This is but a glance at the most important and the latest labor law principles.

This
reviewer is a product of the great mind of Atty. Marlon Manuel and may act as your pre-week
reviewer..
LABOR LAW PRINCIPLES
GENERAL PRINCIPLES
What is/are the Constitutional basis/es for the protection of labor?
Article I, Sec. 18: The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.
Article XIII, Sec. 3: The State shall afford protection to Labor local and overseas
organi!ed and unorgani!ed and promote full employment and e"uality of employment
opportunities.
What shall the State guarantee to laborers under the Constitution?
Self-organization
Collective bargaining and negotiations
Peaceful concerted activities including te rigt to stri!e
Securit" of tenure
#u$ane Conditions of %or!
&iving 'age
Partici(ation in (olic" and decision-$a!ing (rocesses
What shall it promote?
Princi(le of sared res(onsibilit" bet%een %or!ers and e$(lo"ers
Preferential use of voluntar" $odes in settling dis(utes
)nforce $utual co$(liance
What shall it regulate?
*elations bet%een labor and ca(ital +recognizing te rigt of labor to its ,ust sare in te
fruits of (roduction and te rigt of enter(rises on reasonable returns-
What is the nature of labor relations?
.e" are not $erel" contractual. .e" are so i$(ressed %it (ublic interest tat te" $ust
"ield to te co$$on good. +Art. 1/00, Civil Code-
What is the basis for resolving doubts in favor of labor?
Art. 1/01 of te Civil Code and Art. 2 of te &abor Code. 3oreover, doubts arising fro$
conflicting evidence $ust be resolved in favor of labor +Prangan v. 4&*C, 185 S 161-
Management Prerogatives
A line $ust be dra%n bet%een (olicies %ic are (urel" business-oriented and (olicies
%ic affect %or!ers7 rigts. 'or!ers ave te rigt to (artici(ate in $atters affecting teir
rigts +Pil. Airlines v. 4&*C-.
PRE-EMPLOYMENT
Protection is not ,ust (ro$otion of full e$(lo"$ent. )$(lo"$ent $ust be decent, ,ust and
u$ane +PAS) v. 8rilon-.
3igrant 'or!er 9 a (erson %o is to be engaged, is engaged, or as been engaged in a
re$unerated activit" in a state of %ic e is not a legal resident
$a" onl" be de(lo"ed %ere te rigts of $igrant :ili(ino %or!ers are (rotected
*ecruit$ent
- is co$$itted b" doing any of te follo%ing acts: canvassing, enlisting, contracting,
trans(orting, utilizing, iring, (rocuring %or!ers, ; includes referrals, contract services,
(ro$ising or advertising for e$(lo"$ent, locall" or abroad, whether for profit or not.
<ffer or (ro$ise of e$(lo"$ent for a fee to 1 or $ore (ersons 9 dee$ed engaged in
recruit$ent. .is 1-(erson rule is not a re=uire$ent but a factor tat gives rise to a
(resu$(tion +Peo(le v. Panis-.
Procuring tic!ets, (ass(orts, visa for anoter, %itout $ore, is not recruit$ent +8arvin v.
CA-.
ILLEGAL RECRUITMENT
&A><* C<8) 3I?*A4. '<*@)*S AC. +*A 8061-
Person recruits %itout an" license or
autorit"
a. (erson recruits %itout license or
autorit" OR
b. (erson %o as license recruits
and co$$its an" of te (roibited
acts
A)4B): *...C. %ere offense co$$itted or %ere offended resides at te ti$e of
co$$ission
Mandator re!atriation 9 if actual age falls belo% $ini$u$ age
A (erson is guilt" of illegal recruit$ent onl" %en sCe gives te i$(ression tat sCe as te
(o%er to send %or!ers abroad +Peo(le v. 8iaz-.
*ecruiter7s liabilit" is not ter$inated b" te ter$ination of te agenc" agree$ent bet%een
te (rinci(al and te recruiter. <bligations of recruiter and (rinci(al are coter$inous %it
te e$(lo"$ent contract.
In fact, teir obligationCliabilit" do not end u(on te actual date of te contract7s eD(iration
but u(on te re(atriation of te %or!er. +Interorient vs. 4&*C, 121 S /E/-
*ecruiter and (rinci(al are solidaril" liable to te %or!er.
Alterations of contracts tat i$(rove te benefits are not (roibited.
Po%er to sus(end or cancel license is "on"#rrent$ vested %it P<)A and S<&) +.rans
Action <verseas Cor(. v. Sec. <f &abor-
*<&)S <: .#) :<&&<'I4? A?)4CI)S B48)* *A 8061:
%&'&A& %&O&L&E& P&O&E&A& O&W&W&A&
3a!es re(resentation
%it foreign autorit"
and eDtends
i$$ediate assistance
including re(atriation
Sees to it tat &abor
and Social 'elfare
la%s in te foreign
countries are fairl"
a((lied, grant legal
assistance and
referral to (ro(er
$edical centers
*egulates (rivate
sector (artici(ation in
recruit$ent and
i$(le$ents s"ste$
for (ro$oting or
$onitoring overseas
e$(lo"$ent
Provides te :ili(ino
$igrant %or!er and
is fa$il" all te
assistance te" $a"
need in enforcing
contractual
obligations
(#man Reso#r"es %eve$o!ment
4on-resident aliens cannot be e$(lo"ed in te Pili((ines %itout a (er$it fro$ te 8<&)
and %itout a deter$ination tat no (erson in te Pili((ines is co$(etent, able and %illing
to (erfor$ te services desired.
A((renticesi( %itout .)S8A a((roval is not valid.
#andica((ed %or!er is a (erson %ose earning capacity is i$(aired b" age, or ("sical or
$ental deficienc" or in,ur". .us, a (erson %o suffers fro$ a disabilit" is not necessaril" a
andica((ed %or!er, if is earning ca(acit" is not i$(aired. If a disabled (erson is =ualified
for te (osition as an able-bodied (erson, sCe is entitled to full co$(ensation +not to /EF-.
EMPLOYER-EMPLOYEE RELATIONS(IP
)-*o$d test+ hiring, wages, firing, control
Control test is te $ost i$(ortant. .is $eans control over te $anner of doing te %or!,
not ,ust over te end desired. Absence of control is indicative of inde(endent
contractorsi(. .e ele$ent of control is absent %ere a (erson %o %or!s for anoter
does so $ore or less at isCer o%n (leasure and is not sub,ect to definite ours or
conditions of %or! and in turn is co$(ensated according to te result of is efforts and not
te a$ount tereof. 4ote, o%ever, tat a (erson %it no definite ours of %or! or a (erson
%o is (aid on a (er result basis can still be an e$(lo"ee.
Pa"$ent of co$(ensation b" %a" of co$$ission does not $ilitate against te eDistence of
e$(lo"er-e$(lo"ee relationsi(. G'ageH can be on co$$ission basis.

3ere eDistence of te rigt to control is enough. It need not be actuall" eDercised.
.e fact tat te %or!ers %or! in te (re$ises of te co$(an" can be an indicator of te
eDistence of te rigt to control.
4ot all rules are e=uivalent to control %ic %ill give rise to an e$(lo"er-e$(lo"ee
relationsi(. *ules tat $erel" serve as guidelines to%ards te acieve$ent of te
$utuall" desired result %itout dictating te $eans or $etods to be e$(lo"ed in attaining it
do not a$ount to control. .e" ai$ onl" to (ro$ote te result and terefore do not create
an e$(lo"er-e$(lo"ee relationsi(.
)Disting econo$ic conditions test -- te inclusion of te %or!er in te (a"roll, (a"$ent of
SSS, can also be considered in deter$ining te eDistence of e$(lo"er-e$(lo"ee
relationsi(.
)$(lo"er-e$(lo"ee relationsi( is deter$ined b" la% and its eDistence cannot be negated
b" eD(ressl" re(udiating it in a contract.
,o--"ontra"ting
Contractor carries on an inde(endent business and underta!es contracted %or! on isCo%n
account, under is o%n res(onsibilit", according to o%n $anner and $etod of %or!, free
fro$ te control and direction of te (rinci(al.
Contractor $ust ave eiter substantial ca(ital <* invest$ent in te for$ of tools,
e=ui($ent, $acineries, %or! (re$ises. .ools and e=ui($ent $ust be directl" related to
te contracted ,ob.
GSubstantial ca(ital or invest$entH refers to te ade=uac" of resources actually and
directly used b" te contractor in te (erfor$ance or co$(letion of te ,ob, %or!, or service
contracted out. It eDcludes all ca(ital and invest$ent te contractor $a" ave %ic are
not actuall" and directl" used in te conduct of its business, or an" gratuitous assistance,
financial or oter%ise, it $a" ave received fro$ te (rinci(al.
It is not enoug to so% substantial ca(italization or invest$ent to be considered a
legiti$ate inde(endent contractor. Several oter factors sould be considered including but
not li$ited to %eter te contractor is carr"ing on an inde(endent businessI te nature and
eDtent of te %or!I te s!ill re=uiredI te ter$ and duration of te relationsi(I te rigt to
assign te (erfor$ance of s(ecified (ieces of %or!I te control and su(ervision of te
%or!ersI te (o%er of te e$(lo"er %it res(ect to iring, firing and (a"$ent of %or!ers of
te contractorI te control of te (re$isesI te dut" to su((l" (re$ises, tools, a((liances,
$aterials and laborI and te $ode, $anner and ter$s of (a"$ent.
&egiti$ate ,ob-contractor is te direct e$(lo"erI te (rinci(al is te indirect e$(lo"er.
In te event tat te contractor fails to (a" te %ages of te e$(lo"ees, te (rinci(al sall
be solidaril" liable %it te contractor to te eDtent of te %or! (erfor$ed under te contract.
.is liabilit" of te (rinci(al eDtends onl" to te (eriod during %ic te e$(lo"ees %ere
%or!ing for te (rinci(al.
)ven in te absence of an e$(lo"er-e$(lo"ee relationsi(, te la% itself establises one
bet%een te (rinci(al and te e$(lo"ees of te contractor for a li$ited (ur(ose i.e. in order
to ensure tat te e$(lo"ees are (aid te %ages due te$.
.e solidar" liabilit" of te (rinci(al does not eDtend to te liabilit" of te contractor for illegal
dis$issal +se(aration (a" and bac!%ages- if tere is no fault on te (art of te (rinci(al, i.e.,
if te (rinci(al did not cons(ire %it te contractor in te acts giving rise to te illegal
dis$issal. +*ose%ood v. 4&*C, 150 S 605, 1558-
Job-contractor $ust register %it te 8<&) and $ust sub$it contract %it (rinci(al to te
8<&). +8.<. 10-
'or!ers7 ter$ of e$(lo"$ent $ust be coter$inous %it te ter$ of contract bet%een te
(rinci(al and te contractor. .e contract $ust assure rigts of %or!ers. +8< 10-
La-or-on$ "ontra"ting
Contract is not legiti$ate contracting arrange$ent.
Contractor as no substantial ca(ital or invest$ent and te %or!ers (erfor$ activities tat
are directl" related to te business of te e$(lo"er.
Contractor is considered as agent of te (rinci(al. Princi(al is te direct e$(lo"er.
Mis"e$$aneo#s
.e relationsi( bet%een o%ners of ,ee(s and taDicabs, on one and, and teir drivers, on
te oter and, under a boundar" s"ste$, is an e$(lo"er-e$(lo"ee relationsi(.

Art. 180, %ic distinguises bet%een regular and casual e$(lo"ees, is not te "ardstic! for
deter$ining te eDistence of an e$(lo"$ent relationsi(. Art. 180 does not a((l" %ere
te eDistence of an e$(lo"$ent relationsi( is in dis(ute.
4o (articular for$ of (roof is re=uired to (rove te eDistence of an e$(lo"er-e$(lo"ee
relationsi(. An" co$(etent and relevant evidence $a" so% te relationsi(. If onl"
docu$entar" evidence %ould be re=uired to de$onstrate tat relationsi(, no sce$ing
e$(lo"er %ould ever be brougt before te bar of ,ustice.
An" %o$an (er$itted or suffered to %or!, %it or %itout co$(ensation, in an" nigt club,
bar or si$ilar establis$ent, under te effective control or su(ervision of te e$(lo"er for a
substantial (eriod of ti$e sall be dee$ed an e$(lo"ee of suc establis$ent for labor and
social legislation. +Art. 138-
A o$e%or!er7s e$(lo"er is dee$ed to be te (erson %o, for isCer o%n account or
benefit, or on bealf of anoter: +1- delivers or causes to be delivered, goods, articles or
$aterials to be (rocessed or fabricated in or about a o$e and tereafter to be returned or
dis(osed of or distributed in accordance %it isCer directionsI or +1- sells te good, articles
or $aterials to be (rocessed or fabricated in or about a o$e and ten rebu"s te$ after
suc (rocessing or fabrication, i$selfCerself or troug anoter (erson. +Art. 1EE-
)$(lo"ee includes one %ose %or! as ceased as a result of a current labor dis(ute or due
to B&P %o as not obtained an" oter substantiall" e=uivalent and regular e$(lo"$ent.
+Art. 111-f-
A student %o %or!s for a scool in eDcange for te (rivilege to stud" free is not an
e$(lo"ee (rovided sCe is given a real o((ortunit" to finis isCer cosen course.
CLASSES O' EMPLOYEES
)$(lo"$ent status is deter$ined b" la%, not b" contract.
Reg#$ar em!$oee
)$(lo"ee %o (erfor$s %or! tat is usuall" necessar" or desirable to te usual business of
te e$(lo"er. .ere is a reasonable connection bet%een te activit" (erfor$ed and te
business of te e$(lo"er.
3ode of co$(ensation of e$(lo"ee is not deter$inative of statusCclass. .us, (iece-rate
%or!ers can be regular e$(lo"ees. +&abor Congress v. 4&*C, 150 S E05, 1558-
Continuit" of e$(lo"$ent is not te deter$ining factor. .us, %aiting ti$e does not negate
regular e$(lo"$ent. +Caudanetaan v. &agues$a, 182 S 601, 1558-
Continuit" of e$(lo"$ent, o%ever, %ile not necessar" to regular status, is indicative of te
necessit", if not indis(ensabilit" of te (osition.
.e fact tat an e$(lo"ee is not re=uired to re(ort at a fiDed our or to !ee( fiDed ours of
%or! does not detract fro$ te e$(lo"ee7s regular status. 'eter one7s e$(lo"$ent is
regular is not deter$ined b" te nu$ber of ours one %or!s but b" te nature of te %or!
and b" te lengt of ti$e one as been in tat (articular ,ob. +International Par$aceuticals
v. 4&*C, 18/ S 113, 1558-
.e continuous reiring b" te e$(lo"er of (ro,ect or %or! (ool e$(lo"ees for te sa$e
tas!s or nature of tas!s tat are necessar" or desirable to te e$(lo"er7s usual business or
trade grants te e$(lo"ees regular status. .is a((lies even outside te construction
industr". +3araguinot v. 4&*C, 156 S E35, 1558-
A contractual e$(lo"ee %o is allo%ed to continue %or!ing even after te ter$ination of te
contract is a regular e$(lo"ee.
In case of doubt in an" contractual (rovision, te doubt $ust be resolved in favor of labor, in
favor of regular status. +PC:I v. 4&*C, 1558-
Probationar" e$(lo"$ent $ust not eDceed siD +2- $onts unless te ,ob is of suc nature
tat evaluation can onl" be done after a (eriod longer tan siD $onts. .e (eriod can also
be eDtended %en te e$(lo"er, out of liberalit", clearl" gave te e$(lo"ee anoter
o((ortunit" after aving failed te e$(lo"er7s standards.
A (robationar" e$(lo"ee %o is allo%ed to %or! be"ond te (robationar" (eriod beco$es a
regular e$(lo"ee.
If no standards %ere given te e$(lo"ee at te start of te (robationar" (eriod, te
e$(lo"ee is a regular e$(lo"ee.
8isabled e$(lo"ees %o are =ualified to (erfor$ te res(onsibilities of teir (osition are
entitled to regular e$(lo"$ent. .e 3agna Carta for 8isabled Persons $andates tat a
=ualified disabled e$(lo"ee sould be given te sa$e ter$s and conditions of e$(lo"$ent
as a =ualified able-bodied (erson. If te" (erfor$ %or! tat is usuall" necessar" or
desirable to te business of te e$(lo"er, te" are regular e$(lo"ees. .e fact tat te
e$(lo"er $erel" Gacco$$odatedH te e$(lo"ees is i$$aterial and does not cange te
nature of teir e$(lo"$ent. +>ernardo v. 4&*C, Jul" 11, 1555-
Pro.e"t em!$oee
A (ro,ect e$(lo"ee is one ired to carr" out a s(ecific (ro,ect or underta!ing, te co$(letion
of %ic is deter$ined and s(ecified at te ti$e of engage$ent.
.e (ro,ect $a" or $a" not be %itin te regular or usual business of te e$(lo"er. If it is
%itin te regular or usual business, it $ust be distinct and se(arate and identifiable as
suc.
If te e$(lo"ees7 services are eDtended be"ond te co$(letion of te (ro,ect, te
e$(lo"ees sall be considered regular e$(lo"ees.
&engt of service is not controlling in (ro,ect e$(lo"$ent. Pro,ect e$(lo"$ent tat
eDceeds one "ear is not converted to regular e$(lo"$ent.
If a %or!er is e$(lo"ed as a (ro,ect e$(lo"ee, te e$(lo"er $ust sub$it a re(ort of
ter$ination to te nearest (ublic e$(lo"$ent office ever" ti$e isCer e$(lo"$ent is
ter$inated due to te co$(letion of eac (ro,ect as re=uired b" Polic" Instruction 4o. 10,
a((licable for te construction industr".
)$(lo"ees %o are ired in relation to continuous s(ecial orders, %ic are not seasonal,
are to be considered as regular e$(lo"ees, not (ro,ect e$(lo"ees.
Cas#a$ em!$oee
)$(lo"ee ired for %or! tat is not usuall" necessar" or desirable to te business of te
e$(lo"er, %or! tat does not constitute a (ro,ect, or a seasonal %or!.
Casual e$(lo"ee %o as %or!ed for an e$(lo"er for at least one "ear, continuous or
bro!en, sall be considered a regular e$(lo"ee but onl" %it res(ect to te activit" in %ic
te e$(lo"ee is e$(lo"ed and %ile suc activit" eDists.
Term em!$oee
:iDed ter$ e$(lo"ee is engaged to %or! for a definite (eriod.
.is is allo%ed (rovided: +1- te (eriod is agreed u(on !no%ingl" and voluntaril" b" te
(arties %itout force or duress or i$(ro(er (ressure eDerted on te e$(lo"eeI +1- it
satisfactoril" a((ears tat te e$(lo"er and te e$(lo"ee dealt %it eac oter on $ore or
less e=ual ter$s %it no $oral do$inance eDercised b" te e$(lo"er on te latterI and +3-
te ter$ e$(lo"$ent is not resorted to to defeat te rigts of te %or!er.
RIG(T TO SEL'-ORGANI/ATION
Manageria$ and s#!ervisor em!$oees
3anagerial e$(lo"ees cannot ,oin, for$ or assist in te for$ation of, a labor union.
Su(ervisor" e$(lo"ees cannot ,oin te union of te ran! and file e$(lo"ees but $a" ,oin,
assist or for$ teir o%n union.
.e test of su(ervisor" or $anagerial status de(ends on %eter a (erson (ossesses
autorit" to act in te interest of te e$(lo"er and %eter suc autorit" is not $erel"
routinar" or clerical in nature but it re=uires te use of inde(endent ,udg$ent.
An e$(lo"ee $ust ave te autorit" to effectivel" reco$$end $anage$ent (olicies to be
a su(ervisor" e$(lo"ee. .us, %ere suc reco$$endator" (o%ers ate sub,ect to
evaluation, revie% and final action b" te de(art$ent eads and oter iger eDecutives of
te co$(an", te sa$e, altoug (resent, are not effective and not an eDercise of
inde(endent ,udg$ent.
.e ter$ G$anage$ent (oliciesH and G(olic" deter$iningH refers to (olicies about $atters
tat can be te sub,ect of collective bargaining i.e., ter$s and conditions of e$(lo"$ent.
.us, e$(lo"ees %o ave (olic"-deter$ining (o%ers but %ose (o%ers include onl"
(olicies not relating to te relationsi( bet%een te e$(lo"er and te e$(lo"ees can be a
ran! and file e$(lo"ee.
.e (roibition against su(ervisor" e$(lo"ees ,oining te ran! and file union eDtends to a
su(ervisors7 local union ,oining a federation te $e$bers of %ic include local unions of
ran! and file e$(lo"ees. .is (roibition a((lies onl" %en te ran! and file e$(lo"ees are
directl" under te su(ervision of te su(ervisors and te national federation activel"
re(resents te ran! and file union.
A labor organization co$(osed of bot ran! and file e$(lo"ees and su(ervisor" e$(lo"ees
is not a legiti$ate labor organization and does not ave te legal (ersonalit" to (etition for a
certification election.
Con*identia$ em!$oees
.e ineligibilit" of $anagerial e$(lo"ees to ,oin, for$ or assist an" labor organization
eDtends to confidential e$(lo"ees or tose %o b" reason of teir (ositions or nature of
%or!
are re=uired to assist or act in a fiduciar" $anner to $anagerial e$(lo"ees and ence, are
li!e%ise (riv" to sensitive and igl" confidential records.
Confidential e$(lo"ees are tose %o +a- assist or act in a confidential ca(acit", +1- to
(ersons %o for$ulate, deter$ine, and effectuate $anage$ent (olicies in te field of labor
relations. .e t%o criteria are cu$ulative. >ot $ust be $et if an e$(lo"ee is to be
considered a confidential e$(lo"ee 9 i.e., te confidential relationsi( $ust eDist bet%een
te e$(lo"ee and is su(ervisor, and te su(ervisor $ust andle te (rescribed
res(onsibilities relating to labor relations. An e$(lo"ee $a" not be eDcluded fro$
a((ro(riate bargaining unit $erel" because sCe as access to confidential infor$ation
concerning te e$(lo"er7s internal business o(erations and %ic is not related to te field
of labor relations +Sugbuanon v. &agues$a, :ebruar" 1, 1000-.
A co$(uter o(erator, %en is service record reveals tat is duties are basicall" clerical
and non-confidential in nature, is not necessaril" a confidential e$(lo"ee. And as to
disci(line officers, te" are not confidential e$(lo"ees and sould terefore be included in
te bargaining unit of ran!-and-file e$(lo"ees +8.&.S.B. v. 8.&.S.B.).A., A(ril 11, 1000-.
S!e"ia$ gro#!s o* em!$oees 0g#ards1 "oo! mem-ers1 INC mem-ers2
.e rigt of $e$bers of Iglesia ni @risto not to ,oin a labor union for being contrar" to teir
religious beliefs does not bar te $e$bers of tat sect fro$ for$ing teir o%n union.
Securit" guards $a" ,oin a labor organization of te ran! and file e$(lo"ees, or tat of te
su(ervisor" e$(lo"ees, de(ending on teir ran!. .is is based on te (resu$(tion tat te
guards are e$(lo"ees of te establis$ent tat te" are guarding and are not under a
contracting arrange$ent.
)$(lo"ees of coo(eratives %o are $e$ber-o%ners are not eligible to for$ or ,oin a labor
union.
La-or organi3ations
>oo!s of account, consisting of ledgers, ,ournals and oter accounting boo!s, are no longer
re=uired for registration of a ne%l" organized union.
Absent co$(liance %it te $andator" re=uire$ents for sub$ission of docu$ents, a union
does not beco$e a legiti$ate labor organization.
An inde(endentl" registered union $aintains its se(arate (ersonalit" des(ite affiliation %it a
federation. .e federation, acting for and in bealf of its affiliates, as te status of an
agent %ile te local union re$ains te basic unit of te association.
A disaffiliation does not disturb te enforceabilit" and ad$inistration of a collective
bargaining agree$entI it does not occasion a cange of ad$inistrator of te contract nor
even an a$end$ent of te (rovisions tereof.
)ven before te onset of te freedo$ (eriod, disaffiliation $a" be carried out %en tere is
a sift of allegiance on te (art of te $a,orit" of te $e$bers of te union.
Rig4ts o* #nion mem-ers
.o be valid, a s(ecial assess$ent $ust co$(l" %it t%o basic re=uire$ents. :irst, te lev"
of te s(ecial assess$ent $ust be autorized b" a %ritten resolution of a $a,orit" of all te
$e$bers at a general $e$bersi( $eeting dul" called for te (ur(ose. Second, in order
tat
.e assess$ent $a" be validl" cec!ed-off, te union $e$bers $ust give teir individual
%ritten autorizations.
COLLECTI5E BARGAINING
,#risdi"tiona$ re6#irements
Collective bargaining is set in $otion b" te follo%ing: +1- (ossession of te status of
$a,orit" re(resentation of te e$(lo"ees7 re(resentative in accordance %it an" of te
$eans of selectionI +1- (roof of $a,orit" re(resentationI and +3- de$and to bargain.
.e e$(lo"er7s refusal to $a!e counter(ro(osal to te union7s (ro(osed collective
bargaining agree$ent is an indication of its bad fait.
Bargaining #nit
.e basic test of an asserted bargaining unit7s acce(tabilit" is %eter or not it is
funda$entall" te co$bination %ic %ill best assure to all e$(lo"ees te eDercise of teir
collective bargaining rigts. .e test of te grou(ing is co$$unit" or $utualit" of interest.
.e funda$ental factors in deter$ining te a((ro(riate collective bargaining unit are te
follo%ing: +1- te %ill of te e$(lo"ees +?lobe doctrine-I +1- affinit" or unit" of te
e$(lo"ees7 interest, suc as substantial si$ilarit" of %or! and duties, or si$ilarit" of
co$(ensation and %or!ing conditions +Substantial 3utual Interest *ule-I +3- (rior bargaining
istor"I and +6- si$ilarit" of e$(lo"$ent status.
Collective bargaining istor" is not decisive of %at sould co$(rise te bargaining unit.
.e convenience of te e$(lo"er is not te deter$inative factor in for$ing an a((ro(riate
bargaining unit.
Re!resentation Iss#e
8irect certification is not allo%ed. Certification election is te $ost effective and te $ost
de$ocratic %a" of deter$ining %ic labor organization can trul" re(resent te %or!ing
force for collective bargaining. .e rules, as a$ended b" 8.<. 5, no% allo% te e$(lo"er7s
voluntar" recognition of a union as te bargaining agent of its e$(lo"ees.
Certification elections are eDclusivel" te concern of e$(lo"ees. .e e$(lo"er is a $ere
b"-stander and, as a general rule, does not ave te legal (ersonalit" to callenge te
sa$e.
A C>A (re$aturel" signed b" te incu$bent union and te e$(lo"er during te freedo$
(eriod does not affect te (etition for certification election filed b" anoter union.
<nce te re=uired (ercentage re=uire$ent as been reaced, te e$(lo"ees7 %itdra%al
fro$ union $e$bersi( ta!ing (lace after te filing of te (etition for certification election %ill
not affect te (etition.
.e failure of an inde(endentl" registered labor union to (rove its affiliation %it a labor
federation cannot affect its rigt to file a (etition for certification election as an inde(endent
union.
.e ter$ GClose of certification (roceedingsH refers to te (eriod fro$ te closing of te (olls
to te counting and tabulation of te votes. It does not include te (eriod for te
deter$ination of te callenged votes and te canvass of said votes.
Bars to Certi*i"ation E$e"tion
Since te la% (roibits te conduct of a C) %en tere is a bargaining deadloc! sub$itted
to conciliation or arbitration, %it $ore reason sould it not be conducted if, des(ite atte$(ts
b" te certified union to bring te e$(lo"er to te bargaining table, te e$(lo"er un,ustl"
refused to bargain. If te certified union ta!es an action against te e$(lo"er7s refusal to
bargain, te situation sall be treated as si$ilar in nature to a Gbargaining deadloc!H %en
no C) could be eld.
An unregistered C>A %ill not bar a C).
A defective C>A +eDa$(le, it %as not (osted (rior to ratification and so$e %or!ers
re(udiated te ratification- %ill not bar a C). )Dce(ted fro$ te contract bar rule are certain
contracts %ic do not foster industrial stabilit".
.e (endenc" of a for$al carge of co$(an" do$ination is a (re,udicial =uestion tat, until
decided, bars (roceedings for a certification election. .e votes of te $e$bers of te
do$inated union %ill not be free.
'ere te legal (ersonalit" of a union is seriousl" callenged in a (etition for cancellation of
union registration, it %ould be $ore (rudent for te 3ed-Arbiter to grant te re=uest for
sus(ension of (roceedings in te certification election case until te issue of te union7s
registration sall ave been resolved. +Progressive v. &agues$a, 1/1 S E53, 155/- #ote
however that this principle is contrary to the principle enunciated in many cases that until
the union$s registration is cancelled with finality the pendency of a petition for cancellation of
union registration shall not affect the %& proceedings.
CBA
.e certification of a C>A b" te 8<&) is not re=uired for its validit". <nce a C>A is dul"
entered and signed b" te (arties, it beco$es effective as bet%een te (arties %eter or
not te sa$e as been certified b" te 8<&).
.e ter$ of a C>A sall be five +E- "ears insofar as te re(resentation as(ect is concerned.
All oter (rovisions $ust be renegotiated not later tan tree +3- "ears after its eDecution.
Since tere is no fiDed ter$ for C>A (rovisions, oter tan te re(resentation as(ect, te
renegotiated ter$s $a" validl" be for a (eriod of tree +3- "ears.
If an" agree$ent on suc oter (rovisions of te C>A is entered into %itin siD +2- $onts
fro$ te date of eD(ir" of te ter$ of suc oter (rovisions as fiDed in te C>A, suc
agree$ent sall retroact to te da" i$$ediatel" follo%ing suc date. If suc agree$ent is
entered into be"ond siD +2- $onts, te (arties sall agree on te duration of te effectivit"
tereof. If te (arties cannot agree on its effectivit", te (rinci(le of old over sall a((l".
.e (arties $ust $aintain te status =uo and $ust continue in full force and effect te ter$s
and conditions of te eDisting agree$ent until a ne% agree$ent is reaced. In sort, te
ne% agree$ent sall be a((lied (ros(ectivel", fro$ te date of te eDecution of suc
agree$ent.
In case no ne% agree$ent is entered into b" and bet%een te Co$(an" and te union
(ending a((eal of te decision of te 4&*CI nor %ere an" of te econo$ic (rovisions
andCor ter$s and conditions (ertaining to $onetar" benefits in te eDisting agree$ent
$odified or altered, te eDisting C>A in its entiret", continues to ave legal effect. +4e%
Pacific .i$ber v. 4&*C, 3arc 1/, 1000-
.e actual signing of te C>A is not deter$inative of te =uestion %eter te Gagree$ent
%as entered into %itin siD +2- $onts fro$ te date of eD(ir" of te ter$ of suc oter
(rovisions as fiDed in suc collective bargaining agree$ent.H If te (arties alread" ad a
$eeting of te $inds before te end of te siD-$ont (eriod, ten te ne% (rovisions sall
be a((lied retroactivel". .e fact tat no agree$ent %as ten signed is of no $o$ent.
<nl" (rovisions e$bodied in te C>A sould be so inter(reted and co$(lied %it. 'ere a
(ro(osal raised b" a contracting (art" does not find (rint in te C>A, it is not a (art of te
said C>A and te (ro(onent as no clai$ %atsoever to its i$(le$entation.
A C>A negotiated and signed during te (endenc" of certification election (roceedings is
valid but cannot be dee$ed (er$anent (recluding co$$ence$ent of negotiations b"
anoter union.
.e rule is tat unless eD(ressl" assu$ed, labor contracts suc as e$(lo"$ent contracts
and collective bargaining agree$ents are not enforceable against a transferee of an
enter(rise, labor contracts being in personam.
.e Gsubstitutionar" doctrineH (rovides tat te e$(lo"ees cannot revo!e te validl"
eDecuted C>A %it teir e$(lo"er b" te si$(le eD(edient of canging teir bargaining
agent. .e ne% agent $ust res(ect te contract. .is doctrine is not a((licable, o%ever,
to (ersonal underta!ings of te de(osed union.
A dis$issal of an e$(lo"ee is a ter$ination dis(ute tat falls %itin te &abor Arbiter7s
,urisdiction, %eter suc ter$ination arose fro$ te inter(retation or enforce$ent of te
C>A or te co$(an" (ersonnel (olicies or oter%ise.
UN'AIR LABOR PRACTICES
.e test of %eter an e$(lo"er as interfered %it and coerced e$(lo"ees in te eDercise
of teir rigt to self-organization is %eter te e$(lo"er as engaged in conduct %ic it
$a" reasonabl" be said tends to interfere %it te free eDercise of te e$(lo"ee7s rigts.
It is nor necessar" tat tere be direct evidence so%ing tat an" e$(lo"ee %as in fact
inti$idated or coerced.
.otalit" of conduct doctrine. .e e$(lo"er7s actions sould be evaluated not onl" on te
basis of teir i$(licit i$(lications, but sould be a((raised against te bac!ground of and in
con,unction %it collateral circu$stances. Bnder tis doctrine, eD(ressions of o(inion b" an
e$(lo"er %ic, toug innocent in te$selves, fre=uentl" %ere eld to be cul(able
because of te circu$stances under %ic te" %ere uttered or because of teir connection
%it an establised collateral (lan of coercion or interference.
.e act of co$(elling e$(lo"ees to sign a docu$ent indicating tat te e$(lo"er observed
labor standards (rovisions of la% %en te e$(lo"er did not, togeter %it te act of
ter$inating or coercing tose %o refuse to coo(erate %it te e$(lo"er7s sce$e is an
unfair labor (ractice even if its is not connected to union activities. It (ree$(ts te rigt of
te %or!ers to see! better ter$s and conditions of e$(lo"$ent troug concerted action. It
is analogous to te situation in Art. 186 %ic $a!es its an unfair labor (ractice to dis$iss,
discarge or oter%ise (re,udice or discri$inate against an e$(lo"ee for aving given or
being about to give testi$on" under te &abor Code.
.e Court as eld tat an e$(lo"er acts %ell %itin its rigts in transferring an e$(lo"ee
as it sees fit (rovided tat tere is no de$otion in ran! or di$inution in (a". +Asis v. 4ational
&abor *elations Co$$ission, 1E1 SC*A 3/5, 386-.
'ere tere eDists a legiti$ate issue as to %ic of several unions is te legiti$ate
re(resentative of e$(lo"ees, it is B&P for one of te unions to stage a stri!e and de$and
tat te e$(lo"er sit do%n %it it for collective bargaining.
STRI7ES AN% OT(ER CONCERTE% ACTI5ITIES
Con"e!t
Concerted activit" for $utual aid and (rotection is (rotected b" te Constitution and te
&abor Code. It is not necessar" tat union activit" be involved or tat collective bargaining
be conte$(lated. .us, te ,oining in (rotests or de$ands b" even a s$all grou( of
e$(lo"ees, if in furterance of teir interests as suc, is a (rotected concerted activit" and
an" interference %it suc concerted activit" is B&P.
A stri!e is an" te$(orar" sto((age of %or! b" te concerted action of e$(lo"ees as a result
of an industrial or labor dis(ute. A labor dis(ute includes an" controvers" or $atter
concerning ter$s or conditions of e$(lo"$ent or te association or re(resentation of
(ersons in negotiating, fiDing, $aintaining, canging or arranging te ter$s and conditions
of e$(lo"$ent, regardless of %eter or not te dis(utants stand in te (roDi$ate relation
of e$(lo"ers and e$(lo"ees.
3ass resignation or retire$ent is not a stri!e. Stri!ers do not =uit teir e$(lo"$ent.
Re6#isites
.e (rescribed cooling-off (eriod and te /-da" stri!e ban after te sub$ission of te re(ort
of stri!e vote are $andator". >ot $ust be co$(lied %it, altoug a union $a" ta!e a
stri!e vote and re(ort te sa$e %itin te statutor" cooling-off (eriod.
A stri!e is valid if te stri!ers onestl" believed tat te e$(lo"er co$$itted B&P, even if te
allegations of B&P are subse=uentl" found out to be true. +?ood :ait Stri!e rule.- It is not
enoug, o%ever, tat te union believes tat te e$(lo"er co$$itted B&P %en te
circu$stances clearl" negate even a (ri$a facie so%ing to %arrant suc a belief. A $ere
clai$ of good fait %ould not ,ustif" te olding of a stri!eI te circu$stances $ust ave
%arranted suc belief.
.e ?ood :ait Stri!e rule does not a((l" to a stri!e tat does not co$(l" %it te
$andator" (rocedural re=uire$ents +notice, cooling-off (eriod, stri!e vote, /-da" ban-.
An econo$ic stri!e canges in caracter to one for B&P fro$ te ti$e te e$(lo"er refuses
to reinstate so$e of its stri!ing e$(lo"ees because of teir union activities after it ad
offered to read$it all te stri!ers and in fact did read$it te oters.
In.#n"tion
An Ginnocent b"stander,H %o see!s to en,oin a labor stri!e, $ust satisf" te court tat it is
entirel" different fro$, and %itout an" connection %atsoever to, eiter (art" to te dis(ute
and, terefore, its interests are totall" foreign to te conteDt tereof.
Ass#m!tion o* ,#risdi"tion
.e Secretar" of &abor as te discretion to deter$ine %at industries are indis(ensable to
te national interest. .e assu$(tion of ,urisdiction is in te nature of a (olice (o%er
$easure. It is not intended to i$(ede te %or!ers7 rigt to stri!e but to obtain s(eed"
settle$ent of te dis(ute.
>efore te Secretar" of &abor $a" ta!e cognizance of an issue %ic is $erel" incidental to
te labor dis(ute, te sa$e $ust be involved in te labor dis(ute itself or oter%ise
sub$itted to i$Cer for resolution.
A return-to-%or! order, %ic is auto$aticall" included in an assu$(tion or certification
order, is i$$ediatel" effective and eDecutor" des(ite te filing of a $otion for
reconsideration.
A stri!e underta!en des(ite te issuance of an assu$(tion or certification order beco$es a
(roibited activit", and tus, illegal. An" union officer or $e$ber %o !no%ingl"
(artici(ates in a stri!e def"ing a return-to-%or! order $a" conse=uentl" be declared to ave
lost isCer e$(lo"$ent status.
'en an e$(lo"er accedes to te (eaceful settle$ent bro!ered b" te 8<&), agreeing to
acce(t all e$(lo"ees %o ad not "et returned to %or!, it %aives te issue of te illegalit" of
te stri!e.
Conse6#en"es o* stri8e
3ere finding of illegalit" of stri!e sould not be follo%ed b" %olesale dis$issal of stri!ers
fro$ e$(lo"$ent.
A union office %o !no%ingl" (artici(ates in an illegal stri!e and an" %or!er or union officer
%o !no%ingl" (artici(ates in te co$$ission of illegal acts during a stri!e $a" be declared
to ave lost teir e$(lo"$ent status. An ordinar" stri!ing %or!er cannot be ter$inated for
$ere (artici(ation in an illegal stri!e.
.e la% grants te e$(lo"er te o(tion of declaring a union officer %o (artici(ated in an
illegal stri!e as aving lost isCer e$(lo"$ent.
4ot ever" for$ of violence suffices to affiD te seal of illegalit" on a stri!e or to cause te
loss of e$(lo"$ent b" te guilt" (art". Acts of violence $ust be (ervasive and %ides(read,
and consistentl" and deliberatel" resorted to as a $atter of (olic", before te" can be
sufficient for a declaration of illegalit" of an oter%ise legal stri!e.
>" filing a for$al co$(laint for illegal stri!e, te e$(lo"er sould desist fro$ underta!ing its
o%n investigation on te sa$e $atter, concluding u(on te illegalit" of te union activit" and
dis$issing outrigt te union officers involved.
POST-EMPLOYMENT
,#st Ca#ses
3isconduct is i$(ro(er or %rong conduct. It is te transgression of so$e establised and
definite rule of action, a forbidden act, a dereliction of dut", %illful in caracter, and i$(lies
%rongful intent and not $ere error in ,udg$ent. .e $isconduct $ust be of suc grave and
aggravated caracter and not $erel" trivial or uni$(ortant. Suc $isconduct $ust also be
in connection %it te e$(lo"ee7s %or!.
In order tat %illful disobedience b" te e$(lo"ee $a" constitute a ,ust cause for
ter$ination, te orders, regulations, or instructions of te e$(lo"er $ust be: +1- reasonable
and la%fulI +1- sufficientl" !no%n to te e$(lo"eeI and +3- in connection %it te duties
%ic te e$(lo"ee as been engaged to discarge. 4ote tat te e$(lo"ee7s assailed
conduct $ust ave been %illful or intentional, te %illfulness being caracterized b" a
%rongful and (erverse attitude.
Co$(an" (olicies and regulations are, unless so%n to be grossl" o((ressive or contrar" to
la%, generall" valid and binding on te (arties and $ust be co$(lied %it until finall" revised
or a$ended.
.e reasonableness and la%fulness of a rule, order or instruction de(end on te
circu$stances availing in eac case 9 reasonableness (ertains to te !ind or caracter of
directives and co$$and and to te $anner in %ic te" are $ade.
?ross negligence i$(lies a %ant or absence of or failure to eDercise sligt care or diligence,
or te entire absence of care 9 it evinces tougtless disregard of conse=uences %itout
eDerting an" effort to avoid te$.
.o be a ,ust cause for dis$issal, te negligence $ust not onl" be gross, it should also be
habitual.
Abandon$ent, as a ,ust and valid ground for ter$ination, $eans te deliberate, un,ustified
refusal of an e$(lo"ee to resu$e isCer e$(lo"$ent. .%o ele$ents $ust be (rovedI +1-
te intention to abandonI and +1- an overt act fro$ %ic it $a" be inferred tat te
e$(lo"ee as no $ore intent to resu$e isCer %or!.
Pro$(t filing of an illegal dis$issal case contradicts te allegation of abandon$ent.
.e basic (re$ise for dis$issal on te ground of loss of confidence is tat te e$(lo"ee
concerned olds a (osition of trust and confidence.
'it res(ect to ran! and file e$(lo"ees, loss of trust and confidence as a ground for
ter$ination re=uires (roof of involve$ent in te alleged events in =uestion, and tat $ere
uncorroborated assertions and accusations b" te e$(lo"er %ill not be sufficient. As
regards a $anagerial e$(lo"ee, o%ever, $ere eDistence of a basis for believing tat suc
e$(lo"ee as breaced te trust of isCer e$(lo"er %ould suffice.
.o constitute i$$oralit", te circu$stances of eac (articular case $ust be olisticall"
considered and evaluated in ligt of te (revailing nor$s of conduct and a((licable la%s.
.e conviction of an e$(lo"ee in a cri$inal case is not indis(ensable to %arrant isCer
dis$issal. .e fact tat a cri$inal co$(laint against te e$(lo"ee as been dro((ed b"
te cit" fiscal is not binding and conclusive u(on a labor tribunal.
.e re=uire$ents for te la%ful dis$issal of an e$(lo"ee b" te e$(lo"er are t%o-fold: te
substantive and te (rocedural. .%in re=uire$ents of notice and earing constitute
essential ele$ents of due (rocess in cases of e$(lo"ee dis$issal.
8is$issal of an e$(lo"ee $ust be for a ,ust and autorized cause and after due (rocess.
Aiolation of te rigt to an investigation, o%ever, %ill not necessaril" entitle te e$(lo"ee to
reinstate$ent and bac!%ages %en suc e$(lo"ee %as accorded due (rocess during te
(roceedings before te &abor Arbiter and te e$(lo"ee7s co$$ission of an act constituting
a ,ust cause for ter$ination %as establised. In suc case, te dis$issal sould be
$aintained but te e$(lo"er $ust inde$nif" te e$(lo"ee in te for$ of da$ages, as
sanction for its failure to res(ect te (rocedural re=uire$ents of due (rocess. Note that
this Wenphil doctrine was abandoned in the Serrano case, decided last year.
.e (enalt" i$(osed on te erring e$(lo"ee $ust be (ro(ortionate to te offense
co$$itted. #ence, if dis$issal is grossl" dis(ro(ortionate to te offense, a less severe
(enalt" $ust suffice. .e dis$issal in suc case sould be considered illegal. In $an"
cases, te value of te article involved in te offense and te (revious record of te
e$(lo"ee %ere considered to deter$ine %eter dis$issal %as te a((ro(riate (enalt".
Constr#"tive dismissa$9 Preventive s#s!ension
Constructive dis$issal is an involuntar" resignation resorted to %en continued e$(lo"$ent
is rendered i$(ossible, unreasonable or unli!el"I %en tere is a de$otion in ran! andCor
di$inution in (a"I or %en a clear discri$ination, insensibilit" or disdain b" an e$(lo"er
beco$es unbearable to te e$(lo"ee. +&eonardo v. 4&*C, June 12, 1000-
Preventive sus(ension is (ro(er %en te continued e$(lo"$ent of an e$(lo"ee (oses a
serious and i$$inent treat to te life and (ro(ert" of te e$(lo"er or of isCer co-
e$(lo"ees. Preventive sus(ension is not a (enalt" in itself.
)$(lo"ees %o re$ain %itout %or! or assign$ent for a (eriod eDceeding siD +2- $onts
are in effect constructivel" dis$issed.
A#t4ori3ed Ca#ses
*edundanc" eDists %ere te services of an e$(lo"ee are in eDcess of %at is reasonabl"
de$anded b" te actual re=uire$ents of te enter(rise. It does not necessaril" refer to
du(lication of %or!. .e fact tat no oter (erson %as olding te sa$e (osition as tat
declared to be redundant does not negate redundanc".
?eneral standards for valid retrenc$ent: +1- losses eD(ected sould be substantial and
not $erel" de minimisI +1- te substantial losses $ust be reasonabl" i$$inent, and suc
i$$inence can be (erceived ob,ectivel"I +3- retrenc$ent $ust be reasonabl" necessar"
and li!el" to effectivel" (revent te eD(ected lossesI and +6- alleged losses if alread"
realized and eD(ected i$$inent losses $ust be (roved b" sufficient and convincing
evidence.
:or retrenc$ent to be valid, it is not necessar" tat losses be actuall" sustained. .e
eDistence of valid grounds to antici(ate or eD(ect losses %ould be sufficient ,ustification for
retrenc$ent.
*etrenc$ent is onl" a $easure of last resort %en oter less drastic $eans ave been
tried and found to be inade=uate.
.e failure of te e$(lo"er to so% its inco$e or loss for te i$$ediatel" (receding "ears
or to (rove tat it eD(ected no abate$ent of suc losses in te co$ing "ears is fatal to te
e$(lo"er7s cause in (roving te validit" of a retrenc$ent.
*etrenc$ent is available to a non-stoc!, non-(rofit organization as a $easure ado(ted to
stave off treats to its eDistence.
.e deter$ination to cease o(erations +closure- is a (rerogative of $anage$ent tat is
usuall" not interfered %it b" te State as no business can be re=uired to continue o(erating
at a loss si$(l" to $aintain %or!ers in e$(lo"$ent. >ut %ere it is $anifest tat te
closure is $otivated not b" a desire to avoid furter losses but to discourage te %or!ers
fro$ organizing te$selves into a union, te State $ust intervene.
4o la% re=uires tat (urcaser of a co$(an"7s assets sould absorb its e$(lo"ees.
.e (rase Gclosure or cessation of o(erationH a((lies in cases of bot co$(lete and (artial
cessation of te business o(eration.
An audited financial state$ent is indeed te nor$al $etod of (roof of (rofit and loss but
suc nor$ does not co$(el te Su(re$e Court to acce(t te contents of said docu$ents
blindl" and %itout tin!ing.
Conse6#en"es o* %ismissa$
An e$(lo"ee %o is un,ustl" dis$issed fro$ %or! sall be entitled to reinstate$ent %itout
loss of seniorit" rigts and oter (rivileges and to full bac!%ages, inclusive of allo%ances,
and to oter benefits or teir $onetar" e=uivalent co$(uted fro$ te ti$e co$(ensation
%as %iteld u( to te ti$e of actual reinstate$ent.
Se(aration (a" sall be allo%ed as a $easure of social ,ustice onl" in tose instances
%ere te e$(lo"ee is validl" dis$issed for causes oter tan serious $isconduct or tose
reflecting on is $oral caracter.
*einstate$ent (resu((oses tat te (revious (osition fro$ %ic te e$(lo"ee ad been
re$oved still eDists, or tere is an unfilled (osition of a si$ilar nature, $ore or less, as te
one (reviousl" occu(ied b" te e$(lo"ee, but if no suc (osition is available, reinstate$ent
beco$es a legal i$(ossibilit" 9 te la% cannot eDact co$(liance %it %at is i$(ossible.
.e doctrine of strained relations cannot be a((lied indiscri$inatel" since ever" labor
dis(ute al$ost invariabl" results in strained relations.
.e Gstrained relationsH rule $a" be invo!e onl" against e$(lo"ees %ose (ositions
de$and trust and confidence, or %ose differences %it teir e$(lo"er are of suc nature or
degree as to (reclude reinstate$ent.
A%ard of se(aration (a" +in lieu of reinstate$ent- is to be co$(uted fro$ te start of
e$(lo"$ent u( to te ti$e of ter$ination tereof, including the period of imputed service
for which the employee is entitled to backwages.
An e$(lo"er found guilt" of illegal dis$issal $a" not be ordered to (a" bac!%ages be"ond
te date of closure of business %ere suc closure %as due to legiti$ate business reasons
and not $erel" an atte$(t to defeat te order of reinstate$ent.
>ac!%ages to be a%arded to an illegall" dis$issed e$(lo"ee sould not be di$inised or
reduced b" te earnings derived b" te e$(lo"ee else%ere during te (eriod of te illegal
dis$issal. If reinstate$ent is no longer feasible, bac!%ages sall be co$(uted fro$ te
ti$e of te illegal dis$issal u( to te ti$e of te finalit" of te decision.
:ailure to clai$ bac!%ages in a co$(laint is a $ere (rocedural la(se %ic cannot defeat a
rigt granted under a substantive la%.
8isease
Absence of a $edical certificate fro$ a co$(etent (ublic ealt autorit" indicates tat te
e$(lo"ee7s disease is not of suc a nature tat it %ill not be cured %itin a (eriod of 2
$onts even %it (ro(er $edical treat$ent, and tus isCer dis$issal %as a severe and
unla%ful sanction.
S&''A#( )(%T'I#&* .er$ination due to autorized cause %itout giving te notice
re=uired under te &abor Code is not a violation of due (rocess. It is va$id a$t4o#g4
de"$ared irreg#$ar:ine**e"t#a$& +?.*. 11/060, Januar" 1/,1000- #e sall o%ever be
entitled to se(aration (a" and bac!%ages sub,ect to te follo%ing rules:
o 'en te dis$issal is for a cause, te e$(lo"ee, %eter dis$issed for ,ust
cause or autorized cause -#t ;it4o#t !rior noti"e, is entitled to full
bac!%ages fro$ te ti$e e %as ter$inated until te decision finding cause
beco$es final.
o 'en te dis$issal is %itout ,ust or autorized cause, bac!%ages sall be
co$(uted fro$ te ti$e of is dis$issal until is actual reinstate$ent.
Serrano v. 4&*C reversed 'en(il +1/0 SC*A 25- %ere te Su(re$e Court eld tat
failure of te e$(lo"er to give te notice re=uired is a violation of due (rocess. If te ,ust
cause %as not (roved to ave eDisted, te e$(lo"ee is entitled to bac!%ages and
reinstate$ent. If te ,ust cause %as (roved, ten no reinstaste$ent is (ossible.
ecent enlightening principles on the causes of termination!
Closure, as a cause for ter$ination %arranting se(aration (a", does not conte$(late a
situation %ere te closure of te business establis$ent is forced u(on te e$(lo"er and
ulti$atel" for te benefit of te e$(lo"ees, i.e., %en te govern$ent ta!es over a
business.+4:& v. 4&*C, 3arc 1, 1000-. #o%ever, even toug te transfer is due to a
reason be"ond te control of te e$(lo"er, e$(lo"ees are entitled to so$e relief in te
for$ of severance (a" +Ceniver Cor(. v. 4&*C, :ebruar" 1/, 1000-.
Serious $isconduct does not $erel" involve offensive utterances and obscene gesture
during an infor$al Crist$as gatering of a co$(an"7s district sales $anagers and
$ar!eting staff. .e gatering %as ,ust a casual get-togeter of e$(lo"ees. It is to be
eD(ected during tis !ind of gaterings, %ere tongues are loosened b" li=uor or oter
alcoolic beverages, e$(lo"ees freel" eD(ress teir grievances and gri(es against teir
e$(lo"ers. +Sa$son v. 4&*C, A(ril 11, 1000-
%ISPUTE SETTLEMENT
.e Secretar" of labor7s visitorial and enforce$ent (o%ers to enforce co$(liance %it labor
standards la%s, in cases %ere e$(lo"er-e$(lo"ee relationsi( still eDists, can be
eDercised even if te individual clai$ (er e$(lo"ee eDceeds PE,000.
'ere te dis(ute is ,ust in te ter$ination, i$(le$entation or enforce$ent stage, it $a" be
referred to te grievance $aciner" in te C>A or b" voluntar" arbitration, but %ere tere is
alread" actual ter$ination, i.e. violation of rigts, it is alread" cognizable b" te labor arbiter.
8ecisions of te 4&*C can no longer be brougt straigt to te Su(re$e Court. .e
re$ed" is to file a (etition for certiorari %it te Court of A((eals.
Petitions for certiorari against decisions of te Secretar" of &abor sould be filed %it te
Court of A((eals, not %it te Su(re$e Court.
A C>A %ic is (art of an arbitral a%ard $a" be $ade retroactive to te date of eD(iration of
te (revious agree$ent. Art. 1E3-A, (roviding for retroactivit" %en te (arties agreed on
te renegotiated (rovisions %itin 2 $onts fro$ te eD(ir" of suc (rovisions, a((lies onl"
to C>A7s entered into b" te (arties as a result of teir $utual agree$ent.
Civil as(ects of all cases involving B&P including clai$s for da$ages and oter affir$ative
relief sould be %itin te ,urisdiction of te labor arbiters.
.e original and eDclusive ,urisdiction of labor arbiters for $one" clai$s under Art. 11/ +c- is
li$ited onl" to tose arising fro$ statutes or contracts oter tan a C>A. .e Aoluntar"
Arbitrator as original and eDclusive ,urisdiction over $one" clai$s arising fro$ te
inter(retation or i$(le$entation of te C>A.
In illegal dis$issal cases, te e$(lo"er as te burden of (roof to (rove tat te dis$issal is
legal and failure to discarge tis burden sall %arrant a finding tat te dis$issal is illegal.
.o ,ustif" solidar" liabilit", tere $ust be an allegation or so%ing tat te officers of te
cor(oration deliberatel" or $aliciousl" designed to evade te financial obligation of te
cor(oration to its e$(lo"ees, or a so%ing tat te officers indiscri$inatel" sto((ed its
business to (er(etrate an illegal act, as a veicle for te evasion of eDisting obligations, in
circu$vention to statutes, and to confuse legiti$ate issues.
:or (ur(oses of venue, %or!(lace sall be understood as te (lace or localit" %ere te
e$(lo"ee is regularl" assigned %en te cause of action arose.
.e (resident, vice-(resident, secretar" and treasurer are co$$onl" regarded as te
(rinci(al or eDecutive officers of a cor(oration but oter officers are so$eti$es created b"
te carter or b"-la%s of te cor(oration, or te board of directors $a" be e$(o%ered under
te b"-la%s of a cor(oration to create additional offices as $a" be necessar". .e
deter$ination of te rigts of a (erson and te conco$itant liabilit" of te cor(oration arising
fro$ te for$er7s ouster fro$ a cor(orate office, is an intra-cor(orate controvers" sub,ect to
te S)C7s ,urisdiction.
B(on te a((oint$ent b" te S)C of a $anage$ent co$$ittee or a reabilitation receiver,
all actions for clai$s against te cor(oration (ending before an" court, tribunal or board
sall ipso +ure be sus(ended. .is rule a((lies to labor cases. +*ubber%orld Pils. A.
4&*C, 30E S /11, 1555-
A labor arbiter7s order of reinstate$ent is i$$ediatel" eDecutor" even (ending a((eal and
te (osting of a bond b" te e$(lo"er sall not sta" te eDecution for reinstate$ent. .ere
is no need for a %rit of eDecution.
.e (o%er of te court, or te 4&*C, to eDecute its ,udg$ent eDtends onl" to (ro(erties
un=uestionabl" belonging to te ,udg$ent debtor. If te (ro(ert" under lev" does not
belong to te ,udg$ent debtor in te 4&*C case, it could not be validl" levied u(on b" te
seriff for te satisfaction of te ,udg$ent terein. )ven u(on a (ri$a-facie so%ing of
o%nersi( b" te tird (art" clai$ant, if te tird (art" clai$ does not involve, nor gro% out
of, a labor dis(ute, a se(arate action for in,unctive relief against suc lev" $a" be
$aintained in court.
.e 4&*C is vested %it autorit" to loo! into te correctness of te eDecution of te
decision and to consider su(ervening events tat $a" affect suc eDecution.
In,unction is not a cause of action in itself but $erel" a (rovisional re$ed", an ad,unct to a
$ain suit. .e (o%er of te 4&*C to issue an in,unction %rit originates fro$ Gan" labor
dis(uteH u(on a((lication b" a (art" tereof, %ic a((lication if not granted G$a" cause
grave and irre(arable da$age to an" (art" or render ineffectual an" decision in favor of
suc (art".H It is an essential re=uire$ent tat tere $ust first be a labor dis(ute bet%een
te contending (arties before te labor arbiter.
Kuitclai$s, %aivers or releases are loo!ed u(on %it disfavor. Kuitclai$s eDecuted b" te
e$(lo"ees do not esto( te$ fro$ (ursuing teir clai$s arising fro$ te unfair labor
(ractices of te e$(lo"er.
4ot all %aivers and =uitclai$s $ade b" dis$issed e$(lo"ees, o%ever, are void. If te
agree$ent %as voluntaril" entered into and re(resents a reasonable settle$ent, it is binding
on te (arties and $a" not later be diso%ned si$(l" because of a cange of $ind.
G8ire necessit"H is not a ground for annulling a =uitclai$.
LABOR STAN%AR%S
.e ter$ Gouseel(erH or Gdo$estic servantH clearl" conte$(lates suc ouseel(er or
do$estic servant %o is e$(lo"ed in te e$(lo"er7s ouse to $inister eDclusivel" to te
(ersonal co$fort and en,o"$ent of te e$(lo"er7s fa$il". .e ter$ cannot include a
ouseel(er %or!ing in staffouses of a co$(an".
)ven if %or!ers (erfor$ nonagricultural %or! a%a" fro$ te e$(lo"er7s business offices, but
trougout te duration of teir %or!, te" are under te effective control and su(ervision of
te e$(lo"er troug its agent, te %or!ers cannot be considered as field (ersonnel.
An e$(lo"er7s uneD(lained silence contravening te (ersonnel data seet and te
attendance seets (resented b" an e$(lo"ee so%ing e %or!ed for t%elve ours assu$es
te caracter of an ad$ission.
)ntitle$ent to overti$e (a" $ust first be establised b" (roof tat said overti$e %or! %as
actuall" (erfor$ed, before an e$(lo"ee $a" avail of said benefit.
A %age dis(arit" bet%een e$(lo"ees occu("ing te sa$e (osition but assigned to different
regions resulting fro$ differences in te regional $ini$u$ %age rates is not G%age
distortion.H
'or!ers %o are (aid b" results are not eDe$(ted fro$ te coverage of te overti$e (a"
benefit, and terefore entitled to overti$e (a", if teir out(ut rates are not in accordance %it
te standards (rescribed b" te rules or %it te rates (rescribed b" te Secretar" of &abor.
If an e$(lo"er accords e$(lo"ees te sa$e (osition and ran!, te (resu$(tion is tat
tese e$(lo"ees (erfor$ e=ual %or!. 'ile it is recognized tat tere eDists te need of a
scool to attract foreign-ires, salaries sould not be used as an entice$ent to te (re,udice
of local-ires. .e local-ires (erfor$ te sa$e services as foreign-ires and te" ougt to
be (aid te sa$e salaries as te latter. :or te sa$e reason, te Ldislocation factorL and te
foreign-iresM li$ited tenure also cannot serve as valid bases for te distinction in salar"
rates. .e dislocation factor and li$ited tenure affecting foreign-ires are ade=uatel"
co$(ensated b" certain benefits accorded te$ %ic are not en,o"ed b" local-ires, suc
as ousing, trans(ortation, si((ing costs, taDes and o$e leave travel allo%ances +I.S.).A.
v.Kuisu$bing, June 1, 1000-.
Com!ensa-i$it o* si"8ness
:or a sic!ness and te resulting disabilit" or deat to be co$(ensable, te said sic!ness
$ust be an occu(ational disease listed under AnneD GAH of said *ules,

NA$ended *ules on
)$(lo"ees7 Co$(ensation.O oter%ise, te clai$ant or e$(lo"ee concerned $ust (rove tat
te ris! of contracting te disease is increased b" te %or!ing condition.

N>ravo v. )CC, 11/
Pil. 53, 5/ N1582O.O
Co$(ensabilit" of te illness or deat of sea$en need not de(end on %eter te illness
%as %or! connected or not. NSealanes 3arine Services, Inc. vs. 4&*C, 150 SC*A 33/, 362
+1550-O It is sufficient tat te illness occurred during te ter$ of te e$(lo"$ent contract. It
%ill also be recalled tat (etitioners ad$itted tat (rivate res(ondentMs %or! as a radio officer
eD(osed i$ to different cli$ates and un(redictable %eater, %ic could trigger a eart
attac! or eart failure. N'ollo, (. 1E.O
)ven assu$ing tat te ail$ent of te %or!er %as contracted (rior to is e$(lo"$ent, tis
still %ould not de(rive i$ of co$(ensation benefits. :or %at $atters is that his work had
contributed even in a small degree to the development of the disease and in bringing about
is eventual deat. N'alle$ 3ariti$e Services, Inc. vs. 4&*C, ?.*. 4o. 130//1, 4ove$ber
15, 1555, (. 8.O 4eiter is it necessar", in order to recover co$(ensation, tat te e$(lo"ee
$ust ave been in (erfect ealt at te ti$e e contracted te disease. +Seagull v. 4&*C,
June 8, 1000-
Cardiovascular diseases are listed as co$(ensable occu(ational diseases in te *ules of
te )$(lo"ees7 Co$(ensation Co$$ission, ence, no furter (roof of casual relation
bet%een te disease and clai$ant7s %or! is necessar" to clai$ co$(ensation. +Sal$one v.
)$(lo"ees Co$(ensation, Se(te$ber 12, 1000-