operating for or other disaster or calamity to prevent loss of life and
profit or not, to provide each of his employees a rest period of property, or imminent danger to public safety;
not less than twenty-four (24) consecutive hours after every six
(6) consecutive normal work days."' 2. In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which
Q: What is the limit on the employer's prerogative to the employer would otherwise suffer;
determine weekly rest periods?
3. In'the event of abnormal pressure of work due to special
A: The employer shall determine and schedule the weekly rest circumstances, where the employer cannot ordinarily be
day of his employees subject to collective bargaining agreement expected to resort to other measures;
and to such rules and regulations as the Secretary of Labor and
Employment may provide. However, the employer shall respect 4. To prevent loss or damage to perishable goods;
the preference of employees as to their weekly rest day when
5. Where the nature of the work requires continuous operations
such preference is based on religious grounds.'"
and the stoppage of work may result in irreparable injury
or loss to the employer; and
280 Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 6.
282 Id. 284 Labor Code, Art. 92.
ON LABOR LAW
6. Under other circumstances analogous or similar to the for performing work irrespective of the time consumed
foregoing as determined by the Secretary of Labor and in the performance thereof.28'
Employment.285
Q: Enumerate the regular holidays for the year 2024.
4. Holidays - Labor Code, Art. 94; Omnibus Rules
Implementing the Labor Code, Book III, Rule IV, Secs. A: The regular holidays for the year 2024 are as follows:
1-11 1. New Year's Day - January 1
Q: What is holiday pay? 2. Maundy Thursday — March 28
A: Holiday pay is an additional pay provided to a covered 3. Good Friday — March 29
employee on regular holidays, whether or not the said employee
worked."' 4. Araw ng Kagitingan - April 9
Q: Who are the covered and excluded employees? 5. Labor Day - May 1
A: Holiday pay applies to all employees, except the following: 6. Independence Day - June 12
1. Those of the government and any of the political 7. National Heroes Day — August 26 (Last Monday of August)
subdivision, including government-owned and controlled 8. Bonifacio Day - November 30
corporation;
9. Christmas Day - December 25
2. Those of retail and service establishments regularly
employing less than ten (10) workers; 10. Rizal Day - December 30
3. Domestic helpers and persons in the personal service of The proclamations declaring national holidays for the observance of
another; Eid'l Fitr and Eid'l Adha will only be issued after the
approximate dates of the Islamic holidays have been determined
4. Managerial employees as defined in Book Three of the in accordance with the Islamic calendar (Hijra) or the lunar
Labor Code; calendar, or upon Islamic astronomical calculations, whichever
5. Field personnel and other employees whose time and is possible or convenient."'
performance are unsupervised by the employer including
Q: What is the rule on holiday pay?
those who are engaged on task or contract basis, purely
commission basis, or those who are paid a fixed amount A: Every employee covered by the Holiday Pay Rule is entitled
to the minimum wage rate (daily basic wage and COLA). This
means that the employee is entitled to at least 100% of his/her
285 Labor Code, Art. 92. 287 Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec. 1.
286 Id. 288 Proclamation No. 386, S. 2023, 11 October 2023,
134 COMPENDIOUS BAR REVIEWER LABOR S;I'ANDARDS 135
ON LABOR LAW
minimum wage rate even if he/she did not report for work, Every employee covered by the Holiday Pay Rule is entitled to
provided he/she is present or is on leave of absence with pay on at least 100% of his/her minimum wage rate even if he/she did
the work day immediately preceding the holiday. not report for work, provided he/she is present or is on leave of
absence with pay on the work day immediately preceding
Work performed on that day merits at least twice (200%) the the holiday.293
daily wage of the employee."'
Q: Nemia earns £7.00 for every manicure she does in the
Q: When an employee works from 8 a.m. to 5 p.m. on a legal barber shop of a friend which has nineteen (19) employees.
holiday falling on his rest day, which of the following formulas At times she takes home P175.00 a day and at other times she
do you use to compute for his day's wage on that day?29° earns nothing. She now claims holiday pay. Is Nemia entitled
(a) His regular daily wage multiplied by 200% plus 30% to this benefit? Explain briefly.'
of the 200% A: No. Nemia is not entitled to holiday pay. Article 82 of the
(b) His regular daily wage multiplied by 200% Labor Code provides that workers who are paid by results are,
among others, not entitled to holiday pay. Nemia is a worker
(c) His regular daily wage plus 200% who is paid by results. She earns P7.00 for every manicure she does.
(d) His daily regular wage Q: On orders of his superior, Efren, a high-speed sewing
A: The correct answer is (a) His regular daily wage multiplied machine technician, worked on May 1, Labor Day. If he
by 200% plus 30% of the 200%291 worked eight (8) hours on that day, how much should he
receive if his daily rate is P400.00?'
Q: A, a worker of ABC Company, was on leave with pay on
A: Efren should receive £800.00. Article 94 of the Labor Code
March 31, 2010. He reported for work on April 1 and 2,
provides that the employer may require an employee to work on
Maundy Thursday and Good Friday, respectively, both regular
any holiday, but such employee shall be paid a compensation
holidays. Is A entitled to holiday pay for the two successive
equivalent to twice his regular rate.
holidays? Explain.292
A: Yes. A is entitled to holiday pay for the two (2) successive Q: This year, National Heroes Day (August 25) falls on a
holidays because, even though she was absent on the day Sunday. Sunday is the rest day of Bonifacio whose daily rate
immediately preceding the holiday, her absence was with pay. is £500.00.
If Bonifacio is required by his employer to work on that day
for eight (8) hours, how much should he be paid for his
work? Explain.
289 Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec. 4; DOLE-
Bureau of Working Conditions Handbook on Workers' Statutory Monetary
Benefits. 293 Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec, 6; DOLE-
299 BAR 2011. Bureau of Working Conditions Handbook on Workers' Statutory Monetary Benefits.
291 Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec. 4. 294 BAR 2002.
292 BAR 2010. 298 BAR 2002,
ON LABOR LAW
If he works for ten (10) hours on that day, how much should (d) Last Day of the Year
he receive for his work? Explain.29'
A: (a) EDSA People Power Revolution"°
A: For work performed on a regular holiday which is also the
employee's rest day: Plus 30% of the regular holiday rate of Q: Zorro, a security guard worked 12 hours per day, 7 days
200% based on his/her daily basic wage rate or a total of 260%. a week, but was not paid for his overtime work, work
Thus, given a daily rate of P500.00, Bonifacio's pay for 8 hours rendered on holidays and rest days, 13th month pay, service
of work is P1,300.00. incentive leave, and night shift differential.
Since the daily rate of Bonifacio for August 25 is P1,300.00 the One day, he received a memorandum suspending him for
same should be divided by 8 to determine his hourly rate of sleeping while on duty even though there was no formal
P162.50. This hourly rate should be multiplied by 2 (the number investigation conducted. Zorro served his suspension and
of hours he worked overtime). Thus, the amount that Bonifacio reported back to work but Company Y refused to accept him.
is entitled to receive for his overtime work on August 25, 2002 is Zorro filed a complaint for illegal suspension, underpayment
P325.00.297 and non-payment of benefits.
Q: Which of the following is not a regular holiday? The Labor Arbiter ruled that Zonio was validly suspended
and that he is not entitled to the payment of overtime and
(a) New Year's Eve; holiday pay, holiday and rest day premiums pay, and night
shift differentials pay for failure to substantiate them. Is the
(b) Eid al-Fitr; Labor Arbiter correct?
(c) Father's Day; A: In determining the employee's entitlement to monetary
(d) Independence Day.298 claims, the burden of proof is shifted from the employer or the
employee, depending on the monetary claim sought. In claims
A: (a) New Year's Eve and (c) Father's Day.299 for payment of salary differential, service incentive leave, holiday
pay, and 13th month pay, the burden rests on the employer to
Q: Which of the following is not a special non-working holiday? prove payment. This standard follows the basic rule that in all
(a) EDSA People Power Revolution illegal dismissal cases the burden rests on the defendant-
employer to prove payment rather than on the plaintiff-employee
(b) Black Saturday to prove non-payment. This likewise stems from the fact that all
pertinent personnel files, payrolls, records, remittances and other
(c) All Saint's Day similar documents — which show that the differentials, service
incentive leave and other claims of workers have been paid —
are not in the possession of the worker but are in the custody and
control of the employer. On the other hand, for overtime pay,
296 BAR 2002.
297 2023 Handbook on Worker's Statutory Monetary Benefits, Article 3, Section D,
premium pays for holidays and rest days, the burden is shifted on
Item 3.
298 BAR 2012.
300
299 Proclamation No. 368, S. 2023, 11 October 2023. Proclamation No. 368, S. 2023, 11 October 2023.
COMPENDIOUS BAR REVIEWER LABOR STANDARDS 139
138
ON LABOR LAW
the employee, as these monetary claims are not incurred in the regardless of their positions, designations or employment status,
normal course of business. It is thus incumbent upon the and irrespective of the method by which their wages are paid.3"
employee to first prove that he actually rendered service in
excess of the regular eight working hours a day, and that he in Q: How are service charges distributed?
fact worked on holidays and rest days.30'
A: All service charges actually collected shall be distributed
5. Service Charge - Labor Code, Art. 96; Omnibus Rules completely and equally, based on actual hours or days of work or
Implementing the Labor Code, Book III, Rule VI, Secs. 1-7; service rendered, among the covered employees, including those
R.A. No. 11360; DOLE D.O. No. 206-19; DOLE L.A. already receiving the benefit of sharing in the service charges.3"
No. 14-19
Q: Ricardo operated a successful Makati seafood restaurant
Q: What are service charges? patronized by a large clientele base for its superb cuisine and
impeccable service. Ricardo charged its clients a 10% service
A: Service charges refer to the additional payment for services charge and distributed 85% of the collection equally among
collected by hotels, restaurants, and similar establishments which its rank-and-file employees, 10% among managerial employees,
are given to covered employees."2 and 5% as reserve for losses and breakages. Because of the
huge volume of sales, the employees received sizeable shares
Q: What are the establishments covered by the law on in the collected service charges.
service charge?
As part of his business development efforts, Ricardo opened
A: All establishments collecting service charges such as hotels, a branch in Cebu where he maintained the same practice in
restaurants, lodging houses, night clubs, cocktail lounge, massage the collection and distribution of service charges. The Cebu
clinics, bars, casinos and gambling houses, and similar enterprises, branch, however, did not attract the forecasted clientele;
including those entities operating primarily as private subsidiaries hence, the Cebu employees received lesser service charge
of the Government.'" benefits than those enjoyed by the Makati-based employees.
As a result, the Cebu branch employees demanded equalization
Q: Who are the employees covered by the law on service
of benefits and filed a case with the NLRC for discrimination
charge?
when Ricardo refused their demand.
A: All employees, except managerial employees as defined by
Will the case prosper?
law, under the direct employ of the covered establishment,
(a) Yes, because the employees are not receiving equal
treatment in the distribution of service charge benefits.
304
Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec. 2; DOLE-
Bureau of Working Conditions Handbook on Workers' Statutory Monetary
301 Zonio v. Is'
Quantum Leap Security Agency, Inc., G.R. No. 224944, 05 May Benefits.
2021. 305
302
Labor Code, Art. 96, as amended by R.A. No, 11360; DOLE-Bureau of Working
Labor Code, Art. 96, as amended by R.A. No. 11360. Conditions Handbook on Workers' Statutory Monetary Benefits; Labor Advisory
303 Omnibus Rules Implementing the Labor Code, Book III, Rule VI, Sec. 1. No. 14-19.
ON LABOR LAW
(b) Yes, because the law provides that the 85% employees' A: (b) Every two weeks. The shares of service charges shall be
share in the service charge collection should be equally distributed and paid to the covered employees not less than once
divided among all the employees, in this case, among every two weeks or twice a month at intervals not exceeding
the Cebu and Makati employees alike. sixteen (16) days.'
(c) No, because the employees in Makati are not similarly 6. Occupational Safety and Health Standards Law - R.A.
situated as the Cebu employees with respect to cost of No. 11058, Secs. 4-6, 8 and 12
living and conditions of work.
Q: What are the workplaces covered by R.A. No. 11058
(d) No, because the service charge benefit attaches to the otherwise known as the Occupational Safety and Health
outlet where service charges are earned and should Standards Law?
be distributed exclusively among the employees providing
service in the outlet. A: Covered workplaces refer to establishments, projects, sites
and all other places where work is being undertaken wherein the
(e) No, because the market and the clientele the two number of employees, nature of operations, and risk or hazard
branches are serving, are different.'" involved in the business, as determined by the Secretary of
A: (d) No, because the service charge benefit attaches to the Labor and Employment, require compliance with the provisions
outlet where service charges are earned and should be distributed of this Act.309
exclusively among the employees providing service in the outlet.
Q: What must employers inform their workers relating to
Note: The percentage of distribution of service charge has been occupational safety?
amended by R.A. No. 11360 otherwise known as the "Service
A: Employers must inform the workers of the hazards
Charge Law." The Service Charge Law mandates all establishments
associated with their work, health risks involved or to which they
collecting service charge such as hotels and restaurants to
are exposed to, preventive measures to eliminate or minimize the
distribute complete and equally or 100 percent service charges to
risks, and steps to be taken in cases of emergency.310
all employees, except those in a managerial position.
Q: What must workers know relating to the hazards in their
Q: How often should the collected service charges be distributed
workplace?
to employees in hotels and restaurants?
A: All workers shall be appropriately informed by the employer
(a) Every end of the month
about all types of hazards in the workplace, provided access to
(b) Every two weeks training and education on chemical safety, and to orientation on
(c) Every week

(d) At the end of each work day307
307
BAR 2011.
308
Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sec. 4.
309
R.A. No. 11058, Sec. 3 (c).
306 BAR 2013. 3I° R.A. No. 11058, Sec. 4 (a) (3).
ON LABOR LAW
the data sheet of chemical safety, electrical safety, mechanical (e) Composition and duties of the safety and health committee;
safety, and ergonomical safety."'
(f) OSH personnel and facilities;
Q: When can a worker refuse to work due to safety issues? (g) Safety and health promotion, training and education;
A: When the DOLE determines that an imminent danger (h) Conduct of toolbox meetings;
situation exists in the workplace that may result in illness, injury
or death, and corrective actions to eliminate the danger have not (i) Accident/incident/illness investigation, recording and
been undertaken by the employer.312 reporting;
Q: Can an employer deduct from the workers' salary the (j) Provision and use of PPE;
cost of personal protective equipment (PPE)? (k) Provision of safety signage;
A: No, the employer cannot deduct from the workers' salary the
(1) Dust control and management, and regulations on activities
cost of the PPE. When necessary due to the hazards of work,
such as building of temporary structures, and lifting and
every employer shall provide his/her worker free of charge
operation of electrical, mechanical, communications
protective equipment for their eyes, face, hands and feet, and
systems and other equipment;
lifeline, safety belt or harness, gas or dust respirators or masks,
and protective shields. The costs shall be part of the operations (m) Provision of workers' welfare facilities;
cost of the employer.313
(n) Emergency preparedness and response plan;
Q: What should be included in the Occupational Safety and
(o) Waste management system; and
Health (OSH) Program of covered workplaces?
A: The OSH Program shall contain the following: (p) Prohibited acts and penalties for violations.
(a) Statement of commitment to comply with OSH Q: Can an employee validly refuse to work due to an
requirements; imminent danger in the workplace?
(b) General safety and health, including a drug-free workplace; A: The worker has the right of refusal to work without threat or
reprisal from the employer if, as determined by the DOLE, an
(c) Human Immunodeficiency Virus (HIV) and Acquired imminent danger situation exists in the workplace that may result
Immune Deficiency Syndrome (AIDS)/tuberculosis/ in illness, injury or death, and corrective actions to eliminate the
hepatitis prevention control; danger have not been undertaken by the employer."'
(d) Company or project details;
31 1 R.A. No. 11058, Sec. 5.

312 R.A. No. 11058, Sec. 6.
313
R.A. No. 11058, Sec. 8. 314 R.A. No. 11058, Chapter III, Sec. 6.
ON LABOR LAW
1 LABOR STANDARDS 145
B. Wages 4. It includes the fair and reasonable value, as determined

by the DOLE Secretary, of board, lodging, or other
1. Components and Exclusions facilities customarily furnished by the employer to the
employee. "Fair and reasonable value" shall not include
a. Wages - Labor Code. Art. 97 (f►
any profit to the employer, or to any person affiliated
Q: How is wage defined under the Labor Code? with the employer.3'6
A: Wage means the remuneration or earnings, however designated, Q: Benito is the owner of an eponymous clothing brand that
capable of being expressed in terms of money, whether fixed or is a top seller. He employs a number of male and female
ascertained on a time, task, piece, or commission basis, or other models who wear Benito's clothes in promotional shoots and
method of calculating the same, which is payable by an videos. His deal with the models is that Benito will pay them
employer to an employee under a written or unwritten contract of with 3 sets of free clothes per week.
employment for work done or to be done, or for services
Is this arrangement allowed?3"
rendered or to be rendered and includes the fair and reasonable
value, as determined by the Secretary of Labor and Employment, A: No, the arrangement is not allowed. The models are Benito's
of board, lodging, or other facilities customarily furnished by the employees. As such, their services require compensation in legal
employer to the employee. "Fair and reasonable value" shall not tender.318 The three sets of clothes, regardless of value, are in
include any profit to the employer, or to any person affiliated kind; hence, the former's compensation is not in the form prescribed
with the employer.315 by law.
Q: What are the attributes of wage? Q: Tarcisio was employed as operations manager and
received a monthly salary of P25,000.00 through his payroll
A: Based on its definition, the attributes of wage are the
account with DB Bank. He obtained a loan from Roberto to
following:
purchase a car. Tarcisio failed to pay Roberto when the loan
1. It is the remuneration or earnings, however designated, fell due. Roberto sued to collect and moved to garnish
for work done or to be done or for services rendered or Tarcisio's payroll account. The latter vigorously objected
to be rendered; and argued that salaries were exempt from garnishment. Is
Tarcisio correct? Explain your answer.319
2. It is capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece or A: No, Tarcisio is not correct. Case law exempts rank-and-file
commission basis, or other method of calculating the same; employees from garnishment. Tarcisio, however, is a managerial
3. It is payable by an employer to an employee under a

written or unwritten contract of employment for work
done or to be done or for services rendered or to be
rendered; and 316 Id.
317 BAR 2015.
ON LABOR LAW
employee. Since the rule covers only rank-and-file employees, A: (d) Yes, since award of attorney's fee is not limited to cases
Tarcisio's salary is not exempt from garnishment."' of withholding of wages.
Q: Distinguish "salary" from "wages." Are these subject to b. Facilities

attachment and execution?'
Q: What are facilities?
A: The term "wages" applies to compensation for manual labor,
skilled or unskilled, while salary denotes a compensation for a A: Facilities are articles or services provided by the employer
higher degree of employment.'" for the benefit of the employee or his/her family but shall not
include tools of the trade of articles or services primarily for the
Q: How much attorney's fees may a lawyer assess a culpable benefit of the employer or necessary to the conduct of the
party in cases of unlawful withholding of wages? employer's business.
A: In cases of unlawful withholding of wages, the culpable The term shall include:
party may be assessed attorney's fees equivalent to ten percent
(10%) of the amount of wages recovered."' 1. Meals;
2. Housing for dwelling purposes;
Q: The union's by-laws provided for burial assistance to the
family of a member who dies. When Carlos, a member, died, 3. Fuel including electricity, water, gas furnished for the
the union denied his wife's claim for burial assistance, compelling non-commercial personal use of the employee;
her to hire a lawyer to pursue the claim. Assuming the wife
wins the case, may she also claim attorney's fees? 4. transportation furnished to the employee between his
home and work where the travel time does not constitute
(a) No, since the legal services rendered has no connection hours worked compensable under the Labor Code and
to CBA negotiation. other laws;
(b) Yes, since the union should have provided her the 5. School, recreation and sanitation when operated exclusively
assistance of a lawyer. for the benefit of the worker or his family;
(c) No, since burial assistance is not the equivalent of wages. 6. Medical and dental services rendered to the non-industrial
cases; and
(d) Yes, since award of attorney's fee is not limited to
cases of withholding of wages.' 7. Other articles and services given primarily for the
benefit of the worker or his family.325
320 Gaa v. Court of Appeals, G.R. No. L-44169, 03 December 1985.

321 BAR 1994.
322 Gaa v. Court of Appeals, G.R. No. L-44169, 03 December 1985.
324 BAR 2011. 325 DOLE D.O. No. 126-2013.
ON LABOR LAW
c. Supplements of P426.00 plus P30.00 allowance, and thus required Gamma

Company to pay wage differentials.
Q: What are supplements?
Gamma Company denies any liability, explaining that after
A: Supplements are extra remuneration or special privileges or the market value of the company-provided board and
benefits given to or received by the laborers over and above their lodging are added to the employees' P350 cash daily wage,
ordinary earnings or wages.326 the employees' effective daily rate would be way above the
minimum pay required by law. The company counsel further
Q: What are the distinctions between facilities and supplements?
points out that the employees are aware that their food and
A: "Supplements" constitute extra remuneration or special lodging form part of their salary and have long accepted the
privileges or benefits given to or received by the laborers over arrangement.
and above their ordinary earnings or wages.
Is the company's position legally correct?"'
"Facilities" are items of expense necessary for the laborer's and
A: No. The company's position is not legally correct.
his family's existence and subsistence so that by express
provision of law, they form part of the wage and when furnished In Mayon Hotel & Restaurant v. Adarna,329 it was held that the
by the employer are deductible therefrom, since if they are not so cost of meals and snacks provided to the employees, which
furnished, the laborer would spend and pay for them just the same. constituted facilities, cannot be deducted from their wage unless
In short, the benefit or privilege given to the employee which the following requirements are present:
constitutes an extra remuneration above and over his basic or 1. Proof that such facilities are customarily furnished by
ordinary earning or wage is supplement; and when said benefit the trade;
or privilege is part of the laborers' basic wages, it is a facility.
The distinction lies not so much in the kind of benefit or item 2. The provision of deductible facilities is voluntarily accepted
(food, lodging, bonus or sick leave) given, but in the purpose for by the employee; and
which it is given."'
3. The facilities are charged at the fair and reasonable value.
Q: Gamma Company pays its regular employees P350.00 a Mere availment is not sufficient to allow deduction from
day and houses them in a dormitory inside its factory compound employee's wages.
in Manila. Gamma Company also provides them with three Here, there is no showing that Gamma Company complied with
full meals a day. the foregoing requisites. Hence, it cannot legally deduct the cost
In the course of a routine inspection, a DOLE Inspector noted of food and lodging cannot form part of the employees' wages.
that the workers' pay is below the prescribed minimum wage
326 Our Haus Realty Development Corporation v. Alexander Parian, G.R. No.
204651, 06 August 2014.
327 Id. citing Atok-Big Wedge Mutual Benefit Association v. Atok-Big Wedge Mining 328 BAR 2013.
Company, Incorporated, G.R. No. L-7349, 19 July 1955. 329 Mayon Hotel & Restaurant v. .4darna, G.R. No. 157634, 16 May 2005.
ON LABOR LAW
d. Bonus However, a bonus is demandable and enforceable when it is stipulated

in an employment contract or collective bargaining agreement or
Q: What is a bonus? when the grant of bonus is a company policy or practice.'"
A: According to jurisprudence, a bonus is an amount granted A bonus may also be demandable when it is granted as an additional
and paid to an employee for his industry and loyalty which compensation which the employer agreed to give without any
contributed to the success of the employer's business and made condition and. thus, must be deemed part of wage or salary.'"
possible the realization of profits. It is an act of generosity
granted by an enlightened employer to spur the employee to Q: The projected bonus for the employees of Suerte Co. was
greater efforts for the success of the business and realization of 50% of their monthly compensation. Unfortunately, due to
bigger profits. The granting of a bonus is a management the slump in the business, the president reduced the bonus to
prerogative, something given in addition to what is ordinarily 5 % of their compensation. Can the company unilaterally
received by or strictly due the recipient."' reduce the amount of bonus? Explain briefly.
The Supreme Court has consistently ruled that a bonus is not a A: Yes, the company can unilaterally reduce the amount of
demandable and enforceable obligation. True, it may nevertheless bonus. According to the Supreme Court, it is an act of generosity
be granted on equitable considerations as when the giving of granted by an enlightened employer to spur the employee to
such bonus has been the company's long and regular practice. To greater efforts for the success of the business and realization of
be considered a "regular practice," however, the giving of the bigger profits. The granting of a bonus is a management prerogative,
bonus should have been done over a long period of time, and something given in addition to what is ordinarily received by or
must be shown to have been consistent and deliberate. The test strictly due the recipient."' The Supreme Court has consistently
or rationale of this rule on long practice requires an indubitable ruled that a bonus is not a demandable and enforceable obligation."'
showing that the employer agreed to continue giving the benefits
knowing fully well that said employees are not covered by the Q: Lito was anticipating the bonus he would receive for
law requiring payment thereof."' 2013. Aside from the 13th month pay, the company has been
awarding him and his other co-employees a two to three
Q: Can employees demand bonuses? months bonus for the last 10 years. However, because of poor
over-all sales performance for the year, the company
A: As a general rule, employees cannot demand bonuses as a unilaterally decided to pay only a one month bonus in 2013.
matter of right. It is a management prerogative given in addition Is Lito's employer legally allowed to reduce the bonus?'
to what is ordinarily received by or strictly due to recipient."'
333 Manila Electric Company v. Secretary of Labor, G.R. No. 127598, 27 January 1999.
334 Atok Big Wedge Mining Co., Inc. v. Atok Big Wedge Mutual Benefit Association,
330 Producers Bank of the Phils. v. National Labor Relations Commission, G.R. No. G.R. No. L-5276, 03 March 1953.
100701, 28 March 2001. 333 Producers Bank of the Phils. v. National Labor Relations Commission, G.R. No.
331 Philippine Appliance Corp. (PHILACOR) v. Court of Appeals, G.R. No. 149434, 100701, March 28, 2001.
03 June 2004. 336 Philippine Appliance Corp. (PHILACOR) v. Court of Appeals, G.R. No. 149434,
332 Producers Bank of the Phil. v. National Labor Relations Commission, G.R. No. 03 June 2004.
100701, 28 March 2001. 337 BAR 2014.
ON LABOR LAW
A: Yes, Lito's employer is legally allowed to reduce the bonus. Katrina, an employee of FEB, who had gotten a rating of
A bonus is an act of generosity granted by an enlightened "Excellent" for the last 3 quarters was looking forward to
employer to spur the employee to greater efforts for the success the bonuses plus the productivity incentive bonus. After learning
of the business and realization of bigger profits. The granting of that FEB had modified the bonus scheme, she objected. Is
a bonus is a management prerogative, something given in addition Katrina's objection justified? Explain.'"
to what is ordinarily received by or strictly due the recipient.
Thus, a bonus is not a demandable and enforceable obligation, A: Katrina's objection is justified. The Supreme Court has ruled
except when it is made part of the wage, salary or compensation that permitting reduction of work and pay at the slightest indication
of the employee."' of losses would be contrary to the State's policy to afford protection
to labor and provide full employment. Certainly, management
Q: Far East Bank (FEB) is one of the leading banks in the has the prerogative to come up with measures to ensure profitability
country. Its compensation and bonus packages are top of the or loss minimization. However, such a privilege is not absolute.
industry. For the last 6 years, FEB had been providing the Management prerogative must be exercised in good faith and
following bonuses across-the-board to all its employees: with due regard to the rights of labor.340 Further, although a
bonus is not a demandable and enforceable obligation, it may
(a) 13th month pay; nevertheless be granted on equitable considerations as when the
giving of such bonus has been the company's long and regular
(b) 14th to 18th month pay;
practice. To be considered a "regular practice," however, the
(c) Christmas basket worth £6,000; giving of the bonus should have been done over a long period of
time and must be shown to have been consistent and deliberate.
(d) Gift check worth P4,000; and The test or rationale of this rule on long practice requires an
(e) Productivity-based incentive ranging from a 20o/o to indubitable showing that the employer agreed to continue giving
40% increase in gross monthly salary for all employees the benefits knowing fully well that said employees are not covered
who would receive an evaluation of "Excellent" for 3 by the law requiring payment thereof.34' As the productivity-
straight quarters in the same year. based bonus has been awarded for the last six years, such may be
considered to be a regular practice.
Because of its poor performance over-all, FEB decided to cut
back on the bonuses this year and limited itself to the following: As to the withheld productivity-based bonuses, Katrina is deemed
to have earned them because of her excellent performance
(a) 13th month pay; ratings for three quarters. On this basis, they cannot be withheld
without violating the Principle of Non-Diminution of Benefits.
(b) 14Th month pay;
Moreover, it is evident from the facts of the case that what was
(c) Christmas basket worth P4,000; and withdrawn by FEB was a productivity bonus. Protected by R.A.
(d) Gift check worth P2,000
339 BAR 2015.
34° Linton Commercial Co. v. Hellera, G.R. No. 163147, 10 October 2007.
American Wire and Cable Daily Rated Employees Union v. American Wire and
338 34 Philippine Appliance Corp. (PHHACOR) v. Court of Appeals, G.R. No. 149434,
Cable Co., Inc., et al, G.R. No. 155059, 29 April 2005. 3 June 2004.
ON LABOR LAW
No. 6791 which mandates that the monetary value of the Q: Who are required to pay the 13th month pay?
productivity improvement be shared with the employees, the
A: All establishments regardless of the number of employees are
"productivity-based incentive" scheme of FEB cannot just be
withdrawn without the consent of its affected employees. required to pay their rank-and-file employees the 13th month pay.'"
Q: Who are entitled to the 13th month pay?

e. 13th Month Pav - P.D. No. 851; Revised Guidelines on the
Implementation of the 13th Month Pav Law A: All rank-and-file employees, regardless of the nature of their
employment and irrespective of the methods by which their
Q: What is 13th month pay? wages are paid, are entitled to 13th month pay .3"
A: Thirteenth (13th) month pay is a form of monetary benefit Rank-and-file employees who are paid on piece-rate basis, fixed
equivalent to the monthly basic compensation received by an or guaranteed wage plus commission, with multiple employers,
employee, computed pro-rata according to the number of months
resigned or were terminated, and were on maternity leave and
within a year that the employee has rendered service to the receive salary differential are also entitled to the 13th month pay.347
employer.'"
Q: What is the minimum period of service required in a
Q: How is the 13th month pay computed?
calendar year to be entitled to the 13th month pay?
A: Thirteenth month pay is computed based on one twelfth A: The employee must have worked for at least one (1) month
(1/12) of the basic salary of an employee within a calendar year,
during a calendar year.'"
or basic monthly salary for the whole year divided by 12
months.'" Q: When shall the 13th month pay be paid?
Q: What are the components of "basic salary"? A: The 13th month pay should be paid not later than December
24 of each year."'
A: "Basic salary" shall include all remunerations or earnings
paid by an employer to an employee for services rendered, but Q: What are the options on the payment of the 13th month
does not include allowances and monetary benefits which are not benefit?
considered, or integrated, as part of the regular, or basic, salary,
such as the cash equivalent of unused vacation and sick leave A: An employer may give to his employees one half (1/2) of the
credits, overtime, premium, night differential and holiday pay. required 13th month pay before the opening of the regular school
Basic salary includes cost-of-living allowances."' year and the other half on before the 24th of December of every
345 Q&A on 13th Month Pay, 14 November 2014, DOLE - Bureau of Working
Conditions.
346 P.D. No. 851; Sec. 4, Rules and Regulations Implementing P.D. No. 851; DOLE
342 Q&A on 13th Month Pay, 14 November 2014, DOLE - Bureau of Working Labor Advisory No. 23-2022.
Conditions. 347 DOLE Labor Advisory No. 23-2022.
343 Id. P.D. No. 851; Sec. 2, Rules and Regulations Implementing P.D. No. 851; 348 P.D. No. 851; Sec. 4, Rules and Regulations Implementing P.D. No. 851; DOLE
DOLE Labor Advisory No. 23-2022. Labor Advisory No. 23-2022.

344 349 Id
ON LABOR LAW
year. The periodicity or frequency of payment of the 13th month The law on the 13th month pay provides that employees are
pay may be the subject of agreement between the employer and entitled to the benefit of said law regardless of their designation
the recognized/collective bargaining agent of the employees.'" or employment status.
Q: Who are exempted from paying the 13th month benefit? In Jackson Building Condominium Corporation v. National
Labor Relations Commission, et al.,353 the Supreme Court
A: The following employers are not covered by P.D. No. 851: interpreted P.D. No. 851 as follows: employees are entitled to
the thirteenth-month pay benefits regardless of their designation
1. The government and any of its political subdivisions,
and irrespective of the method by which their wages are paid.
including government-owned and controlled corporations,
except those corporations operating essentially as private Q: Concepcion Textile Co. included the overtime pay, night-
subsidiaries of the government; shift differential pay, and the like in the computation of its
2. Employers who are already paying their employees employees' 13th month pay. Subsequently, with the promulgation
thirteenth- month pay or more in a calendar year or its of the decision of the Supreme Court in the case of San
equivalent at the time of the issuance of P.D. No. 851; Miguel Corporation vs. Inciong holding that these other
monetary claims should not be included in the computation
3. Persons in the personal service of another in relation to of the 13th month pay. Concepcion Textile Co. sought to
such workers; and recover under the principle of solutio indebiti over payment
of its employees' 13th month pay, by debiting against future 13th
4. Employers of those who are paid on purely commission,
month payments whatever excess amounts it had previously made.
boundary or task basis, and those who are paid a fixed
amount for performing specific work, irrespective of the Is the Company's action tenable?
time consumed in the performance thereof (except those
workers who are paid on piece-rate basis, in which case A: The Company's action is not tenable. The principle of solutio
their employer shall grant them 13'11 month pay).351 indebiti which is a civil law concept is not applicable in labor
law. Thus, solutio indebiti is not applicable to the instant case.'"
Q: What would be your advice to your client, a manufacturing
company, who asks for your legal opinion on whether or not Q: Who among the following is not entitled to 13th month
pay?355
the 13th Month Pay Law (P.D. No. 851) covers a casual
employee who is paid a daily wage?"' (a) Stephanie, a probationary employee of a cooperative
A: I will advise the manufacturing company to pay the casual bank who rendered six (6) months of service during
employee 13111 month pay if such casual employee has worked the calendar year before filing her resignation;
for at least one (1) month during a calendar year. (b) Rafael, the Secretary of a Senator;
350 P.D. No. 851; Sec. 5, Rules and Regulations Implementing P.D. No. 851.
351 DOLE - Bureau of Working Conditions Handbook on Workers' Stautory 353 G.R. No. 111515, 14 July 1995.
Monetary Benefits. 354 Davao Fruits Corporations v. XLRC, G.R. No. 85073, 24 August 1993.
352 BAR 1998. 355 BAR 2012.
ON LABOR LAW
(c) Selina, a cook employed by and who lives with an old his/her employees the same position and rank, the presumption is
maid and who also tends the sari-sari store of the latter; that these employees perform equal work.'"
(d) Roger, a house gardener who is required to report to c. Fair Wage for Fair Work
work only thrice a week.
[Please see discussion on no work, no pay]
A: (b) Rafael, the secretary of a Senator.356
d. Non-Diminution of Benefits - Labor Code, Art. 100
f. Holiday Pay - Labor Code, Art. 94; Omnibus Rules
Implementing the Labor Code, Book HI, Rule IV, Secs. 1-7 Q: What is the Non-Diminution Rule?
[Please see discussion on Holidays under Conditions of A: The Non-Diminution Rule found in Article 100 of the Labor
Employment] Code explicitly prohibits employers from eliminating or reducing
the benefits received by their employees. This rule, however,
2. Principles applies only if the benefit is based on an express policy, a written
contract, or has ripened into a practice.'"
a. No Work, No Pay
Q: What is the rationale behind the Non-Diminution Rule?
Q: Briefly describe the no work, no pay principle.
A: Generally, employees have a vested right over existing
A: The no work, no pay principle came from the adage of "a benefits voluntarily granted to them by their employer. Thus, any
fair day's wage for a fair day's labor." If there is no work benefit and supplement being enjoyed by the employees cannot
performed by the employee there can be no wage or pay unless, be reduced, diminished, discontinued or eliminated by the
of course, the laborer was able, willing, and ready to work but employer. The principle of non-diminution of benefits is actually
was illegally locked out, suspended or dismissed, or otherwise founded on the Constitutional mandate to protect the rights of
illegally prevented from working.35' workers, to promote their welfare, and to afford them full
protection. In turn, said mandate is the basis of Article 4 of the
b. Equal Pay for Equal Work
Labor Code which states that "all doubts in the implementation
Q: What does the principle of equal pay for equal work provide? and interpretation of this Code, including its implementing rules
and regulations, shall be rendered in favor of labor."'"
A: The principle provides that "persons who work with substantially
equal qualification, skill, effort and responsibility, under similar
conditions, should be paid similar salaries,". If an employer accords
358 Philex Gold Philippines Inc. v. Philex Bulacan Supervisors Union, G.R. No.
149758, 25 August 2005.
359 Wesleyan University-Philippines v. Wesleyan University-Philippines Faculty and
Staff Association, G.R. No. 181806, 12 March 2014.
Implementing Rules and Regulations of P.D. 851, Section 3 (b).
356 360 Ricardo E. Vergara, Jr. v. Coca-Cola Bottlers Philippines, Inc., G.R. No.
357Aklan Electric Cooperative Incorporated v. National Labor Relations 176985, 01 April 2013; Nippon Paint Philippines, Inc., v. Nippon Paint Philippines
Commission„ G.R. No. 121439, 25 January 2000. Employees Association, G.R. No. 229396, 30 June 2021.
ON LABOR LAW
Q: When may the grant of a benefit be considered to have (b) No, R failed to present evidence that the college committed
ripened into a company practice for the Non-Diminution to provide the additional allowance or that they were
Rule to apply? consistently granting such benefit as to have ripened
into a practice which cannot be peremptorily withdrawn.
A: There is no hard and fast rule which may be used and applied in
Hence, there is no violation of the rule against diminution
determining whether the grant of a benefit by the employer may be
of pay;
considered as having ripened into a practice. However, the following
criteria may be used to determine whether an act has ripened into a (c) No, R's re assignment did not amount to constructive
company practice: dismissal because the college has the right to transfer
R based on contractual stipulation. 362
1. The act of the employer has been done for a considerable
period of time; A: (b) No, R failed to present evidence that the college committed
to provide the additional allowance or that they were consistently
2. The act should be done consistently and intentionally; and
granting such benefit as to have ripened into a practice which
3. The act should not be a product of erroneous interpretation cannot be peremptorily withdrawn. Hence, there is no violation
or construction of a doubtful or difficult question of law or of the rule against diminution of pay.
provision in the CBA.361
In Vergara, Jr. v. Coca-Cola Bottlers Philippines, Inc.,363 the
Q: R was employed as an instructor of Cruz College located Supreme Court ruled that to establish the existence of a regular
in Santiago City, Isabela. Pursuant to a stipulation in R's company practice, the employee must prove by substantial
employment contract that the college has the prerogative to evidence that the giving of the benefit is done over a long period
assign R in any of its branches or tie-up schools as the necessity of time and that it has been made consistently and deliberately, i.e.,
demands, the college proposed to transfer him to Ilagan, a despite the employer's knowledge that the payment of a benefit
nearby town. R filed a complaint alleging constructive dismissal is not required by any law or agreement.
since his re-assignment will entail an indirect reduction of his
Q: X Company's CBA grants each employee a le month
salary or diminution of pay considering that additional allowance
year-end bonus. Because the company is in financial difficulty,
will not be given to cover for board and lodging expenses. R,
its head wants to negotiate the discontinuance of such bonus.
however, failed to prove that allowances were given in similar
Would such proposal violate the "non-diminution rule" in
instances in the past. Is R's contention that he will suffer
the Labor Code?
constructive dismissal in view of the alleged diminution of
benefit correct? (a) No, but it will certainly amount to negotiating in bad
faith.
(a) Yes, such transfer should require an automatic additional
allowance; the non-granting of said allowance amounts (b) Yes since the rule is that benefits already granted in a
to a diminution of benefit; CBA cannot be withdrawn or reduced.
362 BAR 2012.

361 Id. 363 G.R. No. 176985, 01 April 2013.
ON LABOR LAW
(c) No, since the law does not prohibit a negotiated Was LLF justified in withdrawing this benefit which it had
discontinuance of a CBA benefit. unilaterally been providing to its employees?
(d) Yes, since such discontinuance will cancel the enjoyment (a) Yes, because it is suffering losses for the first time.
of existing benefits."'
(b) Yes, because this is a management prerogative which
A: (c) No, since the law does not prohibit a negotiated is not due to any legal or contractual obligation.
discontinuance of a CBA benefit.
(c) No, because this amounts to a diminution of benefits
Q: In computing for 13th month pay, Balagtas Company which is prohibited by the Labor Code.
used as basis both the employee's regular base pay and the
(d) No, because it is a fringe benefit that has already
cash value of his unused vacation and sick leaves. After two
ripened into a demandable right."'
and a half years, it announced that it had made a mistake
and was discontinuing such practice. Is the management A: (c) No, because this amounts to a diminution of benefits
action legally justified? which is prohibited by the Labor Code.
(a) Yes, since 13th month pay should only be one-twelfth 3. Payment of Wages - Labor Code, Arts. 102-105;
of the regular pay. Omnibus Rules Implementing the Labor Code, Book III
(b) No, since the erroneous computation has ripened into Rule VIII, Secs. 1-7 and 10-14
an established, non-withdrawable practice.
Q: What is the legal form of payment of wages?
(c) Yes, an error is not a deliberate decision, hence may
A: Payment should be in legal tender. No employer shall pay
be rectified.
the wages of an employee by means of promissory notes,
(d) No, employment benefits can be withdrawn only through vouchers, coupons, tokens, tickets, chits, or any object other than
a CBA negotiation."' legal tender, even when expressly requested by the employee.367
A: (b) No, since the erroneous computation has ripened into an Q: When should wages be paid?
established, non-withdrawable practice.
A: Wages shall be paid at least once every two (2) weeks or
Q: Lolong Law Firm (LLF), which employs around 50 lawyers twice a month at intervals not exceeding sixteen (16) days.'"
and 100 regular staff, suffered losses for the first time in its
history. The management informed its employees that it could
no longer afford to provide them free lunch. Consequently, it
announced that a nominal fee would henceforth be charged.
366 BAR 2014.

367 Labor Code, Art. 102. Omnibus Rules Implementing the Labor Code, Book III,
364 BAR 2011. Rule VIII, Sec. 1
365 BAR 2011. 368 Labor Code, Art. 103
ON LABOR LAW
Q: Where should wages be paid? they are his heirs to the exclusion of all other persons. In case
any of the heirs is a minor, such affidavit shall be executed in his
A: Wages should be paid at or near the place of undertaking, behalf by his natural guardian or next of kin. Upon presentation
unless otherwise approved by the Secretary of Labor.369 of the affidavit to the employer, he shall make payment to the heirs
as representative of the Secretary of Labor and Employment.370
Q: In what instances can wages be paid outside the customary
place of work? Q: Anna is working in a grocery store. She requested that
A: Payment in a place other than the workplace shall be her wages be in the form of grocery items. May Anna's employer
permissible only under the following circumstances: accommodate her request?
(a) When payment cannot be effected at or near the place of A: No. Her request cannot be accommodated. Payment of
work by reason of the deterioration of peace and order wages should be only through legal tender. Even if expressly
conditions, or by reason of actual or impending requested by the employee, the employer cannot substitute the
emergencies caused by fire, flood, epidemic or other payment of wages to other items.371
calamity rendering payment thereat impossible;
4. Prohibitions Regarding Wages - Labor Code, Arts. 112-
(b) When the employer provides free transportation to the 119; DOLE L.A. No. 11-14
employees back and forth; and
Q: When may an employer make deductions from the wages
(c) Under any other analogous circumstances; Provided, of the employees?
that the time spent by the employees in collecting their
wages shall be considered as compensable hours worked; A: Deductions from the wages of the employees may be made
by the employer in any of the following instances:
(d) No employer shall pay his employees in any bar, night
or day club, drinking establishment, massage clinic, 1. When the deductions are authorized by law, including
dance hall, or other similar places or in places where deductions for the insurance premiums advanced by the
games are played with stakes of money or things employer on behalf of the employee as well as union
representing money except in the case of persons dues where the right to check-off has been recognized by
employed in said places. the employer or authorized in writing by the individual
employee himself.
Q: If an employee dies, to whom should his/her wages
2. When the deductions are with the written authorization
be paid?
of the employees for payment to the third person and the
A: The payment of the wages of a deceased employee shall be employer agrees to do so; Provided, That the latter does
made to his heirs without the necessity of intestate proceedings.
When the heirs are of age, they shall execute an affidavit
attesting to their relationship to the deceased and the fact that
370 Omnibus Rules Implementing the Labor Code, Book III, Rule VIII, Sec. 6
369 Labor Code, Art. 104 371 Labor Code, Art. 102.
ON LABOR LAW
not receive any pecuniary benefit, directly or indirectly, let her have one half of Robert's pay every payday to ensure
from the transaction.372 that her children would at least have food on the table. To
support her plea, Wanda presented a Kasulatan signed by
Q: May an employer withhold wages of employees? Robert giving her one half of his salary, on the condition
that she would not complain if he stayed with his mistress
A: No. Article 116 of the Labor Code provides that it shall be
unlawful for any person, directly or indirectly, to withhold any on weekends.
amount from the wages of a worker or induce him to give up any If you were the Manager, would you release one half of
part of his wages by force, stealth, intimidation, threat or by any Robert's salary to Wanda?
other means whatsoever without the worker's consent.
(a) No, because an employer is prohibited from interfering
Q: Can an employer deduct from the wages of his employees with the freedom of its employees to dispose of their
the cost of damage on tools, materials or equipment supplied wages.
by the employer?
(b) Yes, because of Robert's signed authorization to give
A: Yes, but only for private security agencies. Further, the Wanda one half of his salary.
following conditions must be observed:
(c) No, because there is no written authorization for
a. The employee concerned is clearly shown to be ABC Company to release Robert's salary to Wanda.
responsible for the loss or damage;
(d) Yes, because it is Robert's duty to financially support
b. The employee is given reasonable opportunity to show his minor children.
cause why deductions should not be made;
(e) No, because Robert's Kasulatan is based on an illegal
c. The amount of such deduction is fair and reasonable and consideration and is of doubtful legal validity.s"
shall not exceed the actual loss or damage; and
A: (a) No, because an employer is prohibited from interfering
d. The deduction from the wages of the employee does not with the freedom of its employees to dispose of their wages.
exceed 20% of the employee's wages in a week.'"
No employer shall limit or otherwise interfere with the freedom
Q: Robert, an employee of ABC Company, is married to of any employee to dispose of his wages.375
Wanda. One day, Wanda visited the company office with her
three (3) emancipated minor children, and narrated to the Q: A worked as a roomboy in La Mallorca Hotel. He sued
Manager that Robert had been squandering his earnings on for underpayment of wages before the NLRC, alleging that
his mistress, leaving only a paltry sum for the support of he was paid below the minimum wage. The employer denied
their children. Wanda tearfully pleaded with the Manager to any underpayment, arguing that based on long standing,
unwritten policy, the Hotel provided food and lodging to its
Omnibus Rules Implementing the Labor Code, Book III, Rule VIII, Sec. 13.
372 BAR 2013.
374
373Non-Interference in the Disposal of Wages and Allowable Deductions, DOLE Labor Code, Art. 112; Omnibus Rules Implementing the Labor Code, Book III,
375
Labor Advisor), No. 11-2014, Sec. 3. Rule VIII, Sec. 12.

ON LABOR LAW
housekeeping employees, the costs of which were partly shouldered would you give and what action would you take on behalf of
by it and the balance was charged to the employees. The the employees?'"
employees' corresponding share in the costs was thus deducted
A: I will advise the employees to file a complaint against the
from their wages. The employer concluded that such valid
company for illegal deductions.
deduction naturally resulted in the payment of wages below
the prescribed minimum. Deductions may only be made by the employer in the following
cases: (a) in cases where the worker is insured with his consent
If you were the Labor Arbiter, how would you rule? Explain.'
by the employer, and the deduction is to recompense the
A: I will rule in favor of A. employer for the amount paid by him as premium on the
insurance; (b) for union dues, in cases where the right of the
Even if food and lodging were provided and considered as facilities worker or his union to check-off has been recognized by the
by the employer, the employer could not deduct such facilities employer or authorized in writing by the individual worker
from its workers' wages without compliance with law.377 concerned; and (c) in cases where the employer is authorized by
law or regulations issued by the Secretary of Labor.
In Mabeza v. NLRC,378 the Supreme Court held that the employer
simply cannot deduct the value from the employee's wages In the case at hand, the deduction is for a special assessment and
without satisfying the following: (a) proof that such facilities are not for union dues, hence, the deduction is illegal.'"
customarily furnished by the trade; (b) the provision of deductible
facilities is voluntarily accepted in writing by the employee; and Q: Which of the following is not a valid wage deduction?"'
(c) the facilities are charged at fair and reasonable value.
(a) Where the worker was insured with his consent by
Q: In accordance with the provisions of the collective bargaining the employer, and the deduction is allowed to recompense
agreement, the Republic Labor Union (RLU) submitted to the the employer for the amount paid by him as the
Zenith Drug Company a union board resolution authorizing premium of the insurance.
the deduction from the wage of each of the union's two
(b) When the wage is subject of execution or attachment,
thousand members a special assessment in the sum of twenty
but only for debts incurred for food, shelter, clothing
pesos to help pay for the expenses of the RLU president
and medical attendance;
during his observation tour of New Zealand.
(c) Payment for lost or damaged equipment provided the
When the company honored the authorization and implemented
deduction does not exceed 25% of the employee's
the deductions, more than a thousand of the employees
salary for a week;
complained and sought your assistance. What legal advice
(d) Union dues.
376 BAR 2010. 379 BAR 1987.

380
377 Mayon Hotel & Restaurant, et al. v. Adana, et al., G.R. No. 157634, 16 May 2005. Labor Code, Art. 112,
381
378 G.R. No. 118506, 18 April 1997.
ON LABOR LAW
A: (c) Payment for lost or damaged equipment provided the through the grievance procedure under their collective bargaining
deduction does not exceed 25% of the employee's salary for agreement and, if it remains unresolved, through voluntary
a week.382 arbitration. Unless otherwise agreed by the parties in writing, such
dispute shall be decided by the voluntary arbitrator or panel of
5. Wage Distortion - Labor Code, Art. 124 voluntary arbitrators within ten (10) calendar days from the time
said dispute was referred to voluntary arbitration.
Q: What is wage distortion? Can a labor union invoke wage
distortion as a valid ground to go on strike? Explain.'" In cases where there are no collective agreements or recognized
labor unions, the employers and workers shall endeavor to correct
A: Wage distortion refers to a situation where an increase in the such distortions. Any dispute arising therefrom shall be settled
prescribed wage rates results in the elimination or severe contraction through the NCMB and, if it remains unresolved after ten (10)
of intentional quantitative differences in wage or salary rates calendar days of conciliation, shall be referred to the appropriate
between and among employee groups in an establishment as to branch of the NLRC. It shall be mandatory for the NLRC to conduct
effectively obliterate the distinctions embodied in such wage continuous hearings and decide the dispute within twenty (20) calendar
structure based on skills, length of service and other logical days from the time said dispute is submitted for compulsory arbitration.
bases of differentiation.'"
Q: Visayan International Container Terminal Services, Inc.
A labor union cannot invoke wage distortion as a valid ground to Labor-Union Federation of Democratic Labor Organization
stage a strike because Article 124 of the Labor Code provides for is a labor union which filed a case before the Appointed
a specific method or procedure for correcting wage distortion, Voluntary Arbitrator (AVA) against Company Z because the
which does not include strikes. latter promoted some of the union's members to higher
positions but they did not receive same salary rate as those
Furthermore, in Ilaw at Buklod ng Manggagawa v. National received by employees occupying the same position. The
Labor Relations Commission,'" the Supreme Court held that union argued that promoted employees should be entitled to
joint or coordinated activities may be forbidden or restricted by law receive the highest rate of salary for the respective position to
or contract. For the particular instance of "distortions of the wage which they are promoted pursuant to the principle of equal
structure within an establishment" resulting from the application of
pay for equal work.
any prescribed wage increase by virtue of a law or wage order,
Section 3 of R.A. No. 6727 prescribes a specific, detailed and On the other hand, Company Z contended that a promoted
comprehensive procedure for the correction thereof, thereby employee shall receive the entry salary rate of the job to
implicitly excluding strikes or lockouts or other concerted activities which he has been promoted, and not the highest salary rate
as modes of settlement of the issue. The provision states that — given to an employee already holding the same position, and
. . . the employer and the union shall negotiate to correct the distort- that some employees are also entitled to a higher salary rate
ions. Any dispute arising from wage distortions shall be resolved due to several factors, such as length of service, performance,
and merit awarded to select employees who have performed
outstandingly. Is there a wage distortion?
382 Omnibus Rules Implementing the Labor Code, Book III, Rule VIII, Sec. 13.
383 BAR 2009.
A: No. Under R.A. No. 6727, otherwise known as the "Wage
384 Labor Code, Art. 124. Rationalization Act," the term wage distortion was explicitly
385 G.R. No. 91980, 27 June 1991.
ON LABOR LAW
defined a situation where an increase in prescribed wage rates Q: What procedural remedies are open to workers who seek
results in the elimination or severe contraction of intentional correction of wage distortion?3S7
quantitative difference in wage or salary rate between and among
A: The procedural remedies of wage distortion disputes are
employee groups in an establishment as to effectively obliterate
provided in Article 124 of the Labor Code, as follows:
the distinctions embodied in such wage structure based on skills,
length of service or other logical bases of differentiation. As For organized establishments — the dispute shall be resolved
such, it only covers wage adjustments and increases due to a through the grievance procedure under collective bargaining
prescribed law or wage order. agreement, and if it remains unresolved, through voluntary arbitration.
Evidently, wage distortion under Article 124 of the Labor Code For unorganized establishments — the employer and workers,
covers wage adjustments and increases due to a prescribed law with the aid of the NCMB shall endeavor to correct the wage
or wage order. It does not cover, however, increases in salaries distortion, and if they fail, to submit the issue to the appropriate
initiated by the employer at its own instance. Thus, not all branch of the NLRC for compulsory arbitration.
increases in salary which lessen or obliterate the salary
differences of certain employees should be perceived as wage Q: How should a wage distortion be resolved: (1) in case there
distortion as defined under Article 124 of the Labor Code. is a collective bargaining agreement; and (2) in case there is
Further, a disparity in wages between employees holding similar none? Explain briefly.388
positions but in different regions does not constitute wage
A: Under Article 124 of the Labor Code, in case there is a
distortion as contemplated by law.
collective bargaining agreement, a dispute arising from wage
Here, the apparent increase in the senior employees' salaries as distortions shall be resolved through the grievance machinery
compared with those of the other employees who have the same provided in the CBA, and if remains unresolved, through voluntary
position but were only recently promoted, is not legal wage arbitration. In case there is no collective bargaining agreement
distortion under Article 124 of the Labor Code since it did not the employers and workers shall endeavor to correct such distortions.
result from wage adjustments due to a prescribed law or wage Any dispute arising therefrom shall be settled through the NCMB
order. Rather, the wage increase was pursuant to the promotions and if it remains unresolved after ten calendar days of
given by petitioner to respondents, which resulted in wage conciliations, then the dispute is referred to the appropriate branch of
differences between employees occupying the same position, and the NLRC.'"
can only be considered as factual wage distortion, not covered by
Article 124 of the Labor Code.'" Q: Which is not a procedural requirement for the correction
of wage distortion in an unorganized establishment?
(a) Both employer and employee will attempt to correct
the distortion;
386 Mindanao International Container Terminal Services Inc., v. Mindanao 387 BAR 2009.
International Container Terminal Services, Inc. Labor-Union-Federation of 388 BAR 2002.
Democratic Labor Organization, G.R. No. 245918, 29 November 2022. 389 Labor Code, Art. 124.
ON LABOR LAW
(b) Settlement of the dispute through National Conciliation 2. A significant change in the salary rate of a lower pay
and Mediation Board (NCMB); class without a concomitant increase in the salary rate of
a higher one;
(c) Settlement of the dispute through voluntary arbitration
in case of failure to resolve dispute through CBA 3. The elimination of the distinction between the two
dispute mechanism; 390 levels; and
A: (c) Settlement of the dispute through voluntary arbitration in 4. The existence of the distortion in the same region of the
case of failure to resolve dispute through CBA dispute mechanism."' country.395
Q: In what instances do labor arbiters have jurisdiction over 6. Minimum Wage - Labor Code, Art. 99; Omnibus Rules
wage distortion cases? Implementing the Labor Code, Book III, Rule VII, Secs.
7.9 and 15
(a) When jurisdiction is invoked by the employer and
employees in organized establishments; Q: What is minimum wage?
(b) When the case is unresolved by Grievance Committee; A: Minimum wage refers to basic cash wages without deducting
therefrom whatever benefits, supplements or allowances which the
(c) After the panel of voluntarily arbitrators has made a
employees enjoy free of charge aside from the basic pay.396
decision and the same is contested by either party;
(d) In unorganized establishments when the same is not Q: What is statutory minimum wage?
voluntarily resolved by the parties before the NCMB 392 A: Statutory minimum wage refers the lowest wage fixed by law
A: (d) In unorganized establishments when the same is not that an employer can pay his workers."'
voluntarily resolved by the parties before the NCMB.393
Q: What is regional minimum wage?
Q: What are the four elements of wage distortion? A: Regional minimum wage is the lowest basic wage rates that
A: Prubankers Association v. Prudential Bank and Trust Company' an employer can pay his workers, as fixed by the Regional
laid down the four elements of wage distortion, to wit: Tripartite Wages and Productivity Boards (RTWPBs), and which
shall not be lower than the applicable statutory minimum
1. An existing hierarchy of positions with corresponding wage rates.398
salary rates;
390 BAR 2012. 395 Philippine Geothermal Union v. Chevron Geothermal Phil Holdings, Inc, G.R.
391 Labor Code, Art. 124. No. 207252, 24 January 2018.
392 BAR 2012. 396 DOLE D.O. No. 126-2013.
393 Labor Code, Art. 124. 397 Omnibus Rules Implementing the Labor Code, Book III, Rule VII, Sec. 1.
394 G.R. No. 131247, 25 January 1999. 398 Labor Code, Art. 99, as amended by R.A. No. 6727.
ON LABOR LAW
Q: What is the current minimum wage in Metro Manila? A: No, because the NWPC exercises only technical and
administrative supervision over the RTWPB."'
A: The daily minimum wage rates in Metro Manila effective June
16, 2023 are as follows: (b) The law mandates that no petition for wage increase shall
be entertained within a period of 12 months from the
1. Non-agriculture sector - P610 effectivity of the wage order. Under what circumstances
2. Agriculture - P573 may the Kilusang Walang Takot, a federation of labor
organizations that publicly and openly assails the wage
3. Service and retail establishments employing 15 workers order as blatantly unjust, initiate the review of the wage
or less - P573 increases under the wage order without waiting for the
end of the 12-month period? Explain your answer.402
4. Manufacturing sectors regularly employing less than 10
workers - P573399 A: The federation may initiate a review of the wage order even
before the expiration of the twelve (12)-month period when there
Q: The following are exempt from the rules on minimum are supervening conditions, such as extraordinary increase in
wages, except: prices of petroleum products and basic goods/services which
(a) Household or domestic helpers; demand a review of minimum wage rates as determined by the
Board and confirmed by the Commission."'
(b) Homeworkers engaged in needle work;
C. Leaves
(c) Workers' in duly registered establishment in the
cottage industry; 1. Service Incentive Leaves - Labor Code, Art. 95; Omnibus
Rules Implementing the Labor Code, Book III, Rule V,
(d) Workers in the duly registered cooperative. 400 Secs. 1-6
A: (c) Workers' in duly registered establishment in the cottage
Q: What is service incentive leave?
industry;
A: Service incentive leave is a five (5)-day leave with pay
Q: The Regional Tripartite Wages and Productivity Board granted to covered employees who may use them anytime they
(RTWPB) for Region 3 issued a wage order on November 2, may want to take a leave of absence."'
2017 fixing the minimum wages for all industries throughout
Region 3.
(a) Is the wage order subject to the approval of the National

Wages and Productivity Commission before it takes effect?
401 Labor Code, Art. 121 (g).

4°2 BAR 2017.
403 National
399 Wage Order No. NCR-24, Regional Tripartite Wages and Productivity Board — Wages and Productivity Commission Rules of Procedure on Minimum
NCR, 26 June 2023. Wage Fixing, Rule IV, Sec. 3.
400 4°4 Labor Code, Art. 95 (a).
BAR 2012.
ON LABOR LAW ai
51
Q: Who are the covered employees? broken reckoned from the date the employee started working,
including authorized absences and paid regular holidays unless
A: Every employee who has rendered at least one year of the working days in the establishment as a matter of practice or
service shall be entitled to a yearly service incentive leave of five policy, or that provided in the employment contract, is less than
days with pay."' twelve (12) months, in which case said period shall be
considered as one (1) year for the purpose of determining the
Q: Who are exempted from the coverage?
entitlement to the service incentive leave.40'
A: Service incentive leave applies to all employees except the
following: Q: Can an employee convert his/her service incentive leave
credits?
1. Government employees, whether employed by the National
Government or any of its political subdivisions, including A: Yes. The employee may choose to either use his/her leave
those employed in government-owned and/or controlled credits or commute it to its monetary equivalent if not exhausted
corporations with original charters or created under at the end of the year.
special laws; If the employee does not use or commute the service incentive
2. Persons in the personal service of another; leave, he/she is entitled upon his/her resignation or separation
from work to the commutation of the same.408
3. Managerial employees and officers or members of a
managerial staff; Q: Which of the following grounds exempts an enterprise
from the service incentive leave law?
4. Field personnel and those whose time and performance
is unsupervised by the employer; (a) The employees already enjoy fifteen (15) days vacation
leave with pay.
5. Those already enjoying this benefit;
(b) The employer's business has been suffering losses in
6. Those enjoying vacation leave with pay of at least five the past three (3) years.
(5) days; and
(c) The employer regularly employs seven (7) employees
7. Those employed in establishments regularly employing or less.
less than ten (10) employees.406
(d) The company is located in a special economic zone.409
Q: What does "at least one (1) year of service" mean?
A: (a) The employees already enjoy fifteen (15) days vacation
A: The term "at least one (1) year service" shall mean service leave with pay.0.10
for not less than twelve (12) months, whether continuous or
405 Id. Omnibus Rules Implementing the Labor Code, Book

4°7 Rule V, Sec. 3.
406 408
Omnibus Rules Implementing the Labor Code, Book III, Rule V, Sec. 1; DOLE- Auto Bus Transport System, Inc. v. Bautista, G.R. No. 156367, 16 May 2005
409
Bureau of Working Conditions Handbook on Workers' Stautory Monetary Benefits. BAR 2011.
ON LABOR LAW
Q: If not used by the end of the year, the service incentive Q: The members of the administrative staff of Zeta, a
leave shall be41 construction company, enjoy ten (10) days of vacation leave
with pay and ten (10) days of sick leave with pay, annually.
(a) Carried over to the next year. The workers' union, Bukluran, demands that Zeta grant its
workers service incentive leave of five (5) days in compliance
(b) Converted to its money equivalent.
with the Labor Code.
(c) Forfeited.
Is the union demand meritorious?
(d) Converted to cash and paid when the employee resigns
or retires. (a) Yes, because non-compliance with the law will result
in the diminution of employee benefits.
A: (b) Converted to its money equivalent.412
(b) Yes, because service incentive leave is a benefit expressly
Q: Which type of employee is entitled to a service incentive leave? provided under and required by the Labor Code.
(a) Managerial employees; (c) No, because Zeta already complies with the law.
(b) Field personnel; (d) No, because service incentive leave is a Labor Code
benefit that does not apply in the construction industry.
(c) Government workers;
(e) Yes, because Labor Code benefits are separate from
(d) Part-time workers.' those voluntarily granted by the company.4'S
A: (d) Part-time workers.4'4 A: (c) No, because Zeta is already compliant with the law.
Q: Are domestic helpers or kasainbahays entitled to service Service incentive leave shall not be demandable when the
incentive leave? employees are already enjoying this benefit or the benefit of
vacation leave with pay of at least five days.416
A: Yes. Under Section 29 of R.A. No. 10361, a domestic
worker who has rendered at least one (1) year of service shall be Q: A, a driver for a bus company, sued his employer for
entitled to an annual service incentive leave of five (5) days with non-payment of commutable service incentive leave credits
pay. However, any unused portion of said annual leave shall not upon his resignation after five years of employment. The bus
be cumulative or carried over to the succeeding years. Unused company argued that A was not entitled to service incentive
leaves shall not be convertible to cash. leave since he was considered a field personnel and was paid
on commission basis and that, in any event, his claim had
410 Labor Code, Art. 95; Omnibus Rules Implementing the Labor Code, Book III,
Rule V, Sec. 1(f).
41 1 BAR 2011.
412 Omnibus Rules Implementing the Labor Code, Book III, Rule V, Sec. 5.
413 BAR 2012. 415 BAR 2013.
414 Omnibus Rules Implementing the Labor Code, Book III, Rule V, Sec. 1. 416 Labor Code, Art. 95.
ON LABOR LAW
prescribed. If you were the Labor Arbiter, how would you Q: What is the period of leave?
rule? Explain.'"
A: Under R.A. No. 11210 otherwise known as the "105-Day
A: I will grant the prayer of A. Expanded Maternity Leave Law," the maternity leave benefit
shall be for one hundred five (105) days with full pay, and
Payment on commission basis alone does not prove that A is a additional fifteen (15) days with full pay in case the female
field personnel. There must be proof that A is left to perform his employee qualifies as a solo parent under R.A. No. 8972, or the
work unsupervised by his employer. Otherwise, he is not a field "Solo Parents' Welfare Act of 2000." In case of miscarriage or
personnel, thus entitled to commutable service incentive leave emergency termination of pregnancy, the maternity leave shall
(SIL) credits.' be for sixty (60) days with full pay.
His action has not yet prescribed. In Auto Bus v. Bautista,419 the In cases of live childbirth, an additional maternity leave of thirty
Supreme Court recognized that SIL is such a unique labor (30) days without pay, can be availed of, at the option of the
standard benefit, because it is commutable. An employee may female employee, provided that the employer shall be given
claim his accrued SIL throughout the years of his service with due notice.'
the company upon his resignation, retirement, or termination.
Therefore, when A resigned after five years, his right of action to Q: What is the number of pregnancy or miscarriage covered
claim ALL of his SIL benefits accrued at the time when the by the law?
employer refused to pay him his rightful SIL benefits."'
A: The Implementing Rules and Regulations of R.A. No. 11210
2. Leaves under Special Laws provide that maternity leave benefit shall be granted in every
instance of pregnancy, miscarriage or emergency termination of
a. Expanded Maternity Leave - R.A. No. 8282, as amended pregnancy regardless of frequency.
by R.A. No. 11210
Under the old law (R.A. No. 8282), maternity benefit is paid
Q: Who are entitled to maternity leave? only for the first four deliveries."'
A: All covered female workers in government and the private Q: Is maternity leave applicable only to married women?
sector, including those in the informal economy, regardless of
civil status or the legitimacy of her child."' A: No, maternity leave can be availed of regardless of the civil
status of the woman who gave birth or suffered miscarriage or
emergency termination of pregnancy.424
417 BAR 2010.

418 Auto Bus Transport Systems, Inc. v. Bautista, G.R. No. 156367, 16 May 2005
419 Id. 422 R.A. 112010, Sec. 3.
420
Labor Code, Art. 291. 423 IRR of RA 112010, Sec. 4
421 R.A. No. 112010, Sec. 3. 424 R.A. 112010, Sec. 3.
ON LABOR LAW
Q: Can a female employee who was terminated or who preceding the semester of her childbirth, otherwise; she is not
resigned from employment avail of maternity leave? entitled to the benefit."'
A: Yes, a female employee can avail of maternity leave if the Q: May the rule on maternity leave can suppletorily applied
live childbirth, miscarriage, or emergency termination of to the special leave benefit under R.A. No. 9710?
pregnancy occurs not more than fifteen (15) calendar days after
the termination of her employment. Such period is not applicable A: Yes. The spirit and intent of R.A. No. 9710 is in accord with
when the employment of the pregnant worker has been the suppletory application of the rule on maternity leave to the
terminated without just cause, in which case the employer will special leave benefit. Similar to the special leave benefit under
pay her the full amount equivalent to her salary for one hundred R.A. No. 9710, a maternity leave under the Omnibus Rules on
five (105) days for childbirth and sixty (60) days for miscarriage Leave seeks to protect the health and welfare of women,
or emergency termination of pregnancy based on her full pay, in specifically of working mothers, as its primary purpose is to
addition to the other applicable daily cash maternity benefits that afford them some measures of financial aid, and to grant them
she should have received had her employment not been illegally a period of rest and recuperation in connection with their
terminated.425 pregnancie s.4"
Q: Mans Weto had been an employee of Nopolt Assurance b. Paternity Leave - R.A. No. 8187, as amended by R.A. No.
Company for the last ten (10) years. His wife of six (6) years 11210
died last year. They had four (4) children. He then fell in love
Q: What is paternity leave?
with Jovy, his co-employee and they got married.
A: Paternity leave refers to the leave credits granted to a
In October this year, Weto's new wife is expected to give
married male employee to allow him to earn compensation for
birth to her first child. He has accordingly filed his application
seven (7) working days without reporting for work, provided that
for paternity leave, conformably with the provisions of the
his spouse has delivered a child or had a miscarriage or an
Paternity Leave Law which took effect in 1996. The HRD
abortion for the purpose of lending support to his wife during her
manager of the assurance firm denied his application, on the
period of recovery and/or the nursing of the newly born child.429
ground that Weto had already used up his entitlement under
that law. Weto argued that he has a new wife who will be Q: Who are entitled to paternity leave?
giving birth for the first time, therefore, his entitlement to
paternity leave benefits would begin to run anew. x x x A: Every married male employee in the private sector, regardless
of their employment status (e.g., probationary, regular, contractual,
Is Jovy entitled to maternity leave benefits?' project basis). The purpose of this benefit is to allow the husband
A: Yes, if Jovy, as a female employee, has paid at least three (3) to lend support to his wife during her period of recovery and/or
monthly contributions in the twelve (12)-month period immediately in nursing her newborn child.
427 R.A. No. 11210, Sec. 5.

428 House of Representatives Electoral Tribunal v. Panga-Vega, G.R. No. 228236,
425 27 January 2021.
Implementing Rules and Regulations of R.A. No. 11210, Rule IV, Sec. 5.
426 BAR 2005. 429 R.A. No. 8187, Sec. 3.
ON LABOR LAW
Government employees are also entitled to the paternity leave Q: Which of the following is not a requisite for entitlement
benefit. They shall be governed by the Civil Service Rules.470 to paternity leave?
Q: How many times may a male employee go on paternity leave? (a) The employee is cohabiting with his wife when she
gave birth or had a miscarriage.
A: Paternity leave benefit shall apply to the first four (4)
deliveries of the employee's lawful wife with whom he is (b) The employee is a regular or permanent employee.
cohabiting. For this purpose, "cohabiting" means the obligation
(c) The wife has given birth or suffered a miscarriage.
of the husband and wife to live together.43'
(d) The employee is lawfully married to his wife."'
Q: Is paternity leave benefit convertible to cash?
A: (b) The employee is a regular or permanent employee.
A: In the event that the paternity leave is not availed of, it shall
not be convertible to cash and shall not be cumulative."' Q: Mans Weto had been an employee of Nopolt Assurance
Company for the last ten (10) years. His wife of six (6) years
Q: To avail himself of paternity leave with pay, when must died last year. They had four (4) children. He then fell in love
the male employee file his application for leave? with Jovy, his co-employee and they got married.
(a) Within one week from the expected date of delivery In October this year, Weto's new wife is expected to give
by the wife. birth to her first child. He has accordingly filed his application
(b) Not later than one week after his wife's delivery or for paternity leave, conformably with the provisions of the
miscarriage Paternity Leave Law which took effect in 1996. The HRD
manager of the assurance firm denied his application, on the
(c) Within a reasonable time from the expected delivery ground that Weto had already used up his entitlement under
date of his wife. that law. Weto argued that he has a new wife who will be
giving birth for the first time, therefore, his entitlement to
(d) When a physician has already ascertained the date
paternity leave benefits would begin to run anew.
the wife will give birth.433
Whose contention is correct, Weto or the HRD manager?436
A: (c) Within a reasonable time from the expected delivery date
of his wife."' A: The contention of Weto is correct. The law provides that
every married male is entitled to a paternity leave of seven (7)
days for the first four (4) deliveries of the legitimate spouse with
whom he is cohabiting (Section 2, R.A. No. 6187). Jovy is
Weto's legitimate spouse with whom he is cohabiting. The fact
430 R.A. No. 8187, Sec. 2; Implementing Rules and Regulations of R.A. No. 8187,
Sec. 2; Department of Labor and Employment-Bureau of Working Conditions that Jovy is Weto's second wife and that Weto already has four
Handbook on Workers' Statutory Monetary Benefits.
"' Id.
432
Implementing Rules and Regulations of R.A. No. 8781, Sec. 7.
433 BAR 2011. 435 BAR 2011.
434
Implementing Rules and Regulations of R.A. No. 8781, Sec. 4. 436 BAR 2005.
ON LABOR LAW
(4) children with his first wife is besides the point. The child is What can Roger, Tammy's second husband and the father of
Weto's first with Jovy, and thus is covered by the paternity leave her two (2) younger children claim as benefits under the
benefit. The law did not distinguish and we should therefore not circumstances?439
distinguish.
A: Under R.A. No. 8187, Roger can claim paternity leave of
The paternity leave was intended to enable the husband to seven (7) days with full pay if he is lawfully married to Tammy
effectively lend support to his wife in her period of recovery and cohabiting with her at the time of the miscarriage."'
and/or in the nursing of the newly born child. To deny Weto this
benefit would be to defeat the rationale for the law."' Q: H files for a seven (7)-day paternity leave for the purpose
of lending support for his wife, W, who suffered a miscarriage
Q: How many times may a male employee go on Paternity through intentional abortion. W also filed for maternity
Leave? Can he avail himself of this benefit, for example, 50 leave for five (5) weeks. H and W are legally married but the
days after the first delivery by his wife? latter is with her parents, which is a few blocks away
from house. Which of the following statements is the
A: A male employee may go on paternity Leave up to four (4) most accurate?
children."'
(a) Paternity leave shall be denied because it does not
The male employee can avail himself of this benefit fifty (50) cover aborted babies;
days after the first delivery by his wife in accordance with
Section 5 of the Rules Implementing Paternity Leave Act, which (b) Paternity leave shall be denied because W is with
provides that the availment should not be later than sixty (60) her parents;
days after the date of delivery.
(c) Maternity leave shall be denied because it does not
Q: Because of the stress of caring for her four (4) growing cover aborted babies;
children, Tammy suffered a miscarriage late in her pregnancy
(d) Maternity leave shall be denied because grant of
and had to undergo an operation. In the course of the
paternity leave bars claim for maternity leave."'
operation, her obstetrician further discovered a suspicious-
looking mass that required the subsequent removal of her A: (b) Paternity leave shall be denied because W is living with
uterus (hysterectomy). After surgery, her physician advised her parents;442
Tammy to be on full bed rest for six (6) weeks. Meanwhile,
the biopsy of the sample tissue taken from the mass in Tammy's
uterus showed a beginning malignancy that required an immediate
series of chemotherapy once a week for four (4) weeks.
439 BAR 2013.

44° R.A. No. 8187, Sec. 3; IRR of RA. 8187, Sec. 3
441 BAR 2012.
437 R.A. No. 8187, Sec. 3.. 442 R.A. No. 8187, Sec. 2; Implementing Rules and Regulations of R.A. No. 8781,
438 R.A. No. 8187, Sec. 2.. Sec. 2.
ON LABOR LAW
c. Solo Parent Leave - R.A. No. 8972, as amended by R.A. 6. Declaration of nullity or annulment of marriage as decreed
No. 11861 by a court or by a church: Provided, that he/she is
entrusted with the custody of the children;
Q: What is the solo parent leave?
7. Abandonment of spouse for at least one (1) year;
A: Solo parent leave is a leave benefit granted to a solo parent
to enable him/her to perfoiin parental duties and responsibilities 8. Unmarried father/mother who has preferred to keep and
where physical presence is required."' It is a forfeitable and rear his/her child/children, instead of having others care
noncumulative parental leave of not more than seven (7) for them or give them up to a welfare institution;
working days with pay every year which shall be granted to any
9. Any other person who solely provides parental care and
solo parent employee, regardless of employment status, who has
support to a child or children: Provided, that he/she is duly
rendered service of at least six (6) months: Provided, That the
licensed as a foster parent by the Department of Social
parental leave benefit may be availed of by the solo parent
Welfare and Development (DSWD) or duly appointed
employees in the government and the private sector.444
legal guardian by the court; and
Q: Give the categories of a solo parent? 10.Any family member who assumes the responsibility of
A: Any solo parent or individual who is left alone with the head of family as a result of the death, abandonment,
responsibility of parenthood due to: disappearance, or prolonged absence of the parents or solo
parent: Provided, that such abandonment, disappearance,
1. Giving birth as a result of rape or, as used by the law, or prolonged absence lasts for at least one (1) year."'
other crimes against chastity;
Q: How many days of leave is a solo parent entitled to?
2. Death of spouse;
A: Solo parents are entitled to seven (7) working days with pay
3. Spouse is detained or is serving sentence for a criminal regardless of employment status provided that he/she has
conviction for at least one (1) year; rendered service of at least six (6) months. The same are
forfeitable and non-cumulative.446
4. Physical and/or mental incapacity of spouse as certified by
a public medical practitioner; d. Gynecological Leave - R.A. No. 9710
5. Legal separation or de facto separation from spouse for at
Q: What kind of leave is granted under the Magna Carta
least one (1) year: Provided that he/she is entrusted with
of Women?
the custody of the children;
445 R.A. No. 8792, Sec. 4, as amended by R.A. No. 11861; Department of Labor and
Employment-Bureau of Working Conditions Handbook on Workers' Statutory
Monetary Benefits.
446 R.A. No. 8792, Sec. 8, as amended by R.A. No. 11861; Department of Labor and
443 R.A. No. 8792, Sec. 3, as amended by R.A. No. 11861 Employment-Bureau of Working Conditions Handbook on Workers' Statutory
444 R.A. No. 8792, Sec. 7, as amended by R.A. No. 11861 Monetary Benefits.
ON LABOR LAW
A: A special leave of two (2) months with full pay based on the A: No. R.A. No. 9710 and the CSC Guidelines on the
gross monthly compensation is given to covered female employees Availment of the Special Leave Benefits for Women Under RA
who have undergone surgery due to gynecological disorder."' No. 9710 (CSC Guidelines) do not require that the entire special
leave applied for be consumed, certain conditions must be
Q: What are the conditions for a female employee to be satisfied for its propriety.
entitled to a special leave under the Magna Carta of Women?
Under the CSC Guidelines, a total hysterectomy is classified as a
A: The following are the conditions for entitlement: major surgical procedure requiring a minimum period of
1. She has rendered at least six (6) months continuous recuperation of three (3) weeks to a maximum period of two (2)
months. Aside from observing this time frame, the employee,
aggregate employment service for the last twelve (12)
before she can return to work, shall present a medical certificate
months prior to surgery;
signed by her attending surgeon that she is physically fit to
2. She has filed an application for special leave with her assume the duties of her position. As it appears, MMD was
employer within a reasonable period of time from the already able to observe a period of recuperation of four (4)
expected date of surgery or within such period as may be weeks and to present a medical certificate attesting her physical
provided by company rules and regulations or collective fitness to report back for work."'
bargaining agreement; and
e. Battered Woman Leave - R.A. No. 9262
3. She has undergone surgery due to gynecological disorders
as certified by a competent physician."' Q: What kind of leave is granted to female employees under
the Anti-Violence Against Women and their Children Act?
Q: Michelle Marquez Dy or MMD, secretary of HRET,
requested to avail of the special benefit leave under the A: In addition to other paid leaves under existing labor laws,
Magna Carta of Women to undergo total hysterectomy. company policies, and/or collective bargaining agreements, the
HRET approved her request for special leave not exceeding qualified victim-employee shall be entitled to a special leave of
two (2) months. Only after a month, MMD informed HRET up to ten (10) days with full pay, consisting of basic salary and
that she was reassuming her duties and functions where mandatory allowances fixed by the Regional Wage Board, if any.
she presented a medical certificate declaring that she is fit The said leave shall be extended when the need arises, as specified
to work. in the protection order issued by the barangay or the court."'
HRET refused and advised MMD that she needs to consume
her entire two months special leave.
Is the HRET correct?
449 House of Representatives Electoral Tribunal v. Panga-Vega, G.R. No. 228236,

447 R.A. No. 9710, Chapter IV, Sec. 18. 27 January 2021.
448 DOLE Order No. 112-11, Series of 2011 459 R.A. No. 9262, Sec. 43.
ON LABOR LAW
Q: What are the requirements for a female employee to be A: By regulations issued by the Secretary of Labor, the
entitled to a special leave under the Anti-Violence Against employer is required to:
Women and their Children Act?
(a) Provide seats proper for women and permit them to use
A: To be entitled to the leave benefit, the only requirement is for such seats when they are free from work and during
the victim-employee to present to her employer a certification working hours, provided they can perform their duties in
from the barangay chairman (punong barangay) or barangay councilor this position without detriment to efficiency;
(barangay kagawad) or prosecutor or the Clerk of Court, as the
case may be, that an action relative to the matter is pending.45' (b) To establish separate toilet rooms and lavatories for men
and women and provide at least a dressing room for
Q: Melissa, a coffee shop worker of 5 months, requested her women;
employer for 5 days' leave with pay to attend to the case that
(c) To establish a nursery in a workplace for the benefit of
she filed against her husband for physical assault two weeks
the women employees therein; and
earlier. May the employer deny her request for leave with pay?
(d) To determine appropriate minimum age and other standards
(a) Yes, the reason being purely personal, approval depends
for retirement or termination in special occupations such
on the employer's discretion and is without pay.
as those of flight attendants and the like."'
(b) No, as victim of physical violence of her husband, she
is entitled to five days paid leave to attend to her Q: Are employers required to provide family planning services?
action against him. A: Establishments which are required by law to maintain a
(c) No, the employer must grant the request but the clinic or infirmary shall provide free family planning services to
leave will be without pay. their employees.'"
(d) Yes, since she is not yet a permanent employee.' Q: What are the acts of discrimination against women under
the Labor Code?
A: (b) No, as victim of physical violence of her husband, she is
entitled to five (5) days paid leave to attend to her action against him. A: The following are acts of discrimination under the Labor Code:
D. Special Groups of Employees 1. Payment of a lesser compensation, including wage, salary

or other form of remuneration and fringe benefits, to a
1. Women - Labor Code, Arts. 130 and 132-136 female employee as against a male employee, for work
of equal value; and
Q: What are the facilities accorded to women in the workplace?
451 R.A. No. 9262, Sec. 43 otherwise known as the Anti-Violence against Women
and their Children Act. 453 Labor Code, Art. 130.
ON LABOR LAW
2. Favoring a male employee over a female employee with A personal or marital relationship with an employee of a competitor
respect to promotion, training opportunities, study and might compromise the interests of the company. Thus, an employer
scholarship grants solely on account of their sexes.455 policy prohibiting the same may be held as valid.'"
Q: Is a stipulation against marriage valid? Q: One of Pacific Airline's policies was to hire only single
applicants as flight attendants, and considered as automatically
A: It shall be unlawful for an employer to require as a condition resigned the flight attendants at the moment they got married.
of employment or continuation of employment that a woman Is the policy valid? Explain your answer."'
employee shall not get married, or to stipulate expressly or
tacitly that upon getting married, a woman employee shall be A: The policy is not valid since it violates the provision of the
deemed resigned or separated, or to actually dismiss, discharge, Labor Code on stipulations against marriage.
discriminate or otherwise prejudice a woman employee merely
Article 134 of the Labor Code provides that it shall be unlawful
by reason of her marriage.'"
for an employer to require as a condition of employment or
Q: When is a stipulation against marriage allowed? continuation of employment that an employee shall not get
married, or to stipulate expressly or tacitly that upon getting
A: A marriage or no-marriage qualification may be justified married, a woman employee shall be deemed resigned or separated,
provided the employer proves the following two factors or to actually dismiss, discharge, discriminate, or otherwise
necessitating. its imposition: prejudice a woman employee merely by reason of her marriage."'
1. That the employment qualification is reasonably related Q: Dinna Ignacio was hired by Stag Karaoke Club as a
to the essential operation of the job involved; and guest relations officer. Dinna was also required to sing and
2. That there is a factual basis for believing that all or dance with guests of the club.
substantially all persons meeting the qualification would In Dinna Ignacio's employment contract, which she signed,
be unable to properly perform the duties of the job."' the following stipulations appeared:
When the employer can prove that the reasonable demands of the Compensation: Tips and commissions coming from guests
business require a distinction based on marital status, and there is shall be subjected to 15% deduction.
no better available or acceptable policy which would better
accomplish the business purpose, an employer may discriminate Hours of work: 5 P.M. up to 2 AM. Daily Including Sundays
against an employee based on the identity of the employee's spouse."' and Holidays
455 Labor Code, Art. 133 459 Duncan Association of Detailman — PTGWO v. Glaxo Wellcome, G.R. No.
456 Labor Code, Art. 134. 162994, 17 September 2004.
457 Capin-Cadiz v. Brent Hospital and Colleges, Inc., G.R. No. 187417, 24 February 2016. 460 BAR 2017.
458 Star Paper Corp. v. Simbol, G.R. No. 164774, 12 April 2006. 461 Labor Code, Art. 134.
ON LABOR LAW
Other conditions: Must maintain a body weight of 95 lbs., This is clearly not allowed under the law. Thus, Dinna was
remain single. Marriage or pregnancy will be considered as a illegally dismissed.
valid ground for a termination of employment.
Because of her illegal dismissal, she is entitled to backwages
A year later. Dinna Ignacio requested to go on leave because from the time her compensation was withheld from her to the
she would be getting married to one of the club's regular time of her actual reinstatement.
guests. The management of the club dismissed her.
Dinna is not entitled to night differential pay, overtime pay and
Dinna filed a complaint for illegal dismissal, night shift holiday pay because she belongs to one of those classes of
differential pay, backwages, overtime pay and holiday pay. employees who are not covered by the provision of the Labor
Discuss the merits of Dinna's complaint.' Code providing for these benefits. She is a worker paid by
results, since her compensation is determined by the tips and
A: It must first be established whether or not Dinna is an
commission that she receives from her guests.
employee of Star Karaoke Club.
Under the Labor Code, a woman is considered an employee Q: Mam-manu Aviation Company (Mam-manu) is a new
when she is "permitted or suffered to work, with or without airline company recruiting flight attendants for its domestic
compensation, in any night club, cocktail lounge, massage clinic, flights. It requires that the applicant be single, not more than
bar or similar establishment, under the effective control or twenty-four (24) years old, attractive, and familiar with three
supervision of the employer for a substantial period shall be (3) dialects, viz: llonggo, Cebuano and Kapampangan. lngga,
considered an employee of such establishment for purposes of twenty-three (23) years old, was accepted as she possesses all
labor and social legislation."463 Here, Dinna's employment meets the qualifications. After passing the probationary period,
all the aforesaid characteristics. lngga disclosed that she got married when she was eighteen
(18) years old but the marriage was already in the process of
Next, it must be determined whether or not she has been illegally being annulled on the ground that her husband was afflicted
dismissed. Under the Labor Code, "it shall be unlawful for an with a sexually transmissible disease at the time of the
employer to require as a condition of employment or continuation of celebration of their marriage. As a result of this revelation,
employment that a woman employee shall not get married, or to lngga was not hired as a regular flight attendant. Consequently,
stipulate expressly or tacitly that upon getting married a woman she filed a complaint against Mam-manu alleging that the
employee shall be deemed resigned or separated, or to actually pre-employment qualifications violate relevant provisions of
dismiss, discharge, discriminate or otherwise prejudice a woman the Labor Code and are against public policy. Is the
employee merely by reason of her marriage."464 contention of lngga tenable? Why?'"
Here, Dinna's employment contract stated that marriage or A: Yes. Man-manu's pre-employment requirement cannot be justified
pregnancy shall be considered as a valid ground for termination. as a "bona fide occupational qualification," where the particular
requirements of the job would justify it. The said requirement is
462 BAR 1997.

ON LABOR LAW
not valid because it does not reflect an inherent quality that is Corp. v. Simbol,4h9 the Supreme Court held that since the finding
reasonably necessary for a satisfactory job performance.466 of a bona fide occupational qualification justifies an employer's
no-spouse rule, the exception is interpreted strictly and narrowly
Q: Bangko Norte (BN) implemented an "Exogamy Policy", by these state courts. There must be a compelling business necessity
which prohibits employees from marrying their co- for which no alternative exists other than the discriminatory
employees. Specifically, the policy states that when two of its practice. To justify a bona fide occupational qualification, the
employees marry each other, one of them must sever his or employer must prove two factors: (1) that the employment
her employment immediately. Clara, who was hired as an qualification is reasonably related to the essential operation of
account specialist, married her co-worker Ibarra, a loan the job involved; and, (2) that there is a factual basis for believing
specialist. Subsequently, BN terminated the employment of that all or substantially all persons meeting the qualification
Clara but retained Ibarra. Clara argued that the policy would be unable to properly perform the duties of the job.
should not apply to her since she was employed prior to its
effectivity, and that said policy violates the Labor Code. She Here, the no-spouse qualification is not reasonably related to
also pointed out that BN did not explain why it was her, and BN's essential operation of its business as a banking institution.
not Ibarra, whose employment was terminated. Since BN Moreover, there is no factual basis to conclude that all of BN's
refused to reinstate her, Clara filed a complaint for illegal employees who marry each other would be unable to perform
dismissal. Will the complaint of Clara prosper? Discuss.' their duties, entailing one's dismissal. The policy was couched in
a general manner, that whenever any two of their employees
A: Yes, Clara's complaint for illegal dismissal will prosper. marry, one must terminate employment immediately after marriage.
As a rule, it is deemed unlawful to terminate the services of a There is a host of employees in a bank that have varying
female employee because of marriage. An employer's dismissal functions, duties, and responsibilities. The general articulation
of a female employee solely because of her marriage is precisely allows BN to whimsically enforce its policy. Further, it leaves
the discrimination that the Labor Code expressly prohibits. BN the option on which employee's services to terminate. Hence,
However, as an exception, a bona fide occupational qualification Clara was arbitrarily dismissed.
may justify a "no-spouse employment policy" if it is reasonably 2. Minors - R.A. No. 7610, as amended by R.A. No. 9231
necessary in carrying out a particular job function in the normal
operation of an employer's business or enterprise. Q: Who is a "child"?
In Catherine Dela Cruz-Cagampan v. One Network Bank, Inc.,' A: A child is any person under eighteen (18) years of age, as
the employer's "no-spouse employment policy" known as provided for under R.A. No. 9231.
"Exogamy Policy" was struck down for being discriminatory and
for lack of the reasonable business necessity. In Star Paper Q: What is child labor?
A: Child labor refers to any work or economic activity
performed by a child that subjects him/her to any form of
466
PT&T v. National Labor Relations Commission, G.R. No. 118978, 23 May 1997
exploitation or is harmful to his/her health and safety or physical,
citing 45A Am. Jur. 2d, Job Discrimination, Sec. 506, p.468.
467 BAR 2023,
468 G.R. No. 217414, 22 June 2022. 469 G.R. No. 164774, 12 April 2006.
ON LABOR LAW
mental or psychosocial development. It deprives children of their account the system and level of remuneration, and
childhood, their potential and their dignity, and that is harmful to the duration and arrangement of working time; and
physical and mental development.470
c. The employer shall formulate and implement, subject
Q: When can a child be allowed or permitted to work? to the approval and supervision of competent
authorities, a continuing program for training and
A: Children who are fifteen (15) and below eighteen (18) years skills acquisition of the child.47'
of age are allowed to work in any economic activity that is not
considered child labor. Q: What are the working hours of a child?
Children below fifteen (15) years of age shall not be employed except: A: The hours of work of a working child are as follows:
1. When a child works directly under the sole responsibility 1. A child below fifteen (15) years of age may be allowed
of his/her parents or legal guardian and where only to work for not more than twenty (20) hours a week,
members of his/her family are employed: Provided, provided that the work shall not be more than four (4)
however, That his/her employment neither endangers hours at any given day;
his/her life, safety, health, and morals, nor impairs
his/her normal development: Provided, further, That the 2. A child fifteen (15) years of age but below eighteen (18)
parent or legal guardian shall provide the said child with shall not be allowed to work for more than eight (8)
the prescribed primary and/or secondary education; or hours a day, and in no case beyond forty (40) hours a week;
2. Where a child's employment or participation in public 3. No child below fifteen (15) years of age shall be allowed
entertainment or information through cinema, theater, to work between eight (8) o'clock in the evening and six
radio, television or other forms of media is essential: (6) o'clock in the morning of the following day and no
Provided, That the employment contract is concluded by child fifteen (15) years of age but below eighteen (18)
the child's parents or legal guardian, with the express shall be allowed to work between ten (10) o'clock in the
agreement of the child concerned, if possible, and the evening and six (6) o'clock in the morning of the
approval of the Department of Labor and Employment: following day.472
Provided, further, That the following requirements in all
Q: A spinster school teacher took pity on one of her pupils, a
instances are strictly complied with:
robust and precocious twelve (12)-year-old boy whose poor
a. The employer shall ensure the protection, health, family could barely afford the cost of his schooling. She lives
safety, morals and normal development of the child; alone at her house near the school after her housemaid had
left. In the afternoon, she lets the boy do various chores as
b. The employer shall institute measures to prevent the cleaning, fetching water and all kinds of errands after school
child's exploitation or discrimination taking into hours. She gives him rice and P100.00 before the boy goes
470
International Labor Office Convention 182 or the Worst Forms of Child Labor 471 R.A. No. 7610, as amended by R.A. No. 9231, Sec. 12-A.
Conventions. 472 R.A. No. 7610, as amended by R.A. No. 9231, Sec. 12-A.
ON LABOR LAW
home at 7:00 every night. The school principal learned about (b) Her work period exceeds the required working hours
it and charged her with violating the law which prohibits the for children aged fifteen (15) years old;
employment of children below 15 years of age. In her defense,
the teacher stated that the work performed by her pupil is (c) To require a fifteen (15)-year old to work without
not hazardous. Is her defense tenable? Why?473 obtaining the requisite working permit is a form of
child labor;
A: The defense is not tenable.
(d) Iya, who was engaged in a work that is not child
Under R.A. No. 7610, as amended by R.A. No. 9231, children labor, is a working child.47
below fifteen (15) years of age shall not be employed except
when a child works directly under the sole responsibility of A: (d) Iya, who was engaged in a work that is not child labor, is
his/her parents or legal guardian and where only members of a working child.478
his/her family are employed.
Q: In what situation is an employer permitted to employ
Here, the twelve (12)-year-old boy works for a teacher. He does a minor?"'
not work directly under the responsibility of his parents or legal
(a) Sixteen (16)-year old child actor as a cast member in
guardian.'"
soap opera working 8 hours a day, 6 days a week;
Q: TRUE or FALSE. Employment of children below fifteen (b) A seventeen (17)-year old in deep sea-fishing;
(15) years of age in any public or private establishment is
absolutely prohibited.47' (c) A seventeen (17)-year old construction worker;
A: False. Children below fifteen (15) years of age (can be employed) (d) A seventeen (17)-year old assistant cook in a family
"when he/she works directly under the sole responsibility of restaurant.
his/her parents or guardian, and his employment does not in any
A: (d) A seventeen (17)-year old assistant cook in a family
way interfere with his schooling.,,476
restaurant.'"
Q: Iya, fifteen (15) years old, signed up to model a clothing
3. Kasambahays - R.A. No. 10361
brand. She worked from 9 a.m. to 4 p.m. on weekdays and 1
p.m. to 6 p.m. on Saturdays for two weeks. She was issued a Q: Who is a domestic worker or kasambahay?
child working permit under RA 9231. Which of the following
statements is the most accurate? A: Domestic worker or kasambahay refers to any person
engaged in domestic work within an employment relationship,
(a) Working permit for Iya's employment is not required whether on a live-in or live-out arrangement, such as, but not
because the job is not hazardous; limited to, general househelp, yaya, cook, gardener, or laundry
473 BAR 2012. 0.77BAR 2012.

474 R.A. No. 7610, Sec. 12, as amended by R.A. No. 9231 478 R.A. No. 7610 as amended by R.A. No. 9231, Section 12-A
475 BAR 2009. 479 BAR 2012.
476 Labor Code, Art. 137. 4" R.A. No. 7610, Sec. 12, as amended by R.A. No. 7610, Sec. 2.
ON LABOR LAW
person, but shall exclude family drivers, children who are under (b) Family drivers;
foster family arrangement, or any person who performs domestic
work only occasionally or sporadically and not on an (c) Children under foster family arrangement; and
occupational basis.
(d) Any other person who performs work occasionally or
The term shall not include children who are under foster family sporadically and not on an occupational basis.483
arrangement, and are provided access to education and given an
allowance incidental to education, i.e., baon, transportation, Q: What are the rights and privileges of a kasambahay?
school projects and school activities."' A: The rights and privileges of kasambahays are as follows:
Q: Who are covered by R.A. No. 10361, otherwise known as 1. Freedom from employers' interference in wage disposal;
the "Domestic Workers Act" or "Batas Kasambahay"?
2. Standard of treatment;
A: R.A. No. 10361 applies to all domestic workers employed
and working within the country. It covers all parties to an 3. Board, lodging, and medical attendance;
employment contract for the services of the following 4. Right to privacy;
kasambahay, whether on a live-in or live-out arrangement, such
as, but not limited to: 5. Access to outside communication;
(a) General househelp; 6. Access to education and training;
(b) Yaya; 7. Right to be provided a copy of the employment contract;
(c) Cook; 8. Right to Certificate of Employment;
(d) Gardener; 9. Right to form, join, or assist labor organization;
(e) Laundry person; or 10. Right to terminate employment based on just cause; and
(f) Any person who regularly performs domestic work in 11. Right to exercise religious beliefs and cultural practices.'"
one household on an occupational basis.'"
Q: What are the mandatory benefits of a kasambahay?
Q: Who are excluded from coverage?
A: The mandatory benefits of kasambahays are:
A: The following are not covered:
1. Monthly minimum wage;
(a) Service providers;
483Implementing Rules and Regulations of R.A. No. 10361, Rule I, Sec. 2.

481 R.A. No. 10361, Sec. 4(d). 484 R.A. No. 10361; Implementing Rules and Regulations of R.A. No. 10361;
482 R.A. No. 10361, Sec. 3; Implementing Rules and Regulations of R.A. No. 10361, Department of Labor and Employment-Bureau of Working Conditions Handbook
Rule I, Sec. 2. on Workers' Statutory Monetary Benefits.
ON LABOR LAW
2. An aggregate of eight (8) hours daily rest period; (b) A separation pay equivalent to one month's pay per
year of service.
3. Weekly rest period of twenty-four (24) uninterrupted
hours; (c) A separation pay equivalent to one-half month's pay
per year of service.
4. Five (5) days annual service incentive leave with pay;
(d) Fifteen (15) days' pay as indemnity plus wages lost from
5. 13th month pay; dismissal to finality of decision.489
6. SSS benefit; A: (a) An indemnity equivalent to fifteen (15) days' pay plus
7. PhilHealth benefit; and compensation already earned.490
8. Pag-IBIG benefit."' Q: Soledad, a widowed school teacher, takes under her wing
one of her students, Kiko, 13 years old, who was abandoned
Q: Are there differences between a househelper and a by his parents and has to do odd jobs in order to study. She
homeworker? Explain your answer.' allows Kiko to live in her house, provides him with clean clothes,
food, and a daily allowance of 200 pesos. In exchange, Kiko
A: Yes. Househelper refers to any person, whether male or does routine housework, consisting of cleaning the house and
female, who renders services in and about the employer's home doing errands for Soledad.
and which services are usually necessary or desirable for the
maintenance and enjoyment thereof, and ministers exclusively to One day, a representative of the DOLE and the DSWD came
the personal comfort and enjoyment of the employer's family."' to Soledad's house and charged her with violating the law
that prohibits work by minors. Soledad objects and offers as
Homeworker, on the other hand, is one who works in a system of a defense that she was not requiring Kiko to work as the
production under an employer or contractor whose job is carried chores were not hazardous. Further, she did not give him
out at his/her home, the materials of which may or may not be chores regularly but only intermittently as the need may arise.
furnished by the employer or contractor.'"
Is Soledad's defense meritorious?"'
Q: In the case of a househelper, reinstatement is not a statutory
relief for unjust dismissal because of the confidentiality of his A: Soledad's defense is meritorious. Section 4(d) of the Kasambahay
or her job. Instead, the househelper shall be paid Law (R.A. No. 10361) provides that the term "Domestic Worker"
shall not include children who are under foster family arrangement,
(a) An indemnity equivalent to fifteen (15) days' pay plus and are provided access to education and given an allowance
compensation already earned. incidental to education, i.e., baon, transportation, school projects
and school activities.
485 Department of Labor and Employment-Bureau of Working Conditions

Handbook on Workers' Statutory Monetary Benefits.
486 BAR 2017.
487 Labor Code, Rule XIII, Book III, Section 1 (b); Apex Mining Company, Inc. v. 489 BAR 2011.
National Labor Relations Commission, G.R. No. 94951, 22 April 1991. 490 R.A. No. 10361, Sec. 32.
488
Department Order No. 00592. 491 BAR 2015.
ON LABOR LAW
Q: Which of the following statements is the most accurate? Q: Is it correct to say that under Philippine law a househelper
has no right to security of tenure?
(a) Domestic helpers with monthly income of at least
r3,000.00 are compulsory members of the SSS Law; (a) No, since a househelper can be dismissed only for just
cause or when his agreed period of employment ends.
(b) House helpers with monthly income of at least
P2,000.00 are compulsory members of the SSS Law; (b) Yes, since it is the employer who determines the period
of his service.
(c) Domestic helpers, 55 years of age and who worked
for at least five (5) years, are covered by the (c) Yes, since a househelper can be dismissed with or
Retirement Pay Law under optional retirement, in without just cause.
the absence of a CBA;
(d) No, since a househelper can be dismissed only for just
(d) Domestic helpers in the personal service of another cause, except when he has been employed for a
are not entitled to 13th month pay. 492 definite period not exceeding one year.'
A: (d) Domestic helpers in the personal service of another are A: (a) No. A househelper can be dismissed only for just cause
not entitled to 13th month pay. or when his agreed period of employment ends.
Q: What is the nature of employment of househelpers? Q: Albert, a 40-year old employer, asked his domestic helper,
Inday, to give him a private massage. When Inday refused,
(a) Seasonal; Albert showed her Article 141 of the Labor Code, which says
that one of the duties of a domestic helper is to minister to
(b) Fixed-term;
the employer's personal comfort and convenience. Is Inday's
(c) Regular; refusal tenable? Explain.496
(d) Probationary.'" A: Yes. The nature of a domestic worker's job must be related to
household chores. Hence, Inday's refusal to offer her employer a
A: (a) Fixed-Term. The Labor Code provides that the original "private massage" is justified. A massage is not a household chore.
contract of domestic service shall not to exceed two (2) years but
may be "renewable for such periods as may be agreed upon by Q: Nova Banking Corporation has a rest house and recreational
the parties."' facility in the highlands of Tagaytay City for the use of its top
executives and corporate clients. The rest house staff
includes a caretaker, two cooks and laundrywoman.
All of them are reported to the Social Security System as
domestic or household employees of the rest house and recreational
492 BAR 2012.

493 BAR 2012. 493 BAR 2011.
496
494 Labor Code, Art. 142. Bar 2009.
ON LABOR LAW
facility and not of the bank. Can the bank legally consider Q: Under the Labor Code, its provisions on working conditions,
the caretaker, cooks and laundrywoman as domestic employees including the eight-hour workday rule, do not apply to domestic
of the rest house and not of the bank?497 helpers. Does it follow from this that a domestic helper's
workday is not limited by law?
A: No. The caretaker, cooks, and laundrywoman are not domestic
employees of the rest house. They are bank employees because the (a) No, since a domestic helper cannot be required to
rest house and recreational facility are business facilities as they work more than ten hours a day.
are for use of the top executives and clients of the bank."'
(b) Yes, since a domestic helper's hours of work depend
Q: The weekly work schedule of a driver is as follows: Monday, on the need of the household he or she works for.
Wednesday, Friday - drive the family car to bring and fetch
(c) No, because a domestic helper is legally entitled to
the children to and from school. Tuesday, Thursday, Saturday -
overtime pay after ten hours of work.
drive the family van to fetch merchandise from suppliers and
deliver the same to a boutique in a mall owned by the family. (d) Yes, a domestic helper may be required to work
Is the driver a house helper?'" twelve hours a day or beyond.'"3
A: Yes, insofar as it concerns his work on Monday, Wednesday, A: (a) No, since a domestic helper cannot be required to work
and Friday since he ministers to the personal comfort and more than ten (10) hours a day.
enjoyment of his employer's family during those days.'"
4. Homeworkers - Labor Code, Arts. 151-153
Q: The same driver claims that for work performed on Tuesday,
Thursday and Saturday, he should be paid the minimum Q: Distinguish briefly, but clearly, a "househelper" from a
daily wage of a driver of a commercial establishment. Is the "homeworker."5"
claim of the driver valid?'"
A: A domestic helper is one who performs services in the
A: Yes, as during said days, he already works not as a domestic employers house which is usually necessary or desirable for the
servant but as a regular employee in his employer's boutique in maintenance and enjoyment thereof and includes ministering to
a mall.'" the personal comfort and convenience of the members of the employer's
household, including the services of a family driver."'
A homeworker is an industrial worker who works in his/her
home processing raw materials into finished products for an
497 BAR 2000. employer. It is a decentralized form of production with very limited
498 Labor Code, Art. 141; Apex Mining Company, Inc. v. National Labor Relations supervision or regulation of methods of work.'"
Commission, G.R. No. 94951, 22 April 1991; Traders Royal Bank v. National
Labor Relations Commission, G.R. No. 127864, 22 December 1999.
499 BAR 2012.
809 Apex Mining Company, Inc. v. National Labor Relations Commission, G.R. No.
127864, 22 December 1999. " 3 BAR 2011.
501
BAR 2012. 594 BAR 2009.
502
Apex Mining Company, Inc. v. National Labor Relations Commission, G.R. No. 595 Labor Code, Art. 141.
127864, 22 December 1999. 588 Labor Code, Art. 153.
ON LABOR LAW
Q: How is homework paid? that the workers perform no less than seven (7) consecutive
hours of work."'
A: Immediately upon receipt of the finished goods or articles, the
employer shall pay the homeworker or the contractor or sub- Q: Provide an instance where a night worker may be
contractor, as the case may be, for the work performed; provided, transferred to day work?
however, that where payment is made to a contractor or sub-
contractor, the homeworker shall be paid within the week after the A: Night workers who are certified by competent physicians as
contractor or sub-contractor has collected the goods or articles from unfit to render night work due to health reasons, shall be transferred
the homeworkers.'" to a job for which they are fit to work whenever practicable. The
transfer of the employee must be to a similar or equivalent
Q: In industrial homework, the homeworker does at his home position and in good faith.'"
the work that his employer requires of him, using employer-
supplied materials. It differs from regular factory work in Q: May a night worker request a health assessment?
the sense that A: Yes, workers have the right to undergo a health assessment
(a) The workers are not allowed to form labor organizations. without charge:
(b) The workers' pay is fixed by informal agreement (a) Before taking up an assignment as a night worker;
between the workers and their employer. (b) At regular intervals during such an assignment; and
(c) The workers are under very little supervision in the (c) If they experience health problems during such an
performance or method of work. assignment which are not caused by factors other than
(d) The workers are simply called "homeworkers," not the performance of night work.51
"employees," hence not covered by the social security law.508
6. Apprentices and Learners - Labor Code, Arts. 58-60 and
A: (c) The workers are under very little supervision in the 73-74
performance or method of work.
Q: Define the following terms: (a) apprenticeship, (b) apprentice,
5. Night Workers - Labor Code, Arts. 154-161) (c) apprenticeship agreement, and (d) apprenticeable occupation.
Q: Who are night workers? A:
A: Night workers are any employed persons whose work covers a. "Apprenticeship" means any training on the job
the period from 10 p.m. to 6 p.m. the following morning provided supplemented by related theoretical instructions involving
apprenticeable occupations and trades as may be approved
by the Secretary of Labor and Employment.
509
DOLE Order No. 119, s. 2012 January 20, 2012, Sec. 2.
507 Omnibus Rules Implementing the Labor Code, Book III, Rule XIV, Sec. 3. 510
DOLE Order No. 119, S. 2012 January 20, 2012, Sec. 5
508 BAR 5 I I Labor Code, Art. 155
2011.
ON LABOR LAW
b. "Apprentice" is a worker who is covered by a written In D.O. No. 02, series of 2006, the DOLE clarifies that the
apprenticeship agreement with an employer. apprenticeship period shall be for a period of more than three (3)
months but not over six (6) months. It also states that the
c. "Apprenticeship agreement" is a written employment
employer has the option to employ the apprentice even before
contract wherein the employer binds himself to train the
the completion of the apprenticeship period.
apprentice and the latter in turn agrees to work for the
employer. Q: How is an apprentice compensated?
d. "Apprenticeable occupation" means any trade, form of A: An apprentice shall be paid at seventy-five (75%) percent of
employment or occupation approved for apprenticeship the statutory minimum wage for the first six (6) months;
by the Secretary of Labor and Employment, which thereafter, he shall be paid the full minimum wage, including the
requires for proficiency more than three (3) months of full cost of living allowance.5 `5
practical training on the job supplemented by related
theoretical instructions.'n However, the Secretary of Labor may authorize the hiring of
apprentices without compensation whose training on the job is
Q: What are the qualifications of an apprentice? required by the school curriculum as a prerequisite for graduation or
for taking a government board examination.'
A: To qualify as an apprentice, the applicant must:
a. Be at least fifteen (15) years of age; provided those who Q: Who are learners?
are at least fifteen (15) of age but less than eighteen (18) A: Learners are persons hired as trainees in industrial
may be eligible for apprenticeship only in non-hazardous occupations which are non-apprenticeable and which may be
occupations; learned through practical training on the job for a period not
b. Be physically fit for the occupation in which he desires exceeding three (3) months, whether or not such practical
to be trained; training is supplemented by theoretical instructions.51
c. Possess vocational aptitude and capacity for the particular Q: When may learners be employed?
occupation as established through appropriate tests; and A: Learners may be employed when no experienced workers are
d. Possess the ability to comprehend and follow oral and available, the employment of learners being necessary to prevent
written instructions.513 curtailment of employment opportunities, and such employment
Q: What is the period of apprenticeship?

A: The period of apprenticeship shall not exceed six (6) months.'
514 Omnibus Rules Implementing the Labor Code, Book III, Rule VI, Sec. 19.
515 Omnibus Rules Implementing the Labor Code, Book III, Rule VI, Sec. 29.
512 Labor Code, Art. 58; Omnibus Rules Implementing the Labor Code, Book III, 516 Labor Code, Art. 72; Omnibus Rules Implementing the Labor Code, Book III,
Rule VI, Sec. 2. Rule VI, Sec. 40.
513 Labor Code, Art. 59; Omnibus Rules Implementing the Labor Code, Book III, 5" Labor Code, Art. 73; Omnibus Rules Implementing the Labor Code, Book III,
Rule VI, Sec. 11. Rule VI, Sec. 1.
ON LABOR LAW
will not create unfair competition in ten-ns of labor costs nor (a) Period of training: The duration of the training period for
impair working standards.51' learners shall not exceed three (3) months5" while the period of
apprenticeship shall not exceed six (6) months.523
Q: Distinguish a learner from an apprentice.'"
(b) Type of work: Learners are trainees in industrial occupations
A: As to nature: a learner trains in a semi-skilled job; whereas, which are non-apprenticeable and which may be learned through
apprentice trains in a highly technical job. practical training on the job for a period not exceeding three (3)
As to period: a learner is for three (3) months; whereas, an months, whether or not such practical training is supplemented
apprentice is not less than three (3) months but not more than six by theoretical instructions.'" On the other hand, employment of
(6) months, as rule. apprentices is legally allowed only in highly technical industries
and only in apprenticeable occupations approved by the DOLE."'
As to commitment to employ: for a learner, there is a commitment
to employ the learner, as regular employees if he so desire, upon (c) Salary: As a general rule, wages of both learners and
completion of the learnership; whereas, for an apprentice, is no apprentices shall in no case be less than 75% of the applicable
statutory minimum wage rates.526
such commitment.
As to necessity of TESDA approval: for a learner, TESDA approval Learners employed in piece or incentive-rate jobs during the
is not necessary, only TESDA inspection is required; whereas, training period shall be paid in full for the work done."'
for an apprentice, prior approval by TESDA is required. Apprentices who work beyond the six-month apprenticeship
As to deductibility of expenses: for a learner, there is no deductibility period shall be paid the full minimum wage, including the full
of expenses; whereas, for an apprentice, expenses for training are cost of living allowance."'
deductible from income tax. (d) Qualifications: Learners must be at least 15 years of age.
As to compensation: a learner has compensation; an apprentice Those below 18 years of age may only be employed in non-
has none if DOLE authorizes, as when required by the school."' hazardous occupations."'
To qualify as apprentice, an applicant shall:
Q: Differentiate learnership from apprenticeship with respect
to the period of training, type of work, salary and qualifications.'
A: 522 Omnibus Rules Implementing the Labor Code, Book Three, Rule VII, Chapter I,
Sec. 4(c).
523 Omnibus Rules Implementing the Labor Code, Book Two, Rule VI, Sec. 19.
524
Omnibus Rules Implementing the Labor Code, Book Three, Rule VII, Chapter I,
Sec. 1.
525
526 Labor Code, Art. 75; Omnibus Rules Implementing the Labor Code, Book Three,
518 Labor Code, Art. 74; Omnibus Rules Implementing the Labor Code, Book III, Rule VII, Chapter I, Sec. 10.
527
Rule VI, Sec. 2. Labor Code, Art. 76.
528
519 BAR 2017. Omnibus Rules Implementing the Labor Code, Book Two, Rule VI, Sec. 29.
529
520 Labor Code, Articles 58-60 and 73-74. Omnibus Rules Implementing the Labor Code, Book Three, Rule VII, Chapter I,
521 BAR 2016. Sec. 6.
ON LABOR LAW
(1) Be at least 15 years of age; provided those who are at least 15 (d) The Department of Labor and Employment.533
years of age but less than 18 may be eligible for apprenticeship
only in non-hazardous occupations; A: (b) The employer if the apprenticeship is done in the plant.534
(2) Be physically fit for the occupation in which he desires to Q: What is not a prerequisite for a valid apprenticeship
be trained; agreement?
(3) Possess vocational aptitude and capacity for the particular (a) Qualifications of an apprentice are met;
occupation as established through appropriate tests; and
(b) A duly executed and signed apprenticeship agreement;
(4) Possess the ability to comprehend and follow oral and written
(c) The apprenticeship program is approved by the Secretary
instructions.'"
of Labor;
Q: A handicapped worker may be hired as apprentice or (d) Included in the list of apprenticeable occupation of
learner, provided: TESDA.535
(a) He waives any claim to legal minimum wage. A: (c) The apprenticeship program is approved by the Secretary
(b) His work is limited to apprenticeable job suitable to a of Labor.536 Under Section 18 of R.A. No. 7796, provides that the
handicapped worker. apprenticeship program of DOLE shall be transferred to TESDA
for the implementation and administration of the program.
(c) He does not impede job performance in the operation
for which he is hired. Q: Which is a characteristic of the learner?
(d) He does not demand regular status as an employee."' (a) A person is hired as a trainee in an industrial occupation;
A: (c) He does not impede job performance in the operation for (b) Hired in a highly technical industry;
which he is hired."'
(c) Three (3) months practical on-the-job training with
Q: The apprenticeship program should be supplemented by theoretical instruction;
theoretical instruction to be given by (d) At least 14 years old."'
(a) The apprentice's school only where the apprentice is A: (a) A person is hired as a trainee in an industrial occupation."'
formally enrolled as a student.
(b) The employer if the apprenticeship is done in the plant.
(c) The civic organizations that sponsor the program.
533 BAR 2011.
535 BAR 2012.
530 Omnibus Rules Implementing the Labor Code, Book Two, Rule VI, Sec. 11. 536 Labor Code, Art. 61.
531 BAR 2011. 537 BAR 2012.
538
532 Labor Code, Art. 81. Labor Code, Art. 73.
ON LABOR LAW
Q: Both apprenticeship and learnership are government apprentice attains employment status after six (6)
programs to provide practical on-the-job training to new months of apprenticeship.'
workers. How do they differ with respect to period of training?
A: (c) in learnership, the employer undertakes to make the learner
(a) In highly technical industries, apprenticeship can a regular employee;S43 in apprenticeship, there is no such undertaking.
exceed six (6) months; learnership can exceed one (1) year.
7. Persons With Disabilities - R.A. No. 7277, as amended by
(b) Apprenticeship cannot exceed six (6) months; R.A. No. 9442, R.A. No. 10070 and R.A. No. 10524
learnership can.
Q: What is the law applicable to persons with disabilities
(c) Apprenticeship shall not exceed six months; while (PWDs)?
learnership shall not exceed three (3) months.
A: R.A. No. 7277 as amended by R.A. Nos. 9442, 10070 and
(d) The law lets the employer and the apprentice agree 10524, otherwise known as the "Magna Carta for Disabled
on the apprenticeship period; but the law fixes Persons," is the law that applies to PWDs. It superseded the
learnership period at six (6) months in non-technical provisions of the Labor Code on handicapped workers.
industries."'
Q: What is meant by "equal opportunity of employment"?
A: (c) Apprenticeship shall not exceed six (6) months;540 while
learnership shall not exceed three (3) months."' A: Equal opportunity of employment means that no disabled
person shall be denied access to opportunities for suitable
Q: Although both are training programs, apprenticeship is employment. A qualified disabled employee shall be subject to
different from learnership in that the same terms and conditions of employment and the same
(a) A learner may be paid twenty-five percent (25%) less compensation, privileges, benefits, fringe benefits, incentives or
than the legal minimum wage while an apprentice is allowances as a qualified able-bodied person.544
entitled to the minimum wage. At least one percent (1%) of all positions in all government
(b) Apprenticeship has to be covered by a written agreement; agencies, offices or corporatons shall be reserved for persons
no such formality is needed in learnership. with disability: Provided, that private corporations with more
than one hundred (100) employees are encouraged to reserve at
(c) In learnership, the employer undertakes to make the least one percent (1%) of all positions for persons with disability."'
learner a regular employee; in apprenticeship, no
such undertaking.
(d) A learner is deemed a regular employee if terminated

without his fault within one month of training; an
542 BAR 2011.

'39 BAR 2011. 543 Labor Code, Art. 75.
549 Labor Code, Art. 75. 544 R.A. No. 7277, Sec. 5.
541 Labor Code, Art. 61. 545 R.A. No. 10524, Sec. 1 amending R.A. No. 7277, Sec. 5
ON LABOR LAW
Q: What is the wage rate applicable to PWDs? than the amount to which a non-disabled person performing
the same work is entitled;
A: Under Article 80 of the Labor Code, the wage rate applicable
to handicapped workers or PWDs is at least seventy-five percent e. favoring a non-disabled employee over a qualified
(75%) of the applicable adjusted minimum wage. However, R.A. disabled employee with respect to promotion, training
No. 7277 increased the wage rate to one hundred percent (100%) opportunities, study and scholarship grants solely on
of the applicable minimum wage. account of the latter's disability;
Q: What are the acts of discrimination against PWDs in f. re-assigning or transferring a disabled employee to a job
relation to employment? or position he cannot perform by reason of his disability;
A: The public or private sector shall not discriminate against a g. dismissing or terminating the services of disabled employee
qualified disabled person by reason of disability in regard to job by reasons of his disability unless the employer can
application procedures, the hiring, promotion or discharge of prove that he impairs the satisfactory performance of the
employees, employees' compensation, job training, and other work involved to the prejudice of the business entity;
terms, conditions and privileges of employment. provided that the employer first sought to provide
reasonable accommodations for disabled persons;
The following shall constitute acts of discrimination:
h. failing to select or administer in the most effective
a. limiting, segregating or classifying a disabled job applicant manner employment test which accurately reflects the
in such a manner that adversely affects his work opportunities; skill, aptitude or other factors of the disabled applicant
b. using qualification standards, employment test or the or employee that such test purports to measure, rather
selection criteria that screen out or tend to screen out a than the impaired sensory, manual or speaking skills of
disabled person unless such standards, test or the selection such applicant or employee, if any; and
criteria are shown to be job related for the position in excluding disabled persons from membership in labor
question and are consistent with business necessity; unions or similar organizations.546
c. utilizing standards, criteria or methods with business
Q: Provide at least three (3) acts constituting discrimination
necessity; of disabled persons under the Magna Carta for Disabled Persons.
1. have the effect of discrimination on the basis of A: The following are examples of acts of discrimination of
disability; disabled persons:
2. perpetuate the discrimination of others who are 1. Favoring a non-disabled employee over a qualified disabled
subject to common administrative control; employee with respect to promotion, training opportunities,
d. providing less compensation, such as salary, wage or study and scholarship grants, solely on account of the
other forms of remuneration and fringe benefits, to a latter's disability;
qualified disabled employee, by reason of his disability,
546
Implementing Rules And Regulations of R.A. No. 7277, Rule IX, Secs. 1-2.
ON LABOR LAW
2. Re-assigning or transferring a disabled employee to a job or favor from the other, regardless of whether the demand, request
position he cannot perform by reason of his disability; and or requirement for submission is accepted by the object of
said act.'"
3. Failing to select or administer in the most effective manner
employment tests which accurately reflect or measure Q: How is work-related sexual harassment committed?
the skills, aptitude or positive traits of the disabled
applicant or employee rather than the impaired sensory, A: Work-related sexual harassment is committed when:
manual or speaking capabilities of such applicant or 1. The sexual favor is made as a condition in the hiring or
employee, if any.'" in the employment, re-employment or continued
employment of said individual, or in granting said
E. Sexual Harassment in the Work Environment (R.A. No.
individual favorable compensation, terms, conditions,
7877); Safe Spaces Act (R.A. No. 11313, Article IV)
promotions, or privileges; or refusal to grant the sexual
Q: What is the concept of sexual harassment in the workplace? favor results in limiting, segregating or classifying the
employee which in any way would discriminate, deprive
A: At the core of sexual harassment in the workplace is abuse of or diminish employment opportunities or otherwise
power by a superior over a subordinate.548 Sexual harassment is adversely affect said employee;
an imposition of misplaced "superiority" which is enough to
dampen an employee's spirit and her capacity for advancement. 2. The above acts would impair the employee's rights or
It affects her sense of judgment; it changes her life."' privileges under existing labor laws; or
Q: What law governs sexual harassment in the workplace? 3. The above acts would result in an intimidating, hostile or
offensive environment for the employee."'
A: R.A. No. 7877, otherwise known as the "Anti-Sexual
Harassment Act," is the governing law for work, education or Q: Atty. Renan, a CPA-lawyer and Managing Partner of an
training-related sexual harassment. accounting firm, conducted the orientation seminar for newly-
hired employees of the firm, among them, Miss Maganda.
Q: Who may be held liable for sexual harassment? After the seminar, Renan requested Maganda to stay, purportedly
to discuss some work assignment. Left alone in the training
A: Work, education or training-related sexual harassment is room, Renan asked Maganda to go out with him for dinner
committed by an employer, employee, manager, supervisor, and ballroom dancing. Thereafter, he persuaded her to accompany
agent of the employer, teacher, instructor, professor, coach,
him to the mountain highway in Antipolo for sight-seeing.
trainor, or any other person who, having authority, influence or During all these, Renan told Maganda that most, if not all, of
moral ascendancy over another in a work or training or education
the lady supervisors in the firm are where they are now, in
environment, demands, requests or otherwise requires any sexual
very productive and lucrative posts, because of his favorable
endorsement.
547 Section 32, Chapter 1, Title III, Republic Act No. 7277.
548 Jose Romeo T Escandor v. People of the Philippines, G.R. No. 211962, 06 July
2020. 550
R.A. No. 7877, Sec. 3.
549 Domingo v. Rayala, G.R. No. 155831, 18 February 2008. 551 R.A. No. 7877, Sec. 3.
ON LABOR LAW
Did Renan commit acts of sexual harassment in a work- Q: What is the liability if the employer or head of office
related or employment environment? Reasons.' did not undertake any action despite knowledge of the
occurrence of sexual harassment in the workplace?
A: Yes, Atty. Renan committed acts of sexual harassment in a
work-related or employment environment. A: The employer or head of office shall be solidarily liable for
damage arising from the acts of sexual harassment committed in
As held in Domingo v. Rayala, 5" while the law calls for a
the employment environment if the employer or head of office is
demand, request or requirement of a sexual favor, it is not
informed of such acts by the offended party and no immediate
necessary that the demand, request or requirement of a sexual
action is taken thereon."'
favor be articulated in a categorical oral or written statement. It may
be discerned, with equal certitude, from the acts of the offender. Q: May gender-based sexual harassment in the workplace
Here, the acts of Atty. Renan, who has authority, influence or be done by persons of the same rank?
moral ascendancy over Miss Maganda, when taken together, A: Yes, gender-based sexual harassment may also be committed
indubitably shows his request for a sexual favor from the Miss between peers and those committed to a superior officer by a
Maganda. subordinate, or to a teacher by a student, or to a trainer by a trainee."'
Q: In a work-related environment, sexual harassment is Q: What are the duties of employers under R.A. No. 11313
committed when or the Safe Spaces Act?
(a) the offender has authority, influence, or moral A: Employers or other persons of authority, influence or moral
ascendancy over his subordinate victim. ascendancy in a workplace shall have the duty to prevent, deter,
(b) the victim's continued employment is conditioned on or punish the performance of acts of gender-based sexual
sexual favor from her. harassment in the workplace."'
(c) the female victim grants the demand for sexual favor Q: How shall employers fulfill the above duties?
against her will.
A: The employer or person of authority, influence or moral
(d) the victim is not hired because she turned down the ascendancy shall:
demand for sexual favor. 554
1. Disseminate or post in a conspicuous place a copy of the
A: (b) the victim's continued employment is conditioned on law to all persons in the workplace;
sexual favor from her."'
2. Provide measures to prevent gender-based sexual
harassment in the workplace, such as the conduct of anti-
sexual harassment seminars;
552 BAR 2009.

553 G.R. No. 155831, 18 February 2008. 556 R.A. No. 7877, Sec. 5.
554 BAR 2011. R.A. No. 11313, Art. IV, Sec. 16.
557
555 R.A. No. 7877, Sec. 3. 558 R.A. No. 11313, Art. IV, Sec. 17.
ON LABOR LAW
3. Create an independent internal mechanism or a committee A: No, Bitoy's contention is not correct.
on decorum and investigation to investigate and address
complaints of gender-based sexual harassment; Under Section 16 of R.A. No. 11313 or the Safe Spaces Act,
sexual harassment may be committed to a superior officer by a
4. Provide and disseminate, in consultation with all persons subordinate.
in the workplace, a code of conduct or workplace policy
which shall: (a) expressly reiterate the prohibition on Hence, Bitoy can be subject to disciplinary action for sexual
gender-based sexual harassment; (b) describe the procedures harassment despite the lack of superior-subordinate relationship
of the internal mechanism created to investigate and between Diego and him.
address complaints of gender-based sexual harassment;
F. Discriminatory Practices
and (c) set administrative penalties."'
1. Age - R.A. No. 10911
Q: What are the liabilities of employers under RA. No. 11313?
A: In addition to liabilities for committing acts of gender-based Q: Discuss the prohibition on discrimination in employment
sexual harassment, employers may be held responsible for: on account of age under R.A. No. 10911 or the Anti-Age
Discrimination in Employment Act.
a. Non-implementation of their duties under Section 17 of
the law, as provided in the penal provisions; or A: The following four acts are prohibited under Section 5 of the
Anti-Age Discrimination in Employment Act:
b. Not taking action on reported acts of gender-based sexual
harassment committed in the workplace.'" 1. It shall be unlawful for an employer to:
a. Print or publish, or cause to be printed or published,
Q: Due to Bitoy's repeated unwanted sexual advances
in any form of media, including the internet, any notice
towards his co-worker Diego, Diego went to the Personnel
of advertisement relating to employment suggesting
Manager to report Bitoy's behavior. The Personnel Manager
started a disciplinary action case against Bitoy. In his written preferences, limitations, specifications, and discrimination
based on age;
explanation, Bitoy denied the allegation of sexual advances.
He also pointed out that sexual harassment only pertains to a b. Require the declaration of age or birth date during
superior-subordinate relationship, where the perpetrator is the application process;
the superior and the victim is the subordinate. Since Diego is
not his subordinate, as they are co-workers with the same c. Decline any employment application because of the
rank, Bitoy cannot be subject to disciplinary action. individual's age;
Is Bitoy's contention correct? Explain briefly.' d. Discriminate against an individual in terms of

compensation, terms and conditions or privileges of
employment on account of such individual's age;
"9 1d. e. Deny any employee's or worker's promotion or

56° R.A. No. 11313, Art. IV, Sec. 19. opportunity for training because of age;
561 Bar 2022.
ON LABOR LAW
f. Forcibly lay off an employee or worker because of 2. The intent is to observe the terms of a bona fide seniority
old age; or system that is not intended to evade the purpose of the
Anti-Age Discrimination in Employment Act;
g. Impose early retirement on the basis of such employee's
or worker's age. 3. The intent is to observe the terms of a bona fide employee
retirement or a voluntary early retirement plan consistent
2. It shall be unlawful for a labor contractor or subcontractor, with the purpose of Anti-Age Discrimination in Employment
if any, to refuse to refer for employment or otherwise Act: Provided, that such retirement or voluntary retirement
discriminate against any individual because of such plan is in accordance with the Labor Code, as amended,
person's age. and other related laws; or
3. It shall be unlawful for a labor organization to: 4. The action is duly certified by the Secretary of Labor and
a. Deny membership to any individual because of such Employment in accordance with the purpose of Anti-
individual's age; Age Discrimination in Employment Act.
b. Exclude from its membership any individual because 2. Gender and Marital Status - R.A. No. 9710
of such individual's age; or
Q: What is discrimination against women under R.A. No.
c. Cause or attempt to cause an employer to discriminate 9710 or the Magna Carta of Women?
against an individual.
A: Section 4(b) of R.A. No. 9710 provides that discrimination
4. It shall be unlawful for a publisher to print or publish against women refers to any gender-based distinction, exclusion,
any notice of advertisement relating to employment or restriction which has the effect or purpose of impairing or
suggesting preferences, limitations, specifications, and nullifying the recognition, enjoyment, or exercise by women,
discrimination based on age. irrespective of their marital status, on a basis of equality of men
and women, of human rights and fundamental freedoms in the
Q: When is the employer allowed to set age limitations in political, economic, social, cultural, civil, or any other field.
employment?
It includes any act or omission, including by law, policy, administrative
A: Section 6 of the Anti-Age Discrimination in Employment measure, or practice, that directly or indirectly excludes or
Act provides that it shall not be unlawful for an employer to set restricts women in the recognition and promotion of their rights
age limitations in employment if: and their access to and enjoyment of opportunities, benefits,
1. Age is a bona fide occupational qualification reasonably or privileges. A measure or practice of general application is
necessary in the normal operation of a particular business discrimination against women if it fails to provide for mechanisms
or where the differentiation is based on reasonable to offset or address sex or gender-based disadvantages or limitations
factors other than age; of women, as a result of which women are denied or restricted in
the recognition and protection of their rights and in their access
to and enjoyment of opportunities, benefits, or privileges; or
women, more than men, are shown to have suffered the greater
ON LABOR LAW
adverse effects of those measures or practices. Provided, finally, 1. Require as a condition of employment or continuation of
that discrimination compounded by or intersecting with other employment that a woman employee shall not get
grounds, status, or condition, such as ethnicity, age, poverty, or married, or
religion shall be considered discrimination against women.
2. Stipulate expressly or tacitly that upon getting married a
Q: What is substantive equality under R.A. No. 9710 or the woman employee shall be deemed resigned or separated or
Magna Carta of Women? 3. Actually dismiss, discharge, discriminate or otherwise prejudice
A: "Substantive Equality" refers to the full and equal enjoyment a woman employee merely by reason of her marriage. 564
of rights and freedoms contemplated under. It encompasses de
jure and de facto equality and also equality in outcomes.'" Q: When is a stipulation against marriage allowed?
A: A marriage or no-marriage qualification may be justified as a
Q: What is the difference between Gender Equality and bona fide occupational qualification, provided the employer
Gender Equity? proves the following two (2) factors necessitating its imposition:
A: Gender Equality refers to the principle asserting the equality of 1. That the employment qualification is reasonably related
men and women and their right to enjoy equal conditions to the essential operation of the job involved; and
realizing their full human potentials to contribute to and benefit
from the results of development, and with the State recognizing 2. That there is a factual basis for believing that all or
that all human beings are free and equal in dignity and rights. substantially all persons meeting the qualification would
be unable to properly perform the duties of the job.565
Gender Equity refers to the policies, instruments, programs,
services, and actions that address the disadvantaged position of When the employer can prove that the reasonable demands of the
women in society by providing preferential treatment and business require a distinction based on marital status, and there is
affirmative action. Such temporary special measures aimed at no better available or acceptable policy which would better
accelerating de facto equality between men and women shall not accomplish the business purpose, an employer may discriminate
be considered discriminatory but shall in no way entail as a against an employee based on the identity of the employee's spouse.566
consequence the maintenance of unequal or separate standards.
These measures shall be discontinued when the objectives of A personal or marital relationship with an employee of a competitor
equality of opportunity and treatment have been achieved.'" might compromise the interests of the company. Thus an employer
policy prohibiting the same may be held as valid.56"
Q: Discuss the prohibition on stipulations against marriage.
A: It shall be unlawful for an employer to:
564 Labor Code, Art. 134; Duncan Association of Detailman-PTGWO, et al. v. Glaxo
Wellcome Philippines, Inc., G.R. No. 162994, 17 September 2004.
565
Capin-Cadiz v. Brent Hospital and Colleges, Inc.. G.R. No. 187417, 24 February 2016.
366 Star Paper Corp. v. Simbol. G.R. No. 164774, 12 April 2006.
567
562 R.A. No. 9710, Sec. 4(b). Duncan Association of Detailman - P7Z.;WO v. Glaxo Wellcome, G.R. No.
563 R.A. No. 9710, Secs. 4(f)-(g). 162994, 17 September 2004.
ON LABOR LAW
Q: What are the prohibited acts of discrimination against the number of children shall not be a ground for non-hiring or
women under the Labor Code? termination from employment."'
A: The following acts are prohibited under Article 135 of the 4. Illness — DOLE D.A. No. 05-10: DOLE D.O. No. 73-05
Labor Code:
Q: Can an employee be declared unfit to work upon
1. To deny any woman employee the benefits provided for contracting Hepatitis B?
in this Chapter (Facilities for women, maternity leave
benefits, family planning services, and incentives for A: Individuals found to be Hepatitis B positive shall not be
family planning) or to discharge any woman employed declared unfit to work without appropriate medical evaluation
by him for the purpose of preventing her from enjoying and counselling.'"
any of the benefits provided under the Labor Code.
Q: Can an employee be terminated upon contracting Hepatitis B?
2. To discharge such woman on account of her pregnancy,
while on leave or in confinement due to her pregnancy; and A: Workers shall not be terminated on the basis of the actual,
perceived or suspected Hepatitis B.57°
3. To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again be Q: Can a person diagnosed with tubercolosis work?
pregnant.
A: Yes, so long as he/she is declared medically fit by the
Q: What does the Magna Carta of Women provide regarding company's accredited health provider and his/her illness is
discrimination against women faculty? controlled.
A: Section 13(c) of R.A. No. 9710 or the Magna Carta of Women 5. Solo Parents — R.A. No. 8972, as amended by R.A. No.
provides that the expulsion and non-readmission of women 11861, Sec. 7
faculty due to pregnancy outside of marriage shall be outlawed.
Q: What is the prohibition on work discrimination for solo
3. Pregnancy - R.A. No. 10354, Sec. 23 (c) parents?
Q: Can an employer compel its employees to use family A: No employer shall discriminate against any solo parent
planning methods? employee with respect to terms and conditions of employment
on account of his/her status.571
A: It is prohibited for any employer who shall suggest, require,
unduly influence or cause any applicant for employment or an
employee to submit himself/herself to sterilization, use any
modern methods of family planning, or not use such methods as
a condition for employment, continued employment, promotion
or the provision of employment benefits. Further, pregnancy or
568 R.A. No. 10354, sec 23 (c)
569 DOLE D.A. No. 05-10, Article C, Section 1 (b)
57° DOLE D.A. No. 05-10, Article C, Section 1 (c)
571 R.A. No. 8972, Sec. 7
ON LABOR LAW
6. Persons with Disability — R.A. No. 7277, as amended 7. Dismissing or terminating the services of a disabled
employee by reason of his disability unless the employer
Q: Discuss the prohibition on discrimination against disabled can prove that he impairs the satisfactory performance of
persons. the work involved to the prejudice of the business entity:
Provided, however, That the employer first sought to
A: Section 32 of R.A. No. 7277 provides that no entity, whether
provide reasonable accommodations for disabled persons;
public or private, shall discriminate against a qualified disabled
person by reason of disability in regard to job application procedures, 8. Failing to select or administer in the most effective
the hiring, promotion, or discharge of employees, employee manner employment tests which accurately reflect the
compensation, job training, and other terms, conditions, and privileges skills, aptitude or other factor of the disabled applicant
of employment. The following constitute acts of discrimination: or employee that such tests purports to measure, rather
than the impaired sensory, manual or speaking skills of
1. Limiting, segregating or classifying a disabled job applicant
such applicant or employee, if any;
in such a manner that adversely affects his work opportunities;
9. Excluding disabled persons from membership in labor
2. Using qualification standards, employment tests or other
unions or similar organizations.57'
selection criteria that screen out or tend to screen out a
disabled person unless such standards, tests or other selection
criteria are shown to be job-related for the position in
question and are consistent with business necessity;
3. Utilizing standards, criteria, or methods of administration
that: 1) have the effect of discrimination on the basis of
disability; or 2) perpetuate the discrimination of others
who are subject to common administrative control;
4. Providing less compensation, such as salary, wage or
other forms of remuneration and fringe benefits, to a
qualified disabled employee, by reason of his disability,
than the amount to which a non-disabled person performing
the same work is entitled;
5. Favoring a non-disabled employee over a qualified disabled
employee with respect to promotion, training opportunities,
study and scholarship grants, solely on account of the
latter's disability;
6. Re-assigning or transferring a disabled employee to a job
or position he cannot perform by reason of his disability;
512 Implementing Rules and Regulations, R.A. No. 7277, Rule II, Section 1.
SOCIAL WELFARE BENEFITS 241
Q: What are the liabilities of the employer who fails to report

V. Social Welfare Benefits or register his employee for social security coverage?
A. SSS Law (R.A. No. 8292, as amended by R.A. No. 11199) A: In case of failure or refusal to report or register employees or
to deduct contributions from the employees' salaries/wages and
1. Benefits; Coverage and Exclusions remit the same to the SSS, the employer shall be subject a fine of
P5,000.00 to P20,000.00 and imprisonment of six years and one
Q: Who are compulsorily covered by the SSS Law?
day up to 12 years without benefit of probation.'"
A: Coverage in the SSS shall be compulsory upon:
Q: Baldo, a farm worker on pakyaw basis, had been working
1. All employees including kasambahays or domestic on Dencio's land by harvesting abaca and coconut, processing
workers not over sixty (60) years of age; copra, and clearing weeds from year to year starting January
1993 up to his death in 2007. He worked continuously in the
2. Self-employed individuals, which includes, but not sense that it was done for more than one harvesting season.
limited to:
a. Was Dencio required to report Baldo for compulsory social
a) All self-employed professionals; security coverage under the SSS law? Explain.
b) Partners and single proprietors of businesses; b. What are the liabilities of the employer who fails to report
c) Actors and actresses, directors, scriptwriters and his employee for social security coverage? Explain.'
news correspondents who do not fall within the A:
definition of the term "employee" in Section 8 (d)
of the Act; a. Dencio is required to report Baldo for compulsory social security
coverage under the SSS Law. From the facts mentioned,
d) Professional athletes, coaches, trainers and jockeys; and Baldo is clearly an employee of Dencio. Considering the
e) Individual farmers and fishermen. length of time that Baldo has worked with Dencio, it may be
justifiably concluded that he is engaged to perform activities
3. Overseas Filipino Workers, whether sea-based or land- necessary or desirable in the usual trade or business of Dencio
based; and and is therefore a regular employee. Length of service was
used by the Supreme Court in the case of Brotherhood Labor
4. Spouses who devote full time to managing the household
Unity Movement of the Philippines v. Zamora,576 to pronounce
and family affairs, unless they are also engaged in other that the individual involved is a regular employee. Baldo, is
vocation or employment which is subject to mandatory thus, not a casual or temporary employee, exempted from the
coverage, may be covered by the SSS on a voluntary basis.'" coverage of the SSS Law.
573 R.A. No. 11199, Sec. 9. 374 R.A. No. 11199, Sec. 28.
375 BAR 2016.
240 576 G.R. No. 485451, 07 January 1987.
242 COMPENDIOUS BAR REVIEWER SOCIAL WELFARE BENEFITS 243
ON LABOR LAW
b. The employer shall pay to the SSS damages equivalent to the that long if their employment is not for the purpose of occupation
benefit which the employee would have been entitled had his or business of the employer?
name been reported on time to the SSS, except that in case of
pension benefits, the employer shall be liable to pay the SSS The coverage of the Social Security Law takes effect on the day
damages equivalent to five years monthly pension; however, of the employment of the employee.'"
if the contingency occurs within thirty (30) days from date of
Q: Can a member of a cooperative be deemed an employee
employment, the employer shall be relieved of his liability for purposes of compulsory coverage under the Social Security
for damages.'" It shall pay the corresponding unremitted
Act? Explain."'
contributions and penalties thereon.'
A: Yes, an employee of a cooperative, not over sixty (60) years
Q: Sapatilya Company, a manufacturer of wooden shoes of age is, under the SSS Law, subject to compulsory coverage.
started its operations on January 1, 1989. As of June 15, The SSS Law defines an employee as any person who performs
1989, the company had in its payroll a general manager, an services for an employer in which either or both mental and
assistant general manager, three supervisors and forty rank physical efforts are used and who receives compensation for such
and file employees, all of whom started with the company on service, where there is an employer- employee relationship.'"
January 1, 1989. On July 1, 1989, the company also had ten
casual employees who had been with the company since Q: Don Jose, a widower, owns a big house with a large
February 16, 1989 and twelve contractual employees whose garden. One day, his househelper and gardener left after
contracts of employment with the company is for the period they were scolded. For days, Don Jose, who lives alone in
from August 1, 1989 to September 30, 1989. Who among the compound to look for someone who could water the plants in
aforementioned employees are under coverage of the Social the garden and clean the house. He chanced upon Mang
Security Law? When did their coverage under the said law Kiko on the street and asked him to water the plants and
take effect?s'9 clean the house. Without asking any question, Mang Kiko
attended to the plants in the garden and cleaned the house.
A: All of the foregoing employees are covered by the Social
He finished the work in two days.
Security Law, except the ten (10) casual employees. The coverage
of the Social Security System is very comprehensive; it covers Are they compulsorily covered by the Social Security System?"'
"all" employees not over sixty years of age except, among others
those whose "employment is purely casual and not for the A: No, they are compulsorily covered by the Social Security
purpose of occupation or business of the employer." But the casual System (SSS). Mang Kiko performs domestic service for Don
employees in the question may not even be casual under the Jose in a private home. This is one of the kinds of employment
Social Security Law because they have been with the company excluded from the compulsory coverage of the 555.5"
since February 16, 1989. How could they be with the Company
580 R.A. No. 11199, Section 10

581 Bar 2009.
577 R.A. No. 1161, as amended, Sec. 24(a). 582 R.A. No. 11199, Sec. 8(d).
578 R.A. No. 1161, as amended, Sec. 24(b). 583 Bar 2014.
579 BAR 1989. 584 R.A. No. 11199, Section 9
ON LABOR LAW
Q: Tito Paciencioso is an employee of a foundry shop in (d) A foreign corporation."'

Malabon, Metro Manila. He is barely able to make ends meet
with his salary of £4,000.00 a month. One day, he asked his A: (b) The government and any of its political subdivisions,
employer to stop deducting from his salary his SSS monthly branches or instrumentalities, including corporations owned or
contribution, reasoning out that he is waiving his social controlled by the government.'"
security coverage.
Q: What are the benefits available under the SSS Law?
If you were Tito's employer, would you grant his request?
A: The SSS Law, as amended, provides for the following:
Why?"'
a) Maternity leave benefit;
A: No. As Tito's employer, I am bound by law to remit to SSS
Tito's monthly contribution. The SSS law covers any person b) Retirement benefit;
natural, juridical, domestic or foreign, carrying in the Philippines
trade, business, industry, undertaking or activity and uses the services c) Death benefit;
of another under his order as regards employment (Sec. 89[c]). d) Permanent disability benefit;
The compulsory coverage of employers and employees under the e) Funeral benefit;
SSS law is actually a legal imposition on the employers and
employees, designed to provide social security to workingmen. fl Sickness benefit, and;
Membership in SSS is in compliance with a lawful exercise of the
police power of the State, and may not be waived by agreement g) unemployment insurance or involuntary separation benefits.
of any party.'"
Q: What are the conditions for entitlement to maternity
Q: Which of the following is not considered an employer by leave benefit under the SSS Law?
the terms of the Social Security Act? A: A female member shall be paid a daily maternity benefit
equivalent to one hundred percent (100%) of her average daily
(a) Self-employed person;
salary credit subject to the following conditions
(b) The government and any of its political subdivisions,
1. That the employee shall have notified her employer of
branches or instrumentalities, including corporations
her pregnancy and the probable date of her childbirth,
owned or controlled by the government;
which notice shall be transmitted to SSS in accordance
(c) A natural persons, domestic or foreign, who carries with the rules and regulations it may provide;
on in undertaking or activity of any kind and uses the
2. The full payment shall be advanced by the employer
services of another person who is under his orders as
within thirty (30) days from the filing of the maternity
regards the employment;
leave application;
585 BAR 2008.

586 Phil. Blooming Mills, Co. Inc. v. Social Security System, G.R. No. L-21223, 31 587 BAR 2012.
August 1966. 588 R.A. No. 8282, Sec. 8 (c).
ON LABOR LAW
3. That the payment of daily maternity benefits shall be a employee has paid at least three (3) monthly contributions in the
bar to the recovery of sickness benefits provided by this twelve-month period immediately preceding the semester of her
Act for the same period for which daily maternity childbirth, she can avail of the maternity benefits under the law.
benefits have been received;
Since A gave birth through C-section, she is entitled to one hundred
4. That the maternity benefits provided under this section percent (100%) of her average salary credit for seventy-eight (78)
shall be paid only for the first four (4) deliveries or days, provided she notifies her employer of her pregnancy and
miscarriages; the probable date of her childbirth, among others.591
5. That the SSS shall immediately reimburse the employer The same maternity benefits are ensured by Sec. 22 (b)(2) of the
of one hundred percent (100%) of the amount of the Magna Carta of Women."'
maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such Q: Jennifer, a receptionist at Company X, is covered by the SSS.
payment and legality thereof; and She was pregnant with her fourth child when she slipped in
the bathroom of her home and had a miscarriage. Meanwhile,
6. That if an employee member should give birth or suffer Company X neglected to remit the required contributions to
miscarriage without the required contributions having the SSS. Jennifer claims maternity leave benefits and sickness
been remitted for her by her employer to the SSS, or benefits. Which of these two may she claim?
without the latter having been previously notified by the
employer of the time of the pregnancy, the employer a. None of them;
shall pay to the SSS damages equivalent to the benefits b. Either one of them;
which said employee member would otherwise have
been entitled to.589 c. Only maternity leave benefits;
Q: A, single, has been an active member of the Social Security d. Only sickness benefits."'
System for the past 20 months. A: (a) Only maternity leave benefits.'"
She became pregnant out of wedlock and on her 7th month Q: Luisa is an unwed mother with 3 children from different
of pregnancy, she was informed that she would have to fathers. In 2004, she became a member of the Social Security
deliver the baby through caesarean section because of some System (SSS). That same year, she suffered a miscarriage of
complications. Can A claim maternity benefits? If yes, how a baby out of wedlock from the father of her third child. She
many days can she go on maternity leave? If not, why is she
not entitled?"'
A: Yes. The SSS Law does not discriminate based on the civil
status of a female member-employee. As long as said female
S91 R.A. No. 8282, Sec. 14-A.
592 R.A. No. 9710; Answers to Bar Examinations in Labor and Social Legislation,
UP Law Complex.
589 R.A. No. 11199, Sec. 14 (a). 593 BAR 2012.
590 BAR 2010. 594 R.A. No. 1161, Sec. 14-A (c).
ON LABOR LAW
wants to claim maternity benefits under the SSS Act. Is she Q: Who are the primary and secondary beneficiaries under
entitled to claim?595 the SSS Law?
A: Yes, Luisa is entitled to claim maternity benefits, provided that A: The primary beneficiaries are as follows:
she has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of her 1. Dependent spouse until he or she remarries;
miscarriage and has notified her employer of her pregnancy and the 2. Dependent legitimate, legitimated or legally adopted,
probable date of delivery.'" and illegitimate children, who are not yet 21 years of age.
The fact that Luisa is an unwed mother is of no moment since The secondary beneficiaries are as follows:
maternity leave can be availed of regardless of the civil status of
the woman who gave birth or suffered miscarriage or emergency 1. Dependent parents, in the absence of the primary
termination of pregnancy. beneficiaries;
2. Dependents and Beneficiaries 2. Any other person designated by the member as his/her
secondary beneficiary, in the absence of all the foregoing
Q: Who are considered dependents under the SSS Law? primary and secondary beneficiaries."'
A: The dependents shall be the following: Q: What is the share of dependent illegitimate children in
the benefits under the SSS Law?
1. The legal spouse entitled by law to receive support from
the member; A: Dependent illegitimate children shall be entitled to fifty
percent (50%) of the share of the legitimate, legitimated or
2. The legitimate, legitimated or legally adopted, and
legally adopted children. However, in the absence of the
illegitimate child who is unmarried, not gainfully
dependent legitimate, legitimated or legally adopted children of
employed, and has not reached twenty-one (21) years of
the member, his/her dependent illegitimate children shall be
age, or if over twenty-one (21) years of age, he is
entitled to one hundred percent (100%) of the benefits.'"
congenitally or while still a minor has been permanently
incapacitated and incapable of self-support, physically or Q: Gene is a married regular employee of Matibay Corporation.
mentally: and The employees and Matibay Corporation had an existing
3. The parent who is receiving regular support from CBA that provided for funeral or bereavement aid of
the member.59' l'15,000.00 in case of the death of a legal dependent of a
regular employee. His widowed mother, who had been living
4. with him and his family for many years, died; hence, he
claimed the funeral aid. Matibay Corporation denied the
claim on the basis that she had not been his legal dependent
595 BAR 2015.

596 R.A. No. 1161, Sec. 14-A. 598 R.A. No. 11199, Sec. 8(k).
597 R.A. No. 11199, Sec. 8 (e). 599 Id.
ON LABOR LAW
as the term legal dependent was defined by the Social B. GSIS Law (R.A. No. 8291)
Security Law.
1. Benefits; Coverage and Exclusions
a. Who may be the legal dependents of Gene under the
Social Security Law? Q: Who are required to become compulsory members of
the GSIS?
A: The legal dependents of Gene under the Social Security Law
are his: (a) legal spouse entitled by law to receive support 1. All government personnel, whether elective or appointive,
from him; (b) legitimate, legitimated or legally adopted, and irrespective of status of appointment, provided they are
illegitimate child who is unmarried, not gainfully employed, receiving fixed monthly compensation and have not reached
and has not reached twenty-one (21) years of age, or if over the mandatory retirement age of 65 years, are compulsorily
twenty-one (21) years of age, he is congenitally or while still covered as members of the GSIS and shall be required to pay
a minor has been permanently incapacitated and incapable of contributions.
self-support, physically or mentally: and (c) parent who is
2. However, employees who have reached the retirement age of
receiving regular support from him.'"
65 or more shall also be covered, subject to the following rules:
b. Is Gene entitled to the funeral aid for the death of his
An employee who is already beyond the mandatory
widowed mother? Explain your answer. 60'
retirement age of 65 shall be compulsorily covered and be
A: Yes, Gene is entitled to the funeral aid under the CBA for required to pay both the life and retirement premiums under
the death of his mother because the latter is his legitimate the following situations:
parent wholly dependent upon him for regular support for
a. An elective official who at the time of election to public
many years.
office is below 65 years of age and will be 65 years or
In Philippines Journalists, Inc. v. Journal Employees Union,' more at the end of his term of office, including the
the Supreme Court held that the coverage of the term legal period/s of his re-election to public office thereafter
dependent as used in a stipulation in a collective bargaining without interruption.
agreement (CBA) granting funeral or bereavement benefit to
b. Appointive officials who, before reaching the mandatory
a regular employee for the death of a legal dependent, if the
age of 65, are appointed to government position by the
CBA is silent about it, is to be construed as similar to the
President of the Republic of the Philippines and shall
meaning that contemporaneous social legislations have set.
remain in government service at age beyond 65.
This is because the terms of such social legislations are
deemed incorporated in or adopted by the CBA. c. Contractual employees including casuals and other employees
with an employee-government agency relationship are
also compulsorily covered, provided they are receiving
600 R.A. No. 11199, Sec. 8(e).

601 BAR 2017.
602
G.R. No. 192601, 03 June 2013.
ON LABOR LAW
fixed monthly compensation and rendering the required Q: Efrenia Reyes was a classroom teacher assigned by the
number of working hours for the month."' Department of Education, Culture, and Sports (DECS) in
Panitan, Capiz. She has been in the government service since
Q: State briefly the compulsory coverage of the Government 1951 up to November 1985 when she retired at 55 due to
Service Insurance Act."' poor health.
A: The following are compulsorily covered by the GSIS pursuant In March 1982, while she was teaching her Grade 1 pupils
to Sec. 3 of R.A. No. 8291. the proper way of scrubbing and sweeping the floor, she
accidentally slipped. Her back hit the edge of a desk. She
1. All employees receiving compensation who have not
later complained of weak lower extremities and difficulty in
reached the compulsory retirement age, irrespective of
walking. After an X-ray examination, she was found to be
employment status.
suffering from Pott's disease and was advised to undergo an
2. Members of the judiciary and constitutional commissions operation. In 1985, she filed with the GSIS a claim for
for life insurance policy. disability benefits under Presidential Decree No. 626, as
amended. The GSIS granted the claim and awarded Efrenia
Q: Who are excluded from compulsory coverage of the GSIS? permanent partial disability benefits.
A: The following employees are excluded from compulsory coverage: After she underwent a surgical operation on her spine in
November 1985, her condition worsened.
1. Uniformed personnel of the Armed Forces of the
Philippines (AFP), Philippine National Police (PNP), In 1990, Efrenia filed with the GSIS a petition for conversion
of her disability status to permanent total disabilities with
2. Bureau of Fire Protection (BFP) and Bureau of Jail
corresponding adjustment of benefits. GSIS denied the claim
Management and Penology (BJMP);
stating that after Efrenia's retirement, any progression of
3. Barangay and Sanggunian Officials who are not receiving her ailment is no longer compensable.
fixed monthly compensation;
Is the GSIS correct in denying the claim?Explain.606
4. Contractual Employees who are not receiving fixed
A: Considering that the disability of Reyes is work-connected,
monthly compensation; and
the provisions of the Labor Code dealing with employees'
5. Employees who do not have monthly regular hours of compensation should determine her right to benefits.
work and are not receiving fixed monthly compensation."'
According to said provisions, if any employee under permanent
partial disability suffers another injury which results in a compensable
disability greater than the previous injury, the State Insurance
Fund shall be liable for the income benefit of the new disability
even after her retirement.
603 Implementing Rules and Regulations of R.A. No. 8291.
604 BAR
2009.
605 606 BAR 1996.
Id.
ON LABOR LAW
Was Reyes still an "employee" for the purpose of applying the b. Secondary beneficiaries - the dependent parents and,
above provision of the Labor Code? subject to the restrictions on dependent children, the
legitimate descendants.60'
Liberally construing said provision, Reyes may be considered
still as an employee so that she could receive additional benefits Q: Pitoy Mondero was employed as a public school teacher
for the progression of her ailment. at the Marinduque High School from July 1, 1983 until his
untimely demise on May 27, 1997.
Q: What are the benefits available under the GSIS Law?
On April 27, 1997, a memorandum was issued by the school
A: The GSIS Law provides for life insurance benefits, retirement principal, which reads: "You are hereby designated to prepare
benefits, separation benefit, unemployment benefit, disability the MODEL DAM project, which will be the official entry of
benefits, survivorship/death benefits, and funeral benefits. or school the forthcoming Division Search for Outstanding
Improvised Secondary Science Equipment forTeachers to be
2. Dependents and Beneficiaries
held in Manila on June 4, 1997. You are hereby instructed to
Q: Who are the dependents under the GSIS Law? complete this MODEL DAM on or before the scheduled date
of the contest."
A: The dependents under the GSIS Law are the following:
Mordero complied with his superior's instruction and constructed
a. Legitimate spouse dependent for support upon the an improvised electric microdam, which he took home to
member or pensioner; enable him to finish it before the deadline. On May 27, 1997,
while working on the MODEL DAM Project in his house, he
b. Legitimate, legitimated, legally adopted child, including
came to contact with a live wire and was electrocuted. He
the illegitimate child, who is unmarried, not gainfully
was immediately brought to a clinic for emergency treatment
employed, not over the age of majority, or is over the
but was pronounced dead on arrival. The death certificate showed
age of majority but incapacitated and incapable of self-
that he died of cardiac arrest due to accidental electrocution.
support due to a mental or physical defect acquired prior
Pepay Palaypay (Pitoy Mordero's common-law wife for more
to age of majority; and
than twenty years) and a Pitoy Mondero Jr. (his only son)
c. Parents dependent upon the member for support."' filed a claim for death benefits with the Government Service
Insurance System (GSIS), which was denied on the ground
Q: Who are the beneficiaries under the GSIS Law? that Pitoy Mordeno's death did not arise out of and in the
course of employment and therefore not compensable because
A: The beneficiaries under the GSIS Law consists of primary
the accident occurred in his house and not in the school premises.
and secondary beneficiaries:
a. Is Pepay Palaypay entitled to file a claim for death benefits
a. Primary beneficiaries - legal dependent spouse until
with the GSIS? Why?
he/she remarries and the dependent children.
608
6" R.A. No. 8291, Sec. 2. Id
ON LABOR LAW
A: No, Pepay Palaypay is not entitled to file a claim for death benefits to be paid by one System shall be in proportion to the
benefits because she is not eligible to be a beneficiary of Pitoy number of contributions actually remitted to that System.'
Mondero being his common-law wife.
D. Disability and Death Benefits - Labor Code and Civil Code
Under Sec. 2 of R.A. 8291 or the GSIS Law, only a legal
dependant spouse can be considered a beneficiary of the member Q: What is the State Insurance Fund?
of the GSIS.
A: The State Insurance Fund, also known as the Employees
b. Is the cause of death of Pitoy Mordeno (cardiac arrest Compensation Insurance Fund (ECIF), was created under P.D.
due to accidental electrocution in his house) compensable? No. 626. It was established to carry out the State's policy to
Why? 609 promote and develop a tax-exempt employees compensation
program in which employees and their dependents, in the event of
A: Yes. To be compensable under the GSIS Law, the death work-related disability or death, may promptly secure adequate
need not be work connected.61° income, medical and other related benefits.
C. Limited Portability Law (R.A. No. 7699) Q: What is the Employees' Compensation Program?
Q: What does the Limited Portability Law provide? A: The Employees' Compensation Program is a government
program designed to provide a compensation package to public
A: It provides that a covered worker who transfers employment and private employees or their dependents in the event of work-
from one sector to another or is employed in both sectors, shall
related sickness, injury or death.6'3
have his creditable services or contributions in both Systems
credited to his service or contribution record in each of the Q: What are the agencies involved in the administration and
Systems and shall be totalized for purposes of old-age, disability, implementation of the Employees Compensation Program?
survivorship and other benefits in case the covered member does
not qualify for such benefits in either or both Systems without A: The agencies involved in the implementation of the Employees'
totalization: Provided, however, That overlapping periods of Compensation Program are the Employees' Compensation
membership shall be credited only once for purposes of totalization.6" Commission (ECC), GSIS and SSS.614
Q: Does the Limited Portability Law only cover contributions of Q: Who are covered by the Employees Compensation Program?
the employee?
A: The Employees' Compensation Program covers the following
A: All contributions paid by such member personally, and those employees:
that were paid by his employers to both Systems shall be
considered in the processing of benefits which he can claim from
either or both Systems: Provided, however, That the amount of
612 R.A. No. 7699, Sec. 4

609 Bar 1989. 613 Department of Labor and Employment, An Employer's Guide on the Employees'
610 R.A. No. 8291, Sec. 13. Compensation Program.
611
R.A. No. 7699, Sec. 3 614 Labor Code, Art. 182.
ON LABOR LAW
1. Private sector workers who are compulsory members of 2. Compensable Injuries

the SSS including sea-based Overseas Filipino Workers
(OFWs) and kasambahays. Employees shall be covered An injury is considered compensable when the same takes place
starting on the first day of their employment. within the period of employment, at a place where the employee
may reasonably be in the performance of his duties, and while he
2. Government sector employees who are mandatory is fulfilling those duties or engaged in doing something incidental
members of the GSIS, including uniformed personnel thereto, or where he is engaged in the furtherance of the
from the Armed Forces of the Philippines, Philippine employer's business.
National Police (PNP), Bureau of Jail and Management
Penology (BJMP), Bureau of Fire Protection (BFP), and An accident may be considered to have risen out of and in the
Philippine Coast Guard (PCG). course of employment when it happened:
3. Active self-employed members of the SSS.6'5 a. at the workplace;

b. while performing official functions;
Q: What are the benefits under the Employees' Compensation
Program? c. outside of the workplace, but performing an order/
instruction of the employer;
A: The benefits provided under the Labor Code include medical
benefits, temporary total disability benefit, permanent total d. when going to or coming home from work; while
disability benefit, permanent partial disability, death benefit, and ministering to personal comfort;
funeral benefit.
e. while in a company shuttle bus; or
Q: What are the conditions of compensability under the
f. during a company sponsored activity.
Employees' Compensation Program?
No compensation will be allowed to an employee or the
A: Any work-connected injury or sickness, resulting in disability
dependents if the injury, sickness, disability or death is due to:
or death of a covered employee is compensable under the
Employees' Compensation Program. a. intoxication;
1. Compensable Diseases b. willful intention to injure or kill himself or another; or
A sickness is considered compensable if the same is included in c. notorious negligence.'''
the ECC's List of Occupational Diseases and the conditions for its
compensability are met. If the conditions were not satisfied and/or Q: What are the benefits under the Employees' Compensation
the claimed ailment is not included in the list, proof must be Program?
shown that the risk of contracting the disease is increased by the
working conditions. This is known as the increased-risk theory. A: The following are the benefits under the Employees'
Compensation Program:
615Department of Labor and Employment-Bureau of Working Conditions, Handbook

on Workers' Statutory Monetary Benefits. 616 Id
ON LABOR LAW
1. Sickness/disability benefits — it is the disability, or the 4. Rehabilitation services/KaGabay Program (Katulong at

incapacity to work, which is being compensated and not Gabay sa Manggagawang May Kapansanan) — provision
the illness or the injury. There are three types of loss of of remedial treatment, vocational assessment and
income benefit, namely: preparation which is designed to meet the individual
needs of each handicapped employee to restore him to
a. Temporary total disability (TTD) — for a disability suitable employment and to help each person with work-
that prevents an employee from performing his work related disability (PWRD) to develop his/her mental,
for a continuous period not exceeding 120 days. The vocational or social potential. Availed directly at ECC
amount of daily income benefit shall be ninety once employee has an approved EC claim from the Systems.
percent (90%) of the employee's average daily
salary credit as determined by the Systems. Rehabilitation services may be in the form of any of the
following:
b. Permanent total disability (PTD) — a monthly income
benefit granted for disabilities, such as, but not a. medical-surgical management;
limited to, complete loss of sight of both eyes, loss
b. hospitalization;
and function loss of both limbs, and brain injury
resulting to imbecility or insanity. The amount of c. necessary appliances and supplies;
monthly income benefit for PTD shall be determined
by the Systems based on the average monthly salary d. physical restoration;
credit or average monthly compensation (AMSC/AMC). e. psychosocial counseling;
c. Permanent partial disability (PPD) — a monthly f. psychiatric evaluation;
income benefit is granted for disabilities that result
in physical loss (amputation) or functional loss of a g. skills training;
body part. The number of monthly pensions is based
on the corresponding body part loss or functional h. entrepreneur training;
loss, as provided under Article 193 of PD No. 626, i. hearing impairment evaluation;
as amended, and EC schedule of compensation.
j. visual impairment evaluation; and
2. Medical benefits — it includes reimbursement of the cost
of medicines for the illness or injury, payment to k. job referral.
providers of medical care, hospital care, surgical expenses,
and the costs of rehabilitation appliances and supplies. 5. Death benefit — the beneficiaries of the deceased employee
The medical services are limited to ward services of are entitled to an income benefit if the employee died as
hospitals duly accredited by the DOH. a result of a work-related injury or sickness. They shall
receive an income benefit paid at the beginning of the
3. Carers' allowance — a supplemental pension of P1,000/month month of death of the member and will continue for as
is provided to pensioners under the Employees' Compensation long as they are entitled thereto.
Program who suffer from work-connected PPD and PTD.
ON LABOR LAW
6. Funeral benefit — An amount of P30,000 may be granted definite and conclusive assessment of the fitness or disability rating
for the private and public sectors upon the death of an of the seafarer for their assessment to be considered as valid.
employee who died as a result of a work-related accident
Here, it is beyond dispute that the company-designated physician
or disease.
found that petitioner was fit to work. This was a valid assessment
7. For workers who contracted COVID-19 may avail of the and the seafarer may dispute this by referring to his own doctor,
following benefits: which he did. Petitioner's doctor, on the other hand, issued a
certification that merely stated that he was "unfit to work for a
a. Sickness/disability benefit; year yet. Needs physical therapy because of muscle atrophy."
b. Medical benefit; The Court finds that the assessment of the seafarer's doctor is not
definite because it failed to state the seafarer's fitness to work or
c. Death benefit; and indicate his disability grade. The assessment is invalid:5'9
d. Funeral benefit.6'7 Q: What is "Permanent Disability"?
Q: TRUE OR FALSE: The company-designated physicians' A: Permanent disability transpires when the inability to work
failure to issue a final and definite assessment within the 120- continues beyond 120 days, regardless of whether or not he loses
day period makes respondent entitled to permanent and total the use of any part of his body. On the other hand, total disability
disability benefits. means the incapacity of an employee to earn wages in the same
or similar kind of work that he was trained for, or is accustomed
A: True. The company-designated physicians' failure to issue a to perform, or in any kind of work that a person of his mentality
final and definite assessment within the 120-day period makes and attainments can do. It does not mean absolute helplessness."'
respondent entitled to permanent and total disability benefits. It
was no longer necessary for respondent to present evidence that Jurisprudence dictates that permanent total disability means
his illness is work-related and compensable because the law operates "disablement of an employee to earn wages in the same kind of
to declare respondent entitled to total and permanent disability work or work of a similar nature that he was trained for or
benefits after the company-designated physicians' failure to issue accustomed to perform, or any kind of work which a person of
a final and definite assessment within the 120-day period.'" his mentality and attainment can do.i621
Q: TRUE OR FALSE: The assessment alone made by the Q: What are the three requisites which a seafarer declared
company-designated physician is definite and conclusive to be suffering from a disability, whether permanent or
assessment of the fitness or disability rating of the seafarer. partial, must prove to establish his or her entitlement to
superior disability benefits under the CBA?
A: False. The foregoing shows that it is required for both the
company-designated physician and the third doctor to arrive at a
619 Mangubat v. Dalisay Shipping Corporation, G.R. No. 226385, 19 August 2019,
617 Id. 620 Loadstor International Shipping, Inc. v. Cawaling, G.R. No. 242725, 16 June 2021.
618 Jebsens Maritime v. Star Clippers, LTD., G.R. No. 213874, 19 June 2019. 621 C.F. Sarp Crew Management. Inc v. Daganato, G.R. No. 243399, 06 July 2022,
ON LABOR LAW
A: There are three (3) requisites which a seafarer declared to be Q: TRUE OR FALSE: The mere lapse of the 120-day period
suffering from a disability, whether permanent or partial, must under Article 198 (c) (1) of the Labor Code automatically
prove to establish his or her entitlement to superior disability benefits gives rise to a cause of action for a claim of permanent total
under the CBA: disability benefits.
1. The existence of the CBA; A: False. The mere lapse of the 120-day period under Article
198 (c) (1) of the Labor Code does not automatically give rise to
2. The seafarer's employment contract is covered by the a cause of action for a claim of permanent total disability benefits.
CBA, i.e., the CBA is in effect or had not yet lapsed at
the time of the seafarer's employment; and As provided for by Article 198 of the Labor Code, as amended,
temporary total disability lasting continuously for more than one
3. That the seafarer complied with the conditions stipulated hundred twenty days, shall be deemed total and permanent, except
in the CBA, i.e., prove that the seafarer's injury arose as otherwise provided for in the Rules."'
from an accident while on board the vessel.622
Q: What are the conditions that need to be satisfied for an

Q: How may a temporary total disability become permanent?
occupational or work-related disease and the resulting disability A: Temporary total disability only becomes permanent when:
or death to be compensable?
1. So declared by the company-designated physician within
A: For an occupational or work-related disease and the resulting the periods he/she is allowed to do so; or
disability or death to be compensable, all of the following conditions
must be satisfied: 2. Upon the expiration of the maximum 240-day medical
treatment period without a declaration of either fitness to
1. The employee's work and/ or the working conditions must work or the existence of a permanent disability."'
involve risk/s that caused the development of the illness;
Q: Can an employee based a claim for damages against his
2. The disease was contracted as a result of the employee's employer under Article 1711 of the Civil Code?
exposure to the described risks;
A: Article 1711 of the Civil Code has been deemed repealed
3. The disease was contracted within a period of exposure by the Labor Code."' In the case of Oceanmarine Resources
and under such factors necessary to contract it; and Corporation vs. Nedic,627 the Supreme Court laid down the
following guidelines for claims of disability benefits under the
4. There was no deliberate act on the part of the employee
Labor Code and the Civil Code:
to disregard the safety measures or ignore established
warning or precaution."' (1) For actions filed prior to the finality of Candano on 06 August
2007, Article 1711 of the Civil Code shall be considered to have
624
Singson v. Arktis Maritime Corp, G.R. No. 214542, 13 January 2021.
622 Dela Torre vs Twinslar Professional Protective Services, Inc., G.R. No. 239257, 625 Rodriguez v. Phil Transmarine Carriers, Inc, G.R. No. 218311, 11 October 2021.
21 June 2021. 626 New Civil Code, Art. 1711.
623 Social Security System v. Cuento, G.R. No. 225827, 28 July 2021. 627 Oceanmarine Resources Corporation vs. Nedic, G.R. No. 236263, 19 July 2002
ON LABOR LAW
been impliedly repealed by Title II, Book IV of the Labor Code. E. Claims of Seafarers; 2010 Standard Terms and Conditions
Thus, Article 1711 of the Civil Code cannot sustain any action for, Governing the Overseas Employment of Filipino Seafarers
or award of, indemnity Candano was not yet a binding precedent On-Board Ocean-Going Ships (Secs. 20, 32 and 32-A)
at the time these actions were filed. In Candano's absence, there
is no legal basis to give effect to a repealed provision of the Q: Will a seafarer who suffered a work-related injury or
Civil Code. illness still receive wages while on board?
(2) For actions filed during the applicability of Candano, i.e., from A: The employer shall continue to pay the seafarer his wages
its finality on 06 August 2007 until the finality of this Decision, during the time he is on board the ship.'29
Article 1711 of the Civil Code shall be given effect based on the
Candano ruling. Q: How much is the compensation payable to the seafarer's
beneficiaries in case of work-related death during the term of
(3) For actions filed after the finality of this Decision, Article 1711 his contract?
of the Civil Code shall not be given any effect since Article 1711
has been repealed by the Labor Code. Thus, Article 1711 of the A: The employer shall pay his beneficiaries the Philippine
Civil Code can no longer be used against employers to claim currency equivalent to the amount of Fifty Thousand US dollars
indemnity for work-related injury or death. (US$50,000) and an additional amount of Seven Thousand US
dollars (US$7,000) to each child under the age of twentyone (21)
Q: Can an employee claim damages against his employer but not exceeding four (4) children, at the exchange rate
under the Civil Code? prevailing during the time of payment."'
A: Apart from Article 1711, an employee can still claim for Q: Is a seafarer entitled to sickness allowance?
damages under the Civil Code based on the causal relationship
between the employer's act of negligence and the consequent A: The seafarer is entitled to sickness allowance from his
injury or death of the employee. employer in an amount equivalent to his basic wage computed
from the time he signed off until he is declared fit to work or the
However, employees or their heirs may choose between an action degree of disability has been assessed by the company-
for damages under the Civil Code or a claim for compensation designated physician."'
under the Labor Code. Upon electing a remedy, the employees or
their heirs shall be deemed to have waived the other remedy, save
for recognized exceptions, such as when "[t]he choice of the first
remedy was based on ignorance or mistake of fact, which nullifies
the choice as it was not an intelligent choice," or when there are
"supervening facts or developments occurring after [the claimant]
opted for the first remedy."628
629 2010 Standard Terms and Conditions Governing the Overseas Employment of
Filipino Seafarers On-Board Ocean-Going Ships, Section 20, A, 1.
Filipino Seafarers On-Board Ocean-Going Ships, Section 20 B.
628 m
ON LABOR LAW
Q: If a seafarer disembarked from the ship due to medical Q: TRUE OR FALSE: Failure of a seafarer to submit himself
reasons, what are the benefits of the employee? for medical examination within a three-day period post repatriation
would forfeit his right to claim disability benefits.
A: The employer shall bear the full cost of repatriation in the
event the seafarer is declared (1) fit for repatriation; or (2) fit to A: True. Section 20(A)(3) of the POEA-SEC requires a claiming
work but the employer is unable to find employment for the seafarer to submit himself for medical examination within a three-
seafarer on board his former ship or another ship of the employer.632 day period post repatriation. Malicdem reneged on his duty to
submit to a post-employment medical examination within three
Q: TRUE OR FALSE: The company-designated physician's (3) working days from his repatriation. As a consequence, he
assessment of the seafarer's disability is final. effectively forfeited his right to claim disability benefits under
the POEA-SEC.635
A: False. Settled is the rule that the company-designated physician
is tasked with assessing the seafarer's disability, whether total or Q: What are the elements in order for disability to be
partial, due to either injury or illness, during the term of the latter's compensable according to the POEA-SEC?
employment. However, his or her assessment is not automatically
final, binding, or conclusive on the claimant, the labor tribunal or A: For disability to be compensable under the above POEA-
the courts as its inherent merits would still be weighed and duly SEC, two elements must concur:
considered. Moreover, the seafarer has the right to dispute such
1) The injury or illness must be work-related; and
assessment by consulting his own doctor. In addition, in case of
disagreement between the findings of the company-designated 2) The work-related injury or illness must have existed
physician and the seafarer's doctor of choice, both parties may during the term of the seafarer's employment contract.
agree to jointly refer the matter to a third doctor whose decision
shall be final and binding on them."' It is not sufficient to establish that the seafarer's illness or injury
has rendered him permanently or partially disabled; it must also
Q: Is fraud a ground to disqualify a seafarer from any be shown that there is a causal connection between the seafarer's
disability compensation and benefits? illness or injury and the work for which he had been contracted."'
A: Yes. Section 20(E) of the 2000 POEA-SEC provides that Q: Marino, a seafarer, was engaged as an oiler on board
deliberate concealment by a seafarer of a pre-existing medical Searena Corporation's oil tanker vessel. After ten consecutive
condition in his PEME constitutes fraudulent misrepresentation contracts, with each contract having a duration of eight
which shall disqualify him from any disability compensation and months and the last one ending in December 2021, Marino
benefits."' decided it was time to enjoy his hard-earned money, and
disembarked from the vessel upon the expiration of his
employment contract. In April 2022, he felt excruciating pain
in his groin. He went to a doctor and was diagnosed with
633 CF. Shipp Crew Management v. Jimmy Jaicten, G.R. No. 208981, 01 February 2021. 635 Malicdem v. Asia Bulk Transport Phils, Inc., G.R. No. 224753, 19 June 2019.
634 Lerona v. Sea Power Shipping Entoprises. Inc, G.R. No. 210955, 14 August 2019. 636 Darroca v. Century illaritime Agencies, G.R. No. 234392, 10 November 2021.
ON LABOR LAW
acute hernia. The doctor also determined that the hernia was connection between the seafarer's illness or injury and the work
caused by repeated heavy lifting because of his work as for which he had been contracted.'"
an oiler.
Q: What are the requisites in determining a seafarer's
As a result, Marino filed a case against Searena Corporation medical condition?
before the Labor Arbiter, claiming total and permanent
disability under the POEA Standard Employment Contract. A: Two (2) requisites must concur for a determination of a
seafarer's medical condition: (a) an assessment must be issued
Searena Corporation raised in its position paper that Marino within the 120/240 window; and (b) the assessment must be final
is barred from filing the case as he did not raise any and definitive.
complaints during the term of his employment, and within
three days from his arrival in the country after his last In the case of Magadia v. Elburg Ship Management Phils, Inc.,G40 the
employment. Medical Report dated 3 October 2014 contained the following
observations: "The specialist opines that [the] patient [had]
If you were the Labor Arbiter, rule on Searena Corporation's already reached maximum medical treatment. If [the] patient is
defense. Explain briefly."' entitled to disability, his final disability grading is Grade 11 -loss
of 1/3 lifting power of the trunk."
A: Searena Corporation's defense is untenable because notice of
sickness shall be given to the employer by the employee or by There was nothing on record showing that the company-designated
his dependents or anybody on his behalf within five days from physician explained in detail the progress of Magadia's treatment
the occurrence of the contingency,638 not three days. and the approximate period needed for him to fully recover. Instead,
the medical report merely stated that Magadia suffered a disability
Nonetheless, the fact that Mariano contracted hernia after the
grading of 11 and that he had reached maximum medical care.
expiration of his contract bars him from claiming compensation
for his disability, even if it was medically determined that his Clearly, this is hardly the "definite and conclusive assessment of
hernia was work-related. the seafarer's disability or fitness to return to work" required by
law from the company-designated physician because Magadia, in
Two (2) elements must concur for disability to be compensable
fact, returned to the company-designated physician and underwent
under POEA Standard Employment Contract: (a) the injury or
further therapy which lasted for almost more than three (3) months
illness must be work-related; and (b) the work-related injury or
or until January 6, 2015.64'
illness must have existed during the term of the seafarer's
employment contract. It is not sufficient to establish that the
seafarer's illness or injury has rendered him permanently or
partially disabled; it must also be shown that there is a causal
639 Darroca v. Century Maritime Agencies, G.R. No. 234392, 10 November 2021.
BAR 2022. 640
637 G.R. No. 246497, 05 December 2019.
641
638 Labor Code, Art. 212. Magadia v. Elburg Ship Management Phils, Inc, G.R. No. 246497, 05 December 2019.
ON LABOR LAW
Q: TRUE OR FALSE: It is enough that disability of a System, Overseas Workers Welfare Administration, Employee's
seafarer is only alleged to be qualified of disability compensation Compensation Commission, Philippine Health Insurance Corporation
and benefits. and Home Development Mutual Fund (Pag-IBIG Fund).644
A: False. The assessment to be conclusive must be complete Q: What are the other liabilities of an employer in case a
and definite; otherwise, the medical report shall be set aside and seafarer dies as a result of a work-related injury or death
the disability grading contained therein shall be ignored. As case during the term of employment?
law holds, a final and definite disability assessment is necessary
in order to truly reflect the true extent of the sickness or injuries A: The other liabilities of the employer are as follows:
of the seafarer and his or her capacity to resume work as such.
a. The employer shall pay the deceased's beneficiary all
The law steps in and considers the seafarer's disability as total
outstanding obligations due the seafarer under this Contract.
and permanent when the company-designated physician fails to
arrive at a definite assessment of the seafarer's fitness to work or b. The employer shall transport the remains and personal
permanent disability within the prescribed periods and if the effects of the seafarer to the Philippines at employer's
seafarer's medical condition remains unresolved.'" expense except if the death occurred in a port where
local government laws or regulations do not permit the
Certainly, disability compensation cannot rest on mere allegations
transport of such remains. In case death occurs at sea,
couched in conjectures and baseless inferences from which work-
the disposition of the remains shall be handled or dealt
aggravation or relatedness cannot be presumed. "Bare allegations
with in accordance with the master's best judgment. In
do not suffice to discharge the required quantum of proof of
all cases, the employer/master shall communicate with
compensability. Awards of compensation cannot rest on speculations
the manning agency to advise for disposition of
or presumptions. The beneficiaries must present evidence to prove
seafarer's remains.
a positive proposition."'
c. The employer shall pay the beneficiaries of the seafarer
Q: Does a claim under the 2010 Standard Terms and the Philippine currency equivalent to the amount of One
Conditions Governing the Overseas Employment of Filipino Thousand US dollars (US$1,000) for burial expenses at
Seafarers On-Board Ocean-Going Ships preclude the seafarer the exchange rate prevailing during the time of payment.
from claiming other disability benefits under different laws
or compensation systems? Q: What are the conditions for an occupational disease and
the resulting disability or death to be compensable?
A: The benefits under 2010 Standard Terms and Conditions
Governing the Overseas Employment of Filipino Seafarers On- A: The following conditions must be satisfied:
Board Ocean-Going Ships shall be separate and distinct from,
and will be in addition to whatever benefits which the seafarer is 1. The seafarer's work must involve the risks described herein;
entitled to under Philippine laws from the Social Security
642 Mabalot v Maersk-Filipinas Crewing, Inc., G.R. No. 224344, 13 September 2021. Filipino Seafarers On-Board Ocean-Going Ships, Section 20 B 3.
643 Destriza v. Fair Shipping Corporation ,G.R. No. 203539, 10 February 2021.
ON LABOR LAW
2. The disease was contracted as a result of the seafarer's Is Yellow Manila correct?
exposure to the described risks;
A: No. Any illness complained of, and/or diagnosed during the
3. The disease was contracted within a period of exposure mandatory PEME under Section 20 (A) of the Philippine
and under such other factors necessary to contract it; and Overseas Employment Administration-Standard Employment
Contract (POEA-SEC) is deemed existing during the term of the
4. There was no notorious negligence on the part of the seafarer's employment, and the employer is liable therefor. This
seafarer. is true, regardless of whether the existing illness was the
Q: Jamie was hired by Yellow Manila to work as a cook in immediate cause of a medical repatriation. Likewise, it matters
not that there was no statement about Jamie's lower back pain in
M/V Kwintebank. As a cook, his duties involved carrying
the ship captain's report, or in the records of the offshore
heavy provisions on board the vessel. One day, Jamie
suffered pain in his umbilical area while he was carrying two hospital. Precisely, the law requires the conduct of a PEME
within 3 days upon repatriation because offshore hospitals are
sacks of potatoes. A few days later, he complained of
mostly concerned with emergency medical situations, and rarely
abdominal pain. He then brought to a hospital in Norway
provide a comprehensive assessment of the seafarer's actual
where he was diagnosed with constipation and umbilical
condition, or existing illnesses. It is also inconceivable why the
hernia. He was then medically repatriated. The following day,
the company-designated doctor conducted post-employment employer, in this case, referred the seafarer to undergo a PEME
if he still complains of, and is suffering from his back ailment.
medical examination (PEME) and ordered him to undergo
MRI of the lumbosacral spine. The result shows that he is Here, the company-designated physician only attended to Jamie's
suffering from disc desiccation/disc degenerative disease. A umbilical hernia. A surgery was performed to relieve him of his
few months later, Jamie had surgery for his umbilical hernia. abdominal pain. However, the company-designated physician
Despite that, his lower back pain persisted. The company- completely ignored Jamie's lower back pain despite his own
designated physician dismissed his lower back pain and initial recommendation for the conduct of a lumbosacral MRI,
attributed it to old age; thus, he was declared fit-to-work. and the subsequent finding that he indeed has back issues
Thereafter, Jamie requested Yellow Manila that his back consisting of broad-based herniated disc. The issuance of a fit-to-
pain be medically evaluated. However, his request was work certification to Jamie, without first addressing, or without
ignored prompting him to consult with his own doctor who any definite declaration as to his back ailment, is an abdication
found that his lower back pain was due to a "central broad- of the company-designated doctor's obligation under the POEA-
based disc herniation," a grade 8 disability under the POEA SEC. This effectively transforms the temporary total disability to
Contract. Jamie was declared unfit to resume his occupation permanent total disability, regardless of the disability grade.
on board the vessel. Thus, Jamie resorted to Voluntary
Arbitration and demanded payment of disability benefit Therefore, Jamie's ailment qualified him for payment of disability
from Yellow Manila. benefit even though it is not directly or necessarily connected to
the cause of his medical repatriation.645
Yellow Manila refused to acknowledge any liability from
Jamie's back ailment since he was only diagnosed as suffering
from constipation and umbilical hernia prior to his repatriation,
which was already medically resolved. "5 Blue Manila, Inc. v. Jamias, G.R. No. 230919 & 230932, 20 January 2021.
ON LABOR LAW
Q: In 2012, Cardo applied for shipboard employment with even makes such misrepresentation a just cause for termination
CEB Maritime. When he underwent Pre-Employment of employment.646
Medical Examination (PEME), he declared that he had no
history of any ailment other than a "Varicocelectomy" Q: Jose worked as chief cook on board a vessel for DP
operation in 2003. Thus, he was declared fit to work and was Manning. He suffered a knee injury while on board and was
deployed in November 2012. declared unfit for duties after examination. He then underwent
surgery and was medically repatriated on 12 December 2006.
Meantime, Cardo requested for medical attention after
experiencing sharp and intense pain on his lower back while On 15 December 2006, the company-designated surgeon
lifting heavy provisions. He was detected to be suffering from removed the sutures and scheduled Jose for post-surgery
"degeneration of spur lumbar verbae/increase of liver physical therapy sessions. By 14 February 2007, the company-
enzymes" and was repatriated in December 2012. He was designated doctor issued a final assessment that Jose was fit
also diagnosed with low back pain secondary to Disc Protrusion. to work. On 11 February 2009, Jose filed a complaint for
total disability benefits against DP Manning anchoring his
In March 2013, PAL Maritime discovered that Cardo claim on a medical certificate dated 18 May 2009 issued by
previously filed a claim for permanent and total disability his doctor diagnosing him with traumatic arthritis and
benefits for his low back pain with his former employer. As assessed him with permanent partial disability.
such, CEB Maritime discontinued Cardo's medical treatment
because of malicious concealment of a pre-existing illness. Will the complaint proper?
This prompted Cardo to seek medical attention from other A: No. Jose is bound by the company-designated doctor's
physicians which declared him unfit to work. Aggrieved, finding if there is failure to comply with the third-doctor referral
Dalisay filed before the Labor Arbiter a complaint against requirement.
CEB Maritime for permanent and total disability benefits
arguing that his illness is work-related and work-aggravated. Notably, Jose disregarded the provision on the joint appointment
of a third doctor. Under the POEA-SEC, a seafarer may contest
Will the Cardo's complaint prosper? the findings of the company-designated doctor by seeking a
A: No. Under Section 20 (A) of the 2010 Philippine Overseas second opinion from a doctor of his choice. In the event of
Employment Administration-Standard Employment Contract disagreement between the findings of the doctors, the parties
(POEA-SEC), a seafarer is entitled to several "compensation and shall jointly refer the matter to a third doctor, whose findings
benefits" for any work-related illness or injury that he may have will be final and binding. This referral to a third doctor has been
suffered during the term of the contract such as expenses for held by the Supreme Court to be a mandatory procedure because
medical treatment, sickness allowance and disability benefits. of the provision that it is the company-designated doctor whose
However, Section 20 (E) of the 2010 POEA-SEC is likewise assessment should prevail if there is no referral to a third doctor.647
explicit that a seafarer who "knowingly conceals a pre-existing
illness or condition" shall be disqualified from claiming "any
compensation and benefits." The rule seeks to penalize seafarers
who conceal material information in order to pass the PEME and "6PAL Maritime Corp. v. Dalisay, G.R. Nos. 218115 & 218170, 27 January 2021.
647Doehle-Philman Manning Agency Inc. v. Gatchalian, Jr., G.R. No. 207507, 17
February 2021.
ON LABOR LAW
In this case, Jose relied on the findings of the second doctor The disputable presumption of work-relatedness provided in
without referring the matter to a third doctor. The findings of the paragraph 4 of Section 20 of the Philippine Overseas Employment
second doctor were also made after the complaint was already filed. Administration-Standard Employment Contract (POEA-SEC)
arises only if or when the seafarer suffers from an illness or
Q: Bernardo was hired as an oiler by Company DJP on injury during the term of the contract and the resulting disability
board MV 2G2BT for nine (9) months from December 8, is not listed in Section 32 of the POEA-SEC. That paragraph 4
2011 to September 8, 2012. On 11 March 2012, Bernardo above provides for a disputable presumption is because the
experienced dizziness and suffered abdominal pain while injury or illness is suffered while working at the vessel. Thus, or
performing his duties inside the engine room. He reported stated differently, it is only when the illness or injury manifests
his symptoms and received medication, but his condition itself during the voyage and the resulting disability is not listed
persisted. Upon arrival at a port in Chile, Bernardo vomited in Section 32 of the POEA-SEC will the disputable presumption
blood and was taken to hospital. It was found that his kick in.
kidneys were not functioning well. He had dialysis thrice,
underwent surgery to remove stones in his bile duct, and was This is, a reasonable reading inasmuch as, at the time for the
confirmed for more than two (2) months. illness or injury manifests itself, the seafarer is in the vessel, that
is, under the direct supervision and control of the employer,
On 21 May 2012, Bernardo was medically repatriated and through the ship captain.
brought to Cebu Doctor's Hospital where he was diagnosed
with Severe Acute Cholangitis by the company-designated In instances where the illness manifests itself or is discovered
physician. It was declared that his medical condition not after the term of the seafarer's contract, the illness may either be
work-related. He was discharged from the hospital on 19 (1) an occupational illness listed under Section 32-A of the
June 2012. On 24, September 2012, Bernardo filed against POEA-SEC, in which case, it is categorized as a work-related
Company DJP a complaint for total and permanent disability illness if it complies with the conditions stated in Section 32-A,
benefits. Company DJP argued that Barnardo's illness was or (2) an illness not listed as an occupational illness under
not compensable as it was declared not work-related. Section 32-A but is reasonably linked to the work of the seafarer.
Is Bernardo entitled to his claim? For the first type, the POEA-SEC has clearly defined a work-
related illness as "any sickness as a result of an occupational
A: Yes. In Ventis Maritime Corporation v. Salenga,648 the disease listed under Section 32-A of this Contract with the
Supreme Court clarified that a seafarer's complaints for disability conditions set therein satisfied.
benefits arise from (1) injury or illness that manifests or is
discovered during the term of the seafarer's contract, which is In this case, Bernardo's employment contract is from December
usually while the seafarer is on board the vessel or (2) illness that 8, 2011 to September 8, 2012 or for a period of nine months. On
manifests or is discovered after the contract, which is usually March 11, 2012, Bernardo suffered pain and symptoms while he
after the seafarer has disembarked from the vessel. is on board the vessel. On May 21, 2012, Bernardo was
medically repatriated and was diagnosed with Severe Acute
Cholangitis two days after disembarkation. Clearly, Bernardo's
illness manifested or was discovered during the term of his
648 G.R. No. 238578, 8 June 2020 as cited in Bacabac v. NYK-FIL Shipmanagement,
Inc., G.R. No. 228550, 28 July 2021. contract. Applying the rules in Ventis case, Bernardo's medical
ON LABOR LAW
condition is disputably presumed as work-related although not Is the Labor Arbiter correct?
listed as an occupational disease. As such, it becomes incumbent
A: No. A seafarer may claim disability benefits arising from (1)
upon Company DJP to prove otherwise.649
an injury or illness that manifests, or is discovered during the
Q: June entered into a 9-month employment contract with term of the seafarer's contract, usually while the seafarer is still
Atlantic Ocean Manning to serve as a Fitter onboard MCT on board the vessel; or (2) an illness that manifests, or is
Del Monte. While overhauling an engine, the hose accidentally discovered after the contract, which is when the seafarer has
detached and hit his left eye. A few months after, he disembarked from the vessel. If the illness or injury falls under
collapsed while on duty. He was then referred to an offshore the first scenario, the procedure as to how the seafarer can legally
physician, Dr. Jenkins, in Texas, USA and underwent an demand the disability benefits from the employer/manning agency
MRI of his brain with attention to the left eye. His MRI under Section 20(A) of the 2010 POEA-SEC applies, which
results showed that he was suffering sinusitis, hyperlipidemia requires that the seafarer shall submit to a post-employment
and acute gastroduodenities. In the health insurance claim medical examination by a company-designated physician within
form, Dr. Jenkins indicated that June's illnesses were not 3 working days upon his return.
work-related.
It is undisputed that June reported to Atlantic Ocean Manning's
June was subsequently repatriated on the eighth month of office within two (2) days from repatriation and requested that he
his contract. He reported to the office of Atlantic Ocean be referred to a company-designated physician but his request
Manning two (2) days upon arrival and requested for medical was rejected. Whenever confronted by a positive assertion from
treatment. However, he was not referred to a company- the seafarer that he was able to comply with the 3-day obligation
designated physician. He then filed before the Labor Arbiter to report to the manning agency but was not referred to a
a complaint for payment of total disability benefits. Two (2) company-designated physician and a plain denial of the manning
months after filing the complaint, June sought the advice of agency, the seafarer's position is entitled more weight. The
Dr. Tan who diagnosed him with trauma to the left eye, burden to prove that the seafarer was referred to the company
hypertension and hypertensive arteriosclerotic cardiovascular physician falls on the employer and not the seafarer.656
disease and was declared unfit for duty as seaman.
Q: Noah Centineo was hired by SF Maritime as a mess
On the other hand, Atlantic Ocean Manning claimed that person on board a ship. While performing his job, Centineo
June came home as he finished his contract and that he failed fell from a ladder, which resulted to him losing consciousness
to submit himself to a post-employment medical examination and bleeding at the back of the head. Centineo was
and did not mention any medical condition during his repatriated to the Philippines on October 2, 2013.
debriefing.
SF Maritime referred Centineo to the company-designated
The Labor Arbiter dismissed the complaint for failure to physicians, Dr. Manhubat, Dr. Hao-Quan, Dr. Lim, and Dr.
comply with the mandatory 3-day reporting requirement for Agsoay. Almario was also referred to Dr. Chusuan, an
a post-employment medical examination. orthopedic surgeon, and Dr. Sumpio, a neurosurgeon. After
649 Bacabac v. NYK-FIL Shipmanagement, Inc., G.R. No. 228550, 28 July 2021. 659 Junio V Pacific Ocean Manning Inc., G.R. No. 220657, 16 March 2022.
ON LABOR LAW
the rehabilitation and weeks of treatment, Dr. Chusuan company-designated physician still fails to give his assessment
cleared Almario orthopedic-wise and by Dr. Sumpio from a within the 240 days, then the seafarer's disability becomes
neurosurgery standpoint. On 7 February 2014, Centineo permanent and total, regardless or any justification.
returned to Dr. Hao-Quan who determined him to be fit for
duty already. On the same date, Centineo signed a Certificate of The 120 days must be reckoned from the date of seafarer's
Fitness for Work, stating that he was "fit for duty." Dr. Hao- repatriation and the medical assessment must be final, conclusive
Quan also signed the certificate as a witness. and definite. The assessment must state whether the seafarer is
fit to work or the exact disability rating, or whether such illness
Centineo then consulted Dr. Magtira who declared that he is work-related and without any further condition or treatment.
lost pre-injury capacity and is permanently unfit to resume It should no longer require any further action on the part of
sea duties. Thereafter, Centenio filed a complaint against SK the physician.
Maritime for permanent total disability benefits.
Here, the final report by Dr. Hao-Quan was issued eight days
Is Centineo entitled to permanent total disability benefits? beyond the 120-day prescriptive period and failed to justify why
the assessment must be issued beyond the 120 days. The report
A: Yes. The company-designated physicians failed to issue a
also failed to explain the progress of Centineo's treatment and
valid medical assessment within 120 days from Centineo's
recovery period. Thus, his disability is deemed permanent and
repatriation. Consequently, Centineo's disability is considered
total upon the lapse of 120 days. The Certificate of Fitness for
permanent and total.
Work is not conclusive on Centineo's state of health, and a
In Elburg Shipmanagement Phil., Inc. v. Quioge, Jr.,651 the Supreme medical assessment that does not reflect the true extent of the
Court summarized the rules on the prescribed period for the seafarer's sickness or injury and their capacity to resume work is
company-designated physician to issue a final medical assessment incomplete and indefinite.652
and the consequence for failure to observe these periods: : (1) the
company-designated physician must issue a final medical Q: LM was hired as an assistant cook by Company CFS on
assessment on the seafarer's disability grading within a period of board a vessel. LM underwent a pre-employment medical
120 days from the time the seafarer reported to him; (2) if the examination (PEME) and when asked whether he had a
company-designated physician fails to give his assessment within previous medical condition, including ear trouble and
120 days, without any justifiable reason, then the seafarer's deafness, he ticked the box "No." However, his audiometry
disability becomes permanent and total; (3) if the company- results showed that he had mild hearing loss, as reflected in
designated physician fails to give his assessment within 120 days the PEME. Even so, he was found fit to work. One day, while
with a sufficient justification (e.g., seafarer required further carrying a box containing 50 kilograms of chicken meat, he
medical treatment or seafarer was uncooperative), then the felt a snap on his back and fell to the floor. On another
period of diagnoses and treatment shall be extended to 240 days. occasion, and without his back pain resolved, LM
The employer has the burden to prove that the physician has accidentally dropped a kilo of seasoning into a pot of boiling
sufficient justification to extend the period; and (4) if the soup while cooking, and the hot liquid splashed towards his
face and eyes. He was brought to a Croatian hospital and had
651G.R. No. 211882, 29 July 2015 as cited in Skanfil Maritime Services, Inc v.
Centeno, G.R. No. 227655, 27 April 2022. 652 Skanfil Maritime Services, Inc v. Centeno, G.R. No. 227655, 27 April 2022.
ON LABOR LAW
a CT scan of the brain and eye examination, which yielded remain liable for work-related injury or illness consistent with
normal results, but doctors suspected a clear vision disorder. their duties to provide a seaworthy ship and to take precautions
He was medically repatriated to the Philippines and had an to avoid the seafarer's accident or injury.
MRI of his lumbar spine and was advised to undergo
physical therapy. Later, he was readmitted to the hospital In this case, LM's prior ear illness is unrelated to his present
and was diagnosed with multiple sclerosis and blurring of medical condition. There is no proof that the ear condition
vision. He then underwent a series of examinations and caused or aggravated his multiple sclerosis and blurring vision.
therapies. Despite the therapies, he still had lower back pains The concealed illness must be connected with the illness or injury
which prompted him to undergo another MRI. At this point, suffered during the seafarer's contract and the concealment must
Company CFS stopped paying for LM's treatment. It had be fraudulent. The unrelatedness of LM's prior ear illness and
discovered that LM was earlier diagnosed with an ear illness his present medical conditions negates an intent to profit from
which he did not disclose during PEME. the concealment. Hence, LM is entitled to permanent total
disability benefits.
LM filed a complaint for permanent total disability benefits
and damages as he claimed that he was incapacitated to The Supreme Court has disallowed disability claims due to
perform his duties for more than 120 days and the company- fraudulent misrepresentation of a prior injury or illness in
designated physician failed to make a definitive assessment of previous cases. However, a review of these cases would show
his condition within the allowed period. that the seafarers' concealed prior injuries or illnesses were
related to their pending disability claims for injury or illness.
Company CFS countered that LM is disqualified from This is not the case here.653
claiming permanent total disability benefits because he
materially concealed a pre-existing medical condition in his
PEME. It asserted that Section 20€ of the 2010 POEA-SEC,
which disqualifies seafarers from claiming disability benefits
if they conceal their previous medical condition regardless of
whether it directly correlates with the disability suffered by
the seafarer, is applicable.
Is Company CFS correct?
A: No. Section 20 (E) of the 2010 POEA-SEC is applicable if
the following conditions are met: (1) the seafarer is suffering
from a pre-existing illness or injury as defined under Item 11 (b)
of the 2010 POEA-SEC; (2) the seafarer intentionally concealed
the illness or injury; and (3) the concealed pre-existing illness or
injury has a causal or reasonable connection with the illness or
injury suffered during the seafarer's contract. It is enough that
the concealed illness or injury contributed to the seafarer's
disability. In the absence of these conditions, the employers 653
Mulia v. C.F. Sharp Crew Mgt, Inc., G.R. No. 242928, 27 June 2022.
MANAGEMENT.PREROGATIVE 287
management prerogative includes the right to terminate the services

VI. Management Prerogative of an employee but this management prerogative is limited by
the Labor Code which provides that the employer can terminate
Q: What is the doctrine of management prerogative? an employee only for a just cause or when authorized by law.
A: Under the doctrine of management prerogative, employers This limitation on management prerogative is because no less
enjoy a wide sphere of authority to regulate its own business, than the Constitution recognizes and guarantees an employee's
subject to limitations imposed by labor laws and the principles of right to security of tenure.65"
equity and substantial justice. Thus, an employer may determine
Q: Harbor View Hotel has an existing Collective Bargaining
work assignments and corollary, transfer or reassign employees
Agreement (CBA) with the union of rank-and-file employees
around various areas of its business operation according to its
consisting, among others, of bartenders, waiters, roomboys,
sound judgment, provided that the transfer is not unreasonable,
housemen and stewards. During the lifetime of the CBA,
inconvenient, prejudicial, or involve a demotion in rank or a
Harbor View Hotel, for reasons of economy and efficiency,
diminution of salaries, benefits, and other privileges.654
decided to abolish the position of housemen and stewards who
Q: What are the limitations on the employer's exercise of its do the cleaning of the hotel's public areas. Over the protest
management prerogative? of the Union, the Hotel contracted out the aforementioned
job to the City Service Janitorial Company, a bona fide
A: The following are the limitations on the exercise of independent contractor which has a substantial capital in the
management prerogative: form of janitorial tools, equipment, machineries and competent
manpower. Is the action of the Harbor View Hotel legal and valid?
1. The limitations found in law, collective bargaining agreement
or the general principles of fair play and justice;655 and A: The action of Harbor View Hotel is legal and valid. The Supreme
Court ruled that regulation of manpower by the employer clearly
2. The limitations imposed by labor laws and the principles falls within management prerogative. Except as provided for, or
of equity and substantial justice."' limited by, special laws, an employer is free to regulate, according
Q: Which takes precedence in conflicts arising between to his own discretion and judgment, all aspects of employment,
employers' management prerogative and the employees right from hiring, work assignments, working methods, time, place
to security of tenure? and manner of work, tools to be used, processes to be followed,
supervision of workers, working regulations, transfer of employees,
A: The employee's right to security of tenure takes precedence work supervision, lay-off of workers, and the discipline, dismissal
over the employer's management prerogative. Thus, an employer's and recall of workers. Company policies and regulations are,
unless shown to be grossly oppressive or contrary to law, generally
binding and valid on the parties and must be complied with until
654
Magante v. Wellcare Clinics and Lab, Inc., G.R. No. 242498, 06 October 2021.
655 Goya, Inc. v. Goya, Inc Employees Union-FFW, G.R. No. 170054, 21 January 2013.
656 Magante
v. Wellcare Clinics and Lab, I77C., G.R. No. 242498, 06 October 2021.
286 657 Labor Code, Art. 279; CONST., Art. X111, Sec. 3.
288 COMPENDIOUS BAR REVIEWER MANAGEMENT' PREROGATIVE 289
ON LABOR LAW
finally revised or amended unilaterally or preferably through employees covered by the CBA. The Union wrote BMH
negotiation or by competent authority."' demanding that the Revised Rules and Regulations be first
discussed with them before its implementation. BMH
Q: Flight attendant A, five feet and six inches tall, weighing refused. So the Union filed an action for unfair labor practice
170 pounds ended up weighing 220 pounds in two years. (ULP) against BMH.
Pursuant to the long-standing Cabin and Crew Administration
Manual of the employer airline that set a 147-pound limit for a. Is the Union correct?
A's height, management sent A a notice to "shape up or ship
b. Assuming that the CBA was signed or executed before
out" within 60 days. At the end of the 60-day period, A reduced
the 1987 Constitution was ratified, would your answer to
her weight to 205 pounds. The company finally served her a
the preceding question be different?"'
Notice of Administration Charge for violation of company
standards on weight requirements. Should A be dismissed? A:
Explain."'
a. The Union is correct. Article 255 of the Labor Code provides
A: Yes. As held by the Supreme Court, employment in that any provision of law to the contrary notwithstanding,
particular jobs may not be limited to persons of a particular sex, workers shall have the right, subject to such rules and regulations
religion, or national origin unless the employer can show that as the Secretary of Labor and Employment may promulgate,
sex, religion, or national origin is an actual qualification for to participate in policy and decision-making processes of the
performing the job. The qualification is called a bona fide establishment where they are employed insofar as said processes
occupational qualification (BFOQ). The primary objective of will directly affect their rights, benefits and welfare.
airlines in the imposition of the weight standards for cabin crew
is flight safety. Flight attendants must maintain agility at all Further, the Supreme Court ruled that such provision in the
times in order to inspire passenger confidence on their ability to collective bargaining agreement may not be interpreted as
care for the passengers when something goes wrong.660 cession of employees' rights to participate in the deliberation
of matters which may affect their rights and the formulation
Q: Bulacan Medical Hospital (BMH) entered into a Collective of policies relative thereto. And one such matter is the formulation
Bargaining Agreement (CBA) with its Union, wherein it is of a code of discipline. Indeed, industrial peace cannot be
expressly stipulated in the Management Prerogative Clause achieved if the employees are denied their just participation
that BMH shall, in the exercise of its management in the discussion of matters affecting their rights.'"
prerogatives, have the sole and exclusive right to promulgate,
b. The answer to the preceding question would be the same
amend and modify rules and regulations for the employees
even if the CBA was signed or executed before the 1987
within the bargaining unit. A year after the contract was
Constitution was ratified. The Supreme Court has ruled that
signed, BMH issued its Revised Rules and Regulations and
while such "obligation" was not yet founded in law, the
furnished a copy thereof to the Union for dissemination to all
attainment of a harmonious labor-management relationship
658 San Miguel Corporation v. Ubaldo, et al., G.R. No. 92859, 01 February 1993. 661 BAR 1994.
662
659 BAR 2010. Philippine Airlines, Inc. v. National Labor Relations Commission, et al., G.R.
669 Yrasuegui v. Philippine Airlines, Inc., G.R. No. 168081, 17 October 2008. No. 85985, 13 August 1993.
290 COMPENDIOUS BAR REVIEWER MANAGEMENT PREROGATIVE 291
ON LABOR LAW
and the then already existing state policy of enlightening workers meantime that the issues raised and the proofs presented by
concerning their rights as employees demand no less than the the contending parties have not yet been finally resolved."'
observance of transparency in managerial moves affecting However, since the reinstatement does not restore the status
employees' rights."' quo as he is required to comply with his new assignment,
such reinstatement is not legally correct.
Q: Bobby, who was assigned as company branch accountant
in Tarlac where his family also lives, was dismissed by Theta b. I would advise Bobby that the best course of action would be
Company after anomalies in the company's accounts were to allege constructive dismissal and pray for either reinstatement
discovered in the branch. Bobby filed a complaint and was or separation pay in lieu of reinstatement.
ordered reinstated with full backwages after the Labor Arbiter
found that he had been denied due process because no A. Occupational Qualifications
investigation actually took place.
Q: What is the Bona Fide Occupational Qualifications Rule?
Theta Company appealed to the National Labor Relations
A: The Bona Fide Occupational Qualifications Rule provides
Commission (NLRC) and at the same time wrote Bobby,
advising him to report to the main company office in Makati that a particular sex, religion, or national origin is an actual
where he would be reinstated pending appeal. Bobby refused qualification for performing the job. Employment may not be
to comply with his new assignment because Makati is very limited to persons of a particular sex, religion, or national origin
far from Tarlac and he cannot bring his family to live with unless the employer show that such is an actual qualification for
him due to the higher cost of living in Makati. performing the job.666
a. Is Bobby's reinstatement pending appeal legally correct? Q: What must the employer prove to justify a bona fide
occupational qualification?
b. Advise Bobby on the best course of action to take under
the circumstances."' A: The employer must prove the following:
A: 1. The employment qualification is reasonably related to

the essential operation of the job involved; and
a. The reinstatement pending appeal is not legally correct. The
Supreme Court has ruled that, under the Labor Code, an 2. There is a factual basis for believing that all or
order of reinstatement by the Labor Arbiter is immediately substantially all persons meeting the qualification would
executory even pending appeal. Reinstatement is the restoration be unable to properly perform the duties of the job."'
to a state or condition from which one has been removed or
separated. The intent of the law in making a reinstatement
order immediately executory is much like a return-to-work
order, i.e., to restore the status quo in the workplace in the
665 Composite Enterprises, Inc. v. Caparoso, et al, G.R. No. 159919, 08 August 2007.
663 Id.; Labor Code, Art. 211. 666 Yrasuegui v. Philippine Airlines, Inc., G.R. No. 16808, 17 October 2008.
664 BAR 2013. 667 Star Paper v. Simbol, G.R. No. 164774, 12 April 2006.
292 COMPENDIOUS BAR REVIEWER MANAGEMENT.PREROGATIVE 293
ON LABOR LAW
Q: What must the employer prove to justify the prohibition A: Yes. Employers have the prerogative to impose productivity
on marriage to employees of competitor companies? and quality standards at work."' They may also impose reasonable
rules to ensure that the employees comply with these standards.672
A: The prohibition must be reasonable under the circumstances
as such relationships might compromise the interests of the company. Failure to comply may be a just cause for their dismissa1.673
The employer possesses the right to protect its economic interests.668 Certainly, employers cannot be compelled to retain the services
of an employee who is guilty of acts that are inimical to the
Q: A was working as a medical representative of RX interest of the employer.674
Pharmaceutical Company when he met and fell in love with
B, a marketing strategist for Delta Drug Company, a competitor The practice of a company in laying off workers because they
of RX. On several occasions, the management of RX called failed to make the work quota has been recognized in this
A's attention to the stipulation in his employment contract jurisdiction. Failure to meet the sales quota assigned to each of
that requires him to disclose any relationship by consanguinity them constitutes a just cause of their dismissal, regardless of the
or affinity with co-employees or employees of competing permanent or probationary status of their employment. This
companies in light of a possible conflict of interest. A seeks management prerogative of requiring standards may be availed
your advice on the validity of the company policy. What of so long as they are exercised in good faith for the
would be your advice?"' advancement of the employer's interest."'
A: I would advise A that the company policy is valid. It is a Q: Union "X" is the majority union of the rank-and-file
legitimate business practice to guard business confidentiality and employees at Slipper Mart Company. It amended its by-laws
protect a competitive position by even-handedly disqualifying to include among the obligations of its members "to refuse to
from jobs male and female applicants or employees who are married work with non-union members." Slipper Mart wants the
to a competitor.670 However, I would also advise A that the policy amendment to be declared null and void considering that not
does not apply to his relationship as it only requires disclosure of all its rank-and-file employees belong to Union "X" and its
relationships by consanguinity or affinity. enforcement will cause work stoppage in the company. Give
your opinion on the validity of the amendment.'
B. Productivity Standards
A: The amendment is invalid. The Supreme Court ruled that
Q: May an employer impose productivity standards for its workers? Article 249(a) of the Labor Code makes it an unfair labor
practice for a labor organization to 'restrain or coerce employees
671 Sameer Overseas Placement .4gency, Inc. v. Cabiles, G.R. No. 170139, 05
August 2014, citing Leonardo v. National Labor Relations Commission, 389 Phil.
118, 126-127 (2000).
672 Id
668 Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., 673 Id.
G.R. No 162994, 17 September 2004. 674 Id., citing San .VIiguel Corporation v. Ubaldo, G.R. No. 92859, 01 February
669
BAR 2010. 1993.
670
Duncan Association of Detailman-Ptgwo v. Glaxo Wellcome Philippines, Inc., 675 Leonardo v. National Labor Relations Commission, G.R. No. 125303, 16 June 2000.
G.R. No 162994, 17 September 2004. 676 BAR 1989.
ON LABOR LAW
in the exercise of their rights to self-organization' 5' The Vigilant Union, the rank-and-file bargaining agent, charged
provision of the by-laws of the union that made it among the the company with unfair labor practice on the ground that
obligations of its members "to refuse to work with non-union (1) no consultations had been made on who would render
members" has the effect of restraint or coercion on the overtime work; and (2) the unilateral overtime pay rate
employees' right to self-organization as it would compel Slipper reduction is a violation of Article 100 (entitled Prohibition Against
Mart to compel its employees to join Union "X". Elimination or Diminution of Benefits) of the Labor Code.
C. Change of Working Hours Is the union's position meritorious?'
Q: What is the employer's right to change working hours? A: The union's position is not meritorious regarding the charge
of unfair labor practice on the ground that no consultations had
A: Management retains the prerogative, whenever exigencies of been made on who would render overtime work. Under the doctrine
the service so require, to change the working hours of its employees. of management prerogative, every employer has the inherent
So long as such prerogative is exercised in good faith for the right to regulate, according to his own discretion and judgment,
advancement of the employer's interest and not for the purpose all aspects of employment, including hiring, work assignments,
of defeating or circumventing the rights of the employees under working methods, the time, place and manner of work, work
special laws or under valid agreements, the court will uphold supervision, transfer of employees, lay-off of workers, and discipline,
such exercise.678 dismissal, and recall of employees.680 It is the management's
prerogative as to who shall render overtime work.
Q: Inter-Garments Co. manufactures garments for export
and requires its employees to render overtime work ranging However, the union's position is meritorious regarding the charge
from two (2) to three (3) hours a day to meet its clients' of unfair labor practice on the ground that there was a diminution
deadlines. Since 2009, it has been paying its employees on of benefits. Article 100 of the Labor Code provides that benefits
overtime an additional 35% of their hourly rate for work of employees may not be withdrawn unilaterally by the
rendered in excess of their regular eight (8) working hours. employer. The Supreme Court has ruled that the grant of benefits
must have been practiced over a long period of time, and it must
Due to the slowdown of its export business in 2012, Inter- have been given by the company consistently and deliberately.
Garments had to reduce its overtime work; at the same time, As the benefit has been granted for three years, it can no longer
it adjusted the overtime rates so that those who worked overtime be unilaterally withdrawn."'
were only paid an additional 25% instead of the previous
35%. To replace the workers' overtime rate loss, the company
granted a one-time 5% across-the-board wage increase.
677 Mendoza v. Officers of Manila Water Employees Union, G.R. No. 201595, 25
January 2016. 679 BAR 2013.
678 Sime Darby Pilipinas Inc. v. National Labor Relations Commission, G.R. No. 689 Rural Bank of Cantilan, Inc. v. Julve, G.R. No. 169750, 27 February 2007.
119205, 15 April 1998. 681
Sevilla Trading v. Semana, G.R. No. 152456, 28 April 2004.
ON LABOR LAW
D. Transfer of Employees transfer is not a valid reason to disobey an order of transfer.684

Such being the case, the employee cannot adamantly refuse to
Q: Is transfer of employees valid? abide by the order of transfer without exposing himself to the
A: Yes. In the pursuit of its legitimate business interest, risk of being dismissed."'
management has the prerogative to transfer or assign employees Q: Does the employer have the right to demote an employee?
from one office or area of operation to another — provided there
is no demotion in rank or diminution of salary, benefits, and A: Yes. An employee may be demoted due to his failure to
other privileges; and the action is not motivated by discrimination, observe proper diligence in his work, and also because of his
made in bad faith, or effected as a form of punishment or indolence, habitual tardiness, and absences."'
demotion without sufficient cause. The right of employees to
security of tenure does not give them vested rights to their Q: Potenciano was hired as an accountant-bookkeeper by
positions to the extent of depriving management of its AB Corporation. He was promoted several times and was
prerogative to change their assignments or to transfer them.'" transferred to several branches. After seven years of being
stationed in the main office in Cebu City, AB Corporation
Q: What must the employer prove so the transfer does not informed Potenciano that he will be reporting in Bacolod
constitute constructive dismissal? City and later on, in Tagbilaran City. Because of his continued
refusal to be transferred due to "parental obligations, expenses,
A: The employer must be able to show: and the anguish that would result if he is away from his
a) The transfer is not unreasonable, inconvenient, or family," Potenciano was dismissed by AC Corporation. Was
prejudicial to the employee; and Potenciano validly dismissed?'"
b) It does not involve a demotion in rank or a diminution of A: Yes. The refusal to obey a valid transfer order constitutes
his salaries, privileges, and other benefits. willful disobedience of a lawful order of an employer. Employees
may object to, negotiate and seek redress against employers for
Should the employer fail to overcome this burden of proof, the rules or orders that they regard as unjust or illegal. However,
employee's transfer shall be tantamount to constructive until and unless these rules or orders are declared illegal or
dismissal.'"
Q: May an employee object to his employer's order of

transfer because such transfer will cause him/her personal
inconvenience and hardship?
6" Best Wear Garments v. De Lemos, G.R. No. 191281, 05 December 2012; See
A: No. The Supreme Court has held that the objection to the also Mercury Drug Corporation v. Domingo, G.R. No. 143998, 29 April 2005, 457
transfer being grounded solely upon the personal inconvenience SCRA 578, 592, citing Phil. Telegraph and Telephone Corp. v. Laplana, G.R. No.
or hardship that will be caused to the employee by reason of the 76645, 23 July 1991.
685 Pharmacia and Upjohn, Inc. (now Pfizer Philippines, Inc.) v. Albayda Jr., G.R.
No. 172724, 23 August 2010.
686 Petrophil Corporation v. National Labor Relations Commission, et al., G.R. No.
682 Coca-Cola Bottlers Philippines, Inc. v. Del Villar, G.R. No. 163091, 06 October 2010. L-64048, 29 August 1986.
683 Blue Dairy Corporation v. NLRC, G.R. No. 129843, 14 September 1999. 687 Allied Banking Corp. v. Court of Appeals, G.R. No. 144412, 18 November 2003
298 COMPENDIOUS BAR REVIEWER MANAGEMENT. PREROGATIVE 299
ON LABOR LAW
improper by competent authority, the employees ignore or and fair play. There must be no showing that it is unnecessary,
disobey them at their peril.688 inconvenient, and prejudicial to the displaced employee.' The
forceful transfer and the unsatisfactory evaluations that followed
In Allied Banking Corp. v. Court of Appeals,689 it was held that
were clearly done with abuse of discretion, hence she was
the employee's continued refusal to obey the employer's transfer
illegally dismissed.
orders constitutes a just cause for dismissal in accordance with
Article 282(a) of the Labor Code. The Supreme Court made a E. Discipline of Employees
distinction between a transfer from the Philippines to an overseas
post and a transfer from one city to another within the Q: What is the reasonable proportionality rule?
Philippines. Citing Homeowners Savings and Loan Association,
Inc. v. NLRC,690 the High Court upheld the transfer from one city A: Reasonable proportionality rule means that infractions committed
to another within the country as valid as long as there is no bad by an employee should merit only the corresponding sanction
faith on the part of the employer. demanded by the circumstances. The penalty must be commensurate
with the gravity of the offense, the act, conduct, or omission
Q: Din Din is a single mother with one child. She is employed imputed to the employee and imposed in connection with the
as a sales executive at a prominent supermarket. She and her employer's disciplinary authority.6"
child live in Quezon City and her residence and workplace
are a 15-minute drive apart. One day, Din Din is informed by Q: What is the employer's right to discipline?
her boss that she is being promoted to a managerial position A: The employer's right to discipline, in general, is the prerogative
but she is now being transferred to Visayas. Din Din does not of the employer to discipline its employees and to impose
want to uproot her family and refuses the offer. Her boss is appropriate penalties on erring workers pursuant to company rules
so humiliated by Din Din's refusal of the offer that she gives and regulations.6" Among the employer's management prerogatives
Din Din successive unsatisfactory evaluations that result in is the right to prescribe reasonable rules and regulations necessary
Din Din being removed from the supermarket. or proper for the conduct of its business or concern, to provide
Din Din approaches you, as counsel, for legal advice. What certain disciplinary measures to implement said rules and to
would you advise her?69' assure that the same would be complied with."'
A: I will advise Din Din that she should file a complaint for F. Grant of Bonuses and Other Benefits
illegal dismissal against her boss and the supermarket. The Supreme
Court ruled that although it is the prerogative of management to Q: What is a bonus?
transfer an employee from one office to another within the A: According to jurisprudence, a bonus is an amount granted
business establishment, such must be exercised without grave and paid to an employee for his industry and loyalty which
abuse of discretion and putting to mind the basic elements of justice
692
Pfizer, Inc., et al v. Velasco, G.R. No. 177467, 09 March 2011.
688 Allied Banking Corp. v. Court of Appeals, G.R. No. 144412, 18 November 2003. 693 Manila Memorial Park Cemetery v. Panado, G.R. No. 167118, 15 June 2006.
689 G.R. No. 144412, 18 November 2003. 694 Deles, Jr. v. National Labor Relations Commission, et al., G.R. No. 121348, 9
690 G.R. No. 97067, 26 September 1996. March 2000.
691 BAR 2015. 695 St. Luke's Medical Center, Inc. v. Sanchez, G.R. No. 212054, 11 March 2015.
ON LABOR LAW
contributed to the success of the employer's business and made continue giving the benefits knowing fully well that said employees
possible the realization of profits. It is an act of generosity are not covered by the law requiring payment thereof.700
granted by an enlightened employer to spur the employee to
greater efforts for the success of the business and realization of Q: The projected bonus for the employees of Suerte Co. was
bigger profits. The granting of a bonus is a management 50% of their monthly compensation. Unfortunately, due to
prerogative, something given in addition to what is ordinarily the slump in the business, the president reduced the bonus to
received by or strictly due the recipient.G96 5% of their compensation. Can the company unilaterally
reduce the amount of bonus? Explain briefly.70'
Q: Can employees demand bonuses?
A: Yes, the company can unilaterally reduce the amount of
A: As a general rule, employees cannot demand bonuses as a bonus. According to the Supreme Court, granting of bonuses is
matter of right. It is a management prerogative given in addition an act of generosity granted by an enlightened employer to spur
to what is ordinarily received by or strictly due to recipient.697 the employee to greater efforts for the success of the business
and realization of bigger profits. The granting of a bonus is a
However, a bonus is demandable and enforceable when it is stipulated management prerogative, something given in addition to what is
in an employment contract or collective bargaining agreement or ordinarily received by or strictly due the recipient.702 As
when the grant of bonus is a company policy or practice.698 consistently held by the Supreme Court, a bonus is not a
A bonus may also be demandable when it is granted as an additional demandable and enforceable obligation.703
compensation which the employer agreed to give without any
Q: Lito was anticipating the bonus he would receive for
condition and, thus, must be deemed part of wage or salary.699
2013. Aside from the 13th month pay, the company has been
Moreover, bonus may be granted on equitable considerations as awarding him and his other co-employees a two (2) to three
when the giving of such bonus has been the company's long and (3) months bonus for the last ten (10) years. However,
regular practice. To be considered a "regular practice," however, because of poor over-all sales performance for the year, the
the giving of the bonus should have been done over a long period company unilaterally decided to pay only a one-month bonus
of time and must be shown to have been consistent and in 2013. Is Lito's employer legally allowed to reduce the bonus?"'
deliberate. The test or rationale of this rule on long practice
A: Yes, Lito's employer is legally allowed to reduce the bonus.
requires an indubitable showing that the employer agreed to
A bonus is an act of generosity granted by an enlightened
employer to spur the employee to greater efforts for the success
of the business and realization of bigger profits. The granting of
700
Philippine Appliance Corp. (PHIL.4COR) v. Court of Appeals, G.R. No. 149434,
696
Producers Bank of the Phils. v. National Labor Relations Commission, G.R. No. 03 June 2004.
100701, 28 March 2001. 701 BAR 2002.
697 Producers Bank of the Phil. v. National Labor Relations Commission, G.R. No. "2 Producers Bank of the Phils. v. National Labor Relations Commission, G.R. No.
100701, 28 March 2001. 100701, 28 March 2001.
698
Manila Electric Company v. Secretary ofLabor, G.R. No. 127598, 27 January 1999. 703 Philippine Appliance Corp. (PHILACOR) v. Court of Appeals, G.R. No. 149434,
699
Atok Big Wedge Mining Co., Inc. v. Atok Big Wedge Mutual Benefit Association, 03 June 2004.
G.R. No. L-5276, 03 March 1953. 7°4 BAR 2014.
302 COMPENDIOUS BAR REVIEWER MANAGEMENT' PREROGATIVE 303
ON LABOR LAW
a bonus is a management prerogative, something given in addition After learning that FEB had modified the bonus scheme, she
to what is ordinarily received by or strictly due the recipient. objected. Is Katrina's objection justified? Explain.706
Thus, a bonus is not a demandable and enforceable obligation,
except when it is made part of the wage, salary or compensation A: Katrina's objection is justified. The Supreme Court has held
of the employee."' that permitting reduction of work and pay at the slightest indication
of losses would be contrary to the State's policy to afford protection
Q: Far East Bank (FEB) is one of the leading banks in the to labor and provide full employment. Certainly, the management
country. Its compensation and bonus packages are top of the has the prerogative to come up with measures to ensure profitability
industry. For the last six (6) years, FEB had been providing or loss minimization. However, such privilege is not absolute.
the following bonuses across-the-board to all its employees: Management prerogative must be exercised in good faith and
with due regard to the rights of labor.70' Further, although a
(a) 136 month pay; bonus is not a demandable and enforceable obligation, it may
(b) 14th to 18th month pay; nevertheless be granted on equitable considerations as when the
giving of such bonus has been the company's long and regular
(c) Christmas basket worth P6,000; practice. To be considered a "regular practice," however, the
giving of the bonus should have been done over a long period of
(d) Gift check worth P4,000; and
time and must be shown to have been consistent and deliberate.
(e) Productivity-based incentive ranging from a 20% to The test or rationale of this rule on long practice requires an
40% increase in gross monthly salary for all employees indubitable showing that the employer agreed to continue giving
who would receive an evaluation of "Excellent" for the benefits knowing fully well that said employees are not covered
three (3) straight quarters in the same year. by the law requiring payment thereof.708 As the productivity-
based bonus has been awarded for the last six (6) years, such
Because of its poor performance over-all, FEB decided to cut may be considered to be a regular practice.
back on the bonuses this year and limited itself to the following:
As to the withheld productivity-based bonuses, Katrina is deemed
(a) 13th month pay; to have earned them because of her excellent performance ratings
for three (3) quarters. On this basis, they cannot be withheld
(b) 146 month pay;
without violating the Principle of Non-Diminution of Benefits.
(c) Christmas basket worth P4,000; and
Moreover, it is evident from the facts of the case that what was
(d) Gift check worth P2,000 withdrawn by FEB was a productivity bonus. Protected by RA
6791 which mandates that the monetary value of the productivity
Katrina, an employee of FEB, who had gotten a rating of improvement be shared with the employees, the "productivity-
"Excellent" for the last three (3) quarters was looking
forward to the bonuses plus the productivity incentive bonus.
706 BAR 2015.

707 Linton Commercial Co. v. Hellera, 535 SCRA 434.
705 American Wire and Cable Daily Rated Employees Union v. American Wire and 708 Philippine Appliance Corp. (PHIL.4COR) v. Court of Appeals, G.R. No. 149434,
Cable Co., Inc., et al, G.R. No. 155059, 29 April 2005. 03 June 2004.
ON LABOR LAW
based incentive" scheme of FEB cannot just be withdrawn employer or authorized in writing by the individual
without the consent of its affected employees. worker concerned; and
G. Clearance Process 3. In cases where the employer is authorized by law or

regulations issued by the Secretary of Labor and
Q: Are clearance procedures valid and legal? Employment:7'2
A: Yes. Requiring clearance before the release of last payments The Civil Code also provides that the employer is authorized to
to the employee is a standard procedure among employers, withhold wages for debts due.73
whether public or private. Clearance procedures are instituted to
ensure that the properties, real or personal, belonging to the Q: Solid Mills allowed its employees and their families to
employer but are in the possession of the separated employee, occupy SMI Village, a property owned by Solid Mills out of
are returned to the employer before the employee's departure.709 liberality and for convenience. In 2003, Solid Mills ceased its
operations due to serious business losses. A memorandum of
Q: What are the rules regarding clearance before the release agreement (MOA) was executed by NAFLU, representing the
of an employee's final pay? employees, and Solid Mills. The MOA provided for Solid
Mills' grant of separation pay less accountabilities, accrued
A: As a general rule, employers are prohibited from withholding
sick leave benefits, vacation leave benefits, and 13th month
wages from employees. The Labor Code prohibits the withholding
pay to its employees. Employees who signed the MOA were
of wages and kickbacks710 as well as elimination or diminution
considered to have agreed to vacate SMI Village and to the
of benefits.71
demolition of the constructed houses inside as condition for
However, the law supports the employers' institution of clearance the release of their termination benefits and separation pay.
procedures before the release of wages. As an exception to the The employees refused to sign the MOA. Thus, Solid Mills
general rule, the Labor Code provides that an employer, in his withheld the termination benefits of the employees pending
own behalf or on behalf of any person, may make deductions the latter's turning over of the lots they occupy. The employees
from the wages of his employees: demanded to be paid their benefits and separation pay, arguing
that their possession of Solid Mills' property is not an
1. In cases where the worker is insured with his consent by accountability that is subject to clearance procedures. Rule.71'
the employer, and the deduction is to recompense the
employer for the amount paid by him as premium on the A: Solid Mills properly withheld the termination benefits of the
insurance; employees because of the latter's refusal to return company
property. While the general rule provides that employers are
2. For union dues, in cases where the right of the worker or prohibited from withholding wages from employees, our law
his union to check-off has been recognized by the

712
209 Milan v. National Labor Relations Commission, G.R. No. 202961, 04 February 2015. Civil Code, Art. 1706.
713
710 714
Labor Code, Art. 116. Milan v. National Labor Relations Commission, G.R. No. 202961, 04 February
71 1 Labor Code, Art. 100. 2015.
ON LABOR LAW
supports the employers' institution of clearance procedures H. Post-Employment Restrictions

before the release of wages.
Q: What is a non-compete clause?
The Labor Code provides that no employer shall make any
deduction from the wages of its employees except in cases where A: A non-compete clause is a provision usually included in an
the employer is authorized by law or regulations issued by the employment contract wherein an employee is prevented from
Secretary of Labor and Employment. The Civil Code provides engaging in any business or undertaking that is directly or
that the employer is authorized to withhold wages for debts due. indirectly in competition with that of the employer and its
affiliates or engaging directly or indirectly in any undertaking or
"Debt" in this case refers to any obligation due from the activity prejudicial to the interests of the employer or to the
employee to the employer. It includes any accountability that the performance of his/her job or work assignments.7'6
employee may have to the employer. There is no reason to limit
its scope to uniforms and equipment, as petitioners would argue. Q: Is a non-compete clause void for being in restraint of trade?
More importantly, Solid Mills and NAFLU, the union representing A: It is not necessarily void for being in restraint of trade as
the employees, agreed that the release of the employees' benefits long as there are reasonable limitations as to time, trade, and place."'
shall be "less accountabilities."
Q: What must the employer prove regarding its imposition
"Accountability," in its ordinary sense, means obligation or debt. of post-employment restrictions?
The ordinary meaning of the term "accountability" does not limit
the definition of accountability to those incurred in the worksite. A: The employer has to adduce evidence to prove that the restriction
As long as the debt or obligation was incurred by virtue of the is reasonable and not greater than necessary to protect the
employer-employee relationship, generally, it shall be included employer's legitimate business interests. The restraint may not
in the employee's accountabilities that are subject to clearance be unduly harsh or oppressive in curtailing the employee's
procedures. legitimate efforts to earn a livelihood, and must be reasonable in
light of sound public policy.'
In this case, the employees' possession of Solid Mills' property
is included in the term "accountability." The return of the Q: What are the factors in determining whether a non-
property's possession became an obligation or liability on the compete clause is valid?
part of the employees when the employer-employee relationship
ceased. Thus, Solid Mills has the right to withhold the employees' A: In determining whether the contract is reasonable or not, the
wages and benefits because of this existing debt or liability.75 following factors must be considered:
a. Whether the covenant protects a legitimate business
interest of the employer;
716 I"usen Air and Sea Service Phil. Inc. v. Villamor, G.R. No. 154060, 16 August
2005.
715 Milan v. National Labor Relations Commission, G.R. No. 202961, 04 February 717 Tiu v. Platinum Plans Phil., Inc., G.R. No. 163512, 28 February 2007.
2015. 718 Rivera v. Solidbank, G.R. No. 163269, 19 April 2006.
ON LABOR LAW
b. Whether the covenant creates an undue burden on the

employee;
VII. Post-Employment
c. Whether the covenant is injurious to the public welfare; A. Termination of Employment by Employer
d. Whether the time and territorial limitations contained in 1. Just Causes - Labor Code, Art. 297; DOLE D.O. No.
the covenant are reasonable; and 147-15
e. Whether the restraint is reasonable from the standpoint Q: What are the "just causes" for termination of employment
of public policy.719 by employer?
Q: TRUE or FALSE. An employment contract prohibiting A: These refer to causes that are directly attributable to the fault
employment in a competing company within one year from or negligence of the employee.722 They are "just causes" because
separation is valid.720 the termination of employment is justified due to an employee's
actions, behavior, or omission, which either result in a serious or
A: True. The Supreme Court ruled that it is a legitimate business grave violation of the law, employment contract, company
practice to guard business confidentiality and protect a competitive policies, collective bargaining agreement, and other employment
position by even handedly disqualifying from jobs male and female agreement. It is a management prerogative to impose the penalty
applicants or employees who are married to a competitor. No of dismissal on the erring employee.
less than the Constitution recognizes the right of enterprises to
adopt and enforce such a policy to protect its right to reasonable Q: What employees can be terminated for just cause?
returns on investments and to expansion and growth.721
A: It covers all employees, regardless of status or rank, whether
rank-or-file, supervisory, managerial, whether regular, probationary,
casual, project, seasonal, or fixed-term.
Q: What happens if an employee is dismissed without just cause?

A: If an employer terminates an employee without a just cause,
the employer shall be held liable for illegal dismissal. Only the
absence of a just cause of the termination of employment can
make the dismissal of an employee illegal.723
722 DOLE D.O. 147-15, Rule I-A, Section 4[b].

719 Id. 723 Serrano v. National Labor Relations, G.R. No. 117040, 27 January 2000.
720 BAR 2009.
721 Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc.,
G.R. No 162994, 17 September 2004. 309
310 COMPENDIOUS BAR REVIEWER POST-EMPLOYMENT 311
ON LABOR LAW
Q: What are just causes for termination? He was criminally charged with qualified theft and was
placed under preventive suspension. During the pendency of the
A: Just causes for termination are: case, HRH, Inc. received apology letters with pleas for the
1. Serious misconduct; withdrawal of the criminal case and reinstatement of
respondent. The parties entered into a compromise agreement
2. Willful disobedience of a lawful order; wherein they agreed to waive any and all claims they may
have against one another, given HRH, Inc.'s withdrawal of
3. Gross and habitual neglect of duty;
the criminal case. However, it denied respondent's request
4. Fraud; for reinstatement and payment of money claims. Respondent
filed an illegal dismissal case against HRH, Inc. The Labor
5. Willful breach of trust; Arbiter dismissed the case for lack of merit and found
respondent guilty of serious misconduct for theft of company
6. Commission of a crime against the person of the employer
property. NLRC upheld the LA's findings. The CA ruled
or any immediate member of his family or his duly
that respondent was only guilty of simple misconduct
authorized representatives; and
because HRH, Inc. recovered the bottle of alcohol and its
7. Analogous causes.724 value was only P60.00. Thus, the penalty of dismissal was not
commensurate with the misconduct. Was the CA correct?
Q: What constitutes "serious misconduct"? Explain.
A: For misconduct or improper behavior to be a just cause for A: Yes. In determining the gravity of the conduct committed, the
dismissal, the following elements must concur: value of the company property stolen, damage to the company,
and employee's length of service should be considered.
a. The misconduct must be serious;
Misconduct, to be a just cause for dismissal, must conform to the
b. It must relate to the performance of the employee's duties following elements: (a) misconduct must be serious; (b) it must
showing that the employee has become unfit to continue relate to the performance of the employee's duties showing that
working for the employer; and the employee has become unfit to continue working for the
employer; and (c) it must have been performed with wrongful
c. It must have been performed with wrongful intent. 725 intent. However, the finding that an employee violated company
rules and regulations is subject to scrutiny by the Court to
Q: Respondent Dodi started working as a machine operator determine if the dismissal is justified and if so, whether the
in HRH, Inc. in 2007. In 2015, he went to the parking lot to
penalty imposed is commensurate to the gravity of his offense.
clean his motorcycle using the alcohol provided by the
company for the employees' use within the company premises. The following factors should be considered in determining
The security guard noticed the bottle of alcohol in his bag. whether theft of company property by an employee warrants the
penalty of dismissal:
a) The period of employment and existence of a derogatory
725 Sterling Paper Products Enterprises, Inc. v. KMM-Katipunan, G.R. No. 221493, record;
02 August 2017.
ON LABOR LAW
b) The value of the property involved; 2. The order violated must have been reasonable, lawful,
made known to the employee, and must pertain to the
c) Cost of damage to the employer; duties which he had been engaged to discharge.729
d) Effect on the viability of employer's operation or
Q: What are examples of "willful disobedience"?
company's interest; and
A: Making false allegations in a complaint, failure to answer to
e) Employee's position.
Notices to Explain, refusal to undergo random drug testing, refusal
Respondent has been in HRH, Inc. for 18 years and has a to render overtime to meet production deadline, and refusal to
clean record. The bottle of ethyl alcohol valued at P60.00 is comply with lawful transfer are examples of willful disobedience.
very minimal and HRH, Inc. did not lose anything as the
bottle was timely retrieved. It was also not shown that Q: What constitutes "gross and habitual neglect of duties"?
respondent's retention would work undue prejudice to HRH, A: There must be more than one single or isolated act of
Inc.'s operations or is inimical to its interest. Neither does negligence that is gross in nature."'
respondent occupy a position of trust and confidence. Hence,
the penalty of dismissal is not proportional with respondent's Q: What are examples of "gross and habitual neglect of duties"?
misconduct."'
A: Tardiness or absenteeism, repeated failure to perform one's
Q: What are examples of "serious misconduct"? duties for a period of time, unsatisfactory or poor performance,
inefficiency and incompetence that amount to gross and habitual
A: Sexual intercourse inside company premises,727 gambling neglect of duties are examples of gross and habitual neglect
within company premises, challenging superiors to a fight, of duties.
possession or use of drugs,728 deceiving a customer for personal
gain, pilferage or theft of company-owned property are examples Q: What constitutes "gross neglect"?
of serious misconduct.
A: It implies a want or absence of or failure to exercise even
Q: What constitutes "willful disobedience"? slight care or diligence, or the entire absence of care.731 It evinces
a thoughtless disregard of consequences without exerting any
A: For willful disobedience to be a valid cause for dismissal, effort to avoid them.'
these two elements must concur:
1. The employee's assailed conduct must have been willful, that
is, characterized by a wrongful and perverse attitude; and
729 Realda v. New Age Graphics, Inc., G.R. No. 192190, 25 April 2012.
726 Universal Robina Corporation v. Maglalang, G.R. No. 255864, 06 July 2022. 730 See St. Luke's Medical Center, Incorporated v. Fadrigo, G.R. No. 185933, 25
727
Imasen Philippine Manufacturing Corporation v. Alcon and Papa, G.R. No. November 2009.
194884, 22 October 2014. 731 Alaska Milk Corporation v. Ponce, G.R. No. 228412, 26 July 2017.
728 Bravo v. Urios College, G.R. No. 198066, 02 June 2017. 732 Id.
ON LABOR LAW
Q: What constitutes "habitual neglect"? a) Such employee holds a position of trust and confidence,
either as a managerial employee or a fiduciary rank-and-
A: The term "habitual neglect" implies when there is a repeated
file employee;
failure to perform one's duties for a period of time, depending
upon the circumstances.73' b) The employee commits an act that would justify the loss
of trust and confidence of the employer;
Q: What constitutes "abandonment of work"?
c) The loss of trust and confidence is based on willful
A: It has been defined as "a clear and deliberate intent to breach of trust done intentionally, knowingly, and
discontinue one's employment without any intention of returning purposefully and without justifiable facts; and
back."734 Abandonment, as just cause for dismissal from work, is
analogous to gross and habitual neglect of duty."' d) Such loss of trust related to the employee's performance
of duties."'
Q: What are the elements of "abandonment of work"?
Q: What are the kinds of corporate positions of trust?
A: An act constitutes an abandonment of work when:
A: There are two kinds: (1) managerial employees; and (2)
a) there is failure to report for work or absence without fiduciary rank-and-file employees routinely charged with the
valid or justifiable reason; and care and custody of the employee's money or property.74'
b) a clear intention to sever the employer-employee
Q: What constitutes a "commission of a crime or offense"?
relationship.73' The second element is the more
determinative factor.737 A: The crime or offense is committed by the employee against
any of the following: (1) employer; (2) immediate member of his
Absence must be accompanied by overt acts unerringly pointing
employer's family; or (3) employer's duly authorized representative.74'
to the fact that the employee simply does not want to work
anymore, and the employer has the burden of proof to show a Q: What are "analogous causes"?
deliberate and unjustified refusal of the employee to resume his
employment without any intention of returning.73' A: An analogous just cause must be: (1) similar to the specific
just causes; and (2) due to the voluntary and/or willful act or
Q: What constitutes "fraud"? omission of the employee.
A: An employee's act constitutes "fraud" when:
7;3 Public° v. Hospital Managers, Inc., G.R. No. 209086, 17 October 2016.
734 Demex Rattancraft, Inc. v. Leron, G.R. No. 204288, 08 November 2017.
735
Rohustan, Inc. v. Court ofAppeals, G.R. No. 223854, 15 March 2021.
736 DentexRattancraft Inc., et al v. Leron, G.R. 204288, 08 November 2017. 739 Cadavas v. Court of Appeals Cagayan de Oro City, et al, G.R. No. 228765, 20
737
Robustan, Inc. v. Court ofAppeals. G.R. No. 223854, 15 March 2021. March 2019.
738 Samillano v. Valdez Security and Investigation Agency, Inc., G.R. No. 239396. 74° P.J. Lhuillier, Inc. v, Velayo, G.R. No. 198620, 12 November 2014.
23 June 2020. 741
DOLE D.O. No. 174-15, Section 4 (d).
ON LABOR LAW
Q: What are examples of "analogous causes"? 2. Authorized Causes — Labor Code, Arts. 298-299; DOLE
D.O. No. 147-15
A: Under jurisprudence, violation of company rules and
regulations,742 theft of property of a co-employee," incompetence Q: What are the "authorized causes" for termination of
or inefficiency, failure to attain work quota.' employment by employer?
Q: Roman, an employee of Baltazar Company (BC), was A: These refer to causes whereby the employer is authorized to
reported to have fallen asleep during work hours and that he separate employees from their employment pursuant to legitimate
smelled of marijuana. BC coordinated with Bibo Health business reasons or requirements set by law or regulations. The
Clinic, a facility accredited by the Department of Health, to employer is justified in letting go of an employee who is free
conduct random drug testing on its employees. Roman tested from fault and thus must be given separation pay.
positive during both the screening and confirmatory tests.
BC asked Roman to explain why he should not be sanctioned Q: What employees can be terminated for authorized cause?
and dismissed. Roman denied that he used drugs and A: It covers all employees, regardless of status or rank, whether
claimed that a colleague who bore a grudge merely framed rank-or-file, supervisory, managerial, whether regular, probationary,
him. Unsatisfied with his explanation, BC sent Roman a casual, project, seasonal, or fixed-term.
notice of termination. Was the dismissal of Roman valid?
Explain briefly.'45 Q: What are just causes for termination?
A: Yes. Under Article 297(a) of the Labor Code, the possession A: There are two classes of authorized causes. The first are business-
or use of drugs is a valid ground to terminate an employee. related causes747 and the second are health-related causes.'48
DOLE D.O. No. 53, series of 2003, provides that drug testing in
the workplace shall consist of both the screening test and the Q: What are authorized causes which are business-related?
confirmatory test (the latter test to be carried out when the
former test turns out positive) to be conducted by an authorized A: Authorized causes which are business-related are:
drug testing center.746 Here, since both tests turned out positive 1. Installation of labor-saving devices;
for use of marijuana and were conducted by Bibo Health Clinic,
BC has just cause to validly terminate Roman from employment. 2. Redundancy;
3. Retrenchment;
4. Closure or cessation of business operations not due to
serious business losses or financial reverses; and
5. Closure or cessation of business operations due to serious
742 Sy, et al.v. Neat, Inc., et al., G.R. No. 213748, 27 November 2017.
743 Reno Foods, Inc., et al. v. Nagkakaisang Lakas ng Manggagawa (NEM) —
business losses or financial reverses"'
Katipunan. et al., G.R. No, 164016, 15 March 2010.
744 Panda v. Toyota Shaw/Pasig, Inc., G.R. No. 214399, 28 June 2018.
745 BAR 2023.
Automotive Engine Rebuilders, Inc. (AER) v. Progresibong Unyon ng mga
746 747 Labor Code, Art. 298.
Manggagawa sa AER, G.R. No. 160138 & 160192, 13 July 2011. 748 Labor Code, Art. 299.
ON LABOR LAW
Q: What constitutes "installation of labor-saving devices"? Q: What is "redundancy"?

A: It refers to the "reduction in the number of workers in any A: Redundancy exists when the service of an employee is in
workplace made necessary by the introduction of labor-saving excess of what is reasonably demanded by the actual requirements
machinery or devices."750 It is the installation of machinery to of the business. A redundant position is one rendered superfluous
effect economy and efficiency in its method of production.75' by any number of factors, such as overhiring of workers, decrease
volume of business, dropping of a particular product line previously
Q: What is the purpose of the installation of labor-saving manufactured by the company or phasing out of a service activity
machinery? formerly undertaken by the enterprise.'"
A: Labor saving machinery must be introduced and installed for Q: What are the requisites for a valid implementation of a
the purposes of saving on cost, enhancing efficiency, and other redundancy program?
justifiable economic reasons.752
A: The following are the requisites for a valid implementation
Q: What are the standards that must be met for a valid of a redundancy program:
separation pursuant to the installation of labor-saving devices?
1. There must be superfluous positions or services of
A: The following must concur: employees;
1. There must be introduction of machinery, equipment or 2. The positions or services are in excess of what is reasonable
other devices; demanded by the actual requirements of the enterprise to
2. The introduction must be done in good faith; operate in an economical and efficient manner;
3. The purpose for such introduction must be valid such as 3. There must be good faith in abolishing redundant positions;
to save on cost, enhance efficiency, and other justifiable 4. There must be fair and reasonable criteria in selecting
economic reasons; the employees to be terminated; and
4. There is no other option available to the employer than 5. There must be adequate proof of redundancy such as but
the introduction of machinery, equipment or device and not limited to the new staffing pattern, feasibility studies/
the consequent termination of employment of those proposal on the viability of the newly created positions,
affected; and job description and the approval by the management of
the restructuring.75'
5. There must be fair and reasonable criteria in selecting
employees to be terminated. 753

759 DOLE D.O. 147-15, Rule I-A, Section 4(m).
75 Edgar Apparel, Inc. v. National Labor Relations Commission, G.R. No. 121314, 753 DOLE D.O. 147-15, Section 5.4(a), Rule 1-A.
12 February 1998. 754 Que v. Asia Brewery, Inc., G.R. No. 202388, 10 April 2019.
752 Labor Code, Art. 299. 755 Section 5.4[b], Rule I-A, DOLE D.O. 147-15
ON LABOR LAW
Q: What is "retrenchment"? the employees, such as status, efficiency, seniority, physical

fitness, age, and financial hardship for certain workers.757
A: Retrenchment is the termination of employment initiated by
the employer through no fault of and without prejudice to the Q: What is the evidence to prove business losses?
employees. It is resorted to during periods of business recession,
industrial depression, seasonal fluctuations, during lulls occasioned A: It is the financial statements audited by independent external
by lack of orders, shortage of materials, conversion of the plant auditors which constitute the normal method of proof of the
for a new production program, the introduction of new methods profit and loss performance of a company.758
or more efficient machinery or of automation. It is an act of the
employer of dismissing employees because of losses in the Q: Is a sharp drop in income a ground to justify retrenchment?
operation of a business, lack of work, and considerable reduction A: No. A mere decline in gross income cannot in any manner be
on the volume of his business.75' considered as serious business losses.759 It must be substantial,
substantiated, and real.'"
Q: What are the standards that must be met for a valid
separation pursuant to retrenchment? It was clarified that "sliding incomes" or "decreasing gross revenues"
are not losses under the purview of the law.761 Rather, the
A: The following are the standards that must be met for a valid
employer must prove that he/she sustained losses over a period
separation pursuant to retrenchment:
of time, and that the prospect of financial improvement is bleak.762
1. There must be reasonably necessary and likely to prevent
business losses; Q: What constitutes "closure or cessation of business
operations due to serious business losses"?
2. The losses, if already incurred, are not merely de minimis,
but substantial, serious, actual and real, of if only expected, A: It refers to the reversal of fortune of the employer whereby
are reasonably imminent; there is a complete cessation of business operations and/or an
3. The expected or actual losses must be proved by sufficient

and convincing evidence;
4. The retrenchment must be in good faith for the advancement
of its interest and not to defeat or circumvent the 757 Section 5.4(c), Rule I-A, DOLE D.O. 147-15; F,4SAP v. PAL, Inc., G.R. No.
employee's right to security of tenure; and 178083, 22 July 2008.

758
Capitol Medical Center, Inc. v. Meris, G.R. No. 155098, 16 September 2005;
5. There must be fair and reasonable criteria in ascertaining See also Dela Salle University v. Dela Salle University Employees Association, 330
SCRA 363, 383 (2000) citing Saballa v. NLRC, 260 SCRA 697, 709 (1996);
who would be dismissed and who would be retained among Revidad v. NLRC, 245 SCRA 356, 367 (1995).
759 Philippine Phosphate Fertilizer Corporation v. Mayol, et al., G.R. Nos. 205528-
29 and 205797-98, 09 December 2020, citing Lambert Pawnbrokers and Jewelry
Corp., et al v. Binamira, G.R. No. 170464, 12 July 2010.
760 Id.
761
Id., citing Phil. Carpet Employees Asso. (PHILCE,4) v. Hon. Sto. Tomas, 518
Phil. 299, 316 (2006).
762
756 Read-Rite Philippines, Inc. v. Francisco, G.R. No. 195457, 16 August 2017. Id.
ON LABOR LAW
actual locking-up of the doors of the establishment usually due to the reason that this phrase is preceded by the phrase "any
financial losses.'" disease" under the Labor Code.766
Q: What are authorized causes which are health-related? Q: What is a "competent public medical authority"?
A: Under Article 299 of the Labor Code, an employer may A: A competent public medical authority is a government
validly terminate an employee who has been found to be doctor whose medical specialization pertains to the disease being
suffering from any disease and whose continued employment is suffered by the employee.
prohibited by law or is prejudicial to his health as well as his co-
employees. The rule simply prescribes a "certification by a competent public
health authority" and not a "Philippine public health authority."
Q: What are the standards that must be met for a valid Hence, a medical certificate may be obtained in the foreign
termination due to disease? country where the employee is employed.767
A: As substantive requirements, the Labor Code and its IRR Q: Who should procure the medical certificate?
require the presence of the following elements:
A: The submission of the requisite medical certificate is for the
1. An employer has been found to be suffering from any employer's compliance.768 This requirement cannot be dispensed
disease. with; otherwise, it would sanction the unilateral and arbitrary
determination by the employer of the gravity or extent of the
2. His continued employment is prohibited by law or employee's illness and thus defeat the public policy on the
prejudicial to his health, as well as to the health of his protection of labor."'
co-employees.
3. Due Process Requirements — Labor Code, Art. 292 (b);
3. A competent public health authority certifies that the
DOLE D.O. No. 147-15
disease is of such nature or at such a stage that it cannot
be cured within a period of six months even with proper Q: What is "company-level due process"?
medical treatment. 764
A: It is the due process required to be complied with by the
With respect to the first and second elements, the Supreme Court employer in terminating the employee's employment. An
liberally construed the phrase "prejudicial to his health as well as employee must be afforded the opportunity to be heard or to
to the health of his co-employees" to mean "prejudicial to his defend himself in accordance with the company rules and
health or to the health of his co-employees.i76' The Supreme Court
did not limit the scope of this phrase to contagious diseases for
766
Id.
767
Triple Eight Integrated Services, Inc. v. NLRC, G.R. No. 129584, 03 December
1998.
763 Sanoh Fulton Phils., Inc. v. Bernardo, G.R. No. 187214, 14 August 2013. Id., citing Triple Eight Integrated Services, Inc. v. National Labor Relations
768
764 Deoferio v. Intel Technology Philippines, Inc., G.R. No. 202996, 18 June 2014. Commission, G.R. No. 129584, 03 December 1998.
765 Id. 769 Id.
ON LABOR LAW
regulations which have been promulgated pursuant to guidelines 1. Issuance of a first written notice ("Notice to Explain");
set by the DOLE.70
2. Observance of an ample opportunity to explain;
Q: What is "statutory due process"?
3. Issuance of a second written notice ("Notice of Termination"
A: Statutory due process refers to compliance with the requirements or "Notice of Results", as the case may be).7"
as prescribed under the Labor Code.
Q: What is the effect of non-compliance with procedural due
Q: What is "contractual due process"? process for termination of employee pursuant to authorized cause?
A: Contractual due process refers to compliance with the A: Failure to strictly comply with the requirements of procedural
company's own rules and regulations. Failure of an employer to due process for dismissing an employee will not render such
observe its own company-prescribed due process will make an dismissal ineffective if it is based on a just or authorized cause.
employer liable to pay the employee indemnity in the form of However, the employer must be held liable for nominal damages
nominal damages, the amount of which is equivalent to the for non-compliance with the requirements of due process (Agabon
P30,000.00 pursuant to the Agabon doctrine."' doctrine).7" The indemnity to be imposed should be stiffer to
discourage the abhorrent practice of "dismiss now, pay later".
Q: What is "court-level due process"?
Q: What must the Notice to Explain contain?
A: It is the due process required to be observed by the labor
authorities/tribunals/courts (i.e., the Labor Arbiter, NLRC, Court A: The Notice to Explain or first written notice must contain the
of Appeals) in hearing and deciding labor cases brought before following:
them for adjudication and decision. This adheres to the concept
1. The specific causes or grounds for termination as provided
of constitutional due process, which requires that a court or
for under the Labor Code, as amended, employment
tribunal first be clothed with judicial authority and jurisdiction to
contract, and company policies, if any;
hear and determine the matter before it, the ample opportunity
for the defendant to be heard and defend himself, and a rendition 2. Detailed narration for the facts and circumstances that
of judgment upon such lawful hearing.72 will serve as the basis for the charge against the employee;
and
Q: What is the procedure for terminating an employee
pursuant to just cause? 3. A directive that the employee is given the opportunity to
submit a written explanation with a reasonable period,
A: The employer must comply with the following requirements which should be at least (5) calendar days.75
of procedural due process:
773
77° Labor Code, Art. 277(b). DOLE DO No. 147-15, Sec. 5.
771 Abbott Laboratories, Phils. v. Alcaraz, G.R. No. 192571, 23 July 2013. 774 Agabon v. National Labor Relations Commission, G.R. No. 158693, 17
772 Concepcion Macabingkil v. Hon. Nicasio Yatco, G.R. No. L-23174, September November 2004.
18, 1967. 775 DOLE Order No. 147, Sec. 5.1 (a).
ON LABOR LAW
Q: What is a reasonable period to submit a written explanation? writing by the employee; (2) substantial evidentiary disputes exist;
(3) a company rule or practice requires it; or (4) when similar
A: A period of at least five (5) calendar days from receipt of
circumstances justify it.79
notice. This is to give the employee the opportunity to study the
accusation, consult or be represented by a lawyer or union officer, In Perez v. PLDT,78° the Supreme Court clarified:
gather data and evidence, and decide on the defenses against
the complaint.'" "A hearing means that a party should be given a chance to
adduce his evidence to support his side of the case and that the
Q: What must the second written notice contain? evidence should be taken into account in the adjudication of the
controversy. "To be heard" does not mean verbal argumentation
A: The second written notice is issued after the employer evaluates alone inasmuch as one may be heard just as effectively through
all available pieces of evidence and the explanation of the written explanations, submissions or pleadings. Therefore, while
employee, if any. If the employee is found innocent of the the phrase "ample opportunity to be heard" may in fact include
charges against him or her, the "Notice of Result" will indicate an actual hearing, it is not limited to a formal hearing only. In
as such. On the other hand, if the employee is found guilty, the other words, the existence of an actual, formal "trial-type"
"Notice of Termination" will indicate the fact that all hearing, although preferred, is not absolutely necessary to satisfy
circumstances involving the charge against him or her have been the employee's right to be heard."
duly considered and grounds have been established to justify the
imposition of a penalty."' Q: What constitutes "an ample opportunity to be heard"?
Q: Is the "twin-notice rule" required for all cases of termination? A: It refers to any meaningful opportunity (whether verbal or
written) given the employee to answer the charges against him
A: No. The twin-notice rule is required only in cases of just causes and submit evidence in support of his defense, whether in a
of termination, except termination on the ground of disease. hearing, conference, or some other fair, just, and reasonable way.
Q: How is the observance of an ample opportunity to Q: What happens when an employee fails to attend the
explain fulfilled? formal administrative hearing or submit a written explanation?
A: The employee must be given the chance to defend themselves A: The employee waives his right to be heard.
via: (1) a written explanation; or (2) formal administrative hearing.78
Q: Is the conduct of an administrative hearing required for
Q: Is a formal administrative hearing mandatory? all cases of termination?
A: As a general rule, a formal administrative hearing is optional A: No. The conduct of an administrative hearing is required
or at the discretion of the employer. An employer is required to only in cases of just causes of termination, except termination on
conduct a formal administrative hearing when: (1) requested in the ground of disease. Moreover, in just causes, it becomes
776 DOLE Order No. 147, Sec. 5.1 (a), par. 2. 779 Perez v. Philippine Telegraph and Telephone Company, G.R. No. 152048, 07
777 DOLE Order No. 147, Sec. 5.1 (a), par. 2. April 2009.
778 DOLE Order No. 147, Sec. 5.1 (b), par. 2. Id.
ON LABOR LAW
mandatory only when requested by the employee in writing or Q: Can migrant workers be awarded nominal damages if
substantial evidentiary disputes exist or a company rule or they are terminated without just or authorized cause?
practice requires it, or when similar circumstances justify it.781
A: According to the doctrine set forth in Agabon v. NLRC,784
Q: How is due process complied with in cases of termination migrant workers may be awarded indemnity in the form of
pursuant to authorized causes? nominal damages if they are terminated for just or authorized
cause but without procedural due process.
A: In cases of termination pursuant to authorized causes,
procedural due process is complied with upon the separate and Q: Are migrant workers entitled to reliefs under Article 279
simultaneous service of a written notice of the intended of the Labor Code such as reinstatement or separation pay in
termination informing both: (1) the employee intended to be lieu of reinstatement or full backwages?
terminated; and (2) the appropriate DOLE Regional Office, at
least one (1) month before the intended date of termination A: No. Migrant workers are fixed-term employees by nature of
specifying the ground/s therefore and the undertaking to pay the their employment.785 Therefore, their claims are purely monetary.
appropriate separation pay.
Q: What are the reliefs to which migrant workers are entitled?
Q: Can migrant workers acquire regularity of employment A: Under Section 10 of R.A. No. 8042, as amended, migrant
and security of tenure? workers are entitled to: (1) all salaries for the unexpired portion
A: No. Migrant workers are, by nature, contractual employees of the contract; (2) full reimbursement of placement fees and
only. However, the rights of local fixed-term workers are neither deductions made with interest, at twelve (12%) per annum.78'
greater nor lesser than overseas migrant fixed-term workers. It is
Q: In cases where a migrant worker is illegally terminated,
state policy to protect the rights of workers without qualification
is he entitled to his salaries for the unexpired portion of his
as to the place of employment.'"
employment contract of for three (3) months for every year
Q: Can migrant workers become regular employees by reason of the unexpired term, whichever is less, pursuant to Section
of the nature of their work, i.e., they are suffered to work 10 of R.A. No. 8042, as amended?
that is usually necessary and desirable in the usual trade or A: No. Case law provides that such provision in Section 10 of
business of the employer? R.A. No. 8042 must be struck down as unconstitutional. Putting
A: No. The nature of the employment of migrant workers is always a cap on the money claims of certain overseas workers does not
fixed-term.783 Thus, they cannot become regularized employees. increase the standard of protection afforded to them. On the other
hand, foreign employers are more incentivized by the reinstated
784 G.R. No. 158693, 17 November 2004.

781
DOLE Order No. 147, Sec. 5.1 (b), par. 2. 785 Spouses Agabon v. National Labor Relations Commission, et al., G.R. No.
782 Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 200811, 19 June 2019. 158693, 17 November 2004.
783 Sameer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 200811, 19 June 2019. 786 R.A. No. 8042, as amended, Sec. 10.
ON LABOR LAW
clause to enter into contracts of at least a year because it gives Q: May an employee resign without any written notice?
them more flexibility to violate our overseas workers' rights.787
A: As a rule, an employee may terminate, without just cause,
Q: Where may claims arising out of or by virtue of any law the employee-employer relationship by serving a written notice
or contract involving Filipino workers for overseas deployment on the employer at least one (1) month in advance. The employer
be heard? upon whom no such notice was served may hold the employee
liable for damages.79'
A: Section 10 of R.A. No. 8042, as amended by R.A. No.
100022, provides that jurisdiction over claims arising out of or As an exception, an employee may put an end to the relationship
by virtue of any law or contract involving Filipino workers for without serving any notice on the employer for any of the following
overseas deployment including claims for actual, moral, causes just causes:
exemplary and other forms of damages has been transferred to
1. Serious insult by the employer or his representative on
the Labor Arbiters of the NLRC.788
the honor and person of the employee;
B. Termination of Employment by Employee 2. Inhuman and unbearable treatment accorded the employee
by the employer or his representative;
Q: What are the ways by which an employee may terminate
his or her employment? 3. Commission of a crime or offense by the employer or his
representative against the person of the employee or any
A: An employee may terminate his/her employment by resignation.
of the immediate members of his family; and
Resignation is the voluntary act of an employee who finds himself
4. Other causes analogous to any of the foregoing,792
in a situation where he believes that personal reasons cannot be
sacrificed in favor of the exigency of the service, then he has no Q: May an employee who resigned, and whose resignation
other choice but to disassociate himself from his employment.'" has been accepted by the employer, withdraw the resignation?
For resignation from employment to be valid, there must be an A: No. Resignations, once accepted and being the sole act of
intent to relinquish the position together with the overt act of the employee, may not be withdrawn without the consent of the
relinquishment. Resignation must be voluntary. In illegal dismissal employer. Once an employee resigns and his resignation is
cases, the employer, if defense of resignation is presented, must accepted, he no longer has any right to the job. If the employee
show that the employee indeed voluntarily resigned.79' later changes his mind, he must ask for approval of the withdrawal
of his resignation from his employer, as if he were re-applying for
the job. It will then be up to the employer to determine whether or
not his service would be continued. If the employer accepts said
withdrawal, the employee retains his job. If the employer does
not, as in this case, the employee cannot claim illegal dismissal
787 Santeer Overseas Placement Agency, Inc. v. Cabiles, G.R. No. 200811, 19 June 2019.
788 R.A. No. 8042, as amended, Sec. 10.
789 Dosch v. National Labor Relations Commissions, G.R. No. 51182, 05 July 1983. 791 Labor Code, Art. 300.
799 Rance, et al. v. University ofSt. Anthony, et al., G.R. No. 202724, 03 February 2021. 792 Labor Code, Art. 300.
ON LABOR LAW
because the employer has the right to determine who his The test of constructive dismissal is whether a reasonable person
employees will be. To say that an employee who has resigned is in the employee's position would have felt compelled to give up
illegally dismissed, is to encroach upon the right of employers to his position under the circumstances. It is an act amounting to
hire persons who will be of service to them.793 dismissal but made to appear as if it were not. In fact, the employee
who is constructively dismissed may be allowed to keep on coming
Q: How is the fact of resignation substantiated? to work. Constructive dismissal is therefore a dismissal in disguise.
A: Resignation is defined as a formal pronouncement or The law recognizes and resolves this situation in favor of
relinquishment of an office, with the intention of relinquishing employees in order to protect their rights and interests from the
the office accompanied by the act of relinquishment. As the coercive acts of the employer.79'
intent to relinquish must concur with the overt act of relinquishment,
Q: Cite jurisprudence where the Supreme Court ruled that
the acts of the employee before and after the alleged resignation
there is constructive dismissal.
must be considered in determining whether in fact, he or she
intended to sever from his or her employment.'" A: First, there is constructive dismissal when an employer's act
of clear discrimination, insensibility or disdain becomes so
The fact of resignation is therefore supported by the concurrence
unbearable on the part of the employee so as to foreclose any
of the following: (1) the intent to relinquish one's office; and (2)
choice on his part except to resign from such employment.79'
the overt act of relinquishment. In illegal dismissal cases, fundamental
is the rule that when an employer interposes the defense of In Bayview Management Consultants, Inc. v. Pre,799 there are acts
resignation, on him necessarily rests the burden to prove that the of disdain which created an atmosphere of antagonism and
employee indeed voluntarily resigned."' animosity between Pre and the company officials. The employer
made continued and concerted efforts that made Pre's tenure
1. Resignation vs. Constructive Dismissal — Labor Codes unbearable. She was first asked to do menial tasks which are way
Art. 300 below her status as a manager. When this failed, she was on more
than one occasion asked to resign from employment. Worse, she
Q: Explain the concept of constructive dismissal.
was humiliated when her boss Gordon called her stupid and
A: Case law defines constructive dismissal as a cessation of work incompetent for no valid reason. Despite assurance of tenure, the
because continued employment is rendered impossible, unreasonable management treated her indifferently. Pre's overall experience is
or unlikely, when there is a demotion in rank or diminution in mentally, emotionally and psychologically burdensome and made
pay or both; or when a clear discrimination, insensibility, or disdain her tenure unbearable, which prompted her to involuntarily give
by an employer becomes unbearable to the employee."' up her employment.
Second, constructive dismissal, however, does not always involve
such kinds of diminution; an act of clear discrimination, insensibility,
793 Interirod Maritime, Inc and Troodos Shipping Co. v. National Labor Relations
or disdain by an employer may become so unbearable on the part
Commission, G.R. No. 81087, 19 June 1991.
794 BMG Records (Phils.), Inc., et al. v. Aparecio, et al., G.R. No. 153290, 05
September 2007; Fortuny Garments v. Castro, G.R. No. 150668, 15 December 2005. 797 St. Paul College, Pasig v. Mancol, G.R. No. 222317, 24 January 2018.
T9S Villola v. United Philippine Lines, Inc., et al., G.R. No. 230047, 09 October 2019. 798 Rodriguez v. Park N Ride Inc., G.R. No. 222980, 20 March 2017.
796 Tan v. National Labor Relations Commission, G.R. No. 128290, 24 November 1998. 799 G.R. No. 220170, 19 August 2020.
ON LABOR LAW
of the employee that it could foreclose any choice by him except work does not rule out constructive dismissal, nor does it operate
to forego his continued employment."' as a waiver.
In Singa Ship Management Phils., Inc. v. NISC,8°1 respondent Q: In constructive dismissal cases, who has the burden to
Sangil quit because he feared for his life and his fear was well prove the fact of dismissal?
founded. He already figured in an incident with the much taller,
bigger and heavier Zakkas who had been intimidating him. Sangil A: It is true that in constructive dismissal cases, the employer is
could not get any protection from the Greek ship captain, not charged with the burden of proving that its conduct and action or
even the slightest assurance of safety from him. In fine, the the transfer of an employee are for valid and legitimate grounds
decision of respondent Sangil to leave the ship was not voluntary such as genuine business necessity. Particularly, for a transfer
at all but was impelled by a legitimate desire for self-preservation. not to be considered a constructive dismissal, the employer must
He did not leave the ship out of his own free will, whim or be able to show that such transfer is not unreasonable, inconvenient,
caprice but was moved by fear for his life. or prejudicial to the employee; nor does it involve a demotion in
rank or a diminution of his salaries, privileges and other benefits.'"
An employee is considered constructively dismissed if he or she
was sexually harassed by her superior and her employer failed to However, it is likewise true that in constructive dismissal cases,
act on his or her complaint with prompt and sensitivity. The the employee has the burden to prove first the fact of dismissal
gauge for constructive dismissal is whether a reasonable person by substantial evidence. Only then when the dismissal is established
in the employee's position would feel compelled to give up his that the burden shifts to the employer to prove that the dismissal
employment under the prevailing circumstances.'" was for just and/or authorized cause. The logic is simple — if
there is no dismissal, there can be no question as to its legality or
Third, there is constructive dismissal where there is cessation of illegality.805 Bare allegations of constructive dismissal, when
work because continued employment is rendered impossible, uncorroborated by the evidence on record, cannot be given credence."'
unreasonable or unlikely, as an offer involving a demotion in
rank or a diminution in pay and other benefits. Q: Distinguish resignation from constructive dismissal.
In Regala v. Manila Hotel Corporation,803 the Supreme Court A: As to voluntariness, resignation is the voluntary act of an
ruled that the reduction of Regala's regular workdays from five employee who is in a situation where he believes that personal
(5) days to two (2) days resulted in a diminution in pay. Regala's reasons cannot be sacrificed in favor of exigency of the service,
change in his work schedule resulting to the diminution of his and he has no other choice but to disassociate himself from
take home salary is, therefore, tantamount to constructive employment.807 Constructive Dismissal, aptly called a dismissal in
dismissal. The fact that Regala may have continued reporting for
804 Telus International Philippines, Inc. et al. v. De Guzman, G.R. No. 202676, 04
800 December 2019.
Philippine Advertising Counselors, Inc. v. National Labor Relations
805
Commission, G.R. No. 120008, 18 October 1996. Italkarat 18, Inc. v. Gerasmio, G.R. No. 221411, 28 September 2020 citing
801 Galang v. Boie Takeda Chemicals Inc., G.R. No. 183934, 20 July 2016.
G.R. No. 119080, 14 April 1998.
802
Periallor v. Outdoor Clothing Manufacturing Corporation, et al., G.R. No. 800 Tacis v. Shields Security Services, Inc. et al., G.R. No. 234575, 7 July 2021.
177114, 13 Apri12010. 807 Central Azucarera De Beds, Inc., et al. v.Siason, G.R. No. 215555, 29 July 2015
803 G.R. No. 204684, 05 October 2020. citing Mendoza v. HVIS Credit Corporation, G.R. No. 187232, 17 April 2013.
ON LABOR LAW
disguise or an act amounting to dismissal but made to appear as if Sir: Please accept my irrevocable resignation effective at
it were no, is involuntary or is a forced resignation.808 the close of office on March 15, 2000. Thank you.
As to burden of proving voluntariness, in resignation, the burden Very truly yours,
of proving voluntariness is on the part of the employer. It is a Manolo A. Peflaflor
fundamental rule that when an employer interposes the defense
of resignation, on him necessarily rests the burden to prove that the He thereafter filed an illegal dismissal complaint with the labor
employee indeed voluntarily resigned.809 In constructive dismissal, arbiter claiming that he had been constructively dismissed.
the burden of proving constructive dismissal is on the employee. Was Peflaflor constructively dismissed?
Bare allegations of constructive dismissal, when uncorroborated A: Yes. While the letter states that Peflaflor's resignation was
by the evidence on record, cannot be given credence.810 irrevocable, it does not necessarily signify that it was also voluntarily
As to entitlement, in resignation, an employee is not entitled to executed. Precisely because of the attendant hostile and discriminatory
separation pay, unless it is a company practice or provided in the working environment, Peflaflor decided to permanently sever his
CBA.811 In constructive dismissal, an employee is entitled to either ties with Outdoor Clothing. This falls squarely within the concept of
(1) reinstatement, if viable, or separation pay, if reinstatement is constructive dismissal that jurisprudence defines, among others,
no longer viable, and (2) backwages. These two reliefs are separate as involuntarily resignation due to the harsh, hostile, and unfavorable
and distinct from each other and are awarded conjunctively.' conditions set by the employer. It arises when a clear discrimination,
insensibility, or disdain by an employer exists and has become
Q: Prima was hired as probationary BIRD Manager of unbearable to the employee.813
Outdoor Clothing on September 2, 1999. On March 13, 2000,
The fact of filing a resignation letter alone does not shift the
more than six months from the time he was hired, Peflaflor
burden of proving that the employee's dismissal was for a just
learned that Outdoor Clothing's President, Nathaniel Syfu
and valid cause from the employer to the employee. The
(Syfu), appointed Edwin Buenaobra as the concurrent HRD
Supreme Court ruled that should the employer interpose the
and Accounting Manager. After enduring what he claimed as
defense of resignation, it is still incumbent upon the employer to
discriminatory treatment at work, Peflaflor considered the
prove that the employee voluntarily resigned."
appointment of Buenaobra to his position as the last straw,
and thus filed his irrevocable resignation from Outdoor Clothing C. Preventive Suspension (Omnibus Rules Implementing
effective at the close of office hours on March 15, 2000. The the Labor Code, Book V, Rule XIV, Secs. 3-4)
resignation letter reads:
Q: When may the employer place an employee under
preventive suspension?
A: The employer may place the worker concerned under
808 Central Azucarera De Bais, Inc., et al. v. Siason, G.R. No. 215555, 29 July 2015 preventive suspension only if his continued employment poses a
citing Morales v. Harbour Centre Port Terminal, Inc. G.R. No. 174208, 25 January 2012.
" 9 Mendoza v. HILT Credit Corporation, G.R. No. 187232, 17 April 2013.
81° Hechanova Bugay Vilchez Lawyers v. Maiorre, G.R. No. 198261, 16 October 2013. S13 Peiiaflor v. Outdoor Clothing Manufacturing Corporation, et al., G.R. No.
R11 Han fbrd Philippines Inc. v. Joseph, G.R. No. 158251, 31 March 2005. 177114, 13 April 2010.
812 Robinsons Galleria v. Ranchez, G.R. No. 177937, 19 January 2011. 814 Mora v. Avesco, G.R. No. 177414, 14 November 2008.
ON LABOR LAW
serious and imminent threat to the life or property of the a misroute of cargo was reported and the company cast the
employer or of his co-workers.815 whole blame on Leo. It was alleged that he erroneously wrote
the label on the box - the name and destination, and allegedly
Q: Is preventive suspension considered a penalty? was the one who checked the cargo. The following day, he received
a memorandum charging him with "negligence in performing
A: Preventive suspension is not a penalty but a disciplinary measure
duties. Thereafter, series of events transpired such that Leo
to protect life or property of the employer or the co-workers
uttered "Seguro na abnormal ang utak mo!" directed against
pending investigation of any alleged infraction, malfeasance or
a female superior. Ximex then placed him under preventive
misfeasance committed by the employee.81' Thus, it is justified
suspension for thirty (30) days pending investigation. Is the
only when the employee's continued employment poses a serious
preventive suspension proper?
and imminent threat to the employer's or co-workers' life or
property. When justified, the preventively suspended employee A: No. Preventive suspension is justified where the employee's
is not entitled to the payment of his salaries and benefits for the continued employment poses a serious and imminent threat to the
period of suspension.81' life or property of the employer or of the employee's co-workers.
Without this kind of threat, preventive suspension is not proper.819
Q: What is the period of preventive suspension?
Here, it cannot be said that Leo posed a danger to the lives of the
A: No preventive suspension shall last longer than thirty (30) officers or employees of respondent or their properties. Being one
days. The employer shall thereafter reinstate the worker in his former of the Operation Staff, which was a rank-and-file position, he could
or in a substantially equivalent position or the employer may not and would not be able to sabotage the operations of Ximex.
extend the period of suspension provided that during the period The difficulty of finding a logical and reasonable connection
of extension, he pays the wages and other benefits due to the between his assigned tasks and the necessity of his preventive
worker. In such case, the worker shall not be bound to reimburse suspension is apparent from the fact that even Ximex was not able
the amount paid to him during the extension if the employer to present concrete evidence to support its general allegation."'
decides, after completion of the hearing, to dismiss the worker.'
D. Reliefs from Illegal Dismissal (Labor Code, Art. 294)
Q: Leo is an Operation Staff of Ximex Delivery Express, Inc., a
corporation engaged in the business of cargo forwarding and Q: What happens when an employee was terminated without
truck-hauling. As an Operation Staff, Leo performed a variety complying with the requirements of substantive due process?
of duties such as but not limited to documentation, checker,
dispatcher or airfreight coordinator. After an evening of a A: When an employer terminates an employee not for just or
supposed problem between Leo and Ximex's representative, authorized cause as provided by law, the employee is considered
to have been illegally dismissed.
815 Omnibus Rules Implementing the Labor Code, Book V, Rule XXIII, Sec. 8.
816 Every Nation Language Institute (ENLI), et al. v. Dela Cruz, G.R. No. 225100,
19 February 2020 citing Gatbonton v. National Labor Relations Commission, et al,
G.R. No. 146779, 23 January 2006.
817 Valiao v. Court ofAppeals, G.R. No. 146621, 30 July 2004. "9 Artificio v. National Labor Relations Commission, G.R. No. 172988, 26 July 2010.
818 Omnibus Rules Implementing the Labor Code, Book V, Rule XXIII, Sec. 4. 820 Maula v. Ximex Delivery Express, Inc., G.R. No. 207838, 25 January 2017.
ON LABOR LAW
Q: What are the reliefs available to an employee upon finding entitled to such, more so if he actually rendered services during
that he was illegally dismissed? the period."'
A: Under Article 279 of the Labor Code, an illegally dismissed Q: What do backwages consist of?
employee is entitled to the following: (1) reinstatement without loss
of seniority rights and other privileges; or (2) separation pay, if A: Backwages shall consist of:
reinstatement is not viable; and full backwages, inclusive of
1. Salaries or wages, computed on the basis of the wage
allowances and other benefits or their monetary equivalent
rate level at the time of the illegal dismissal; and
computed from the time his compensation was withheld, and the
payment of moral and exemplary damages. 2. Allowances and other benefits regularly granted.
Q: What is reinstatement? In the case of Dumapis v. Lepanto Consolidated Mining Company,825

the Supreme Court clarified:
A: Reinstatement refers to the restoration to a state from which
the employee has been removed or separated.82' Reinstatement Verily, the Court now ordains the uniform rule that
would either be actual reinstatement or payroll reinstatement. the award of backwages and/or separation pay due to
illegally dismissed employees shall include all salary
Q: What is actual reinstatement? increases and benefits granted under the law and other
government issuances, collective bargaining agreements,
A: Actual reinstatement refers to a restoration to a state from
employment contracts, established company policies and
which one has been removed or separated as is the case when an
practices, and analogous sources which the employees
employee is admitted back to work."'
would have been entitled to had they not been illegally
Q: What is payroll reinstatement? dismissed. On the other hand, salary increases and
other benefits which are contingent or dependent on
A: Payroll reinstatement refers to the case when an employee variables such as an employee's merit increase based
merely reinstated back into the payroll.'" It is a means by which on performance or longevity or the company's financial
an employee is paid his or her wages and other benefits without status shall not be included in the award.
allowing or requiring that they physically report back to work.
Q: Are salary increases during the period of unemployment
Q: What is the "No Refund Doctrine"? included in the computation of backwages in cases of illegal
dismissal?
A: If the employee has been reinstated during the appeal period
and such reinstatement order is reversed with finality, the employee A: Yes. The base figure in the determination of full backwages
is not required to reimburse whatever salary he received for he is is fixed at the salary rate received by the employee at the time he
was illegally dismissed, inclusive of benefits and allowances
821 Reyes v. RP Guardians Security Agency, G.R. No. 193756, 10 April 2013.
822Advan Motor, Inc. v. Veneration, G.R. No. 190944. 13 December 2017. 824 College of Immaculate Concepcion v. National Labor Relations Commission,
823 University of Immaculate Concepcion v. Secretary of Labor, G.R. No. 151379, G.R. No. 167563, 22 March 2010.
14 January 2005. 823 G.R. No. 204060, 15 September 2020.
ON LABOR LAW
regularly received by the employee as of the time of the illegal reinstatement — if viable, or separation pay if reinstatement is no
dismissal826 and salary increases which the employee would have longer be viable, plus backwages in either instance.831
received had he not been illegally dismissed.'
Q: When can reinstatement not be made?
Q: What is the reckoning point for the computation of
A: Reinstatement cannot be made under the following instances:
backwages?
A: When reinstatement is in order, backwages are reckoned a) When the continued relationship between the employer
from the time the compensation was withheld until finality of the and employee is no longer viable due to strained relations
decision,' which represents the actual period when the employee or antagonism ("Doctrine of Strained Relations");
was unlawfully prevented from working. It represents the compensation b) When reinstatement proves impossible, impracticable, not
that should have been earned but was not collected because of feasible or unwarranted for various reasons and thus is
the unjust dismissal.' hardly in the best interest of the parties;
Q: What is the rule on separation pay? c) When the employee decides not to be reinstated;
A: The general rule is that an employee who voluntarily resigns d) When reinstatement is rendered moot and academic; or
from employment is not entitled to separation pay unless, however,
there is a stipulation for payment of such in the employment e) When further delay in the execution of the decision to the
contract or collective bargaining agreement, or payment of the prejudice of the private respondent is sought to be
amount is sanctioned by established employer practice or policy."' prevented.
Q: When is the payment of separation pay applicable? Q: What is the "Doctrine of Strained Relations"?
A: The relief of separation pay may be granted in lieu of A: Where reinstatement is not feasible, expedient or practical,
reinstatement but it cannot be a substitute for the payment of as where reinstatement would only exacerbate the tension and
backwages. In instances where reinstatement is no longer strained relations between the parties, or where the relationship
feasible because of strained relations between the employee and between the employer and employee has been unduly strained by
the employer, separation pay should be granted. In effect, an reason of their irreconcilable differences, particularly where the
illegally dismissed employee should be entitled to either illegally dismissed employee held a managerial or key position
in the company, it would be more prudent to order payment of
separation pay instead of reinstatement."'
It should not be used recklessly, applied loosely and/or indiscriminately,
826 United Coconut Chemicals v. Valmores, G.R. No. 201018, 12 July 2017. or be based on impression alone; otherwise, reinstatement can
827 Caguioa, in his concurring opinion in Dumapis, et al. v. Lepanto Consolidated
Alining Company, G.R. No. 204060, 15 September 2020.
829
Genuino Agro-Industrial Development Corporation v. Romano, et al., G.R. No.
204782, 18 September 2019.
830 Travelaire & Tours Corp. v. National Labor Relations Commission, G.R. No. 831 Wenphil Corporation v. Abing, G.R. No. 207983, 07 April 2014.
131523, 20 August 1998. 832 Nippon Express Philippines Corporation v. Daguiso, G.R. No. 217970, 17 June 2020.
ON LABOR LAW
never be possible simply because some hostility is invariably Q: What is the period covered in the computation of
engendered between the parties as a result of litigation.83' separation pay?
As reinstatement is the rule, for the exception of strained relations to A: Computation of separation pay is usually the length of the
apply, it should be proved that the employee concerned occupies employee's part service, reckoned from the start of employment
a position where he/she enj oys the trust and confidence of his up to the date of finality of the decision,' except when the employer
employer; and that it is likely that if reinstated, an atmosphere of has ceased its operations earlier, in which case the period shall
antipathy and antagonism would be generated as to adversely be until the date of closure of business.
affect the efficiency and productivity of the employee concerned.
Strained relations must be of such nature or degree as to preclude Q: When is an employee entitled to moral damages?
reinstatement."'
A: The employee is entitled to moral damages when the employer
Q: Who are entitled to separation pay? acted: (a) in bad faith or fraud; (b) in a manner oppressive to
labor; or (c) in a manner contrary to morals, good customs, or
A: Under the Labor Code, employees who have been terminated public policy."'
due to an authorized cause are entitled to separation pay.
Q: When is an employee entitled to exemplary damages?
Moreover, based on jurisprudence, the following are also entitled
to separation pay:835 A: In labor cases, the court may award exemplary damages "if
the dismissal was effected in a wanton, oppressive or malevolent
1. Resigned employees whose contract provides payment manner. "838
of separation pay upon resignation; and
E. Retirement (Labor Code, Art. 302)
2. Resignees whose company has existing practice of giving
separation pay upon resignation. Q: What is retirement?
Q: What is the amount of separation pay in lieu of A: Retirement is the result of a bilateral act of the parties, a
reinstatement? voluntary agreement between the employer and the employee
whereby the latter, after reaching a certain age, agrees to sever
A: Separation pay consists of (1) the amount equivalent to at his or her employment with the former.839
least one (1) month salary for every year of service, whichever is
higher, with a fraction of at least six (6) months considered as
one year; and (2) allowances that the employee has been receiving
on a regular basis.
836 Genuino Agro-Indusirial Development Corporation v. Romano, et al., G.R. No.
204782, 18 September 2019.
B37Alontinota v. Philippine Airlines, G.R. No. 198656, 08 September 2014.
838Garcia v. National Labor Relations Commission, G.R. No. 110518, 01 August 1994.
839 Cercado v. UXIPROM, Inc., G.R. No. 188154, 13 October 2010 citing
"3 Magdadaro v. Philippine National Bank, G.R. No. 166198, 17 July 2009; Universal
834 Id.
Robina Sugar Milling Corporation (URSUMCO) v. Caballeda, G.R. No. 156644,
835 Itallcarat 18, Inc. v. Gerasimio, G.R. No. 221411, 28 September 2020. 28 July 2008.
ON LABOR LAW
Retirement benefits, as explained by the Supreme Court, are Q: In what cases does the retirement pay law apply?
"intended to help the employee enjoy the remaining years of his
life, lessening the burden of worrying about his financial A: The law applies only to a situation where (1) there is no
support, and are a form of reward for his loyalty and service to Collective Bargaining Agreement (CBA) or other applicable
the employer."840 employment contract providing for retirement benefits for an
employee, or (2) there is a CBA or other applicable employment
Q: Who are covered by the retirement pay law? contract providing for retirement benefits for an employee, but it
is below the requirement set by law.843 Clearly, the determining
A: The retirement pay law applies to all employees in the factor in choosing which retirement scheme to apply is still
private sector, regardless of their position, designation or status superiority in terms of benefits provided.844
and irrespective of the method by which their wages are paid.
They include part-time employees, employees of service and In other words, the retirement pay under the Labor Code is
other job contractors, and domestic helpers or persons in the simply the minimum benefit to which a retiree is legally entitled
and will not apply if there are higher benefits provided under the
personal service of another.
CBA, employment contract or existing company policies or practice.
Q: Who are not covered by the retirement pay law?
Q: What is the minimum length of service to be entitled to
A: The law does not cover (i) employees of retail, service and retirement pay?
agricultural establishments or operations employing not more
A: The minimum length of service of at least five (5) years
than 10 employees or workers; and (ii) employees of the national
required for entitlement to retirement pay shall include authorized
government and its political subdivisions, including government
absences and vacations, regular holidays, and mandatory fulfillment
owned and/or controlled corporations, if they are covered by the
of a military or civic duty."'
Civil Service Law and its regulations.841
Q: What is the compulsory retirement age?
Q: What is the retirement age of an employee?
A: The compulsory retirement is upon reaching sixty-five (65)
A: The optional retirement age of an employee is upon reaching
years old. When there is no such plan or agreement providing for
sixty (60) years old, provided that the employee has served for at
retirement benefits, an employee shall be retired upon reaching
least five (5) years of service. In the absence of any collective
the age of sixty-five (65) years old.846
bargaining agreement or other applicable agreement concerning
terms and conditions of employment which provides for retirement
at an older age, an employee may be retired upon reaching the
age of sixty (60) years.842
843
Grace Christian High School v. Lavandera, G.R. No. 177845, 20 August 2014.
844
840 Pantranco North Express, Inc. v. NLRC, 328 Phil. 470 [1996]. Elegir v. Philippine Airlines, Inc., G.R. No. 181995, 16 July 2012.
841
Postigo v. Philippine Tuberculosis Society, G.R. No. 155146, 24 January 2006. 845 Omnibus Rules Implementing the Labor Code, Book VI, Rule II, Sec. 4.4
842 Omnibus Rules Implementing the Labor Code. Book VI, Sec. 13. 846 Omnibus Rules Implementing the Labor Code. Book VI, Rule II, Sec. 4.2.
ON LABOR LAW
Q: What is the retirement age of an underground or surface An employee who did not expressly agree to an early retirement
mining employee? plan cannot be retired from service before he reaches the age of
sixty-five (65) years. Even implied knowledge, regardless of
A: An underground or surface mining employee upon reaching duration, cannot equate to the voluntary acceptance required by
the age of fifty (50) years or more, but not beyond sixty (60) law in granting an early retirement age option.85' The law demands
years which is hereby declared the compulsory retirement age more than a passive acquiescence on the part of the employee,
for underground and surface mine workers, who has served at considering that his early retirement age option involves conceding
least five (5) years as underground and surface mine workers the constitutional right to security of tenure.852
may retire and shall be entitled to all the retirement benefits
provided for by law."' The rationale for this was explained by Senior Associate Justice
Antonio T. Carpio in his separate concurring opinion in Laya, Jr.
Q: Are retail, service and agricultural establishments covered v. Philippine Veterans Banks": Any waiver of a constitutional
by Article 302 of the Labor Code, as amended on the compulsory right must be clear, categorical, knowing, and intelligent, thus:
and optional retirement provision? Section 3, Article XIII of the 1987 Constitution provides that an
A: No. Article 302 of the Labor Code, as amended, provides employee "shall be entitled to security of tenure." Thus, the right to
that retail, service and agricultural establishments or operations security of tenure is a constitutional right of an employee.
employing not more than ten (10) employees or workers are Q: Is a CBA provision which mandates that the compulsory
exempted from the coverage of this provision.
retirement age for female flight attendants is 55 years old,
Q: May an employee, at the age of 50, avail of an early while 60 years old for male flight attendants valid?
retirement plan? A: No. In the case of Halaguena v. Philippine Airlines Inc.,'"
A: It depends. In Pulong vs. Super Manufacturing Inc., et al,848 the Supreme Court declared such compulsory retirement age
the Supreme Court ruled that the acquiescence by the employee provision void for "discriminating against women" and for "being
to an early retirement plan cannot be lightly inferred from his contrary to laws, international convention, and public policy."
acceptance of employment, or in this case, employment benefits.
Q: What constitutes the retirement benefits?
The acceptance must be unequivocal such that his consent
specifically referred to the retirement plan. In early retirement A: Retirement benefits are intended to help the employee enjoy
programs, the offer of benefits must be certain while the acceptance the remaining years of his or her life, releasing the retiree from
to be retired should be absolute."' The employee's consent to the
employer's early retirement policy must be explicit, voluntary,
free, and uncompelled.'"
851
Cercado v. UNIPROM Inc., G.R. No. 188154, 13 October 2010.
852
847 Labor Code, Art. 302; R.A. No. 8558. Robina Farms Cebu v. Villa, G.R. No. 175869, 18 April 2016.
853
848 G.R. No. 247819, 14 October 2019. Pulong v. Super Manufacturing Inc., G.R. No. 247819, 14 October 2019 citing
849 Robina Farms Cebu v. Villa, G.R. No. 175869, 18 April 2016. Laya v. Court of Appeals, G.R. No. 205813, 10 January 2018.
859 Laya, Jr. v. Philippine Veterans Bank, G.R. No. 205813, 10 January 2018.
854
G.R. No. 243259, 10 January 2023.
ON LABOR LAW
the burden of worrying for his or her financial support, and are a superior to that which is provided under Article 287 of the Labor
form of reward for his or her loyalty to the employer."' Code, the latter will apply. In this manner, the employee can be
assured of a reasonable amount of retirement pay for his or
In the absence of an applicable employment contract, an employee her sustenance."'
who retires pursuant to the law shall be entitled to retirement pay
equivalent to at least one-half (1/2) month salary for every year Q: What is the basis for determination of the salary of
of service, a fraction of at least six (6) months being considered employees who are paid by results?
as one whole year.
A: For covered workers who are paid by results and do not have
Q: What does the term "one-half month salary" mean? a fixed monthly rate, the basis for determination of the salary for
fifteen days shall be their average daily salary (ADS), subject to
A: The term "one-half month salary" shall include all of the following: the provisions of Rule VII-A, Book III of the rules implementing
1. Fifteen (15) days salary of the employee based on his the Labor Code on the payment of wages of workers who are
latest salary rate; paid by results. The ADS is the average salary for the last twelve
(12) months reckoned from the date of their retirement, divided
2. Cash equivalent of five (5) days of service incentive leave; by the number of actual working days in that particular period."'
3. One-twelfth of the 13th month pay due the employee; and Q: Distinguish retirement benefits from separation pay.
4. All other benefits that the employer and employee may A: Separation pay, on one hand, is required in the cases enumerated
agree upon that should be included in the computation of in Articles 283 and 284 of the Labor Code, which include
the employee's retirement pay.856 retrenchment, and is computed at least one month salary or at the
rate of one-half month salary for every year of service, whichever
Q: Can the employer provide for retirement benefits less is higher. The Supreme Court has held that it is a statutory right
than what is provided by law?
designed to provide the employee with the wherewithal during
A: No. While the employer is free to grant retirement benefits the period that he is looking for another employment.
and impose different age or service requirements, the benefits
On the other hand, retirement benefits, where not mandated by
should not be lesser than those provided in Article 287 of the
law, may be granted by agreement of the employees and their
Labor Code.857 The determining factor in choosing which retirement
employer or as a voluntary act on the part of the employer.
scheme to apply is superiority in terms of benefits provided."'
Retirement benefits are intended to help the employee enjoy the
Thus, even if the employer has an existing retirement scheme but remaining years of his life, lessening the burden of worrying for his
the same does not provide for retirement benefits equal or financial support, and are a form of reward for his loyalty and
service to the employer.
855 Sta. Catalina College, et al. v. National Labor Relations Commission, et al., G.R.
No. 144483, 19 November2003.
856 Omnibus Rules Implementing the Labor Code, Book VI, Rule II, Sec. 5.2.
857 Beltran v. Computer G.R. No. 223795, 3 April 2019. 859 Santo v. University of Cebu, G.R. No. 232522, 28 August 2019.
858 Elegir v. Philippine .4irlines, Inc., G.R. No. 181995, 16 July 2012. 860 Omnibus Rules Implementing the Labor Code, Book VI, Rule II, Sec. 5.3
ON LABOR LAW
Retirement benefits and separation pay are not mutually exclusive. Q: Discuss the right to non-contributory retirement plan.
However, by their very nature, retirement and separation benefits
become available only when employment ceases."' A: Employees do have a vested and demandable right over
existing benefits voluntarily granted to them by their employer.
Q: Can an employee who has already received his separation The latter may not unilaterally withdraw, eliminate, or diminish
pay still recover retirement benefits from his employer? such benefits. Article 100 of the Labor Code provides that nothing
shall be construed to eliminate or in any way diminish supplements,
A: Yes. As held in University of the East v. Minister of Labor, 862 or other employee benefits being enjoyed at the time of
if there is no provision contained in the collective bargaining promulgation of the Labor Code.'"
agreement to the effect that benefits received under the Termination
Pay Law shall preclude the employee from receiving other Q: Does the retirement pay law bar a retiree from pursuing
benefits from the agreement, then said employee is entitled to the a livelihood or practicing a profession after receiving retirement
benefits embodied in the agreement in addition to whatever benefits benefits?
are mandated by statute. Separation pay arising from a forced
termination of employment and benefits given as a contractual A: No. In the case of Santo v. University of Cebu,865 the
right due to many years of faithful service are not necessarily Supreme Court held that therein petitioner's admission that she
antagonistic to each other, especially where there are strong equitable intends to practice law after retiring as a college instructor does
considerations as in this case. not "affect, nay, diminish her entitlement to retirement benefits
under the law."
Q: Discuss the right to contributory retirement plan.
A: Where both the employer and employee contribute to a
retirement fund in accordance with the CBA or other applicable
employment contract, the employer's total contribution thereto
should not be less than the total retirement benefits to which the
employee would have been entitled had there been no such
retirement fund. In case the employer's contribution is less than
the retirement benefits provided under the law, the employer
should pay the deficiency.'"
861 Civil Service Commission v. Moralde, G.R. No. 211077, 15 August 2018; 864Nestle Philippines, Inc. v. National Labor Relations Commission, et al., G.R. No.
Province of Misamis Oriental v. Moralde, G.R. No. 211318, 15 August 2018. 91231, 04 February 1991 citing Tiangco, et al. v. Leogardo, et al., G.R. No. L-
862 G.R. No. 74007, 31 July 1987. 57636, 16 Mary 1983; Labor Code, Art. 100.
863 Omnibus Rules Implementing the Labor Code. Book VI, Rule II, Sec. 3.3. 865 G.R. No. 232522, 28 August 2019.
LABOR RELATIONS 355
Q: When is an employee entitled to the right to join labor union?

VIII. Labor Relations
A: Any employee whether employed for a definite period or
A. Right to Self-Organization not, shall, beginning on the first day of his/her service, be
eligible for membership in any labor union.868
I. Coverage and Eligibility for Membership; Exceptions -
Labor Code, Arts. 253-255; DOLE D.O. No. 40-03, Rule Q: Who can represent employees?
II Secs. 1-2
A: Only legitimate or registered labor unions shall have the
Q: Discuss the employee's right to self-organization. right to represent their members for collective bargaining and
other purposes. Workers' associations shall have the right to represent
A: The employees' right to self-organization provides that the their members for purposes other than collective bargaining.'"
employees shall have the right to self-organization and to form,
join or assist labor organizations of their own choosing for the Q: Discuss the right of employees in the public service to
purpose collective bargaining through representatives of their self-organization.
own choosing and to engage in concerted activities for the
A: Employees of government corporations established under the
purpose of collective bargaining and other mutual aid or
Corporation Code shall have the right to organize and to bargain
protection.'"
collectively with their respective employers. All other employees
Q: Who are covered by the right to self-organization? in the civil service shall have the right to form associations for
purposes not contrary to law.87'
A: All persons employed in commercial, industrial and agricultural
enterprises, including employees of government owned or Q: May managerial employees join labor organizations?
controlled corporations without original charters established
A: Managerial employees shall not be eligible to form, join or
under the Corporation Code, as well as employees of religious,
assist any labor unions for purposes of collective bargaining.87'
charitable, medical or educational institutions whether operating
for profit or not, shall have the right to self-organization and to Q: May supervisory employees join labor organizations?
form, join or assist labor unions for purposes of collective
bargaining. All other workers, including ambulant, intermittent A: Yes, supervisory employees may join, assist or form collective
and other workers, the self-employed, rural workers and those bargaining units and/or legitimate labor organizations of their
without any definite employers may form labor organizations for own. However, supervisory employees shall not be eligible for
their mutual aid and protection and other legitimate purposes membership in the collective bargaining unit of the rank-and-file
except collective bargaining."' employees. The rank-and-file union and the supervisors' union
866 R.A. No. 875, Sec. 3. 868 DOLE D.O. No. 40-03, Rule II, Sec. 2.
867 DOLE D.O. No. 40-03, Rule II, Sec. 2. 869 Labor Code, Art. 292.
354 871 DOLE D.O. No. 40-03, Rule II, Sec. 2.
356 COMPENDIOUS BAR REVIEWER LABOR RELATIONS 357
ON LABOR LAW
operating within the same establishment may join the same of rank-and-file government employees.876 Members of the AFP,
federation or national union.'" including police officers, policemen, firemen and jail guards, are
not eligible to join, form or assist a labor organization.877
Q: May alien employees exercise their right to self-organization?
Q: Philhealth is a government-owned and controlled corporation
A: Alien employees with valid working permits issued by the employing thousands of Filipinos. Because of the desire of the
DOLE may exercise the right to self-organization and join or employees of Philhealth to obtain better terms and conditions
assist labor unions for purposes of collective bargaining if they of employment from the government, they formed the
are nationals of a country which grants the same or similar rights Philhealth Employees Association (PEA) and demanded
to Filipino workers, as certified by the DFA."3 Philhealth to enter into negotiations with PEA regarding terms
Q: May employees of a cooperative join labor unions for and conditions of employment which are not fixed by law.
purposes of collective bargaining? a. Are the employees of Philhealth allowed to self-organize
A: The right to collective bargaining is not available to an and form PEA and thereafter demand Philhealth to enter
employee of a cooperative who at the same time is a member and into negotiations with PEA for better terms and conditions of
co-owner thereof. With respect, however, to employees who are employment?
neither members nor co-owners of the cooperative they are A: Yes. Employees of government corporations shall have the
entitled to exercise the rights to self-organization, collective right to organize and to bargain collectively with their
bargaining and negotiation as mandated by the 1987 Constitution respective employers but only with respect to terms and
and applicable statutes.'" conditions of employment not fixed by law.
Q: Discuss a government employee's right to organize. b. In case of unresolved grievances, can PEA resort to
strikes, walkouts, and other temporary work stoppages
A: All government employees can form, join or assist employees'
to pressure the government to accede to their demands?"'
organizations of their own choosing for the furtherance and
protection of their interests. They can also form, in conjunction A: No. Employees of government corporations created by
with appropriate government authorities, labor-management special charters have neither the right to strike nor the right
committees, works councils and other forms of workers' to bargain collectively, as defined in the Labor Code.
participation schemes to achieve the same objectives."' Instead, government employees may, through their unions or
associations, either petition the Congress the betterment of
High-level employees whose functions are normally considered
the terms and conditions of employment which are within
as policy-making or managerial or whose duties are of a highly
the ambit of legislation or negotiate with the appropriate
confidential nature shall not be eligible to join the organization
government agencies for the improvement of those which
are not fixed by law. If there be any unresolved grievances,
873 DOLE D.O. No. 40-03, Rule II, Sec. 2.
874 Cooperative Rural Bank of Davao City, Inc. vs. Ferrer Calleja, et al., G.R. No. 876 E.O. No. 180, Sec. 3.
7795, 26 September 1988. 877 Section 4, Executive Order No. 180.
875 E.O. No. 180, Sec. 2. 878 BAR 2014.
ON LABOR LAW
the dispute may be referred to the Public Sector Labor- clear stance to halt the grant of additional salaries and allowances
Management Council for appropriate action. But employees to GOCC's employees and officers. The only exception is when the
in the civil service may not resort to strikes, walkouts and increase of salary is pursuant to the implementation of the Salary
other temporary work stoppages, like workers in the private Standardization Law (SSL). The renegotiated economic
sector, to pressure the Government to accede to their demands.87' provisions of the CBA are outside the SSL. The President also
never lifted the moratorium. As such, the economic terms of the
Q: Clark Development Corporation (CDC) executed a CBA are void for violating the law. "°
renegotiated CBA with its supervisory employees' union - the
Association of CDC Supervisory Personnel (ACSP). The 2. Doctrine of Necessary Implication (Confidential Employees)
CBA granted additional benefits like leaves, salary increase,
and additional allowance. The Governance Commission for Q: What is the Doctrine of Necessary Implication?
Government-Owned and Controlled Corporation (GCG) A: The doctrine of necessary implication states that what is
opined that the CBA violated Sec. 9 of EO No. 7 which implied in a statute is as much a part thereof as that which is
imposed a moratorium on increases in salaries, allowances, expressed."' Article 245 of the Labor Code does not directly
incentives and other benefits in GOCCs, unless specifically prohibit confidential employees from engaging in union
authorized by the President. Yet, the President did not give activities. However, under the doctrine of necessary implication,
CDC the authority to renegotiate the CBA and grant the disqualification of managerial employees equally applies to
increases/additional benefits. ACSP filed a complaint before confidential employees. The confidential-employee rule justifies
the NCMB for failure to implement the CBA. The Accredited exclusion of confidential employees because in the normal
Voluntary Arbitrator (AVA) ruled that Sec. 10 of EO No. 7 course of their duties they become aware of management
series of 2010 suspended the grant of allowances, bonuses, policies relating to labor relations. It must be stressed, however,
incentives and other perks only until 31 December 2010 and that when the employee does not have access to confidential
the President's approval in the grant of additional benefits labor relations information, there is no legal prohibition against
was presumed, pursuant to the rule on liberal construction confidential employees from forming, assisting, or joining
in favor of labor. Is the grant of additional benefits to a union.88"
ACSP allowed?
3. Bargaining Unit - DOLE D.O. No.40-03, Rule I, Sec. 1(e)
A: No. The right of government employees to self-organization
is not as extensive as that of private employees and the right of Q: What is a bargaining unit?
government employees to collective bargaining and negotiation
is subject to limitations. Only the terms and conditions of A: Bargaining unit refers to a group of employees sharing
government employment not fixed by law can be negotiated. EO mutual interests within a given employer unit, comprised of all
No. 7 series of 2010 imposed a moratorium on increases in rates
of salaries and grant of new increases in allowances, incentives
880 Clark Development Corporation vs. Governance Commission for GOCCs, G.R.
and benefits. The prohibition is broadly worded and reveals the
No. 207853, 30 March 2022.
881 Province of Camarines Sur vs. The Commission on Audit, G.R. No. 227926, 10
March 2020.
882 Sugbuanon Rural Bank, Inc. vs. Hon. Undersecretary Bienvenido E. Laguesma,
879 Blaquera vs. Alcala, G.R. No. 109406, 11 September 1998; Bar 2014. G.R. No. 116194, 02 February 2000.
ON LABOR LAW
or less than all of the entire body of employees in the employer b. Inclusion as Members of Employees Outside of the
unit or any specific occupational or geographical grouping Bargaining Unit - Labor Code, Art. 256
within such employer unit.'"
Q: What is the effect of the inclusion as members of
Q: What are the factors which must be considered in employees outside the bargaining unit?
determining the proper constituency of a bargaining unit?
A: The inclusion as union members of employees outside the
A: The test of the grouping is community or mutuality of bargaining unit shall not be a ground for the cancellation of the
interests. This is so because the basic test of an asserted bargaining registration of the union. Said employees are automatically
unit's acceptability is whether or not it is fundamentally the deemed removed from the list of membership of said union.'"
combination which will best assure to all employees the exercise
of their collective bargaining rights.'" 4. Registration of Unions, Chartering, Cancellation of
Registration - Labor Code, Arts. 240.241,245 and 247
The fundamental factors in determining the appropriate collective
bargaining unit are: (1) the will of the employees (Globe Q: What are the requirements for registration as a
Doctrine); (2) affinity and unity of the employees' interest, such legitimate labor organization?
as substantial similarity of work and duties, or similarity of
compensation and working conditions (Substantial Mutual A: A federation, national union or industry or trade union center
Interests Rule); (3) prior collective bargaining history; and (4) or an independent union shall acquire legal personality and shall
similarity of employment status."' be entitled to the rights and privileges granted by law to
legitimate labor organizations upon issuance of the certificate of
a. Commingling or Mixed Membership registration based on the following requirements:
Q: What is commingling or mixed membership? (a) Fifty pesos (P50.00) registration fee;
A: Commingling or mixture of membership is the inclusion as (b) The names of its officers, their addresses, the principal
union members of employees outside the bargaining unit."' It address of the labor organization, the minutes of the
also refers to any mingling between supervisory and rank-and-file organizational meetings and the list of the workers who
employees in its membership in a legitimate labor organization."' participated in such meetings;
(c) In case the applicant is an independent union, the names

of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where
883 DOLE Order No. 40-03, Sec. 1(d), Rule I. it seeks to operate;
884 University of the Philippines v. Hon. Pura Ferrer-Calleja, G.R. No. 96189, 14
July 1992. (d) If the applicant union has been in existence for one or
885 San Miguel Corporation v. The Honorable Bienvenido E. Laguesma, G.R. No. more years, copies of its annual financial reports; and
100485, 21 September 1994.
887 Samahang Manggagawasa Charter Chemical Solidarity of Unions in the
Philippines for Empowerment and Reforms (SMCC-SUPER) v. Charter Chemical
and Coating Corporation, G.R. No.169717, 16 March 2011. 888 Labor Code, Art. 256.
ON LABOR LAW
(e) Four copies of the constitution and by-laws of the Regional Office in accordance with Rule III, Section 2-E of
applicant union, minutes of its adoption or ratification, these Rule.'"
and the list of the members who participated in it.889
Q: What are the grounds for the cancellation of union
Q: How is a local chapter created? registration?
A: A duly registered federation or national union may directly A: The grounds for the cancellation of union registration are as
create a local chapter by issuing a charter certificate indicating follows:
the establishment of the local chapter. The chapter shall acquire
legal personality only for purposes of filing a petition for (a) Misrepresentation, false statement or fraud in connection
certification election from the date it was issued a charter with the adoption or ratification of the constitution and
certificate."' by-laws or amendments thereto, the minutes of ratification,
and the list of members who took part in the ratification;
Q: Are local chapters entitled to the rights and privileges of
(b) Misrepresentation, false statements or fraud in connection
a labor organization?
with the election of officers, minutes of the election of
A: A local chapter shall be entitled to all other rights and officers, and the list of voters; and
privileges of a legitimate labor organization only upon the
(c) Voluntary dissolution by the members.'"
submission of the following documents in addition to its charter
certificate: 5. Sole and Exclusive Bargaining Agent (SEBA) (DOLE
(a) The names of the chapter's officers, their addresses, and D.O No. 40-03, Rule I, Sec.1(u)); Modes to Acquire
the principal office of the chapter; and Status (DOLE D.O. No 40-I-15)
(b) The chapter's constitution and by-laws: provided, that Q: Who is the Sole and Exclusive Bargaining Representative
where the chapter's constitution and by-laws are the (SEBA)?
same as that of the federation or the national union, this
A: The sole and exclusive bargaining representative (SEBA)
fact shall be indicated accordingly."' refers to a legitimate labor union duly recognized or certified as
Q: What is a chartered local? the sole and exclusive bargaining representative or agent of all
the employees in a bargaining unit.'"
A: Chartered local refers to a labor organization in the private
sector operating at the enterprise level that acquired legal
personality through the issuance of a charter certificate by a duly
registered federation or national union and reported to the
839 Labor Code, Art. 240. 892 DOLE D.O. No. 40-03, Rule I, Sec. 1
891 Labor Code, Art. 241. 894 DOLE D.O No. 40-03, Rule I, Sec.1.
ON LABOR LAW
Q: Who is the exclusive representative of the employees for Q: What are the requirements for the request for SEBA
the purpose of collective bargaining? Certification?
A: The labor organization designated or selected by the A: A copy of the certificate of registration or certificate of
majority of the employees in an appropriate collective bargaining creation of chartered local shall be attached to the request which
unit shall be the exclusive representative of the employees in shall indicate:
such unit for the purpose of collective bargaining. However, an
individual employee or group of employees shall have the right a. The name, address, and contact details of the requesting
at any time to present grievances to their employer.895 union or local;
Q: How is an exclusive bargaining representative determined? b. The name, address, and contact details of the company
where it operates;
A: An exclusive bargaining representative is determined through
the following: c. The bargaining unit sought to be represented;
1. Request for certification as sole and exclusive bargaining d. The approximate number of employees in the bargaining
agent (SEBA); unit; and
2. Certification election; e. The statement of the existence/non-existence of the labor

organization/Collective bargaining agreement.89B
3. Consent election;
Q: What is the effect of certification of union or local
4. Re-run election; and chapter as exclusive bargaining agent?
5. Run-off election."' A: Upon the issuance of the certification as sole and exclusive
bargaining agent, the certified union or local shall enjoy all the
a. SEBA Certification - DOLE D.O. No. 40-03, Rule I. Sec. rights and privileges of an exclusive bargaining agent of all the
1, as amended by DOLE D.O. No. 40-J-22 employees in the covered bargaining unit.
Q: Where is the request for SEBA Certification filed? The certification shall bar the filing of a petition for certification
election by any labor organization for a period of one (1) year
A: Any legitimate labor organization may file a request for SEBA
from the date of its issuance. Upon expiration of this one-year
certification in the Regional Office which issued its certificate of
period, any legitimate labor organization may file a petition for
registration or certificate of creation of chartered local.89'
certification election in the same bargaining unit represented by
the certified labor organization, unless a collective bargaining
agreement between the employer and the certified labor organization
was executed and registered with the regional office."'

896 DOLE Order No. 40-03, as amended. 898 DOLE Order No. 40-I-15 series of 2015,
897 DOLE Order No. 40-I-15 series of 2015. 899 DOLE Order No. 40-I-15 series of 2015.
ON LABOR LAW
b. Certification and Consent Election - DOLE D.O. No. 40- 1. When a SEBA certification has been entered or a valid
03, Rules VII and VIII, as amended certification, consent or run-off election has been
conducted within the bargaining unit within one (1) year
Q: What is Certification Election? prior to the filing of the petition for certification election.
A: Certification election refers to the process of determining Where an appeal has been filed from the Order of the
through secret ballot the sole and exclusive representative of the Mediator-Arbiter certifying the results of the election,
employees in an appropriate bargaining unit for purposes of the running of the one (1) year period shall be suspended
collective bargaining or negotiation."° until the decision on the appeal has become final and
executory;
Q: Who may file a petition for certification election? 2. When the duly certified union has commenced and
A: Any legitimate labor organization, including a national union sustained negotiations in good faith with the employer in
or federation that has issued a charter certificate to its local/ accordance with Article 261(renumbered) of the Labor
chapter or the local/chapter itself, may file a petition for Code within the one (1) year period referred to in the
certification election. immediately preceding paragraph;
A national union or federation filing a petition in behalf of its 3. When a bargaining deadlock to which an incumbent or
local/chapter shall not be required to disclose the names of the certified bargaining agent is a party had been submitted
local/chapter's officers and members, but shall attach to the to conciliation or arbitration or had become the subject
petition the charter certificate it issued to its local/chapter.90' of a valid notice of strike or lockout; or
Q: When may an employer file a petition for certification 4. When a collective bargaining agreement between the
election? employer and a duly certified bargaining agent has been
registered in accordance with Article 237(renumbered)
A: When requested to bargain collectively in a bargaining unit of the Labor Code. Where such collective bargaining
where no registered collective bargaining agreement exists, an agreement is registered, the petition may be filed only
employer may file a petition for certification election with the within sixty (60) days prior to its expiry.903
Regional Office."'
Q: Where is a petition for certification election filed?
Q: When may a petition for certification election be filed?
A: A petition for certification election shall be filed with the
A: A petition for certification election may be filed anytime, Regional Office which issued the petitioning union's certificate
except: of registration/certificate of creation of chartered local.904
At the option of the petitioner, a petition for certification election
and its supporting documents may also be filed online.'"
900
Omnibus Rules Implementing the Labor Code, Rule I, Book V, Sec. 1.
901 DOLE Order No. 40-1-15 series of 2015. 9°3 DOLE Order No. 40-03, Rule VIII, Sec. 3.,
904 DOLE
902 Omnibus Rules Implementing the Labor Code, Rule VIII, Book V, Sec. 1. Order No. 40-03, Rule VIII, Sec. 2.
ON LABOR LAW
Q: Who hears and resolves a petition for certification election? of the dismissal in a forum of appropriate jurisdiction at the time
of the issuance of the order for the conduct of a certification
A: The petition shall be heard and resolved by the Med-Arbiter.
election, unless his/her dismissal was declared valid in a final
Where two or more petitions involving the same bargaining unit
judgment at the time of the conduct of the certification election.908
are filed in one Regional Office, the same shall be automatically
consolidated with the Med-Arbiter who first acquired jurisdiction. In case of disagreement over the voters' list or over the
Where the petitions are filed in different Regional Offices, the eligibility of voters, all contested voters shall be allowed to vote.
Regional Office in which the petition was first filed shall exclude However, their votes shall be segregated and sealed in individual
all others; in which case, the latter shall indorse the petition to envelopes."9
the former for consolidation."'
Any member of the bargaining unit who is unintentionally
Q: When is it prohibited to file a petition for certification omitted in the master list of voters may be allowed to vote if
election? both parties agree, otherwise he/she will be allowed to vote but
the ballot is segregated.910
A: It is prohibited to file a petition for certification election in
the following cases: Q: Who shall be certified as the collective bargaining agent?
1. During the existence of a collective bargaining agreement A: The union which obtained a majority of the valid votes cast
except within the freedom period; shall be certified as the sole and exclusive bargaining agent of all
the employees in the appropriate bargaining unit.911
2. Within one (1) year from the date of issuance of
declaration of a final certification election result; or Q: Lazaro, an engineer, organized a union in Garantisado
3. During the existence of a bargaining deadlock to which Construction Corporation (Garantisado) which has 200
an incumbent or certified bargaining agent is a party and employees. He immediately filed a Petition for Certification
which had been submitted to conciliation or arbitration Election, attaching thereto the signatures of 70 employees.
or had become the subject of a valid notice of strike or Garantisado vehemently opposed the Petition, alleging that
lockout.907 25 signatories are probationary employees, while 5 are
supervisors. It submitted the contracts of the 25 probationary
Q: Who are qualified to vote in a certification election? employees and the job description of the supervisors. It
argued that if 30 is deducted from 70, it gives a balance of 40
A: All employees who are members of the appropriate bargaining valid signatures which is way below the minimum number of
unit three (3) months prior to the filing of the petition/request are 50 signatories needed to meet the alleged 25% requirement.
eligible to vote. Also considered qualified voter is an employee
who has been dismissed from work but has contested the legality
905 DOLE 908 DOLE Order No. 40-03, Rule XI, Sec. 6.
Order No. 40-03, Rule VIII, Sec. 2.
906 DOLE Order No. 40-03, Rule VIII, Sec. 2. 909 DOLE Order No. 40-I-15, Rule IX, Sec. 10,
907 National Congress Unions in the Sugar Industry of the Philippines v..Trajano, 910 DOLE Order No. 40-I-15, Rule IX, Sec. 13,
91
G.R. No. L-67485, 10 April 1992. DOLE Order No. 40-I-15, Rule IX, Sec. 15.
ON LABOR LAW
If you are the Director of Labor Relations, will you approve election is voluntarily agreed upon by the parties, with or
the holding of a Certification Election. Explain your answer.912 without the intervention by the Department.'
A: Yes, I will allow the certification election. For the conduct of Q: What is the effect of a consent election?
certification election, at least 25% of the bargaining unit must sign
the petition. Here, since Garantisado has 200 employees, only 50 A: Where a petition for certification election had been filed, and
signatories are necessary for the conduct of a certification upon the intercession of the Med-Arbiter, the parties agree to
election. Of the 70 signatories, only the five (5) supervisory hold a consent election, the results thereof shall constitute a bar
signatures should be excluded since probationary employees are to the holding of a certification election for one (1) year from the
not precluded from joining a union. holding of such consent election. Where an appeal has been filed
from the results of the consent election, the running of the one-
Q: Liwayway Glass has 600 rank-and-file employees. Three year period shall be suspended until the decision on appeal has
rival unions A, B, and C — participated in the certification become final and executory.
elections ordered by the Med-Arbiter. 500 employees voted.
The unions obtained the following votes: A-200; B-150; C-50; Where no petition for certification election was filed but the
90 employees voted "no union"; and 10 were segregated parties themselves agree to hold a consent election with the
votes. Out of the segregated votes, four (4) were cast by intercession of the Regional Office, the results thereof shall
probationary employees and six (6) were cast by dismissed constitute a bar to another petition for certification election."
employees whose respective cases are still on appeal. c. Bars to the Holding of Certification Election - DOLE
Should the votes of the probationary and dismissed employees D.O. No. 40-03, Rule VIII, Sec. 14, and Rule XVII, Sec. 7,
be counted in the total votes cast for the purpose of as amended; Omnibus Rules Implementing the Labor
determining the winning labor union?'" Code, Book V, Rule III, Sec. 14(e)
A: Yes. In Yokohama Tire Philippines, Inc. vs. Yokohama Q: What are the rules prohibiting the filing of a petition for
Philippines Union,914 the Supreme Court held that without a final certification election?
judgment declaring the legality of dismissal, dismissed employees
A: No certification election may be held under the following rules:
are eligible or qualified voters.'
1. Certification year bar rule;
Q: What is consent election?
2. Negotiations bar rule;
A: The contending unions may agree to the holding of an election,
in which case it shall be called a consent election.' A consent 3. Bargaining deadlock bar rule; and
4. Contract bar rule.
912 Bar 2016.

913 Bar 2014.
914 G.R. No. 159553, 10 December 2007.
915 G.R. No. 163532, 10 March 2010; Ba• 2014. 917 Omnibus Rules Implementing the Labor Code, Rule I, Book V, Sec. 1.
916 DOLE Order No. 9, Rule I, as amended by DOLE Order No. 40-03. 918 Omnibus Rules Implementing the Labor Code, Rule VIII, Book V, Sec. 24.
ON LABOR LAW
Q: What is the certification year bar rule? Q: Yellow Bus Company has an existing collective bargaining
agreement (CBA) with Union "X". During the 60-day
A: Certification election may not be held within one (1) year "freedom period," Union "A" filed a petition for certification
from the date of issuance of a final certification election result. election claiming a majority of the rank and file employees of
This means that no petition for certification election may be filed the company had joined it. Pending the hearing of the
within one (1) year from the date of the conduct of a valid petition, the company and Union "X" renegotiated and
certification election or consent election under the supervision of signed a new CBA which is admittedly better than the
the DOLE.919
previous one. In view of this supervening event, the med-
Q: What is the negotiations bar rule? arbiter dismissed the petition of Union "A" for being moot
and academic. Is the dismissal of the petition correct? Can
A: Certification election cannot be held if, before the filing of the company and Union "X" claim the benefit of the
the petition for certification election, the duly recognized or "contract bar rule?"'
certified union has commenced and sustained negotiations with
the employer within one (1) year from the date of a valid A: The dismissal of the petition is incorrect. The Company and
certification, consent, run-off, or re-run elections or from the Union "X" cannot claim the benefit of the "contract bar rule."
date of issuance of SEBA certification by the DOLE."' Under the Omnibus Rules Implementing the Labor Code, a
representation case shall not be adversely affected by any
Q: What is the bargaining deadlock bar rule? collective bargaining agreement registered before or during the
A: Certification election may not be conducted during the last sixty (60) days prior to the expiration of the said agreement.
existence of a bargaining deadlock to which an incumbent or Assuming that all the requirements for certification election have
certified bargaining agent is a party and which had been been complied with, the Med-Arbiter should automatically order
submitted to conciliation or arbitration or had become the subject an election by secret ballot.
of a valid notice of strike or lockout that has already been filed The Article 256 of the Labor Code provides: "In organized
with the regional NCMB.92' establishments, when a verified petition questioning the majority
Q: What is the contract bar rule? status of the incumbent bargaining agent is filed before the
DOLE within the sixty-day period before the expiration of the
A: Certification election may not be conducted during the collective bargaining agreement, the Med-Arbiter shall
existence of a CBA except within the 60-day freedom period."' automatically order an election by secret ballot when the verified
petition is supported by the written consent of at least twenty-
five (25%) percent of all the employees in the bargaining unit to
ascertain the will of the employees in the appropriate bargaining unit."
Assuming that the petition of Union "A" was supported by at
919 DOLE Order No. 40-F-03, Rule XVII, Sec. 7.
920 DOLE Order No. 40-F-03, Rule XVII, Sec.14 (d).
least 25% of the employees in the bargaining unit, the Med-
921 National Congress of Unions in the Sugar Industry of the Philippines
NACUSIP)-TUCP v. Trajano, G.R. No. 76485, 10 April 1992.
922
National Congress of Unions in the Sugar Industry of the Philippines
(NACUSIP)-TUCP v. Trajano, G.R. No. 76485, 10 April 1992. 923 BAR 1989.
ON LABOR LAW
Arbiter should have automatically ordered a certification election provided that the total number of votes for all contending unions
since the petition was duly filed during the freedom period. is at least fifty percent (50%) of the number of votes cast.92'
The Rules implementing the Labor Code provides (in Book V, Q: When is a run-off election proper?
Rule V, Sec. 4) that the representation case shall not be
adversely affected by a collective agreement submitted before or A: A run-off election is proper when an election which provides
during the last 60 days of a subsisting agreement or during the for three (3) or more choices results in none of the contending
pendency of a representation case.924 unions receiving a majority of the valid votes cast, and there are
no objections or challenges which if sustained can materially
d. Failure of Election, Run-off Election, Re-run Election - alter the results. The Election Officer shall then motu proprio
DOLE D.O. No. 40-03, Rule IX, Secs. 17-19, as amended conduct a run-off election within ten (10) days from the close of
the election proceedings between the labor unions receiving the
Q: What is a failure of election? two highest number of votes; provided, that the total number of
A: There is a failure of election where the number of votes cast votes for all contending unions is at least fifty percent (50%) of
in a certification or consent election is less than the majority of the number of votes cast."'
the number of eligible voters and there are no material Q: Who are the voters in a run-off election?
challenged votes. The same shall be declared in the minutes of
the election proceedings."' A: The same voters' list used in the certification election shall
be used in the run-off election. The ballots in the run-off election
Q: What is the effect of a failure of election? shall provide as choices the unions receiving the highest and
A: A failure of election shall not bar the filing of a motion for second highest number of the votes cast. The labor union receiving
the immediate holding of another certification or consent the greater number of valid votes cast shall be certified as the
election within six (6) months from date of declaration of failure winner."' "No Union" shall not be a choice in the run-off election."'
of election.'" Q: What is a re-run election?
Q: What is a run-off election? A: Re-run election refers to an election conducted to break a tie
A: Run-off election refers to an election between the labor between contending unions, including between "no union" and
unions receiving the two (2) highest number of votes in a one of the unions. It shall likewise refer to an election conducted
certification or consent election with three (3) or more choices, after a failure of election has been declared by the election
where such a certified or consent results in none of the three (3) officer and/or affirmed by the mediator-arbiter.931
or more choices receiving the majority of the valid votes cast;
927 DOLE Order No. 40-03, Rule I, Sec. 1.

928 DOLE Order No. 40-03, Rule X, Sec. 1.
924 Labor Code, Art. 256 929 DOLE Order No. 40-03, Rule X, Sec. 2.
925 DOLE Order No. 40-03, Rule IX, Sec. 17. 936 DOLE Order No. 40-03, Rule X, Sec. 1.
926 DOLE Order No. 40-03, Rule IX, Sec. 18. 931 DOLE Order No. 40-03, Rule I, Sec. 1(1).
ON LABOR LAW
Q: When should a re-run election be held? b. You are called upon to decide the case. Which labor
union will you certify as the collective bargaining
A: A re-run election may be held: representative of the employees of the company? Why?
1. When a certification, consent or runoff election results in A: No union could be certified as the bargaining representative
a tie between the two (2) choices;932 or of employees. The labor union receiving the majority of the
2. When there is failure of election. valid votes cast shall be certified as the exclusive bargaining
agent of all the workers in the unit. Thus, to be certified, a
Q: Who is the winner in a re-run election? union must receive at least 441 (900 votes minus 20 invalid
votes). Here, none of the contending unions garnered at least
A: The choice receiving the highest votes cast during the re-run 441 votes.
election shall be declared the winner and shall be certified."3
Q: The constituency of the bargaining unit in Complex
Q: The Construction and Development Corporation has a Electronics Corporation consisted of 800 employees. Four
total of one thousand and one hundred (1,100) employees. In unions - A, B, C, and D - vied to represent the employees for
a certification election ordered by the Bureau of Labor collective bargaining purposes. In a certification election
Relations to elect the bargaining representative of the ordered by the Med-Arbiter, 700 employees voted. Union A
employees, it was determined that only one thousand (1,000) obtained 200 votes; Union B, 150 votes, Union C, 70 votes;
employees are eligible voters. In the election a total of nine and Union D, 30 votes. 250 employees voted "no union."'
hundred (900) ballots were cast. There were fifteen (15)
spoiled ballots and five (5) blank ballots. A total of four (a) Was there a valid election? Why?
hundred (400) votes was cast for ABC Labor Union, a total
A: Yes. There was a valid election. To have a valid election, at
of two hundred forty (240) votes was cast in favor of JVP
least a majority of all eligible voters in the unit must have cast
Labor Union, and a total of two hundred and forty (240)
their votes. Majority of the employees voted considering that 700
votes was in favor of RLG Labor Organization.'
out of 800 employees cast their votes. Thus, the election was valid."'
a. Is there a valid certification election? Why?
(b) Which union should be certified as bargaining representative
A: There is a valid certification election. To have a valid of tire employees? Why?
election, at least a majority of all eligible voters in the unit
A: No union could be certified as bargaining representative of
must have cast their votes. Majority of the employees voted
employees. The labor union receiving the majority of the valid
considering that 900 out of 1000 employees cast their votes.
votes cast shall be certified as the exclusive bargaining agent of
Thus, the election was valid.
all the workers in the unit. Thus, to be certified, a union must
932 DOLE Order No. 40, Rule I, Sec. 15.

933 DOLE Order No. 40-I-15, Rule IX, Sec. 18. 935 BAR 2014.
934 BAR 1990. 936 DOLE Order No. 40-03, Rule IX, Sec.17,
ON LABOR LAW
receive at least 351 votes. Here, none of the contending unions limited to: (1) being notified or informed of petitions of such
garnered at least 351 votes.93' nature; and (2) submitting the list of employees during the pre-
election conference should the Med-Arbiter act favorably on
(c) Should a new election be conducted with all the four
the petition.940
unions participating? Reasons.
However, manifestation of facts that would aid the Med-Arbiter
A: A new election should be conducted but only between the
in expeditiously resolving the petition such as existence of a
unions receiving the two highest number of votes. When an
contract-bar, one-year bar or deadlock bar may be considered.941
election which provides for three or more choices results in no
choice receiving a majority of the valid votes cast, a run-off Throughout the conduct of the certification election, the
election shall be conducted between the labor unions receiving employer shall not harass, intimidate, threat or coerce employees
the two highest number of votes: Provided, That the total number before, during and after elections.942
of votes for all contending unions is at least fifty percent (50%)
of the number of votes cast.938 Q: Samahang East Gate Enterprises (SEGE) is a labor
organization composed of the rank-and-file employees of
(d) Suppose in the election, Union A obtained 300 votes. East Gate Enterprises (EGE), the leading manufacturer of
Union B, 30 votes. Union C, 10 votes and Union D, no all types of gloves and aprons.
votes and 360 voted no union. Should Union A be
certified as bargaining representative? Reasons. EGE was later requested by SEGE to bargain collectively for
better terms and conditions of employment of all the rank-
A: No. The labor union receiving the majority of the valid votes and-file employees of EGE. Consequently, EGE filed a
cast shall be certified as the exclusive bargaining agent of all the petition for certification election before the Bureau of Labor
workers in the unit. Thus, to be certified, a union must receive at Relations (BLR).
least 351 votes. Here Union A only garnered 300 votes.93'
During the proceedings, EGE insisted that it should
6. Employer as a Mere Bystander Rule - DOLE D.O No. 40- participate in the certification process. EGE reasoned that
03, Rule IX, Sec.1, as amended since it was the one who filed the petition and considering
that the employees concerned were its own rank-and-file
Q: What is the role of the employer in determining the employees, it should be allowed to take an active part in the
bargaining representative? certification process.
A: In all cases, whether the petition for certification election is Is the contention of EGE proper? Explain.'"
filed by an employer or a legitimate labor organization, the
employer shall not be considered a party thereto with a A: No. In all cases, whether the petition for certification election is
concomitant right to oppose a petition for certification election. filed by an employer or a legitimate labor organization, the
The employer's participation in such proceedings shall be

937 DOLE Order No. 40-03, Rule IX, Sec.16. 941 DOLE Order No. 40-I-15, Rule VIII, Sec.l.
938 DOLE Order No. 40-03, Rule IX, Sec.l. 942 DOLE Order No. 40-I-15, Rule IX, Sec.l .
939 DOLE Order No. 40-03, Rule IX, Sec.16. 943 BAR 2014.
T
ON LABOR LAW
employer shall not be considered a party thereto with the employee without an individual written authorization duly
concomitant right to oppose a petition for certification election. signed by the employee. The authorization should specifically
The employer's participation in such proceedings shall be state the amount, purpose and beneficiary of the deduction.947
limited to: (1) being notified or informed of petitions of such
nature; and (2) submitting the list of employees during the pre- Q: What is the exception to the rule of individual written
election conference should the Med-Arbiter act favorably on authorization as a requirement for check-off?
the petition."' A: Employees of an appropriate bargaining unit who are not
members of the recognized collective bargaining agent may be
B. Rights of Legitimate Labor Organizations
assessed a reasonable fee equivalent to the dues and other fees
1. Check Off, Assessment, and Agency Fees - Labor Code, paid by members of the recognized collective bargaining agent,
Arts. 250 (n) (o) and 259 (e); DOLE D.O. No. 40-03, Rule if such non-union members accept the benefits under the
XIII. Sec. 1 collective bargaining agreement: Provided, that the individual
authorization required under Article 242, paragraph (o) of the
Q: What is check-off? Labor Code shall not apply to the non-members of the
recognized collective bargaining agent."'
A: Check-off is a method of deducting from an employee's pay
at a prescribed period, the amounts due the union for fees, fines Q: What is the rule on special assessment?
and assessments."'
A: No special assessment or other extraordinary fees may be
Q: What is the requirement for check-off? levied upon the members of a labor organization unless
authorized by a written resolution of a majority of all the
A: No special assessment or other extraordinary fees may be members in a general membership meeting duly called for the
levied upon the members of a labor organization unless purpose. The secretary of the organization shall record the
authorized by a written resolution of a majority of all the minutes of the meeting including the list of all members present,
members in a general membership meeting duly called for the the votes cast, the purpose of the special assessment or fees and
purpose. The secretary of the organization shall record the the recipient of such assessment or fees. The record shall be
minutes of the meeting including the list of all members present, attested to by the president."'
the votes cast, the purpose of the special assessment or fees and
the recipient of such assessment or fees. The record shall be Q: What are agency fees?
attested to by the president."'
A: Agency fees are those reasonable fees assessed to employees
Other than for mandatory activities under the Labor Code, no of an appropriate bargaining unit who are not members of the
special assessment, attorney's fees, registration fees, or any other
extraordinary fees may be checked off from any amount due an
944 Labor Code, Art. 217; Bar 2014.

945A.L. Ammen Transportation v. Bicol Transportation Employees Mutual 9' 7 Labor Code, Art. 250(o).
Association, G.R. No. L-4941, 25 July 1952. 948 Labor Code, Art. 259(e).
946 Labor Code, Art. 250(n). 949 Labor Code, Art. 250.
ON LABOR LAW
recognized collective bargaining agent, if such non-union members accept the benefits under the collective bargaining agreement:
accept the benefits under the collective bargaining agreement."' Provided, that the individual authorization shall not apply to the
non-members of the recognized collective bargaining agent."'
Q: Can an employer demand the check-off of agency fees?
2. Collective Bargaining
A: Yes. The employer shall check-off from non-union members
within a collective bargaining unit the same reasonable fee a. Procedure in Bargaining - Labor Code, Art. 261
equivalent to the dues and other fees normally paid by union
members without the need for individual check-off authorizations."' Q: What is the procedure in collective bargaining?
Q: Can the bargaining agent demand check-off when there A: The following procedure shall be observed in collective
is a representation case? bargaining:
A: Yes. The incumbent bargaining agent shall continue to be 1. When a party desires to negotiate an agreement, it shall
entitled to check-off and collect dues and agency fees despite the serve a written notice upon the other party with a
pendency of a representation case, other inter/intra-union statement of its proposals. The other party shall make a
disputes or related labor relations disputes."' reply thereto not later than ten (10) calendar days from
receipt of such notice;
Q: A is employed by XYZ Company where XYZ Employees
2. Should differences arise on the basis of such notice and
Union (XYZ-EU) is the recognized exclusive bargaining
reply, either party may request for a conference which
agent. Although A is a member of rival union XYR-MU, he
shall begin no later than ten (10) calendar days from the
receives the benefits under the CBA that XYZ-EU had
date of request;
negotiated with the company.
3. If the dispute is not settled, the NCMB shall intervene
XYZ-EU assessed A a fee equivalent to the dues and other
upon request of either or both parties or at its own
fees paid by its members but A insists that he has no obligation to
initiative and immediately call the parties to conciliation
pay said dues and fees because he is not a member of XYZ-
meetings. The NCMB shall have the power to issue
EU and he has not issued an authorization to allow the
subpoenas requiring the attendance of the parties to such
collection. Explain whether his claim is meritorious.'"
meetings. It shall be the duty of the parties to participate
A: A's claim is not meritorious. Employees of an appropriate fully and promptly in the conciliation meetings the
bargaining unit who are not members of the recognized Board may call;
collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the 4. During the conciliation proceedings in the NCMB, the
recognized collective bargaining agent, if such non-union members parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes; and

951 DOLE Order No. 40-03, Rule XXV, Sec. 4.
952 DOLE Order No. 40-03, Rule XIII, Sec. 1.
953
Bar 2010. 954 Labor Code, Art. 259(e); Bar 2010.
ON LABOR LAW
5. The NCMB shall exert all efforts to settle disputes shall be the duty of both parties to keep the status quo and to
amicably and encourage the parties to submit their case continue in full force and effect the terms and conditions of the
to a voluntary arbitrator."' existing agreement during the 60-day period and/or until a new
agreement is reached by the parties.9"
b. Duty to Bargain Collectively - Labor Code, Arts. 262-264
c. Economic Provisions and Conditions
Q: What is the meaning of the duty to bargain collectively?
Q: What is a Collective Bargaining Agreement?
A: The duty to bargain collectively means the performance of
a mutual obligation to meet and convene promptly and A: It refers to the contract between a legitimate labor union and
expeditiously in good faith for the purpose of negotiating an the employer concerning wages, hours of work, and all other
agreement with respect to wages, hours of work and all other terms and conditions of employment in a bargaining unit.959
terms and conditions of employment including proposals for
adjusting any grievances or questions arising under such agreement Q: What are the economic terms and conditions of a CBA?
and executing a contract incorporating such agreements if A: Economic provisions are those which have direct and
requested by either party but such duty does not compel any measurable monetary cost consequences which include but not
party to agree to a proposal or to make any concession.956 limited to:
Q: Discuss the duty to bargain collectively in the absence of 1. Wage Rates;
a collective bargaining agreement.
2. Allowances
A: In the absence of an agreement or other voluntary arrangement
providing for a more expeditious manner of collective bargaining, it 3. Paid Vacation;
shall be the duty of employer and the representatives of the
4. Insurance;
employees to bargain collectively in accordance with the
provisions of the Labor Code."' 5. Pension;
Q: Discuss the duty to bargain collectively when there exists 6. Health and Welfare Plan;
a collective bargaining agreement.
7. Bonuses;
A: When there is a collective bargaining agreement, the duty to
bargain collectively shall also mean that neither party shall 8. Penalty;
terminate nor modify such agreement during its lifetime. However, 9. Promotions;
either party can serve a written notice to terminate or modify the
agreement at least sixty (60) days prior to its expiration date. It 10. Premiums;

957 Labor Code, Art. 262. 959 DOLE Order No. 40-03, Rule I, Sec. 1.
ON LABOR LAW
11. Other Fringe benefits; and no-strike-no lockout clause, (4) labor management council, and
(5) terms and conditions of employment.
12. Others which have monetary values."'
f. Freedom Period
d. Non-Economic Terms and Conditions
Q: What is Freedom Period?
Q: What are the non-economic terms and conditions of
a CBA? A: Freedom period is the last 60 days before the expiration of a
CBA. It is during the freedom period when another union may
A: Non-economic provisions are those whose monetary costs challenge the majority status of the bargaining agent through the
cannot be directly computed such as: filing of a petition for a certification election. If there is no such
1. No-Strike, No-Lockout; petition filed during the freedom period, then the employer shall
continue to recognize the majority status of the incumbent
2. Management Security; bargaining agent where no petition for certification election
is filed.962
3. Union Security Arrangement;
g. Union Security Clause
4. Job Security (Security of Tenure);
5. Management Rights and Prerogatives; Q: What is a union security clause?
6. Company Rules and Regulations; A: A union security clause is a stipulation in the CBA allowing
the parties to require membership in a recognized collective
7. Discipline of Employees; bargaining agent as a condition of employment."'
8. Check-Off; Q: What is a closed-shop agreement?
9. Grievance Machinery; and A: Closed-shop is an arrangement between an employer and a
10. Voluntary Arbitration."' contracting union whereby the employer binds himself to hire
only members of the contracting union who must continue to
e. Mandatory Provisions in a Collective Bargaining Agreement remain members in good standing to keep their jobs."'
Q: What are the mandatory provisions in the CBA?

A: Among the mandatory provisions in the CBA are the
following: (1) grievance procedure, (2) voluntary arbitration, (3)
969 Economic Provisions of Collective Bargaining Agreements, Philippine Statistics 962 Ren Transport Corp v, National Labor Relations Commission, et al, G.R. No.
Authority, Vol. 20, No. 22. 188020, 27 June 2016.
961 Non-Economic Provisions of Collective Bargaining Agreements, Philippine 963 Labor Code, Art. 259.
Statistics Authority, Vol. 25, No. 5. 964 National Labor Union v. Aguinaldo 's Echague, Inc., G.R. No. L-7358, 31 May 1955.
ON LABOR LAW
Q: Distinguish between a "closed shop" clause and a Can Eddie Graciaa and all the PML members be required to
"maintenance of membership" clause."' become members of the AWOL pursuant to the closed shop
provision of the CBA? Why?"'
A: With a "closed shop" clause, the employer shall only hire
members of the contracting union. Said members must remain in A: No. A closed chop provision of the CBA does not apply to
good standing to maintain their employment. On the other hand, those employees who are already members of another union at
"maintenance of membership" clause requires all members at the the time of the signing of the collective bargaining agreement.96'
time of the execution of the CBA to maintain good standing as a
condition of their continued employment. C. Unfair Labor Practices
Q: In a certification election conducted by the Department Q: Discuss the concept of Unfair Labor Practice.
of Labor, Associated Workers Organization in Laguna A: Unfair labor practices violate the constitutional right of
(AWOL) headed by Cesar Montanyo, won over Pangkat ng workers and employees to self-organization, are inimical to the
mga Manggagawa sa Laguna (PML), headed by Eddie Graciaa. legitimate interests of both labor and management, including
Hence, AWOL was certified as the exclusive bargaining agent of their right to bargain collectively and otherwise deal with each
the rank-and-file employees of the Laguna Transportation other in an atmosphere of freedom and mutual respect, disrupt
Company (LTC). industrial peace and hinder the promotion of healthy and stable
Shortly, thereafter, a Collective Bargaining Agreement was labor-management relations.
concluded by LTC and AWOL which provided for a closed Consequently, unfair labor practices are not only violations of
shop. Consequently, AWOL, demanded that Eddie Graciaa the civil rights of both labor and management but are also
and all the PML members be required to become members criminal offenses against the State which shall be subject to
of AWOL as a condition for their continued employment; prosecution and punishment.968
otherwise, they shall be dismissed pursuant to the closed
shop provision of the CBA. Q: Who has the jurisdiction over cases involving unfair
labor practices?
The union security clause of the CBA also provided for the
dismissal of employees who have not maintained their A: Subject to the exercise by the President or by the Secretary
membership in the union. For one reason or another, Francis of Labor and Employment of the powers vested in them by
Magallona, a member of AWOL, was expelled from the Articles 263 and 264 of the Labor Code, the civil aspects of all
union membership for acts inimical to the interest of the cases involving unfair labor practices, which may include claims
union. Upon receipt of the notice that Francis Magallona for actual, moral, exemplary and other forms of damages,
failed to maintain his membership in good standing with attorney's fees and other affirmative relief, shall be under the
AWOL, LTC summarily dismissed him from employment. jurisdiction of the Labor Arbiters.
966 BAR 1999.

967 Labor Code, Art. 259(e).
965 Bar 2015. 968 Labor Code, Art. 258.
ON LABOR LAW
Recovery of civil liability in the administrative proceedings shall Q: When resolving a case of unfair labor practice filed by a
bar recovery under the Civil Code. union, what should be the critical point of analysis to
determine if an act constitutes ULP?973
No criminal prosecution for unfair labor practice may be instituted
without a final judgment finding that an unfair labor practice was A: The critical point of analysis is whether the act violates the
committed, having been first obtained in the administrative rights of workers to self-organization. Said act must be
proceeding. During the pendency of such administrative proceeding, characterized by interference, coercion, restraint by the employer
the running of the period of prescription of the criminal offense to discourage unionism and refusal to bargain a collective
herein penalized shall be considered interrupted: Provided, bargaining agreement. If the act committed by the employer
however, That the final judgment in the administrative proceedings hampers the right of its employees to self-organize, said employer
shall not be binding in the criminal case nor be considered as may be held liable for ULP.
evidence of guilt but merely as proof of compliance of the
requirements therein set forth."' Q: What ULP is not related to a workers' right to self-
organization?
Q: Who may be held criminally liable for committing unfair
labor practice/s? A: To dismiss, discharge or otherwise prejudice or discriminate
against an employee for having given or being about to give
A: The officers and agents of corporations, associations partnerships testimony under the Labor Code.'"
who have actually participated in, authorized or ratified the
unfair labor practices shall be held criminally liable.'" 1. By Employers - Labor Code. Art. 259
On the other hand, the officers, members of governing boards, Q: What are the Unfair Labor Practices committed by
representatives or agents or members of labor associations or employers?
organizations who have actually participated in, authorized or
ratified the unfair labor practices shall be held criminally liable."' A: It shall be unlawful for an employer to commit any of the
following unfair labor practice:
Q: What is the prescriptive period for unfair labor practice?
1. To interfere with, restrain or coerce employees in the
A: All unfair labor practice shall be filed with the appropriate exercise of their right to self-organization;
agency within one (1) year from accrual of such unfair labor
2. To require as a condition of employment that a person or
practice; otherwise, they shall be forever barred."'
an employee shall not join a labor organization or shall
withdraw from one to which he belongs;
3. To contract out services or functions being performed by
union members when such will interfere with, restrain or

97l
Labor Code, Art. 260. "3 Bar 2019.
ON LABOR LAW
coerce employees in the exercise of their rights to self- 8. To pay negotiation or attorney's fees to the union or its
organization; officers or agents as part of the settlement of any issue in
collective bargaining or any other dispute; or
4. To initiate, dominate, assist or otherwise interfere with
the formation or administration of any labor organization, 9. To violate a collective bargaining agreement975
including the giving of financial or other support to it or
its organizers or supporters; Q: Unions "A" and "B" are competing with one another to
organize the employees of Ocean Supermart Inc. It was an
5. To discriminate in regard to wages, hours of work uncertain contest until the President of Ocean Supermart
and other terms and conditions of employment in order issued a written statement expressing the hope that the
to encourage or discourage membership in any labor employees refrain from joining a union but in the event they
organization. Nothing in this Code or in any other law should decide to do so, stating his preference for Union "A".
shall stop the parties from requiring membership in a In the certification election Union "B" lost. Is there an unfair
recognized collective bargaining agent as a condition for labor practice? Reasons."'
employment, except those employees who are already
members of another union at the time of the signing of A: Yes. Ocean Supermart is guilty of unfair labor practice.
the collective bargaining agreement. Employees of an Under Article 259 of the Labor Code, it is an unfair labor
appropriate bargaining unit who are not members of the practice to interfere with, restrain or coerce employees in the
recognized collective bargaining agent may be assessed exercise of their right to self-organization. In issuing a written
a reasonable fee equivalent to the dues and other fees statement expressing hope that their employees refrain from
paid by members of the recognized collective bargaining joining a union and its preference for Union A should employees
agent, if such non-union members accept the benefits decide to join one, Supermart is deemed to have interfered with
under the collective bargaining agreement: Provided, and/or restrained its employees right to self-organization.
that the individual authorization required under Article
Q: When is a violation of the collective bargaining agreement
242, paragraph (o) of this Code shall not apply to the
by the employer considered an unfair labor practice?
non-members of the recognized collective bargaining agent;
A: To constitute unfair labor practice, violations of the CBA
6. To dismiss, discharge or otherwise prejudice or
must be gross. Gross violation of the CBA means flagrant and/or
discriminate against an employee for having given or
malicious refusal to comply with the economic provisions thereof.977
being about to give testimony under this Code;
7. To violate the duty to bargain collectively as prescribed
by this Code;
975 Labor Code, Art. 259,

976 BAR 1989.
A
ON LABOR LAW
Q: When is there a yellow-dog contract? Q: What is surface bargaining?

A: When the company requires as a condition of employment A: Surface bargaining is defined as going through the motions
that a person or an employee shall not join a labor organization of negotiating without any legal intent to reach an agreement.983
or shall withdraw from one to which he belongs.978
Q: What is a Run-away shop?
Q: When is there company unionism?
A: A runaway shop is defined as an industrial plant moved by
A: When the employer initiates, dominates, assists or otherwise its owners from one location to another to escape union labor
interferes with the formation or administration of any labor regulations or state laws, but the term is also used to describe a
organization, including the giving of financial or other support to plant removed to a new location in order to discriminate against
it or its organizers or supporters.979 employees at the old plant because of their union activities. It is
one wherein the employer moves its business to another location
Q: When is contracting out considered an unfair labor practice? or it temporarily closes its business for anti-union purposes. A
A: When the employer contract out services or functions being runaway shop in this sense, is a relocation motivated by anti-
performed by union members when such will interfere with, union animus rather than for business reasons.'"
restrain or coerce employees in the exercise of their right to self-
2. By Labor Organizations - Labor Code, Art. 260
organization."°
Q: What are the Unfair Labor Practices of Organizations?
Q: When is there refusal to bargain?
A: It shall be unfair labor practice for a labor organization, its
A: Where the employer did not even bother to submit an answer
officers, agents or representatives:
to he bargaining proposals of the union, there is a clear evasion
of the duty to bargain collectively. Failing to comply with the 1. To restrain or coerce employees in the exercise of their
mandatory obligation to submit a reply to the union's proposals, right to self-organization. However, a labor organization
the employer violated its duty to bargain collectively, making it shall have the right to prescribe its own rules with
liable for unfair labor practice.981 respect to the acquisition or retention of membership;
Q: What is the effect of the employer's refusal to bargain? 2. To cause or attempt to cause an employer to discriminate
against an employee, including discrimination against an
A: The union's draft CBA proposal can be unilaterally imposed employee with respect to whom membership in such
upon the employer to govern their relationship.'" organization has been denied or to terminate an employee
on any ground other than the usual terms and conditions
under which membership or continuation of membership
is made available to other members;
978 Labor Code, Art. 259(b).
979 Labor Code, Art. 259 (d).
9813 Labor Code, Art. 259(c). Standard Chartered Bank v. Confessor, G.R. No. 114974, 16 June 2004.
983
981 General Milling Corp. v. Court of Appeals, G.R. No. 146728, 11 February 2004. Complex Electronics Employees Association v. The National Labor Relations
984
982
Id. Commission, G.R. No. 121315, 19 July 1999.
ON LABOR LAW
3. To violate the duty, or refuse to bargain collectively with characterized by a party's an unwillingness to bargain in good
the employer, provided it is the representative of the faith or merely hard bargaining.
employees;
On the other hand, Blue Sky Bargaining is characterized by
4. To cause or attempt to cause an employer to pay or unrealistic and unreasonable demands in negotiations by the
deliver or agree to pay or deliver any money or other parties and refusal to concede to anything.
things of value, in the nature of an exaction, for services
which are not performed or not to be performed, D. Peaceful Concerted Activities
including the demand for fee for union negotiations; (e)
To ask for or accept negotiation or attorney's fees from 1. Strikes, Picketing, and Lockouts - Labor Code, Art. 278;
employers as part of the settlement of any issue in Omnibus Rules Implementing the Labor Code, Book V,
collective bargaining or any other dispute; or Rule XIII
5. To violate a collective bargaining agreement.98' Q: What is the policy of the state on strikes, picketing and
lockouts?
Q: What is featherbedding?
A: It is the policy of the State to encourage free trade unionism
A: Featherbedding is an unfair labor practice of a union which and free collective bargaining.
causes our attempts to cause an employer to pay or deliver or
Workers shall have the right to engage in concerted activities for
agree to pay or deliver any money or things of value, in the
nature of an exception for services which are not performed or purposes of collective bargaining or for their mutual benefit and
protection. The right of legitimate labor organizations to strike
not to be performed, including the demand for a fee for union
and picket and of employers to lockout, consistent with the
negotiations.98'
national interest, shall continue to be recognized and respected.
Q: What is blue-sky bargaining? However, no labor union may strike and no employer may
declare a lockout on grounds involving inter-union and intra-
A: Blue-sky bargaining is defined as making exaggerated or union disputes."'
unreasonable proposals."'
Q: What is a strike?
Q: Differentiate "surface bargaining" from "blue-sky bargaining."988
A: Strike means any temporary stoppage of work by the concerted
A: Surface bargaining is defined as "going through the motions action of employees as a result of an industrial or labor dispute."'
of negotiating" without any legal intent to reach an agreement.
The intent of the party may be determined from the totally of its
conduct both at and away from the bargaining table. It is also

986 Labor Code, Art. 260 (d).
987 Standard Chartered Bank v. Confesor, G.R. No. 114974, 16 June 2004. 989 Labor Code, Art. 278.
988 Bar 2010. 996 Labor Code, Art. 219 (o).
ON LABOR LAW
Q: What is a lockout? called for that purpose; and (c) a notice be given to the DOLE of
the results of the voting at least seven days before the intended strike.
A: Lockout means any temporary refusal of an employer to
furnish work as a result of an industrial or labor dispute."' These requirements are mandatory, and the union's failure to
comply renders the strike illegal. The 15 to 30-day cooling-off
Q: What are the grounds for a strike and lockout? period is designed to afford the parties the opportunity to
A: A strike or lockout may be declared in cases of bargaining amicably resolve the dispute with the assistance of the NCMB
deadlocks and unfair labor practices. Violations of collective conciliator/mediator, while the seven-day strike ban is intended
bargaining agreements, except flagrant and/or malicious refusal to give the DOLE an opportunity to verify whether the projected
to comply with its economic provisions, shall not be considered strike really carries the imprimatur of the majority of the
unfair labor practice and shall not be strikeable. No strike or union members."'
lockout may be declared on grounds involving inter-union and
Q: What are the contents of the notice of strike?
internal union disputes or on issues brought to voluntary or
compulsory arbitration.992 A: The notice shall state, among others, the names and
addresses of the employer and the union involved, the nature of
Q: Who may declare a strike or lockout? the industry to which the employer belongs, the number of union
A: Any certified or duly recognized bargaining representative members and of the workers in the bargaining unit, and such
may declare a strike in cases of bargaining deadlocks and unfair other relevant data as may facilitate the settlement of the dispute,
labor practices. The employer may declare a lockout in the same such as a brief statement or enumeration of all pending labor
cases. In the absence of a certified or duly recognized bargaining disputes involving the same parties.
representative, any legitimate labor organization in the In cases of bargaining deadlocks, the notice shall, as far as
establishment may declare a strike but only on grounds of unfair practicable, further state the unresolved issues in the bargaining
labor practices.993 negotiations and be accompanied by the written proposals of the
Q: What are the requisites for a valid strike? union, the counter-proposals of the employer and the proof of a
request for conference to settle the differences. In cases of unfair
A: The following are the requisites for a valid strike: (a) a labor practices, the notice shall, as far as practicable, state the
notice of strike be filed with the Department of Labor and acts complained of and the efforts taken to resolve the dispute
Employment (DOLE) 30 days before the intended date thereof, amicably.
or 15 days in case of unfair labor practice; (b) a strike vote be
approved by a majority of the total union membership in the Any notice that does not conform to the above-mentioned
bargaining unit concerned, obtained by secret ballot in a meeting requirements shall be deemed as not having filed. " 5
991 Labor Code, Art. 219 (p). 994 Phimco Industries, Inc. v. Phimco Industries Labor Association, G.R. No.
992 Omnibus Rules Implementing the Labor Code, Rule XIII, Book V, Sec. 1. 170830, 11 August 2010.
993 Omnibus Rules Implementing the Labor Code, Rule XIII, Book V, Sec. 2. 995 Omnibus Rules Implementing the Labor Code, Rule XIII, Book V, Sec. 4.
ON LABOR LAW
Q: What are the rules on Strike and Lockout vote? even if a replacement had been hired by the employer during
such lawful strike.998
A: A decision to declare a strike must be approved by a
majority of the total union membership in the bargaining unit Q: On May 24, 1989, the UKM urged its member-unions to
concerned obtained by secret ballot in meetings or referenda join a "Welga ng Bayan" in support of its efforts to pressure
called for the purpose. Congress to increase the daily minimum wage. Union "X" is
a member of the UKM and represents all the rank-and-file
A decision to declare a lockout must be approved by a majority
employees of the Puritan Mining Company. Following the
of the board of directors of the employer corporation or
call for a nationwide strike, Union "X" staged a strike and
association or the partners in a partnership obtained by a secret
put up a picket the following day. As a result, the company's
ballot in a meeting called for the purpose.
operations were paralyzed although company officials and
The regional branch of the Board may, at its own initiative or supervisory employees were allowed ingress and egress to
upon the request of any affected party, supervise the conduct of and from the company premises. The picket was likewise
the secret balloting. In every case, the union or the employer peaceful. On May 28, 1989, the UKM leadership announced
shall furnish the regional branch of the Board the notice of the end of the "Welga ng Bayan." Union "X" immediately
meetings referred to in the preceding paragraph at least twenty- lifted its picket and its members went back to work. The
four (24) hours before such meetings as well as the results of the company sought our legal advice on the legality of the strike
voting at least seven (7) days before the intended strike or and the liability, if any, of the union officers and the
lockout, subject to the cooling-off period."' participating members. What is your opinion? Explain.999
Q: When is there union busting? A: The strike is illegal. A strike may only be conducted on the
ground of bargaining deadlock or unfair labor practice. Neither
A: There is union busting when the existence of the union is exists in this case. Hence, the strike is illegal.
threatened by the employer's act of dismissing the former's
officers who have been duly-elected in accordance with its Any union officer who knowingly participates in an illegal strike
constitution and by-laws."' and any worker or union officer who knowingly participates in
the commission of illegal acts during a strike may be declared to
Q: What is the liability for participating in an illegal strike? have lost his employment status.
A: Any union officer who knowingly participates in an illegal Q: What is the rule when there exists a labor dispute
strike and any worker or union officer who knowingly causing or likely to cause a strike or lockout in hospitals,
participates in the commission of illegal acts during a strike may clinics and similar medical institutions?
be declared to have lost his employment status: Provided, That
mere participation of a worker in a lawful strike shall not A: In line with the national concern for and the highest respect
constitute sufficient ground for termination of his employment, accorded to the right of patients to life and health, strikes and
lockouts in hospitals, clinics and similar medical institutions
Omnibus Rules Implementing the Labor Code, Rule XIII, Book V, Sec. 7.
996
997Pepsi-Cola Products Philippines, Inc. v. i%Iolon, et al., G.R. No. 175002, 18 998 Labor Code, Art. 279(a).
February 2013. 999 BAR 1989.
ON LABOR LAW
shall, to every extent possible, be avoided, and all serious efforts, The Union submitted its Collective Bargaining Agreement
not only by labor and management but government as well, be (CBA) negotiation proposals to the Hotel. Due to the
exhausted to substantially minimize, if not prevent, their adverse bargaining deadlock, the Union, on December 20, 2014, filed
effects on such life and health, through the exercise, however a Notice of Strike with the National Conciliation and
legitimate, by labor of its right to strike and by management to Mediation Board (NCMB). Consequently, the Union conducted
lockout. In labor disputes adversely affecting the continued a Strike Vote on January 14, 2015, when it was approved.
operation of such hospitals, clinics or medical institutions, it
shall be the duty of the striking union or locking-out employer to The next day, waiters who are members of the Union came
provide and maintain an effective skeletal workforce of medical out of the Union office sporting closely cropped hair or
and other health personnel, whose movement and services shall cleanly shaven heads. The next day, all the male Union
be unhampered and unrestricted, as are necessary to insure the members came to work sporting the same hairstyle. The
proper and adequate protection of the life and health of its Hotel prevented these workers from entering the premises,
patients, most especially emergency cases, for the duration of the claiming that they violated the company rule on Grooming
strike or lockout.1"° Standards.
Q: What is picketing? On January 16, 2015, the Union subsequently staged a picket
outside the Hotel premises and prevented other workers
A: Picket simply means to march to and from the employer's from entering the Hotel. The Union members blocked the
premises, usually accompanied by the display of placards and ingress and egress of customers and employees to the Hotel
other signs making known the facts involved in a labor dispute. premises, which caused the Hotel severe lack of manpower
It is a strike activity separate and different from the actual and forced the Hotel to temporarily cease operations resulting
stoppage of work.'"' in substantial losses.
Q: What are the requisites for a lawful picketing? On January 20, 2015, the Hotel issued notices to Union
members, preventively suspending them and charging them
A: No person engaged in picketing shall commit any act of with the following offenses:
violence, coercion or intimidation or obstruct the free ingress to
or egress from the employer's premises for lawful purposes, or (1) illegal picket; (2) violation of the company rule on
obstruct public thoroughfares.'°" Grooming Standards; (3) illegal strike; and (4) commission
of illegal acts during the illegal strike. The Hotel later
Q: Asia Union (Union) is the certified bargaining agent of terminated the Union officials and members who participated
the rank-and-file employees of Asia Pacific Hotel (Hotel). in the strike.
The Union denied it engaged in an illegal strike and
countered that the Hotel committed an unfair labor practice
(ULP) and a breach of the freedom of speech.
1000
Labor Code, Art. 279(a).
1001 Phimco Industries, Inc. v. Phimco Industries Labor Association, G.R. No.
170830, 11 August 2010.
1002 DOLE Order No. 40-03, Rule XXII, Sec. 13.
ON LABOR LAW
Was the picket illegal? Was the mass action of the Union Q: What are the legal implications of such certification or
officials and members an illegal strike? Explain."°3 assumption order?
A: The picket was illegal. No person engaged in picketing shall A: Such assumption or certification shall have the effect of
commit any act of violence, coercion or intimidation or obstruct automatically enjoining the intended or impending strike or
the free ingress to or egress from the employer's premises for lockout as specified in the assumption or certification order. If
lawful purposes, or obstruct public thoroughfares.' 004 one has already taken place at the time of assumption or
certification, all striking or locked out employees shall
The mass action of the Union officials and members in cropping immediately return to work and the employer shall immediately
or shaving their heads was not merely an expression of their resume operations and readmit all workers under the same terms
grievance or displeasure but, indeed, a calibrated and calculated and conditions prevailing before the strike or lockout. The
act designed to inflict serious damage to the Hotel's finances or Secretary of Labor and Employment or the Commission may
its reputation. Thus, the Union's concerted violation of the seek the assistance of law enforcement agencies to ensure
Hotel's Grooming Standards which resulted in the temporary compliance with this provision as well as with such orders as he
cessation and disruption of the Hotel's operations is an may issue to enforce the same.'"?
unprotected act and should be considered as an illegal strike.'oo5
Q: What is the effect if the return-to-work order is not
2. Assumption of Jurisdiction by Secretary of Labor and expressly stated in the assumption or certification order?
Employment - Labor Code, Art. 278 (g); DOLE D.O. No.
40-H-13 A: The mere issuance of an assumption order by the Secretary
of Labor automatically carries with it a return-to-work order,
Q: When can there be assumption of jurisdiction by the even if the directive to return to work is not expressly stated in
DOLE Secretary? the assumption order. The moment the Secretary of Labor assumes
jurisdiction over a labor dispute in an industry indispensable to
A: When, in his opinion, there exists a labor dispute causing or
national interest, such assumption shall have the effect of
likely to cause a strike or lockout in an industry indispensable to
automatically enjoining the intended or impending strike.'"
the national interest, the Secretary of Labor and Employment
may assume jurisdiction over the dispute and decide it or certify
the same to the Commission for compulsory arbitration.'
1003 BAR 2016.

1°°5 National Union of Workers
in the Hotel Restaurant and Allied Industries
(NUWHRAINAPL-IUF) Dusit Hotel Nikko Chapter v. Court of Appeals, G.R. No. 1007 Labor Code, Art. 278(g).
163942, 11 November 2008; BAR 2016. 1008 Telefunken Semiconductors Employees Union-FEW v. Court of Appeals, G.R.
1006 Labor Code, Art. 278. No. 143013-14, 18 December 2000.
A
JURISDICTION AND REMEDIES 407
7. Wage distortion disputes in unorganized establishments

IX. Jurisdiction and Remedies not voluntarily settled by the parties pursuant to Republic
Act No. 6727;1010
A. Labor Arbiter
8. Enforcement of compromise agreements when there is
Q: What are the cases falling under the jurisdiction of non-compliance by any of the parties pursuant to Article
Labor Arbiters? 227 of the Labor Code, as amended;101'
A: Labor Arbiters shall have jurisdiction to hear and decide the 9. Money claims arising out of employer-employee relationship
following cases involving all workers, whether agricultural or or by virtue of any law or contract, involving Filipino
non-agricultural: workers for overseas employment, including claims for
1. Unfair labor practice (ULP) cases; actual, moral, exemplary and other forms of damages;1012
2. Termination disputes (i.e., illegal dismissal cases); 10. Contested cases under the exception clause of Article
128(b) of the Labor Code;1013 and
3. If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of pay, 11. Other cases as may be provided by law.1014
hours of work and other terms and conditions of employment;
Q: What is the nature of the jurisdiction of Labor Arbiters?
4. Claims for actual, moral, exemplary and other forms of
A: The jurisdiction conferred by Article 224 of the Labor Code
damages arising from employer-employee relations;
upon the Labor Arbiters is both original and exclusive.1°15
5. Cases arising from any violation of Article 279 of the
Labor Code, including questions involving the legality Q: What are the exceptions to the original and exclusive
of strikes and lockouts; jurisdiction of Labor Arbiters?
6. Except claims for Employees' Compensation, Social Security, A: Labor Arbiters may not exercise their original and exclusive
Medicare (PhilHealth) and maternity benefits, all other jurisdiction in the following cases:
claims arising from employer-employee relations, including 1. Assumed cases. When the DOLE Secretary or the President
those of persons in domestic or household service, involving exercises his power to assume jurisdiction over national
an amount exceeding Five Thousand Pesos (P5,000.00), interest cases and decide them himself.1016
whether or not accompanied with a claim for reinstatement;' 009

1°1 1 Labor Code, Art. 233.
1012 R.A.
No. 8042, Sec. 10, as amended by R.A. No. 10022.
1009 Labor Code, Art. 224. 1°13 Labor Code, Art. 128(b), as amended b) R.A. No. 7730.
1014 2011
NLRC Rules of Procedure, Rule V, Section 1(j).
406 1016 Labor Code, Art. 278 (g).
408 COMPENDIOUS BAR REVIEWER JURISDICTION. AND REMEDIES 409
ON LABOR LAW
2. Certified cases. When the NLRC exercises its power of in violation of their rights to procedural and substantive due
compulsory arbitration over similar national interest cases process. The NLRC affirmed the LA's decision. FUNI
that are certified to it by the DOLE Secretary pursuant to elevated the case to the CA, which ruled that there was
the exercise by the latter of his certification power.101 substantial evidence to prove that respondents had been
illegally dismissed. A review of the records show that the
3. Cases arising from CBA. When cases arise from the respondents likewise filed a complaint before the POEA for
interpretation or implementation of collective bargaining violation of the 2002 POEA Rules and Regulations Governing
agreements and from the interpretation or enforcement the Recruitment and Employment of Land-Based Overseas
of company personnel policies which shall be disposed Workers, alleging the same set of facts filed before the LA.
of by the Labor Arbiter by referring the same to the Did the CA, in affirming the decisions of the LA and NLRC,
grievance machinery and voluntary arbitration, as may violate the doctrine of primary administrative jurisdiction?
be provided in said agreements.1018
A: No. While it is true that respondents alleged the same set of
4. Cases submittedfor voluntary arbitration. When the parties facts before both the LA and the POEA, they nevertheless raised
agree to submit the case to voluntary arbitration before a different causes of actions. The LA complaint involved the issue
Voluntary Arbitrator or panel of Voluntary Arbitrators of illegal dismissal and various money claims against FUNI,
who, under Articles 274 and 275 of the Labor Code, are whereas the POEA complaint involved the administrative
also possessed of original and exclusive jurisdiction to disciplinary liability for violation of the POEA rules.
hear and decide cases mutually submitted to them by the
parties for arbitration and adjudication.1019 The doctrine of primary jurisdiction does not apply considering
that a review of the respective jurisdictions of the POEA and the
Q: FUN, Inc. (FUNI) hired respondents as construction LA would show that the two administrative bodies do not have
workers in Taiwan for a duration of three (3) years with a concurrent jurisdiction. The LA has original and exclusive
monthly salary of NTD 10,000. The respondents were then jurisdiction or hear and decide the claims arising out of an
made to live in unsafe conditions and were hidden from employer-employee relationship or by virtue of any law or
authorities since they only had tourist visas. They sought contract involving Filipino workers for overseas deployment
help from media groups to put out their story. Upon including claims for damages. On the other hand, the POEA
discovery of the publication of their experiences, FUNI exercises administrative jurisdiction arising out of violations of
terminated the respondents and processed their repatriation rules and regulations and disciplinary jurisdiction over employers,
from Taiwan. Respondents thereafter filed a complaint for principals, partners and overseas Filipino workers. Thus, their
illegal dismissal and money claims against FUNI. The LA jurisdictions do not overlap as to warrant the application of the
ruled in favor of the respondents and found that they had doctrine of primary jurisdiction.'020
been constructively dismissed due to unfavorable working
conditions and the termination of their employment was done
1017 Labor Code, Art. 278 (g).

1°18 Labor Code, Art. 224 (c). 1020 U R Employed International Corporation v. PINMILIW, G.R. No. 225263, 16
1°19 Labor Code, Art. 224 (c). March 2022.
410 COMPENDIOUS BAR REVIEWER JURISDICTION AND REMEDIES 411
ON LABOR LAW
1. Jurisdiction - Labor Code, Arts. 124 and 224; R.A. No. b. That in order to resolve such issues, there is a need
8042, as amended by R.A. No. 10022, Sec. 10; 2011 to examine evidentiary matters; and
NLRC Rules of Procedure, as amended, Rule V, Sec. 1
c. That such matters are not verifiable in the normal
Q: Distinguish between the jurisdiction of the Labor Arbiter course of inspection.'"'
and the Regional Director.
Q: DOLE issued Department Order No. 118- 12 on January
A: 13, 2012 providing for a fixed and performance compensation
scheme in the computation of public utility bus driver's or
1. Money claims cases. Labor Arbiters have jurisdiction over conductor's wage. On July 28, 2014, respondents filed a
money claims arising from employer-employee relations complaint for underpayment of wages against DLTB. DLTB
in an amount exceeding P5,000 regardless of whether claimed that respondents are not entitled to receive the
there is a claim for reinstatement. On the other hand, the statutory minimum wage rates for the NCR because they are
Regional Director has jurisdiction over money claims all assigned in various operations centers of DLTB located in
arising from employer-employee relations in an amount the South Luzon and Visayas regions at the time of the
not exceeding P5,000 per claimant, provided there is no institution of the complaint. The LA held that respondents
claim for reinstatement. are entitled to their monetary claims. However, NLRC found
2. Inspection of establishment cases. As duly authorized the LA to have committed grave abuse of discretion in assuming
representatives of the DOLE Secretary, Regional Directors jurisdiction over the case. The NLRC held that the LA
may exercise visitorial and enforcement powers in inspection disregarded the provisions of DO 118-12 which categorically
of establishment cases, regardless of whether the total provided that compliance with minimum wages, and wage-
amount of claims per employee exceeds P5,000. The related benefits of public utility bus drivers and conductors
following requisites must concur: shall be enforced by the appropriate Regional Office of the
DOLE having jurisdiction over the principal office of the
a. The employer-employee relationship should still exist; owner/operator. The CA reversed the ruling of the NLRC
and noted that the primary cause of action of respondents
b. The findings in question were made in the course of
involved underpayment of wages, hence within the jurisdiction
inspection by labor inspectors; and
of the LA and NLRC pursuant to Article 224 of the Labor
c. The employees have not initiated any claim or complaint Code, as amended. Is the CA correct?
with the DOLE Regional Director under Article 129,
A: No. The DOLE, pursuant to Article 128 of the Labor Code
or the Labor Arbiter under Article 217.
and the provisions of DO 118-12, has the purview of the
However, the Labor Arbiters have jurisdiction over jurisdiction. The CA therefore erred in affirming Labor Arbiter's
contested cases involving inspection of establishments. The assumption of jurisdiction. If a complaint is brought before the
following elements must concur: DOLE to give effect to the labor standards provisions of the
Labor Code or other labor legislation, and there is a finding by
a. That the employer contests the findings of the labor
regulations officer and raises issues thereon;
ON LABOR LAW
the DOLE that there is an existing employer-employee relationship, citizen. Under Article 217 of the Labor Code, read in relation to
the DOLE exercises jurisdiction to the exclusion of the NLRC. If Section 10 of R.A. No. 8042, the LA has original and exclusive
the DOLE finds that there is no employer-employee relationship, jurisdiction to hear and decide all disputes involving the
the jurisdiction is properly with the NLRC. termination of workers.1024
If a complaint is filed with the DOLE, and it is accompanied by a 2. Mode of Appeal to the NLRC — 2011 NLRC Rules of
claim for reinstatement, the jurisdiction is properly with the Procedure, as amended, Rule VI
Labor Arbiter, under Art. 217 (3) of the Labor Code, which provides
that the Labor Arbiter has original and exclusive jurisdiction Q: What are the requisites to perfect an appeal with the NLRC?
over those cases involving wages, rates of pay, hours of work,
A: The appeal shall be:
and other terms and conditions of employment, if accompanied
by a claim for reinstatement. If a complaint is filed with the NLRC, 1. Filed within the reglementary period;
and there is still an existing employer-employee relationship, the
jurisdiction is properly with the DOLE. The findings of the 2. Verified by the appellant himself/herself;
DOLE, however, may still be questioned through a petition for 3. In the form of a memorandum of appeal which shall state
certiorari under Rule 65 of the Rules of Court.1022 the grounds relied upon and the arguments in support
Q: Consolacion is a Hong Kong-based, Filipino flight attendant thereof; the relief prayed for, and with a statement of the
of Hiroshi Airlines (HA), a Japanese airline licensed to do date the appellant received the appealed decision, award
business in the Philippines. She was dismissed from or order;
employment as she was accused of stealing wine bottles and 4. In three (3) legibly typewritten or printed copies; and
cheese from the Melbourne-bound aircraft of HA. Consolacion
then instituted a complaint for illegal dismissal and money 5. Accompanied by:
claims against HA with the Labor Arbiter (LA). In its
a. proof of payment of the required appeal fee and legal
defense, HA asserted that the LA had no jurisdiction to hear
research fee;
the dispute as the incident occurred in a foreign jurisdiction
and involved a foreign entity. Does the LA have jurisdiction b. posting of a cash or surety bond equivalent in amount
over the case? Explain.'023 to the monetary award, exclusive of damages and
attorney's fees; and
A: Yes. Notwithstanding the fact that the incident occurred in a
foreign jurisdiction involving a foreign entity (HA), Consolacion c. proof of service upon the other parties. l°25
is nevertheless considered an Overseas Filipino Worker (OFW)
within the meaning of Section 10 of R.A. No. 8042 since she is
engaged in an activity in a country or state of which she is not a
1022 Del Monte Land Transport Bus, Co. v. Armenia, G.R. No. 240144, 3 February 1024 Salvation A. Lamadrid v. Cathay Pacific Airways Limited and Vivian Lo, G.R.
2021. No. 200658, 23 June 2021.

1023 BAR 2023. 1025 Labor Code, Art. 229; NLRC Rules of Procedure, Rule VI, Sec. 4.
ON LABOR LAW
Q: Which of the above requisites are mandatory and affirmation of the perfection of PRBFI's appeal. Therefore, the
jurisdictional? NLRC did not acquire jurisdiction over the appeal and the
judgment it issued is null and void.1027
A: The following requisites are mandatory and jurisdictional:
Q: Nalawon, et al. were unionized employees of the WOW
1. Observance of the reglementary period;
Disco Pub (WOW). Winona, a member of the management
2. Payment of appeal fee and legal research fee; and of WOW, informed Nalawon et al. that due to bankruptcy,
the business would be closing down. Nalawon, et al. pushed
3. Posting of bond in case of monetary awards.1" 6 back, arguing that the closure was a mere ruse to terminate
them and thus they filed a complaint for unfair labor
Q: Respondents, all employed as coconut parers by PRBFI,
practice, illegal dismissal, underpayment, and non-payment
filed a complaint for illegal dismissal. They averred, among
against the business owners, Winona, Owen, and Winnipeg.
others, that there is lack of basis for their dismissal due to
For their part, Winona denied the existence of an employer-
loss of trust and confidence as this ground refers to
employee relationship between her and Nalawon, et al., claiming
managerial and confidential employees and they were only
that she was a mere lessor for WOW and the business was
rank-and-file workers of PRBFI. The Labor Arbiter ruled in
actually registered under the name of her partner, Winnipeg.
favor of the respondents. PRBFI appealed to NLRC, filed a
motion to reduce bond, and tendered a cash bond in the The LA ruled the Wynona, Owen, and Winnipeg are
amount of P100,000. Respondents assailed PRBFI's appeal solidarily liable for Nalawon, et al.'s dismissal in the total
for failure to post the required bond. The NLRC did not act amont of Php 5,000,000.00. Aggrieved, Wynona appealed to
on the motion but proceeded to resolve the case. Did the the NLRC and posted a cash bond of Php 1,000,000.00 and a
NLRC acquire jurisdiction over the appeal? surety bond of Php 500,000.00. The NLRC exonerated
Wynona from liability absent substantial evidence of an
A: No. Section 6, Rule VI of the 2011 NLRC Rules provides that
employer-employee relationship with Nalawon, et al. who
an appeal may be perfected by the appellant-employer only by
elevated the case to the CA. The CA granted the petition and
the posting of a bond in the equivalent amount of the full monetary
ruled that Wynona failed to perfect her appeal to the NLRC.
award granted to the appellee-employee. The perfection of an
appeal in the manner and within the period set by law is not only Is the CA correct? Explain.
mandatory but jurisdictional. Consequently, there should be no
implied approval of a jurisdictional requirement that has not been A: Yes. The right to appeal is a mere statutory privilege
complied with. Otherwise, the ground of lack of jurisdiction exercised only in the manner and in accordance with the
becomes a waivable defect in procedure. In the present case, requirements of the law. Article 223 of the Labor Code set forth
PRBFI filed a motion to reduce bond before the NLRC, but the the Rules on Appeal to the NLRC from the Decisions, Awards or
latter never acted on it. Instead, the NLRC resolved the case on Orders of the Labor Arbiter. The rules specifically provide that
all its substantial points. Such cannot be deemed as an implied "[in] case of a judgment involving a monetary award, an appeal
'026 2011 NLRC Rules of Procedure, Rule VI, Sec. 6; Cawaling v. Menese, A.C. No. [027 Pacific Royal Basic Foods, Inc. v. Noche, et al., G.R. No. 202392, 04 October
9698, 13 November 2013. 2021.
416 COMPENDIOUS BAR REVIEWER JURISDICTION.AND REMEDIES 417
ON LABOR LAW
by the employer may be perfected only upon the posting of a 3. Five (5) calendar days — for appeals from decisions of
cash or surety bond issued by a reputable bonding company duly the DOLE Regional Director under Article 129 of the
accredited by the Commission in the amount equivalent to the Labor Code.1031
monetary award in the judgment appealed from."
Q: What are the grounds to appeal before the NLRC?
Appeals involving monetary awards are perfected only upon
compliance with the following mandatory requisites, namely: (1) A: The appeal may be entertained only on any of the following
payment of the appeal fees; (2) filing of the Memorandum of grounds:
Appeal; and (3) payment of the required cash or surety bond. For 1. If there is prima facie evidence of abuse of discretion on
the posting of cash or surety bond, its purpose is to assure the the part of the Labor Arbiter or Regional Director;
employees that they will receive the monetary award granted
them if they finally prevail in the case. The bond also serves to 2. If the decision, award or order was secured through fraud
discourage employers from using the Appeal to delay, or even or coercion, including graft and corruption;
evade, their obligation to satisfy the judgment. Notably, the
3. If made purely on questions of law; and/or
posting of Appeal Bond is not only mandatory but jurisdictional
as well. 4. If serious errors in the findings of facts are raised which,
if not corrected, would cause grave or irreparable damage
Here, at the same time Wynona received notice of the LA's
or injury to the appellant.'"2
decision, she likewise immediately deposited the surety and cash
bonds in favor of Nalawon, et al. Thus, such payment within the Q: What is the effect of a perfected appeal with the NLRC?
reglementary period constitute substantial compliance and demonstrate
her willingness to abide with the rules on the perfect of appeal.'°28 A: The perfection of an appeal shall stay the execution of the
decision of the Labor Arbiter except the execution for
Q: What is the reglementary period to appeal before the NLRC? reinstatement pending appeal. 1033
A: The reglementary period depends on the nature of the case, 3. Reinstatement and/or Execution Pending Appeal — Labor
reckoned from the date of receipt of the appealed decision: Code, Art. 229; 2011 NLRC Rules of Procedure, as
1. Ten (10) calendar days — for appeals from decisions of amended, Rule IX, Sec. 12
the Labor Arbiters under Article 223 of the Labor Code;1029
Q: What is the nature of the order of the Labor Arbiter on
2. Five (5) calendar days — for appeals from decisions of reinstatement?
the Labor Arbiters in contempt cases;1030 and
A: The reinstatement order of the Labor Arbiter is immediately
executory even pending appeal or posting of a bond by the
employer.1034
1028
Salazar v. Simbajon. G.R. No. 202374, 30 June 2021. 1031 Labor Code, Art. 129.
1029
Labor Code, Art. 229; 2011 NLRC Rules of Procedure, Rule VI, Sec. 1. 1032 Labor Code, Art. 229; 2011 NLRC Rules of Procedure, Rule VI, Sec. 2.
1030
2011 NLRC Rules of Procedure, Rule IX, Sec. 1. 1033 2011 NLRC Rules of Procedure, Rule XI, Sec. 3.
ON LABOR LAW
Q: Due to serious business reverses, ABC Co. decided to (b) Assuming that jurisdiction is not at issue and that the
terminate the services of several officers receiving "fat" NLRC reverses the LA's ruling of illegal dismissal with
compensation packages. One of these officers was Mr. X, its finality, may ABC Co. claim reimbursement for the amounts
Vice-President for External Affairs and a member of the it paid to Mr. X during the time that he was on payroll
Board of Directors, Aggrieved, Mr. X filed a complaint for reinstatement pending appeal? Explain.'037
illegal dismissal before the National Labor Relations Commission
(NLRC) — Regional Arbitration Branch. A: No, it may not. A reinstatement order by the LA is immediately
executory and no reimbursement is due even if it is reversed
ABC Co. moved for the dismissal of the case on the ground on appea1.1" 8
of lack of jurisdiction, asserting that since Mr. X occupied
the position of Vice-President for External Affairs which is B. National Labor Relations Commission
listed in the by-laws of the corporation, the case should have
been filed before the Regional Trial Court. 1. Jurisdiction
The Labor Arbiter (LA) denied ABC Co.'s motion and a. Original — Labor Code, Arts. 225 (d), (e) and 278 (2);
proceeded to rule that Mr. X was illegally dismissed. Hence, 2011 NLRC Rules of Procedure, as amended, Rule XII,
he was reinstated in ABC Co.'s payroll pending its appeal to Sec. 1
the NLRC.
Q: What are the cases falling under the original jurisdiction
(a) Did the LA err in denying ABC Co.'s motion to dismiss of the NLRC?
on the ground of lack of jurisdiction? Explain.
A: The NLRC has original jurisdiction over the following cases:
A: No, the LA did not err. There is a two-tiered test to
1. Injunction in ordinary labor disputes;1039
determine whether a dispute is with the LA or the RTC, to wit: a)
the status of the relationship of the parties, and b) the nature of the 2, Injunction in strikes or lockouts;1040 and
question that is the subject of the controversy. '°35 Distinction
should be made between a labor controversy and an intra-corporate 3. Certified cases for compulsory arbitration.'"
dispute. Not all conflicts between a corporation and a stockholder
involve corporate matters.1036 b. Appellate — Labor Code, Art. 129; 2011 NLRC Rules of
Procedure, as amended, Rule VI, Sec. 1
In the case at bar, since Mr. X seeks to recover his position as a
Vice-President of External Affairs and not as a member of the Q: What are the cases falling under the exclusive appellate
board of ABC Co., then the LA has jurisdiction to try his case jurisdiction of the NLRC?
and therefore the motion to dismiss was correctly denied by the LA.
1037 BAR 2019.

'034 Labor Code, Art. 223 (3); Pioneer Texturing v. National Labor Relations 1038 Garcia v. Philippine Airlines, Inc., G.R. No. 164856, 20 January 2009.
Commission, G.R. No. 118651, 16 October 1997. 1039 Labor Code, Art. 225(e).
1035 Viray
v. Court of Appeals, G.R. No. 92481, 9 November 1990. Pm Labor Code, Art. 278(g).
1°36 Cosare v. Broadcom, G.R. No. 201298, 5 February 2014. 1°41 Labor Code, Art. 278(g).
420 COMPENDIOUS BAR REVIEWER JURISDICTION'AND REMEDIES 421
ON LABOR LAW
A: The NLRC has exclusive appellate jurisdiction over the Q: What is the test to determine whether an employee is
following cases: barred from collecting accrued wages?
1. All cases decided by the Labor Arbiters including contempt A: Two tests must be satisfied: (1) there must be actual delay or
cases;1042 and the fact that the order of reinstatement pending appeal was not
executed prior to its reversal; and (2) the delay must not be due
2. Cases decided by the DOLE Regional Directors or his to the employer's unjustified act or omission.'46
duly authorized Hearing Officers under Article 129.1'
C. Court of Appeals; Requisites (Rules of Court, Rule 65)
2. Mode of Appeal and Requisites
Q: How is a labor case elevated to the Court of Appeals?
Q: What is the effect of the NLRC's reversal of the Labor
Arbiter's reinstatement order? A: Since there is no appeal from the decision of the NLRC,1047
the only way to elevate the case to the Court of Appeals is
A: Even if the order of reinstatement of the Labor Arbiter is through a Rule 65 special civil action for certiorari under the
reversed on appeal, the employer is still obliged to reinstate and Rules of Court.1048
pay the wages of the employee during the period of appeal until
reversal by a higher court or tribunal. Q: Is there an exception to the aforementioned rule?
On the other hand, if the employee has been reinstated during the A: Yes. The only exception to the foregoing rule is in the case
appeal period and such reinstatement order is reversed with of decisions, orders or awards issued by the Voluntary Arbitrator
finality, the employee is not required to reimburse whatever salary or panel of Voluntary Arbitrators, which may be elevated to the
he received for he is entitled to such, more so if he actually Court of Appeals through a Rule 43 petition for review under the
rendered services during the period?' Rules of Court.'°49
Q: Is there an exception to the aforementioned rule? D. Supreme Court; Requisites (Rules of Court, Rule 45)
A: Yes. After the Labor Arbiter's decision is reversed by a Q: How is a labor case elevated to the Supreme Court?
higher tribunal, the employee may be barred from collecting the
accrued wages if it is shown that the delay in enforcing the A: From the ruling of the Court of the Appeals, labor cases may
reinstatement pending appeal was without fault on the part of be elevated to the Supreme Court through a Rule 45 petition for
the employer.'°45 review on certiorari under the Rules of Court.'°50
1046 Garcia v. Philippine Airlines, Inc., G.R. No. 164856, 20 January 2009.
1042 Labor Code, Art. 224 (b). 1047 Labor Code, Art. 20(b).
1043 Labor Code, Art. 129. 1048 Rules of Court, Rule 65, Sec. 1.
1044 1049 Rules of Court, Rule 43, Sec. 1.
Roquero v. Philippine Airlines, Inc., G.R. No. 152329, 22 April 2003.
1045 Garcia v. Philippine Airlines, Inc., G.R. No. 164856, 20 January 2009. 1050 Rules of Court, Rule 45, Sec. 1.
422 COMPENDIOUS BAR REVIEWER JURISDICTION/ AND REMEDIES 423
ON LABOR LAW
Q: Puresilver Inc. (Puresilver) hired Brian as a store reckoned from the date Brian received notice of the NLRC's
office/manager who is the principal officer to respond when Resolution denying his motion for reconsideration.
the store alarm system sends alerts who is tasked with the
activation of the intruder alarm system. One day when the E. Bureau of Labor Relations; Jurisdiction and Procedure
alarm system went off, Brian arrived at the store only hours (DOLE D.O. No. 40- 03, Rule XI)
after the incident despite being informed immediately of the
presence of an intruder. Puresilver conducted an investigation Q: What are the cases falling under the jurisdiction of the
and served a Notice to Explain upon Brian, before eventually officials belonging to the BLR?
serving him a Notice of Termination. Brian sued Puresilver A: The BLR and the Labor Relations Divisions in the DOLE
for illegal dismissal before the Labor Arbiter, who ruled in regional offices shall have original and exclusive authority to act,
favor of Brian. at their own initiative or upon request of either or both parties, on:
Puresilver moved to annul the LA's decision, claiming that 1. All inter-union conflicts;
the LA had no jurisdiction since it had not been properly
served with summons. The NLRC remanded the case for 2. All intra-union conflicts; and
further proceedings for failure of the LA to acquire
3. All disputes, grievances or problems arising from or
jurisdiction over Puresilver. In October 2016, the NLRC
affecting labor-management relations in all workplaces,
denied Brian's motion for reconsideration and it was only
whether agricultural or nonagricultural, except those arising
months later, in March 2017, that Brian filed a petition for
from the implementation or interpretation of CBA.'"2
certiorari with the CA. The CA gave due course on Brian's
petition for certiorari. Hence, Puresilver filed a petition for F. National Conciliation and Mediation Board (Executive
review on certiorari under Rule 45 before the SC. Order No. 126, as amended by E.O. No. 251);
Did the CA commit grave abuse of discretion in giving due Conciliation v. Mediation
course on Brian's petition despite the same being filed five
(5) months after the denial of his motion for reconsideration? Q: What are the issues falling under the jurisdiction of the
NCMB?
A: Yes. Under the Rules of Court, petitions for certiorari must
A: The NCMB has jurisdiction over the following:
be filed strictly within sixty (60) days from notice of judgment or
from the order denying a motion for reconsideration. There can 1. Collective bargaining disputes;'"3
no longer be any extension of the 60-day period within which to
file a petition for certiorari, save in exceptional or meritorious 2. Notice of strike or lockout;1054 and
cases anchored on special or compelling reasons.1051 The 3. Preventive mediation.'"5
reglementary period to avail of the remedy of certiorari must be

1053 Labor Code, Art. 261 (c).
1051 Puregold Price Club, Inc. v. Court of Appeals, G.R. No. 233474, 15 February
1054 Revised NCMB Manual of Procedures for Conciliation and Preventive Mediation
2022. Cases, Rule V.
ON LABOR LAW
Q: What is a preventive mediation case? 2. Small money claims from labor standards violations not
exceeding P5,000 and not accompanied with a claim for
A: A preventive mediation case refers to the potential labor reinstatement under Article 129;
dispute subject for conciliation and mediation assistance sought
by either or both parties or upon the initiative of the NCMB to 3. Occupational safety and health standards violations;
avoid the occurrence of actual labor dispute.
4. Union registration and cancellations;
Q: What is the distinction between conciliation and mediation? 5. Complaints against private recruitment and placement
A: Conciliation is a mild form of intervention by a neutral third agencies (PRPAs) for local employment; and
party, the Conciliator-Mediator, who relying on his persuasive 6. Cases submitted to voluntary arbitration in their capacity
expertise, takes an active role in assisting parties by trying to as Ex Officio Voluntary Arbiters.'"8
keep disputants talking, facilitating other procedural niceties, carrying
messages back and forth between the parties, and generally being Q: What orders/writs may Regional Directors issue?
a good fellow who tries to keep things calm and forward-looking
in a tense situation.'°56 A: DOLE Regional Directors may issue the following:
On the other hand, mediation is a mild intervention by a neutral 1. Compliance orders — to compel employers to comply
third party, the Conciliator Mediator, who advises the parties or with labor laws and regulations after hearing out a labor
offers solutions or alternatives to the problems with the end in standards case.'"9
view of assisting them towards voluntarily reaching their own 2. Writ of execution — to enforce his order upon the appropriate
mutually acceptable settlement of the dispute.'°57 authority.1060
G. DOLE Regional Directors; Jurisdiction (Labor Code, 3. Work stoppage order — to stop or suspend operation of
Arts. 128-129; Omnibus Rules Implementing the Labor any unit or department of an establishment when non-
Code, Book Ill, Rule X, Secs. 2 and 3(a)) compliance with the law, safety order or implementing
rules and regulations poses grave and imminent danger
Q: What are the cases falling under the jurisdiction of the
to the health and safety of workers in the workplace."'
Regional Director?
A: The Regional Director has jurisdiction over the following cases: Q: Nelson complained before the DOLE Regional Office
about Needy Corporation's failure to pay his wage increase
1. Labor standards enforcement cases under Article 128; amounting to P5,000.00 as mandated in a Wage Order issued
by the Regional Tripartite Wages and Productivity Board.
Consequently, Nelson asked the DOLE to immediately issue
1055 Revised NCMB Manual of Procedures for Conciliation and Preventive Mediation
Cases, Rule V.
1056 1°58 DOLE D.O. No. 83-07, Series of 2007.
Revised NCMB Manual of Procedures for Conciliation and Preventive Mediation
Cases, Rule III, No. 4. 1059 Labor Code, Art. 128.
1°57 Revised NCMB Manual of Procedures for Conciliation and Preventive Mediation 106° Omnibus Rules Implementing the Labor Code, Book III, Rule X, Sec. 2.
Cases, Rule III, No. 22. l°6I Omnibus Rules Implementing the Labor Code, Book III, Rule X, Sec. 3 (a).
ON LABOR LAW
an Order sustaining his money claim. To his surprise, he received H. DOLE Secretary
a notice from the DOLE to appear before the Regional
Director for purposes of conciliating the dispute between him Q: What are the issues falling under the original jurisdiction
and Needy Corporation. When conciliation before the Regional of the DOLE Secretary?
Director failed, the latter proceeded to direct both parties to A: When, in his opinion, there exists a labor dispute causing or
submit their respective position paper in relation to the dispute. likely to cause a strike or lockout in an industry indispensable to
Needy Corporation argued, that since Nelson was willing to the national interest, the DOLE Secretary may assume jurisdiction
settle for 75% of his money claim during conciliation proceedings, over the dispute and decide it or certify the same to the Commission
only a maximum of 75% of the said money claim may be for compulsory arbitration.'"3
awarded to him.
(a) Was DOLE's action to conduct mandatory conciliation in Q: What are the cases falling under the appellate jurisdiction
light of Nelson's complaint valid? of the DOLE Secretary?
A: Yes. In relation to R.A. 10396 or the "Mandatory Conciliation- A: The DOLE Secretary has appellate jurisdiction over the
Mediation Law," Article 234 of the Labor Code provides that all following:
issues arising from labor and employment shall be subject to 1. Labor standards cases, including occupational safety and
mandatory conciliation-mediation. The Labor Arbiter or appropriate health standards, from the decision of the DOLE Regional
DOLE agency or office that has jurisdiction over the dispute Director;' 064
shall entertain only endorsed or referred cases by the duly
authorized officer. 2. Orders of the DOLE Regional Director;m65
(a) Should the Regional Director sustain Needy Corporation's 3. Union registration or cancellation cases, from the decision
argument? of the BLR; and
A: No. Article 239 of the Labor Code provides that the information 4. Certification election cases from the decision of the
and statements given in confidence at the conciliation-mediation Med-Arbiter.
proceedings shall be treated as privileged communication and
shall not be used as evidence in any arbitration proceeding, 1. Visitorial and Enforcement Powers - Labor Code, Arts.
except when there is a waiver of confidentiality. In the present 128 and 289
case, Nelson's willingness to settle for 75% of his money claim
Q: How may the DOLE Secretary exercise his visitorial and
may not be used against him in the money claims before the
enforcement powers?
Regional Director due to the confidentiality rule?'
1063
1065 Rules on the Disposition of Labor Standards Cases in the Regional Offices, Rule
1062
BAR 2018. IV, Sec. 1.
ON LABOR LAW
A: The DOLE Secretary may exercise his visitorial and enforcement Q: Inggo is a drama talent hired on a per drama "participation
powers: basis" by DJN Radio Company. He worked from 8:00 a.m.
until 5:00 p.m., six days a week, on a gross rate of P80.00 per
1. To access to employer's records and premises at any script, earning an average of P20,000.00 per month. Inggo
time of the day or night whenever work is being filed a complaint before the Department of Labor and Employment
undertaken therein; (DOLE) against DJN Radio for illegal deduction, non-payment
2. To copy therefrom; of service incentive leave, and 13th month pay, among others.
On the basis of the complaint, the DOLE conducted a plant
3. To question any employee; level inspection.
4. To investigate any fact, condition or matter which may The DOLE Regional Director issued an order ruling that
be necessary to determine violations or which may aid in Inggo is an employee of DJN Radio, and that Inggo is entitled
the enforcement of this Code and of any labor law, wage to his monetary claims in the total amount of P30,000.00.
order or rules and regulations issued pursuant thereto; DJN Radio elevated the case to the Secretary of Labor who
affirmed the order. The case was brought to the Court of
5. To issue compliance orders based on the findings of
Appeals. The radio station contended that there is no employer-
labor employment and enforcement officers or industrial
employee relationship because it was the drama directors
safety engineers made in the course of inspection;
and producers who paid, supervised, and disciplined him.
6. To issue writs of execution to the appropriate authority Moreover, it argued that the case falls under the jurisdiction
for the enforcement of their orders, except in cases of the NLRC and not the DOLE because Inggo's claim
where the employer contests the findings of the labor exceeded PS,000.00.1" 7
employment and enforcement officer and raises issues
(a) May DOLE make a prima facie determination of the
supported by documentary proofs which were not
existence of an employer employee relationship in the
considered in the course of inspection;
exercise of its visitorial and enforcement powers?
7. To order stoppage of work or suspension of operations
A: Yes. The DOLE has the power to determine the existence of
of any unit or department of an establishment when non-
an employer-employee relationship in the exercise of its visitorial
compliance with the law or implementing rules and regulations
and enforcement power. If there is employer employee relationship,
poses grave and imminent danger to the health and
the DOLE exercises jurisdiction to the exclusion of NLRC. If
safety of workers in the workplace; and
there is no employer-employee relationship, the jurisdiction is with
8. To require employers to keep and maintain such employment the NLRC. However, the findings of the DOLE may still be
records as may be necessary in aid of his visitorial and questioned through a petition for certiorari under Rule 65 of the
enforcement powers.1" 6 Rules of Court.'o6s
1067 BAR 2016.

1066 Rules on the Disposition of Labor Standards Cases in the Regional Offices, Rule 1068 People's Broadcasting Service v. Secretary of the Department of Labor and
IV, Sec. 1. Employment, G.R. No. 179652, 6 March 2012.
430 COMPENDIOUS BAR REVIEWER JURISDICTION.AND REMEDIES 431
ON LABOR LAW
(b) If the DOLE finds that there is an employee-employer 1. Special civil action for certiorari under Rule 65 of the
relationship, does the case fall under the jurisdiction of Rules of Court before the Court of Appeals; or
the Labor Arbiter considering that the claim of Inggo is
more than P5,000.00. Explain. 2. Appeal with the Office of the President.1072
A: No. In jurisprudence, the visitorial and enforcement powers I. Voluntary Arbitrator; Jurisdiction and Procedure —
of the Secretary, exercised through his representatives, encompass Labor Code, Arts. 274-277; Revised Procedural Guidelines
compliance with all labor standards laws and other labor legislation, in the Conduct of Voluntary Arbitration Proceedings
regardless of the amount of the claims filed by workers; thus,
even claims exceeding P5,000.00.1069 Q: Who is a voluntary arbitrator?
A: A Voluntary Arbitrator is:
Q: May the orders of the DOLE Secretary be subject to
inj unction? 1. Any person accredited by the NCMB as such; or
A: No. It shall be unlawful for any person or entity to obstruct, 2. Any person named or designated in the CBA by the
impede, delay or otherwise render ineffective the orders of the parties to act as their Voluntary Arbitrator; or
DOLE Secretary, and no inferior court or entity shall issue temporary
or permanent injunction or restraining order or otherwise assume 3. One chosen with or without the assistance of the NCMB,
jurisdiction over any case involving the enforcement orders.'°7° pursuant to a selection procedure agreed upon in the
CBA; or
2. Power to Suspend Effects of Termination - Labor Codes
4. Any official that may be authorized by the DOLE Secretary
Art. 292 (b)
to act as Voluntary Arbitrator upon the written request
Q: What is the DOLE Secretary's power to suspend the effects and agreement of the parties to a labor dispute.1073
of termination?
Q: What are the issues falling under the jurisdiction of the
A: The DOLE Secretary may suspend the effects of the termination Voluntary Arbitrator?
pending resolution of the dispute in the event of a prima facie
finding by the appropriate official of the DOLE before whom A: The Voluntary Arbitrator or panel of Voluntary Arbitrators
such dispute is pending that the termination may cause a serious shall have original and exclusive jurisdiction to hear and decide
labor dispute or is in implementation of a mass layoff.1071 all unresolved grievances:
1. Arising from the interpretation or implementation of the
Q: What are the remedies available from the DOLE Secretary's CBA; and
decision?
2. Arising from the interpretation or enforcement of company
A: The adverse party may avail of the following remedies: personnel policies.1074
'069 Meteoro v. Creative Creatures, Inc., G.R. No. 171275, 13 July 2009.
1°7° Labor Code, Art. 128. 1°72 Administrative Order No. 22, series of 2011.
1°71 Labor Code, Art. 129. 1073 Labor Code, Sec. 219 (n).
ON LABOR LAW
Q: Do gross violations of the CBA fall under the jurisdiction Q: The Union and the Company submitted the issue on
of the Voluntary Arbitrator? whether rank-and-file employees are entitled to salary
adjustments under the CBA for voluntary arbitration before
A: No. Gross violations of the CBA, meaning flagrant and/or the NCMB. In the interim of the arbitration proceedings, two
malicious refusal to comply with the economic provisions of groups of employees retired from service. Group A signed
such agreement, are treated as unfair labor practice. Hence, they quitclaims to enable them to receive their retirement
fall under the jurisdiction of the Labor Arbiter and not the benefits, while Group B refused and opted to wait for the
Voluntary Arbitrator.1" 5 resolution of the arbitration case. The NCMB Voluntary
Arbiter ruled that the employees were entitled to salary
Q: What is the effect of awards of voluntary arbitrators? increases. As a consequence, the issue of whether Group A
A: Awards of voluntary arbitrators determine the rights of parties; could claim the salary adjustments despite the execution of
hence, their decisions have the same legal effect as judgments of quitclaims was likewise submitted for arbitration. The Union
a court. A voluntary arbitrator by the nature of her functions, acts moved for reconsideration of the Voluntary Arbiter's ruling.
in a quasi-judicial capacity. It follows that the voluntary arbitrator, However, the same was denied and the Union received notice
whether acting solely or in a panel, enjoys in law the status of a of such denial on 27 November 2017.
quasi-judicial agency but independent of, and apart form, the
Thus, the Union elevated the case to the CA on 12 December
NLRC since his decisions are not appealable to the latter.1076
2017. The petition for review, however, was dismissed by the
If no appeal is made, the award is final and executory after ten CA, stating, among others, that the ruling of the Voluntary
(10) calendar days from the receipt of the copy of the award or Arbiter cannot be the subject of a motion for reconsideration
decision by the parties.1077 and the same thus became final and executory unless
duly appealed.
Q: What are the remedies available from the voluntary
arbitrator's award? Was the Union able to timely appeal the resolution of the
Voluntary Arbiter and file its petition for review before the
A: The adverse party may avail of the following remedies: CA within the reglementary period?
1. Motion for reconsideration;1078 or A: Yes. Under Article 276 of the Labor Code, the award or
decision of voluntary arbitrators shall be final and executory
2. Petition for review under Rule 43 of the Rules of Court; or after 10 calendar days from notice. On the other hand, Rule 43 of
3. Special civil action for certiorari under Rule 65 of the the Rules of Court provides that an appeal from the judgment or
Rules of Court. final orders of voluntary arbitrators must be made within 15 days
from notice. The Supreme Court has had occasion to clarify that
clarified that the 10-day period in Article 276 should be
understood as the time within which the adverse party may move
1075 Labor Code, Art. 274. for a reconsideration from the decision or award of the voluntary
1°76 Omnibus Rules Implementing the Labor Code, Rule XI, Sec. 1. arbitrators. Thereafter, the aggrieved party may appeal to the CA
1077 Omnibus Rules Implementing the Labor Code, Rule XI, Sec. 3. within 15 days from notice pursuant to Rule 43 of the Rules
1°78 Philippine Electric Corporation v. Court of Appeals, G.R. No. 168612, 10
December 2014. of Court.
ON LABOR LAW
In this case, the Union received the resolution denying its motion complaint, the pertinent provisions of the Civil Code, rather than
for reconsideration on 27 November 2017. Thus, the Union had the Labor Code, prevail.'°"
fifteen (15) days, or until 12 December 2017 to perfect its
appeal. The Union's petition for review was filed well within the 2. Illegal Dismissal - Civil Code, Art. 1146
reglementary period, thus the CA erred in dismissing the same."'
Q: What is the prescriptive period of illegal dismissal cases?
J. Prescription of Actions
A: Four (4) years from the time the cause of action accrued.1083
1. Money Claims - Labor Code, Art. 306
3. Unfair Labor Practices - Labor Code, Art. 305
Q: What is the prescriptive period of money claims arising
Q: What is the prescriptive period of unfair labor practice
from employer-employee relations?
cases?
A: Three (3) years from the time the cause of action accrued.'"
A: One (1) year from the time the acts complained of were
Q: In what instances may the three-year prescriptive period committed.
be interrupted?
4. Illegal Recruitment - R.A. No. 8042, as amended, Sec. 12
A: The prescriptive period of money claims under Article 291
of the Labor Code is interrupted by: (1) the filing of an action; Q: What is the prescriptive period of illegal recruitment cases?
(2) a written extrajudicial demand by the creditor; and (3) a A: Five (5) years for simple illegal recruitment cases; Twenty
written acknowledgment of the debt by the debtor.'"1 (20) years for illegal recruitment cases involving economic sabotage.
Q: Does the three-year prescriptive period apply if the money 5. Offenses Under the Labor Code
claim is only incidental to an illegal dismissal case?
Q: What is the prescriptive period of all criminal offenses
A: No. Article 291 of the Labor Code applies to purely money penalized under the Labor Code?
claims as a consequence of employer-employee controversies.
Where the dispute involves questions arising primarily from A: Three (3) years from the time of commission of the criminal
injury to one's rights (under contract or substantive provisions of offense.1" 4
the Labor Code) other than sheer monetary demands, and in
which such monetary claims are only coincidental to the main o0o
1°79 Dorelco Employees Union-ALU-TUCP v. Don Orestes Romualdez Electric

Cooperative (DORELCO), G.R. No. 240130, 15 March 2021.
1080 1082 -
Labor Code, Art. 291. 1-•an-Fil Co., Inc. v. Agujar, G.R. No. 81948, 9 November 1988.
1081 1083 Civil Code, Art.
Civil Code, Art. 1155; National Union of Workers in Hotel Restaurant and 1146.
Allied Industries v. Philippine Plaza Holdings, Inc., G.R. No. 177524, 23 July 2014. 1084 Labor Code, Art. 290.
ABOUT THE AUTHORS
Dean Nilo T. Divina

Dean Divina is the Dean of his alma
mater, the University of Santo Tomas
(UST) Faculty of Civil Law. He is also
the Managing Partner of DivinaLaw, one
of the biggest law firms in the country today.
Dean Divina is an esteemed practitioner,
academic administrator, law professor and
an acknowledged expert in Commercial Law. He is heralded as
one of the country's Top 100 lawyers since 2018 and awarded as
one of the industry's best employers and has won awards as
Managing Partner of the Year in 2015 and 2017 and 2021. In
2022, he was recognized as an outstanding alumnus of UST in
the field of law.
As an ardent advocate of improving legal education in the
country, Dean Divina has solely authored eight law books—a
Handbook on Commercial Law in 2005 (with 2010 Revised
Edition), a Guidebook on Commercial Law in 2016, Questions
& Answers on the Revised Corporation Code in 2020, Divina on
Commercial Law and Bar Q&A in Commercial Law 2009-2019
in 2021, Bar Q&A on Commercial Law for the past 10 years in
2022, and Divina on Commercial Law: A Comprehensive Guide
in 2023. He achieved a milestone as an author and member of
the academe when he produced the 2023 Divina Compendium
Bar Reviewer for all subjects of the Bar Exams
As a former scholar himself, Dean Divina gives back by
waiving his royalties from his authored books to either make
them affordable or by donating all of his royalties to scholarships
and/or charity. His books are all best-selling and widely praised
437
438 COMPENDIOUS BAR REVIEWER ABOUT THE AUTHORS 439
ON LABOR LAW
by readers—from students to members of the bar. To encourage the University of the East with the degree of Bachelor of Science
more lawyers and practitioners to write and share their expertise, in Commerce. Atty. Gonzales is also a Certified Public Accountant.
in 2023, Dean Divina incepted the publication of a collection of
reviewers for all bar subjects. Mr. Harly Jayson U. Reyes
In true dynamic fashion, Dean Divina envisioned the Atty. Reyes is a Partner at DivinaLaw
'T.**. • ' and a part of the Firm's
Compendious Reviewer to symbolize the values he upholds in *.A4, litigation team. He
practice—excellence, discipline and grit. He motivated his graduated from the San Beda College of
lawyers to give back and pay it forward by sharing their Law in 2013. He has a bachelor's degree in
expertise collaboratively. Commerce majoring in Legal Management
from De La Salle University. He previously
With the burning passion to educate, Dean Divina also served as an associate in a tax firm and a
regularly writes in Daily Tribune's bi-weekly column called "A credit analyst in a major bank in the
Dose of Law". A Dose of Law tackles recent jurisprudence and Philippines.
discusses highly relevant laws and regulations. The column has
produced more than 400 published articles and has reached more Jarodelyn N. Mabalot
than two million readers worldwide.
Atty. Mabalot is a Senior Associate at
Dean Divina graduated Magna Cum Laude and class DivinaLaw and a member of the Firm's
valedictorian from the UST Faculty of Civil Law. Corporate and Special Projects Division.
She has extensive experience in labor law
As a man of faith, Dean Divina is known for his quote compliance, corporate governance, regulatory
"Pray as if everything depends on prayer, and work as if practice, and data privacy. Atty. Mabalot
everything depends on work." obtained her Juris Doctor degree from the
University of Santo Tomas Faculty of Civil
Alden Francis C. Gonzales
Law. She received her bachelor's degree from the same
Atty. Gonzales is a Senior Partner university and graduated Magna Cum Laude.
and the Head of the Litigation and Labor
department at DivinaLaw. For his extensive Marifelle L. Isip
experience and exemplary litigation practice, Atty. Isip is a Senior Associate at
Atty. Gonzales has been consistently named DivinaLaw and a member of the Firm's
among the Top 100 lawyers in the Philippines litigation division. She graduated from the
by Asia Business Law Journal since 2018. University of Santo Tomas Faculty of Civil
Atty. Gonzales graduated Magna Cum Law. She earned her bachelor's degree in
Laude from the University of Santo Tomas Legal Management at the same university
Faculty of Civil Law where he serves as a professor and bar where she graduated Cum Laude.
reviewer in civil law. He also graduated Magna Cum Laude from
440 COMPENDIOUS BAR REVIEWER ABOUT.THE AUTHORS 441
ON LABOR LAW
Clarissa Joyce R. Gorreon Iyla Marie D. Ferrer

Atty. Gorreon is an Associate at 4 Atty. Ferrer is an Associate at
DivinaLaw and a member of the Firm's DivinaLaw and a member of the Firm's
litigation division. She obtained her Juris litigation division. She obtained her Juris
Doctor degree from the University of the Doctor degree from the University of the
Philippines. She received her Bachelor of Philippines. She graduated Cum Laude
Fine Arts Major in Information Design from the same university with a bachelor's
from the Ateneo de Manila University. degree in Business Economics.
Karen A. De Villa o0o

Atty. De Villa is an Associate at
DivinaLaw and a member of the Firm's
litigation division. She obtained her Juris
Doctor degree from the University of Santo
Tomas Faculty of Civil Law, where she
graduated Top 7 of her graduating class.
She received her bachelor's degree in Business Administration
Major in Business Economics from the same university, where
she graduated Cum Laude and Top 5 of her graduating class.
Maria Frances Faye R. Gutierrez

Atty. Gutierrez is an Associate at
DivinaLaw where she practices litigation,
labor, immigration and naturalization. She
graduated from the University of Santo
Tomas Faculty of Civil Law. Atty. Gutierrez
earned her bachelor's degree in Sociology
at the same university where she graduated Magna Cum Laude.

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COMPENDIOUS BAR

4. Holidays - Labor Code, Art. 94; Omnibus Rules

8. Labor Advisory No. 11-14 clarifies the principles on 5. Jurisprudence

8 Civil Code, Art. 8.

19 Archbuild Masters and Construction, Inc., et al. v. National Labor Relations

June 2015. July 2001.

35 .4tienza v. Saluta, G.R. No. 233413, 17 June 2019.

The quantum of proof required in illegal dismissal cases is

Q: What is recruitment and placement?

Q: On 12 December 2008, A signed a contract to be part of

44 Labor Code, Sec. 13(b).

43 Philippine Long Distance Telephone Company v. Domingo, G.R. No. 197402, 30

53Labor Code, Art. 13 (c).

Q: Who has the power to terminate, suspend, or impose a 2. International organizations;

Q: What is a name hire? Q: TRUE or FALSE: As a general rule, direct hiring of

1. Members of the diplomatic corps;

62 2016 Revised POEA Rules and Regulations, Sec. 124.

Q: How is illegal recruitment of local workers committed

91 G.R. No. 198795, 07 June 2017.

Q: What is the effect on the solidary liability of the original A:

Q: Who is a non-resident alien? Q: Who are exempted from securing an AEP?

"9 DOLE Order No. 186-17, Sec. 2.

A: The requisites for exclusion are:

126 Wahing, et al v. Spouses Daguio, G.R. No. 219755, 18 April 2022.

13° DOLE D.O. No. 147-15, Rule I-A, Sec.3.

133 BAR 2014.

142 BAR 2016.

150 Labor Code, Art. 295.

159 BAR 2016.

174 Labor Code, Art. 301. 17 DOLE D.O. No. 215-2020.

179 DOLE D.O. No. 215-2020.

182 E.O. No. 51, Series of 2018, Sec. 2.

8) Animation Services; Jobcrest and Sunpower entered into a Service Contract

As the TMRs wanted to continue working at Empire, they

When the TMRs' 5-month contracts with Wave were about

(1) The primary duty consists of the performance of

217 BAR 2017.

Q: TRUE or FALSE. A waiver of the right to claim overtime

241 BAR 1997.

243 Labor Code, Art. 87.

247 BAR 2010.

255 Labor Code, Art. 87.

Q: What is a telecommuting program? Q: May an employee propose a telecommuting program to

271 R.A. No. 11165, Sec. 4.

(c) Every week

31 1 R.A. No. 11058, Sec. 5.

B. Wages 4. It includes the fair and reasonable value, as determined

3. It is payable by an employer to an employee under a

Q: Distinguish "salary" from "wages." Are these subject to b. Facilities

320 Gaa v. Court of Appeals, G.R. No. L-44169, 03 December 1985.

c. Supplements of P426.00 plus P30.00 allowance, and thus required Gamma

d. Bonus However, a bonus is demandable and enforceable when it is stipulated

Q: Who are entitled to the 13th month pay?

DOLE Labor Advisory No. 23-2022. Labor Advisory No. 23-2022.

362 BAR 2012.

366 BAR 2014.

Labor Advisor), No. 11-2014, Sec. 3. Rule VIII, Sec. 12.

376 BAR 2010. 379 BAR 1987.

(a) Is the wage order subject to the approval of the National

401 Labor Code, Art. 121 (g).