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)