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FUNDAMENTAL PRINCIPLES AND CONCEPTS
1. What is the Protection-to-Labor clause under the Constitution?
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. 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 conditions of work, and a living wage. 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 on investments, and to expansion and growth. (Art. XIII, Sec. 3, 1987
Constitution)
2. What is the Principle of Co-Determination?
The principle of co-determination refers to the right of employees to participate in policy and decision making processes
directly affecting their rights and benefits. (Art XIII, Sec. 3 par 2 & 3, 1987 Constitution)
3. Is employer-employee relationship purely contractual?
No. 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. (Art. 1700, Civil Code)
4. What is the extent of the application of security of tenure?
Security of tenure does not exclusively apply to regular employment only. It also applies to probationary, seasonal, project
and other forms of employment during the effectivity thereof. Managerial employees also enjoy security of tenure. The
principle of security of tenure applies not only to rank-and-file employees but also to managerial employees. (Chan, 2009 PreWeek Bar Exam Notes on Labor Law; PLDT vs. Tolentino, G. R. No. 143171, Sept. 21, 2004)
6. What is encompassed by the principle of equal work opportunities?
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. Further, the State shall promote equal opportunities in employment for
everyone. To this end, it shall be the policy of the State to:
1. Promote employment of individuals on the basis of their abilities, knowledge, skills and qualifications rather than their
age.
2. Prohibit arbitrary age limitations in employment.
3. Promote the right of all employees and workers, regardless of age, to be treated equally in terms of compensation,
benefits, promotion, training and other employment opportunities. (Section 3, Article XIII, The 1987 Constitution of the
Philippines; Section 2, RA 10911, Anti-Age Discrimination in Employment Act)
7. What is the right to self-organization?
The right to self-organization includes the right to form, join or assist labor organizations for the purpose of collective
bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose
for their mutual aid and protection. This is in line with the policy of the State to foster the free and voluntary organization of a
strong and united labor movement as well as to make sure that workers participate in policy and decision-making processes
affecting their rights, duties and welfare. (Samahan ng Manggagawa sa Hanjin Shipyard v. Bureau of Labor Relations, G. R. No.
211145, 14 October 2015)
8. How are labor laws construed?
All doubts in the implementation and interpretation of the provisions of the Labor Code, including its implementing rules and
regulations, shall be resolved in favor of labor. (Art. 4, Labor Code)
9.
Are employers entitled to be accorded a liberal interpretation of the labor rules?
No. The rules are primarily granted for the employee's favor, and not the employer. The principles embodied by all prevailing
labor rules, legislations, and regulations are derived from the Constitution, which intensely protects the working individual
and deeply promotes social justice. In the common scenario of an unaided worker, who does not possess the necessary
knowledge to protect his rights, pitted against his employer in a labor proceeding, the former is not expected to be perfectly
compliant at all times with every single twist and turn of legal technicality. The same, however, cannot be said for the latter,
who more often than not, has the capacity to hire the services of a counsel. As an additional aid therefore, a liberal
interpretation of the technical rules of procedure may be allowed if only to further bridge the gap between an employee and
an employer. (Reyes vs. Rural Bank of San Rafael, G.R. No. 230597. March 23, 2022)
II. PRE-EMPLOYMENT
10. What is recruitment and placement?
Recruitment and placement refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for
profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or
more persons shall be deemed engaged in recruitment and placement. (Article 13(b), Labor Code of the Philippines)
12. What are the three (3) modes of committing illegal recruitment?
1.
2.
3.
Illegal recruitment per se, as defined in the first paragraph of Section 6 of RA 8042;
Illegal recruitment practices, as listed (a) to (m) in the same provision; and
Prohibited practices amounting to illegal recruitment as numerically listed in the same section. (Toston v. People, G.R.
No. 232049, March 03, 2021)
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13. Distinguish illegal recruitment per se from illegal recruitment practices and prohibited practices amounting to illegal
recruitment.
Illegal recruitment per se
Illegal recruitment practices and prohibited practices
amounting to illegal recruitment.
Can only be committed by non-licensees or non-holders of
authority.
Committed by any person or entity, regardless of
recruitment licensing status.
(Toston v. People, G.R. No. 232049, March 03, 2021)
11. What are the two types of illegal recruitment and its elements?
Simple Illegal Recruitment
It is committed by:
1. a person who, not having the valid license or authority
required by law to enable him to lawfully engage in
recruitment and placement of workers.
2. undertakes any of the activities within the meaning of
"recruitment and placement" mentioned in Article 13(b)
of the Labor Code, or any of the prohibited practices
enumerated in Section 6 of RA 8042.
Illegal Recruitment involving Economic Sabotage
It is committed by a syndicate or on a large scale.
Deemed committed on a
large scale if committed
against three or more
persons individually or
as a group.
Deemed committed by a
syndicate if carried out by a
group of three (3) or more
persons
conspiring
or
confederating
with
one
another.
(People vs. Imperio y Antonio, G.R. No. 232623. October 5, 2020. Hernando, J; People v. Cagalingan, G.R. No. 198664, 2016; Article 38,
Labor Code of the Philippines)
11. Is the fact that no receipt was issued by the recruiter fatal to the prosecution of an illegal recruitment case?
No. The fact that no receipt was issued by the recruiter is not fatal to the prosecution's cause. It suffices that the recruiter
promised or offered employment for a fee to the complaining witnesses to warrant his conviction for illegal recruitment. (People
vs. Imperio y Antonio, G.R. No. 232623. October 5, 2020, Hernando, J.)
12. Distinguish the presumption on recruitment and placement versus presumption on illegal recruitment
Recruitment and placement
Illegal recruitment
The presumption is found in Article 13 (b) of the Labor Code.
The presumption is found in Section 6 of RA 8042.
Any person or entity which, in any manner, offers or
promises for a fee, employment to two (2) or more persons
shall be deemed engaged in recruitment and placement.
Any such non-licensee or non-holder who, in any manner,
offers or promises for a fee employment abroad to two (2)
or more persons shall be deemed so engaged in illegal
recruitment.
(Art. 13(b), Labor Code; Sec. 6, RA8042)
12. Does the Department of Labor and Employment have the power to suspend or cancel license or authority concurrent
with POEA?
Yes. It is settled that the power to suspend or cancel any license or authority to recruit employees for overseas employment
is vested upon the Secretary of Labor and Employment under Art. 35 of the Labor Code. Also under Sec. 36, he has the
authority not only to restrict and regulate the recruitment and placement activities of all agencies but also to promulgate rules
and regulations to carry out the objectives and implement the provisions governing said activities. (Trans Action Overseas Corp.
v. The Hon. Sec. of Labor, G.R. No. 109583, 5 September 1997)
13. What are the regulatory and visitorial powers vested in the Department of Labor and Employment (DOLE) Secretary?
Regulatory Power
Visitorial Power
The Secretary of Labor shall have the power to restrict and
regulate the recruitment and placement activities of all
agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the
provisions of this Title.
The Secretary of Labor or his duly authorized
representatives may, at any time, inspect the premises,
books of accounts and records of any person or entity
covered by this Title, require it to submit reports regularly
on prescribed forms, and act in violation of any provisions
of this Title.
(Chapter III - Miscellaneous Provisions Article 36 Regulatory Power, Labor Code of the Philippines; Chapter III - Miscellaneous Provisions
Article 36 Regulatory Power, Labor Code of the Philippines)
13. What are the characteristics of the responsibilities of the local recruitment agency in relation to its foreign principal?
The liability of the recruitment/placement agency for any and all claims under Section 10, RA 8042, as amended, shall be
joint and several. Local recruitment agency is solidarily liable with the foreign principal, and the severance of relations
between local agent and foreign principal does not affect liability of local recruiter. In the event that the recruiter and the
principal had already terminated their agency agreement prior to the employee's injury, the recruiter may still be sued for a
violation of the employment contract. (Section 10, RA 8042 as amended; Catan vs. NLRC, G.R. No. 77279, 1988)
15. AAA posted a job opening for BBB, a corporation abroad. When CCC was accepted by BBB, AAA sent CCC’s
documents to the company. BBB sent a visit visa for CCC instead of an employment visa. AAA protested. However,
BBB and CCC proceeded under an employment contract. Since then, AAA refused to participate in CCC’s
employment. CCC was later on illegally dismissed. Is AAA solidarily liable with BBB despite the fact that it protested
to the visit visa and that CCC’s employment contract was not previously approved by the POEA?
Yes, AAA is solidarily liable with BBB. Under the Migrant Workers and Overseas Filipinos Act, the liability of the principal
employer and the recruitment/placement agency shall be joint and several. Even if CCC's employment contract was not
previously approved by the POEA, he should still be protected by our labor laws precisely because an employer-employee
relationship was established. AAA participated in CCC's initial deployment despite protesting after discovering that a visit
visa was secured instead of a work visa. Thus, AAA participated, one way or another, and acted as BBB's local manning
agent. AAA cannot evade liability by simply refusing to process an overseas worker's documentation yet at the same time
admit to being the local manning agent of a foreign principal which invalidly dismissed an employee. As the local placement
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agency, AAA should have employed measures to ensure that CCC's deployment would be in accordance with existing
policies, from the beginning of the employment until its end. (SRL International Manpower Agency vs. Yarza, Jr., G.R. No. 207828.
February 14, 2022, Hernando, J.)
14. What is the theory of imputed knowledge?
This theory refers to a cognizance or fact attributed to a party because of its position, or its relationship with or responsibility
for another party. The relationship of the local recruitment agency/local manning agency vis-à-vis its foreign principal is that
of agent-principal, the former being the agent and the latter, the principal. Consequently, the theory of imputed knowledge
ascribes the knowledge of the agent to the principal. (Chan, 2019)
15. Under what circumstances are employers allowed to set age limitations in employment?
An employer may set age limitations in the following circumstances:
a. Age is a bona fide occupational qualification reasonably necessary in the normal operation of a particular business or
where the differentiation is based on reasonable factors other than age;
b. The intent is to observe the terms of a bona fide seniority system that is not intended to evade the purpose of this Act;
c. The intent is to observe the terms of a bona fide employee retirement or a voluntary early retirement plan consistent with
the purpose of this Act: Provided, That such retirement or voluntary retirement plan is in accordance with the Labor
Code, as amended, and other related laws; or
d. The action is duly certified by the Secretary of Labor and Employment in accordance with the purpose of this Act. (Section
6, RA 10911 or the Anti-Age Discrimination in Employment Act)
16. What are the unlawful acts related to age discrimination in the workplace, as listed under RA 10911 or the Anti-Age
Discrimination in Employment Act?
a. Employers printing or publishing any notice of advertisement relating to employment that suggests preferences,
limitations, specifications, and discrimination based on age.
b. Employers requiring the declaration of age or birth date during the application process.
c. Employers declining any employment application because of the individual's age.
d. Employers discriminating against an individual in terms of compensation, terms and conditions, or privileges of
employment on account of their age.
e. Employers denying any employee's or worker's promotion or opportunity for training because of age.
f. Employers forcibly laying off an employee or worker because of old age.
g. Employers imposing early retirement on the basis of the employee's or worker's age.
h. Labor contractors or subcontractors refusing to refer for employment or otherwise discriminating against any individual
because of their age.
i. Labor organizations denying membership to any individual because of their age, excluding individuals from membership
because of age, or causing or attempting to cause an employer to discriminate against an individual in violation of the
Act.
j. Publishers printing or publishing any notice of advertisement relating to employment suggesting preferences, limitations,
specifications, and discrimination based on age. (Section 5 of RA 10911)
17. What is the concept of Discrimination Against Women under RA 9710 or the Magna Carta of Women?
“Discrimination Against Women” refers to any gender-based distinction, exclusion, or restriction which has the effect or
purpose of impairing or nullifying the recognition, enjoyment, or exercise by women, irrespective of their marital status, on a
basis of equality of men and women, of human rights and fundamental freedoms in the political, economic, social, cultural,
civil, or any other field. It includes any act or omission, including by law, policy, administrative measure, or practice, that
directly or indirectly excludes or restricts women in the recognition and promotion of their rights and their access to and
enjoyment of opportunities, benefits, or privileges. A measure or practice of general application is discrimination against
women if it fails to provide for mechanisms to offset or address sex or gender-based disadvantages or limitations of women,
as a result of which women are denied or restricted in the recognition and protection of their rights and in their access to and
enjoyment of opportunities, benefits, or privileges; or women, more than men, are shown to have suffered the greater adverse
effects of those measures or practices. Provided, finally, that discrimination compounded by or intersecting with other
grounds, status, or condition, such as ethnicity, age, poverty, or religion shall be considered discrimination against women
under the RA 9710 or the Magna Carta of Women. (Section 4, Chapter II, RA 9710)
15. What are the prohibitions imposed upon employers concerning women and their marital status?
It shall be unlawful for an employer to:
a. Require as a condition of employment or continuation of employment that a woman employee shall not get married, or
b. Stipulate expressly or tacitly that upon getting married a woman employee shall be deemed resigned or separated or
c. Actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.
[Art. 134 of the Labor Code; Duncan Assoc of Detailman – PTGWO v. Glaxo Wellcome, G.R. No. 162994 (2004)]
18. Is the prohibition against personal or marital relationships with employees of competitor companies reasonable?
The prohibition against personal or marital relationships with employees of competitor companies is reasonable if it is proven
that relationships of that nature might compromise the interests of the company. Thus, a company has a right to protect its
interests against the possibility that a competitor company will gain access to its secrets and procedures. (Duncan Assoc vs.
Glaxo Wellcome, G.R. No. 162994, September 17, 2004)
19. Distinguish disability from handicap.
Disability
Handicap
Shall mean:
a. Physical or mental impairment that substantially limits one or more
psychological, physiological or anatomical function of an individual or
activities of such individual;
b. A record of such an impairment; or
c. Being regarded as having such an impairment.
Refers to a disadvantage for a given
individual resulting from an impairment or a
disability, that limits or prevents the
functions or activity that is considered
normal given the age and sex of the
individual.
(Section 4, Chapter 1, Title One, RA 7277)
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20. Who qualifies as a handicapped worker, and under what circumstances may handicapped workers be employed?
Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury.
Handicapped workers may be employed when:
a. Their employment is necessary to prevent curtailment of employment opportunities; and
b. It does not create unfair competition in labor costs or impair or lower working standards. (Article 78-79 Labor Code of the
Philippines)
21. Are solo parents entitled to additional leave days?
Yes. In addition to leave privileges under existing laws, a forfeitable and noncumulative parental leave of not more than seven
(7) working days with pay every year shall be granted to any solo parent employee, regardless of employment status, who
has rendered service of at least six (6) months: Provided, That the parental leave benefit may be availed of by the solo parent
employees in the government and the private sector. (Sec. 7, RA 8972, as amended by RA 11861)
III. EMPLOYMENT PROPER
22. What does the doctrine of management prerogative entail?
The doctrine of management prerogative asserts that every employer possesses an inherent right to regulate, at their own
discretion and judgment, all aspects of employment. This includes matters such as hiring, work assignments, working
methods, the time, place, and manner of work, work supervision, employee transfers, lay-offs, disciplinary actions, dismissals,
and employee recalls. This right must be respected and upheld as long as it is exercised in good faith, with the genuine intent
to promote the employer's interests and not with the purpose of undermining or evading the rights of employees protected
under special laws or valid agreements. (Peckson v. Robinsons Supermarket, G.R. No. 198534, July 3, 2013; Coca-Cola Bottlers, PHL,
Inc., v. Kapisanan ng Malayang Manggagawa sa Coca-Cola-FFW, G.R. No. 148205, February 28, 2005)
23. Does transferring an employee to another office with similar duties and responsibility automatically constitute
constructive dismissal?
No. Transferring employees, to the extent that it is done fairly and in good faith, is a valid exercise of management prerogative
and will not sustain a charge of constructive dismissal. When his transfer is not unreasonable, nor inconvenient, nor
prejudicial to him, and it does not involve a demotion in rank or a diminution of his salaries, benefits, and other privileges, the
employee may not complain that it amounts to a constructive dismissal. (Manalo v. Ateneo De Naga, G.R. No. 185058, November
9, 2015)
24. Who are not covered by the provisions of the Labor Code on working conditions and rest periods?
1. Government employees;
2. Managerial employees;
3. Field personnel;
4. Members of the family of the employer who are dependent on him for support;
5. Domestic helpers;
6. Persons in the Personal Service of Another; and
7. Workers who are paid by results as determined by the Secretary of Labor in appropriate regulations. (Art. 82, Labor Code)
25. What law governs the benefits of family drivers?
The Civil Code shall govern the rights of family drivers. Due to the express repeal of the Labor Code provisions pertaining to
househelpers, which includes family drivers, by the Kasambahay Law; and the non-applicability of the Kasambahay Law to
family drivers, there is a need to revert back to the Civil Code provisions. (Atienza vs. Saluta, G.R. No. 233413, June 17, 2019)
26. Does an employer have a right to change employees’ working hours?
Yes. The employer's right to change working hours is a matter of their autonomy and prerogative, exercised at their own
discretion and sound judgment, to regulate and manage the time when employees should commence their work and fulfill
their respective duties. (Philippine Airlines, Inc., v. NLRC, G.R. No. 115785, August 4, 2000 and Sime Darby Pilipinas, Inc., v. NLRC,
G.R. No. 199205, April 15, 1998)
27. What are considered hours eligible for compensation?
a. All periods in which an employee is obligated to be on duty, at the employer's premises, or at a designated workplace.
b. All periods in which an employee is allowed or given permission to work.
c. Short rest periods taken during working hours will be considered as hours worked and are compensable. (Article 84, Labor
Code of the Philippines)
28. What are the various overtime rates?
Overtime during
Regular Workdays
Rate
Regular basic wage + 25% of the basic hourly rate
Regular/Legal Holiday
Holiday wage rate (200%) + 30% of hourly regularly or legal holiday rate
Rest day or Special Holidays
Rest Days/Special Holiday wage rate (130%) + 30% of hourly rest day or
special holiday rate
Scheduled Rest Day which is also
Special Holiday
Scheduled Rest Day which is also
Regular Holiday
Holiday wage rate (150%) + 30% holiday hourly rate
Holiday wage rate (26 0%) + 30% of holiday hourly rate
(Art. 87, 93, 94, Labor Code, as amended)
29. Who are the covered employees of service charges collected? What is the distribution process for service charges?
Covered employees pertain to all employees, with the exception of managerial employees, who are directly employed by the
covered establishment. This includes employees of all positions, designations, or employment statuses, and it does not
matter how their wages are paid. All service charges collected by hotels, restaurants, and similar establishments must be
distributed entirely and equally among the covered workers, excluding managerial employees. This means that rank-and-file
employees of hotels and restaurants are now entitled to receive the service charge in its entirety. (IRR of RA 11360, Sec. 2(a)
and R.A. No. 11360, Sec. 1, August 7, 2019)
30.
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30. What are the different types of legally mandated pay?
Night
shift
differential
pay
Every employee shall be paid a night shift differential of not less than ten (10%) of his regular wage for
each hour of work performed between ten o’clock in the evening (10:00pm) and six o’clock in the morning
(6:00am).
Overtime pay
When an employee is made or permitted to work beyond eight (8) hours a day, he shall be paid an
additional compensation equivalent to his regular wage plus at least twenty-five (25%) thereof.
Premium pay
Refers to extra compensation mandated by law for work performed during 8 hours on non-working days,
such as rest days and holidays.
Rest day pay
Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an
additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be
entitled to such additional compensation for work performed on Sunday only when it is his established
rest day.
Special
holiday pay
Work performed on any special holiday shall be paid an additional compensation of at least thirty percent
(30%) of the regular wage of the employee.
Regular
holiday pay
Every worker shall be paid his regular daily wage during regular holidays, except in retail and service
establishments regularly employing less than ten (10) workers. The employer may require an employee
to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular
rate. It is not just meant to prevent diminution of the monthly income of the workers on account of work
interruptions, but is also intended to enable the worker to participate in national celebrations held during
days with great historical and cultural significance.
13th
pay
The 13th-month pay mandated by Presidential Decree (P.D.) No. 851 represents an additional income
based on wage but not part of the wage. It is equivalent to one-twelfth (1/12) of the total basic salary
earned by an employee within a calendar year. All rank-and-file employees, regardless of their
designation or employment status and irrespective of the method by which their wages are paid, are
entitled to this benefit, provided that they have worked for at least one month during the calendar year.
If the employee worked for only a portion of the year, the 13th-month pay is computed pro rata.
month
(Arts. 86, 87, 93, 94, Labor Code; Nippon Paint Phils, Inc. vs. Nippon Paint Philippines Employees Association, G.R. No. 229396, June 30,
2021; Central Azucarera de Tarlac v. Central Azucarera de Tarlac Labor Union-NLU, G.R. No. 188949, 26 July 2010)
31. What are the rights of employees under RA 11058 or “An Act Strengthening Compliance With Occupational Safety
and Health Standards”?
Right to
Know
All workers shall be appropriately informed by the employer about all types of hazards in the workplace,
provided access to training and education on chemical safety, and to orientation on the data sheet of
chemical safety, electrical safety, mechanical safety, and ergonomical safety.
Right to
Refuse
Unsafe Work
The worker has the right of refusal to work without threat or reprisal from the employer if, as determined
by the DOLE, an imminent danger situation exists in the workplace that may result in illness, injury or
death, and corrective actions to eliminate the danger have not been undertaken by the employer.
Right to
Report
Accidents
Workers and their representatives shall have the right to report accidents, dangerous occurrences, and
hazards to the employer, to the DOLE and to other concerned government agencies exercising
jurisdiction as the competent authority in the specific industry or economic activity.
Right to
Personal
Protective
Equipment
(PPE)
Every employer, contractor, or subcontractor, if any, shall provide his workers, free of charge, protective
equipment for their eyes, face, hands and feet, and lifeline, safety belt or harness, gas or dust respirators
or masks, and protective shields whenever necessary by reason of the hazardous work process or
environment, chemical, radiological, mechanical and other irritants or hazards capable of causing injury
or impairment in the function of any part of the body through absorption, inhalation or physical contact.
(Sections 5-8, RA 11058)
26. What is the difference between facilities and supplements?
Facilities
Supplements
These are items of expense necessary for the laborer‘s and These constitute extra remuneration or special privileges
his family’s existence and subsistence so that by express or benefits given to or received by the laborers over and
provision of law they form part of the wage and when above their ordinary earnings or wages.
furnished by the employer are deductible therefrom.
(SLL International Cables Specialist vs. NLRC, G.R. No. 172161, 2011)
27. What is the concept of Non-Diminution of Benefits and its requisites?
The employers are prohibited from eliminating or in any way diminishing supplements, or other employee benefits being
enjoyed by the employees. There is diminution of benefits when the following requisites are present: (1) the grant or benefit
is founded on a policy or has ripened into a practice over a long period of time; (2) the practice is consistent and deliberate;
(3) the practice is not due to error in the construction or application of a doubtful or difficult question of law; and (4) the
diminution or discontinuance is done unilaterally by the employer. (Art. 100, Labor Code and Vergara vs. Coca Cola bottler G.R. No.
176985, April 1, 2013)
28. What is the Prohibition on Deduction of Wages, and its exceptions?
No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees,
except:
a. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer
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b.
c.
for the amount paid by him as premium on the insurance.
For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or
authorized in writing by the individual worker concerned; and
In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. (Art.
113, Labor Code of the Philippines)
29. What is the concept of Non-Interference in the Disposal of Wages?
No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any
manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from any person,
or otherwise make use of any store or services of such employer or any other person. (Art. 112, Labor Code of the Philippines)
30. What is the concept of Wage Distortion?
A situation where an increase in wage results in the elimination or severe contraction of intentional quantitative differences
in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length of service or other logical bases of differentiation. (Art. 124, Labor
Code of the Philippines)
31. Who are exempted from the coverage of the Minimum Wage Law?
The following are not covered by the minimum wage law:
a. Household or domestic helpers, including family drivers and workers in the personal services of another; (Note:
Kasambahays are entitled to minimum wage under R.A. 10361)
b. Workers and employees in retail/service establishments regularly employing not more than 10 workers; and
c. Employees of “Barangay Micro Business Enterprises”. (Sec. 8, R.A. 9178)
31. What is Service Incentive Leave?
Service Incentive Leave is an entitlement of a five-day leave with pay granted to every employee who has rendered at least
one year of service. (Article 95, Labor Code of the Philippines)
32. Are kasambahays entitled to Service Incentive Leave?
Yes. The kasambahays are entitled to Service Incentive Leaves. A “kasambahay” who has rendered at least one (1) year of
service shall be entitled to an annual service incentive leave of at least five (5) days with pay. Any unused portion of said
annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves shall not be convertible to cash.
(Section 7, IRR of RA 10361)
33. What are the maternity leave benefits under RA 11210?
All covered female workers in the public and private sector including those in the informal sector, regardless of civil status or
the legitimacy of her child, shall be granted one hundred five (105) days maternity leave with full pay and an option to extend
for another thirty (30) days without pay. Another fifteen (15) days is granted to workers qualified under the Solo Parents
Welfare Act. In case of pregnancy miscarriage or termination of pregnancy, sixty (60) days maternity leave with full pay shall
be granted to the female worker. (Section 3, RA 11210 or An Act Increasing the Maternity Leave Period)
34. Who may avail of paternity leave benefit and when can he avail himself of this benefit?
Every married male employee in the private and public sectors may avail of paternity leave benefit. This benefit shall apply
to the first four deliveries or miscarriage of the employee’s lawful wife with whom he is cohabiting. The paternity benefits may
be enjoyed by the qualified employee before, during or after the delivery by his wife; provided, that the total number of days
shall not exceed seven (7) working days for each delivery. Provided, further, that this benefit shall be availed of not later than
sixty (60) days after the date of said delivery. The male employee applying for paternity leave shall notify his employer of the
pregnancy of his legitimate spouse and the expected date of such delivery. (Section 2, RA 8187 and Section 2 & Section 5, Rules
Implementing Paternity Leave Act)
35. What are the leave benefits under RA 9710 Magna Carta of Women and RA 9262 Anti-VAWC?
RA 9710
RA 9262
Two (2) months with full pay based on gross monthly Ten (10) days with full pay. The said leave shall be extended
compensation, for women employees who undergo when the need arises, as specified in the protection order
surgery caused by gynecological disorders, provided that issued by the barangay or the court. The leave benefit shall
they have rendered continuous aggregate employment cover the days that the woman employee has to attend to
service of at least six (6) months for the last twelve (12) medical and legal concerns.
months.
36. What is child work and the rules regarding the working hours of a working child, as well as the prohibition on night
work?
Child work is any work allowed or permitted to be performed by a child under certain conditions. A child below 15 years old
can be permitted to work if he/she is under supervision by family senior/ parents provided that the child works directly under
the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed; the child’s
employment does not endanger his/her life, safety, health, and morals, or impairs his/her normal development; the parent or
legal guardian shall provide the said child with the prescribed primary and/or secondary education.
Below 15
15 and below 18
The hours of work shall not be more than eight (8) hours a Not be more than eight (8) hours a day, and in no case
day, and in no case beyond 20 hours a week.
beyond 40 hours a week (RA 9231).
They are prohibited to work between eight o’clock in the Ten o’clock in the evening (10:00pm) and six o’clock in
evening (8:00pm) and six o’clock in the morning (6:00am) of the morning (6:00am) of the following day.
the following day.
(RA 9231 & DO 65-04)
37. What is the definition of a domestic worker?
Domestic worker or “Kasambahay” refers to any person engaged in domestic work within an employment relationship such
as, but not limited to, the following: general househelp, nursemaid or “yaya”, cook, gardener, or laundry person, but shall
exclude any person who performs domestic work only occasionally or sporadically and not on an occupational basis. The
term shall not include children who are under foster family arrangement, and are provided access to education and given an
allowance incidental to education, i.e. “baon”, transportation, school projects and school activities. (Sec 4(d), RA 10361)
6
38. Are domestic workers entitled to social security benefits?
Yes, a domestic worker who has rendered at least one (1) month of service shall be covered by the Social Security System
(SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and
shall be entitled to all the benefits in accordance with the pertinent provisions provided by law. (Sec. 9, Rule IV, RA 10361)
39. Who are the persons not covered by the Domestic Workers Act (RA 10361)?
a. Service providers;
b. Family providers;
c. Children under foster family arraignment; and
d. Any other person who performs work occasionally or sporadically and not on an occupational and regular basis. (Sec. 2,
Rule I, RA 10361)
40. Distinguish apprentices and learners
Apprenticeship
Learnership
Practical Training
Practical training on-the -job.
Practical training on-the -job.
Training Agreement
Apprenticeship agreement.
Learnership agreement.
Occupation
Apprenticeable occupations or any trade,
form of employment or occupation approved
for apprenticeship by the DOLE Secretary.
Learnable occupations consisting of semiskilled and other industrial occupations w/c are
non-app-renticeable.
Duration of Training
More than 3 months, but not over 6 months.
Period not exceeding 3 months.
(Art. 58-73, Labor Code of the Philippines)
41. What are the acts that constitute gender-based sexual harassment in the workplace under RA 11313 or the Safe
Spaces Act?
a. An act or series of acts involving any unwelcome sexual advances, requests or demand for sexual favors or any act of
sexual nature, whether done verbally, physically or through the use of technology such as text messaging or electronic
mail or through any other forms of information and communication systems, that has or could have a detrimental effect
on the conditions of an individual’s employment or education, job performance or opportunities;
b. A conduct of sexual nature and other conduct-based on sex affecting the dignity of a person, which is unwelcome,
unreasonable, and offensive to the recipient, whether done verbally, physically or through the use of technology such
as text messaging or electronic mail or through any other forms of information and communication systems;
c. A conduct that is unwelcome and pervasive and creates an intimidating, hostile or humiliating environment for the
recipient: Provided, That the crime of gender-based sexual harassment may also be committed between peers and
those committed to a superior officer by a subordinate, or to a teacher by a student, or to a trainer by a trainee. (Sec. 16,
RA 11313)
43.
Who are excluded from the compulsory coverage of SSS?
a. Services where there is no employer-employee relationship in accordance with existing labor laws, rules, regulations,
and jurisprudence;
b. Services performed in the employ of the Philippine Government or instrumentality or agency thereof;
c. Services performed in the employ of a foreign government or international organization, or their wholly-owned
instrumentality; and
d. Such other services performed by temporary and other employees which may be excluded by regulation of the
Commission. (Sec. 8 (j), RA 11199)
44.
Who are considered dependents under the GSIS Law?
Dependents shall be the following:
a. The legitimate spouse dependent for support upon the member or pensioner;
b. The legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully
employed, not over the age of majority, or is over the age of majority but incapacitated and incapable of self-support due
to a mental or physical defect acquired prior to age of majority; and
c. The parents dependent upon the member for support. (Section 2(f), RA 8291)
45.
What are the benefits under the SSS Law and GSIS Law?
Benefits under the SSS Law
Benefits under the GSIS Law
Retirement Benefits
Retirement Benefits
Funeral Benefits
Funeral Benefits
Permanent Disability Benefits
Permanent Disability Benefits
Death Benefits
Separation Benefits
Sickness Benefits
Survivorship Benefits
Maternity Leave Benefits
Temporary Disability Benefits
Unemployment Insurance or Involuntary Separation Benefits
Compulsory Life Insurance Benefits
(Section 12B to 14B, RA 11199 or the Social Security System Act of 2018; RA 8291 - GSIS Act of 1997)
7
46.
What is a seaman/seafarer?
A seaman is any person employed in a vessel engaged in maritime navigation. In order to be considered a seaman or
seafarer, one would have to be, at the very least, employed in a vessel engaged in maritime navigation. Thus, it is clear that
those employed in non-mobile vessels or fixed structures, even if the said vessels/structures are located offshore or in the
middle of the sea, cannot be considered as seafarers under the law. Fishermen, navigating exclusively in inland waters, are
excluded in the definition. An overseas employee, in order to be considered as a "seafarer," must not only perform tasks
concerning manning marine vessels or marine navigation, but they must also perform such functions onboard a vessel
engaged in maritime navigation or a mobile offshore rig or drilling unit in the high seas. (V People Manpower Phils., Inc. vs.
Buquid, G.R. No. 222311. February 10, 2021, Hernando, J.)
47.
Can a seafarer be considered a regular employee?
No. Seafarers are considered contractual employees. They cannot be considered as regular employees under Article 280
of the Labor Code. Their employment is governed by the contracts they sign every time they are rehired and their employment
is terminated when the contract expires. Their employment is contractually fixed for a certain period of time. They fall under
the exception of Article 280 whose employment has been fixed for a specific project or undertaking the completion or
termination of which has been determined at the time of engagement of the employee or where the work or services to be
performed is seasonal in nature and the employment is for the duration of the season. (Ravago v. ESSO Eastern Marine, LTD,
G.R. NO. 158324. March 14, 2005)
48.
When is a disability compensable under the POEA-Standard Employment Contract?
For an occupational disease and the resulting disability or death to be compensable, all of the following conditions must be
satisfied:
1. The seafarer's work must involve the risks described herein:
2. The disease was contracted as a result of the seafarer's exposure to the described risks;
3. The disease was contracted within a period of exposure and under such other factors necessary to contract it; and
4. There was no notorious negligence on the part of the seafarer. (EMS vs. Bauzon, G.R. No. 205385, April 26, 2021)
49.
Must traumatic head injury be due to physical damage in order to be compensable?
No. There is nothing in the Standard Terms and Conditions governing the Employment of Filipino Seafarer On-Board OceanGoing Vessels, particularly Section 30 thereof, that specifically states that traumatic head injury contemplates accidents
involving physical or head contracts. It is patent that “traumatic head injury” does not only involve physical damage but mental
or emotional damage as well. Thus, work-related mental illnesses resulting from a traumatic head injury, even if not due to
physical damage, are compensable under the conditions set forth in law. (Darroca, Jr. vs. Century Maritime Agencies, Inc., G.R.
No. 234392. November 10, 2021, Hernando, J.)
50.
If there are conflicting findings of a personal doctor and a company doctor, whose findings shall prevail?
The company doctor. If a doctor appointed by the seafarer disagrees with the assessment, a third doctor may be agreed
jointly between the employer and the seafarer, whose decision shall be final and binding on both parties. The referral to a
third doctor has been recognized by this Court to be a mandatory procedure. Failure to comply therewith is considered a
breach of the POEA-SEC, and renders the assessment by the company-designated physician binding on the parties. (Idul vs.
Alster Int'l Shipping Services, Inc., G.R. No. 209907. June 23, 2021, Hernando, J.)
51.
Who cannot join a labor organization?
a. Supervisors cannot join a rank-and-file union, co-mingling is prohibited;
b. Employees-members of a cooperative cannot join a labor organization. An employee cannot bargain with himself or
his co-owner;
c. Confidential employees performing managerial functions;
d. Confidential employees who have access to confidential matters of persons who exercise managerial functions in the
field of labor relations;
e. In the government sector, the following cannot form or join a rank and file union:
i.
Members of the AFP, PNP, BJMP, BFP; and
ii.
High level employees exercising managerial function;
f. Alien employees, unless their country extends the right to self-organization and join or assist labor unions for purposes
of collective bargaining to Filipino workers; and
g. Managerial employees. (NATU vs. Torres, G.R. No. 93468, December 29, 1994; Executive Order 180; D.O. 40-03; Article 251,
Labor Code)
52.
What are the three categories of employees recognized under Section 255 of the Labor Code and can they organize
and form unions?
Managerial Employees
Supervisory Employees
Rank-and-file Employees
Managerial employee is one who is
vested
with
the
powers
or
prerogatives to lay down and execute
management policies and/or to hire,
transfer, suspend, lay-off, recall,
discharge, assign or discipline
employees.
Supervisory employees are those who, in
the interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely
routinary or clerical in nature but requires
the use of independent judgment.
All employees not falling within
the definition of a managerial or
supervisory
employees
are
considered
rank-and-file
employees.
Managerial employees are not eligible
to join, assist or form any labor
organization.
Supervisory employees shall not be eligible
for membership in a labor organization of
the rank-and-file employees but may join,
assist or form separate labor organizations
of their own.
Rank-and-file employees may
join, assist or form any labor
organization.
(Art. 219 and Art. 255, Labor Code of the Philippines)
53.
Who are qualified to vote in the certification election?
All rank and file employees, whether probationary or permanent, who are members of the appropriate bargaining unit three
(3) months prior to the filing of the petition/request shall be eligible to vote. An employee who has been dismissed from work
8
but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order
for the conduct of a certification election shall be considered a qualified voter, unless his/her dismissal was declared valid in
a final judgment at the time of the conduct of the certification election. Votes of supervisory employees shall be excluded.
(Sec. 10, D.O. No. 40-I-15; National Union of Workers in Hotel-Manila Pavilion v. Secretary of Labor and Employment, G.R. No. 181531,
2009)
54.
What is the double majority rule in certification election?
For there to be a valid certification election, majority of the bargaining unit must have voted and the winning union must have
garnered majority of the valid votes cast. (Sec. 10, D.O. No. 40-I-15; National Union of Workers in Hotel-Manila Pavilion v. Secretary
of Labor and Employment, G.R. No. 181531, 2009)
55.
What is the concept of check-off?
A check-off is a process or device whereby the employer, on agreement with the Union, recognized as the proper bargaining
representative, or on prior authorization from its employees, deducts union dues or agency fees from the latter's wages and
remits them directly to the union. (ABS-CBN Supervisors Employees Union Members v ABS-CBN Broadcasting Corp., G.R. No.
106518, March 11, 1999)
56.
56.
What is the meaning of duty to bargain collectively?
The duty to bargain collectively means the performance of a mutual obligation to meet and convene promptly and
expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other
terms and conditions of employment including proposals for adjusting any grievances or questions arising under such
agreement and executing a contract incorporating such agreements if requested by either party but such duty does not
compel any party to agree to a proposal or to make any concession. (Sec. 252, Labor Code of the Philippines)
What are the unfair labor practices on the part of the employer and on the part of the labor union?
Employer
a.
b.
c.
d.
e.
f.
g.
h.
i.
Restrain or Coercion - To interfere with, restrain or
coerce employees in the exercise of their right to selforganization;
Yellow dog contract - To require as a condition of
employment that a person or an employee shall not join
a labor organization or shall withdraw from one to which
he belongs;
Contracting out services - To contract out services or
functions being performed by union members when such
will interfere with, restrain or coerce employees in the
exercise of their rights to self-organization;
Company or captive unionism - To initiate, dominate,
assist or otherwise interfere with the formation or
administration of any labor organization, including, the
giving of financial or other support to it, or its
organizations, or supporters;
Discrimination - To discriminate in regard to wages,
hours of work, and other terms and conditions of
employment in order to encourage or discourage
membership in any labor organization;
Dismissal for giving testimony - To dismiss, discharge,
or otherwise prejudice or discriminate against an
employee for having given or being about to give
testimony under this Code;
Refusal to bargain - To violate the duty to bargain
collectively as prescribed by this Code;
Paying fees - To pay negotiation or attorney's fees to the
union or its officers or agents as part of the settlement of
any issue in collective bargaining or any other dispute; or
Violating CBA - To violate a collective bargaining
agreement.
Labor Union
a.
b.
c.
d.
e.
f.
Restrain or Coercion - To restrain or coerce
employees in the exercise of their rights to selforganization. However, a labor organization shall
have the right to prescribe its own rules with
respect to the acquisition or retention of
membership;
Discrimination - To cause or attempt to cause an
employer to discriminate against an employee,
including discrimination against an employee with
respect to whom membership in such
organization has been denied or to terminate an
employee on any ground other than the usual
terms and conditions under which membership or
continuation of membership is made available to
other members;
Refusal to bargain - To violate the duty, or refuse
to bargain collectively with the employer, provided
it is the representative of the employees;
Exaction - To cause or attempt to cause an
employer to pay or deliver or agree to pay or
deliver any money or other things of value, in the
nature of an exaction, for services which are not
performed or not to be performed, including the
demand for fee for union negotiations;
Attorney’s fees - To ask for or accept
negotiations of attorney's fees from employers as
part of the settlement of any issue in collective
bargaining or any other dispute; or
Violating CBA - To violate a collective bargaining
agreement.
(Art. 259 & 260, Labor Code of the Philippines)
57.
57.
Can a criminal case for unfair labor practice be filed without a civil case for the same?
No. No criminal prosecution for unfair labor practice may be instituted without a final judgment finding that an unfair labor
practice was committed, having been first obtained in the civil case before the Labor Arbiter. (Art. 258, Labor Code)
What are the categories of an illegal strike?
a. When it is contrary to a specific prohibition of law, such as strike by employees performing governmental functions; or
b. When it violates a specific requirement of law [such as Article 263 of the Labor Code on the requisites of a valid strike];
or
c. When it is declared for an unlawful purpose, such as inducing the employer to commit an unfair labor practice against
non-union employees; or
d. When it employs unlawful means in the pursuit of its objective, such as a widespread terrorism of non-strikers [for
example, prohibited acts under Art. 264(e) of the Labor Code]; or
e. When it is declared in violation of an existing injunction[, such as injunction, prohibition, or order issued by the DOLE
Secretary and the NLRC under Art. 263 of the Labor Code]; or
f. When it is contrary to an existing agreement, such as a no-strike clause or conclusive arbitration clause. (National Union
of Workers in the Hotel, Restaurant and Allied Industries Dusit Hotel Nikko Chapter v. CA, G.R. Nos. 163942 and 166295, 11
November 2008.)
9
58.
When can the Secretary of Labor and employment assume jurisdiction in a labor dispute?
When there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national
interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same
to the Commission for compulsory arbitration. In this case, CTC is under an industry indispensable to the national interest
being a transportation company. (Art. 278, Labor Code of the Philippines)
59.
What is a telecommuting program?
The term "telecommuting" refers to a work from an alternative workplace with the use of telecommunications and/or
computer technologies. An employer in private sector may offer a telecommuting program to its employees on a voluntary
bases, and upon such terms and conditions as they may mutually agree upon: Provided, That such terms and conditions
shall not be less than the minimum labor standards set by law, and shall include compensable work hours, minimum number
of work hours, overtime, rest days, and entitlement to leave benefits. In all cases, the employer shall provide the
telecommuting employee with relevant written information in order to adequately apprise the individual of the terms and
conditions of the telecommuting program, and the responsibilities of employee. (Sections 3 & 4, RA 11165 or the Telecommuting
Act)
60.
What are the procedural requirements for a valid strike and lockout?
Requisites of a Valid Strike
Requisites for a Valid Lockout
a. It must be based on a valid and factual ground.
a. It must be based on a valid and factual ground.
b. A notice of strike must be filed with the NCMB-DOLE.
b. A notice of strike must be filed with the NCMB-DOLE.
c. A notice must be served to the NCMB-DOLE at least
twenty-four (24) hours prior to the taking of the strike vote
by secret balloting, informing said office of the decision to
conduct a strike vote, and the date, place, and time
thereof.
c. A notice must be served to the NCMB-DOLE at least
twenty-four (24) hours prior to the taking of the lockout vote
by secret balloting, informing said office of the decision to
conduct a lockout vote, and the date, place, and time
thereof.
d. A strike vote must be taken where a majority of the
members of the union obtained by secret ballot in a
meeting called for the purpose, must approve it.
d. A lockout vote must be taken where a majority of the
members of the Board of Directors of the corporation or
association or of the partners in a partnership obtained by
secret ballot in a meeting called for the purpose, must
approve it.
e. A strike vote report should be submitted to the NCMBDOLE at least seven (7) days before the intended date of
the strike.
e. A lockout vote report should be submitted to the NCMBDOLE at least seven (7) days before the intended date of
the lockout.
f. Except in cases of union-busting, the cooling-off period
of 15 days, in case of unfair labor practices of the
employer, or 30 days, in case of collective bargaining
deadlock, should be fully observed.
f. The cooling-off period of 15 days, in case of unfair labor
practices of the labor organization, or 30 days, in case of
collective bargaining deadlock, should be fully observed.
g. The 7-day waiting period/strike ban reckoned after the
submission of the strike vote report to the NCMB-DOLE
should also be fully observed in all cases.
g. The 7-day waiting period/lockout ban reckoned after the
submission of the lockout vote report to the NCMB-DOLE
should also be fully observed in all cases.
All the foregoing requisites, although procedural in nature,
are mandatory and failure of the union to comply with any
of them would render the strike illegal.
(Chan, Last Minutes Pre-Week Notes for the 2019 Bar Exam in Labor Law)
61.
What is the fair treatment rule on telecommuting employees?
The employer shall ensure that the telecommuting employee are given the same treatment as that of comparable employees
are given the same treatment as that of comparable employees working at the time employer's premises. All telecommuting
employee shall:
a. Receive a rate of pay, including overtime and night shift differential, and other similar monetary benefits not lower
than those provided in applicable laws, and collective bargaining agreements.
b. Have the right to rest periods, regular holidays, and special nonworking days.
c. Have the same or equivalent workload and performance standards as those of comparable workerat the employer's
premises.
d. Have the same access to training and career development opportunities as those of comparable workers at the
employer's premises, and be subject to the same appraisal policies covering these workers.
e. Receive appropriate training on the technical equipment at their disposal, and the characteristics and conditions of
telecommuting.
f. Have the same collectible rights as the workers at the employer's premises, and shall not be barred from
communicating with workers' representatives.
The employer shall also ensure that measures are taken to prevent the telecommuting employee from being isolated from
the rest of the working community in the company by giving the telecommuting employee the opportunity to meet with
colleagues on a regular basis, and opportunity to meet with colleagues on a regular basis, and allowing access to company
information. (Section 5, RA 11165 or the Telecommuting Act)
10
IV. POST-EMPLOYMENT
62.
What are the accepted tests to determine the existence of an employer-employee relationship?
Four-Fold test
1.
2.
3.
4.
Economic reality test
the selection and engagement
of the employee;
the payment of wages;
the power of dismissal;
the employer’s power to
control
the
employee’s
conduct.
The economic realities prevailing within the activity or between the parties are
examined, taking into consideration the totality of circumstances surrounding the
true nature of the relationship between the parties. This is especially appropriate
when there is no written agreement or contract on which to base the relationship.
In our jurisdiction, the benchmark of economic reality in analyzing possible
employment relationships for purposes of applying the Labor Code ought to be
the economic dependence of the worker on his employer.
(SRL International Manpower Agency vs. Yarza, Jr., G.R. No. 207828. February 14, 2022, Hernando, J.)
63.
Does the four-fold test apply to determine the existence of employer-employee relationship in the government for
an employee who was hired under a contract of service?
While a private employer should apply the four-fold test in determining employer-employee relationship as it is strictly bound
by the labor code, a government employer or GOCC, must, apart from applying the four-fold test, comply with the rules of
the CSC in determining the existence of employer-employee relationship. (CSC v. Annang, G.R. No. 225895, Sept. 28, 2022, J.
Hernando)
64.
May the officers or religious ministers who are ecclesiastics commissioned, ordained, and appointed by AAA, an
international evangelical Christian Church and social welfare organization, be considered as ordinary employees
making their coverage under the SSS law mandatory?
Yes. An employer-employee relationship may exist between a religious organization and its ministers on the basis of the
institution's bylaws and other surrounding circumstances in relation to the four-fold test. It is the existence of the employeremployee relationship that determines the status and triggers mandatory coverage under the SSS law. The term "employer"
as used in the Social Security Law is "sufficiently comprehensive enough as to include religious and charitable institutions
or entities not organized for profit" particularly as they are not included in the list of exceptions expressly stated under the
same law. [The Salvation Army vs. Social Security System, G.R. No. 230095, September 15, 2021 (Landmark Case Q&As)]
65.
What are the classifications/types of employees?
66.
Regular employees
The two (2) types of regular employees are: (a) those who engaged to perform activities which
are usually necessary or desirable in the usual business or trade of the employer; and (b) those
who have rendered at least one year of service, whether continuous or broken, with respect to
the activity in which they are employed.
Casual employees
Those who are not regular, project, or seasonal employees.
Probationary
employees
Where the employee upon his engagement is made to undergo a trial period during which the
employer determines his fitness to qualify for regular employment based on reasonable
standards made known to him at the time of engagement.
Project employees
Those whose employment has been fixed for a specific project or undertaking, the completion or
termination of which has been determined at the time of the engagement of the employee.
Seasonal
employees
Those who work or perform services which are seasonal in nature and the employment is for the
duration of the season.
Fixed-term
employees
Those whose contracts specifies that the services of the employee shall be engaged only for a
definite period, the termination of which occurs upon the expiration of said period irrespective of
the existence of just cause and regardless of the activity the employee is called upon to perform.
Floating status
The period of time when an employee is in between assignments or when they are made to wait
after being relieved from a previous post until they are transferred to a new one. However, the
employee must not remain in such status for a period of more than six (6) months; otherwise, he
is deemed terminated.
AAAs were allowed to work for BBB as fitters/welders. They were also performing functions that are necessary in
the usual trade of the business. They worked from May 2006 until they were dismissed from employment on May
1, 2008. Are AAAs considered regular employees of BBB?
Yes. The regular employment status of a person is defined and prescribed by law and not by what the parties say it should
be. First, the records of the case are bereft of evidence that AAAs were duly informed of the nature and status of their
engagement with BBB. Notably, in the absence of a clear agreement or contract, whether written or otherwise, which would
clearly show that AAAs were properly informed of their employment status with BBB, AAAs enjoy the presumption of regular
employment in their favor. Second, AAAs were performing activities which are usually necessary or desirable in the business
or trade of BBB. Third, irrespective of whether petitioners' duties or functions are usually necessary and desirable in the
usual trade or business of BBB, the fact alone that AAAs were allowed to work for it for a period of more than one (1) year,
albeit intermittently, was indicative of the regularity and necessity of welding activities to its business. (Parayday vs. Shogun
Shipping Co., Inc., G.R. No. 204555. July 6, 2020, Hernando, J.)
67.
Is AAA, a hotel waiter, who was allowed to work in the hotel on several occasions for several years, a regular
employee of the company who owns the hotel, considering that the company hired him as an “extra waiter” and
that the company asserts that he was engaged under a fixed-term employment agreement?
Yes. Applying Article 295 of the Labor Code, first, AAA is performing activities which are usually necessary or desirable in
the business or trade of the company. Being part of the hotel and food industry, the company, as a service-oriented business
enterprise, depends largely on its manpower complement to carry out or perform services relating to food and beverage
11
operations, event planning and hospitality. As such, it is essential, if at all necessary, that it retains in its employ waiting
staff, such as AAA, specifically tasked to attend to its guests at its various dining establishments. Second, the fact alone
that AAA was allowed to work for the company on several occasions for several years is indicative of the regularity and
necessity of his functions to its business. (Regala vs. Manila Hotel Corporation, G.R. No. 204684. October 5, 2020, Hernando, J.)
68.
What are the principles regarding the nature of employment for workers in the construction industry?
a. A worker is presumed a regular employee, unless the employer establishes that (1) the employee was hired under a
contract specifying that the employment will last only for a specific undertaking, the termination of which is determined
at the time of engagement; (2) there was indeed a project undertaken; and (3) the parties bargained on equal terms,
with no vices of consent.
b. If considered a regular employee at the outset, security of tenure already attaches, and the subsequent execution of
project employment contracts cannot undermine such security, but will simply be considered a continuation in the
regular engagement of such employee.
c. Even if initially engaged as a project employee, such nature of employment may ripen into regular status if (1) there
is a continuous rehiring of project employees even after cessation of a project; and (2) the tasks performed by the
alleged "project employee” are vital, necessary and indispensable to the usual business or trade of the employer.
Conversely, project-based employment will not ripen into regularity if the construction worker was truly engaged as a
project-based employee, and between each successive project, the employer made no manifestations of any intent
to treat the worker as a continuing resource for the main business.
d. Regularized construction workers are subject to the "no work, no pay" principle, such that the employer is not obligated
to pay them a salary when "on leave." In case of an oversupply of regularized construction workers, then the employer
can exercise management prerogative to decide whom to engage for the limited projects and whom to consider as
still "on leave."
e. Submission of termination reports to the DOLE Field Office "may be considered" only as an indicator of project
employment; conversely, non-submission does not automatically grant regular status. By themselves, such
circumstances do not determine the nature of employment. (Carpio v. Modair Manila Co., G.R. No. 239622, June 21, 2021)
69.
When can a fixed-term employment be valid and not a circumvention of the law on security of tenure?
a. The fixed period of employment was knowingly and voluntarily agreed upon by the parties, without any force, duress
or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his
consent; or
b. It satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no
moral dominance whatever being exercised by the former on the latter. (Rowell Industrial (Corporation v. Court of Appeals,
G.R. No. 167714, 7 March 2007; Palgan vs. Holy Name University, G.R. No. 219916. February 10, 2021, Hernando, J.)
70.
What are the elements of Legitimate Subcontracting vs. that of Labor-Only Contracting?
Legitimate Subcontracting
Labor-Only Contracting
1. The contractor or subcontractor carries on a distinct and
1. The contractor or subcontractor does
independent business and undertakes to perform the job, work or
not have substantial capital or
service on its own account and under its own responsibility
investment to perform the job, work or
according to its own manner and method, and free from the
service under its own account and
control and direction of the principal in all matters connected with
responsibility; and
the performance of the work except as to the results thereof;
2. The employees recruited, supplied, or
2. The contractor or subcontractor has substantial capital or
placed
by such
contractor
or
investment; and
subcontractor are performing activities
3. The Service Agreement ensures compliance with all the rights
which are directly related to the main
and benefits for all the employees of the contractor or
business of the principal.
subcontractor under the labor laws.
(SLL International Cables Specialist vs. NLRC, G.R. No. 172161, 2011; Sasan v. NLRC, G.R. No. 76240, 17 Oct. 2008)
71.
What are the grounds to validly terminate the services of an employee?
Just Causes
Authorized Causes
1. Serious misconduct or willful disobedience by the
1. Installation of labor-saving devices;
employee of the lawful orders of his employer or
2. Redundancy;
representative in connection with his work;
3. Retrenchment (reduction of costs) to prevent losses;
2. Gross and habitual neglect by the employee of
4. The closing or cessation of operation
his duties;
5. Health reasons
3. Fraud or willful breach by the employee of the
6. Employers are allowed to terminate employees found
trust reposed in him by his employer or duly
suffering from any disease and whose continued
authorized representative;
employment is prohibited by law or is prejudicial to his
4. Commission of a crime or offense by the
health as well as to the health of his co-workers.
employee against the person of his employer or The employer must obtain from a competent public health
any immediate member of his family or his duly authority a certification that the employee’s disease is of such
authorized representatives; and
a nature and at such a stage that it can no longer be cured
5. Other causes analogous to the foregoing
within a period of six (6) months even with medical attention.
A just cause dismissal implies that the employee has Authorized cause dismissal is a form of terminating employercommitted, or is guilty of, some violation against the employee relationship with a liability on the part of the
employer, that is, the employee has committed some employer to pay separation pay as mandated by law. It does
serious misconduct, is guilty of fraud against the not necessarily imply delinquency or culpability on the part of
employer or he has neglected his duties such as the employee. Instead, the dismissal process is initiated by the
abandonment. Thus, the employee himself initiated the employer's exercise of his management prerogative such as
dismissal process.
installation of laborsaving devices, closure of business, or
implementing a retrenchment program.
Payment of separation pay, as a rule, is not required in
just cause dismissal. However, where the employee is
dismissed for causes other than serious misconduct or
those reflecting on his moral character, separation pay
may be allowed as a measure of social justice.
(Article 297, Art. 284, Article 282, Labor Code of the Philippines; Poquiz, 2012; Jaka Food v. Pacot, G.R. No. 151378, 28 Mar. 2005)
12
72.
AAA, a school registrar, was terminated from her job after allowing two students to attend the graduation rites
even though they failed to pass some of their subjects, in violation of school policy. AAA argued that she only
followed the practice in the said school for humanitarian reasons. However, said practice was not proven. Was
AAA illegally dismissed on grounds of serious misconduct?
No, AAA was not illegally dismissed. Case law provides that misconduct is an improper or wrong conduct. It is a
transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, willful in character, and
implies wrongful intent and not mere error in judgment. AAA committed serious misconduct in allowing ineligible students
to march. AAA’s act is clearly a conscious and willful transgression of the school’s established rule. AAA’s contention that
she only followed the practice of allowing ineligible students to march is unacceptable. The practice itself was not proven
and even if existing is evidently violative of the school policy. (Colegio San Agustin-Bacolod vs. Montaño, G.R. No. 212333. March
28, 2022, Hernando, J.)
73.
Can an employee who was absent on leave for a total of 12.5 days over the period of six months and a week be
validly dismissed on grounds of habitual absenteeism?
No. Only habitual absenteeism without leave constitutes gross negligence. Moreover, such leaves are so few to be
characterized as a reckless disregard for the safety of the company. (Systems and Plan Integrator and Development Corporation
vs. Ballesteros, G.R. No. 217119. April 25, 2022, Hernando, J.)
74.
What are the requisites for a valid termination of employment due to loss of trust and confidence?
There is loss of trust and confidence when an employee fraudulently and willfully committed acts or omission in breach of
the trust reposed in her/him by the employer. Two requisites must concur for a valid termination of employment due to loss
of trust and confidence.
1. The first requisite is that the employee concerned must be one holding a position of trust and confidence, thus, one
who is either:
a. a managerial employee; or
b. a fiduciary rank-and-file employee, who, in the normal exercise of his or her functions, regularly handles
significant amounts of money or property of the employer.
2. The second requisite is that the loss of confidence must be based on a willful breach of trust and founded on clearly
established facts.2 The act must be characterized as real wherein the facts that brought about such an act were clearly
established, and that the employee committed the same without any justifiable reason. (Lamadrid vs. Cathay Pacific
Airways Limited, G.R. No. 200658. June 23, 2021; Pacific Royal Basic Foods, Inc. vs. Noche, G.R. No. 202392. October 4, 2021,
Hernando, J.)
75.
Differentiate the two positions of trust and confidence.
Managerial employees
Those vested with the powers or prerogatives to lay down management
policies and to hire, transfer, suspend, lay-off, recall, discharge, assign
or discipline employees or effectively recommend such managerial
actions. They refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a
department or a subdivision thereof, and to other officers or members
of the managerial staff. Officers and members of the managerial staff
perform work directly related to management policies of their employer
and customarily and regularly exercise discretion and independent
judgment.
Those who in the normal and routine exercise
of their functions regularly handle significant
amounts of the employer's money or property,
such as but not limited to cashiers, auditors,
and property custodians.
By the nature of their position, managerial employees are expected to
exhibit utmost fidelity to the employer as they are entrusted with
confidential and sensitive matters.
These employees, though rank-and-file, are
routinely charged with the care and custody of
the employer's money or property, and are
thus classified as occupying positions of trust
and confidence.
As regards a managerial employee, the mere existence of a basis for
believing that such employee has breached the trust of his employer
would suffice for his dismissal. Hence, in the case of managerial
employees, proof beyond reasonable doubt is not required, it being
sufficient that there is some basis for such loss of confidence, such as
when the employer has reasonable ground to believe that the employee
concerned is responsible for the purported misconduct, and the nature
of his participation therein renders him unworthy of the trust and
confidence demanded of his position
With respect to rank-and-file personnel, loss
of trust and confidence, as grounds for valid
dismissal, requires proof of involvement in the
alleged events in question, and that mere
uncorroborated assertions and accusations
by the employer will not be sufficient.
Fiduciary rank-and-file employees
(Pacific Royal Basic Foods, Inc. vs. Noche, G.R. No. 202392. October 4, 2021; Lamadrid vs. Cathay Pacific Airways Limited, G.R. No.
200658. June 23, 2021; Lufthansa Technik Philippines, Inc. vs. AAA, G.R. No. 184452. February 12, 2020, Hernando, J.)
75.
Who are members of the managerial staff?
Members of the managerial staff are those who meet the following conditions:
1. The primary duty consists of the performance of work directly related to management policies of their employer;
2. Customarily and regularly exercise discretion and independent judgment; and
3. (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management
of the establishment in which he is employed or subdivision thereof; or (ii) execute under general supervision work
along specialized or technical lines requiring special training, experience, or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
4. Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and
closely related to the performance of the work described in paragraphs (1), (2) and (3) above. (Rule I, Sec. 2, Book 3,
Omnibus Rules Implementing the Labor Code)
76.
.
What is the rule on the floating status of security guards?
If, after a period of 6 months, the security agency/employer cannot provide work or give an assignment to the reserved
security guard, the latter can be dismissed from service and shall be entitled to separation pay. Security guards on reserved
status who accept employment in other security agencies or employers before the end of the six-month period may not be
given separation pay. (Spectrum v. Grave, G.R. No. 196650. June 07, 2017)
13
77.
What is the Two-Notice Rule?
In termination proceedings of employees, procedural due process consists of the twin requirements of notice and hearing.
The employer must furnish the employee with two written notices before the termination of employment can be effected.
The first apprises the employee of the particular acts or omissions for which his dismissal is sought; and The second informs
the employee of the employer's decision to dismiss him. (Distribution & Control Products, Inc./Vicent M. Tiamsic vs. Jeffrey Santos,
G.R. Number 212616, July 10, 2017)
78.
After discovering that AAA was deemed unfit for work due to diabetes, BBB terminated AAA’s employment without
prior notice and due process. To his surprise, he received a termination letter. Was he dismissed without
procedural due process?
Yes, AAA was not accorded procedural due process. BBB did not give AAA any form of notice or opportunity to explain his
side. BBB unilaterally dismissed him by simply issuing a letter. Clearly, BBB, after discovering that AAA was deemed unfit
for work due to diabetes, sought to immediately sever ties with him. BBB violated the requirements of procedural due
process before terminating an employee from work. (SRL International Manpower Agency vs. Yarza, Jr., G.R. No. 207828. February
14, 2022, Hernando, J.)
79.
A professor in a university was dismissed due to serious misconduct without any written formal notice for the first
hearing, but he was able to submit his Answer to the Complaint and file a Motion for Reconsideration. For the
second hearing, AAA received the notice via registered mail on the same day it was scheduled. Was the procedural
due process followed in the dismissal of AAA?
No. While the second hearing was meant for him to present his side, AAA unfortunately belatedly received the notice and
was not able to prepare or attend at all. Thus, the University did not follow the requirements of procedural due process.
(University of the Cordilleras vs. Lacanaria, G.R. No. 223665. September 27, 2021, Hernando, J.)
80.
AAA was employed as a security guard by BBB. He was on floating status for more than six (6) months which
prompted him to file a complaint for illegal dismissal. BBB argued that AAA went on absence without leave (AWOL)
and had sent several notices to petitioner for him to report for duty. The company also sent text messages and
tried to call AAA but to no avail. AAA has also refused to receive a company letter. Since AAA did not report back
to BBB for reassignment despite all the opportunities given to him, the latter terminated the former's employment.
Was AAA's right to procedural due process violated?
Yes. There is nothing in the records that would show that BBB gave AAA ample chance to explain and be heard on the
allegations against him, which is the purpose of the first notice in the "two-notice rule." BBB merely terminated the
employment of the AAA, in violation of the "two-notice rule." (Dela Torre vs. Twinstar Professional Protective Services, Inc., G.R.
No. 222992. June 23, 2021, Hernando, J.)
81.
What is the consequence for non-observance of procedural due process in dismissing an employee?
Award of nominal damages to the dismissed employee. (Philam Homeowners Association, Inc. vs. Caguiat, G.R. No. 209437, March
17, 2021, Hernando, J.)
82.
What are the rules as to burden of proof and quantum of evidence required in labor cases?
1. The rule is that one who alleges a fact has the burden of proving it. Thus, employees are burdened to prove their
allegation that their employer dismissed them from their employment. It must be stressed that the evidence to prove
this fact must be clear, positive and convincing. The rule that the employer bears the burden of proof in illegal dismissal
cases finds no application when the employers deny having dismissed the employees.
2. The employee has the burden to prove first the fact of dismissal by substantial evidence. Only then when the dismissal
is established that the burden shifts to the employer to prove that the dismissal was for just and/or authorized cause.
3. In constructive dismissal cases, the employer is charged with the burden of proving that its conduct and action or the
transfer of an employee are for valid and legitimate grounds such as genuine business necessity.
4. Bare allegations of constructive dismissal, when uncorroborated by the evidence on record, cannot be given credence.
(Italkarat 18, Inc. vs. Gerasmio, G.R. No. 221411. September 28, 2020, Hernando, J.)
83.
AAA failed to return after an altercation with his manager and then took steps to protest their alleged dismissal.
As a policy of AAA’s company, sales representatives are prohibited from leaving their designated work areas
without their superior's consent. They were also required to submit applications for leave days before the intended
dates to allow the management to approve the application and to adjust the workforce and their workload. However,
AAA was seen leaving allegedly in violation of the company's policy. The company’s general manager instructed
AAA to make a letter of apology which the latter complied with but the former did not accept his letter and further
instructed him to sign a prepared document. AAA refused to sign the document since he claims that it contains
admissions that he did not commit. Irked by his refusal, the general manager terminated AAA from work. Did AAA
abandon his work and was thus not illegally dismissed?
No. Abandonment requires the concurrence of the following:
a. the employee must have failed to report for work or must have been absent without valid or justifiable reason; and
b. there must have been a clear intention to sever the employer-employee relationship manifested by some overt acts.
Abandonment is a matter of intention and cannot lightly be presumed from equivocal acts. Absence must be
accompanied by overt acts pointing definitely to the fact that the employee simply does not want to work anymore. In
any case, mere absence or simple failure to report for work is not abandonment.
In this case, it is clear that there was no abandonment. AAA’s act is not sufficient to prove that he/she does not want to work
anymore. He/she merely stepped out of the store and later on submitted a letter of apology for his misdeed. Absent any of
the requisites, it cannot be ascertained that there was an abandonment. (Gososo vs. Leyte Lumbar Yard and Hardware, Inc. G.R.
No. 205257. January 13, 2021, Hernando, J.)
84.
Does the voluntary resignation of the employees prior to the termination of their employment render their illegal
dismissal complaints without basis?
Yes. The employees’ voluntary resignation effectively rendered their complaints for illegal dismissal without any basis.
Resignation is the formal pronouncement or relinquishment of a position or office. The intent to relinquish must concur with
the overt act of relinquishment; hence, the acts of the employee before and after the alleged resignation must be considered
in determining whether he in fact intended to terminate his employment. (Bance vs. University of St. Anthony, G.R. No. 202724.
February 3, 2021, Hernando, J.)
14
85.
Distinguish resignation and constructive dismissal
Resignation
Resignation is the formal pronouncement or relinquishment of a
position or office. It is the voluntary act of an employee who is in
a situation where he believes that personal reasons cannot be
sacrificed in favor of the exigency of the service, and he has then
no other choice but to disassociate himself from employment.
The intent to relinquish must concur with the overt act of
relinquishment; hence, the acts of the employee before and after
the alleged resignation must be considered in determining
whether he in fact intended to terminate his employment. In
illegal dismissal cases, it is a fundamental rule that when an
employer interposes the defense of resignation, on him
necessarily rests the burden to prove that the employee indeed
voluntarily resigned.
Voluntary.
Not entitled to separation pay unless it is a company practice
or provided in the CBA.
Burden of proving voluntariness is on the employer.
Constructive Dismissal
Constructive dismissal is an involuntary resignation
resorted to when continued employment is rendered
impossible, unreasonable or unlikely; or when there
is a demotion in rank and/or a diminution in pay. It
exists when there is a clear act of discrimination,
insensibility or disdain by an employer, which makes
it unbearable for the employee to continue his/her
employment. In cases of constructive dismissal, the
impossibility, unreasonableness, or unlikelihood of
continued employment leaves an employee with no
other viable recourse but to terminate his or her
employment.
Involuntary or forced resignation.
Entitled to either reinstatement or separation pay
and backwages.
Burden of proving constructive dismissal is on the
employee.
(Tacis vs. Shields Security Services, Inc., G.R. No. 234575. July 7, 2021, Hernando, J.; Intertrod Maritime, Inc. v. NLRC, G.R. No. 81087,
19 June 1991; The University of Immaculate Conception v. NLRC, G.R. No. 181146, 26 Jan. 2011; Hanford Philippines Inc. v. Shirley
Joseph, G.R. No. 158251, March 31, 2005)
86.
Is there constructive dismissal when the employer reduced the employee’s regular work days to 2 days from the
normal 5-day work week, which resulted in the diminution of his take home salary?
Yes. There is constructive dismissal where "there is cessation of work because 'continued employment is rendered
impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay' and other benefits.
Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive
dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so
unbearable on the part of the employee that it could foreclose any choice by him except to forego his continued
employment." Patently, the reduction of the employee’s regular work days from five (5) days to two (2) days resulted in a
diminution in pay. The employee’s change in his work schedule resulting in the diminution of his take home salary is,
therefore, tantamount to constructive dismissal. (Regala vs. Manila Hotel Corporation, G.R. No. 204684. October 5, 2020, Hernando,
J.)
61. Should the employer be liable to pay for the number of days the employee was placed under preventive suspension
exceeding the 30-day period even though it validly dismissed the employee?
Yes. The employer must pay the corresponding wage of his employee if the preventive suspension had been extended
beyond the 30-day period. (Philam Homeowners Association, Inc. vs. Caguiat, G.R. No. 209437, March 17, 2021)
87.
Do backwages include increases in the compensation that employees would have received if not for their illegal
dismissal?
Yes. The award of backwages and/or separation pay due to illegally dismissed employees shall include all salary increases
and benefits granted under the law and other government issuances, Collective Bargaining Agreements, employment
contracts, established company policies and practices, and analogous sources which the employees would have been
entitled to had they not been illegally dismissed. On the other hand, salary increases and other benefits which are contingent
or dependent on variables such as an employee's merit increase based on performance or longevity or the company's
financial status shall not be included in the award. (Dumapis v. Lepanto, G.R. No. 204060. September 15, 2020)
88.
What are the two kinds of reinstatement during the existence of an ongoing appeal from an illegal dismissal case?
Actual Reinstatement
Payroll Reinstatement
Reinstated employees will be resuming with their work prior Reinstated employees will be receiving their regular
to their dismissal. They will render work and be paid their compensation and benefits even if they are not allowed
regular compensation and benefits.
by the employer to work.
(Art. 294, Labor Code of the Philippines; Wenphil Corporation v. Abing, G.R. No. 207983, 07 April 2014)
V. JURISDICTION AND REMEDIES
89.
Differentiate the jurisdiction of Labor Arbiter and the jurisdiction of DOLE Regional Director
Labor Arbiter
DOLE Regional Director
Except as otherwise provided under the labor The DOLE Regional Directors have original and exclusive jurisdiction
code, the Labor Arbiters shall have original over the following cases:
and exclusive jurisdiction to hear and decide,
1. Visitorial (inspection) in cases under Article 37 of the Labor Code
within thirty (30) calendar days after the
referring to the inspection of the premises, books of accounts
submission of the case by the parties for
and records of any person or entity covered by the Title I, Book
decision without extension, even in the
1, of the Labor Code.
absence of stenographic notes, the following
2. Visitorial (inspection) and enforcement cases under Article 128
cases involving all workers, whether
(either routine or initiated through a complaint).
agricultural or non-agricultural:
3. Visitorial cases under Article 289 [274] involving examination of
1. Unfair labor practice cases;
books of accounts if independent unions, local chapters/
2. Termination disputes;
chartered locals and workers’ associations.
3. If accompanied with a claim for
4. Occupational and safety and health violations.
reinstatement, those cases that workers
5. Small money claims cases arising from labor standards
may file involving wages, rates of pay,
violations in an amount not exceeding P5,000.00 not
hours of work and other terms and
accompanied with a claim for reinstatement under Article 129.
conditions of employment;
6. Cases related to private recruitment and placement agencies for
local employment.
15
4.
5.
6.
Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
Cases arising from any violation of
Article 264 of this Code, including
questions involving the legality of strikes
and lockouts; and
Except
claims
for
Employees
Compensation,
Social
Security,
Medicare and maternity benefits, all
other claims arising from employeremployee relations, including those of
persons in domestic or household
service, involving an amount exceeding
five thousand pesos (P5,000.00)
regardless of whether accompanied
with a claim for reinstatement.
7.
Cases submitted for voluntary arbitration in their capacity as ExOfficio Voluntary Arbitrators under DO No. 83-07, Series of
2007.
8. Union registration-related cases, such as:
a.
Applications for union registration of independent unions,
local chapters and workers’ associations.
b.
Petitions for denial of application for registration of said
unions.
c.
Petitions for revocation or cancellation of registration of
said unions.
9. Notice of merger, consolidation, affiliation and change of name
of said unions and or petition for denial thereof.
10. CBA-related cases such as: a. Application for registration of
single-enterprise CBAs or petition for deregistration thereof b.
Petition for denial of registration of single-enterprise CBAs or
denial of petition for deregistration thereof.
11. Request for SEBA certification when made in an unorganized
establishment with only 1 legitimate union.
(Article 224, Labor Code)
88.
What are the rules governing jurisdiction on cases pertaining to labor standard claims?
a. If the claim involves labor standards benefits mandated by the Labor Code or other labor legislation regardless of the
amount prayed for and provided that there is an existing employer- employee relationship, jurisdiction is with the DOLE
regardless of whether the action was brought about by the filing of a complaint or not.
b. If the claim involves labor standards benefits mandated by the Labor Code or other labor legislation regardless of the
amount prayed for and there is no existing employer-employee relationship or the claim is coupled with a prayer for
reinstatement, jurisdiction is with the Labor Arbiter or NLRC. (Del Monte Land Transport Bus, Co. vs. Armenta, G.R. No.
240144. February 3, 2021, Hernando, J.)
89.
May evidence be presented for the first time on appeal before the NLRC?
Yes. Technical rules of procedure do not strictly apply in labor proceedings. It is well settled that the NLRC is not precluded
from receiving evidence, even for the first time on appeal, because technical rules of procedure are not binding in labor
cases." (Spouses Maynes, Sr. vs. Oreiro, G.R. No. 206109. November 25, 2020, Hernando, J.)
90.
If a decision of the NLRC is final and executory, can a special civil action for certiorari be filed before the Court of
Appeals?
Yes. It is precisely this final and executory nature of NLRC decisions that makes a special civil action of certiorari applicable
to such decisions, considering that appeals from the NLRC to the Supreme Court were eliminated. Further, under the sixth
paragraph of Article 223 of the Labor Code, the decision of the NLRC becomes final and executory after the lapse of ten
calendar days from receipt thereof by the parties, the adverse party is not precluded from assailing it via Petition for Certiorari
under Rule 65 before the Court of Appeals and then to the Supreme Court via a Petition for Review under Rule 45. (Italkarat
18, Inc. vs. Gerasmio, G.R. No. 221411. September 28, 2020, Hernando, J.)
91.
What case/s fall/s under the original jurisdiction of the DOLE Secretary?
When in the opinion of the Secretary of Labor and Employment, a labor dispute exists which causes or likely to cause a
strike or lock-out in an industry which is indispensable to the national interest, the Secretary of Labor and Employment may
assume jurisdiction over the dispute, decide on it or certify the said dispute to the National Labor Relations Commission for
compulsory arbitration. (Art. 278 (g), Labor Code of the Philippines)
92.
What cases fall under the appellate jurisdiction of the DOLE Secretary?
a. Decision of the DOLE Regional Director on labor standards cases, including occupational safety and health standards
b. Decision of Bureau of Labor Relations on Union Registration Cancellation cases
c. Decision of the Med-Arbiter on Certification election
(Art. 128 & 272, Labor Code of the Philippines)
93.
What are the prescriptive periods under the Labor Code
Nature
Prescriptive Period
All criminal offenses penalized under
the Labor Code and the Rules to
Implement the Labor Code.
Three (3) years from the time of commission thereof.
Criminal cases arising from ULP.
One (1) year from the time the acts complained of were committed.
Money claims.
Three (3) years from accrual of cause of action.
Claims for allowances and other
benefits.
If it is established that the benefits being claimed have been withheld from the
employee for a period longer than three (3) years, the amount pertaining to the
period beyond the three-year prescriptive period is barred by prescription.
Action for illegal dismissal.
Four (4) years from accrual of cause of action, since this is an action predicated
“upon injury to the rights of the plaintiff”.
(Art. 305, Art. 306, Labor Code of the Philippines; Art. 1146, Civil Code of the Philippines, Arriola v. Pilipino Star Ngayon, Inc., G.R. No.
175689, August 13, 2014)
16
94.
When does contracting out become ULP?
When the contracting out of a job, work or service being performed by union members interferes with, restrain
or coerce employees in the exercise of their right to self-organization, that it shall constitute an unfair labor
practice. Thus, it is not unfair labor practice to contract out work for reasons of business decline, inadequacy of
facilities and equipment, reduction of cost and similar reasonable grounds. Absent proof that the management
acted in a malicious or arbitrary manner, the Court will not interfere with the exercise of judgment by an
employer. (BPI Employees Union-Davao vs. Bank of the Philippine Islands, G.R. No. 174912, July 24, 2013)
95.
Is the dismissal of Union members due to authorize causes tantamount to ULP?
No. Dismissal of union members due to redundancy is not per se an act of ULP amounting to union busting. For while the
number of union membership was diminished due the termination of herein union members, it cannot be said that
respondent company acted in bad faith in terminating their services because the termination was not without a valid reason.
(SACORU vs. Coca-Cola Bottlers Philippines, Inc., G.R. No. 200499, October 4, 2017)
96.
Does performance of core activities by contractual workers automatically make the contractual arrangement
illegal?
No, it is not the performance of core activities per se that makes a contracting arrangement illegal, but rather, a clear
showing that the resort to such an arrangement was done specifically to violate the employee’s right to security of tenure
and payment of benefits to which he is entitled. (BPI Employees Union-Davao vs. Bank of the Philippine Islands, G.R. No.
174912, July 24, 2013)
97.
When is the prescriptive period interrupted?
The prescriptive period is interrupted by:
a. A claim filed at the proper judicial or quasi-judicial forum,
b. An extrajudicial demand on the employer,
c. The employer's acknowledgment of its debt or obligation. (Manuel L. Quezon University Association v. Manuel L. Quezon
Educational Institution,Inc.[MLQU], 172 SCRA 597, 603, April 19 1989)
98.
Discuss the procedure and remedies from the decisions of the Labor Arbiter, Med-Arbiter, Regional Director, and
in Grievance Machinery.
A
P
P
E
A
L
T
O
LABOR
ARBITER
NLRC
Within 10
days from
receipt of
decision
MED-ARBITER
REGIONAL DIRECTOR
BLR DIRECTOR
Within 10 days from
receipt of decision
DOLE SECRETARY
Within 10 days from receipt of
decision
Note:
Med-arbiter
decisions for interunion disputes are
directly appealable to
DOLE Secretary.
Note:
1. RD decisions involving small
money claims are appealable to
the NLRC
2. RD decisions for voluntary
arbitration rendered in their
capacity as ex-officio voluntary
arbitrators are appealable to CA by
petition under Rule 43.
Motion for Reconsideration
Within 10 days
COURT OF APPEALS
Petition under Rule 65
Within 60 days from notice of judgment, order, or resolution; or from notice
of denial of MR
GRIEVANCE
MACHINERY
VOLUNTARY
ARBITRATOR
Grievances unresolved
within 7 days will be
referred to voluntary
arbitration
COURT OF APPEALS
Petition under Rule 43
Within 15 days from
notice of the award,
judgment, final order, or
resolution
SUPREME COURT
Petition under Rule 45
Within 15 days
SOAR HIGH, HERON!
17