State the legal basis of labor law and tell
where it may be found; recognize the
basic rights of workers and employers;

1.
2.
3.
Legal Basis of Labor Law
1987 Constitution
Civil code
Labor code
1. 1987 Constitution
 Article II: Declaration of Principles
and State Policies -Section 9, 10, 18
and 20
Sec. 9-(a)Promote full employment, a
rising standardof living, and an
improved quality of life for all.
Sec. 10-(b) Promote Social Justice and
Human Rights
Sec. 18- (c)Affirm labor as a primary
social economic force; (d) Affirm labor
as a primary social economic
force
Sec. 20- (e) Recognize the
indispensable role of the private sector;
(f) Encourage private enterprise; (g)
Provide incentives to needed
investments
Article III: Bill of Rights- Sec. 1, 4, 8,
10, 16 and 18 (2)
Sec. 1- Due Process- Lawful Dissmissal of
an employee. Requirements:
 Substantive (1) just and authorized
(2) must be afforded an oppurtunity
to be heard and defend himself.
 Procedural- oppurtunity to be heard
and to defend oneself before
dissmissal.
Sec. 4- The Right to Assemble
Sec. 8- The Right to form Associations
Sec. 10- Non-impairment of Contracts
Sec. 16- Labor Rights and Protection
Sec. 18 (2)- No involuntary servitude in
any form shall exist.


Article XIII: Social Justice and
Human Rights- Sec. 3, par. 1-2, 3-4,
Sec. 3, par. 1-2- a. Afford full protection
to labor, local and
overseas, organized and unorganized
b. Promote full employment and
equality of employment opportunities
for all. (regardless of sex, race or creed)
c. Guarantee the rights (also known as
the “Cardinal Labor Rights”) of all
workers to:
1. Self-organization
2. Collective bargaining and
negotiations
3. Peaceful concerted activities
4. Strike in accordance with law
5. Security of tenure,
6. Humane conditions of work
7. A living wage.
8. To participate in policy and
decisionmaking processes affecting
their rights and benefits as may be
provided by Law
Labor as Protected Class: Presumption
inherent inequality
Employee>State-Employer
Sec. 3, par. 3-4- a. Promote the principle
of shared responsibility between workers
and employers
b. Promote the preferential use of
voluntary modes in settling disputes
c. Regulate the relations between
workers and employers,
d. Recognize the right of labor to its just
share in the fruits of production and the
right of enterprises to reasonable returns
to investments, and to expansion and
growth.
2. Civil Code
Relations between labor and capitalThe relations between capital and labor
are not merely contractual. [Art. 1700,
CC]
They are impressed with public interest
that labor contracts:
a. Must yield to the common good
b. Are subject to special laws on
1. Labor unions,
2. Collective bargaining,
3. Strikes and lockouts,
4. Closed shop,
5. Wages,
6. Working conditions,
7. Hours of labor; and
8. Similar subjects
3. Labor Code
The State shall:
a. Afford protection to labor
b. Promote full employment
c. Ensure equal work opportunities
(regardless of sex, race or creed)
d. Regulate the relations between
workers and employers.
The State shall assure the rights of
workers to
a. Self-organization,
b. Collective bargaining,
c. Security of tenure, and
d. Just and humane conditions of work.
[Art.3]
Tell when an employer- employee
relationship exists; differentiate job
contracting from labor-only contracting;
1) the selection and engagement of the
employee;
2) the payment of wages;
3) the power of dismissal; and
4) 4) the employer’s power to control
the employee’s conduct (the ‘control
test’).
In a job contracting arrangement
where the principal farms out the
performance of a part of its business
activities to another entity (the job
contractor), the job contractor’s own
employees perform or undertake that
portion of the principal’s business which
has been farmed out.
If the job contracting arrangement is
illegitimate (known as ‘labor-only
contracting’), the job contractor’s
employees may be considered as the
employees of the principal.
Restate and apply the minimum
standards on hours of work, rest days,
holidays, various leaves, minimum
wages, payment and protection of
wages, 13th month pay, and the
working conditions for women, minors,
house helps and other special groups of
workers;