A. LEGAL BASIS:
1. 1987 Constitution
Article II – Declaration of Principles and
State Policies
1. The Philippines renounces war as an
instrument of national policy, adopts the
generally accepted principles of international
law as part of the law of the land and adheres
to the policy of peace, equality, justice,
freedom, cooperation, and amity with all
nations (Sec. 2);
2. 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 service,
promote full employment, a rising standard
of living, and an improved quality of life for all
(Sec. 9);
3. The State shall promote social justice in
all phases of national development (Sec.10);
4. The State values the dignity of every
human person and guarantees full respect
for human rights (Sec. 11);
5. The State recognizes the vital role of the
youth in nation-building and shall promote
and protect their physical, moral, spiritual,
intellectual, and social well-being. It shall
inculcate in the youth patriotism and
nationalism,
and
encourage
their
involvement in public and civic affairs. (Sec.
13);
6. The State recognizes the role of women in
nation-building, and shall ensure the
fundamental equality before the law of
women and men (Sec. 14);
7. The State affirms labor as a primary social
economic force. It shall protect the rights the
workers and promote their welfare (Sec.18);
and
8. The State recognizes the indispensable
role of the private sector, encourages
private enterprise and incentives to needed
investments
(Sec. 20).
Note: Article II is merely a statement of
principles and state policies. Its provisions
are not self-executing. They do not embody
judicially enforceable constitutional rights
but guidelines for legislation. These broad
principles need legislative enactments to
implement them. The disregard of these
provisions cannot give rise to a cause of
action in the courts. Consequently, no case
can be filed based on these principles.
There must be enabling laws to implement
them. (Kilosbayan, Inc. vs. Morato, G.R. No.
118910, November 16, 1995).
Art. III –Bill of Rights
1. No person shall be deprived of life, liberty
or property without due process of law, nor
shall any person be denied the equal
protection of the laws (Sec. 1);
Two-fold requirement: Under the Labor
Code (NOT
requirements
the
Constitution),
the
for the lawful dismissal of an employee by
his employer are two-fold: the substantive
and the procedural.
● Substantive: two requisites must concur:
1. the dismissal must be for a just or
authorized cause; and
2. the employee must be afforded an
opportunity to be heard and to defend
himself. (Jeffrey Nacague v. Sulpicio Lines,
Inc., G.R. No. 172589, August 8, 2010)
An employer may dismiss an employee on
the following just causes: (Art. 297)
a) serious misconduct;
b) willful disobedience;
c) gross and habitual neglect of duty;
d) fraud or breach of trust;
e) commission of a crime or offense
against the employer, his family or
representative;
f) other similar causes.
The other grounds are authorized
causes: (Art. 298)
a) installation of labor-saving devices;
b) redundancy;
c) retrenchment to prevent losses;
d) closure and cessation of business; and
e) disease / illness.
● Procedural: an opportunity to be heard
and to defend oneself must be observed
before an employee may be dismissed.
(Metro Eye Security v. Salsona, G.R. No.
167367, September 28, 2007)
The right of a person to his labor is
deemed to be his property within the
mantle of constitutional protection. That is
his means of livelihood. He cannot be
deprived of his labor or work without due
process of law. (Philips Semiconductors
(Phils.) Inc. v. Fadriquela, G.R. No. 141717,
April 14, 2004)
2. No law shall be passed abridging the
freedom of speech, of expression, or of the
press, or the right of the people to peaceably
assemble and petition the government for
redress of grievances. (Sec. 4);
Picketing peacefully carried out is not illegal
even in the absence of employer-employee
relationship, for peaceful picketing is a part
of the freedom of speech guaranteed by the
Constitution. (De Leon, et al. vs. National
Labor Union, et al., G.R. No. L-7586,
January 30, 1957)
3. The right of the people to information on
matters of public concern shall be
recognized. Access to official records, and to
documents, and papers pertaining to official
acts, transactions, or decisions, as well as to
government research data used as basis for
policy development, shall be afforded the
citizen, subject to such limitations as may be
provided by law (Sec. 7);
4. The right of the people including those
employed in the public and private sectors,
to form unions, association, or societies for
purposes not contrary to law shall not be
abridged. (Sec. 8);
The right to form, join, or assist a union is
specifically protected by Art. XIII, Section 3
of the Constitution and such right, according
to Art. III, Sec. 8 of the Constitution and Art.
246 of the Labor Code, shall not be
abridged. (S.S. Ventures International, Inc.
vs. S.S. Ventures Labor Union, G.R. No.
161690, July 23, 2008)
5. No law impairing the obligation of
contracts shall be passed. (Sec. 10);
The constitutional guaranty of nonimpairment of contract is limited by the
exercise of the police power of the State
in the interest of public health, safety,
morals, and general welfare. (Philamlife
Insurance Co. vs. The Auditor General, G.R.
No. L-19225, January 18, 1968)
6. All persons shall have the right to a
speedy disposition of their cases before all
judicial, quasi-judicial, or administrative
bodies (Sec. 16); and
The right to a speedy disposition of cases is
guaranteed by the Constitution. The concept
of speedy disposition is flexible. The fact that
it took the CSC six years to resolve the
appeal of petitioner does not, by itself,
automatically prove that he was denied his
right to the speedy disposition of his case.
After all, a mere mathematical reckoning of
the time involved is not sufficient, as the facts
and circumstances peculiar to the case must
also be considered. (Barcelona v. Lim, G.R.
No. 189171, June 3, 2014)
The right to a speedy trial, as well as other
rights conferred by the Constitution or
statute, may be waived except when
otherwise expressly provided by law. One's
right to the speedy disposition of his case
must therefore be asserted. (Ibid)
7. No involuntary servitude in any form shall
exist except as punishment for a crime
whereof the party shall have been duly
convicted (Sec. 18[2]).
The notion of involuntary servitude connotes
the presence of force, threats, intimidation or
other similar means of coercion and
compulsion. (Spouses Imbong v. Ochoa, Jr.,
G.R. Nos. 204819, April 8, 2014)
An individual employee can, at any time, in a
consensual and in personam employment
contract, walk away from it, subject only to
the adjustment of the obligations he has
incurred under the contractual relationship
that binds him; a contrary rule would violate
the involuntary service provision of the
Constitution. (Bank of the Philippine Islands
vs. BPI Employees Union-Davao ChapterFederation of Unions in BPI Unibank, G.R.
No. 164301, August 10, 2010)
Art. IX- Constitutional Commissions
B. The Civil Service Commission
(2) Appointments in the civil service shall be
made only according to merit and fitness to
be determined, as far as practicable, and,
except to positions which are policydetermining, primarily confidential, or highly
technical, by competitive examination. (B,
Sec. 2(B))
Art. XII- National Economy and Patrimony
The State shall promote the preferential use
of Filipino labor, domestic materials and
locally produced goods, and adopt
measures that help make them competitive.
(Sec.12)
Art. XIII – Social Justice and Human
Rights
1. The Congress shall give highest priority to
the enactment of measures that protect and
enhance the right of all the people to human
dignity, reduce social, economic, and
political inequalities, and remove cultural
inequities by equitably diffusing wealth and
political power for the common good.
To this end, the State shall regulate the
acquisition, ownership, use, and disposition
of property and its increments. (Sec. 1);
2. The promotion of social justice shall
include the commitment to create economic
opportunities based on freedom of initiative
and self-reliance (Sec. 2);
3. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment
and equality of employment opportunities for
all.
San Rafael, G.R. No. 230597, March 23,
2022, Per J. Hernando)
It shall guarantee the rights of all workers to
self-organization, collective bargaining and
negotiations, and peaceful concerted
activities, including the right to strike in
accordance with law. They shall be entitled
to security of tenure, humane condition of
work, and a living wage.
4. The State shall establish a special agency
for disabled persons for their rehabilitation,
self- development and self-reliance, and
their integration into the mainstream of
society (Sec. 13); and
They shall also participate in policy and
decision-making processes affecting their
rights and benefits as may be provided by
law.
The State shall promote the principle of
shared responsibility between workers and
employers and the preferential use of
voluntary modes in settling disputes,
including conciliation, and shall enforce their
mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations
between
workers
and
employers,
recognizing 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
(Sec. 3);
NOTE: Sec. 3, Article XIII of the 1987
Constitution is also known as the
PROTECTION-TO-LABOR
CLAUSE.
Constitutional Basis for Right to Strike
The measures embedded in our legal
system which accord specific protection to
labor stems from the reality that normally, the
laborer stands on unequal footing as
opposed to an employer. Indeed, the labor
force is a special class that is constitutionally
protected because of the inequality between
capital and labor. (Reyes vs. Rural Bank of
The intent is to balance the scale of justice;
to put the two parties on relatively equal
positions.
There may be cases where the circumstance
warrants favoring labor over the interest of
management but never injustice to the
employer (Abad, Compendium on Labor
Law, 2015, p.8)
5. The State shall protect working women by
providing safe and healthful working
conditions, taking into account their maternal
functions, and such facilities and
opportunities that will enhance their welfare
and enable them to realize their full potential
in the service of the nation (Sec. 14)
Cardinal Rights of Labor
The 1987 Constitution enumerates the
guaranteed basic rights of workers, namely:
(1) to organize themselves; (2) to conduct
collective bargaining or negotiation with
management; (3) to engage in peaceful
concerted activities, including to strike in
accordance with law; (4) to enjoy security of
tenure; (5) to work under humane conditions;
(6) to receive a living wage; and (7) to
participate in policy and decision-making
processes affecting their rights and benefits
as may be provided by law.
1. right to self-organization
2. collective bargaining and negotiations
3. peaceful concerted activities including the
right to strike in accordance with law
4. security of tenure
5. humane conditions of work
6. living wage
7. participate in policy and decision-making
processes affecting their rights and benefits
as may be provided by law.
2. Civil Code
Article 17. The forms and solemnities of
contracts, wills, and other public instruments
shall be governed by the laws of the country
in which they are executed.
When the acts referred to are executed
before the diplomatic or consular officials of
the Republic of the Philippines in a foreign
country, the solemnities established by
Philippine laws shall be observed in their
execution.
Prohibitive laws concerning persons, their
acts or property, and those which have for
their object public order, public policy and
good customs shall not be rendered
ineffective by laws or judgments
promulgated, or by determinations or
conventions agreed upon in a foreign
country. (11a)
Article 1700. The relations between capital
and labor are not merely contractual. They
are so impressed with public interest that
labor contracts must yield to the common
good. Therefore, such contracts are subject
to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed
shop, wages, working conditions, hours of
labor and similar subjects.
Article 1701. Neither capital nor labor shall
act oppressively against the other, or impair
the interest or convenience of the public.
Article 1702. In case of doubt, all labor
legislation and all labor contracts shall be
construed in favor of the safety and decent
living for the laborer.
Article 1703. No contract which practically
amounts to involuntary servitude, under any
guise whatsoever, shall be valid.
Article 1704. In collective bargaining, the
labor union or members of the board or
committee signing the contract shall be liable
for non-fulfillment thereof.
Article 1705. The laborer's wages shall be
paid in legal currency.
Article 1706. Withholding of the wages,
except for a debt due, shall not be made by
the employer.
Article 19. Every person must, in the
exercise of his rights and in the performance
of his duties, act with justice, give everyone
his due, and observe honesty and good faith.
Article 1707. The laborer's wages shall be a
lien on the goods manufactured or the work
done.
CHAPTER 3- Work and Labor
Article 1708. The laborer's wages shall not
be subject to execution or attachment,
except for debts incurred for food, shelter,
clothing and medical attendance.
SECTION 2
Contract of Labor (n)
Article 1709. The employer shall neither
seize nor retain any tool or other articles
belonging to the laborer.
Article 1710. Dismissal of laborers shall be
subject to the supervision of the
Government, under special laws.
Article 1711. Owners of enterprises and
other employers are obliged to pay
compensation for the death of or injuries to
their laborers, workmen, mechanics or other
employees, even though the event may have
been purely accidental or entirely due to a
fortuitous cause, if the death or personal
injury arose out of and in the course of the
employment. The employer is also liable for
compensation if the employee contracts any
illness or disease caused by such
employment or as the result of the nature of
the employment. If the mishap was due to
the employee's own notorious negligence, or
voluntary act, or drunkenness, the employer
shall not be liable for compensation. When
the employee's lack of due care contributed
to his death or injury, the compensation shall
be equitably reduced.
Article 1712. If the death or injury is due to
the negligence of a 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 plaintiff's
fellow worker.
SECTION 3
Contract for a Piece of Work
Article 1713. By the contract for a piece of
work the contractor binds himself to execute
a piece of work for the employer, in
consideration of a certain price or
compensation. The contractor may either
employ only his labor or skill, or also furnish
the material. (1588a)
Article 1714. If the contractor agrees to
produce the work from material furnished by
him, he shall deliver the thing produced to
the employer and transfer dominion over the
thing. This contract shall be governed by the
following articles as well as by the pertinent
provisions on warranty of title and against
hidden defects and the payment of price in a
contract of sale. (n)
Article 1715. The contract shall execute the
work in such a manner that it has the
qualities agreed upon and has no defects
which destroy or lessen its value or fitness
for its ordinary or stipulated use. Should the
work be not of such quality, the employer
may require that the contractor remove the
defect or execute another work. If the
contract fails or refuses to comply with this
obligation, the employer may have the defect
removed or another work executed, at the
contractor's cost. (n)
Article 1716. An agreement waiving or
limiting the contractor's liability for any defect
in the work is void if the contractor acted
fraudulently. (n)
Article 1717. If the contractor bound himself
to furnish the material, he shall suffer the
loss if the work should be destroyed before
its delivery, save when there has been delay
in receiving it. (1589)
Article 1718. The contractor who has
undertaken to put only his work or skill,
cannot claim any compensation if the work
should be destroyed before its delivery,
unless there has been delay in receiving it,
or if the destruction was caused by the poor
quality of the material, provided this fact was
communicated in due time to the owner. If
the material is lost through a fortuitous event,
the contract is extinguished. (1590a)
Article 1719. Acceptance of the work by the
employer relieves the contractor of liability
for any defect in the work, unless:
(1) The defect is hidden and the
employer is not, by his special
knowledge, expected to recognize
the same; or
(2) The employer expressly reserves
his rights against the contractor by
reason of the defect. (n)
Article 1720. The price or compensation
shall be paid at the time and place of delivery
of the work, unless there is a stipulation to
the contrary. If the work is to be delivered
partially, the price or compensation for each
part having been fixed, the sum shall be paid
at the time and place of delivery, in the
absence if stipulation. (n)
Article 1721. If, in the execution of the work,
an act of the employer is required, and he
incurs in delay or fails to perform the act, the
contractor is entitled to a reasonable
compensation.
The amount of the compensation is
computed, on the one hand, by the duration
of the delay and the amount of the
compensation stipulated, and on the other
hand, by what the contractor has saved in
expenses by reason of the delay or is able to
earn by a different employment of his time
and industry. (n)
Article 1722. If the work cannot be
completed on account of a defect in the
material furnished by the employer, or
because of orders from the employer,
without any fault on the part of the
contractor, the latter has a right to an
equitable part of the compensation
proportionally to the work done, and
reimbursement for proper expenses made.
(n)
Article 1723. The engineer or architect who
drew up the plans and specifications for a
building is liable for damages if within fifteen
years from the completion of the structure,
the same should collapse by reason of a
defect in those plans and specifications, or
due to the defects in the ground. The
contractor is likewise responsible for the
damages if the edifice falls, within the same
period, on account of defects in the
construction or the use of materials of
inferior quality furnished by him, or due to
any violation of the terms of the contract. If
the engineer or architect supervises the
construction, he shall be solidarily liable with
the contractor.
Acceptance of the building, after completion,
does not imply waiver of any of the cause of
action by reason of any defect mentioned in
the preceding paragraph.
The action must be brought within ten years
following the collapse of the building. (n)
Article
1724. The
contractor
who
undertakes to build a structure or any other
work for a stipulated price, in conformity with
plans and specifications agreed upon with
the land-owner, can neither withdraw from
the contract nor demand an increase in the
price on account of the higher cost of labor
or materials, save when there has been a
change in the plans and specifications,
provided:
(1) Such change has been
authorized by the proprietor in
writing; and
(2) The additional price to be paid to
the contractor has been determined
in writing by both parties. (1593a)
Article 1725. The owner may withdraw at
will from the construction of the work,
although it may have been commenced,
indemnifying the contractor for all the latter's
expenses, work, and the usefulness which
the owner may obtain therefrom, and
damages. (1594a)
Article 1726. When a piece of work has
been entrusted to a person by reason of his
personal qualifications, the contract is
rescinded upon his death.
In this case the proprietor shall pay the heirs
of the contractor in proportion to the price
agreed upon, the value of the part of the
work done, and of the materials prepared,
provided the latter yield him some benefit.
The same rule shall apply if the contractor
cannot finish the work due to circumstances
beyond his control. (1595)
Article 1727. The contractor is responsible
for the work done by persons employed by
him. (1596)
Article 1728. The contractor is liable for all
the claims of laborers and others employed
by him, and of third persons for death or
physical injuries during the construction. (n)
Article 1729. Those who put their labor
upon or furnish materials for a piece of work
undertaken by the contractor have an action
against the owner up to the amount owing
from the latter to the contractor at the time
the claim is made. However, the following
shall not prejudice the laborers, employees
and furnishers of materials:
(1) Payments made by the owner to
the contractor before they are due;
(2) Renunciation by the contractor of
any amount due him from the owner.
This article is subject to the provisions of
special laws. (1597a)
Article 1730. If it is agreed that the work
shall be accomplished to the satisfaction of
the proprietor, it is understood that in case of
disagreement the question shall be subject
to expert judgment.
If the work is subject to the approval of a third
person, his decision shall be final, except in
case of fraud or manifest error. (1598a)
Article 1731. He who has executed work
upon a movable has a right to retain it by way
of pledge until he is paid. (1600)