HAND-OUTS FOR

LABOR LAW REVIEW

BAR EXAMS 2013
From the notes of Atty. Ada D. Abad
For 2013 Bar with 20% MCQs and 80% essay
A. GENERAL CONCEPTS
1. CONSTITUTIONAL AND STATUTORY BASIS OF LABOR LAW AND SOCIAL
LEGISLATION
1.1 Promotion of hman di!nity "Art 2# se$ 2%
1.2 Freedom from &o'erty "Art 2# se$ (%
1.3 Prin$i&)e of distribti'e *sti$e "Art. 2# se$ (%
1.+ Freedom of ,nitiati'e and -e)f.re)ian$e "Art. 12# se$. 2%
1./ 0i!ht to de &ro$ess
1.1 0i!ht to e2a) &rote$tion of the )aw
1.3 0i!ht to se)f.or!ani4ation
1.8 0i!ht a!ainst in'o)ntary ser'itde
1.( 0i!ht a!ainst im&risonment for debt
Contrary to the $on$e&t of 5)aisse4 faire6# whi$h is an e$onomi$ theory that !o'ernment sho)d
789 interfere in bsiness affairs# the &e$)iarity in Phi)i&&ine
)abor )aw is that the -tate is mandated to ba)an$e the $onf)i$tin! yet intimate)y
intertwined interests
1
between mana!ement to its &rofit# as a!ainst the em&)oyees:
ri!ht to se)f.or!ani4ation and se$rity of tenre# thro!h the e;er$ise of its &o)i$e
&ower# as we)) as the a&&)i$ation of the so$ia) *sti$e and &rote$tion to )abor $)ases
in the Constittion.

<en$e# nder the &rin$i&)e of in$or&oration# the minimm )abor standards and benefits in
=abor Code are $onsidered inherent in e'ery em&)oyer.em&)oyee re)ationshi& even
absent a written employment contract.
2. DISTINCTION BETWEEN LABOR LAW AND SOCIAL LEGISLATION
LABOR LAW SOCIAL LEGISLATION
Affe$ts dire$)y a$ta) em&)oyment# >o'erns effe$ts of em&)oyment#
e.!.# wa!es e.!.# $om&ensation for death
Meets the dai)y needs of wor?ers ,n'o)'es )on! ran!e benefits
Paid by the em&)oyer Paid by !o'ernment a!en$ies
3. MEMORIZE ARTICLE 3, LABOR CODE DECLARATION OF POLICY
!M"#$%"&' APE-SC-S()
1
Ceb ,nstitte of 9e$hno)o!y 's. 8&)e# 1/1 -C0A 120 "1(83%. Ponente@ A. ,rene Cortes.
A09. 3. Declaration of basic policy. . 9he -tate sha)) A**%+, P+%-#'-&%" to )abor# &romote f))
Em&)oyment# ensre e2a) wor? o&&ortnities re!ard)ess of se;# ra$e or $reed and re!)ate the
re)ations between wor?ers and em&)oyers. 9he -tate sha)) assre the ri!hts of wor?ers to S#.*-
%+/0"&10-&%"# C%..#'-&2# 30+/0&"&"/# S#'4+&-5 %* -#"4+## and (46- and hmane $onditions
of wor?.
7 P+&"'&8.# %* S%'&0. 0", D&6-+&34-&2# (46-&'# B0.0"'&"/ %* &"-#+#6-6 &" '06#
9%+:#+6; 0", $0"0/#$#"-;6 +&/<-6 '%..&,#. .. 9he &o)i$y of so$ia) *sti$e is not intended
to $ontenan$e wron!doin! sim&)y be$ase it is $ommitted by the nder&ri'i)e!ed. At best it
may miti!ate the &ena)ty bt it $ertain)y wi)) not $ondone the offense. Com&assion for the &oor is
an im&erati'e of e'ery hmane so$iety bt on)y when the re$i&ient is not a ras$a) $)aimin! an
"De >4man 's. 7=0C# /+0 -C0A 210 BDe$. 2003C%.
ndeser'ed &ri'i)e!e. -o$ia) *sti$e $annot be &ermitted to be BaC ref!e of s$ondre)s any more
than $an e2ity be an im&ediment to the &nishment of the !i)ty. 9hose who in'o?e so$ia)
*sti$e may do so on)y if their hands are $)ean and their moti'es b)ame)ess and not sim&)y
be$ase they ha&&en to be &oor. 9his !reat &o)i$y of or Constittion is not meant for the
&rote$tion of those who ha'e &ro'ed they are not worthy of it# )i?e the wor?ers who ha'e tainted
the $ase of )abor with the b)emishes of their own $hara$ter. "Tirazona vs. Phil. Eds Techno-Service
(PET IN.!" #.$. No. %&'(%)" )* +an,ary )**'!.
=. H%9 -% 30.0"'# '%"*.&'-&"/ &"-#+#6-6> 306&' 8+&"'&8.#6 %* .03%+ .09
/.1 Brden of &roof is a)ways &on em&)oyer to show 'a)idity of its e;er$ise of mana!ement
&rero!ati'es# es&e$ia))y as re!ards termination of em&)oyment.
NOTE HOWEVER COMPLAINANT EMPLOYEE INITIALLY HAS THE
BURDEN OF PROVING THAT HE IS AN EMPLOYEE OF THE COMPANY.
,n sm# the r)e of thmb remains@ the on,s probandi fa))s on &etitioner
"DMP=8EDD% to estab)ish or sbstantiate s$h $)aim by the re2isite 2antm of
e'iden$e. 5Fhoe'er $)aims entit)ement to the benefits &ro'ided by )aw sho)d
estab)ish his or her ri!ht thereto ; ; ;.6 -ad)y# Aa'ier fai)ed to add$e sbstantia)
e'iden$e as basis for the !rant of re)ief. ,n this $ase# the =A and the CA both
$on$)ded that Aa'ier fai)ed to estab)ish his em&)oyment with F)y A$e. By way of
e'iden$e on this &oint# a)) that Aa'ier &resented were his se)f.ser'in! statements
&r&orted)y showin! his a$ti'ities as an em&)oyee of F)y A$e. C)ear)y# Aa'ier
fai)ed to &ass the sbstantia)ity re2irement to s&&ort his $)aim. <en$e# the
Cort sees no reason to de&art from the findin!s of the CA. "Dani)o 5Bitoy6 Aa'ier
's. CA# >.0. 7o. 1(2//8# 1/ Febrary 2012%
/.2 9here mst e;ist 6436-0"-&0. #2&,#"'# to &ro'e 'a)id e;er$ise of mana!ement
&rero!ati'es# 'i4.# *st or athori4ed $ase of termination. Proof beyond reasonab)e dobt
not re2ired in administrati'e $ases.
N%-#@ Fai)re of em&)oyer to sbmit do$ments whi$h are &resmed to be in its
&ossession# ins&ite of an 8rder to do so# im&)ies that the &resentation of said
do$ments is &re*di$ia) to its $ase.
/.3 ,nter&retation in fa'or of )abor. 5Fhere the $ontra$t of em&)oyment# bein! a $ontra$t of
adhesion# is ambi!os# any ambi!ity therein sho)d be $onstred stri$t)y a!ainst the
&arty who &re&ared it.6 "Pri$e 's. ,nnodata Phi)s.# /13 -C0A 122 B2008C%
>enera) 0)e@
Art. 223# =abor Code is !i'en )ibera) inter&retation in )ine with the desired
ob*e$ti'e of reso)'in! $ontro'ersies on the merits# to a$hie'e sbstantia)
*sti$e. "A*ero 's. Phi)$omsat# >.0. 7o. 1(3+8+# Aanary 18# 2012.%
D;$e&tion@
Fhen the =abor Arbiter:s De$ision be$ame fina)# the &etitioner attained a
'ested ri!ht to said *d!ment. 9hey had the ri!ht to re)y f))y on the
immtabi)ity of said De$ision.
,n -ofio 's. Ga)en4e)a "111 -C0A // B2012C%# it was am&)y stressed that@
59he Cort wi)) not o'erride the fina)ity and immtabi)ity of a *d!ment based
on the ne!)i!en$e of a &arty:s $onse) in time)y ta?in! a)) the &ro&er
re$orses from the *d!ment to *stify an o'erride# the $onse):s ne!)i!en$e
mst on)y be !ross bt a)so be shown to ha'e de&ri'ed the &arty the ri!ht to
de &ro$ess.6 "-,ildin. are orporation" etc. vs. /yrna /acarae." #.$. No.
%'012(" %* December )*%).%
/.+ ,n the im&osition of &ena)ty# whether ss&ension or termination# the same mst be
$ommensrate to the offense $ommitted. "-a!a)es '. 0stan:s Commer$ia) Cor&oration ">.0.
7o. 111//+# 23 7o'ember 2008%
/./ Bt mana!ement &rero!ati'es are )i?ewise to be e2a))y &rote$ted when $ir$mstan$es
show the 'a)idity of the e;er$ise.
=. P0+0,&/$ 6<&*- -%90+,6 $4-40. '%%8#+0-&%" - ,t is hi!h time that em&)oyer and em&)oyee
$ease to 'iew ea$h other as ad'ersaries and instead re$o!ni4e that there is a symbioti$
re)ationshi&# wherein they mst re)y on ea$h other to ensre the s$$ess of the bsiness.
"Toyota /otor Phils. 3or4ers vs. N5$" 21( S$6 %(%!
B. EMPLOYER-EMPLOYEE RELATIONSHIP
1. CONCEPT OF EMPLOYER-EMPLOYEE RELATIONSHIP
9he em&)oyer.em&)oyee re)ationshi& is $ontra$ta) in $hara$ter. ,t arises from the
a!reement of the &arties# e.!.# for one to render ser'i$es to another in e;$han!e for
remneration or $om&ensation. However, such relationship is so impressed with
the public interest that labor contracts must yield to the common good
(ivil ode 6rt. %(**!.. 9hs# em&)oyment $ontra$ts are sb*e$t to )aws on minimm
standards of wa!es# hors of wor?# et$.# ri!ht to nioni4ation# $o))e$ti'e bar!ainin!#
stri?es# &i$?etin! and other $o))e$ti'e a$tions.
2. ER-EE RELN. CONDITION SINE ?UA NON
FOR APPLICATION OF LABOR CODE
(URISDICTION OF LABOR COURTS
9he e;isten$e of the em&)oyer.em&)oyee re)ationshi& is a $ondition sine 7,a non
for the a&&)i$ation of )abor )aws. 9here mst be a 0DA-87AB=D CAH-A=
C877DC9,87 between the &arties and the $)aim.
@R#06%"03.# '0460. '%""#'-&%" +4.#.@
Hnder this r)e# if there is a reasonab)e $asa) $onne$tion between the $)aim
asserted and the em&)oyer.em&)oyee re)ations# then the $ase is within the
*risdi$tion of or )abor $orts. ,n the absen$e of s$h ne;s# it is the re!)ar
$orts that ha'e *risdi$tion.
9hs# where there is no em&)oyer.em&)oyee re)ationshi&# there $an be no
ob)i!ation on the &art of the 5em&)oyer6 to $o))e$ti'e)y bar!ainI nor of the
5em&)oyee6 to enfor$e his ri!hts nder the =abor Code. ,n short# the =abor
Code wi)) not a&&)y# and )abor $orts wi)) not ha'e *risdi$tion. 9he determination
of ri!hts and ob)i!ations in the re)ationshi& whi$h is not one of
5em&)oyer.em&)oyee6# wi)) be !o'erned by $i'i) )aws# and whi$h ordinary $orts
of *sti$e wo)d ha'e *risdi$tion.
2.1 E$8.%5## 3#"#*&- I6 &- 0 .03%+ ,&684-# %+ 0 '&2&. ,&684-#A
SMART C%$$4"&'0-&%"6 26. A6-%+/0, G.R. 17B132, 2B (0" 200B. .. An em&)oyer:s
demand for the &ayment of the mar?et 'a)e of the $ar# or in the a)ternati'e# the
srrender of a $ar# is not a )abor dis&te bt a $i'i) one. <en$e# this demand &ro&er)y
fa))s within the *risdi$tion of the $i'i) $orts. N% +#06%"03.# '0460. '%""#'-&%"
3#-9##" -<# '.0&$ -% -<# &664# %* 0" #$8.%5#+-#$8.%5## +#.0-&%"6<&8.
C%"-+0 C0+ L%0" A/+##$#"- 9&-< F%+*#&-4+# '.046# &" '06# %* +#6&/"0-&%". C
G+0",-#D I",46-+&0. S-##. P+%,4'-6 26. E,"0 M0+/0..%, G.R. N%. 1B13E3, 2B (4.5
200E. J ,n a termination $ase# the $)aim by em&)oyee for reimbrsement of $ar )oan
&ayments nder $ar )oan a!reement with em&)oyer was dismissed by =abor Arbiter#
findin! that the $ontra$t sti&)ation sho)d be stri$t)y fo))owed as the )aw between the
&arties. 8n a&&ea)# 7=0CKCA and -&reme Cort a)) re'ersed the =abor Arbiter:s
de$ision# and de$)ared the forfeitre &ro'ision of the $ar )oan a!reement as n)) and
'oid.
5A.-<%4/< "%- 6-+&'-.5 0 .03%+ '%"-+0'-, 0 '0+ .%0" 0/+##$#"- <#+#&" &"2%.2#6 0
3#"#*&- #F-#",#, 35 -<# #$8.%5#+6, G+0",-#D 0", G%"1#.#6, -% -<#&+ #$8.%5##
M0+/0..%. ,t sho)d benefit# and not nd)y nbrden Mar!a))o. 9he $ort $annot# in any
way# &ho)d a $ar )oan a!reement that threatens the em&)oyee with the forfeitre of a))
the $ar )oan &ayments heKshe had &re'ios)y made# &)s )oss of the &ossession of the
$ar# sho)d the em&)oyee wish to resi!nI otherwise# said a!reement $an then be sed
by em&)oyer as an instrment to either ho)d said em&)oyee hosta!e to the *ob or &nish
himKher for resi!nin!.6
ADA;S COMMENT AS REGARDS (URISDICTION IN CASE OF ESSAY ?UESTION
,n determinin! the natre of the $ase# $he$? the &rin$i&a) re)ief so!ht by the
$om&)ainant. 9hat is the determinati'e fa$tor that determines *risdi$tion. ,n the
-mart $ase# the $ase fi)ed was one of re&)e'in# and hen$e# *risdi$tion )ies with
the re!)ar $orts. ,n the Mar!a))o $ase# the &rin$i&a) $ase was one of i))e!a)
termination with $)aim for reimbrsement as we)) as dama!es# and hen$e#
&ro&er)y fa))s within the *risdi$tion of the =abor Arbiter.
2.2 C%+8%+0-# %**&'#+ %+ #$8.%5##A
Ada:s notes@
1. ,f the $om&)ainant is named as a $or&orate offi$er &er Arti$)es andKor by.)aws# then
the remo'a) of the &erson is an intra.$or&orate $ontro'ersy and within the *risdi$tion
of the ordinary $orts. ,f not# then the &erson is an ordinary em&)oyee who may on)y
be terminated for *st or athori4ed $ase# and after de &ro$ess $om&)ian$e.
2. Fho are $or&orate offi$ersL
Hnder Cor&oration Code# the fo))owin! are $or&orate offi$ers@ President#
9reasrer and Cor&orate -e$retary
8ther &ositions s&e$ifi$a))y mentioned in the Arti$)es and By.)aws.
CASES
Matling Industrial and Commercial Corp., et al. vs. Ricardo R. Coros, G.R. No.
1!"#$, 1% &ctober $#1#. -- I- &6 "%- -<# "0-4+# %* -<# 6#+2&'#6 8#+*%+$#,, 34- %"
-<# $0""#+ %* '+#0-&%" %* -<# %**&'# -<0- ,&6-&"/4&6<#6 '%+8%+0-# %**&'#+6 9<% $05
3# %46-#, *+%$ %**&'# 0- 9&.. 0", %+,&"0+5 '%+8%+0-# #$8.%5##6 9<% $05 %".5 3#
-#+$&"0-#, *%+ G46- '046#. Hnder -e$tion 2/ of the Cor&oration Code# a &osition mst
be e;&ress)y mentioned in the By.=aws in order to be $onsidered as a $or&orate offi$e.
9hs# the $reation of an offi$e &rsant to a By.=aw &ro'ision !i'in! a &resident the
&ower to $reate an offi$e does not 2a)ify as a By.=aw &osition. ,n the &resent $ase# the
&osition of Gi$e President for Finan$e and Administration whi$h res&ondent he)d was
mere)y $reated by Mat)in!:s President &rsant to the $om&any:s
By.=aws. ,t is not a $or&orate offi$e or By.=aw &osition# and therefore# res&ondent was
not a $or&orate offi$er who $o)d be osted from offi$e at wi)).
A+6#"&% Z. L%'6&" 26. N&660" L#06# P<&.6. I"'. 0", L4&6 B0"6%", G.R. N%. 1B==HI,
O'-%3#+ 20, 2010. '' Fhere there is a findin! that =o$sin was a $or&orate offi$er# not an
em&)oyee. 9herefore *risdi$tion )ies with the 09C and not the =abor Arbiter.
R#"0-% R#0. 26. S0"/4 P<&.&88&"#6, I"'. G.R. N%.1HBI=I, 1E (0"40+5 2011. '' 9he
first e)ement re2ires that the $ontro'ersy mst arise ot of intra.$or&orate or
&artnershi& re)ations between any or a)) of the &arties and the $or&oration#
&artnershi&# or asso$iation of whi$h they are not sto$?ho)ders# members or
asso$iates# between any or a)) of them and the $or&oration# &artnershi& or
asso$iation of whi$h they are sto$?ho)ders# members or asso$iates#
res&e$ti'e)yI and between s$h $or&oration# &artnershi&# or asso$iation and the
-tate insofar as it $on$erns the indi'ida) fran$hises. 9he se$ond e)ement
re2ires that the dis&te amon! the &arties be intrinsi$a))y $onne$ted with the
re!)ation of the $or&oration. ,f the natre of the $ontro'ersy in'o)'es matters
that are &re)y $i'i) in $hara$ter# ne$essari)y# the $ase does not in'o)'e an intra.
$or&orate $ontro'ersy.: BCitations omitted.C W&-< -<# #.#$#"-6 %* &"-+0-
'%+8%+0-# '%"-+%2#+65 3#&"/ 036#"- &" -<# '06#, -<# '%$8.0&"- *%+ &..#/0.
,&6$&660. &6 "%- &"-+0-'%+8%+0-#. R0-<#+, &- &6 0 -#+$&"0-&%" ,&684-# 0",,
'%"6#D4#"-.5, *0..6 4",#+ -<# G4+&6,&'-&%" %* -<# L03%+ A+3&-#+ 84+640"- -%
21I %* -<# L03%+ C%,#.
3. WHO ARE YOUR EMPLOYEES
TESTS TO DETERMINE EXISTENCE OF EMPLOYERJ
EMPLOYEE RELATIONSHIP
,n $onsiderin! whether an em&)oyer.em&)oyee re)ationshi& e;ists# one has to determine# at
the 'ery otset# whether the fa$ts of the $ase wo)d !i'e rise to an em&)oyer.em&)oyee
re)ationshi&. 9his $a))s for the a&&)i$ation of se'era) tests.
!MEMORY AID SOUTH WEST DISASTER CONTROL)
a. Se)e$tion and hirin!I
b. &ayment of Wa!esI
$. &ower of Dismissa)I
d. C%"-+%. test.
8f these for tests howe'er# the most im&ortant test is the e)ement of $ontro)# whi$h has
been defined as 5one where the em&)oyer has reser'ed the ri!ht to $ontro) not on)y the wor?
to be a$hie'ed# bt the manner and method by whi$h s$h wor? is to be a$hie'ed.6 "=G7
Pi$tres 's. =G7 Msi$ian:s >i)d# 1 -C0A 132%. -im&)y &t# an em&)oyer.em&)oyee
re)ationshi& is deemed to e;ist where the em&)oyer has a ri!ht to $ontro) the $ond$t of the
em&)oyee in re)ation to his wor?.6
%.1 Nota (ene o " -<# '%"-+%. -#6-
7ot e'ery form of $ontro) wi)) ha'e the effe$t of estab)ishin! an em&)oyer.em&)oyee
re)ationshi&. A )ine sho)d be drawn between@
o 0)es that mere)y ser'e as !ide)ines# whi$h on)y &romote the res)t. ,n s$h
$ase# no em&)oyer.em&)oyee re)ationshi& e;ists.
o 0)es that fi; the methodo)o!y and bind or restri$t the &arty hired to the se of
s$h means or methods. 9hese address both the res)t and means em&)oyed
to a$hie'e it and hen$e# em&)oyer.em&)oyee re)ationshi& e;ists.
",ns)ar =ife 's. 7=0C# 13( -C0A +/(%.
3.2 CASES
3.2.1 M06%"&' C%"-+0'-%+ 0", M#.2&" B0.0&6 26. M0/,0.#"0 M0,G%6 #-. 0.., G.R.
N%. 1B=0E7, 2= N%2#$3#+ 200E. -- ,n determinin! the e;isten$e of an em&)oyer.
em&)oyee re)ationshi&# the e)ements that are !enera))y $onsidered are the
fo))owin!@ "a% the se)e$tion and en!a!ement of the em&)oyeeI "b% the &ayment of
wa!esI "$% &ower of dismissa)I and "d% the em&)oyer:s &ower to $ontro) the
em&)oyee with res&e$t to the means and methods by whi$h the wor? is to be
a$$om&)ished. ,t is the so.$a))ed M$ontro) testM that is the most im&ortant e)ement.
9he e;isten$e of an em&)oyer.em&)oyee re)ationshi& is a 2estion of fa$t whi$h
sho)d be s&&orted by sbstantia) e'iden$e. Petitioners: defense that they
mere)y $ontra$ted the ser'i$es of res&ondents thro!h Ma)ibiran fai)s to
&ersade s. 9he fa$ts of this $ase show that res&ondents ha'e been nder the
em&)oy of MC, as ear)y as 1((1. 9hey were hired not to &erform a s&e$ifi$ *ob or
nderta?in!. ,nstead# they were em&)oyed as a)).arond )aborers doin! 'aried
and intermittent *obs# s$h as those of dri'ers# swee&ers# !ardeners# and e'en
nderta?ers or ta!a)ibin!# nti) they were arbitrari)y terminated by MC, in 200+.
9heir wa!es were &aid dire$t)y by MC,# as e'iden$ed by the )atter:s &ayro))
smmary#
18
be)yin! its se)f.ser'in! and ns&&orted $ontention that it &aid
dire$t)y to Ma)ibiran for res&ondents: ser'i$es. 0es&ondents had identifi$ation
$ards or !ate &asses issed not by Ma)ibiran# bt by MC,#
1(
and were re2ired to
wear niforms bearin! MC,:s emb)em or )o!o when they re&orted for wor?.
3.2.2 R#6&,#"- 8<56&'&0"6 0+# 0.6% #$8.%5##6 %* H%68&-0.> '%"-+%. -#6- 46#,. "Ca)amba
Medi$a) Center# ,n$. 's. 7=0C et a)# >.0. 7o. 131+8+# 2/ 7o'ember 2008I
Car&io.Mora)es% .. NOT ASKED IN THE 2010 2011 0", 2012 BAR.
Hnder the M$ontro) test#M an em&)oyment re)ationshi& e;ists between a &hysi$ian
and a hos&ita) if the hos&ita) $ontro)s both the means and the detai)s of the
&ro$ess by whi$h the &hysi$ian is to a$$om&)ish his tas?. 0esident do$tors
maintained s&e$ifi$ wor?.s$hed)es as determined by the Medi$a) Dire$tor# and
hos&ita) s&er'ised and monitored the resident do$tors: wor? thro!h the nrsin!
s&er'isors# $har!e nrses and order)ies. 0es&ondent do$tors were made
sb*e$t to hos&ita)Ns Code of Dthi$s# the &ro'isions of whi$h $o'er administrati'e
and dis$i&)inary measres on ne!)i!en$e of dties# &ersonne) $ond$t and
beha'ior# and offenses a!ainst &ersons# &ro&erty and the hos&ita)Ns interest.
=ast)y# ,Ds# B,0 forms and ---KMedi$are &ro!ram enro))ment a)) &ro'e that
resident do$tors were em&)oyees. Fith res&e$t to res&ondentsN sharin! in some
hos&ita) fees# this s$heme does not se'er the em&)oyment tie between them and
&etitioner as this mere)y mirrors additiona) form or another form of $om&ensation
or in$enti'e simi)ar to what $ommission.based em&)oyees re$ei'e as
$ontem&)ated in the =abor Code
C. NEW LABOR LAWS AND DEPARTMENT ORDERS
1. REPUBLIC ACT NO. 103H1 OTHERWISE KNOWN AS THE LBATAS KASAMBAHAYM.
E**#'-&2# 1B (0"40+5 2013. I$8.#$#-&"/ R4.#6 #**#'-&2# %" 07 (4"# 2013 !35 A--5. E"1
P0.$0+#6)
LFor 2ite a time# the we)fare of or &oor hoseho)d he)&ers has been o'er)oo?ed and
ne!)e$ted not on)y by the !o'ernment bt by or so$iety# as we)). ,t is for this reason that this
0e&resentation fi)ed -enate Bi)) 7o. 810# with the ardent &r&ose of &rote$tin! the ri!hts and
interests of this massi'e# yet in'isib)e e'eryday army and nsn! heroes of the Phi)i&&ine
e$onomy.6 J -en. Ain!!oy Dstrada
1.1 A88.&'03.# -% -<# *%..%9&"/ 8#+6%""#. 9<#-<#+ 4",#+ 0 .&2#-&" %+ .&2#-%4-
0++0"/#$#"-6, -% 9&-
a% >enera) hosehe)&I
b% EayaI
$% Coo?I
d% >ardenerI
e% =andry &ersonI or
f% Any &erson who REGULARLY &erforms domesti$ wor? in one hoseho)d on an
o$$&ationa) basis.
1.2 NOT 088.&'03.# -% -<# *%..%9&"/ 8#+6%""#.
a% -er'i$e &ro'idersI
b% Fami)y dri'ersI
$% Chi)dren nder foster fami)y arran!ementsI and
d% Any other &erson who &erforms wor? o$$asiona))y or s&oradi$a))y and not
on an o$$&ationa) basis.
1.3EMPLOYMENT CONTRACT . an em&)oyment $ontra$t mst be d)y e;e$ted by the
em&)oyer and the 8asambahay in a )an!a!e or dia)e$t ?nown to both &arties. A $o&y said
$ontra$t sha)) be frnished to the Pnon! Baran!ay of the baran!ay where the em&)oyer
)i'es. 9he em&)oyment $ontra$t mst $ontain the fo))owin! &ertinent detai)s# to wit@
a% Dties and res&onsibi)ities of the Oasambahay# in$)din! the res&onsibi)ity to
render satisfa$tory ser'i$e at a)) timesI
b% Period of em&)oymentI
$% Com&ensationI
d% Athori4ed ded$tionsI
e% <ors of wor? and &ro&ortionate additiona) &aymentI
f% 0est days and a))owab)e )ea'esI
!% Board# )od!in! and medi$a) attentionI
h% A!reements on de&)oyment e;&enses# if anyI
i% =oan a!reement# if anyI
*% 9ermination of em&)oymentI and
?% Any other )awf) $ondition a!reed &on by both &arties.
1.7 RIGHTS OF KASAMBAHAY
0. MINIMUM WAGE - A minimm wa!e of T9% T<%460", F&2# H4",+#, P#6%6
!P2,=00.00) &er month sha)) be &aid to a Oasambahay em&)oyed in the 7ationa)
Ca&ita) 0e!ion "minimm wa!e of P2#000.00 for those em&)oyed in $ities and first
$)ass mni$i&a)ities otside 7C0# and P1#/00.00 for those em&)oyed in other
mni$i&a)ities%# whi$h mst be &aid in $ash at )east on$e a month.
3. DAILY AND WEEKLY REST PERIODS - 9he Batas Oasambahay ensres that a
Oasambahay mst ha'e an a!!re!ate dai)y rest &eriod of ei!ht "8% hors &er day# and
at )east twenty for "2+% $onse$ti'e hors of rest in a wee?. 9he em&)oyer and
Oasambahay may frther a!ree to the fo))owin!@
1% -$hed)ed wee?)y rest day of the Oasambahay# wherein the )atter:s &referen$e
mst be res&e$ted if the same is based on re)i!ios !rondsI
2% 8ffsettin! a day of absen$e with a &arti$)ar rest dayI or
3% A$$m)atin! rest days not e;$eedin! fi'e "/% days.
c. SERVICE INCENTIVE LEAVE -- A Oasambahay who has rendered at )east one "1%
year of ser'i$e sha)) be entit)ed to a ser'i$e in$enti'e )ea'e of at )east fi'e "/% days with
&ay. Hnsed ser'i$e in$enti'e )ea'e sha)) not be $arried o'er to s$$eedin! years and
are not $on'ertib)e to $ash.
d. THIRTEENTH !13
-<
) MONTH PAY -- 9he Oasambahay who has rendered at )east one
month ser'i$e sha)) be entit)ed to a thirteenth month &ay of at )east one.twe)fth "1K12%
of his tota) basi$ sa)ary. 9he 13
th
month &ay sha)) be &aid to the Oasambahay not )ater
than 2+ De$ember of e'ery year or &on hisKher se&aration from em&)oyment.
#. MANDATORY GOVERNMENT CONTRIBUTIONS !SSS, PHILHEALTH, PAG-IBIG) -
9he Batas Oasambahay di$tates &on the em&)oyers their ob)i!ation to re!ister e'ery
Oasambahay in their em&)oy to the ---# Phi)<ea)th and Pa!.ibi!@ &ro'ided# that the
Oasambahay $on$erned has rendered at )east one "1% month of ser'i$e to the
em&)oyer. 9he mandatory &remim &ayments or $ontribtions sha)) be borne so)e)y by
the em&)oyer. H%9#2#+, &* -<# K060$30<05 &6 +#'#&2&"/ 0 $%"-<.5 90/# %* 0- .#06-
F&2# T<%460", P#6%6 !P=,000.00), -<# .0--#+ 6<0.. 805 -<# 8+%8%+-&%"0-# 6<0+# &"
-<# 8+#$&4$ 805$#"-6 %+ '%"-+&34-&%"6 &" -<# SSS, P<&.H#0.-< 0", P0/-&3&/.
2. REPUBLIC ACT NO. 101=1 ENTITLED LAN ACT ALLOWING THE EMPLOYMENT OF NIGHT
WORKERS, THEREBY REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL DECREE
NUMBER FOUR HUNDRED FORTY-TWO, AS AMENDED, OTHERWISE KNOWN AS THE
LABOR CODE OF THE PHILIPPINESM
9he !enera) r)e before was that women were &rohibited from wor?in! the ni!htshift between
the hors of 10@00 &.m. and 1@00 a.m. of the fo))owin! day# whether with or withot
$om&ensation. 9his &rohibition has ths been re&ea)ed by 0e&b)i$ A$t 7o. 101/1.
9he new )aw a&&)ies to a)) wor?ers who sha)) be em&)oyed or &ermitted or sffered to wor? at
ni!ht# with the e;$e&tion of the fo))owin!@
"a% &re!nant women or nrsin! mothers# sb*e$t to $ertain $onditionsI and
"b% those wor?ers em&)oyed in a!ri$)tre# sto$? raisin!# fishin!# maritime trans&ort and in)and
na'i!ation.
As defined# a ni!ht wor?er means 5any em&)oyed &erson whose wor? re2ires &erforman$e of a
sbstantia) nmber of hors of ni!ht wor? whi$h e;$eeds a s&e$ified )imit6. 9he &arameters and
)imits ha'e yet to be fi;ed by the De&artment of =abor whi$h is &resent)y wor?in! on the
,m&)ementin! 0)es.
-ome sa)ient featres of this new )aw are as fo))ows@
2.1 As re!ards women ni!ht wor?ers# the )aw &ro'ides that women who are &re!nant or nrsin!
their $hi)dren for a &eriod of at )east si;teen "11% wee?s before or after $hi)dbirth# are to be
a))owed a)ternati'e to ni!ht wor?# s$h as@ "a% transfer to day wor? where this is &ossib)eI
"b% the &ro'ision of so$ia) se$rity benefitsI or "$% an e;tension of maternity )ea'e.
Drin! the &eriods referred to abo'e# a woman ni!ht wor?er sha)) 789 be dismissed or
!i'en noti$e of dismissa)# DPCDP9 for *st or athori4ed $ases &ro'ided for in this
Code that are not $onne$ted with &re!nan$y# $hi)dbirth and $hi)d$are res&onsibi)ities.
Drin! these instan$es# the women ni!ht wor?er sha)) not )ose the benefits re!ardin!
her stats# seniority and a$$ess to &romotion whi$h may atta$h to her re!)ar ni!ht
wor? &osition. 9hese measres sha)) not ha'e the effe$t of 0DDHC,7> the &rote$tion
and benefits $onne$ted with maternity )ea'e nder e;istin! )aws.
Pre!nant women and nrsin! mothers may be a))owed to wor? at ni!ht on)y if a
$om&etent &hysi$ian# other than the $om&any &hysi$ian# sha)) $ertify their fitness to
render ni!ht wor?# and s&e$ify# in the $ase of &re!nant em&)oyees# the &eriod of the
&re!nan$y that they $an safe)y wor?.
2.2 0i!hts of the 7i!ht For?ers@
0i!ht to hea)th assessement. .. At their re2est# wor?ers sha)) ha'e the ri!ht to nder!o
a hea)th assessment withot $har!e and to re$ei'e ad'i$e on how to red$e or a'oid
hea)th &rob)ems asso$iated with their wor? on the fo))owin! instan$es@
"a% Before ta?in! & an assi!nment as a ni!ht wor?er@
"b% At re!)ar inter'a)s drin! s$h an assi!nment@ and
"$% ,f they e;&erien$e hea)th &rob)ems drin! s$h an assi!nment whi$h are not
$ased by fa$tors other than the &erforman$e of ni!ht wor?.
Fith the e;$e&tion of a findin! of nfitness for ni!ht wor?# the findin!s of s$h
assessments sha)) not be transmitted to others withot the wor?ersN $onsent and
sha)) not be sed to their detriment.
0i!ht to safe and hea)thf) wor?in! $onditions
0i!ht to $om&e) em&)oyer to &ro'ide the fo))owin! mandatory fa$i)ities@
"a% -itab)e first aid fa$i)ities
"b% Ade2ate or reasonab)e fa$i)ities s$h as s)ee&in! or restin! 2arters in the
estab)ishment
"$% Ade2ate trans&ortation from the wor? &remises to the nearest &oint of their
residen$e sb*e$t to the e;$e&tions and !ide)ines to be &ro'ided by the D8=D
0i!ht to transfer to simi)ar *ob. .. 7i!ht wor?ers who are $ertified as nfit for ni!ht wor?#
de to hea)th reasons# sha)) be transferred# whene'er &ra$ti$ab)e# to a simi)ar *ob for
whi$h they are nfit to wor?. ,f s$h transfer to a simi)ar *ob is not &ra$ti$ab)e# these
wor?ers sha)) be !ranted the same benefits as other wor?ers who are nab)e to wor?# or
to se$re em&)oyment drin! s$h &eriod. A ni!ht wor?er $ertified as tem&orari)y nfit for
ni!ht wor? sha)) be !i'en the same &rote$tion a!ainst dismissa) as other wor?ers who
are &re'ented from wor?in! for reasons of hea)thM
0i!ht to so$ia) ser'i$es. .. A&&ro&riate so$ia) ser'i$es sha)) be &ro'ided for ni!ht wor?ers and#
where ne$essary# for the wor?ers &erformin! ni!ht wor?.M
2.3 Cons)tation on 7i!ht For? -$hed)es. . Before introd$in! wor? s$hed)es re2irin! the
ser'i$es of ni!ht wor?ers# the DMP=8ED0 sha)) C87-H=9 the wor?ersN
re&resentati'esK)abor or!ani4ations $on$erned on the detai)s of s$h s$hed)es and the
forms of or!ani4ation of ni!ht wor? that are best ada&ted to the estab)ishment and its
&ersonne)# as we)) as on the o$$&ationa) hea)th measres and so$ia) ser'i$es whi$h are
re2ired. ,n estab)ishments em&)oyin! ni!ht wor?ers# $ons)tation sha)) ta?e &)a$e re!)ar)y.
2.7 AS AMENDED BY DOLE D#80+-$#"- O+,#+ N%. 11E-12 N27 (0"40+5 2012O I$8.#$#"-&"/
R4.#6 %* RA 101=1 C
GENERAL RULE
T<#+# 6<%4., 0.9056 3# *0'&.&-&#6 *%+ -+0"68%+-0-&%" %+ 6.##8&"/P+#6-&"/ D40+-#+6 *%+
-<# "&/<- 9%+:#+6.
EXCEPTIONS
Fhen there is a)ready an e;istin! $om&any &o)i$y or CBA &ro'idin! for an e2i'a)ent or
s&erior benefit i.e. there is a)ready trans&ortation a))owan$eI
-tart or end of wor? rendered does not fa)) between 12mn to /amI
Fhere the wor?&)a$e is )o$ated in an area that is a$$essib)e twenty for "2+% hors to
&b)i$ trans&ortationI and
,nsffi$ient nmber or ni!ht wor?ers to warrant the ne$essity for s)ee&in!Krestin!
fa$i)ities.
3. REPUBLIC ACT EI10 ENTITLED LTHE MAGNA CARTA OF WOMENM. !B5 A--5. S415
S#..#10)
0e$o!ni4in! the e$onomi$# &o)iti$a)# and so$io$)tra) rea)ities affe$tin! women:s $rrent
$ondition# 0e&b)i$ A$t 7o. (310# otherwise ?nown as the Ma!na Carta of Fomen was ena$ted
a)on! with its ,m&)ementin! 0)es effe$ti'e on 1/ -e&tember 200( and 10 A)y 2010#
res&e$ti'e)y.
9he &rom)!ation of this )aw affirms the ro)e of women in nation bi)din!# and re$o!ni4es the
sbstanti'e e2a)ity of women and men. As s$h# measres ha'e been made to &romote
em&owerment of women# &rse e2a) o&&ortnities for women and men# ensre e2a) a$$ess
to resor$es and to de'e)o&ment res)ts and ot$ome# and e)iminate dis$rimination and
ine2a)ity in the e$onomi$# &o)iti$a)# so$ia) and $)tra) )ife of women and men.
3.1. D&6'+&$&"0-&%" ,#*&"#,
any !ender.based distin$tion# e;$)sion# or restri$tion whi$h has the effe$t or &r&ose of
im&airin! or n))ifyin! the re$o!nition# en*oyment# or e;er$ise by women# irres&e$ti'e of their
marita) stats# on a basis of e2a)ity of men and women# of hman ri!hts and fndamenta)
freedoms in the &o)iti$a)# e$onomi$# so$ia)# $)tra)# $i'i) or any other fie)dI
any a$t or omission# in$)din! by )aw# &o)i$y# administrati'e measre# or &ra$ti$e# that
dire$t)y or indire$t)y e;$)des or restri$ts women in the re$o!nition and &romotion of their
ri!hts and their a$$ess to and en*oyment of o&&ortnities# benefits# or &ri'i)e!esI
a measre or &ra$ti$e of !enera) a&&)i$ation that fai)s to &ro'ide for me$hanisms to offset or
address se; or !ender.based disad'anta!es or )imitations of women# as a res)t of whi$h
women are denied or restri$ted in the re$o!nition and &rote$tion of their ri!hts and in their
a$$ess to and en*oyment of o&&ortnities# benefits# or &ri'i)e!esI or women# more than men
are shown to ha'e sffered the !reater ad'erse effe$ts of those measres or &ra$ti$esI and
dis$rimination $om&onded by or interse$tin! with other !ronds# stats# or $ondition# s$h
as ethni$ity# a!e# &o'erty# or re)i!ion. "-e$tion + BBC%
3.2. S%$# 8#+-&"#"- 3#"#*&-6 0", 8+%-#'-&%" /+0"-#,
P+%-#'-&%" *+%$ 0.. *%+$6 %* 2&%.#"'#, &"'.4,&"/ -<%6# '%$$&--#, 35 -<# S-0-#. .. 9his
in$)des the in$rementa) in$rease in the re$ritment and trainin! of women in !o'ernment
ser'i$es that $ater to women 'i$tims of !ender.re)ated offenses. ,t a)so ensres mandatory
trainin! on hman ri!hts and !ender sensiti'ity to a)) !o'ernment &ersonne) in'o)'ed in the
&rote$tion and defense of women a!ainst !ender.based 'io)en$e# and mandates )o$a)
!o'ernment nits to estab)ish a Gio)en$e A!ainst Fomen Des? in e'ery baran!ay to address
'io)en$e a!ainst women $asesI "-e$tion 12%
ED40. 0''#66 0", #.&$&"0-&%" %* ,&6'+&$&"0-&%" 0/0&"6- 9%$#" &" #,4'0-&%",
6'<%.0+6<&86 0", -+0&"&"/. 9his in$)des re'isin! ed$ationa) materia)s and $rri$)a to
remo'e !ender stereoty&es and ima!es# and ot)awin! the e;&)sion# non.readmission#
&rohibitin! enro))ment and other re)ated dis$rimination a!ainst women stdents and fa$)ty
de to &re!nan$y otside of marria!eI "-e$tion 11%
POSSIBLE ?UESTION FOR LABOR OR POLITICAL LAW
9D0M,7A9,87 8F P0D>7A79 FACH=9E ,7 CA9<8=,C -C<88=-. P8-,9,87 8F
-C<88= 0D@ ACADDM,C F0DDD8M A7D 0D=,>,8H- 7A9H0D 8F CA9<8=,C
-C<88=- 98 ,MP8-D <,><D0 -9A7DA0D- 8F M80A=,9E G-. -90,C9
,MP=DMD79A9,87 8F MA>7A CA09A 8F F8MD7
N%"-,&6'+&$&"0-&%" &" #$8.%5$#"- &" -<# *&#., %* $&.&-0+5, 8%.&'# 0", %-<#+ 6&$&.0+
6#+2&'#6.
L#02# 3#"#*&-6 %* -9% !2) $%"-<6 9&-< *4.. 805 306#, %" /+%66 $%"-<.5 '%$8#"60-&%"#
for women em&)oyees who nder!o sr!ery $ased by !yne$o)o!i$a) disorders# &ro'ided
that they ha'e rendered $ontinos a!!re!ate em&)oyment ser'i$e of at )east si; "1% months
for the )ast twe)'e "12% monthsI "-e$tion 21%
AS AMENDED BY DOLE D#80+-$#"- O+,#+ N%. 112-A N22 M05 2012O 0$#",#, -<#
/4&,#.&"#6 %" -<# I$8.#$#"-0-&%" %* -<# .#02# 3#"#*&- *%+ W%$#" E$8.%5##6 &" -<#
8+&20-# 6#'-%+. -- A,0
D8=D inserted a new &ro'ision nder -e$tion +# whi$h &ro'ides@ 59he s&e$ia) )ea'e benefit.
J 9he two "2% months s&e$ia) )ea'e benefit is the ma;imm &eriod of )ea'e with &ay that a
woman may a'ai) of nder 0A (310. F%+ 84+8%6#6 %* ,#-#+$&"&"/ -<# 8#+&%, %* .#02#
9&-< 805 -<0- 9&.. 3# 0..%9#, -% 0 9%$0" #$8.%5##, -<# '#+-&*&'0-&%" %* 0 '%$8#-#"-
8<56&'&0" 06 +#D4&+#, 8#+&%, *%+ +#'48#+0-&%" 6<0.. 3# '%"-+%..&"/.M
Additiona))y# -e$tion 1 of the D8 112.A a)so &ro'ides as fo))ows@ LF+#D4#"'5 %* 020&.$#"-.
J A woman em&)oyee $an a'ai) of the s&e$ia) )ea'e benefit for e'ery instan$e of sr!ery de
to !yne$o)o!i$a) disorder for a ma;imm tota) &eriod of two "2% months &er year.6
EFFECT T<# -%-0. +#'%2#+5 8#+&%, *%+ 0 9%$0" #$8.%5## &6 .&$&-#, -% -9% $%"-<6
8#+ 5#0+ regardless %* -<# *+#D4#"'5 %* 64+/&'0. %8#+0-&%"6 -<0- 0 *#$0.# #$8.%5##
$&/<- 4",#+/%.
3.3. N%-#6 ,n addition to the two.month !yne$o)o!i$a) )ea'e# &)ease ta?e note that the woman
em&)oyee may# in $ertain $ases# a'ai) of additiona) )ea'es# to wit@
3.3.1 B0--#+#, W%$0" L#02# 4",#+ R#843.&' A'- N%. E2H2, ANTI-VIOLENCE AGAINST
WOMEN AND CHILDREN
SECTION 73. )ntitlement to *eave. 9 Gi$tims nder this A$t sha)) be entit)ed to ta?e a
&aid )ea'e of absen$e & to -#" !10) ,056 in addition to other &aid )ea'es nder the
=abor Code and Ci'i) -er'i$e 0)es and 0e!)ations# e;tendib)e when the ne$essity
arises as s&e$ified in the &rote$tion order.
Any em&)oyer who sha)) &re*di$e the ri!ht of the &erson nder this se$tion sha)) be
&ena)i4ed in a$$ordan$e with the &ro'isions of the =abor Code and Ci'i) -er'i$e 0)es
and 0e!)ations. =i?ewise# an em&)oyer who sha)) &re*di$e any &erson for assistin! a
$o.em&)oyee who is a 'i$tim nder this A$t sha)) )i?ewise be )iab)e for dis$rimination.
3.3.2 S%.% P0+#"- L#02# 4",#+ R#843.&' A'- N%. BEI2, SOLO PARENTS; WELFARE ACT
OF 2000
SECTION B. P0+#"-0. L#02#. Q ,n addition to )ea'e &ri'i)e!es nder e;istin! )aws#
&arenta) )ea'e of not more than 6#2#" !I) 9%+:&"/ ,056 e'ery year sha)) be !ranted
to any so)o &arent em&)oyee who has rendered ser'i$e of at )east one "1% year.
D. MANAGEMENT PREROGATIVES
1. MEMORIZE ELEMENTS V0.&, #F#+'&6# %* $0"0/#$#"- 8+#+%/0-&2#6
9he free wi)) of the mana!ement to $ond$t its own affairs to a$hie'e its &r&ose $annot be
denied# P08G,DDD 9<A9 9<D -AMD ,- DPD0C,-DD@
IN GOOD FAITH !BONA-FIDE IN CHARACTER%#
F80 9<D ADVANCEMENT OF THE EMPLOYER;S INTERESTI A7D
NOT TO CIRCUMVENT THE RIGHTS OF THE EMPLOYEES. "Ca&ito)
Medi$a) Center 's. Meri4I -an Mi!e) Brewery and Hnion Carbide $ases%.
2. NEW CASES@
2.1 NOT ASKED IN 2012 BAR M0"0/#$#"- $05 20.&,.5 &$8%6# 0 8+%<&3&-&%" 0/0&"6-
#.#'-&2# %**&'# 06 0" #F#+'&6# %* &-6 8+#+%/0-&2#6.
Y$3%"/ 26. ABS-CBN, G.R. 1B7BB=, 0I M0+'< 2012, -- ,n the instant $ase# AB-.CB7
'a)id)y *stified the im&)ementation of Po)i$y 7o. <0.D0.011. ,t is we)) within its ri!hts to
ensre that it maintains its ob*e$ti'ity and $redibi)ity and freein! itse)f from any
a&&earan$e of im&artia)ity so that the $onfiden$e of the 'iewin! and )istenin! &b)i$ in it
wi)) not be in any way eroded. AB-.CB7 stron!)y be)ie'es that it is to the best interest of
the $om&any to $ontinos)y remain a&o)iti$a). Fhi)e it en$ora!es and s&&orts its
em&)oyees to ha'e !reater &o)iti$a) awareness and for them to e;er$ise their ri!ht to
sffra!e# the $om&any# howe'er# &refers to remain &o)iti$a))y inde&endent and
natta$hed to any &o)iti$a) indi'ida) or entity.
2.2 IMPORTANT CASE B+&''&% LR&':5M A. P%..% 26. C<0&+8#+6%" K0+&"0
C%"6-0"-&"%-D02&,, #- 0.., G.R. N%. 1B1BB1. 1B O'-%3#+ 2011. -- M0"0/#$#"- $05
6#0+'< %**&'# '%$84-#+ -% '<#': %" $&6'%",4'-> "%"-&"*+&"/#$#"- %* +&/<- -%
8+&20'5.
9his $ase in'o)'es a sear$h of offi$e $om&ter assi!ned to a !o'ernment em&)oyee
who was $har!ed administrati'e)y and e'enta))y dismissed from the ser'i$e. 9he
em&)oyee:s &ersona) fi)es stored in the $om&ter were sed by the !o'ernment
em&)oyer as e'iden$e of mis$ond$t.
?4#6-&%" M05 -<# 6#0+'< '%",4'-#, %" #$8.%5##;6 %**&'# '%$84-#+ 0", '%85&"/
%* 8#+6%"0. *&.#6 9&-<%4- <&6 :"%9.#,/# 0", '%"6#"-, 0" &"*+&"/#$#"- %* -<#
#$8.%5##;6 '%"6-&-4-&%" +&/<- -% 8+&20'5A
Answer@ 7o# it is not an infrin!ement of the ri!ht to &ri'a$y.. Petitioner fai)ed to &ro'e
that he had an a$ta) "sb*e$ti'e% e;&e$tation of &ri'a$y either in his offi$e or
!o'ernment.issed $om&ter whi$h $ontained his &ersona) fi)es. Petitioner did not
a))e!e that he had a se&arate en$)osed offi$e whi$h he did not share with anyone# or
that his offi$e was a)ways )o$?ed and not o&en to other em&)oyees or 'isitors. 7either
did he a))e!e that he sed &asswords or ado&ted any means to &re'ent other
em&)oyees from a$$essin! his $om&ter fi)es. 8n the $ontrary# hes bmits that bein! in
the &b)i$ assistan$e offi$e of the C-C# he norma))y wo)d ha'e 'isitors in his offi$e.
D'en assmin! that &etitioner had at )east a sb*e$ti'e e;&e$tation of &ri'a$y in his
$om&ter as he $)aims# the same is ne!ated by the &resen$e of &o)i$y re!)atin! the
se ofoffi$e $om&ters. 9he C-C had im&)emented a &o)i$y that &ts its em&)oyees on
noti$e that they ha'e no e;&e$tation of &ri'a$y in anythin! they $reate# store# send or
re$ei'e on the offi$e $om&ters. Hnder this &o)i$y# the C-C may monitor the se of the
$om&ter resor$es sin!both atomated or hman means. 9his im&)ies that on.the.
s&ot ins&e$tions may be done toensre that $om&ter resor$es were sed on)y for
)e!itimate bsiness &r&oses.
?4#6-&%" M05 -<# 6#0+'< %" -<# #$8.%5##;6 '%$84-#+ 3# '%"6&,#+#, 06
+#06%"03.#A
Answer@ Ees. 9he sear$h of &etitioner:s $om&ter fi)es was $ond$ted in $onne$tion
with an in'esti!ation of wor?.re)ated mis$ond$t &rom&ted by an anonymos )etter.
$om&)aint addressed to Commissioner Da'id re!ardin! anoma)ies in the C-C.08,G
where the head of the /amamayan /,na :indi /amaya Na di'ision is s&&osed)y
5)awyerin!6 for indi'ida)s with &endin! $ases in the C-C. A sear$h by a !o'ernment
em&)oyer of an em&)oyee:s offi$e is *stified at in$e&tion when there are reasonab)e
!ronds for ss&e$tin! that it wi)) trn & e'iden$e that the em&)oyee is !i)ty of wor?.
re)ated mis$ond$t. Hnder the fa$ts obtainin!# the sear$h $ond$ted on &etitioner:s
$om&ter was *stified at its in$e&tion and s$o&e.
2.3 RULES ON TRANSFER I- &6 -<# 8+#+%/0-&2# %* $0"0/#$#"- -% -+0"6*#+ 0"
#$8.%5## 9<#+# <# '0" 3# $%6- 46#*4. -% -<# '%$80"5> I"643%+,&"0-&%" &* "%-
*%..%9#,.
T406%" 26. B0": %* C%$$#+'#, #- 0.., G.R. N%. 1E20IH, 21 N%2#$3#+
2012. .. 9he ri!ht of mana!ement to transfer its em&)oyees is &art of
mana!ement &rero!ati'e. Bt )i?e a)) ri!hts# the same $annot be e;er$ised
with nbrid)ed dis$retion. 9he mana!eria) &rero!ati'e to transfer &ersonne)
mst be e;er$ised withot !ra'e abse of dis$retion# bearin! in mind the
basi$ e)ements of *sti$e and fair &)ay.
?4#6-&%" M05 0" #$8.%5## +#*46# -% '%$8.5 9&-< -+0"6*#+ %+,#+ %*
M0"0/#$#"- 35 +0&6&"/ -<&6 06 0 /+&#20"'# &664#A M0"&.0 P02&..&%" 26. H#"+5
D#.0,0, GR 1BEE7I, 2= (0"40+5 2012, C( S#+#"%
S48+#$# C%4+- 78RRR 9he refsa) to obey a 'a)id transfer order $onstittes wi))f)
disobedien$e of a )awf) order of an em&)oyer. Dm&)oyees may ob*e$t to# ne!otiate
and see? redress a!ainst em&)oyers for r)es or orders that they re!ard as n*st or
i))e!a). <owe'er# nti) and n)ess these r)es or orders are de$)ared i))e!a) or
im&ro&er by $om&etent athority# the em&)oyees i!nore or disobey them at their &eri).
,n fa$t# De)ada $annot hide nder the )e!a) $)oa? of the !rie'an$e ma$hinery of the
CBA or the 'o)ntary arbitration &ro$eedin!s to disobey a 'a)id order of transfer from
the mana!ement of the hote). W<&.# &- &6 -+4# -<0- D#.0,0;6 -+0"6*#+ -% S#06%"6 &6
-<# 643G#'- %* -<# /+&#20"'# $0'<&"#+5 &" 0''%+,0"'# 9&-< -<# 8+%2&6&%"6 %*
-<#&+ CBA, D#.0,0 &6 #F8#'-#, -% '%$8.5 *&+6- 9&-< -<# 60&, .09*4. ,&+#'-&2#
9<&.# 090&-&"/ -<# +#64.-6 %* -<# ,#'&6&%" &" -<# /+&#20"'# 8+%'##,&"/6.
P<0+$0'&0 0", UP(OHN, I"'. !"%9 P*&1#+ P<&.&88&"#6, I"'.) 26. A.305,0, (+.,
G.R. N%. 1I2I27, 23 A4/46- 2010. -- ,t is the &rero!ati'e of mana!ement to transfer
an em&)oyee from one offi$e to another within the bsiness estab)ishment based on
its assessment and &er$e&tion of the em&)oyee:s 2a)ifi$ations# a&titdes and
$om&eten$e# and in order to as$ertain where he $an fn$tion with ma;imm benefit
to the $om&any. 9his is a &ri'i)e!e inherent in the em&)oyer:s ri!ht to $ontro) and
mana!e his enter&rise effe$ti'e)y. +n employee who re,uses to be trans,erred
when such trans,er is valid, is guilty o, insubordination.
CONTRA> P+&"'# T+0"68%+-, I"'. 26. G0+'&0, #- 0.. G.R. N%. 1HI2E1, 12 (0"40+5
2011> W<#" -+0"6*#+ &6 ,%"# &" 30, *0&-<. -- Fhen the President of Prin$e
9rans&ort# ,n$. "P9,% ss&e$ted that the dri'ers# $ond$tors# me$hani$s or ins&e$tors
were abot to form a nion# he made ?nown his ob*e$tion to the formation of the
same. ,n order to b)o$? the $ontined formation of the nion# P9, $ased the transfer
of a)) nion members and sym&athi4ers to one of its sb.$om&anies# =bas
9rans&ort "=bas%. =ater# the bsiness of =bas deteriorated be$ase of the refsa)
of P9, to maintain and re&air the nits bein! sed therein# whi$h res)ted in the
'irta) sto&&a!e of its o&erations and the wor?ersN )oss of em&)oyment. The transfer
of the wor4ers to 5,bas was desi.ned by PTI as a s,bterf,.e to foil the former;s
ri.ht to or.anize themselves into a ,nion. This is <5P as it interferes with" restrains
or coerces the wor4ers of PTI in the e=ercise of their ri.ht to self-or.anization.
2.7 O**-,#-0&.&"/ %+ *.%0-&"/ 6-0-46 *%+ 0 8#+&%, %* "%- $%+# -<0" 6&F !H) $%"-<6, &6 "%-
'%"6-+4'-&2# ,&6$&660.. C
N&88%" H%46&"/ P<&.. I"'., #-. 0.., 26. M0&0 A"/#.0 R#5#6, G.R. N%. 1IIB1H, 03
A4/46- 2011. -- Considerin! that e'en )abor )aws dis$ora!e intrsion in the em&)oyers:
*d!ment $on$ernin! the $ond$t of their bsiness# $orts often de$)ine to interfere in
their )e!itimate bsiness de$isions# absent showin! of i))e!a)ity# bad faith or
arbitrariness. ,ndeed# the ri!ht of em&)oyees to se$rity of tenre does not !i'e them
'ested ri!hts to their &ositions to the e;tent of de&ri'in! mana!ement of its &rero!ati'e
to $han!e their assi!nments or to transfer them. 9he re$ord shows that =eynes fi)ed the
$om&)aint for a$ta) i))e!a) dismissa) from whi$h the $ase ori!inated on 22 Febrary
2002 or immediate)y &on bein! &)a$ed on f)oatin! stats as a $onse2en$e of 7<P,:s
hirin! of a new Pro&erty Mana!er for the Pro*e$t. T<# +4.# &6 6#--.#,, <%9#2#+, -<0-
@%**-,#-0&.&"/@ &6 "%- #D4&20.#"- -% ,&6$&660., 6% .%"/ 06 64'< 6-0-46 ,%#6 "%-
'%"-&"4# 3#5%", 0 +#06%"03.# -&$# 0", -<0- &- &6 %".5 9<#" 64'< 0 @*.%0-&"/
6-0-46@ .06-6 *%+ $%+# -<0" 6&F $%"-<6 -<0- -<# #$8.%5## $05 3# '%"6&,#+#, -%
<02# 3##" '%"6-+4'-&2#.5 ,&6$&66#,. A $om&)aint for i))e!a) dismissa) fi)ed &rior to the
)a&se of said si;.month andKor the a$ta) dismissa) of the em&)oyee is !enera))y
$onsidered as &rematre)y fi)ed.
2.= C%"-+0'-&"/ %4- %* 6#+2&'#6. !S## 0.6% ,&6'466&%" %" V0.&, G%3-'%"-+0'-&"/ 26. L03%+-%".5
'%"-+0'-&"/ %" SECTION F, PAGE QQQ HEREUNDER.)
G#"#+0. +4.#@ Mana!ement may $onta$t ot ser'i$es in the e;er$ise of its
mana!ement &rero!ati'es.
D%'-+&"0. '06# A6&0" A.'%<%. C%+8%+0-&%" 26. NLRC, 30= SCRA 71H, 0- 73=-
73H N1EEEO, '*. S#++0"% 26. NLRC, G.R. N%. 11I070 N2I (0" 2000O). J 9he
-&reme Cort has he)d in a nmber of $ases that an em&)oyerNs !ood faith in
im&)ementin! a redndan$y &ro!ram is 789 ne$essari)y destroyed by the a'ai)ment
of the ser'i$es of an inde&endent $ontra$tor# to re&)a$e the ser'i$es of the
terminated em&)oyees. T<# +#,4'-&%" %* #$8.%5##6 &" 0 '%$80"5 $0,#
"#'#660+5 35 -<# &"-+%,4'-&%" %* -<# 6#+2&'#6 %* 0" &",#8#",#"-
'%"-+0'-%+ &6 G46-&*&#, 9<#" -<# .0--#+ &6 4",#+-0:#" &" %+,#+ -%
#**#'-40-# $%+# #'%"%$&' 0", #**&'&#"- $#-<%,6 %* 8+%,4'-&%". Brden
of &roof is ths on the $om&)ainin! em&)oyees to show &roof that the mana!ement
a$ted in a ma)i$ios or arbitrary manner in en!a!in! the ser'i$es of an inde&endent
$ontra$tor to do a s&e$ifi$ a$ti'ity. Absent s$h &roof# the -&reme Cort has no
basis to interfere with the bona fide de$ision of mana!ement to effe$t a more
e$onomi$ and effi$ient methods of &rod$tion.
MERALCO 26. ?4&64$3&"/, 22 F#3 2000 -- 9he added re2irement of
$ons)tation im&osed by the -e$retary of =abor in $ases of $ontra$tin! ot for si;
months or more was re*e$ted by the -&reme Cort.
>S,ffice it to say that the employer is allowed to contract o,t services for si=
months or more. :owever" a line m,st be drawn between mana.ement
prero.atives re.ardin. b,siness operations per se" and those which affect
the ri.hts of the employees. In treatin. the latter" the employer sho,ld see to
it that its employees are at least properly informed of its decision or modes of
action in order to attain harmonio,s labor-m.mt relationship.
/ana.ement cannot be denied the fac,lty of promotin. efficiency and
attainin. economy by a st,dy of what ,nits are essential for its operations. It
has the ,ltimate determination whether services sho,ld be performed by its
personnel or contracted o,t to o,tside a.encies.
3hile there sho,ld be m,t,al cons,ltation" event,ally deference is to be paid
to what mana.ement decides. ontractin. o,t of services is an e=ercise of
b,siness ?,d.ment or mana.ement prero.ative@ 6bsent proof that
mana.ement acted malicio,sly or arbitrarily" the o,rt will not interfere in the
e=ercise of s,ch ?,d.ment by the employer.A
E. KINDS OF EMPLOYMENT
1. REGULAR EMPLOYEES J those who are hired for a$ti'ities whi$h are "#'#660+5
%+ ,#6&+03.# in the sa) trade or bsiness of the em&)oyer
ABS-CBN CASES
!0) ON-CAMERA TALENT IS AN INDEPENDENT CONTRACTOR
(%6# S%"10 26. ABS-CBN, G.R. 13B0=1, 10 (4"# 2007. C 0e)ationshi& of a bi!
name ta)ent "Aay -on4a% and a te)e'ision.radio broad$astin! $om&any is one of an
inde&endent $ontra$tin! arran!ement. AB-.CB7 en!a!ed -87SA:s ser'i$es
s&e$ifi$a))y to $o.host the MMe) T AayM &ro!rams. AB-.CB7 did not assi!n any other
wor? to -87SA. 9o &erform his wor?# -87SA on)y needed his s?i))s and ta)ent. <ow
-87SA de)i'ered his )ines# a&&eared on te)e'ision# and sonded on radio were
otside AB-.CB7:s $ontro). -87SA did not ha'e to render ei!ht hors of wor? &er
day. 9he A!reement re2ired -87SA to attend on)y rehearsa)s and ta&in!s of the
shows# as we)) as &re. and &ost.&rod$tion staff meetin!s. AB-.CB7 $o)d not
di$tate the $ontents of -87SA:s s$ri&t. <owe'er# the A!reement &rohibited -87SA
from $riti$i4in! in his shows AB-.CB7 or its interests. 9he $)ear im&)i$ation is that
-87SA had a free hand on what to say or dis$ss in his shows &ro'ided he did not
atta$? AB-.CB7 or its interests. Fe find that AB-.CB7 was not in'o)'ed in the
a$ta) &erforman$e that &rod$ed the finished &rod$t of -87SA:s wor?.
33
AB-.CB7
did not instr$t -87SA how to &erform his *ob. AB-.CB7 mere)y reser'ed the ri!ht
to modify the &ro!ram format and airtime s$hed)e Mfor more effe$ti'e &ro!rammin!.M
AB-.CB7:s so)e $on$ern was the 2a)ity of the shows and their standin! in the
ratin!s. C)ear)y# AB-.CB7 did not e;er$ise $ontro) o'er the means and methods of
&erforman$e of -87SA:s wor?.
!3) LOFF-CAMERA TALENTSM ARE EMPLOYEES.
IMPORTANT BRION CASE F0+.#5 F4.0'<# #- 0. 26. ABS-CBN, G.R. N%.
1B3B10, 21 (0"40+5 2010.. J Com&)ainants were dri'ers# $ameramen# editors#
te)e&rom&ter and G90 man who so!ht in$)sion in the a&&ro&riate bar!ainin! nit of
the ran?.and.fi)e em&)oyees and a'ai)ment of CBA benefits. AB-.CB7 denied
em&)oyment re)ationshi&# on the !rond that they were 5off.$amera ta)ents6 in the
natre of inde&endent $ontra$tors. Pendin! the re!)ari4ation $ase fi)ed before the
7=0C# AB-.CB7 dismissed the dri'ers for their refsa) to si!n & em&)oyment
$ontra$ts with ser'i$e $ontra$tor AB=D ser'i$es. -&reme Cort affirmed CA and
=abor tribna)s findin!s# re@ e;isten$e of em&)oyer.em&)oyee re)ationshi& and hen$e#
to be $onsidered as re!)ar em&)oyees who may be in$)ded in the CBA a'ai)ments.
2. PROBATIONARY EMPLOYEES J those who are hired !enera))y for re!)ar
&ositions bt are &)a$ed on a &robationary stats for a &eriod of 1 months "as a
!enera) r)e%. May be$ome re!)ar on$e he has 2a)ified as s$h in a$$ordan$e with
reasonab)e standards made ?nown to him at the time of hirin!. 9hey are $onsidered
re!)ar if they are a))owed to wor? beyond the &robationary &eriod.
C0"0,&0" O88%+-4"&-&#6 U".&$&-#,, I"'. 26. B0+- ?. D0.0"/&", (+., G.R. N%.
1I2223, 0H F#3+40+5 2012# where -&reme Cort fond that &robationary em&)oyee
was 'a)id)y dismissed after one month of em&)oyment for reasons of obstina$y and
tter disre!ard of $om&any &o)i$ies# &ro&ensity to ta?e &ro)on!ed and e;tended
)n$h brea?s# shows no interest in fami)iari4in! onese)f with the &o)i$ies and
ob*e$ti'es# )a$? of $on$ern for the $om&any:s interest in refsin! to attend
$om&anyseminars intended to fami)iari4e $om&any em&)oyees with Mana!ement
ob*e$ti'es and enhan$ement of $om&any interest and ob*e$ti'es# )a$? of enthsiasm
toward wor?# and )a$? of interest in fosterin! re)ationshi& with his $o.em&)oyees.
M05 0 8+%30-&%"0+5 .&"#$0" 20.&,.5 '.0&$ -<0- 3#&"/ 0 643%+,&"0-#, <# '0""%-
3# '%"6&,#+#, 0 '%"68&+0-%+ &" -<# '%$$&66&%" %* 8&.*#+0/# '%$$&--#, 35 <&6
648#+&%+A Mani)a D)e$tri$ Com&any 's. Aan Car)o >a)a# >.0. 7o. 1(1288. 03 Mar$h
2012.
F0'-6 Com&)ainant >a)a insists that he $annot be san$tioned for the theft of
$om&any &ro&erty on May 2/# 2001. <e maintains that@
<e had no dire$t &arti$i&ation in the in$ident
<e was not aware that an i))e!a) a$ti'ity was !oin! on as he was at some
distan$e from the tr$?s when the a))e!ed theft was bein! $ommitted.
<e did not $a)) the attention of the foremen be$ase he was a mere )ineman
and he was fo$sed on what he was doin! at the time.
S48+#$# C%4+- >a)a misses the &oint. <e for!ets that as a &robationary em&)oyee#
his o'era)) *ob &erforman$e and his beha'ior were bein! monitored and measred in
a$$ordan$e with the standards "i.e.# the terms and $onditions% )aid down in his
&robationary em&)oyment a!reement# 'i4.
non.'io)ation of the Com&any Code on Dm&)oyee Dis$i&)ine# -afety Code#
r)es and re!)ations and e;istin! &o)i$ies.
to obser'e at a)) times the hi!hest de!ree of trans&aren$y# se)f)essness
and inte!rity in the &erforman$e of his dties and res&onsibi)ities# free from
any form of $onf)i$t or $ontradi$tin! with his own &ersona) interest.
T#+$&"0-&%" %* #$8.%5##6 %" 8+%30-&%"0+5 6-0-46, /4&,&"/ 8+&"'&8.#6
2.1 B4+,#" %* 8+%%* 48%" #$8.%5#+ -% 6<%9 -<0- -<# #$8.%5## *0&.#, -%
D40.&*5 06 0 +#/4.0+ #$8.%5## &" 0''%+,0"'# 9&-< +#06%"03.# 6-0",0+,6
$0,# :"%9" -% <&$ 0- -<# -&$# %* #"/0/#$#"-.
H0'&#",0 P+&$#+0 D#2.8- C%+8 26. V&..#/06, G.R. N%. 1BH273, 11 A8+&.
2011. J >enera) Mana!er hired as &robationary em&)oyee for three "3%
months. Petitioner <a$ienda FA,=DD to s&e$ify the reasonab)e standards by
whi$h em&)oyee:s a))e!ed &oor &erforman$e was e'a)ated ... m$h )ess# to
&ro'e that s$h standards were made ?nown to him at the start of
em&)oyment. 9hs# the em&)oyee is deemed to ha'e been hired from DAE
87D as a re!)ar em&)oyee. DHD P08CD-- di$tates that an em&)oyee be
a&&rised beforehand of the $onditions of his em&)oyment and of the
ad'an$ement therein.
2.2 Fhi)e the &robationary em&)oyee is re2ired to be a&&raised of the standards
a!ainst whi$h his &erforman$e sha)) be assessed# -<#+# &6 <%9#2#+ "% "##,
-% &"*%+$ -<# 8+%30-&%"0+5 #$8.%5## -<0- <# <06 -% *%..%9 '%$80"5
+4.#6 0", +#/4.0-&%"6 C 64'< +#D4&+#$#"- 6-+0&"6 '+#,4.&-5. (Philippine
Daily In7,irer vs. /a.tibay" 2)0 S$6 122 B)**(C!.
2.3 IMPORTANT BRION CASE, NOT ASKED IN PREVIOUS 2010 AND 2011
BAR. R4.&"/ %" P+%30-&%"0+5 #$8.%5$#"- %" *&F#,--#+$ '%"-+0'->
#F8&+0-&%" %* '%"-+0'- NO LONGER 20.&, /+%4",. (Dolanda /ercado" et al.
vs. 6/6 omp,ter olle.e ParaEa7,e ity" Inc. &%0 S$6 )%0 B)*%*C.! -
9he tea$hers in this $ase were on &robationary stats on fi;ed term $ontra$ts
from the time they were em&)oyed and nti) the e;&iration of their tea$hin!
$ontra$ts. -bse2ent)y# before they were ab)e to $om&)ete three $onse$ti'e
years of ser'i$e# they were informed by the s$hoo) that with the e;&iration of
their $ontra$t to tea$h# their $ontra$t wo)d no )on!er be renewed "Ada@ ,n
ordinary &ar)an$e# 5D7D 8F C8790AC9%. <en$e# they fi)ed a $om&)aint for
i))e!a) dismissa).
9he =abor Arbiter r)ed that the tea$hers were i))e!a))y dismissed and stated
that Arti$)e 281 of the =abor Code on &robationary em&)oyment a&&)ied to the
$ase. 8n a&&ea)# the 7=0C affirmed the =abor Arbiters de$ision. 8n a
&etition for $ertiorari# the Cort of A&&ea)s re'ersed the de$ision of the 7=0C.
,sses@ Are fi;ed.term &robationary $ontra$ts 'a)idL Fas the s$hoo) $orre$t in
sim&)y refsin! to renew the &robationary fi;ed.term $ontra$tL
De$ision@ the -&reme Cort stated that nothin! is i))e!itimate in definin! the
s$hoo).tea$her on fi;ed term basis. <8FDGD0# -<# 6'<%%. 6<%4., "%-
*%+/#- -<0- &-6 656-#$ %* *&F#,--#+$ '%"-+0'- &6 0 656-#$ -<0- %8#+0-#6
,4+&"/ -<# 8+%30-&%"0+5 8#+&%, 0", *%+ -<&6 +#06%" &6 643G#'- -% -<#
-#+$6 %* A+-&'.# 2B1 %* -<# L03%+ C%,#. Hn)ess this re$on$i)iation is made#
the re2irements of this Arti$)e on &robationary stats wo)d be f))y ne!ated
as the s$hoo) may free)y $hoose not to renew $ontra$ts sim&)y be$ase their
terms ha'e e;&ired.
>i'en the $)ear $onstittiona) and stattory intents# the -&reme Cort
$on$)ded that in a sitation where the &robationary stats o'er)a&s with a
fi;ed.term $ontra$t not specifically ,sed for the fi=ed term it offers# A+-&'.#
2B1 6<%4., 0664$# 8+&$0'5 0", -<# *&F#,-8#+&%, '<0+0'-#+ %* -<#
'%"-+0'- $46- /&2# 905.
NOTE1 ,n this instan$e therefore# the -$hoo) i))e!a))y dismissed the tea$hers
be$ase it sim&)y refsed to renew the em&)oyment $ontra$t. Be$ase the
tea$hers were nder a &robationary &eriod# it was in$mbent &on the -$hoo)
to ha'e e'a)ated said tea$hers# and to ha'e informed them of their fai)re to
2a)ify as re!)ar em&)oyees in a$$ordan$e with standards made ?nown to
them at the time of hirin!.
Fhi)e the -&reme Cort $an !rant that the standards were d)y
$ommni$ated to the tea$hers and $o)d be a&&)ied be!innin! the 1
st
trimester of the s$hoo) year 2000.2001# !)arin! and 'ery basi$ !a&s in the
s$hoo):s e'iden$e sti)) e;ist. T<# #F0'- -#+$6 %* -<# 6-0",0+,6 9#+# "#2#+
&"-+%,4'#, 06 #2&,#"'#> "#&-<#+ ,%#6 -<# #2&,#"'# 6<%9 <%9 -<#6#
6-0",0+,6 9#+# 088.&#, -% -<# -#0'<#+6. W&-<%4- -<#6# 8&#'#6 %*
#2&,#"'# -<# S48+#$# C%4+- <0, "%-<&"/ -% '%"6&,#+ 0", 8066 48%" 06
20.&, %+ &"20.&, *%+ #0'< %* -<# -#0'<#+6. I"#2&-03.5, -<# "%"-+#"#90. !%+
#**#'-&2#.5, -<# -#+$&"0-&%" %* #$8.%5$#"- %* #$8.%5##6 %"
8+%30-&%"0+5 6-0-46) .0':6 -<# 6488%+-&"/ *&",&"/ %* G46- '046# -<0- -<#
.09 +#D4&+#6 0",, <#"'#, &6 &..#/0..
NOTE2 9o hi!h)i!ht what the -&reme Cort meant by a fi;ed.term $ontra$t
specifically ,sed for the fi=ed term it offers# a re&)a$ement tea$her# for
e;am&)e# may be $ontra$ted for a &eriod of one year to temporarily ta?e the
&)a$e of a &ermanent tea$her on a one.year stdy )ea'e. 9he e;&iration of
the re&)a$ement tea$her:s $ontra$ted term# nder the $ir$mstan$es# )eads
to no &robationary stats im&)i$ations as she was ne'er em&)oyed on
&robationary basisI her em&)oyment is for a s&e$ifi$ &r&ose with &arti$)ar
fo$s on the term and with e'ery intent to end her tea$hin! re)ationshi& with
the s$hoo) &on e;&iration of this term. (/ercado" et al. vs. 6/6 omp,ter
olle.e ParaEa7,e ity" Inc. &%0 S$6 )%0 B)*%*C. Emphasis s,pplied.!
2.+ Fhi)e the &robationary em&)oyee is re2ired to be a&&raised of the standards
a!ainst whi$h his &erforman$e sha)) be assessed# -<#+# &6 <%9#2#+ "%
"##, -% &"*%+$ -<# 8+%30-&%"0+5 #$8.%5## -<0- <# <06 -% *%..%9
'%$80"5 +4.#6 0", +#/4.0-&%"6 C 64'< +#D4&+#$#"- 6-+0&"6 '+#,4.&-5.
(Philippine Daily In7,irer vs. /a.tibay" 2)0 S$6 122 B)**(C!.
3. TERM EMPLOYEES J those who are hired for a s&e$ifi$ &eriod# the arri'a) of the
date s&e$ified in the $ontra$t of whi$h atomati$a))y terminates the em&)oyer.
em&)oyee re)ationshi&. "Brent -$hoo) 's. 7=0C# 181 -C0A 302 B1(8(C# reiterated in
AMA Com&ter J Parana2e 's. Astria# /38 -C0A +38 B7o'ember 2003C%.
3.1 A $ontra$t of em&)oyment for a definite &eriod terminates by its own terms at the
end of s$h &eriod
3.2 9he de$isi'e determinant in term em&)oyment sho)d not be the a$ti'ities that the
em&)oyee is $a))ed &on to &erform# 34- -<# ,05 '#+-0&" 0/+##, 48%" 35 -<#
80+-&#6 *%+ -<# '%$$#"'#$#"- 0", -<# -#+$&"0-&%" %* -<#&+ #$8.%5$#"-
+#.0-&%".
%.% Criteria ,or ,i-ed term employment contracts so that the same will not
circumvent security o, tenure.
A. 9he fi;ed &eriod of em&)oyment was KNOWINGLY AND VOLUNTARILY
AGREED UPON by the &arties# withot any for$e# dress or im&ro&er
&ressre bein! bro!ht to bear &on the em&)oyee and absent any other
$ir$mstan$es 'itiatin! his $onsentI A7D
B. ,t satisfa$tori)y a&&ears that the em&)oyer and em&)oyee DEALT WITH EACH
OTHER ON MORE OR LESS E?UAL TERMS with no mora) dominan$e
whate'er bein! e;er$ised by the former on the )atter."P78C 's. 7=0C B>.0.
7o. (33+3# 31 Mar$h 1((3C and Brent -$hoo) 's. 70=C# 181 -C0A 302C
CASE
?4#6-&%" W<#-<#+ %+ "%- *&6<&"/ 3%0- '+#9 &",&2&,40..5 <&+#, %" 0 L8%+ 2&0G#M
306&6 9&-< '%"-+0'-6 8#+ -+&8 0+# -#+$ #$8.%5##6 %+ +#/4.0+ #$8.%5##6A L5"2&.
F&6<&"/ E"-#+8+&6#6, I"'. 26. A",+#6 G. A+&%.0, #- 0.., G.R. N%. 1B1EI7, 01 F#3+40+5 2012
9e;ta))y# the &ro'ision that@ >N6 a4o ay s,masan.-ayon na ma.lin.4od at .,mawa
n. m.a .awain san.-ayon sa pata4aran. >por via?eA na ma.m,m,la sa pa.alis sa
Navotas pap,nta sa pan.isdaan at pa.babali4 sa pondohan n. lantsa sa Navotas"
/etro /anilaA is for a fi;ed &eriod of em&)oyment. ,n the $onte;t# howe'er# of the
fa$ts that@ "1% the res&ondents were doin! tas?s ne$essari)y to =yn'i):s fishin!
bsiness with &ositions ran!in! from $a&tain of the 'esse) to bode.eroI "2% after the
end of a tri&# they wi)) a!ain be hired for another tri& with new $ontra$tsI and "3% this
arran!ement $ontined for more than ten years# the $)ear intention is to !o arond the
se$rity of tenre of the res&ondents as re!)ar em&)oyees. And res&ondents are so
by the e;&ress &ro'isions of the se$ond &ara!ra&h of Arti$)e 280# ths@ ;;; Pro'ided#
9hat any em&)oyee who has rendered at )east one year of ser'i$e# whether s$h
ser'i$e is $ontinos or bro?en# sha)) be $onsidered a re!)ar em&)oyee with res&e$t
to the a$ti'ity in whi$h he is em&)oyed and his em&)oyment sha)) $ontine whi)e s$h
a$ti'ity e;ists.6
7.B. ADA:- C0,9,QHD@ Do not a!ree with the reasonin! made by the -&reme Cort#
'i4.# a&&)i$ation of the $o))ati))a in Par 2 of Arti$)e 280# =abor Code. Fo))owin! the
do$trina) $ase of /ercado vs. N5$# said $o))ati))a sho)d on)y a&&)y to $asa)
em&)oyees# and not to the $)assifi$ation of &ro*e$t or seasona) em&)oyees in first
&ara!ra&h. ,f at a))# ar!ment that the term $ontra$t was not entered into by the
&arties on e2a) footin!# wo)d be more a&&ro&riate.
4. PRO(ECT EMPLOYEES J 9he &rin$i&a) test for determinin! whether &arti$)ar
em&)oyees are &ro&er)y $hara$teri4ed as M&ro*e$t em&)oyeesM as distin!ished from
Mre!)ar em&)oyeesM is whether or not the &ro*e$t em&)oyees were assi!ned to $arry
ot a Ms&e$ifi$ &ro*e$t or nderta?in!#M the dration and s$o&e of whi$h were s&e$ified
at the time the em&)oyees were en!a!ed for that &ro*e$t.
4.1 T<# .#"/-< %* 6#+2&'# %+ -<# +#-<&+&"/ %* '%"6-+4'-&%" 9%+:#+6 %" 0
8+%G#'---%-8+%G#'- 306&6 ,%#6 "%- '%"*#+ 48%" -<#$ +#/4.0+ #$8.%5$#"-
6-0-46, 6&"'# -<#&+ +#-<&+&"/ &6 %".5 0 "0-4+0. '%"6#D4#"'# %* -<# *0'- -<0-
#F8#+&#"'#, '%"6-+4'-&%" 9%+:#+6 0+# 8+#*#++#,. Dm&)oyees who are hired
for $arryin! ot a se&arate *ob# distin$t from the other nderta?in!s of the
$om&any# the scope and d,ration of which has been determined and made
4nown to the employees at the time of the employment# are &ro&er)y treated as
&ro*e$t em&)oyees and their ser'i$es may be )awf))y terminated &on the
$om&)etion of a &ro*e$t. -ho)d the terms of their em&)oyment fai) to $om&)y
with this standard# they $annot be $onsidered &ro*e$t em&)oyees. "<an*in
<ea'y ,ndstries 's. ,bane4 et.# a).# >.0. 130181# 21 Ane 2008.%
4.2 I",&'0-%+6 %* P+%G#'- E$8.%5$#"- &6 *%4", &" S#'-&%" 2.2!#) 0", !*) %*
DOLE D#80+-$#"- O+,#+ N%. 1E, S#+&#6 %* 1EE3, #"-&-.#, G4&,#.&"#6
G%2#+"&"/ -<# E$8.%5$#"- %* W%+:#+6 &" -<# C%"6-+4'-&%" I",46-+5# to wit@
>).) Indicators of pro?ect employment. - Either one or more of the followin.
circ,mstances" amon. others" may be considered as indicators that an employee is a
pro?ect employee.
(a! The d,ration of the specificFidentified ,nderta4in. for which the wor4er is en.a.ed
is reasonably determinable.
(b! S,ch d,ration" as well as the specific wor4Fservice to be performed" is defined in
an employment a.reement and is made clear to the employee at the time of hirin..
(c! The wor4Fservice performed by the employee is in connection with the partic,lar
pro?ectF,nderta4in. for which he is en.a.ed.
(d! The employee" while not employed and awaitin. en.a.ement" is free to offer his
services to any other employer.
(e! The termination of his employment in the partic,lar pro?ectF,nderta4in. is reported
to the Department of 5abor and Employment (DG5E! $e.ional Gffice havin.
?,risdiction over the wor4place within 1* days followin. the date of his separation
from wor4" ,sin. the prescribed form on employeesH
terminationsFdismissalsFs,spensions.
(f! 6n ,nderta4in. in the employment contract by the employer to pay completion
bon,s to the pro?ect employee as practiced by most constr,ction companies.
7.3 P4+#.5 P+%G#'- #$8.%5##6 J are those em&)oyed in $onne$tion with a &arti$)ar
$onstr$tion &ro*e$t.
Dffe$t@
"a% not entit)ed to se&aration &ay if terminated as a res)t of the $om&)etion of
the &ro*e$t or any &hase thereof in whi$h they are hiredI
"b% no &rior $)earan$e for termination is ne$essary# bt termination mst be
re&orted to D8=DI
"$% howe'er# if the &ro*e$t or &hase )asts for more than one "1% year# he may not
be terminated &rior to $om&)etion of &ro*e$t or &hase withot &re'ios
written $)earan$e from D8=D.
7.7 E$8.%5##6 *+%$ L03%+ P%%. .. those em&)oyed by a $onstr$tion $om&any
withot referen$e to any &arti$)ar &ro*e$t. May be frther $)assified into
8+%30-&%"0+5 0", +#/4.0+.
Dffe$t@
"a% ri!ht to or!ani4e and to $o))e$ti'e)y bar!ain# or *oin ran?.and.fi)e nion of the
$onstr$tion $om&any may not be $rtai)edI
"b% $om&)etion of &ro*e$t or &hase wi)) not se'er em&)oyer.em&)oyee
re)ationshi&# as they are to be $onsidered em&)oyees for an indefinite term.
7.= R#8%+- %* -#+$&"0-&%" %* 8+%G#'- #$8.%5#+6 '%$84.6%+5. J Fai)re to fi)e
termination re&orts# &arti$)ar)y on the $essation of &etitioner:s em&)oyment# was
an indi$ation that the &etitioner was not a &ro*e$t em&)oyee bt a re!)ar
em&)oyee. >oma 's. Pam&)ona P)antation# ,n$.# //3 -C0A 12+ "2003%
7.H CASES
W&.*+#,% A+%, R%"&.% T&+%., #- 0.. 26. NLRC, F%4+-< D&2&6&%", #- 0.., G.R. N%.
1I7IE2. 0I M0+'< 2012 -- T<# .#"/-< %* 6#+2&'# %+ -<# +#-<&+&"/ %*
'%"6-+4'-&%" 9%+:#+6 %" 0 8+%G#'---%-8+%G#'- 306&6 ,%#6 "%- '%"*#+ 48%"
-<#$ +#/4.0+ #$8.%5$#"- 6-0-46, 6&"'# -<#&+ +#-<&+&"/ &6 %".5 0 "0-4+0.
'%"6#D4#"'# %* -<# *0'- -<0- #F8#+&#"'#, '%"6-+4'-&%" 9%+:#+6 0+#
8+#*#++#,. Dm&)oyees who are hired for $arryin! ot a se&arate *ob# distin$t
from the other nderta?in!s of the $om&any# the scope and d,ration of which
has been determined and made 4nown to the employees at the time of the
employment# are &ro&er)y treated as &ro*e$t em&)oyees and their ser'i$es may
be )awf))y terminated &on the $om&)etion of a &ro*e$t. -ho)d the terms of their
em&)oyment fai) to $om&)y with this standard# they $annot be $onsidered &ro*e$t
em&)oyees.
CONTRA D.M. C%"64"G& 26. E6-#.&-% (0$&", G.R. N%. 1E2=17, 1B A8+&. 2012.
.. Fe a!ree with the CA. ,n =i!an4a '. 0B= -hi&yard Cor&oration where this
Cort he)d that 5BaCssmin!# withot !rantin!B#C that BtheC &etitioner was initia))y
hired for s&e$ifi$ &ro*e$ts or nderta?in!s# the re&eated re.hirin! and $ontinin!
need for his ser'i$es for o'er ei!ht "8% years ha'e ndeniab)y made him a
re!)ar em&)oyee.6 Fe find the =i!an4a r)in! s2are)y a&&)i$ab)e to this $ase#
$onsiderin! that for a)most 31 years# DMC, had re&eated)y# $ontinos)y and
s$$essi'e)y en!a!ed Aamin:s ser'i$es sin$e he was hired on De$ember 13#
1(18 or for a tota) of 38 times Q as shown by the s$hed)e of &ro*e$ts sbmitted
by DMC, to the )abor arbiterB and three more &ro*e$ts or en!a!ements added by
Aamin# whi$h he $)aimed DMC, intentiona))y did not in$)de in its s$hed)e so as
to ma?e it a&&ear that there were wide !a&s in his en!a!ements. P;; Fhi)e the
$ontra$ts indeed show that Aamin had been en!a!ed as a &ro*e$t em&)oyee#
there was an a)most nbro?en strin! of Aamin:s rehirin! from De$ember 13#
1(18 & to the termination of his em&)oyment on Mar$h 20# 1(((. Fith or r)in!
that Aamin had been a re!)ar em&)oyee# the isse of whether DMC, sbmitted
termination of em&)oyment re&orts# &rsant
to Po)i$y ,nstr$tions 7o. 20 "Hndated
B+1C
%# as s&erseded by D8=D De&artment
8rder 7o. 1( "series of 1((3%# has be$ome a$ademi$. T% 6#- -<# +#'%+,6
6-+0&/<-, DMCI &",##, 643$&--#, +#8%+-6 -% -<# DOLE 34- 06 8%&"-#, %4- 35
(0$&", -<# 643$&66&%"6 6-0+-#, %".5 &" 1EE2.
N7BO
DMCI #F8.0&"#, -<0- &-
643$&--#, -<# #0+.&#+ +#8%+-6 !1EB2), 34- &- .%6- 0", "#2#+ +#'%2#+#, -<#
+#8%+-6. ,t re$onstitted the )ost re&orts and sbmitted them to the D8=D in
8$tober 1((2I ths# the dates a&&earin! in the re&orts.
EF%,46 I"-#+"0-&%"0. C%"6-+4'-&%" C%+8%+0-&%", #- 0.. 2. G4&..#+$%
B&6'%'<%, #- 0.., G.R. N%. 1HH10E, 23 F#3+40+5 2011 .'' Petitioner is a d)y
)i$ensed )abor $ontra$tor en!a!ed in &aintin! hoses and bi)din!s.
0es&ondents# former &ainters of the &etitioner# fi)ed an i))e!a) dismissa) $ase
a!ainst &etitioner. 9he Cort r)ed that there are two ty&es of em&)oyees in the
$onstr$tion indstry. 9he first is referred to as &ro*e$t em&)oyees or those
em&)oyed in $onne$tion with a &arti$)ar $onstr$tion &ro*e$t or &hase thereof
and s$h em&)oyment is $oterminos with ea$h &ro*e$t or &hase of the &ro*e$t to
whi$h they are assi!ned. 9he se$ond is ?nown as non.&ro*e$t em&)oyees or
those em&)oyed withot referen$e to any &arti$)ar $onstr$tion &ro*e$t or &hase
of a &ro*e$t. 0es&ondents be)on!ed to the se$ond ty&e and are $)assified as
re!)ar em&)oyees of &etitioner. I- &6 '.#0+ *+%$ -<# +#'%+,6 %* -<# '06# -<0-
9<#" %"# 8+%G#'- &6 '%$8.#-#,, +#68%",#"-6 9#+# 04-%$0-&'0..5
-+0"6*#++#, -% -<# "#F- 8+%G#'- 090+,#, -% 8#-&-&%"#+6. T<#+# 906 "%
#$8.%5$#"- 0/+##$#"- /&2#" -% +#68%",#"-6 9<&'< '.#0+.5 68#..#, %4- -<#
,4+0-&%" %* -<#&+ #$8.%5$#"- 0", -<# 68#'&*&' 9%+: -% 3# 8#+*%+$#, 0",
-<#+# &6 "% 8+%%* -<0- -<#5 9#+# $0,# 090+# %* -<#6# -#+$6 0", '%",&-&%"6
%* -<#&+ #$8.%5$#"- 0- -<# -&$# %* <&+&"/. 9hs# it is now too )ate for &etitioner
to $)aim that res&ondents are &ro*e$t em&)oyees whose em&)oyment is
$oterminos with ea$h &ro*e$t or &hase of the &ro*e$t to whi$h they are
assi!ned.
/. SEASONAL EMPLOYEES .. those hired for wor? or ser'i$es whi$h is seasona) in
natre# and the em&)oyment is for the dration of the season
1. CASUAL EMPLOYEES J those who are hired to &erform wor? or ser'i$e whi$h is
mere)y in$identa) to the bsiness of the em&)oyer. Any $asa) em&)oyee who has
rendered at )east one "1% year of ser'i$e# whether it be $ontinos or bro?en# sha)) be
$onsidered a re!)ar em&)oyee with res&e$t to the a$ti'ity for whi$h he is em&)oyed#
and his em&)oyment sha)) $ontine whi)e s$h a$ti'ity e;ists.
EMPLOYEE CLASSIFICATION AS TO RANK
7. MANAGERIAL EMPLOYEES J those 'ested with &owers or &rero!ati'es to )ay down
and e;e$te mana!ement &o)i$ies andKor to hire# transfer# ss&end# )ay.off# re$a))
em&)oyees. "Art. 212# &ar. M# =abor Code%
I.1 CONFIDENTIAL EMPLOYEES D%'-+&"# %* "#'#660+5 &$8.&'0-&%" 0",P%+
'%"*&,#"-&0. #$8.%5## +4.# +#&-#+0-#,.
Confidentia) em&)oyees are those who@ "1% assist or a$t in a $onfidentia)
$a&a$ity# "2% to &ersons who form)ate# determine# and effe$tate mana!ement
&o)i$ies in the fie)d of )abor re)ations. 9he two $riteria are $m)ati'e# and both
mst be met if an em&)oyee is to be $onsidered a $onfidentia) em&)oyee Q e.!.#
the $onfidentia) re)ationshi& mst e;ist between the em&)oyee and his
s&er'isor# and the s&er'isor mst hand)e the &res$ribed res&onsibi)ities
re)atin! to )abor re)ations. 9he e;$)sion from bar!ainin! nits of the em&)oyees
who# in the norma) $orse of their dties# be$ome aware of mana!ement
&o)i$ies re)atin! to )abor re)ations is a &rin$i&a) ob*e$ti'e so!ht to be
a$$om&)ished by the 5$onfidentia) em&)oyee r)e6. T4"05 "0 P0/:0:0&60 "/
M0"//0/090 60 A6&0 B+#9#+5 26. A6&0 B+#9#+5, G.R. N%. 1H202=, 03
A4/46- 2010.> See alsoI San /i.,el orporation S,pervisors and E=empt Employees
<nion vs. 5a.,esma" )(( S$6 1(* B%''(C.
8. SUPERVISORY EMPLOYEES J those who# in the interest of mana!ement# effe$ti'e)y
re$ommend s$h mana!eria) a$tions if the e;er$ise of s$h athority is not mere)y
rotinary or $)eri$a) in natre# bt re2ires se of inde&endent *d!ment. "Art. 212#
&ar. 7# =abor Code%
(. RANK-AND-FILE EMPLOYEES - A)) other em&)oyees not fa))in! within the definition
of 5mana!eria)6 or 5s&er'isory6 em&)oyees# are $onsidered ran?.and.fi)e em&)oyees
for &r&oses of Boo? G of the =abor Code.
FRAMEWORK@
>enera) r)e@ Dm&)oyment is deemed re!)ar
D;$e&tion@ Probationary -easona)
9erm Casa)
Pro*e$t
D;$e&tion to e;$e&tion@
Probationary em&)oyees a))owed to wor? after &robn. &eriod
Casa) wor?ers renderin! ser'i$e for more than one year
9erm em&)oyee a))owed to wor? after term
Pro*e$t em&)oyee a))owed to wor? after &ro*e$t withot any $ontra$t
F. INDEPENDENT CONTRACTORSHIP ARRANGEMENTS
VS. LABOR ONLY CONTRACTING
E$8.%5##6 %* 0" &",#8#",#"- '%"-+0'-%+ 0+# "%- 5%4+ #$8.%5##6.
F.1 VALID INDEPENDENT CONTRACTING
OR SUB-CONTRACTING ARRANGEMENTS
Arti$)e 101# =BI ,00 -808B3I
ELEMENTS !MEMORY AID I ARM FREE CAPITAL TEMWORK RRB)
9here is a *ob.$ontra$tin! &ermissib)e by )aw where the $ontra$torKa!en$y $arries on
an INDEPENDENT bsiness and nderta?es the $ontra$t wor? on his ACCOUNT#
nder his own RESPONSIBILITY# sin! his own MANNER AND METHODS,
FREE from the $ontro) of the &rin$i&a) in a)) matters $onne$ted with the &erforman$e
of wor? e;$e&tin! the res)ts thereof.
<e has his own CAPITAL in the form of TOOLS, E?UIPMENT, MACHINERY,
WORK PREMISES, and that the a!reement between the $ontra$tor
and &rin$i&a) assres the former:s em&)oyees of ALL RIGHTS AND BENEFITS
4",#+ -<# .09.
F.2 ELEMENTS OF LABOR-ONLY CONTRACTING PROHIBITED
UNDER THE LAW NNO CAP DIRECT CONTROLO -- Phi)i&&ine Air)ines
's. =i!an# /+8 -C0A 181 "2008%.
9here is )abor.on)y $ontra$tin! where the $ontra$tor or sb.$ontra$tor mere)y re$rits#
s&&)ies or &)a$es wor?ers to &erform a *ob# wor? or ser'i$e for a &rin$i&a).
TWO WAYS OF PROVING LABOR-ONLY CONTRACTING
For )abor.on)y to e;ist# -e$. / of De&artment 8rder 7o. 18.02 re2ires any two of the
e)ements to be &resent# 'i4.@
9he $ontra$tor or sb.$ontra$tor DOES NOT HAVE SUBSTANTIAL
CAPITAL or in'estment to a$ta))y &erform the *ob# wor? or ser'i$e nder
its own a$$ont and res&onsibi)ityI and the em&)oyees re$rited# s&&)ied or
&)a$ed by s$h $ontra$tors are &erformin! a$ti'ities whi$h are DIRECTLY
RELATED to the main bsiness of the &rin$i&a)I
OR
9he C8790AC980 has NO CONTROL o'er the $ond$t of the wor? to be done
by his em&)oyees.
9o em&hasi4e# a findin! that a *ob $ontra$tor is a )abor.on)y $ontra$tor is e2i'a)ent to
de$)arin! that there is an em&)oyer.em&)oyee re)ationshi& between the $om&any and the
em&)oyees of the )abor.on)y $ontra$tor.
2
9his is be$ase the )abor.on)y $ontra$tor is
$onsidered as a mere a!ent of the DMP=8ED0 and the )atter is res&onsib)e to the
em&)oyees of the )abor.on)y $ontra$tor as if s$h em&)oyees had been dire$t)y em&)oyed
by the &rin$i&a) em&)oyer. "6lviado et. al. vs. Procter J #amble" and Promm #emm" #.$.
No. %&*2*&" *' /arch )*%*
F.3 EFFECT OF LABOR-ONLY CONTRACTING AND VALID (OB
CONTRACTING AGREEMENTS
-ystems# +0/ -C0A /3( B10 A)y 2003C
I* .03%+ %".5 '%"-+0'-&"/@ i))e!a). 9he em&)oyer is deemed the D,0DC9 em&)oyer and is
made )iab)e to the em&)oyees of the $ontra$tor for a more $om&rehensi'e &r&ose
"wa!es# monetary $)aims# and a)) other benefits in the =abor Code s$h as
---KMedi$areKPa!.,bi!%. 9he )abor.on)y $ontra$tor is deemed mere)y an a!ent.
I* G%3-'%"-+0'-&"/@ )e!a). 9he em&)oyer is $onsidered an ,7D,0DC9 DMP=8ED0# and is
made so)idari)y )iab)e with the $ontra$tor to the em&)oyees of the )atterr for a more
)imited &r&ose# 'i4.@ &ayment of n&aid wa!es and other monetary $)aims# in$)din!
13
th
month &ay# ser'i$e in$enti'e )ea'e &ay. "7ew >o)den Bi)ders $ase%
F.7 SALIENT FEATURES OF DEPARTMENT ORDER NO. 1B-02,
SERIES 2002.
MANDATORY REGISTRATION OF INDEPENDENT CONTRACTORS "D.8. 18# -11% .
Dstab)ishment of a re!istration system to !o'ern $ontra$tin! arran!ements. 0e!istration
of the $ontra$tors and sb.$ontra$tors sha)) be ne$essary for &r&oses of estab)ishin!
2
,ndstria) 9imer Cor&.# 's. 7=0C# 11( -C0A 3+1
.. -an Mi!e) Cor&. 's. MAD0C ,nte!rated
an effe$ti'e )abor mar?et information and monitorin!. Fai)re to re!ister sha)) !i'e rise to
a &resm&tion that $ontra$tor is en!a!ed in =AB80 87=E C8790AC9,7>
RE?UIREMENTS FOR REGISTRATION "&er D8=D A&&)i$ation Form%
7ame and bsiness address of $ontra$tor
7ames and addresses of the offi$ers of the $ontra$tor
7atre of the $ontra$tor:s bsiness# and the indstry where the $ontra$tor see?s to o&erate
7mber of re!)ar wor?ersI )ist of $)ients# if anyI nmber of &ersonne) assi!ned to ea$h $)ient and
the ser'i$es &ro'ided to the $)ient
Des$ri&tion of the &hases of the $ontra$t# and nmber of em&)oyees $o'ered in ea$h &hase# when
a&&ro&riate
Co&y of adited finan$ia) statements "$om&aniesK&artnershi&K$oo&erati'e or nion%# or ,90 "so)e
&ro&rietorshi&%
Certified $o&y of the $ertifi$ate of re!istration of firm or bsiness name from the
-e$rities and D;$han!e Commission# De&artment of 9rade and ,ndstry# Coo&erati'e
De'e)o&ment Athority or from the D8=D
Certified $o&y of the )i$ense or bsiness &ermit issed by the )o$a) !o'ernment nit or nits where
the $ontra$tor or sb$ontra$tor o&erates.
9he a&&)i$ation sha)) be 'erified# and sha)) $ontain an nderta?in! that the $ontra$tor or sb.
$ontra$tor sha)) abide by a)) a&&)i$ab)e )abor )aws and re!)ations
OTHER OBLIGATIONS OF INDEPENDENT CONTRACTOR
Dty to &rod$e $o&y of the $ontra$t between the &rin$i&a) and the $ontra$tor# if re2ired
drin! re!)ar ins&e$tionI a)so# the $ontra$tor of em&)oyment of the $ontra$ta) em&)oyee
Anna) re&ortin! of the re!istered $ontra$tors not )ater than 1/
th
of Aanary of e'ery
year. 0e&ort sha)) in$)de@ "a% )ist of $ontra$ts entered with &rin$i&a) drin! the
sb*e$t re&ortin! &eriodI "b% nmber of wor?ers $o'ered by ea$h $ontra$t with
&rin$i&a)I and U sworn nderta?in! that the mandatory !o'ernment.im&osed benefits
"---# <DMF# Phi)hea)th# DCC and withho)din! ta;es% de the $ontra$ta) em&)oyees
ha'e been made drin! the sb*e$t re&ortin! &eriod.
EFFECT OF NON-COMPLIANCE C DELISTING OF CONTRACTORS
F.= NEW RE?UIREMENTS UNDER DEPT. ORDER NO. 1B-A, SERIES
2011 !17 NOV 2011).
1. De$)aration of the ,nde&endent Contra$tor:s "#- *&"0"'&0. '%"-+0'-&"/
'080'&-5 "7FCC% to be in$or&orated in the ser'i$e $ontra$t "se$ 3 B!C%
LCURRENT ASSETS LESS CURRENT LIABILITIES X K NCONTRACT DURATIONO
E?UIVALENT, MINUS VALUE OF ALL OUTSTANDING, ON-GOING OR
STARTING PRO(ECTSM
where O V 10# if $ontra$t is one year or )essI
= 1/# for more than one "1% year & to two "2% yearsI
= 20# for more than two "2% years
2. -bstantia) $a&ita) of at )east T<+## M&..&%" P#6%6 !P3,000,000.00) in $ase of
$or&orations# &artnershi&s# $oo&erati'es or sin!)e &ro&rietorshi& "se$ 13B)C%
3. R#/&6-+0-&%" *## %* T9#"-5 F&2# T<%460", P#6%6 !P2=,000.00) &)s renewa) fee of
9wenty Fi'e 9hosand Pesos "P2/#000.00% e'ery three years "se$tions 1( and 21%
F.H THE NEGATIVE LIST WHAT CANNOT BE VALIDLY SUB-
CONTRACTED OUTA !D#8-. O+,#+ N%. 1B-02 06 0$#",#, 35 D#8- O+,#+
N%. 1B-A, 6#+&#6 %* 2011)
1. Contra$tin! ot of a *ob# wor? or ser'i$e when not done in !ood faith and not *stified by
the e;i!en$ies of the bsiness and the same res)ts in the termination of re!)ar
em&)oyees and red$tion of wor? hors or red$tion or s&)ittin! of the bar!ainin! nit
2.Contra$tin! ot to a 5Cabo.6
Hnder the 5$abo6 system# "a% the nion is the inde&endent $ontra$tor that en!a!es the
ser'i$es of its members who are se$onded to the &rin$i&a)I "b% the $har!es a!ainst the
&rin$i&a) are made by the HnionI and U the wor?ers are &aid on nion &ayro)) withot
inter'ention of the &rin$i&a).
3.9a?in! nde ad'anta!e of the e$onomi$ sitation or )a$? of bar!ainin! stren!th of the
$ontra$ta) em&)oyee# or nderminin! his se$rity of tenre or basi$ ri!hts# or
$ir$m'entin! the &ro'isions of re!)ar em&)oyment# in any of the fo))owin! instan$es@
i% ,n addition to his assi!ned fn$tions# re2irin! the $ontra$ta) em&)oyee to &erform
fn$tions whi$h are $rrent)y bein! &erformed by the re!)ar em&)oyees of the
&rin$i&a) or of the $ontra$tor or sb$ontra$torI
ii% 0e2irin! him to si!n# as a &re$ondition to em&)oyment or $ontined em&)oyment# an
antedated resi!nation )etterI a b)an? &ayro))I a wai'er of )abor standards in$)din!
minimm wa!es and so$ia) or we)fare benefitsI or a 2it$)aim re)easin! the &rin$i&a)#
$ontra$tor or sb$ontra$tor from any )iabi)ity as to &ayment of ftre $)aimsI and
iii) 0e2irin! him to si!n a $ontra$t fi;in! the &eriod of em&)oyment to a term shorter
than the term of the $ontra$t between the &rin$i&a) and the $ontra$tor or
sb$ontra$tor# n)ess the )atter $ontra$t is di'isib)e into &hases for whi$h
sbstantia))y different s?i))s are re2ired and this is made ?nown to the em&)oyee at
the time of en!a!ement.6
+.Contra$tin! ot of a *ob# wor? or ser'i$e thro!h an ,7.<8H-D A>D7CE
/.Contra$tin! ot of a *ob# wor? or ser'i$e dire$t)y re)ated to the bsiness or o&eration of the
&rin$i&a) by reason of a stri?e or )o$?ot whether a$ta) or imminent.
1.Contra$tin! ot of a *ob# wor? or ser'i$e bein! &erformed by nion members when s$h
wi)) interfere with# restrain or $oer$e em&)oyees in the e;er$ise of their ri!hts to se)f.
or!ani4ation as &ro'ided in Art. 2+8 "$% of the =abor Code# as amended.
NEW PROHIBITIONS TO THE ORIGINAL NEGATIVE LIST PROVIDED UNDER DEPT
ORDER 1B-A SERIES OF 2011 !SECTION I)
7. REPEATED HIRING OF EMPOYEES UNDER AN EMPLOYMENT CONTRACT of short
dration or nder a ser'i$e a!reement of short dration with the same or different
$ontra$tors# whi$h $ir$m'ents the =abor Code &ro'isions on se$rity of tenre
8. 0e2irin! em&)oyees nder a sb.$ontra$tin! arran!ement to si!n a $ontra$t fi;in! the
&eriod of em&)oyment to a term SHORTER THAN THE TERM OF THE SERVICE
AGREEMENT, e;$e&t when the $ontra$t is di'isib)e into &hases ;;; and this is made
?nown to the em&)oyee
(.0efsa) to &ro'ide a $o&y of the -er'i$e A!reement and em&)oyment $ontra$ts between the
$ontra$tor and em&)oyees# to the &rin$i&a):s $ertified bar!ainin! a!ent.
10. Dn!a!in! or maintainin! by the &rin$i&a) of sb$ontra$ted em&)oyees IN EXCESS OF
THOSE PROVIDED FOR IN APPLICABLE COLLECTIVE BARGAINING AGREEMENTS
OR SET BY THE INDUSTRY TRIPARTITE COUNCIL !ITC)
F.I SYNTHESIS AND CLARIFICATION OF DOCTRINES ON (OB-
CONTRACTING
3.1 IMPORTANT BRION CASE COCA-COLA BOTTLERS VS. DELA CRUZ ET AL, G.R.
N%. 1B7EII, 0I D#'#$3#+ 200E !BRION, ()# .. C%"-+0'-&"/ %4- &6 20.&, 06 0"
#F#+'&6# %* $0"0/#$#"- 8+#+%/0-&2# *%+ 06 .%"/ 06 &- '%$8.&#6 9&-< -<# .&$&-6
0", 6-0",0+,6 8+%2&,#, 35 -<# L03%+ C%,#. Dssentia))y# there mst be &roof of
$a&ita)i4ation# and of $ontro) o'er his em&)oyees on the &art of the inde&endent
$ontra$tor. ,n the $ase the -&reme Cort said@
5Contra$tin! and sb.$ontra$tin! are MhotM )abor isses for two reasons. 9he first is
that *ob $ontra$tin! and )abor.on)y $ontra$tin! are te$hni$a) =abor Code $on$e&ts
that are easi)y misnderstood. For one# there is a )ot of )ay misnderstandin! of what
?ind of $ontra$tin! the =abor Code &rohibits or a))ows. 9he se$ond# e$hoin! the $ry
from the )abor se$tor# is that the =abor Code &ro'isions on $ontra$tin! are b)atant)y
and &er'asi'e)y 'io)ated# effe$ti'e)y defeatin! wor?ers: ri!ht to se$rity of tenre.
9his Cort# thro!h its de$isions# $an dire$t)y he)& address the &rob)em of
misnderstandin!. 9he se$ond &rob)em# howe'er# )ar!e)y re)ates to im&)ementation
isses that are otside the Cort:s )e!itimate s$o&e of a$ti'itiesI the Cort $an on)y
&assi'e)y address the &rob)em thro!h the $ases that are bro!ht before s. Dither
way# howe'er# the need is for $)ear de$isions that the wor?ers# most es&e$ia))y# wi))
easi)y nderstand and a&&re$iate. Fe reso)'e the &resent $ase with these tho!hts
in mind.
9he )aw 0..%96 $ontra$tin! and sb$ontra$tin! in'o)'in! ser'i$es bt '.%6#.5
+#/4.0-#6 these a$ti'ities for the &rote$tion of wor?ers. 9hs# an em&)oyer $an
$ontra$t ot &art of its o&erations# &ro'ided it $om&)ies with the )imits and standards
&ro'ided in the Code and in its im&)ementin! r)es. ;;; ,n stri$t)y )ayman:s terms# a
manfa$trer $an se)) its &rod$ts on its own# or a))ow $ontra$tors# inde&endent)y
o&eratin! on their own# to se)) and distribte these &rod$ts in a manner that does
not 'io)ate the re!)ations. From the terms of the abo'e.2oted D.8. 18.02# the
)e!itimate *ob $ontra$tor mst ha'e the $a&ita)i4ation and e2i&ment to nderta?e the
sa)e and distribtion of the manfa$trer:s &rod$ts# and mst do it on its own sin!
its own means and se))in! methods.;;;6
IMPORTANT BRION CASE T#$&' A4-%$%-&2# P<&.6. V6. T#$&' A4-%$%-&2#
P<&.6 I"'. E$8.%5##6 U"&%" C FFW, G.R. N%. 1BHEH=, 23 D#'#$3#+ 200E. J
Com&any is en!a!ed in the manfa$tre of e)e$troni$ bra?e systems and $omfort
body e)e$troni$s for atomoti'e 'ehi$)es. Hnion members are re!)ar ran?.and.fi)e
em&)oyees wor?in! in warehose re$ei'in! se$tion# raw materia)s# and finished
!oods se$tion. Mana!ement howe'er $ontra$ts ot forwardin!# &a$?in!# )oadin! of
raw materia)s and finished !oods to inde&endent $ontra$tors. ,sse raised on 'a)idity
of $ontra$tin! ot of said *obs# to the detriment of the re!)ar wor?ers. 9he -&reme
Cort r)ed in this manner@
>6s forwarders they act as travel a.ents for car.o. They specialize in arran.in. transport and
completin. re7,ired shippin. doc,mentation of respondentHs companyHs finished prod,cts.
They provide c,stom cratin. and pac4in. desi.ned for specific needs of respondent
company. These frei.ht forwarders are act,ally actin. as a.ents for the company in movin.
car.o to an overseas destination. These a.ents are familiar with the import r,les and
re.,lations" the methods of shippin." and the doc,ments related to forei.n trade. They
recommend the pac4in. methods that will protect the merchandise d,rin. transit. Krei.ht
forwarders can also reserve for the company the necessary space on a vessel" aircraft" train
or tr,c4.
Si.nificantly" both the vol,ntary arbitrator and the 6 reco.nized that the petitioner was within
its ri.ht in enterin. the forwardin. a.reements with the forwarders as an e=ercise of its
mana.ement prero.ative. The petitionerHs declared ob?ective for the arran.ement is to
achieve .reater economy and efficiency in its operations 9 a ,niversally accepted b,siness
ob?ective and standard that the ,nion has never 7,estioned. In /eralco v. L,is,mbin."
)2
we
?oined this ,niversal reco.nition of o,tso,rcin. as a le.itimate activity when we held that a
company can determine in its best ?,d.ment whether it sho,ld contract o,t a part of its wor4
for as lon. as the employer is motivated by good ,aith/ the contractin. is not for p,rposes of
circumventing the law/ and does not involve or be the result o, malicious or arbitrary
action.
G,r own e=amination of the a.reement shows that the forwardin. arran.ement complies with
the re7,irements of 6rticle %*&
)&
of the 5abor ode and its implementin. r,les.
)(
0o
reiterate, no evidence or argument 1uestions the company2s basic ob3ective o,
achieving 4greater economy and e,,iciency o, operations.4 This" to o,r mind" .oes a lon.
way to ne.ate the presence of bad faith. The forwardin. arran.ement has been in place
since %''0 and no evidence has been presented showin. that any re.,lar employee has
been dismissed or displaced by the forwarders; employees since then. No evidence li5ewise
stands be,ore us showing that the outsourcing has resulted in a reduction o, wor5
hours or the splitting o, the bargaining unit 6 e,,ects that under the implementing rules
o, +rticle 1#7 o, the *abor Code can ma5e a contracting arrangement illegal. The other
re7,irements of 6rticle %*&" on the other hand" are simply not material to the present petition.
Th,s" on the whole" we see no evidence or ar.,ment effectively showin. that the o,tso,rcin.
of the forwardin. activities violate o,r labor laws" re.,lations" and the parties; -6"
specifically that it interfered with" restrained or coerced employees in the e=ercise of their
ri.hts to self-or.anization as provided in Section &" par. (f! of the implementin. r,les.
7.2 NOT ASKED IN 2011 AND 2012 BAR. T<# .09 0", &-6 &$8.#$#"-&"/ +4.#6
+#'%/"&1# -<0- $0"0/#$#"- $05 +&/<-*4..5 #F#+'&6# &-6 8+#+%/0-&2#6 &"
,#-#+$&"&"/ 9<0- 0'-&2&-&#6 $05 3# '%"-+0'-#, %4-, REGARDLESS OF
WHETHER SUCH ACTIVITY IS PERIPHERAL OR CORE IN NATURE. "6lviado et.
al. vs. Procter J #amble" and Promm #emm" #.$. No. %&*2*&" *' /arch )*%*" Del
astillo" +!.
,n the said $ase of A)'iado 's. Pro$tor T >amb)e (s,pra.!# the -&reme Cort noted
that the $om&any Pro$ter T >amb)e was &rin$i&a))y en!a!ed in the manfa$tre and
&rod$tion of different $onsmer and hea)th &rod$ts# whi$h it se))s on a who)esa)e
basis to 'arios s&ermar?ets and distribtors. 9o enhan$e $onsmer awareness
and a$$e&tan$e of the &rod$ts# PT> entered into $ontra$ts with Promm.>em and
-AP- for the &romotion and mer$handisin! of its &rod$ts.6
,n denyin! the $)aims by the $om&)ainants that they were em&)oyees of Pro$ter T
>amb)e# and not of the *ob $ontra$tors# the -&reme Cort r)ed@
>Clearly, the law and its implementing rules allow contracting
arrangements ,or the per,ormance o, speci,ic 3obs, wor5s or services.
Indeed, it is management prerogative to ,arm out any o, its activities,
regardless o, whether such activity is peripheral or core in nature.
However, in order ,or such outsourcing to be valid, it must be made to
an independent contractor because the current labor rules e-pressly
prohibit labor'only contracting. P;;.
In the instant case" the financial statements of Promm-#em show that it has
a,thorized capital stoc4 of P% million and a paid-in capital" or capital available for
operations" of P2**"***.** as of %''*. It also has lon. term assets worth
PM1)"0'2.)0 and c,rrent assets of P(%'"*M).1). Promm-#em has also proven that
it maintained its own wareho,se and office space with a floor area of 0(* s7,are
meters. It also had ,nder its name three re.istered vehicles which were ,sed for its
promotionalFmerchandisin. b,siness. Promm-#em also has other
clients aside from PJ#. <nder the circ,mstances" we find that Promm-#em has
s,bstantial investment which relates to the wor4 to be performed. These factors
ne.ate the e=istence of the element specified in Section 2(i! of DG5E Department
Grder No. %0-*).
The records also show that Promm-#em s,pplied its complainant-wor4ers with the
relevant materials" s,ch as mar4ers" tapes" liners and c,tters" necessary for them to
perform their wor4. Promm-#em also iss,ed ,niforms to them. It is also relevant to
mention that Promm-#em already considered the complainants wor4in. ,nder it as
its re.,lar" not merely contract,al or pro?ect" employees. This circ,mstance ne.ates
the e=istence of element (ii! as stated in Section 2 of DG5E Department Grder No.
%0-*)" which spea4s of contract,al employees. This" f,rthermore" ne.ates 9 on the
part of Promm-#em 9 bad faith and intent to circ,mvent labor laws which factors
have often been tippin. points that lead the o,rt to stri4e down the employment
practice or a.reement concerned as contrary to p,blic policy" morals" .ood c,stoms
or p,blic order.6 !+lviado et. al. vs. 8rocter 9 Gamble, and 8romm Gemm, G.R.
No. 17##7, #: March $#1#/ citations omitted. )mphasis supplied.)
,t was frther reiterated by the -&reme Cort in the same $ase of A)'iado that where
W)abor.on)y: $ontra$tin! e;ists# the =abor Code itse)f estab)ishes an em&)oyer.
em&)oyee re)ationshi& between the em&)oyer and the em&)oyees of the W)abor.on)y:
$ontra$tor.M 9he statte estab)ishes this re)ationshi& for a $om&rehensi'e &r&ose@ to
&re'ent a $ir$m'ention of )abor )aws. 9he $ontra$tor is $onsidered mere)y an a!ent
of the &rin$i&a) em&)oyer and the )atter is res&onsib)e to the em&)oyees of the )abor.
on)y $ontra$tor as if s$h em&)oyees had been dire$t)y em&)oyed by the &rin$i&a)
em&)oyer.
7.3 HOWEVER, PRELIMINARY PRESUMPTION IS THAT CONTRACTOR IS LABOR-
ONLY CONTRACTING UNLESS s$h $ontra$tor o'er$omes the brden of &ro'in!
that it has sbstantia) $a&ita)# in'estment# too)s and the )i?e. "G0+,#" %* M#$%+&#6
P0+: 0", L&*# P.0" 26. NLRC 2
",
D&2&6&%", GR 1H02IB, 0B F#3 2012, HH= SCRA
2E3# A. Mendo4a# $itin! 3O Cor&oration 's. 7=0C# >0 1+8+(0# 22 7o' 2001# /03
-C0A /0(# /23%
9hs@ L03%+ %".5 '%"-+0'-&"/ 4",#+ S#'. = %* D#80+-$#"- O+,#+ N%. 1B-02
+#D4&+#6 0"5 -9% %* -<# #.#$#"-6 -% 3# 8+#6#"-, 2&1.
(a) 9he $ontra$tor has 78 -HFF,C,D79 CAP,9A=# and the em&)oyees s&&)ied to
the C8MPA7E are &erformin! wor? whi$h are D,0DC9=E 0D=A9DD to the
&rin$i&a) bsiness bsiness of the so.$a))ed ,ndire$t em&)oyerI OR
"b% 9he em&)oyer has 78 C87908= o'er the $ond$t of the wor? to be done by the
$ontra$tor andKor his em&)oyees.
NOTE A $oo&erati'e may )i?ewise en!a!e in sb.$ontra$tin! arran!ements bt it
mst $om&)y with the re2irements for an inde&endent $ontra$tor. 9he fa$t that it was
a d)y re!istered $oo&erati'e does not &re$)de the &ossibi)ity that it was en!a!ed in
)abor.on)y $ontra$tin! as $onfirmed by the findin!s of the 0e!iona) Dire$tor. "N%+:&6
T+0,&"/ C%+8%+0-&%" 26. B4#"02&6-0 #- 0.., GR N%. 1B201B, 10
O'-%3#+ 2012).
7.4 NOT ASKED IN 2010, 2011 AND 2012 BAR. W<#-<#+ DOLE C#+-&*&'0-&%" -<0- %"#
&6 0 .#/&-&$0-# G%3-'%"-+0'-%+ 64**&'&#"-.Q
G#"#+0. R4.# T<# DOLE '#+-&*&'0-&%" 6&$8.5 /&2#6 +&6# -% 0 8+#64$8-&%"
-<0- -<# '%"-+0'-%+ &6 0 .#/&-&$0-# %"#.
In the absence o, evidence to the contrary presented by the complainants# then
the -&reme Cort had r)ed that in the $ase of RAMY GALLEGO VS. BAYER
PHILS. G.R. N%. 1IEB0I, 31 (4.5 200E, C0+8&%-M%+0.#6, ( that 5"9%he D8=D $ertifi$ate
ha'in! been issed by a &b)i$ offi$er# it $arries with it the &resm&tion that it was
issed in the re!)ar &erforman$e of offi$ia) dty. Petitioner:s bare assertions fai) to
rebt this &resm&tion. Frther# sin$e the D8=D is the a!en$y &rimari)y res&onsib)e
for re!)atin! the bsiness of inde&endent *ob $ontra$tors# the Cort $an &resme# in
the absen$e of e'iden$e to the $ontrary# that it had thoro!h)y e'a)ated the
re2irements sbmitted by P08DHC9 ,MA>D before issin! the Certifi$ate of
0e!istration.6 ,n this $ase# the -&reme Cort fond Prod$t ,ma!e to be a
inde&endent $ontra$tor as it had shown &roof of sbstantia) $a&ita)i4ation and $ontro)
o'er the em&)oyees.
EF'#8-&%" IMPORTANT BRION CASE %* COCA COLA BOTTLERS VS.
RICKY DELA CRUZ, ET AL. !G.R. N%. 1B7EII, 0I D#'#$3#+ 200E) 0", COCA
COLA BOTTLERS VS. AGITO ET AL !G.R. 1IE=7H, 13 F#3 200E, (. C<&'%-
N010+&%)#
<owe'er# a&art and se&arate from the e;isten$e of said D8=D $ertifi$ation# and
es&e$ia))y in instan$es where there are $ontradi$tory findin!s between the Cort of
A&&ea)s and the 7=0CK=abor Arbiter# the -&reme Cort may $onsider %-<#+
*0'-%+6 in the determination of whether or not a $ontra$tor $om&)ies with the
re2isite e)ements of a )e!itimate sb.$ontra$tin! as enmerated in the =abor Code
and the De&t. 8rder 7o. 18.02. ,n these $ases# the -&reme Cort re'iewed the
re$ords and fond that the so.$a))ed inde&endent $ontra$tors had no sbstantia)
$a&ita)i4ation and in'estment# and that the wor?ers s&&)ied by it were &erformin!
a$ti'ities whi$h were ne$essary and desirab)e in the sa) trade or bsiness of the
em&)oyer.
G. SPECIFIC ISSUES ON LABOR STANDARDS
1. WAGES.
1.1 A+-&'.# EI !*) L03%+ C%,#, ,#*&"&-&%" 0emneration or earnin!s# howe'er desi!nated#
$a&ab)e of bein! e;&ressed in terms of money# whether fi;ed or as$ertained on a time#
tas?# &ie$e# or $ommission basis# or other method of $a)$)atin! the same# whi$h is
&ayab)e by an em&)oyer to an em&)oyee nder the written or nwritten $ontra$t of
em&)oyment for wor? done or to be done# or for ser'i$es rendered or to be rendered and
in$)des the fair and reasonab)e 'a)e# as determined by the -e$retary of =abor# of board#
)od!in!# or other fa$i)ities $stomari)y frnished by the em&)oyer to the em&)oyee. Fair and
reasonab)e 'a)e sha)) not in$)de any &rofit to the em&)oyer or to any &erson affi)iated
with the em&)oyer.
1.2 CASE. W0/#6> *0'&.&-&#6 0", 6488.#$#"-6. SLL I"-#+"0-&%"0. C03.#6 S8#'&0.&6- 0", S%""5
L. L0/%" 2. NLRC, R%.,0" L%8#1, #- 0.., G.R. N%. 1I21H1, M0+'< 2, 2011. --
0es&ondent em&)oyees a))e!ed nder&ayment of their wa!es. Petitioner em&)oyer
$)aimed that the $ost of food and )od!in! &ro'ided by &etitioner to the res&ondent
em&)oyees sho)d be in$)ded in the $om&tation of the wa!es re$ei'ed by res&ondents.
9he Cort ma?es a distin$tion between 5fa$i)ities6 and 5s&&)ements.6
-&&)ements $onstitte e;tra remneration or s&e$ia) &ri'i)e!es or benefits !i'en to or
re$ei'ed by the )aborers o'er and abo'e their ordinary earnin!s or wa!es.
Fa$i)ities# on the other hand# are items of e;&ense ne$essary for the )aborer:s and his
fami)y:s e;isten$e and sbsisten$e so that by e;&ress &ro'ision of )aw# they form &art of
the wa!e and when frnished by the em&)oyer are ded$tib)e therefrom# sin$e if they are
not so frnished# the )aborer wo)d s&end and &ay for them *st the same.
I" 6<%+-, -<# 3#"#*&- %+ 8+&2&.#/# /&2#" -% -<# #$8.%5## 9<&'< '%"6-&-4-#6 0"
#F-+0 +#$4"#+0-&%" 03%2# 0", %2#+ <&6 306&' %+ %+,&"0+5 #0+"&"/ %+ 90/# &6
6488.#$#"-> 0", 9<#" 60&, 3#"#*&- %+ 8+&2&.#/# &6 80+- %* -<# .03%+#+6; 306&'
90/#6, &- &6 0 *0'&.&-5. 9he distin$tion )ies not so m$h in the ?ind of benefit or item
"food# )od!in!# bons or si$? )ea'e% !i'en# bt in the &r&ose for whi$h it is !i'en. ,n the
$ase at ben$h# the items &ro'ided were !i'en free)y by &etitioner em&)oyer for the
&r&ose of maintainin! the effi$ien$y and hea)th of its wor?ers whi)e they were wor?in! at
their res&e$ti'e &ro*e$ts. 9hs# the Cort is of the 'iew that the food and )od!in!# or the
e)e$tri$ity and water a))e!ed)y $onsmed by res&ondents in this $ase were not fa$i)ities
bt s&&)ements whi$h sho)d not be in$)ded in the $om&tation of wa!es re$ei'ed by
res&ondent em&)oyees.
1.2 EMPLOYEES N&0 COVERED BY PROVISIONS ON WAGES

farm tenan$y K )easeho)dI

domesti$ ser'i$e "hoseho)d or domesti$ he)&ers%I

&ersons wor?in! in their res&e$ti'e homes in need)e wor? or in any $otta!e indstry d)y re!istered
in a$$ordan$e with )awI

Baran!ay mi$ro bsiness enter&rise "BMBD% nder 0A (138# the BMBD =aw. BMBD
J any bsiness entity or enter&rise en!a!ed in the &rod$tion# &ro$essin!# or
manfa$trin! of &rod$ts or $ommodities# in$)din! a!ro.&ro$essin!# tradin! and
ser'i$es# whose tota) assets in$)din! those arisin! from )oans bt e;$)si'e of the
)and on whi$h the &arti$)ar bsiness entity:s offi$e# &)ant and e2i&ment are sitated#
sha)) not be more than P3M.
1.3 PAYMENT OF WAGES
Fa!es sha)) be &aid in $ash# )e!a) tender at or near the &)a$e of wor?
Payment may be made thro!h a ban? &on written &etition of ma*ority of the
wor?ers in estab)ishments with 2/ or more em&)oyees and within one ?i)ometer
radis to a ban?
Payment sha)) be made dire$t)y to the em&)oyees
Fa!es sha)) be !i'en not )ess than on$e e'ery two "2% wee?s or twi$e within a month
at inter'a)s not e;$eedin! 11 days
1.7 SOME GOVERNING RULES

FAIR AND REASONABLE VALUE sha)) not in$)de any &rofit to the em&)oyer# or to any &erson
affi)iated with the em&)oyer.

LNO WORK NO PAYM PRINCIPLE. -- ,f there is no wor? &erformed by the em&)oyee#

there $an be no wa!e or &ay n)ess the )aborer was ab)e# wi))in!# and ready to wor?
bt was &re'ented by mana!ement or was i))e!a))y )o$?ed ot# ss&ended or
dismissed. Bt where the fai)re of em&)oyees to wor? was not de to the em&)oyer:s
fa)t# the brden of e$onomi$ )oss sffered by the em&)oyers sho)d not be shifted to
the em&)oyer. Da$h &arty mst bear his own )oss.
E?UAL PAY FOR E?UAL WORK. -- Dm&)oyees who wor? with sbstantia))y e2a)
2a)ifi$ations# s?i))# effort and res&onsibi)ity# nder simi)ar $onditions sho)d be &aid
simi)ar sa)aries (International School 6lliance of Ed,cators vs. L,is,mbin." #$
No.%)00M2" +,ne %" )***!.
CIVIL CODE PROVISIONS
6rt. %(*2. 9he )aborer:s wa!es sha)) be &aid in )e!a) $rren$y.
6rt. %(*&. Fithho)din! of the wa!es# e;$e&t for a debt de# sha)) not be made by the em&)oyer.
6rt. %(*(. 9he )aborer:s wa!es sha)) be a )ien on the !oods manfa$tred or the wor? done.
6rt. %(*0. 9he )aborer:s wa!es sha)) not be sb*e$t to e;e$tion or atta$hment e;$e&t for debts
in$rred for food# she)ter# $)othin!# and medi$a) attendan$e.
6rt. %(*'. 9he em&)oyer sha)) neither sei4e nor retain any too) or other arti$)es be)on!in! to the
)aborer.
1.=. WAGE AND WAGE-RELATED BENEFITS
M&"&$4$ 90/#6 $46- 0.9056 3# '%$8.&#, 9&-<. .. Fa!e 8rder 7o. 7C0.13 for
Metro Mani)a month)y minimm is P11#133.13#
3
$om&ted at P++1.00Kday# effe$ti'e
03 Ane 2012. 7ote that by 7o'ember 2012# the minimm dai)y rate wi))
in$rease to P+/1.00Kday
H%4+6 %* 9%+: <ors of wor?ed sha)) in$)de@ "a% a)) time drin! whi$h an
em&)oyee is re2ired to be on dty or to be at the &res$ribed wor?&)a$e# and
(b) a)) time drin! whi$h an em&)oyee is sffered or &ermitted to wor?. 9he
norma) wor?in! hors sha)) be no more than ei!ht "8% hors a day. Mea) and rest
&eriod@ mea) brea? of )ess than one "1% hor and short rest &eriods sha)) be
$onsidered $om&ensab)e wor?in! time
H%.&,05 805. -- 9he em&)oyee is entit)ed to the &ayment of his re!)ar dai)y
basi$ wa!e "100%% drin! said ho)idays# e'en if the wor?er did not re&ort for
wor? on said daysI PROVIDED -<0- <# 906 8+#6#"- %+ 906 %" .#02# %* 036#"'#
9&-< 805 %" -<# 9%+: ,05 &$$#,&0-#.5 8+#'#,&"/ -<# <%.&,05. ,f the em&)oyee
was sffered to wor? drin! the said ho)idays# they wi)) be entit)ed to &ayment
of ho)iday &remim of 200% of his basi$ wa!e "100% of basi$ wa!e P=H-
100%%.
P+#$&4$ 805 *%+ 9%+: 9&-<&" B <%4+6 %" 0
1. -&e$ia) or rest day@ &)s 30% of basi$ dai)y rate "BD0%
2. 0est day fa))in! on a s&e$ia) day@ &)s /0% of BD0
3. 0est day fa))in! on a re!)ar ho)iday@ &)s 30% of 200% of BD0
O2#+-&$# 805 *%+ 9%+: &" #F'#66 %* B <%4+6 %"
1. 8rdinary days@ &)s 2/% of the basi$ hor)y rate
2. -&e$ia) days# rest days and ho)idays@ &)s 30% of the re!)ar hor)y rate on
said days
S&-40-&%" Com&any issed a memo $han!in! wor? hors of the Pr$hasin! and
-to$?room de&artment e'ery 9esday and 9hrsday# from the sa) (am./&m# to
1&m.8&m $onsiderin! that de)i'eries of raw mer$handise were done in the
afternoons of said days . MFF sti)) same at (am./&m. 9he nion then 2estioned the
$han!e in s$hed)e# statin! the ri!ht to o'ertime &ay for 9esdays and 9hrsdays
has been effe$ti'e)y e)iminated or diminished# and hen$e# res)tin! in dimintion of
benefit. Qestion@ ,s there dimintion of benefitsL ,n short# is o'ertime a benefit or
$om&ensationL
Answer@ 7o dimintion of benefits. 7ote that o'ertime &ay is sim&)y ADD,9,87A=
$om&ensation for wor? done beyond the 8.hor wor? day. Com&any had 'a)id
*stifi$ation to $han!e the s$hed)e of the em&)oyees# as a 'a)id e;er$ise of
mana!ement &rero!ati'es. "Mani)a Ao$?ey C)b $ase%.
N&/<-6<&*- ,&**#+#"-&0. 805@ &)s 10% of the basi$Kre!)ar rate for wor? between
10PM J 1AM
S#+2&'# &"'#"-&2# .#02#@ / days with &ay &er year of ser'i$e
3
P++1.00Kday ; 313 days B-ndaysKrestdays not &aidC
......................................................................... V Month)y rate of 0an?.and.Fi)e em&)oyee
12 months
S#+2&'# '<0+/#6@ 8/% for distribtion to ran?.and.fi)e em&)oyeesI 1/% for )osses#
brea?a!es# or distribtion to mana!eria) em&)oyees "a&&)i$ab)e on)y in
estab)ishments $o))e$tin! ser'i$e $har!es%
13
-<
-$%"-< 805 1K12 of the tota) basi$ sa)ary earned within the $a)endar year
P0-#+"&-5 .#02#@ 3 days with f)) &ay to attend to needs of )e!a) wife
beforeKdrin!Kafter de)i'ery
1.H GENERAL RULE WAGE DEDUCTIONS ARE NOT ALLOWED
EXCEPTIONS
ALLOWABLE DEDUCTIONS WITHOUT EMPLOYEES CONSENT@
a. ---# Phi)hea)th and PA>.,B,> $ontribtionsI
b. Fithho)din! ta;es on in$ome
$. Fhere the em&)oyer is athori4ed by )aw or re!)ations issed by the -e$retary of
=aborI
d. A!en$y fees# where the em&)oyee who is not a member of the e;$)si'e bar!ainin!
a!ent bt a member of the a&&ro&riate bar!ainin! nit# may be assessed a
reasonab)e fee for benefits re$ei'ed nder a CBA.
ALLOWABLE DEDUCTIONS WITH THE EMPLOYEE;S CONSENT@
a. 0easonab)e 'a)e of mea)s and other fa$i)itiesI
b. Payment of nion des# whi$h may or may not be nder an atomati$ $har!in!.off
arran!ement
$. Debt &ayments to the em&)oyer or third &ersons with em&)oyee:s e;&)i$it written
$onsent
d. For?er:s insran$e a$2ired by the em&)oyer with em&)oyee:s $onsentI
2. THIRTEENTH MONTH PAY
2.1 H%9 $4'< 1K12th of the basic salary of an em&)oyee within a $a)endar year.
2.2 COVERAGE
A)) em&)oyers are re2ired to &ay all their ran?.and.fi)e em&)oyees a 13th month &ay not
)ater than De$ember 2+ of e'ery year.
-$h em&)oyees are entit)ed to the benefit re!ard)ess of their desi!nation or em&)oyment
stats and irres&e$ti'e of the method by whi$h their wa!es are &aid# &ro'ided that they ha'e
wor?ed for at least 1 month drin! a $a)endar yearI
2.3 EXCLUSIONS %+ EXEMPTIONS FROM COVERAGE
1. >o'ernment and any of its &o)iti$a) sbdi'isions# in$)din! >8CCs.
EF'#8-&%" Cor&orations o&eratin! essentia))y as &ri'ate sbsidiaries of the
>o'ernmentI
2. Dm&)oyers a)ready &ayin! their em&)oyees 13
th
month &ay or more in a $a)endar year or
its e2i'a)ent at the time of issan$e of PD 8/1I
LI-6 #D4&20.#"-M in$)des Christmas bons# mid.year bons# $ash bonses
and other &ayments amontin! to not )ess than 1K12 of the basi$ sa)ary bt
sha)) not in$)de $ash and sto$? di'idends# C8=A and a)) other a))owan$es
re!)ar)y en*oyed by the em&)oyees as we)) as non.monetary benefits.
3. Dm&)oyers of hoseho)d he)&ers and &ersons in the &ersona) ser'i$e of another in
re)ation to s$h wor?ersI
+. Distressed em&)oyers@
a. $rrent)y in$rrin! sbstantia) )osses or
b. in the $ase of non.&rofit instittions and or!ani4ations# where their in$ome# whether
from donations# $ontribtions# !rants and other earnin!s from any sor$e# has
$onsistent)y de$)ined by more than forty "+0%% &er$ent of their norma) in$ome for
the )ast two "2% years# sb*e$t to the &ro'ision of -e$tion 3 of this issan$eI
/. Dm&)oyers of those who are &aid on $ommission# bondary# or tas? basis# and those
who are &aid a fi;ed amont for &erforman$e of a s&e$ifi$ wor?# irres&e$ti'e of the time
$onsmed in the &erforman$e thereof.
EF'#8-&%" Fhere the wor?ers are &aid on a &ie$e.rate basis# in whi$h $ase the
em&)oyer sha)) !rant the re2ired 13
th
month &ay to s$h wor?ers.

P&#'# R0-# J em&)oyees who are &aid a standard amont for e'ery &ie$e or
nit of wor? &rod$ed that is more or )ess re!)ar)y re&)i$ated# withot re!ard
to the time s&ent in &rod$in! the same.
3. BONUS
3.1 N0-4+# %* 0 3%"46 0 8+#+%/0-&2#, "%- 0" %3.&/0-&%". -- 9he matter of !i'in! a bons
o'er and abo'e the wor?er:s )awf) sa)aries and a))owan$es is entire)y de&endent on the
finan$ia) $a&abi)ity of the em&)oyer to !i'e it. "9raders 0oya) Ban? 's. 7=0C# 18( -C0A
23+ B1((0C%.
DPCDP9,87@ Fhen demandab)e nder a $ontra$t.
NEW CASE EASTERN TELECOM PHILS. VS. EASTERN TELECOM EMPLOYEES
UNION, GR 1B=HH=, 0B FEB 2012). C Com&any has an e;istin! $o))e$ti'e bar!ainin!
a!reement with the Hnion# in$)din! a -ide A!reement to the effe$t that 51+th# 1/th and
11th month bonses "other than 13th month &ay% are !ranted.M Com&any &)an to defer
&ayment of the 1+th# 1/th and 11th month bonses de to a))e!ed $ontinin! deterioration
of $om&any:s finan$ia) &osition.
ISSUE ,s Com&any bond to &ay for the bonses as &er CBAL
ANSWER YESS A readin! of the &ro'ision in the a!reement re'ea)s that the same
&ro'ides for the !i'in! of 1+th# 1/th and 11th month bonses witho,t 7,alification.
9he wordin! of the &ro'ision does not a))ow any other inter&retation. 9here were
no $onditions s&e$ified in the CBA -ide A!reements for the !rant of the benefits#
$ontrary to the $)aim of D9P, that the same is *stified on)y when there are &rofits
earned by the $om&any. 9erse and $)ear# the said &ro'ision does not state that the
sb*e$t bonses sha)) be made to de&end on the D9P,:s finan$ia) standin! or that
their &ayment was $ontin!ent &on the rea)i4ation of &rofits. 7either does it state
that if the $om&any deri'es no &rofits# no bonses are to be !i'en to the
em&)oyees. ,n fine# the &ayment of these bonses was not re)ated to the
&rofitabi)ity of bsiness o&erations.
3.2 Mid.year bons and Christmas bons are e2i'a)ents of 13th month &ay. (Prod,cers
-an4 vs. N5$" 122 S$6 M0' B)**%C!.
<owe'er# benefits in the form of food or free e)e$tri$ity are not &ro&er sbstittes for the
13th month &ay. -o# a)so# year.end rewards for )oya)ty and ser'i$e $annot be $onsidered
in )ie of 13th month &ay. "Framan)is 's. Minister of =abor# 131 -C0A 83 B1(8(C%.
3.3 A+# '%$$&66&%"6 &"'.4,#, &" '%$84-&"/ 13-< $%"-< 805A
a. ,f the $ommission form &art of the em&)oyees: basi$ sa)ary# then this wi)) )i?ewise be
in$)ded in the $om&tation of 13th month &ay. (Philippine D,plicators" Inc. vs.
N5$" )M% S$6 10* B%''2C!.
b% ,f the $ommissions were in the natre of &rofit.sharin! bonses "&rod$ti'ity
bonses%# then these do not form &art of the 5basi$ sa)ary6 and sho)d not in$)ded in
the $om&tation of the 13th month &ay. "Boie.9a?eda Chemi$a)s# ,n$. 's. De)a -erna
228 -C0A 32( B1((3C%.
3. HOURS OF WORK.
3.1 <ors of wor?ed sha)) in$)de@ "a% a)) time drin! whi$h an em&)oyee is re2ired to be on
dty or to be at the &res$ribed wor?&)a$e# and "b% a)) time drin! whi$h an em&)oyee is
sffered or &ermitted to wor?. (6rt. 0M" 5abor ode@ See also $ada vs. N5$" )*2 S$6
&' B%'')C.!
3.2 0est &eriod of short dration drin! wor?in! hors sha)) be $onted as hors wor?ed.
(6rt. 0M" 5abor ode.! D;am&)e@ $offee brea? of 1/ mintesI mea) &eriod of )ess than one
hor#
e.!.# 30 mintes.
3.3 EF#$8-&%"6. (See 6rt. 0)" 5abor ode.! . .. 9he fo))owin! em&)oyees are not $o'ered by
the =abor Code &ro'isions on hors of wor?@
a% >o'ernment em&)oyeesI
b) Mana!eria) em&)oyees (International Pharmace,ticals" Inc. vs. N5$" )0( S$6 )%1
B%''0C.!@
$% Fie)d Personne)I
d% Members of the em&)oyer who are de&endent &on him for s&&ortI
e% Domesti$ he)&ers and &ersons in the &ersona) ser'i$e of anotherI
f) For?ers who are &aid by res)ts# e.!.# &ie$e wor?ers. ($ed N ocon,t Prod,cts"
5td. vs. I$" %( S$6 221 B%'&&C" citin. 5ara vs. del $osario" 'M Phil. (0*! (NoteI $eason is
that wor4ers who are paid by the res,lt are compensated on the basis of the wor4 completed"
and NGT in respect of the time spent wor4in. on it!.
7. EMPLOYMENT OF HOUSEHELPERS VS. HOMEWORKERS
!S## KASAMBAHAY LAW)
4.1 D%$#6-&' <#.8#+ %+ <%46#<#.8#+6 %+ ,%$#6-&' 6#+20"- ,#*&"#,. -- sha)) refer
to any &erson# whether ma)e or fema)e# who renders ser'i$es in and abot the
em&)oyer:s home and whi$h ser'i$es are sa))y ne$essary or desirab)e for the
maintenan$e and en*oyment thereof# and ministers e;$)si'e)y to the &ersona) $omfort
and en*oyment of the em&)oyer:s fami)y.6
-$h definition $o'ers fami)y dri'ers# domesti$ ser'ants# )andry women# yayas#
!ardeners# hoseboys and other simi)ar hosehe)&s. (6pe= /inin. ompany" Inc. vs.
N5$" %'& S$6 )2% B%''%C!. 9 N&0) ;I<CR)8+NC= ()0>))N *+> +N; IM8*)M)N0ING
R?*)< >HICH )@C*?;); 0H) ;RIA)R< BR&M C&A)R+G).
,f the hosehe)& or )andrywomen is sffered to wor? in staffhoses of a $om&any to
attend to the needs of the $om&any:s !est and other &ersons a'ai)in! of said
fa$i)ities# then they are 789 hoseho)d he)&ers as defined by )aw bt em&)oyees of
the $om&any. (6pe= /inin. ompany" Inc. vs. N5$" ibid.!
BD7DF,9- ACC80DDD 98 <8H-D.<D=PD0- (-oo4 III" Title 1" hapter III" 5!
1. 7ot to be assi!ned to non.hoseho)d wor?I
2. 0easonab)e $om&ensation "minimm $ash wa!e%I
3. =od!in!# food and medi$a) attendan$eI
+. ,f nder 18 years# an o&&ortnity for e)ementary ed$ation "$ost of whi$h sha)) be
&art of hosehe)&er:s $om&ensation%I
5. Contra$t for hoseho)d ser'i$e sha)) not e=ceed 2 years "renewab)e from year to
year%I
1. Ast and hmane treatmentI
3. 0i!ht not to be re2ired to wor? for more than 10 hrs. a day "if the hosehe)&er
a!rees to wor? o'ertime and there is additiona) $om&ensation# the same is
&ermissib)e%I
8. 0i!ht to + days 'a$ation ea$h month with &ay "if the he)&er does not as? for the
'a$ation# the nmber of 'a$ation days cannot be a$$m)ated# he is on)y entit)ed
on)y to its monetary e7,ivalent%I
(. Fnera) e;&enses mst be &aid by the em&)oyer if the hose.he)&er has no
re)ati'es with sffi$ient means in the &)a$e where the head of the fami)y )i'esI
10. 9ermination on)y for ?,st ca,seI
11. ,ndemnity for n*st termination of ser'i$eI
12. Dm&)oyment $ertifi$ation as to natre and dration of ser'i$e and effi$ien$y and
$ond$t of the hose.he)&er.
7.2 H%$#9%+:#+, ,#*&"#,.-- one who &erforms in or abot his home any &ro$essin!
of !oods or materia)s# in who)e or in &art# whi$h ha'e been frnished dire$t)y or
indire$t)y# by an em&)oyer and thereafter to be retrned to the )atter. "Boo? ,,,#
0)e P,G# -e$tion 1 of the 8mnibs 0)es ,m&)ementin! the =abor Code.%
HOUSEHELPERS HOME WORKERS
Minister to the &ersona) needs and $omfort of Performs in or abot his own home any
his em&)oyer in the )atter:s home &ro$essin! or fabri$ation of !oods or materia)s# in
who)e or in &art# whi$h ha'e been frnished
dire$t)y or indire$t)y# by an em&)oyer and so)d
thereafter to the )atter.
RIGHTS 0", BENEFITS ACCORDED TO HOMEWORKERS (Department Grder No. 2# re&)a$in!
0)e P,G of the 0)es ,m&)ementin! Boo? ,,, of the =abor Code%@
1% Formation and re!istration of )abor or!ani4ation of indstria) homewor?ers.
2% ,t a)so ma?es e;&)i$it the em&)oyer:s dty to &ay and remit ---# Phi)hea)th and DCC
&remims.
3% Prohibitions for <omewor?

e;&)osi'es# firewor?s and arti$)es of )i?e $hara$terI

dr!s and &oisonsI

other arti$)es# the &ro$essin! of whi$h re2ires e;&osre to to;i$ sbstan$e.

=. EMPLOYMENT OF MINORS C<ec. 1$, R.+. !71#, as amended by R.+. :$%1D.
G#"#+0. R4.# Dm&)oyment of any $hi)d be)ow fifteen "1/% years of a!e is &rohibited
EF'#8-
APPRENTICES LEARNERS
1. Fhen he wor?s dire$t)y nder the so)e res&onsibi)ity of his &arents or !ardian# and his
em&)oyment does not in any way interfere with his s$hoo)in!. 9he fo))owin! $onditions mst be
met@
9he em&)oyment does not endan!er the $hi)d:s )ife# safety# hea)th and mora)sI
9he em&)oyment does not im&air the $hi)d:s norma) de'e)o&mentI
9he em&)oyer &arent or )e!a) !ardian &ro'ides the $hi)d with the &rimary andKor
se$ondary ed$ation &res$ribed by the De&artment of Dd$ation
2. Fhere the $hi)d:s em&)oyment or &arti$i&ation in &b)i$ entertainment or information thro!h
$inema# theater# radio or 9G is essentia) provided that@
9he em&)oyment does not in'o)'e ads or $ommer$ia)s &romotin! A=C8<8=,C
BDGD0A>D-# ,798P,CA9,7> D0,7O-# 98BACC8 A7D ,9- BE.P08DHC9- 80
DP<,B,9,7> G,8=D7CDI
9here is a written $ontra$t a&&ro'ed by the D8=DI and
ON HAZARDOUS WORK. -- Any &erson between fifteen "1/% and ei!hteen "18% years of a!e
may be em&)oyed for 787.<ASA0D8H- F80O for s$h nmber of hors and s$h &eriods
of the day as determined by the -e$retary of =abor in a&&ro&riate re!)ations. 7o s$h
&rohibition if ei!hteen "18% years o)d and abo'e.
PROHIBITION AGAINST CHILD DISCRIMINATION. -- 7o em&)oyer sha)) dis$riminate
a!ainst any &erson in res&e$t to terms and $onditions of em&)oyment on a$$ont of
his a!e.
H. APPRENTICESHIP AND LEARNERSHIP
6.1 A&&renti$eshi& is the &ra$ti$a) on.the.*ob trainin! as s&&)emented by re)ated
theoreti$a) instr$tion (6rt. 20 (a!" 5!.
1.2 =earners are &ersons hired as trainees in semi.s?i))ed and other indstria) o$$&ations
whi$h are non.a&&renti$eab)e and may be )earned thro!h &ra$ti$a) trainin! on the *ob in a
re)ati'e)y short &eriod of time whi$h sha)) not e;$eed three months.
WHAT X P+0'-&'0. -+0&"&"/ %" -<# G%3
X S488.#$#"-#, 35 +#.0-#,
-<#%+#-&'0. &"6-+4'-&%"
X C%2#+#, 35 0 9+&--#"
088+#"-&'#6<&8 0/+##$#"- 9&-< 0"
&",&2&,40. #$8.%5#+ %+ #"-&-5
X N##,6 DOLE 088+%20.
X S<0.. "%- #F'##, H $%"-<6
NEED
X O".5 &" <&/<.5 -#'<"&'0. &",46-+&#6
X O".5 &" 088+#"-&'#03.#
%''480-&%"6
P#+6%"6 <&+#, 06 -+0&"##6 &"
6#$&-6:&..#, 0", %-<#+ &",46-+&0.
%''480-&%"
N%"-088+#"-&'#03.#
M05 3# .#0+"#, -<+%4/< 8+0'-&'0.
-+0&"&"/ %" -<# G%3 &" 0 +#.0-&2#.5
6<%+- 8#+&%, %* -&$#
S<0.. "%- #F'##, 3 $%"-<6
N% #F8#+&#"'#, 9%+:#+6 020&.03.#
P+#2#"- '4+-0&.$#"- %* #$8.%5$#"-
%88%+-4"&-&#6
N%- -% '+#0-# 4"*0&+ '%$8#-&-&%" &"
.03%+ '%6-6 0", .%9#+ 9%+:&"/
6-0",0+,6
NATURE
PERIOD
COMITM
T TO
HIRE
WAGES
DOLE
A88+%20.
DEDUCT
-ION *%+
EF8#"6#6
APPRENTICESHIP
<&/<.5--#'<"&'0.
X SIX !H) $%"-<6
A- %8-&%" %* #$8.%5#+
M05 3# 80&, %+ "%-> &* 80&,, I=T
%* $&"&$4$
Y#6, DOLE 088+%20. &6 #66#"-&0.
Y#6, #F8#"6#6 *%+ -+0&"&"/
,#,4'-&3.# *+%$ &"'%$# -0F
LEARNERSHIP
6#$&-6:&..> "%"-088+#"-&'#03.#
THREE !3) $%"-<6
A- %8-&%" %* .#0+"#+
M46- 0.9056 3# 80&,> I=T %*
$&"&$4$
N%, DOLE 088+%20. "%-
+#D4&+#,> &"68#'-&%" %".5.
N%"#.
H.3 CASE ON VALIDITY OF APPRENTICESHIP
A-.0"-0 I",46-+&#6, I"'. 0",P%+ R%3#+- C<0" 26. A8+&.&-% R. S#3%.&"%, #- 0.., G.R.
1BI320, (0"40+5 2H, 2011. .. A88+#"-&'#6<&8 0/+##$#"- NOT 20.&, 9<#+#
'%$8.0&"0"-6 9#+# <&+#, 06 #$8.%5##6 *&+6- 3#*%+# #F#'4-&%" %* 088+#"-&'#6<&8. T<#
+#68%",#"- #$8.%5##6 9#+# 0.+#0,5 +#",#+&"/ 6#+2&'# -% -<# '%$80"5 9<#" -<#5
9#+# $0,# -% 4",#+/% 088+#"-&'#6<&8. 9he res&ondent were re!)ar em&)oyees
be$ase they o$$&ied &ositions s$h as ma$hine o&erator# s$a)eman and e;trder
o&erator J tas?s that are sa))y ne$essary and desirab)e in &etitioner em&)oyer:s sa)
bsiness or trade as manfa$trer of &)asti$ bi)din! materia)s. 9hese tas?s and their
natre $hara$teri4ed the res&ondents as re!)ar em&)oyees nder Arti$)e 280 of the =abor
Code. 9hs# when they were dismissed withot *st or athori4ed $ase# withot noti$e#
and withot the o&&ortnity to be heard# their dismissa) was i))e!a) nder the )aw.
9he a&&renti$eshi& a!reements did not indi$ate the trade or o$$&ation in whi$h the
a&&renti$e wo)d be trainedI neither was the a&&renti$eshi& &ro!ram a&&ro'ed by the
9e$hni$a) Dd$ation and -?i))s De'e)o&ment Athority "9D-DA%. 9hese were defe$ti'e as
they were e;e$ted in 'io)ation of the )aw and the r)es. Moreo'er# with the e;&iration of
the first a!reement and the retention of the em&)oyees# the em&)oyer# to a)) intents and
&r&oses# re$o!ni4ed the $om&)etion of their trainin! and their a$2isition of a re!)ar
em&)oyee stats. 9o foist &on them the se$ond a&&renti$eshi& a!reement for a se$ond
s?i)) whi$h was not e'en mentioned in the a!reement itse)f# is a 'io)ation of the =abor
Code:s im&)ementin! r)es and is an a$t manifest)y nfair to the em&)oyees.
I. ON EMPLOYEE BENEFITS> BEREAVEMENT LEAVE.
C%"-&"#"-0. S-##. M0"4*0'-4+&"/ C%+8%+0-&%" 26. H%". A''+#,&-#, V%.4"-0+5 A+3&-+0-%+ A..0" S.
M%"-0"%, #- 0.., G.R. N%. 1B2B3H, O'-%3#+ 13, 200E. --Berea'ement )ea'e and other death
benefits are !ranted to an em&)oyee to !i'e aid to# and if &ossib)e# )essen the !rief of# the
said em&)oyee and his fami)y who sffered the )oss of a )o'ed one. ,t $annot be said that the
&arents: !rief and sense of )oss arisin! from the death of their nborn $hi)d# who# in this
$ase# had a !estationa) )ife of 38.3( wee?s bt died drin! de)i'ery# is any )ess than that of
&arents whose $hi)d was born a)i'e bt died sbse2ent)y. B#&"/ *%+ -<# 3#"#*&- %* -<#
#$8.%5##, CBA 8+%2&6&%"6 %" 3#+#02#$#"- .#02# 0", %-<#+ ,#0-< 3#"#*&-6 6<%4., 3#
&"-#+8+#-#, .&3#+0..5 -% /&2# .&*# -% -<# &"-#"-&%"6 -<#+#%*. 9ime and a!ain# the =abor
Code is s&e$ifi$ in enn$iatin! that in $ase of dobt in the inter&retation of any )aw or
&ro'ision affe$tin! )abor# s$h sho)d be inter&reted in fa'or of )abor. ,n the same way# the
CBA and CBA &ro'isions sho)d be inter&reted in fa'or of )abor.
B. EMPLOYEE BENEFITS> RETIREMENT.
8.1 0D9,0DMD79 A>D
>D7D0A= 0H=D@ 0.A. 31+1
a. 8P9,87A= at 10 years with minimm / years of ser'i$e
b. MA7DA980E at 1/ years# no ser'i$e re2irement
DPCDP9,87@
Fhere the $om&any &ro'ides for a 0etirement P)an with ear)ier retirement a!e# then
the $om&any:s 0etirement P)an wi)) a&&)y
8.2 0D9,0DMD79 BD7DF,9-
>D7D0A= 0H=D@ 0.A. 31+1
Y month for e'ery year of ser'i$e "e;&anded $on$e&t &er -e$ 1# 0A 31+1%
D;&anded $on$e&t@ 22./ days "Ca&ito) Fire)ess 's. Confesor%
DPCDP9,87@
Fhere the $om&any &ro'ides for a 0etirement P)an with better benefits# then the
$om&any:s 0etirement P)an wi)) a&&)y
B.3 CASES
0) D&**#+#"'# 3#-9##" -#+$&"0-&%" %* #$8.%5$#"- 0", +#-&+#$#"- ">enera) Mi))in!
Cor&oration 's. Gia*ar# >.0. 7o. 181338# Aanary 30# 2013# Citin! Qe'edo 's.
Ben!et D)e$tri$ Coo&erati'e# ,n$.# /(( -C0A +38 B200(C.% ..
Fhi)e termination of em&)oyment and retirement from ser'i$e are $ommon modes of
endin! em&)oyment# they are mta))y e;$)si'e# with 'aryin! *di$ia) bases and
res)tin! benefits. 0etirement from the ser'i$e is $ontra$ta) "i.e. based on the
bi)atera) a!reement of the em&)oyer and em&)oyee%# whi)e termination of
em&)oyment is stattory "i.e. !o'erned by the =abor Code and other re)ated )aws as
to its !ronds# benefits and &ro$edre. 9he benefits res)tin! from termination 'ary#
de&endin! on the $ase. For retirement# Arti$)e 283 of the =abor Code !i'es )eeway
to the &arties to sti&)ate abo'e a f)oor of benefits.
3. D&**#+#"'# 3#-9##" 2%.4"-0+5 0", &"2%.4"-0+5 +#-&+#$#"-. --
Go)ntary retirement $ts em&)oyment ties )ea'in! no resida) em&)oyer )iabi)ityI
in'o)ntary retirement amonts to a dis$har!e# renderin! the em&)oyer )iab)e for
termination withot $ase. 9he em&)oyee:s intent is the fo$a) &oint of ana)ysis. ,n
determinin! s$h intent# the fairness of the &ro$ess !o'ernin! the retirement
de$ision# the &ayment of sti&)ated benefits# and the absen$e of bad!es of
intimidation or $oer$ion are re)e'ant &arameters. "ibid.%
'. E0+.5 +#-&+#$#"- &6 -<# %8-&%" %* -<# EMPLOYEE. E06-#+" S<&88&"/ L&"#6, I"'.
26. F#++#+ D. A"-%"&%, G.R. N%. 1I1=BI, O'-%3#+ 13, 200E . C
9he a!e of retirement is &rimari)y determined by the e;istin! a!reement or
em&)oyment $ontra$t. ,n the absen$e of s$h a!reement# the retirement a!e sha))
be fi;ed by )aw. Hnder the afore$ited )aw# the mandated $om&)sory retirement a!e
is set at 1/ years# whi)e the $&"&$4$ 0/# *%+ %8-&%"0. +#-&+#$#"- &6 6#- 0- H0
5#0+6. Hnder Para!ra&h B of the retirement &)an# a shi&board em&)oyee# &on his
written re2est# may retire from ser'i$e if he has rea$hed the e)i!ibi)ity a!e of 10
years. I" -<&6 '06#, -<# %8-&%" -% +#-&+# .&#6 9&-< -<# #$8.%5##. 0e$ords show
that res&ondent was on)y +1 years o)d when he a&&)ied for o&tiona) retirement#
whi$h was 1( years short of the re2ired e)i!ibi)ity a!e. 9hs# he $annot $)aim
o&tiona) retirement benefits as a matter of ri!ht.
d. IMPORTANT CASE MAY RETIREMENT FUND FOR THE EMPLOYEES BE
APPLIED TO OUTSTANDING LOANS OF THE COMPANYA M#-+%30": 26.
B%0+, %* T+46-##6 %* R&2#+6&,# M&..6 P+%2&,#"- 0", R#-&+#$#"- F4",, GR N%.
1IHE=, 0B S#8- 2010. --
A"69#+ NO. Dm&)oyees trsts or benefits &)ans are intended to &ro'ide e$onomi$
assistan$e to em&)oyees &on o$$rren$e of o)d a!e# retirement# death# si$?ness or
disabi)ity. <ere# whi)e the P)an &ro'ides for a re'ersion of the Fnd to the em&)oyer
0MC# this $annot be done nti) a)) the )iabi)ities of the P)an ha'e been &aid. And
when 0MC $eased o&erations in 1(8+# the Fnd be$ame )iab)e not on)y for the
benefits of the 2a)ified retirees at the time of the 0MC $)osre# bt a)so of those
who were se&arated from wor? as a $onse2en$e of the $)osre# &er the 0etirment
P)an itse)f.
e. ?UESTION MAY THE EMPLOYER DEDUCT COST OF TRAINING FROM THE
RETIREMENT BENEFITS OF THE EMPLOYEEA Bibiano C. D)e!ir 's. Phi)i&&ine
Air)ines# ,n$. #.$. No. %0%''2" %& +,ly )*%).
ANSWER YESS By $arryin! o'er the same sti&)ation in the &resent CBA# both PA=
and A=PAP re$o!ni4ed that the $om&any:s effort in sendin! &i)ots for trainin! abroad
is an in'estment whi$h ne$essari)y e;&e$ts a reasonab)e retrn in the form of ser'i$e
for a &eriod of at )east three "3% years. 9his sti&)ation had been re&eated)y ado&ted
by the &arties in the s$$eedin! renewa)s of their CBA# ths 'a)idatin! the
im&ression that it is a reasonab)e and a$$e&tab)e term to both PA= and A=PAP.
Conse2ent)y# the &etitioner $annot $on'enient)y disre!ard this sti&)ation by sim&)y
raisin! the absen$e of a $ontra$t e;&ress)y re2irin! the &i)ot to remain within PA=:s
em&)oy within a &eriod of 3 years after he has been sent on trainin!. T<# 6488%6#,
036#"'# %* '%"-+0'- 3#&"/ +0&6#, 35 -<# 8#-&-&%"#+ '0""%- 6-0", 06 -<# CBA
'.#0+.5 '%2#+#, -<# 8#-&-&%"#+;6 %3.&/0-&%" -% +#",#+ 6#+2&'# -% PAL 9&-<&" 3
5#0+6 -% #"03.# &- -% +#'%48 -<# '%6-6 %* &-6 &"2#6-$#"-. Frther# to a))ow the
&etitioner to )ea'e the $om&any before it has f)fi))ed the reasonab)e e;&e$tation of
ser'i$e on his &art wi)) amont to n*st enri$hment.
H. THE RIGHT TO UNIONIZE AND THE
APPROPRIATE BARGAINING UNIT
!PLEASE SEE CHART LAM)
1. D;isten$e of D0.DD re)ationshi& is essentia) for the determination of whether or not one
may e;er$ise ri!ht of se)f.or!ani4ation for &r&oses of $o))e$ti'e bar!ainin!
2. W<% $05 4"&%"&1# *%+ 84+8%6#6 %* '%..#'-&2# 30+/0&"&"/ "#/%-&0-&%"6A
2.1 G#"#+0. R4.# Any em&)oyee may be e)i!ib)e to *oin and be a member of a )abor nion#
be!innin! on his first day of ser'i$e# whether em&)oyed for a definite &eriod or not.
"Arti$)e 233 B$C# =abor CodeI -ee a)so@ H-9 Fa$)ty Hnion 's. Bitonio%
2.2 EF'#8-&%"6 W<% $05 NOT 4"&%"&1#
2.2.1 M0"0/#+&0. #$8.%5##6 "Art. 2+/# =abor Code.%
7.B.@ -&er'isory em&)oyees may nioni4e and form )abor or!ani4ations of their
own# bt may not *oin ran?.and.fi)e nion.
? C0" 0 648#+2&6%+5 4"&%" 0**&.&0-# 9&-< 0 F#,#+0-&%" 9&-< +0":-0",-*&.#
4"&%"6A
A@ Ees. Arti$)e 2+/ has now been amended by Con!ress nder 0e&. A$t 7o. (+81
to read as fo))ows@
>6$T. )M2. Ineli.ibility of /ana.erial Employees to +oin any 5abor
Gr.anization@ $i.ht of S,pervisory Employees. - /ana.erial employees
are not eli.ible to ?oin" assist or form any labor or.anization.
S,pervisory employees shall not be eli.ible for membership in the
collective bar.ainin. ,nit of the ran4-and-file employees b,t may ?oin"
assist or form separate collective bar.ainin. ,nits andFor le.itimate
labor or.anizations of their own. 0he ran5 and ,ile union and the
supervisors2 union operating within the same establishment may
3oin the same ,ederation or national union.E
2.2.2 C%"*&,#"-&0. #$8.%5##6 -- Confidentia) em&)oyees are those who@ "1% assist or
a$t in a $onfidentia) $a&a$ity# "2% to &ersons who form)ate# determine# and
effe$tate mana!ement &o)i$ies in the fie)d of )abor re)ations. 9he two $riteria are
$m)ati'e# and both mst be met if an em&)oyee is to be $onsidered a $onfidentia)
em&)oyee Q e.!.# the $onfidentia) re)ationshi& mst e;ist between the em&)oyee
and his s&er'isor# and the s&er'isor mst hand)e the &res$ribed res&onsibi)ities
re)atin! to )abor re)ations. 9he e;$)sion from bar!ainin! nits of the em&)oyees
who# in the norma) $orse of their dties# be$ome aware of mana!ement &o)i$ies
re)atin! to )abor re)ations is a &rin$i&a) ob*e$ti'e so!ht to be a$$om&)ished by the
5$onfidentia) em&)oyee r)e6. "T4"05 "0 P0/:0:0&60 "/ M0"//0/090 60 A6&0
B+#9#+5 26. A6&0 B+#9#+5, G.R. N%. 1H202=, 03 A4/46- 2010)
Arti$)e 2+/ of the =abor Code does not dire$t)y &rohibit $onfidentia) em&)oyees
from en!a!in! in nion a$ti'ities. H%9#2#+, 4",#+ -<# ,%'-+&"# %* "#'#660+5
&$8.&'0-&%"# -<# ,&6D40.&*&'0-&%" %* $0"0/#+&0. #$8.%5##6 #D40..5 088.&#6 -%
'%"*&,#"-&0. #$8.%5##6. 9he $onfidentia).em&)oyee r)e *stifies e;$)sion of
$onfidentia) em&)oyees be$ase in the norma) $orse of their dties they be$ome
aware of mana!ement &o)i$ies re)atin! to )abor re)ations. I- $46- 3# 6-+#66#,,
<%9#2#+, -<0- 9<#" -<# #$8.%5## ,%#6 NOT <02# 0''#66 -% '%"*&,#"-&0.
.03%+ +#.0-&%"6 &"*%+$0-&%", -<#+# &6 "% .#/0. 8+%<&3&-&%" 0/0&"6- '%"*&,#"-&0.
#$8.%5##6 *+%$ *%+$&"/, 066&6-&"/, %+ G%&"&"/ 0 4"&%". "-!banon 0ra) Ban?# '.
=a!esma# B>.0. 7o. 1111(+. Febrary 2# 2000%
2.2.3 G%2#+"$#"- E$8.%5##6, &"'.4,&"/ GOCC6 WITH %+&/&"0. '<0+-#+
2.2.+ E$8.%5##6 9<% 0+# $#$3#+6 %* 0 '%%8#+0-&2#> R0-&%"0.#@ A $oo&erati'e
is different from an ordinary bsiness $on$ern# inasm$h as its owners are )i?ewise
the ones who rn and o&erate the bsiness themse)'es. <en$e# in$on!ros
sitation where the owners wi)) *st bar!ain with themse)'es or their $o.wor?ers
"who are a)so $o.owners%. <owe'er# this wi)) not a&&)y insofar as it in'o)'es
em&)oyees of the $oo&erati'e F<8 A0D 789 owners or members thereof.
SSS VS. ASIAPRO COOPERATIVE Fhi)e members of a $oo&erati'e $annot form
nions and bar!ain with themse)'es# they are to be $onsidered as em&)oyees with
res&e$t to --- $o'era!e be$ase the Coo&erati'e a$ts as an inde&endent
$ontra$tor 'is.Z.'is &rin$i&a) $)ients they se$re.
2.2./ E$8.%5##6 %* I"-#+"0-&%"0. O+/0"&10-&%"6 %+ S8#'&0.&1#, A/#"'&#6
9<&'< 0+# +#/&6-#+#, 9&-< -<# U"&-#, N0-&%"6 0", 9<&'< #"G%56
,&8.%$0-&' &$$4"&-5. ",nternationa) Catho)i$ Mi!ration Commission 's. Ca))e*aI
and Oa&isanan n! Man!!a!awa at 9AC sa ,00,# et$. 's. -e$retary of =abor.%
CONTRA CASE IMPT - NOT ASKED IN 2010, 2011 0", 2012 BAR -
G#+$0" A/#"'5 *%+ T#'<"&'0. C%%8#+0-&%" !GTZ) 26. CA, GR N%.
1=231B, 1H A8+&. 200E J Com&)aint fi)ed by si; >9S $ontra$ta) em&)oyees for
i))e!a) dismissa). Motion to dismiss# >9S defense@ 5=abor Arbiter has no *risdi$tion.
>9S:s a$ts were nderta?en in the dis$har!e of the !o'ernmenta) fn$tions and
so'erei!n a$ts of the >o'ernment of the Federa) 0e&b)i$ of
>ermany#6 and hen$e# immne from sit and not )iab)e as a forei!n !o'ernmenta)
a!en$y whi$h ar!ment was simi)ar)y ado&ted by the 8->.
-&reme Cort r)ed that the >9S fai)ed to estab)ish immnity from sit# inasm$h
as it was fond to be a?in to a Phi). $onter&art of a !o'ernment.owned and
$ontro))ed $or&oration des&ite a$ti'ities &erformed bein! !o'ernmenta) in natre.
9he Cort r)ed@ 5Assmin! that $hara$teri4ation is $orre$t# it does not
atomati$a))y in'est >9S with the abi)ity to in'o?e -tate immnity from sit. 9he
distin$tion )ies in whether the a!en$y is in$or&orated or nin$or&orated. 9he
fo))owin! )$id dis$ssion from Asti$e ,sa!ani Cr4 "in a $ited $ase% is &ertinent@
3here s,it is filed not a.ainst the .overnment itself or its officials b,t a.ainst
one of its entities" it m,st be ascertained whether or not the State" as the
principal that may ,ltimately be held liable" has .iven its consent to be s,ed.
This ascertainment will depend in the first instance on whether the
.overnment a.ency impleaded is incorporated or ,nincorporated.
6n incorporated a.ency has a charter of its own that invests it with a
separate ?,ridical personality" li4e the Social Sec,rity System" the <niversity
of the Philippines" and the ity of /anila. -y contrast" the ,nincorporated
a.ency is so called beca,se it has no separate ?,ridical personality b,t is
mer.ed in the .eneral machinery of the .overnment" li4e the Department of
+,stice" the -,rea, of /ines and the #overnment Printin. Gffice.
2.2.1 A.&#"6 9&-< 20.&, 9%+:&"/ 8#+$&-6 "De&artment 8rder 7o. ( B1((3C#
0)e ,,# -e$. 2%
3. SALIENT FEATURES OF REPUBLIC ACT NO. E7B1 LAN ACT
STRENGTHENING THE WORKERSU CONSTITUTIONAL RIGHT TO
SELF-ORGANIZATION, AMENDING FOR THESE PURPOSE PRES.
DECREE 772, OTHERWISE KNOWN AS THE LABOR CODEM
3.1 M%,&*&#, 8+#2&%46 S48+#$# C%4+- +4.&"/6 8+%<&3&-&"/ 648#+2&6%+6; 4"&%"6
*+%$ G%&"&"/ 9&-< -<# 60$# *#,#+0-&%" 06 -<# +0": 0", *&.#. N#9 .09 "%9
#F8.&'&-5 ALLOWS *%+ -<# '%$$&"/.&"/ %* -<# -9%.
-e$tion 8 of new )aw &ro'ides@ 5Arti$)e 2+/ of the =abor Code is hereby amended to
read as fo))ows ..
A09. 2+/. ,ne)i!ibi)ity of Mana!eria) Dm&)oyees to Aoin any =abor 8r!ani4ationI 0i!ht of
-&er'isory Dm&)oyees. . Mana!eria) em&)oyees are not e)i!ib)e to *oin# assist or form
any )abor or!ani4ation. -&er'isory em&)oyees sha)) not be e)i!ib)e for membershi& in
the $o))e$ti'e bar!ainin! nit of the ran?.and.fi)e em&)oyees bt may *oin# assist or form
se&arate $o))e$ti'e bar!ainin! nits andKor )e!itimate )abor or!ani4ations of their own.
T<# +0": 0", *&.# 4"&%" 0", -<# 648#+2&6%+6; 4"&%" %8#+0-&"/ 9&-<&" -<# 60$#
#6-03.&6<$#"- $05 G%&" -<# 60$# *#,#+0-&%" %+ "0-&%"0. 4"&%".M
3.2 RE?UIREMENTS FOR REGISTRATION
3.2.1 I",#8#",#"- U"&%" %+ F#,#+0-&%"6PN0-&%"0. U"&%"6 C wi)) a$2ire )e!a)
&ersona)ity &on issan$e of $ertifi$ate of re!istration
6$T. )1M. $e7,irements of $e.istration. - 6 federation" national ,nion or ind,stry
or trade ,nion center or an independent ,nion shall ac7,ire le.al personality and
shall be entitled to the ri.hts and privile.es .ranted by law to le.itimate labor
or.anizations upon issuance o, the certi,icate o, registration based on the
followin. re7,irementsI
(a! Kifty pesos (P2*.**! re.istration fee@
(b! The names of its officers" their addresses" the principal address of the labor
or.anization" the min,tes of the or.anizational meetin.s and the list of the
wor4ers who participated in s,ch meetin.s@
(c! In case the applicant is an independent ,nion" the names of all its members
comprisin. at least twenty percent ()*O! of all the employees in the
bar.ainin. ,nit where it see4s to operate@
(d! If the applicant ,nion has been in e=istence for one or more years" copies of
its ann,al financial reports@ and
(e! Ko,r copies of the constit,tion and by-laws of the applicant ,nion" min,tes of
its adoption or ratification" and the list of the members who participated in it.A
3.2.2 L%'0. %+ 0 %* C<08-#+ F#,#+0-&%"6PN0-&%"0. U"&%"6 C wi)) a$2ire )e!a)
&ersona)ity on)y for the &r&ose of fi)in! a &etition for $ertifi$ate of
re!istration &on issan$e of the C<A09D0 CD09,F,CA9D by the
re!istered FederationK7ationa) Hnion. 9he Cha&terK=o$a) sha)) be entit)ed
to a)) other ri!hts a&&rtenant thereto 87=E &on sbmission of the
fo))owin! other do$ments.
>6$T. )1M-6. harterin. and reation of a 5ocal hapter. - 6 d,ly re.istered
federation or national ,nion may directly create a local chapter by iss,in. a
charter certificate indicatin. the establishment of the local chapter. 0he chapter
shall ac1uire legal personality only ,or purposes o, ,iling a petition ,or
certi,ication election ,rom the date it was issued a charter certi,icate. The
chapter shall be entitled to all other ri.hts and privile.es of a le.itimate labor
or.anization only ,pon the s,bmission of the followin. doc,ments in addition to its
charter certificateI
(a! The names of the chapter;s officers" their addresses" and the principal office of
the chapter@ and
(b! The chapter;s constit,tion and by-lawsI Provided" That where the chapter;s
constit,tion and by-laws are the same as that of the federation or the national
,nion" this fact shall be indicated accordin.ly.
The additional s,pportin. re7,irements shall be certified ,nder oath by the
secretary or treas,rer of the chapter and attested by its president.A
ADA;S NOTES For &r&oses of fi)in! a &etition for $ertifi$ation e)e$tion# the
$harter $ertifi$ate is a)ready sffi$ient to 'est the )o$a) $ha&ter with )e!a)
&ersona)ity. <owe'er# the )o$a) $ha&terKnion wi)) not be $onsidered to ha'e )e!a)
&ersona)ity for &r&oses of other ri!hts and &ri'i)e!es "e.!.# to bar!ain# to enter
into $ontra$ts# et$.% H7=D-- the other do$ments "a% and "b% as ad'erted abo'e
are -HBM,99DD to the D8=D 0e!iona) 8ffi$e or Brea of =abor 0e)ations# and
a $ertifi$ate of re!istration ha'in! been issed thereafter.
3.3 F0&.4+# -% '%$8.5 9&-< +#8%+-%+&0. +#D4&+#$#"-6 6<0.. "% .%"/#+ 3# 0 /+%4",
*%+ '0"'#..0-&%" %* 4"&%" +#/&6-+0-&%", 34- 6<0.. 643G#'- #++0"-
%**&'#+6P$#$3#+6 -% 8#"0.-5.
5A09. 2+2.A. 0e&ortoria) 0e2irements. . 9he fo))owin! are do$ments re2ired
to be sbmitted to the Brea by the )e!itimate )abor or!ani4ation $on$erned@
"a% ,ts $onstittion and by.)aws# or amendments thereto# the mintes of
ratifi$ation# and the )ist of members who too? &art in the ratifi$ation of the
$onstittion and by.)aws within thirty "30% days from ado&tion or ratifi$ation of the
$onstittion and by.)aw or amendments theretoI
"b% ,ts )ist of offi$ers# mintes of the e)e$tion of offi$ers# and )ist of 'oters within
thirty "30% days from e)e$tionI
"$% ,ts anna) finan$ia) re&ort within thirty "30% days after the $)ose of e'ery fis$a)
yearI and
"d% ,ts )ist of members at )east on$e a year or whene'er re2ired by the Brea.
Fai)re to $om&)y with the abo'e re2irements sha)) not be a !rond for
$an$e))ation of nion re!istration bt sha)) sb*e$t the errin! offi$ers or members
to ss&ension# e;&)sion from membershi&# or any a&&ro&riate &ena)ty.6
3.7 T<#+# 0+# "%9 FEWER /+%4",6 *%+ '0"'#..0-&%" %* 4"&%" +#/&6-+0-&%".
U",#+ -<# "#9 .09, -<#+# 0+# ONLY THREE GROUNDS 0..%9#,, 9<#+#06 -<#
%., .09 8+%2&,#6 *%+ 0- .#06- 6#2#"-##" !1I) ,&**#+#"- /+%4",6 *%+
'0"'#..0-&%". R#843.&' A'- N%. E7B1 0$#",#, ART. 23E %* -<# L03%+ C%,#
%" /+%4",6 *%+ '0"'#..0-&%" %* 4"&%" +#/&6-+0-&%", 06 *%..%96
5A09. 23(. >ronds for $an$e))ation of nion re!istration. . 9he fo))owin! may
$onstitte !ronds for $an$e))ation of nion re!istration@
"a% Misre&resentation# fa)se statement or frad in $onne$tion with the ado&tion or
ratifi$ation of the $onstittion and by.)aws or amendments thereto# the mintes of
ratifi$ation# and the )ist of members who too? &art in the ratifi$ationI
"b% Misre&resentation# fa)se statements or frad in $onne$tion with the e)e$tion of
offi$ers# mintes of the e)e$tion of offi$ers# and the )ist of 'otersI
(c) Go)ntary disso)tion by the members. !"#9 $%,#)
3.= WHAT CAN NO LONGER BE RECOGNIZED AS GROUNDS FOR
CANCELLATION OF UNION REGISTRATIONA
a) VIOLATIONS UNDER ARTICLE 23E OF THE LABOR CODE CAN NO
LONGER BE A GROUND FOR CANCELLATION OF UNION
REGISTRATION. T<#6# 0+#
1. Fai)re to sbmit $onsti# by.)aws and ratifi$ation do$s within 30 days from
ado&tion or ratifi$ation
2. Fai)re to sbmit anna) finan$ia) re&ort to BreaI misre&resentation# fa)se
entries or frad in &re&aration of finan$ia) statements
3. A$tin! as =abor.on)y $ontra$tor "Cabo%
+. Dnterin! into a CBA with sb.minimm &ro'isions
/. As?in!KA$$e&tin! attorney:s fees or ne!otiation fees from em&)oyers
1. Che$?in!.off withot si!ned indi'ida) written athori4ations
3. Fai)re to sbmit )ist of members year)y
3) VIOLATIONS UNDER ARTICLE 271 REFERRING TO RIGHTS AND
CONDITIONS OF UNION MEMBERSHIP NEVEN WITH SIGNATURE
RE?UIREMENTS CONSTITUTING 30T OF UNION MEMBERSHIPO, CAN NO
LONGER BE A GROUND FOR CANCELLATION OF UNION
REGISTRATION. T<#6# 0+#
1. 0i!ht to finan$ia) statements
2. 0i!ht to free)y e)e$t their offi$ers# or determine 2estions on ma*or nion &o)i$y#
by se$ret ba))ot
3. 7o )abor or!ani4ation sha)) ?nowin!)y admit as member any indi'ida) who
be)on!s to a sb'ersi'e or!ani4ationI
+. 0i!ht a!ainst $o))e$tion of fees withot de athorityI
/. 0i!ht to trans&aren$y in nion finan$es
1. 7o s&e$ia) assessments wi)) be made withot athori4ation by writtten reso)tion of
ma*ority of members in a !enera) membershi& meetin! $a))ed for s$h &r&ose
3. 7o $he$?.off of s&e$ia) assessment or ne!otiation fees or attys fees withot
indi'ida) written athori4ation d)y si!ned by em&)oyee
ADA;S NOTES ,m&)i$ation of abo'e is that the Hnion mst sti)) be a))owed to
e;ist notwithstandin! 'io)ations. ,f at a))# Hnion members and $on$erned &arties
are not withot any remedy# inasm$h as they may fi)e the ne$essary
administrati'e $ases a!ainst the nion offi$ers "Art. 2+2.A# =abor Code%. 7ote
frther@ 7othin! in )aw whi$h &rohibits fi)in! $rimina) and $i'i) $ases in the re!)ar
$orts# whene'er a&&)i$ab)e.
3.6 THE INCLUSION OF UNION MEMBERS OF EMPLOYEES OUTSIDE THE
BARGAINING UNIT NO LONGER A GROUND FOR CANCELLATION OF
UNION REGISTRATION. NOTE THAT THIS IS CONTARY TO THE
IMPLICATION IN PREVIOUS SUPREME COURT DECISIONS IN TOYOTA
MOTOR AND TAGAYTAY HIGHLANDS CASES.
0e&b)i$ A$t 7o. (+81# -e$. (. .. A new &ro'ision# Arti$)e 2+/.A is inserted into the =abor
Code to read as fo))ows@
5A09. 2+/.A. Dffe$t of ,n$)sion as Members of Dm&)oyees 8tside the
Bar!ainin! Hnit. . 9he in$)sion as nion members of em&)oyees otside the
bar!ainin! nit sha)) "%- be a !rond for the $an$e))ation of the re!istration of
the nion. S0&, #$8.%5##6 0+# 04-%$0-&'0..5 ,##$#, +#$%2#, *+%$ -<#
.&6- %* $#$3#+6<&8 %* 60&, 4"&%".6
3.I RE?UIREMENTS FOR VOLUNTARY CANCELLATION OF UNION
REGISTRATION C 2P3 VOTE OF GENERAL MEMBERSHIP
5A09. 23(.A. Go)ntary Can$e))ation of 0e!istration. . 9he re!istration of a
)e!itimate )abor or!ani4ation may be $an$e))ed by the or!ani4ation itse)f.
Pro'ided# T<0- 0- LEAST TWO-THIRDS %* &-6 /#"#+0. $#$3#+6<&8
2%-#6, in a meetin! d)y $a))ed for that &r&ose to disso)'e the or!ani4ation@
Pro'ided# frther# 9hat an a&&)i$ation to $an$e) re!istration is thereafter
sbmitted by the board of the or!ani4ation# attested to by the &resident thereof.6
3.B EXPLICIT PROVISION THAT EMPLOYER IS SIMPLY A BY-STANDER AND
CAN NO LONGER OPPOSE OR PARTICIPATE IN THE CERTIFICATION
PROCEEDINGS.
5A09. 2/8.A. Dm&)oyer as Bystander. . ,n a)) $ases# whether the &etition for
$ertifi$ation e)e$tion is fi)ed by an em&)oyer or a )e!itimate )abor or!ani4ation#
the em&)oyer sha)) not be $onsidered a &arty thereto with a $on$omitant ri!ht to
o&&ose a &etition for $ertifi$ation e)e$tion. T<# #$8.%5#+;6 80+-&'&80-&%" &"
64'< 8+%'##,&"/6 6<0.. 3# .&$&-#, -% !1) 3#&"/ "%-&*&#, %+ &"*%+$#,
%* 8#-&-&%"6 %* 64'< "0-4+#> 0", !2) 643$&--&"/ -<# .&6- %* #$8.%5##6
,4+&"/ -<# 8+#-#.#'-&%" '%"*#+#"'# 6<%4., -<# M#,-A+3&-#+ 0'-
*02%+03.5 %" -<# 8#-&-&%"
7. WHAT ARE THE RIGHTS APPURTENANT TO UNIONIZATIONA
9he $reation of a Hnion is 789 an a$t of dis)oya)ty to the em&)oyer
ri!ht to se a)) =AFFH= means of $ommni$atin! with em&)oyees# and to &ersade
them to *oin
nion may im&ose ob)i!ations &on its members# 'i4.# &ayment of nion des
ri!ht to e;&e) members who $ommit a$ts inimi$a) to the interests of the nion
ri!ht to be $ertified as e;$)si'e bar!ainin! a!ent
ri!ht to ma?e nion se$rity arran!ements
=. 2010-2012 CASES
=.1. O" L03%+ %+/0"&10-&%"> R#/&6-+0-&%" +#D4&+#$#"-6. S0$0<0"/ M0"//0/090 60
C<0+-#+ C<#$&'0. S%.&,0+&-5 %* U"&%"6 &" -<# P<&.&88&"#6 *%+ E$8%9#+$#"- 0", R#*%+$6 NSMCC-
SUPERO, Z0'0++&06 (#++5 V&'-%+&% C U"&%" P+#6&,#"- 2. C<0+-#+ C<#$&'0. 0", C%0-&"/
C%+8%+0-&%", G.R. N%. 1HEI1I, M0+'< 1H, 2011 . C
?4#6-&%" W<#-<#+ 0 '<0+-#+ '#+-&*&'0-# &664#, 35 -<# F#,#+0-&%" "##,6 -% 3#
'#+-&*&#, 0", 0--#6-#, 35 -<# .%'0. 4"&%" %**&'#+6, 06 80+- %* -<# +#/&6-+0-&%"
+#D4&+#$#"-6 %* 0 '<08-#+. C
A"69#+ N%. ,t is not ne$essary for the $harter $ertifi$ate to be $ertified and attested by the
)o$a)K$ha&ter offi$ers. Considerin! that the $harter $ertifi$ate is &re&ared and issed by the
nationa) nion and not the )o$a)K$ha&ter# it does not ma?e sense to ha'e the )o$a)K$ha&ter:s
offi$ers $ertify or attest to a do$ment whi$h they did not &re&are. ,n a$$ordan$e with this
r)in!# &etitioner nion:s $harter $ertifi$ate need not be e;e$ted nder oath. Conse2ent)y# it
'a)id)y a$2ired the stats of a )e!itimate )abor or!ani4ation &on sbmission of "1% its $harter
$ertifi$ate# "2% the names of its offi$ers# their addresses# and its &rin$i&a) offi$e# and "3% its
$onstittion and by.)awsQ the )ast two re2irements ha'in! been e;e$ted nder oath by the
&ro&er nion offi$ia)s.
=.2. U"&%"6> ,&60**&.&0-&%" -- C&+-#: E$8.%5##6 L03%+ U"&%"-F#,#+0-&%" %* F+## 9%+:#+6 26. C&+-#:
E.#'-+%"&'6, I"'., G.R. N%. 1E0=1=. (4"# H, 2011 .J
?4#6-&%" M05 -<# .%'0. 4"&%" ,&60**&.&0-# 0- 0"5 -&$#A
A"69#+ Y#6. A )o$a) nion may disaffi)iate at any time from its mother federation# absent any
showin! that the same is &rohibited nder its $onstittion or r)es. -$h disaffi)iation# howe'er#
does not res)t in it )osin! its )e!a) &ersona)ity.
A .%'0. 4"&%" ,%#6 "%- %9# &-6 #F&6-#"'# -% -<# *#,#+0-&%" 9&-< 9<&'< &- &6 0**&.&0-#,. I- &6
0 6#80+0-# 0", ,&6-&"'- 2%.4"-0+5 066%'&0-&%" %9&"/ &-6 '+#0-&%" -% -<# 9&.. %* &-6
$#$3#+6. 9he mere a$t of affi)iation does not di'est the )o$a) nion of its own &ersona)ity#
neither does it !i'e the mother federation the )i$ense to a$t inde&endent)y of the )o$a) nion. ,t
on)y !i'es rise to a $ontra$t of a!en$y where the former a$ts in re&resentation of the )atter. I"
-<# 8+#6#"- '06#, 9<#-<#+ -<# FFW 9#"- 0/0&"6- -<# 9&.. %* &-6 8+&"'&80. !-<# $#$3#+-
#$8.%5##6) 35 84+64&"/ -<# '06# ,#68&-# -<# 6&/"&"/ %* -<# MOA, &6 "%- *%+ -<# C%4+-,
"%+ *%+ +#68%",#"- #$8.%5#+ -% ,#-#+$&"#, 34- *%+ -<# U"&%" 0", FFW -% +#6%.2# %"
-<#&+ %9" 84+640"- -% -<#&+ 8+&"'&80.-0/#"- +#.0-&%"6<&8. Moreo'er# the isse of
disaffi)iation is an intra.nion dis&te whi$h mst be reso)'ed in a different form in an a$tion
at the instan$e of either or both the FFF and the nion or a ri'a) )abor or!ani4ation# bt not
the em&)oyer as in this $ase.
=.3. IMPORTANT CASE> NOT ASKED IN PREVIOUS BAR
?UESTION IS A REGISTERED UNION RE?UIRED TO SUBMIT FINANCIAL STATEMENTS
ANDPOR KEEP MEMBERSHIP REPRESENTING 20T OF THE APP. BARG. UNIT
THROUGHOUT ITS LIFETIME, OR RISK CANCELLATION OF ITS REGISTRATIONA T<#
H#+&-0/# H%-#. M0"&.0, 0'-&"/ -<+%4/< &-6 %9"#+, G+0", P.010 H%-#., C%+8. 26. N0-&%"0.
U"&%" %* W%+:#+6 &" -<# H%-#., R#6-04+0"- 0", A..&#, I",46-+&#6-H#+&-0/# H%-#. M0"&.0
S48#+2&6%+6 C<08-#+ !NUWHRAIN-HHMSC), G.R. N%. 1IB2EH, (0"40+5 12, 2011.
ANSWER NO. 9he $onstittiona))y !aranteed freedom of asso$iation and ri!ht of wor?ers to
se)f.or!ani4ation otwei!hs res&ondent:s non$om&)ian$e with the stattory re2irements to
maintain its stats as a )e!itimate )abor or!ani4ation.
9he amendment introd$ed by 0A (+81 so!ht to stren!then the wor?ers: ri!ht to se)f.
or!ani4ation and enhan$e the Phi)i&&ines: $om&)ian$e with its internationa) ob)i!ations as
embodied in the ,nternationa) =abor 8r!ani4ation ",=8% Con'ention 7o. 83# whi$h &ro'ides
that 5wor?ers: and em&)oyers: or!ani4ations sha)) not be )iab)e to be disso)'ed or ss&ended by
administrati'e athority.6 0eason behind this is that the $an$e))ation of nion re!istration by the
B=0 wo)d !i'e rise to the )oss of )e!a) &ersona)ity of the nion or )oss of ad'anta!es
ne$essary for it to $arry ot its a$ti'ities.
,n this $ase# it is ndis&ted that a&&e))ee fai)ed to sbmit its anna) finan$ia) re&orts and )ist of
indi'ida) members in a$$ordan$e with Arti$)e 23( of the =abor Code. H%9#2#+, -<# #F&6-#"'#
%* -<&6 /+%4", 6<%4., "%- "#'#660+&.5 .#0, -% -<# '0"'#..0-&%" %* 4"&%" +#/&6-+0-&%". At
any rate# the Cort in this $ase too? note of the fa$t that on 1( May 2000# a&&e))ee had
sbmitted its finan$ia) statement for the years 1((1.1(((. Fith this sbmission# a&&e))ee has
sbstantia))y $om&)ied with its dty to sbmit its finan$ia) re&ort for the said &eriod.
.
9here is a)so nothin! essentia))y mysterios or irre!)ar abot the fa$t that on)y 123 members
ratified the nion:s $onstittion and by.)aws when 128 si!ned the attendan$e sheet. ,t $annot
be assmed that a)) those who attended a&&ro'ed of the $onstittion and by.)aws. Any member
had the ri!ht to ho)d ot and refrain from ratifyin! those do$ments or to sim&)y i!nore the
&ro$ess. AT ANY RATE, THE LABOR CODE AND ITS IMPLEMENTING RULES DO NOT
RE?UIRE THAT THE NUMBER OF MEMBERS APPEARING ON THE DOCUMENTS IN
?UESTION SHOULD COMPLETELY DOVETAIL. F%+ 06 .%"/ 06 -<# ,%'4$#"-6 0",
6&/"0-4+#6 0+# 6<%9" -% 3# /#"4&"# 0", +#/4.0+ 0", -<# '%"6-&-4-&%" 0", 35-.096
,#$%'+0-&'0..5 +0-&*&#,, -<# 4"&%" &6 ,##$#, -% <02# '%$8.&#, 9&-< +#/&6-+0-&%"
+#D4&+#$#"-6.
-ee a)so simi)ar $ase of M0+&9060 S&0$ C#+0$&'6 26. S#'+#-0+5 %* L03%+ #- 0.., GR N%.
1B331I, 21 D#' 200E.# where a sbstantia) nmber of members a))e!ed)y re$anted their
membershi& in the nion and this was made a !rond for $an$e))ation of nion re!istration.
5Fe $annot !i'e f)) $reden$e to these affida'its whi$h were e;e$ted nder ss&i$ios
$ir$mstan$es# and whi$h $ontain a))e!ations ns&&orted by e'iden$e. At best# these
affida'its are se)f.ser'in!. 9hey &ossess no &robati'e 'a)e. 7e'erthe)ess# e'en assmin! the
'era$ity of said affida'its# the )e!itima$y of the res&ondent Hnion as a )abor or!ani4ation mst
be affirmed. Fhi)e it is tre that withdrawa) of s&&ort may be $onsidered as resi!nation from
the nion# THE FACT REMAINS THAT AT THE TIME OF THE UNION;S APPLICATION FOR
REGISTRATION, THE AFFIANTS WERE MEMBERS OF THE UNION AND COMPRISED
MORE THAN THE RE?UIRED 20T MEMBERSHIP FOR PURPOSES OF REGISTRATION
AS A UNION. ART. 237 MERELY RE?UIRES A MINIMUM OF 20T MEMBERSHIP DURING
APPLICATION FOR UNION REGISTRATION. IT DOES NOT MANDATE THAT A UNION
MUST MAINTAIN THE 20T MINIMUM MEMBERSHIP RE?UIREMENT ALL THROUGHOUT
ITS EXISTENCE.
I. APPROPRIATE BARGAINING UNIT
1. B0+/0&"&"/ 4"&-, ,#*&"#,. - A Mbar!ainin! nitM has been defined as a !ro& of em&)oyees of
a !i'en em&)oyer# $om&rised of a)) or )ess than a)) of the entire body of em&)oyees# whi$h the
$o))e$ti'e interest of a)) the em&)oyees# $onsistent with e2ity to the em&)oyer# indi$ate to be
the best sited to ser'e the re$i&ro$a) ri!hts and dties of the &arties nder the $o))e$ti'e
bar!ainin! &ro'isions of the )aw. ">o)den Farms 's. Ca))e*a# s&ra.%
2. R0-&%"0.# 9he )aw en$ora!es em&)oyee &arti$i&ation in &o)i$y and de$ision ma?in!# whi)e
&romotin! $o))e$ti'e bar!ainin!. <en$e# it &ro'ides for e)e$tion of a )e!itimate )abor
or!ani4ation that wi)) e;$)si'e)y re&resent the em&)oyees for &r&oses of $o))e$ti'e bar!ainin!
with em&)oyer# for im&ro'ed terms and $onditions of wor?.
3. A+# #$8.%5##6 8+#'.4,#, *+%$ +0&6&"/ /+&#20"'#6 &" -<# 036#"'# %* 0 .03%+
%+/0"&10-&%" '#+-&*&#, 06 0" #F'.46&2# 30+/0&"&"/ +#8+#6#"-0-&2#A
N%. 9he )aw )i?ewise &romotes the $reation of a =abor Mana!ement Con$i) "=MC% whi$h may
e;ist in $om&anies withot a nion# or may e'en $o.e;ist with a nion. Arisdi$tion &ertains to
!rie'an$es whi$h arise from inter&retation or im&)ementation of CBA# or of $om&any &ersonne)
&o)i$ies. ,n fa$t# Arti$)e 2// of the =abor Code &ro'ides that any indi'ida) em&)oyee or !ro&
of em&)oyees ha'e the ri!ht# at any time# to &resent their !rie'an$es to the em&)oyer.
7. W<0- &6 0 8+%8#+ 30+/0&"&"/ 4"&-A
A &ro&er bar!ainin! nit may be said to be a !ro& of em&)oyees of a !i'en em&)oyer#
$om&rised of a)) or )ess than a)) of the entire body of em&)oyees# whi$h the $o))e$ti'e interest of
a)) of the em&)oyees indi$ate to be best sited to ser'e the re$i&ro$a) ri!hts and dties of the
&arties nder the Co))e$ti'e bar!ainin! &ro'isions of the )aw. ">o)den Farms 's. Ca))e*a# s&ra.%
It is that group o, 3obs that serves as the election constituency in the enterprise.
=. D#-#+$&"0-&%" %* -<# 088+%8+&0-# 30+/0&"&"/ 4"&-. ... 9he fndamenta) fa$tors
in determinin! the a&&ro&riate $o))e$ti'e bar!ainin! nit are enmerated in the $ase of -an
Mi!e) 's. =a!esma# 231 -C0A /(/@
"a% >=8BD D8C90,7D . the wi)) of the em&)oyeesI
"b% COMMUNITY OF INTERESTS RULE . whi$h ta?es into $onsideration the affinity and nity
of em&)oyees: interests# s$h as sbstantia) simi)arity of wor? and dties# or simi)arity of
$om&ensation and wor?in! $onditionsI
"$% Prior bar!ainin! historyI and
"d% -imi)arity of em&)oyment stats#
1. G#"#+0. R4.#@ '%$$4"&-5 %+ $4-40.&-5 %* &"-#+#6-6.
9he most effi$a$ios bar!ainin! nit is one whi$h is $om&rised of wor?ers en*oyin! $ommnity
of interests. 9his is so be$ase the basi$ test of a bar!ainin! nit:s a$$e&tabi)ity is whether it
wi)) best assre to a)) em&)oyees $on$erned of the e;er$ise of their $o))e$ti'e bar!ainin! ri!hts.
F0'-%+6 -% 3# '%"6&,#+#,@ "a% simi)arity in s$a)e and manner of determinin! earnin!sI "b%
simi)arity in em&)oyment benefits# hors of wor?# other terms and $onditions of em&)oymentI "$%
simi)arity in ?ind of wor? &erformedI "d% simi)arity in 2a)ifi$ations# s?i))s# trainin! of em&)oyeesI
"e% fre2en$y of $onta$t or inter$han!e between em&)oyeesI "f% !eo!ra&hi$ &ro;imityI "!%
$ontinity or inte!ration of &rod$tion &ro$essesI "h% $ommon s&er'ision and determination of
$o))e$ti'e bar!ainin!I et$.
(. CERTIFICATION ELECTION !FRAMEWORK)
1. D#*&"&-&%" 0", "0-4+# %* '#+-&*&'0-&%" #.#'-&%"
1.1 Definition@ ,t is the &ro$ess of determinin! the so)e and e;$)si'e bar!ainin! a!ent of the
em&)oyees in an a&&ro&riate bar!ainin! nit for &r&oses of $o))e$ti'e bar!ainin!. "-e$.
BnC# 0)e ,# Boo? G# ,m&)ementin! 0)es.%
1.2 7atre of $ertifi$ation e)e$tion A $ertifi$ation e)e$tion is not a )iti!ation bt mere)y an
in'esti!ation of a non.ad'ersaria) fa$t.findin! $hara$ter in whi$h the Brea of =abor
0e)ations &)ays the &art of a disinterested in'esti!ator see?in! mere)y to as$ertain the
desires of the em&)oyees as to the matter of their re&resentation. "Air)ine Pi)ots Assn. 8f
the Phi)i&&ines 's. C,0# 31 -C0A 23+.%
2. R%.# %* E$8.%5#+ ,4+&"/ '#+-&*&'0-&%" #.#'-&%"6
G#"#+0. R4.# 9he em&)oyer is not a &arty in a $ertifi$ation e)e$tion# whi$h a$ti'ity is the so)e
$on$ern of the wor?ers. ,t is im&ro&er for the em&)oyer to be &resent at a)) drin! the
&ro$eedin!s# e'en as an obser'er# )et a)one sit and &arti$i&ate therein thr a re&resentati'e.
9hs# 0e&b)i$ A$t 7o. (+81 e;&)i$it)y mandates that the em&)oyer is to be a BE-9A7DD0 in
the $ertifi$ation e)e$tion &ro$eedin!s. <en$e@
5Art. 2/8.A# =C. .. ,n a)) $ases# whether the &etition for $ertifi$ation e)e$tion is
fi)ed by an em&)oyer or a )e!itimate )abor or!ani4ation# the em&)oyer sha)) not be
$onsidered a &arty thereto with a $on$omitant ri!ht to o&&ose a &etition for
$ertifi$ation e)e$tion. T<# #$8.%5#+;6 80+-&'&80-&%" &" 64'< 8+%'##,&"/6
6<0.. 3# .&$&-#, -% !1) 3#&"/ "%-&*&#, %+ &"*%+$#, %* 8#-&-&%"6 %* 64'<
"0-4+#> 0", !2) 643$&--&"/ -<# .&6- %* #$8.%5##6 ,4+&"/ -<# 8+#-
#.#'-&%" '%"*#+#"'# 6<%4., -<# M#,-A+3&-#+ 0'- *02%+03.5 %" -<#
8#-&-&%"M
EF'#8-&%" Fhere the em&)oyer has to fi)e a &etition for $ertifi$ation e)e$tion &rsant
to Art. 2/8 of the =abor Code be$ase it was re2ested to bar!ain $o))e$ti'e)y. D'en
then# it be$omes a netra) bystander.
2. O-<#+ :&",6 %* +#'%/"&-&%" %* #$8.%5## +#8+#6#"-0-&%"
#F'.4,&"/ '#+-&*&'0-&%" #.#'-&%"6
2.1D&+#'- '#+-&*&'0-&%" - "%- 0..%9#,
Centra) 7e!ros D)e$tri$ Coo&. 's. -e$. of =abor# 201 -C0A /8+
Certifi$ation of an e;$)si'e bar!ainin! a!ent withot need of e)e$tion behin! he)d
for the &r&ose no )on!er a))owed and has been dis$ontined nder Arti$)e 2/3 of
the =abor Code. 9his amendment affirms the s&eriority of the $ertifi$ation e)e$tion
o'er dire$t $ertifi$ation e)e$tion "0ationa)e@ &re'ent &ossib)e abse thereof by
em&)oyers# by $ertifyin! $om&any nion%
2.2 Go)ntary re$o!nition - D#8-. O+,#+ N%. E, R4.# X, S#'. I N'O> D#8- O+,#+ N%. 70-
03, R4.# VII.
9his is a))owed on)y if there is no other )e!itimate )abor or!ani4ation o&eratin!
within the bar!ainin! Hnit.
WHO HAS POWER TO RECOGNIZEA
DMP=8ED0 may 'o)ntari)y re$o!ni4e re&resentation stats of nion
ELEMENTS FOR VOLUNTARY RECOGNITION
Hnor!ani4ed estab)ishment
9here is 87=E 87D )e!itimate )abor or!ani4ation o&eratin! within the bar!ainin! nit
,f both e)ements are &resent# the em&)oyer MAE 8P9 to 'o)ntari)y re$o!ni4e the nion.
2.3C%"6#"- #.#'-&%" "A)i!re 's. De Mesa# 233 -C0A 1+3%
Consent e)e$tion is an one# the &r&ose mere)y bein! to determine the isse of ma*ority
re&resentation of a)) of the wor?ers in the a&&ro&riate bar!ainin! nit.
D#8-. O+,#+ N%. 70, R4.# B, S#'-&%" 10. C%"6#"- E.#'-&%"> A/+##$#"-. J I" '06# -<#
'%"-#",&"/ 4"&%"6 0/+## -% 0 '%"6#"- #.#'-&%", -<# M#,-A+3&-#+ 6<0.. "%- &664# 0
*%+$0. %+,#+ '0..&"/ *%+ -<# '%",4'- %* '#+-&*&'0-&%" #.#'-&%", 34- 6<0.. #"-#+ -<# *0'- %*
-<# 0/+##$#"- &" -<# $&"4-#6 %* -<# <#0+&"/. 9he mintes of the hearin! sha)) be si!ned
by the &arties and attested to by the Med.Arbiter. 9he Med.Arbiter sha))# immediate)y
thereafter# forward the re$ords of the &etition to the 0e!iona) Dire$tor or hisKher athori4ed
re&resentati'e for the determination of the D)e$tion 8ffi$er by the $ontendin! nions thro!h
raff)e. 9he first &re.e)e$tion $onferen$e sha)) be s$hed)ed within ten "10% days from the date
of entry of a!reement to $ond$t $onsent e)e$tion.
S#'-&%" 23. E**#'-6 %* '%"6#"- #.#'-&%". J Fhere a &etition for $ertifi$ation e)e$tion had
been fi)ed# and &on the inter$ession of the Med.Arbiter# the &arties a!ree to ho)d a $onsent
e)e$tion# the res)ts thereof sha)) $onstitte a bar to the ho)din! of a $ertifi$ation e)e$tion for
one "1% year from the ho)din! of s$h $onsent e)e$tion. Fhere an a&&ea) has been fi)ed from
the res)ts of the $onsent e)e$tion# the rnnin! of the one.year &eriod sha)) be ss&ended
nti) the de$ision on a&&ea) has be$ome fina) and e;e$tory.
Fhere no &etition for $ertifi$ation e)e$tion was fi)ed bt the &arties themse)'es a!reed to
ho)d a $onsent e)e$tion with the inter$ession of the 0e!iona) 8ffi$e# the res)ts thereof sha))
$onstitte a bar to another &etition for $ertifi$ation e)e$tion.
3. C#+-&*&'0-&%" #.#'-&%" 0", 8+%'#,4+#
A+-. 2=H-2=I, LC> BR R= S1-E, IRR> D#8-. O+,#+ N%. E 61-E, D#8-. O+,#+ N%. 70-03
R4.# VIII 61-2=. "P=DA-D -DD C<A09 5B6%
3.1 T9%-*%., %3G#'-&2#6 %* '#+-&*&'0-&%" #.#'-&%"
a% 9o determine the a&&ro&riate bar!ainin! nitI and
b% 9o as$ertain the ma*ority re&resentation of the bar!ainin! re&resentati'e#
if the em&)oyees desire to be re&resented at a)) by anyone.
3.2W<% $05 0", 9<#+# -% *&.# 8#-&-&%" *%+ CE
B/ 0/ -1.2# ,00I De&t 8rder 7o. +0.03# 08# se$s 1.2/
W<% $05 *&.#@ >enera) r)e . any )e!itimate )abor or!ani4ation
D;$e&tion J Dm&)oyer# if re2ested to bar!ain $o))e$ti'e)y and
the ma*ority stats of the )abor or!ani4ation is
2estionab)e
W<#+# -% *&.# Mediation.Arbitration Bran$h# thro!h the 0e!iona) 8ffi$e
whi$h has *risdi$tion o'er the &rin$i&a) offi$e of the em&)oyer. 8ffi$er who wi))
hear the &etition is $a))ed the Med.Arbiter.
F%+$ I* *&.#, 35 .#/&-&$0-# .03%+ %+/0"&10-&%", &etition mst be in writin!
and nder oath# and mst $ontain the fo))owin!@
"a% name of &etitionin! nion# address and affi)iation# if anyI
"b% name# address and natre of bsiness of em&)oyer
"$% des$ri&tion of a&&ro&riate bar!ainin! nit# not in$)din! the s&er'isory
em&)oyees
"d% a&&ro;imate nmber of em&)oyees in the a))e!ed bar!ainin! nit
"e% names and addresses of othe r)e!itimae )abor or!ns in the bar!ainin! nit#
if any
"f% si!natre of 2/% of a)) em&)oyees of the bar!ainin! nit# where the
estab)ishment is or!ani4ed
"!% other re)e'ant fa$ts
I* *&.#, 35 ER &" 0''%+,0"'# 9&-< A+-&'.# 2=E
"a% name# address and natre of bsienss
"b% name# address of )e!itimate )abor or!s in bar!ainin! nit
"$% a&&ro;. nmber of em&)oyees in bar!ainin! nit
"d% des$ri&tion of bar!ainin! nit
"e% other re)e'ant fa$ts
P+%'#,4+# &" *&.&"/ %* 8#-&-&%" *%+ '#+-&*&'0-&%"
#.#'-&%" D#8-. O+,#+ N%. 70-03, R4.# B, 6#'6. =-2=
(a) R0**.# %* -<# '06#. J H&on the fi)in! of the &etition# the 0e!iona) Dire$tor or any of
hisKher athori4ed re&resentati'e sha)) a))ow the &arty fi)in! the &etition to &ersona))y
determine the Med.Arbiter assi!ned to the $ase by means of a raff)e. Fhere there is
on)y one Med.Arbiter in the re!ion# the raff)e sha)) be dis&ensed with and the &etition
sha)) be assi!ned to himKher.
"b% N%-&'# %* 8+#.&$&"0+5 '%"*#+#"'#. J ,mmediate)y after the raff)e of the $ase or
re$ei&t of the &etition# the same sha)) be transmitted to the Med.Arbiter# who sha)) in
the same instan$e &re&are and ser'e &on the &etitionin! &arty a noti$e for
&re)iminary $onferen$e. 0he ,irst preliminary con,erence shall be scheduled
within ten C1#D days ,rom receipt o, the petition.
Fithin three "3% days from re$ei&t of the &etition# the Med.Arbiter sha)) $ase the
ser'i$e of noti$e for &re)iminary $onferen$e &on the em&)oyer and in$mbent
bar!ainin! a!ent in the sb*e$t bar!ainin! nit dire$tin! them to a&&ear before
himKher on a date# time and &)a$e s&e$ified. A $o&y of the noti$e of &re)iminary
$onferen$e and &etition for $ertifi$ation e)e$tion sha)) be &osted in at )east two
$ons&i$os &)a$es in the estab)ishment.
B$C P+#.&$&"0+5 C%"*#+#"'#> H#0+&"/. J 9he Med.Arbiter sha)) $ond$t a &re)iminary
$onferen$e and hearin! within ten "10% days from re$ei&t of the &etition to
determine the fo))owin!@
o the bar!ainin! nit to be re&resentedI
o $ontendin! )abor nionsI
o &ossibi)ity of a $onsent e)e$tionI
o e;isten$e of any of the bars to $ertifi$ation e)e$tion nder -e$tion 3 of this
0)eI and
o s$h other matters as may be re)e'ant for the fina) dis&osition of the $ase.
"d% N4$3#+ %* H#0+&"/6> P.#0,&"/6. J ,f the $ontendin! nions fai) to a!ree to a
$onsent e)e$tion drin! the &re)iminary $onferen$e# the Med.Arbiter may $ond$t as
many hearin!s as heKshe may deem ne$essary# bt in no $ase sha)) the $ond$t
thereof e;$eed fifteen "1/% days from the date of the s$hed)ed &re)iminary
$onferen$eKhearin!# after whi$h time the &etition sha)) be $onsidered sbmitted for
de$ision. 9he Med.Arbiter sha)) ha'e $ontro) of the &ro$eedin!s. Post&onements or
$ontinan$es sha)) be dis$ora!ed.
"e% O+,#+PD#'&6&%" %" -<# 8#-&-&%". J Fithin ten "10% days from the date of the )ast
hearin!# the Med.Arbiter sha)) isse a forma) order !rantin! the &etition or a de$ision
denyin! the same. ,n or!ani4ed estab)ishments# howe'er# no order or de$ision sha))
be issed by the Med.Arbiter drin! the freedom &eriod.
9he order !rantin! the $ond$t of a $ertifi$ation e)e$tion sha)) state the fo))owin!@
o the name of the em&)oyer or estab)ishmentI
o the des$ri&tion of the bar!ainin! nitI
o a statement that none of the !ronds for dismissa) enmerated in the s$$eedin!
&ara!ra&h e;istsI
o the names of $ontendin! )abor nions whi$h sha)) a&&ear as fo))ows@ &etitioner
nionKs in the order in whi$h their &etitions were fi)ed# for$ed inter'enor# and no
nionI and
o a dire$ti'e &on the em&)oyer and the $ontendin! nion"s% to sbmit within ten
"10% days from re$ei&t of the order# the $ertified )ist of em&)oyees in the
bar!ainin! nit# or where ne$essary# the &ayro))s $o'erin! the members of the
bar!ainin! nit for the )ast three "3% months &rior to the issan$e of the order.
"f% D#"&0. %* -<# 8#-&-&%"> G+%4",6. J 9he Med.Arbiter may dismiss the &etition on any
of the fo))owin! !ronds@
o the PETITIONER UNION IS NOT LISTED in the De&artment:s re!istry of
)e!itimate )abor nions or that ITS LEGAL PERSONALITY HAS BEEN
REVOKED OR CANCELLED WITH FINALITY in a$$ordan$e with 0)e P,G of
these 0)esI
o CONTRACT BAR RULE the &etition was fi)ed before or after the freedom &eriod
of a d)y re!istered $o))e$ti'e bar!ainin! a!reementI &ro'ided that the si;ty.day
&eriod based on the ori!ina) $o))e$ti'e bar!ainin! a!reement sha)) not be affe$ted
by any amendment# e;tension or renewa) of the $o))e$ti'e bar!ainin! a!reementI
o ONE YEAR BAR RULE the &etition was fi)ed within one "1% year from entry of
'o)ntary re$o!nition or a 'a)id $ertifi$ation# $onsent or rn.off e)e$tion and no
a&&ea) on the res)ts of the $ertifi$ation# $onsent or rn.off e)e$tion is &endin!I
o DEADLOCK BAR RULE a d)y $ertified nion has $ommen$ed and sstained
ne!otiations with the em&)oyer in a$$ordan$e with Arti$)e 2/0 of the =abor Code
within the one.year &eriod referred to in -e$tion 1+.$ of this 0)e# or there e;ists
a bar!ainin! dead)o$? whi$h had been sbmitted to $on$i)iation or arbitration or
had be$ome the sb*e$t of a 'a)id noti$e of stri?e or )o$?ot to whi$h an
in$mbent or $ertified bar!ainin! a!ent is a &artyI
4.1 in $ase of an or!ani4ed estab)ishment# FAILURE TO SUBMIT THE
TWENTY-FIVE PERCENT "2/%% s&&ort re2irement for the fi)in! of the &etition
for
$ertifi$ation e)e$tion.
(g) R#.#06# %* O+,#+PD#'&6&%" 9&-<&" -#" !10) ,056 *+%$ -<# .06- <#0+&"/# J 9he
Med.Arbiter sha)) re)ease hisKher order or de$ision !rantin! or denyin! the &etition
&ersona))y to the &arties on an a!reed date and time.
"h% A88#0.. J 9he order !rantin! the $ond$t of a $ertifi$ation e)e$tion in an
4"%+/0"&1#, estab)ishment sha)) not be sb*e$t to a&&ea). Any isse arisin!
therefrom may be raised by means of &rotest on the $ond$t and res)ts of the
$ertifi$ation e)e$tion.
9he order !rantin! the $ond$t of a $ertifi$ation e)e$tion in an %+/0"&1#,
estab)ishment and the de$ision dismissin! or denyin! the &etition# whether in an
or!ani4ed or nor!ani4ed estab)ishment# may be a&&ea)ed to the 8ffi$e of the
-e$retary within -#" !10) ,056 from re$ei&t thereof.
9he a&&ea) sha)) be 'erified nder oath and sha)) $onsist of a memorandm of
a&&ea)# s&e$ifi$a))y statin! the !ronds re)ied &on by the a&&e))ant with the
s&&ortin! ar!ments and e'iden$e.
W<#+# -% *&.# 088#0.. J 9he memorandm of a&&ea) sha)) be fi)ed in the
0e!iona) 8ffi$e where the &etition ori!inated# $o&y frnished the $ontendin!
nions and the em&)oyer# as the $ase may be. Fithin twenty.for "2+% hors from
re$ei&t of the a&&ea)# the 0e!iona) Dire$tor sha)) $ase the transmitta) thereof
to!ether with the entire re$ords of the $ase to the 8ffi$e of the -e$retary.
F&"0.&-5 %* O+,#+PD#'&6&%". J Fhere no a&&ea) is fi)ed within the ten.day &eriod#
the Med.Arbiter sha)) enter the fina)ity of the orderKde$ision in the re$ords of the
$ase and $ase the transmitta) of the re$ords of the &etition to the 0e!iona) Dire$tor.
P#+&%, -% R#8.5. J A re&)y to the a&&ea) may be fi)ed by any &arty to the &etition
within ten "10% days from re$ei&t of the memorandm of a&&ea). 9he re&)y sha)) be
fi)ed dire$t)y with the 8ffi$e of the -e$retary.
(g) D#'&6&%" %* -<# S#'+#-0+5. J 9he -e$retary sha)) ha'e fifteen "1/% days from re$ei&t
of the entire re$ords of the &etition within whi$h to de$ide the a&&ea). 9he fi)in! of
the memorandm of a&&ea) from the order or de$ision of the Med.Arbiter stays the
ho)din! of any $ertifi$ation e)e$tion.
9he de$ision of the -e$retary sha)) be$ome fina) and e;e$tory after ten "10% days
from re$ei&t thereof by the &arties. 7o motion for re$onsideration of the de$ision
sha)) be entertained.
3.3 W<#" -% *&.# 8#-&-&%" *%+ CE
3.3.1 I* 4"%+/0"&1#, #6-03.&6<$#"- "B/ 0/ -3.1# ,00%
- Petition for $ertifi$ation e)e$tion may be fi)ed 0- 0"5 -&$# 35 0 .#/&-&$0-#
.03%+ %+/0"&10-&%"
- 7ote that the 2/% si!natre re2irement is not a&&)i$ab)e. FhyL =itera)
inter&ration of )aw in fa'or of )abor. 9he =abor Code mere)y &ro'ides that it
may be fi)ed by any )e!itimate )abor or!ani4ation.
3.3.2 I* %+/0"&1#, #6-03.&6<$#"- !9&-< #F&6-&"/ $0G%+&-5 4"&%")
a% N% ,4.5 +#/&6-#+#, CBA J Petition for $ertifi$ation e)e$tion may be fi)ed
0- 0"5 -&$#
b% W&-< ,4.5 +#/&6-#+#, CBA . D8 (# 0)e P,# -3
1) C%"-+0'- 30+ +4.# . on)y drin! freedom &eriod
"Art. 232# =CI B/ 0/ -+# ,00I see &re'ios notes%
N%-#1 ,f a CBA has been d)y re!istered in a$$ordan$e with Arti$)e
231# a &etition for CD or motion for inter'ention $an on)y be
entertained within H0 ,056 8+&%+ -% -<# #F8&+5 ,0-# %* -<# CBA
!*+##,%$ 8#+&%,).
N%-#2 T<# %8#+0-&2# 8<+06# <#+# &6 LDULY REGISTERED CBAM.
<en$e# if CBA has been e;e$ted# bt &arties did not re!ister the CBA
with the De&artment of =abor "Brea of =abor 0e)ations# then
$ontra$t bar r)e wi)) not a&&)y. A &etition for $ertifi$ation e)e$tion may
sti)) &ros&er in this instan$e.
2) O"# 5#0+ 30+ +4.#> 0.6% :"%9" 06 '#+-&*&'0-&%" 5#0+ 30+ +4.# "B/
0/ -3# ,00%
7o $ertifi$ation e)e$tion may be he)d within one "1% year from the date
of the issan$e of a fina) $ertifi$ation e)e$tion res)t.
N%-#1 9his &res&&oses that the em&)oyees of the a&&ro&riate
bar!ainin! nit did not want to be re&resented by any nion# or that
ha'in! e)e$ted a ma*ority nion as e;$)si'e bar!ainin!
re&resentati'e# the )atter is !i'en one "1% year within whi$h to
ne!otiate with the em&)oyer.
N%-# 2@ Fhere the one year &eriod J ?nown as the $ertifi$ation year
drin! whi$h the $ertified nion is re2ired to ne!otiate with the
em&)oyer and the fi)in! of a &etition for CD is &rohibited J has e;&ired
and the ma*ority nion fai)s to brin! the em&)oyer to the bar!ainin!
tab)e# the minority nion may fi)e &etition for CD. "Oaisahan n!
Man!!a!awa 's. 9ra*ano# 201 -C0A +/3%
3) D#0,.%': 30+ +4.# "B/ 0/ -3# ,00%
7either may a re&resentation 2estion be entertained if# before the
fi)in! of a &etition for $ertifi$ation e)e$tion# a CBA dead)o$? to whi$h an
in$mbent or $ertified bar!ainin! a!ent is a &arty# had been sbmitted
for $on$i)iation or arbitration# or had be$ome the sb*e$t of a 7either
may a re&resentation 2estion be entertained if# before the fi)in! of a
&etition for $ertifi$ation e)e$tion# a CBA dead)o$? to whi$h an
in$mbent or $ertified bar!ainin! a!ent is a &arty# had been sbmitted
for $on$i)iation or arbitration# or had be$ome the sb*e$t of a 'a)id
noti$e of stri?eK)o$?.ot
3.7 IN ANY EVENT, REGISTRATION OF UNION CANNOT BE ATTACKED
COLLATERALLY DURING THE CERTIFICATION ELECTION PROCEEDINGS
D#8-. O+,#+ N%. 70, R4.# B, 6#'. 1=. P+%<&3&-#, /+%4",6 *%+ -<# ,#"&0.P6468#"6&%" %*
-<# 8#-&-&%". J A)) isses &ertainin! to the e;isten$e of em&)oyer.em&)oyee re)ationshi&#
e)i!ibi)ity or mi;tre in nion membershi& raised before the Med.Arbiter drin! the
hearin!"s% and in the &)eadin!s sha)) be reso)'ed in the same order or de$ision !rantin! or
denyin! the &etition for $ertifi$ation e)e$tion. A"5 D4#6-&%" 8#+-0&"&"/ -% -<# 20.&,&-5 %*
8#-&-&%"&"/ 4"&%";6 '#+-&*&'0-# %* +#/&6-+0-&%" %+ &-6 .#/0. 8#+6%"0.&-5 06 0 .03%+
%+/0"&10-&%", 20.&,&-5 %* +#/&6-+0-&%" 0", #F#'4-&%" %* '%..#'-&2# 30+/0&"&"/
0/+##$#"-6 6<0.. 3# <#0+, 0", +#6%.2#, 35 -<# R#/&%"0. D&+#'-%+ &" 0" &",#8#",#"-
8#-&-&%" *%+ '0"'#..0-&%" %* &-6 +#/&6-+0-&%" AND NOT BY THE MED-ARBITER IN THE
PETITION FOR CERTIFICATION ELECTION# n)ess the &etitionin! nion is not fond in
the De&artment:s roster of )e!itimate )abor or!ani4ations or an e;istin! $o))e$ti'e
bar!ainin! a!reement is nre!istered with the De&artment.
LABOR ORGANIZATION> COLLATERAL ATTACK ON LEGAL PERSONALITY IS
PROHIBITED.
S0$0<0"/ M0"//0/090 60 C<0+-#+ C<#$&'0. S%.&,0+&-5 %* U"&%"6 &" -<# P<&.&88&"#6 *%+
E$8%9#+$#"- 0", R#*%+$6 NSMCC-SUPERO, Z0'0++&06 (#++5 V&'-%+&% C U"&%" P+#6&,#"- 2.
C<0+-#+ C<#$&'0. 0", C%0-&"/ C%+8%+0-&%", G.R. N%. 1HEI1I, M0+'< 1H, 2011 . -- 0es&ondent
$om&any 2estioned the )e!a) &ersona)ity of the &etitioner nion in a $ertifi$ation e)e$tion
&ro$eedin!. 9he Cort r)ed that the )e!a) &ersona)ity of the &etitioner nion $annot
be $o))atera))y atta$?ed by res&ondent $om&any. D;$e&t when it is re2ested to
bar!ain $o))e$ti'e)y# an em&)oyer is a mere bystander to any &etition for $ertifi$ation
e)e$tionI s$h &ro$eedin! is non.ad'ersaria) and mere)y in'esti!ati'e# $onsiderin! that its
&r&ose is to determine if the em&)oyees wo)d )i?e to be re&resented by a nion and to
se)e$t the or!ani4ation that wi)) re&resent them in their $o))e$ti'e bar!ainin! with the
em&)oyer. 9he $hoi$e of their re&resentati'e is the e;$)si'e $on$ern of the em&)oyeesI
the em&)oyer $annot ha'e any &artisan interest thereinI it $annot interfere with# m$h )ess
o&&ose# the &ro$ess by fi)in! a motion to dismiss or an a&&ea) from itI not e'en the
a))e!ation that some em&)oyees &arti$i&atin! in a &etition for $ertifi$ation e)e$tion are
a$ta))y mana!eria) em&)oyees wi)) !i'e an em&)oyer )e!a) &ersona)ity to b)o$? the
$ertifi$ation e)e$tion. 9he em&)oyer:s on)y ri!ht in the &ro$eedin! is to be notified or
informed thereof.
CERTIFICATION ELECTION> PENDENCY OF A PETITION FOR CANCELLATION
OF UNION REGISTRATION DOES NOT PRECLUDE COLLECTIVE BARGAINING.
L#/#", I"-#+"0-&%"0. R#6%+-6 L&$&-#, 2. K&.460"/ M0"//0/090 "/ L#/#",0, G.R. N%.
1HEI=7, F#3+40+5 23, 2011. '' 0es&ondent nion fi)ed a &etition for $ertifi$ation e)e$tion.
Petitioner mo'ed to dismiss the &etition for $ertifi$ation e)e$tion a))e!in! the &enden$y of a
&etition for $an$e))ation of the nion:s re!istration. 9he D8=D -e$retary r)ed in fa'or of
the )e!itima$y of the res&ondent as a )abor or!ani4ation and ordered the immediate
$ond$t of a $ertifi$ation e)e$tion. Pendin! a&&ea) in the Cort of A&&ea)s# the &etition for
$an$e))ation was !ranted and be$ame fina) and e;e$tory. Petitioner ar!ed that the
$an$e))ation of the nion:s $ertifi$ate of re!istration sho)d retroa$t to the time of its
issan$e. 9hs# it $)aimed that the nion:s &etition for $ertifi$ation e)e$tion and its demand
to enter into $o))e$ti'e bar!ainin! a!reement with the &etitioner sho)d be dismissed de
to res&ondent:s )a$? of )e!a) &ersona)ity. T<# C%4+- +4.#, -<0- -<# 8#",#"'5 %* 0
8#-&-&%" *%+ '0"'#..0-&%" %* 4"&%" +#/&6-+0-&%" ,%#6 "%- 8+#'.4,# '%..#'-&2#
30+/0&"&"/, 0", -<0- 0" %+,#+ -% <%., 0 '#+-&*&'0-&%" #.#'-&%" &6 8+%8#+ ,#68&-# -<#
8#",#"'5 %* -<# 8#-&-&%" *%+ '0"'#..0-&%" %* -<# 4"&%";6 +#/&6-+0-&%" 3#'046# 0- -<#
-&$# -<# +#68%",#"- 4"&%" *&.#, &-6 8#-&-&%", &- 6-&.. <0, -<# .#/0. 8#+6%"0.&-5 -%
8#+*%+$ 64'< 0'- 036#"- 0" %+,#+ '0"'#..&"/ &-6 +#/&6-+0-&%".
+. RE?UIREMENTS FOR VALID CERTIFICATION ELECTION
"De&t. 8rder 7o.(# -e$tion 12# 0)e P,,,I De&t 8rder 7o. +0.03 0)e (%
+.1 TO FIND OUT IF THERE IS A VALID ELECTION 9o ha'e a 'a)id e)e$tion# a ma*ority of
a)) e)i!ib)e 'oters in the a&&ro&riate bar!ainin! nit mst ha'e CA-9DD their 'otes
"AH-9 C8H79 <8F MA7E G89DD%.
+.2 TO FIND OUT WHO WON ELECTIONS 9he Hnion obtainin! ma*ority of A== GA=,D
G89D- $ast sha)) be $ertified as so)e and e;$)si'e bar!ainin! re&resentati'e of the
wor?ers in the a&&ro&riate bar!ainin! nit.
+.3 7ote for $om&tation of e)i!ib)e 'oters@ base nmber is "%- )imited to the members of the
nion# bt sha)) &"'.4,# 3%-< 4"&%" 0", "%"-4"&%" $#$3#+6# as )on! as they are &art of
the bar!ainin! nit.
EF0$8.#1 100 $#$3#+6 &" -<# 088+%8+&0-# 30+/0&"&"/ 4"&-
E.#'-&%" +#64.-6 U"&%" A C 70 N% U"&%" - 2
U"&%" B C = I..#/0.P6-+05 2%-#6 10
Q1@ ,s there a 'a)id e)e$tionL Ees. /3 members "re2irement@ /1 members on)y% $ast
their 'otes
Q2@ Fho wonL Hnion A. 8t of +3 'a)id 'otes# Hnion A won ma*ority thereof "+3 di'ided
by 2 V 23./ [ 1 V 2+./%
EF0$8.#2 100 $#$3#+6 &" -<# 088+%8+&0-# 30+/0&"&"/ 4"&-
E.#'-&%" +#64.-6 U"&%" A C 70 N% U"&%" - 2
U"&%" B C = I..#/0.P6-+05 2%-#6 0
Q1@ ,s there a 'a)id e)e$tionL 7o 'a)id e)e$tion. 8n)y +3 'oted. A ma*ority of the members
of the a&&ro&riate bar!ainin! nit did not 'ote.
Q2@ 0emedy@ 0e.rn or re&eat the $ertifi$ation e)e$tion.
7.7 RUN-OFF ELECTION, RE?UISITES !D#8-. O+,#+ N%. E, R4.# XIII)
a% Between three or more $hoi$es# and no $hoi$e re$ei'in! a ma*ority of the 'a)id 'otes
$astI
b) 9he tota) nmber of 'otes for a)) $ontendin! nions &6 0- .#06- =0T %* -<# "4$3#+
%* 2%-#6 '06-
$% Between the two )abor nions re$ei'in! the two hi!hest nmber of 'otes.
EF0$8.# 100 $#$3#+6 &" -<# 088+%8+&0-# 30+/0&"&"/ 4"&-. A.. $#$3#+6 '06-#,
-<#&+ 2%-#6.
E.#'-&%" +#64.-6 U"&%" A C 27 U"&%" C - 10
U"&%" B C 1= N% U"&%" - =
T%-0. "4$3#+ %* 2%-#6 =7 20.&, 2%-#6, 9&-< -<# +#6- ,#'.0+#, &..#/0. %+ 6-+05
!036-#"-&%"6 0+# "%- 20.&, 2%-#6 #&-<#+).
Q1@ ,s the e)e$tion 'a)idL Ees# be$ase e'eryone 'oted.
Q2@ Fho wonL 7one of the three nions won# be$ase not one re$ei'ed a ma*ority of
the 'a)id 'otes $ast. "Ma*ority is 28 'otes%
Q3@ ,s rn.off e)e$tion a remedy hereL 7o. 9he tota) nmber of 'otes for a)) $ontendin!
nions is LESS -<0" =0T %* ALL %* -<# "4$3#+ %* 2%-#6 '06- . "Hnions A# B and
C !arnered +( 'otes# or at )east one 'ote short of the re2irement%.
0emedy@ 0e.e)e$tion "or re.rn e)e$tion# &er Pas$a)%
=. IMPORTANT CASE NUHWRAIN MANILA PAVILLION VS. MANILA PAVILLION HOTEL,
G.R. N%. 1B1=31, 31 (4.5 200E '&-&"/ A&+-&$# S8#'&0.&6- 26. C0..#G0C NOT ASKED IN 2010,
2011 OR 2012 BAR.
I664# M05 -<# 8+%30-&%"0+5 #$8.%5##6 3# 0..%9#, -% 2%-# &" -<# '#+-&*&'0-&%" #.#'-&%"6, &"
-<# .&/<- %* 0 CBA 8+%2&6&%" #F8.&'&-.5 #F'.4,&"/ -<#$ &" -<# 2%-#A
A"69#+ YES. 9he &ro'ision in the CBA dis2a)ifyin! &robationary em&)oyees from 'otin!
$annot o'erride the Constittiona))y.&rote$ted ri!ht of wor?ers to se)f.or!ani4ation# as we)) as the
&ro'isions of the =abor Code and its ,m&)ementin! 0)es on $ertifi$ation e)e$tions and
*ris&rden$e thereon. A )aw is read into# and forms &art of# a $ontra$t. Pro'isions in a $ontra$t
are 'a)id on)y if they are not $ontrary to )aw# mora)s# !ood $stoms# &b)i$ order or &b)i$ &o)i$y.
In a certification election" all ran4 and file employees in the appropriate
bar.ainin. ,nit" whether probationary or permanent are entitled to vote. This
principle is clearly stated in 6rt. )22 of the 5abor ode which states that the
Plabor or.anization desi.nated or selected by the ma?ority of the employees in an
appropriate bar.ainin. ,nit shall be the e=cl,sive representative of the
employees in s,ch ,nit for p,rposes of collective bar.ainin..P ollective
bar.ainin. covers all aspects of the employment relation and the res,ltant -6
ne.otiated by the certified ,nion binds all employees in the bar.ainin. ,nit.
:ence" all ran4 and file employees" probationary or permanent" have a
s,bstantial interest in the selection of the bar.ainin. representative. The ode
ma4es no distinction as to their employment stat,s as basis for eli.ibility in
s,pportin. the petition for certification election. The law refers to PallP the
employees in the bar.ainin. ,nit. 6ll they need to be eli.ible to s,pport the
petition is to belon. to the Pbar.ainin. ,nit.P
K. INTER-UNION AND INTRA-UNION DISPUTES
!DOLE D#8-. O+,#+ N%. 70-03, 6#+&#6 %* 2003)
1. WHAT ARE INTER OR INTRA-UNION DISPUTES !6#' 1R2)
"a% $an$e))ation of re!istration of a )abor or!ani4ation fi)ed by its members or by another
)abor or!ani4ationI
"b% $ond$t of e)e$tion of nion and wor?ers: asso$iation offi$ersKn))ifi$ation of e)e$tion of
nion and wor?ers: asso$iation offi$ersI
"$% aditKa$$onts e;amination of nion or wor?ers: asso$iation fndsI
"d% dere!istration of $o))e$ti'e bar!ainin! a!reementsI
"e% 'a)idityKin'a)idity of nion affi)iation or disaffi)iationI
"f% 'a)idityKin'a)idity of a$$e&tan$eKnon.a$$e&tan$e for nion membershi&I
"!% 'a)idityKin'a)idity of im&ea$hmentKe;&)sion of nion and wor?ers asso$iation offi$ers
and membersI
"h% 'a)idityKin'a)idity of 'o)ntary re$o!nitionI
"i% o&&osition to a&&)i$ation for nion and CBA re!istrationI
"*% 'io)ations of or disa!reements o'er any &ro'ision in a nion or wor?ers: asso$iation
$onstittion and by.)awsI
"?% disa!reements o'er $harterin! or re!istration of )abor or!ani4ations and $o))e$ti'e
bar!ainin! a!reementsI
")% 'io)ations of the ri!hts and $onditions of nion or wor?ers: asso$iation membershi&I
"m% 'io)ations of the ri!hts of )e!itimate )abor or!ani4ations# e;$e&t inter&retation of
$o))e$ti'e bar!ainin! a!reementsI
"n% s$h other dis&tes or $onf)i$ts in'o)'in! the ri!hts to se)f.or!ani4ation# nion
membershi& and $o))e$ti'e bar!ainin! J
"1% between and amon! )e!itimate )abor or!ani4ationsI
"2% between and amon! members of a nion or wor?ers: asso$iation.
8ther re)ated )abor re)ations dis&tes sha)) in$)de any $onf)i$t between a )abor nion and the
em&)oyer or any indi'ida)# entity or !ro& that is not a )abor or!ani4ation or wor?ers:
asso$iation. 9his in$)des@ "1% $an$e))ation of re!istration of nions and wor?ers asso$iationsI
and "2% a &etition for inter&)eader.
2. WHAT ARE THE EFFECTS OF PENDENCY OF INTERPINTRA-UNION DISPUTEA !S#' 3)
PARTIES TO REMAIN STATUS ?UO ANTE. 59he ri!hts# re)ationshi&s and ob)i!ations
of the &arties )iti!ants a!ainst ea$h other and other &arties.in.interest 8+&%+ -% -<#
&"6-&-4-&%" %* -<# 8#-&-&%" 6<0.. '%"-&"4# -% +#$0&" ,4+&"/ -<# 8#",#"'5 %* -<#
8#-&-&%" and nti) the date of fina)ity of the de$ision rendered therein. 9hereafter# the
ri!hts# re)ationshi&s and ob)i!ations of the &arties )iti!ants a!ainst ea$h other and other
&arties.in.interest sha)) be !o'erned by the de$ision so ordered.
INTERPINTRA-UNION DISPUTE SHALL NOT BE CONSIDERED PRE(UDICIAL
?UESTION. -- 9he fi)in! or &enden$y of any interKintra.nion dis&te and other re)ated
)abor re)ations dis&te is not a &re*di$ia) 2estion to any &etition for $ertifi$ation e)e$tion
and sha)) not be a !rond for the dismissa) of a &etition for $ertifi$ation e)e$tion or
ss&ension of &ro$eedin!s for $ertifi$ation e)e$tion.
3. WHO MAY FILE INTER OR INTRA-UNION DISPUTE !S#' 7)

Any )e!itimate )abor or!ani4ation or member"s% thereof s&e$ia))y $on$erned may fi)e a $om&)aint or
&etition in'o)'in! dis&tes or isses enmerated in "a% to "n% of -e$tion 1.

Any &arty.in.interest may fi)e a $om&)aint or &etition in'o)'in! dis&tes or isses re!ardin!
$an$e))ation of re!istration of nions and wor?ers asso$iationsI andKor a &etition for
inter&)eader

Fhere the isse in'o)'es the entire membershi& of the )abor or!ani4ation# the $om&)aint or &etition sha))
be s&&orted by at )east thirty &er$ent "30%% of its members.
7. WHERE TO FILE INTERPINTRA-UNION DISPUTES.
4.2Fith 0e!iona) 8ffi$e that issed the $ertifi$ate of re!istration or $ertifi$ate of $reation of
$hartered )o$a)# for the fo))owin! $om&)aints ..

Com&)aints or &etitions in'o)'in! )abor nions with inde&endent re!istrations# $hartered )o$a)s#
wor?ers: asso$iations# its offi$ers or members
Petitions for $an$e))ation of re!istration of )abor nions with inde&endent re!istration#
$hartered )o$a)s and wor?ers asso$iation sha)) be reso)'ed by the 0e!iona) Dire$tor.
<eK-he may a&&oint a <earin! 8ffi$er from the =abor 0e)ations Di'ision.
&etitions for dere!istration of $o))e$ti'e bar!ainin! a!reements
8ther interKintra.nion dis&tes and re)ated )abor re)ations dis&tes sha)) be heard and reso)'ed by
the Med.Arbiter in the 0e!iona) 8ffi$e.
+.2 Fith Brea of =abor 0e)ations# for the fo))owin! $om&)aints ..

Com&)aints or &etitioners in'o)'in! federations# nationa) or indstry nions# trade nion

$enters and their $hartered )o$a)s# affi)iates or member or!ani4ations# its offi$ers or member
or!ani4ations. "7ote# if fi)ed with the 0e!iona) 8ffi$e# the $om&)aintK&etition sha))
sti) be heard and reso)'ed by the Brea%.
Fhen two or more &etitions in'o)'in! the same &arties and the same $ases of a$tion are
fi)ed# the same sha)) be atomati$a))y $onso)idated.
5. IMPORTANT CASE MAY THE UNION COMPROMISE THE INDIVIDUAL MONEY CLAIMS
OF THE WORKERSA "Dsit <ote) 7i??o 's. 7ationa) Hnion of For?ers in <ote) 0estarant and
A))ied ,ndstries "7whrain%# 0( A!st 200/%
First# e'en if a $)ear ma*ority of the nion members a!reed to a sett)ement with the em&)oyer#
the Hnion has no athority to $om&romise the indi'ida) $)aims of the members who did not
$onsent to the sett)ement. 0)e 138# -e$ 23 of the 0)es of Cort re2ires a s&e$ia) athority
before an attorney may $om&romise his $)ient:s )iti!ation. 9he athority to $om&romise $annot
)i!ht)y be &resmed and sho)d be d)y estab)ished by e'iden$e.
,n this $ase# the minority nion members did not athori4e the Hnion to $om&romise their
indi'ida) $)aims. Absent a showin! of the Hnion:s s&e$ia) athority to $om&romise "-PA% the
indi'ida) $)aims of &ri'ate res&ondents for reinstatement and ba$?wa!es# there is no 'a)id
wai'er of the aforesaid ri!hts.
ARE THE DISSENTING MINORITY UNION MEMBERS BOUND BY THE MA(ORITY
DECISION APPROVING A COMPROMISE AGREEMENTA
7o. Money $)aims de to )aborers $annot be the ob*e$t of sett)ement or $om&romise effe$ted by
the Hnion or $onse)# F,9<8H9 9<D -PDC,F,C ,7D,G,DHA= C87-D79 8F DAC< =AB80D0
C87CD07DD. 9he benefi$iaries are the indi'ida) $om&)ainants themse)'es. 9he Hnion to
whi$h they be)on! $an on)y assist them bt $annot de$ide for them.
For a wai'er thereof to be )e!a))y effe$ti'e# the indi'ida) $onsent or ratifi$ation of the wor?ers or
em&)oyees in'o)'ed mst be show. 7either the offi$ers nor the ma*ority of the Hnion had any
athority to wai'e the a$$red ri!hts &ertainin! to the dissentin! minority members# e'en nder
a Co))e$ti'e Bar!ainin! A!reement whi$h &ro'ided for a Hnion sho&.
L. COLLECTIVE BARGAINING NEGOTATIONS
AND AGREEMENT !PLEASE SEE CHARTPDIAGRAM LCM)
1. COLLECTIVE BARGAINING DEFINED
Co))e$ti'e bar!ainin! whi$h is defined as Fnegotiations towards a collective
agreement6# is one of the demo$rati$ framewor?s nder the 7ew =abor Code# desi!ned
to stabi)i4e the re)ation between )abor and mana!ement# and to $reate a $)imate of
sond and stab)e indstria) &ea$e. I- &6 0 $4-40. +#68%"6&3&.&-5 %* -<# #$8.%5#+ 0",
-<# 4"&%", 0", &6 '<0+0'-#+&1#, 06 0 .#/0. %3.&/0-&%".
5abor ode" 6rticle )2). Meaning o, duty to bargain collectively. '' The
d,ty to bar.ain collectively means the performance of a mutual obligation to
meet and convene promptly and e-peditiously in good ,aith for the
p,rpose of ne.otiatin. an a.reement with respect to wa.es" ho,rs of wor4
and all other terms and conditions of employment incl,din. proposals for
ad?,stin. any .rievance or 7,estion arisin. ,nder s,ch a.reement and
e=ec,tin. a contract incorporatin. s,ch a.reements if re7,ested by either
party" b,t s,ch d,ty does not compel any party to a.ree to a proposal or to
ma4e any concession.A (<nderscorin. s,pplied.!
5 5abor ode. 6rt. )2M. ;uty to bargain collectively when there e-ists a
collective bargaining agreement. Q 3hen there is a collective bar.ainin.
a.reement" the d,ty to bar.ain collectively shall also mean that neither party
shall terminate or modify the a.reement at least si=ty (&*! days prior to its
e=piration date. It shall be the d,ty of both parties to 4eep the stat,s 7,o and to
contin,e in f,ll force and effect the terms and conditions of the e=istin.
a.reement d,rin. the &*-day period andFor ,ntil a new a.reement is reached by
the parties.A
2. GENERAL PRINCIPLES IN BARGAINING
2.1 S-0",0+, %* '%",4'- GOOD FAITH IN BARGAINING.
Ada:s notes@ 9his im&)ies earnest efforts e;erted by the &arties toward a reasonab)e
$om&romise or a!reement a$$e&tab)e to both &arties. C%"-+06- -<&6 9&-< -<#
*%..%9&"/ '%"'#8-6
0) L64+*0'# 30+/0&"&"/M, 9<&'< <06 3##" ,#*&"#, 06 @/%&"/ -<+%4/< -<#
$%-&%"6 %* "#/%-&0-&"/@ 9&-<%4- 0"5 .#/0. &"-#"- -% +#0'< 0" 0/+##$#"-.
7ote that the -&reme Cort has e'en noted that 5the reso)tion of srfa$e bar!ainin!
a))e!ations ne'er &resents an easy isse. 9he determination of whether a &arty has
en!a!ed in n)awf) srfa$e bar!ainin! is sa))y a diffi$)t one be$ase it in'o)'es# at
bottom# a 2estion of the intent of the &arty in 2estion# and sa))y s$h intent $an on)y
be inferred from the tota)ity of the $ha))en!ed &arty:s $ond$t both at and away from the
bar!ainin! tab)e. ,t in'o)'es the 2estion of whether an em&)oyer:s $ond$t
demonstrates an nwi))in!ness to bar!ain in !ood faith or is mere)y hard bar!ainin!.6
-tandard Chartered Ban? Dm&)oyees Hnion "7HBD% 's. -e$retary 7ie'es Confesor and
-tandard Chartered Ban?# >0 7o. 11+(3# 11 Ane 200+.
3) L&",&2&,40. 30+/0&"&"/M. L,t is an nfair )abor &ra$ti$e for an em&)oyer o&eratin!
nder a $o))e$ti'e bar!ainin! a!reement to ne!otiate or to attem&t to ne!otiate with his
em&)oyees indi'ida))y in $onne$tion with $han!es in the a!reement. And the basis of
the &rohibition re!ardin! indi'ida) bar!ainin! with the stri?ers is that a)tho!h the nion
is on stri?e# the em&)oyer is sti)) nder ob)i!ation to bar!ain with the nion as the
em&)oyeesN bar!ainin! re&resentati'e.6 ",ns)ar =ife Assran$e Co.# =td.# Dm&)oyees.
7A98 's. ,ns)ar =ife Ass. Co. =td.# 31 -C0A /0 citin. Me)o Photo -&&)y Cor&oration 's.
7ationa) =abor 0e)ations Board# 321 H.-. 332%.
2.2DUTY TO BARGAIN $o))e$ti'e)y does 789 $om&e) any &arty to a!ree to any &ro&osa) nor
to ma?e any $on$ession by 'irte thereof (6rticle )21" 5abor ode!" nor are the &arties ob)i!ed
to rea$h an a!reement. (<nion of Kilipro Employees vs. Nestle Philippines" #.$. Nos. %20'1*-1%" *1
/arch )**0!.

Dm&)oyer is not nder ob)i!ation to bar!ain n)ess the Hnion sha)) ha'e been
$ertified as the e;$)si'e bar!ainin! a!ent in a $ertifi$ation e)e$tion d)y $a))ed
for s$h &r&ose# and that the )atter sha)) ha'e forwarded to the em&)oyer its
bar!ainin! demands.
Fhen there is a $o))e$ti'e bar!ainin! a!reement# the dty to bar!ain $o))e$ti'e)y
sha)) a)so mean -<0- "#&-<#+ 80+-5 6<0.. -#+$&"0-# %+ $%,&*5 64'< 0/+##$#"-
,4+&"/ &-6 .&*#-&$#" EREPT d,rin. the freedom period of at least si;ty "10%
days &rior to the e;&iration day "5freedom &eriod6%.
7ote AUTOMATIC RENEWAL CLAUSE as re!ards e;&ired CBA. Hnder this $)ase# the
terms and $onditions of the e;istin! CBA sha)) $ontine to be in f)) for$e and effe$t
drin! the si;ty.day freedom &eriod (<nion of Kilipro Ees. vs. N5$" %') S$6 M%M!# or nti) a
new CBA is rea$hed. 9hs# des&ite the )a&se of the effe$ti'ity of the o)d CBA# the )aw
$onsiders the same as $ontinin! in f)) for$e and effe$t nti) a new CBA is ne!otiated
and entered into. (5opez S,.ar orporation vs. KK3" #.$. Nos. (2(**-*%" 1* 6,.. %''*!.
Mandatory &ro'isions whi$h mst be in$)ded in the ne!otiationsI otherwise# the
CBA wi)) not be re!istered@ "a% no stri?e.no )o$?ot $)aseI "b% !rie'an$e
ma$hinery. 7ote frther that minimm standards mst )i?ewise be $om&)ied withI
otherwise# the D8=D wi)) not a))ow its re!istration.
2.3 D&6'.%64+# %* &"*%+$0-&%" !#./., F&"0"'&0. S-0-#$#"-6). J ,n $o))e$ti'e bar!ainin!# and
&on re2est# the &arties sha)) ma?e a'ai)ab)e s$h &.to.date finan$ia) information on the
e$onomi$ sitation of the nderta?in!# whi$h is norma))y sbmitted to re)e'ant !o'ernment
a!en$ies# as is materia) and ne$essary for meanin!f) ne!otiations. Fhere the dis$)osre
of some of this information $o)d be &re*di$ia) to the nderta?in!# its $ommni$ation may
be made $ondition &on a $ommitment that it wo)d be re!arded as $onfidentia) to the
e;tent re2ired. 9he information to be made a'ai)ab)e may be a!reed &on between the
&arties to $o))e$ti'e bar!ainin!.
3. TWO KINDS OF BARGAINING
3.1SINGLE ENTERPRISE BARGAINING. J 8ne where any 'o)ntari)y re$o!ni4ed or $ertified
)abor nion may demand ne!otiations with its em&)oyer for terms and $onditions of wor?
$o'erin! em&)oyees in the bar!ainin! nit $on$erned.
3.2MULTIPLE EMPLOYER BARGAINING. J 8ne where a )e!itimate )abor nion"s% and
em&)oyers may a!ree in writin! to $ome to!ether for the &r&ose of $o))e$ti'e
bar!ainin!# &ro'ided@
"a% on)y )e!itimate )abor nions who are in$mbent e;$)si'e bar!ainin! a!ents
may &arti$i&ate and ne!otiate in m)ti.em&)oyer bar!ainin!I
"b% on)y em&)oyers with $onter&art )e!itimate )abor nions who are in$mbent
bar!ainin! a!ents may &arti$i&ate and ne!otiate in m)ti.em&)oyer
bar!ainin!I and
"$% on)y those )e!itimate )abor nions who &ertain to em&)oyer nits who
$onsent to m)ti.em&)oyer bar!ainin! may &arti$i&ate in m)ti.em&)oyer
bar!ainin!.
4. U"&%" S#'4+&-5 C.046#6. .. a&&)ied to and $om&rehends M$)osed sho&#M Mnion sho&#M
Mmaintenan$e of membershi&#M or any other form of a!reement whi$h im&oses &on
em&)oyees the ob)i!ation to a$2ire or retain nion membershi& as a $ondition affe$tin!
em&)oyment. (PIGP $eso,rces" Inc. (P$I! vs. 6nacleto 5. Taneca et. al." #.$. No. %&*0)0" *' 6,.,st
)*%*!.
+.1 G#"#+0. +4.# %" '%2#+0/# %* 4"&%" 6#'4+&-5 '.046#
A)) em&)oyees in the bar!ainin! nit $o'ered by a Hnion -ho& C)ase in their CBA with
mana!ement are sb*e$t to its terms.
EF'#8-&%" <owe'er# nder )aw and *ris&rden$e# the fo))owin! ?inds of em&)oyees are
e;em&ted from its $o'era!e# name)y@
a% em&)oyees who at the time the nion sho& a!reement ta?es effe$t are bona fide
members of a re)i!ios or!ani4ation whi$h &rohibits its members from *oinin! )abor
nions on re)i!ios !ronds "D)i4a)de 0o&e For?ers $ase%I
b% em&)oyees a)ready in the ser'i$e and a)ready members of a nion other than the
ma*ority at the time the nion sho& a!reement too? effe$t "Art. 2+8 BeC%I
$% $onfidentia) em&)oyees who are e;$)ded from the ran? and fi)e bar!ainin! nitI and
d% em&)oyees e;$)ded from the nion sho& by e;&ress terms of the a!reement. (-an4
of the Philippine Islands vs. -PI Employees <nion - Davao hapter - Kederation of <nions in
-PI <niban4" #.$. No. %&M1*%" %* 6,.,st )*%*@ En -anc.!.
+.2 K&",6 %* 4"&%" 6#'4+&-5 '.046#6
o C)osed -ho&. C A form of nion se$rity whereby on)y nion members $an be hired
and the wor?ers mst remain nion members as a $ondition of $ontined
em&)oyment. "+,at vs. o,rt of Ind,strial $elations" %)) Phil. ('M" cited in Philippine
5aw Dictionary by /oreno" )nd Edition.! ,t is one where no &erson may be em&)oyed
in any or $ertain a!reed de&artments of the enter&rise n)ess he or she is# be$omes#
and# for the dration of the a!reement# remains a member in !ood standin! of a
nion entire)y $om&rised of or of whi$h the em&)oyees in interest are a &art. (PIGP
$eso,rces" Inc. (P$I! vs. 6nacleto 5. Taneca et. al." #.$. No. %&*0)0" *' 6,.,st
)*%*!.
o Hnion -ho&. Q 9here is nion sho& where an em&)oyer may hire new em&)oyees#
bt on$e they be$ome re!)ar em&)oyees# they are re2ired to *oin the nion within a
$ertain &eriod as a $ondition for their $ontined em&)oyment. (PIGP $eso,rces"
Inc. (P$I! vs. 6nacleto 5. Taneca et. al." #.$. No. %&*0)0" *' 6,.,st )*%*!.
o Modified Hnion -ho& A!reement. .. A nion sho& a!reement with a &ro'ision
e;em&tin! $ertain em&)oyee !ro&s from its o&eration# s$h as o)d em&)oyees
a)ready with the $om&any at a desi!nated date# ?ey &ersonne)# &ersons with re)i!ios
s$r&)es in *oinin! )abor nions. (Ibid.!
o Maintenan$e of membershi& sho&. .. 9here is maintenan$e of membershi& sho&
when em&)oyees# who are nion members as of the effe$ti'e date of the a!reement#
or who thereafter be$ome members# mst maintain nion membershi& as a $ondition
for $ontined em&)oyment nti) they are &romoted or transferred ot of the
bar!ainin! nit# or the a!reement is terminated. (PIGP $eso,rces" Inc. (P$I! vs.
6nacleto 5. Taneca et. al." #.$. No. %&*0)0" *' 6,.,st )*%*@ see alsoI -an4 of
Philippine Islands vs. -PI Employees <nion 9 Davao hapter 9 Kederation of
<nions in -PI <niban4" #.$" No. %&M1*%" %* 6,.,st )*%*" En -anc.!
o 8&en sho& .. An arran!ement on re$ritment whereby an em&)oyer may hire any
em&)oyee# nion member or not# bt the new em&)oyee mst *oin the nion within a
s&e$ified time and remain a member in !ood standin!. (56-ST6T <pdates of the
Department of 5abor and Employment" Nol. % No. %)" 6,.,st %''(!.
o A!en$y sho& .. An arran!ement whereby non.members of the $ontra$tin! nion
mst &ay the nion a sm e2a) to nion des ?nown as a!en$y fees for the benefits
they re$ei'ed as a $onse2en$e of the bar!ainin! ne!otiations effe$ted thro!h the
efforts of the nion. (56-ST6T <pdates of the Department of 5abor and
Employment" Nol. % No. %)" 6,.,st %''(!.
/. ULP IN COLLECTIVE BARGAINING
0. B0+/0&"&"/ &" 30, *0&-<.
,ndi'ida) bar!ainin! J see &re'ios notes
-rfa$e bar!ainin! J see &re'ios notes.
b. R#*460. -% 30+/0&". .. 9he em&)oyer# by its refsa) to bar!ain# is !i)ty of 'io)atin!
the dty to bar!ain $o))e$ti'e)y in !ood faith. <en$e# the Hnion:s draft CBA &ro&osa)
may ni)atera))y be im&osed &on the em&)oyer as the $o))e$ti'e bar!ainin!
a!reement to !o'ern their re)ationshi&. (Divine 3orld vs. Secretary of 5abor" )%1 S$6
(2' B%'')C.!
$. G+%66 2&%.0-&%" %* CBA 8+%2&6&%"6. J see be)owI new $ase of Bayer Phi)s.
H. 2010-2012 CASES
1.1 NOT ASKED IN 2011-2012 BAR. IMPORTANT CASE E$8.%5##6 U"&%" %* B05#+
P<&.6. V6. B05#+ P<&.&88&"#6, GR N%. 1H2E73, 0H D#' 2010 . G+%66 2&%.0-&%" %*
CBA &6 NOT .&$&-#, -% #'%"%$&' 8+%2&6&%"6, *%+ ULP &" '%..#'-&2# 30+/0&"&"/ -% 3#
'%$$&--#,. .. Fhere the 'io)ation of the CBA is GROSS PER SE# as where the em&)oyer
ne!otiated with -P=,79D0 Hnion whi$h had a))e!ed)y disaffi)iated from the ori!ina) nion
"two $ontendin! sets of offi$ers%# then H=P is $ommitted by the em&)oyer as it is in
$ontra'ention of the dty to bar!ain $o))e$ti'e)y and in interferin! with the determination of
re&resentation isse between the two nions.
5It m,st be remembered that a -6 is entered into in order to foster stability
and m,t,al cooperation between labor and capital. 6N E/P5GDE$
S:G<5D NGT -E 655G3ED TG $ESIND <NI56TE$655D ITS -6 3IT:
T:E D<5D E$TIKIED -6$#6ININ# 6#ENT IT :6D P$ENIG<S5D
GNT$6TED 3IT:" 6ND DEIDE TG -6$#6IN 6NE3 3IT: 6
DIKKE$ENT #$G<P IK T:E$E IS NG 5E#ITI/6TE $E6SGN KG$ DGIN#
SG 6ND 3IT:G<T KI$ST KG55G3IN# T:E P$GPE$ P$GED<$E. If
s,ch behavior will be tolerated" bar.ainin. and ne.otiations between the
employer and the ,nion will never be tr,thf,l and meanin.f,l" and no -6
for.ed after ard,o,s ne.otiations will ever be honored or be relied ,pon.A
6.2CBA D4-5 %* 80+-&#6 -% $0&"-0&" 6-0-46 D4% 8#",&"/ +#"#/%-&0-&%". .. G#"#+0. M&..&"/
C%+8%+0-&%"-I",#8#",#"- L03%+ U"&%" NGMC-ILUO 26. G#"#+0. M&..&"/ C%+8%+0-&%"PG#"#+0.
M&..&"/ C%+8%+0-&%" 26.G#"#+0. M&..&"/ C%+8%+0-&%"-I",#8#",#"- L03%+ U"&%" NGMC-ILUO, #-
0.., G.R. N%6. 1B3122P1B3BBE, (4"# 1=, 2011.
6rticle )21 of the =abor Code mandates the parties to 4eep the stats 2o
and to contin,e in f,ll force and effect the terms and conditions of the e=istin.
a.reement d,rin. the &*-day period prior to the e=piration of the old -6
andFor ,ntil a new a.reement is reached by the parties. 0he law does not
provide ,or any e-ception nor 1uali,ication on which economic
provisions o, the e-isting agreement are to retain its ,orce and e,,ect.
*i5ewise, the law does not distinguish between a C(+ duly agreed
upon by the parties and an imposed C(+ li5e the one in the present
case. :ence" considerin. that no new -6 had been" in the meantime"
a.reed ,pon by respondent #/ and the <nion" the provisions of the
imposed -6 contin,es to have f,ll force and effect ,ntil a new -6 is
entered into by the parties.
H.3 IMPORTANT NOT ASKED IN 2010, 2011 OR 2012 BAR. EF'.46&2# 30+/0&"&"/
6-0-46 3#5%", *&2# 5#0+ 8#+&%, '0""%- 3# 643G#'- %* "#/%-&0-&%" "%+ '%4., 80+-&#6
0/+## -% #F-#", -<# 60$#.-- FVC L03%+ U"&%"-P<&.&88&"# T+0"68%+- 0", G#"#+0. W%+:#+6
O+/0"&10-&%" !FVCLU-PTGWO) V6. S0$0-60$0"/ N0/:0:0&60"/ M0"//0/090 60 FVC-S%.&,0+&-5
%* I",#8#",#- 0", G#"#+0. L03%+ O+/0"&10-&%" !SANAMA-FVC-SIGLO D, G.R. N%. 1IH27E,
N%2#$3#+ 2I, 200E .
3hile the parties may a.ree to e=tend the -6;s ori.inal five-year term to.ether
with all other -6 provisions" any such amendment or term in e-cess o, ,ive
years will not carry with it a change in the union2s e-clusive collective
bargaining status.
-y e=press provision of the above-7,oted 6rticle )21-6" the e-clusive
bargaining status cannot go beyond ,ive years and the representation
status is a legal matter not ,or the wor5place parties Cmanagement and
unionD to agree upon. In other words" despite an a.reement for a -6 with a
life of more than five years" either as an ori.inal provision or by amendment" the
bar.ainin. ,nion;s e=cl,sive bar.ainin. stat,s is effective only for five years and
can be challen.ed within si=ty (&*! days prior to the e=piration of the -6;s first
five years.
In the present case" the -6 was ori.inally si.ned for a period of five years"
RRR with a provision for the rene.otiation of the -6;s other provisions at the
end of the 1rd year of the five-year -6 term. Th,s" prior to e=piration on
+an,ary 1*" )**% the wor4place parties sat down for rene.otiation b,t instead
of confinin. themselves to the economic and non-economic -6 provisions"
also e=tended the life of the -6 for another fo,r months" i.e." from the ori.inal
e=piry date on +an,ary 1*" )**1 to /ay 1*" )**1.
0he negotiated e-tension o, the C(+ term has no legal e,,ect on the
BAC*?'80G>&2s e-clusive bargaining representation status which
remained e,,ective only ,or ,ive years ending on the original e-piry date o,
Ganuary %#, $##%. Th,s" si=ty days prior to this date" or startin. December )"
)**)" S6N6/6-SI#5G co,ld properly file a petition for certification election. Its
petition" filed on +an,ary )%" )**1 or nine ('! days before the e=piration of the
-6 and of KN5<-PT#3G;s e=cl,sive bar.ainin. stat,s" was seasonably
filed.
6.42012 CASE D# .0 S0..# U"&2#+6&-5 26. D# .0 S0..# U"&2#+6&-5 E$8.%5##6 A66%'&0-&%",
G.R. No. 17:$H. $% +ugust $#1$. 6 I"-+0-4"&%" ,&684-#6, .09 %* -<# '06#.
?UESTION ,n $ases where there are two $ontendin! fa$tions of offi$ers in an inter.nion
dis&te "of the ma*ority nion%# may the em&)oyer ni)atera))y refse to remit nion des to
on the &rete;t that there is an on.!oin! intra.nion dis&te between the two fa$tionsL ,s
the non.remittan$e of nion des $onstitti'e of H=P as an interferen$e in interna) affairs
of the HnionL
ANSWER B9Che Hni'ersity BisC !i)ty of refsa) to bar!ain amontin! to an nfair )abor
&ra$ti$e nder Arti$)e 2+8"!% of the =abor Code. 9he Hni'ersity is bond to $om&)y with its
ob)i!ations nder the CBA# in$)din! the remittan$e of nion des. ,n ni)atera))y refsin!
to do so# it has $ommitted H=P# as s$h an a$t $onstitted an intentiona) a'oidan$e of a
dty im&osed by )aw. 9he isse of nion )eadershi& is distin$t and se&arate from the dty
to bar!ain. ,n fa$t# B=0 Dire$tor Ca$da$ $)arified that there was no 'oid in Bres&ondent:sC
)eadershi&. For this reason# we are $onstrained to a&&)y the )aw of the $ase do$trine in
)i!ht of the fina)ity of or A)y 20# 200/ and -e&tember 21# 200/ reso)tions in >.0. 7o.
118+33. ,n other words# or &re'ios affirman$e of the Cort of A&&ea)s: findin! J that
&etitioner erred in ss&endin! $o))e$ti'e bar!ainin! ne!otiations with the nion and in
&)a$in! the nion fnds in es$row $onsiderin! that the intra.nion dis&te between the
A)ia4as and Ba\e4 fa$tions was not a *stifi$ation therefor Q is bindin! herein.
M. STRIKES, PICKETING AND LOCK-OUTS
"P=DA-D -DD D,A>0AM 5D2 A7D 5D.36%
1. W<% $05 ,#'.0+# 0 6-+&:# %+ .%':-%4-A !B=,R13, S2, IRR)
G#"#+0. R4.#@ Any $ertified or d)y re$o!ni4ed bar!ainin! re&resentati'e may de$)are a stri?e in
$ases of bar!ainin! dead)o$?s or H=P.
EF'#8-&%"@ ,n the absen$e of a $ertfied or d)y re$o!ni4ed bar!ainin! re&resentati'e# any
)e!itimate )abor or!ani4ation may de$)are a stri?e# BH9 87=E 87 9<D >08H7D 8F H=P.
2. R#D4&6&-#6 %* 0 20.&, 6-+&:# !0) M46- <02# 0 .09*4. 84+8%6#> !3) '%",4'-#,
-<+%4/< .09*4. $#0"6> 0", !') $46- 3# &" '%$8.&0"'# 9&-< -<# 8+%'#,4+0.
+#D4&+#$#"-6 4",#+ -<# L03%+ C%,#
2.1 L09*4. 84+8%6#
9he =abor Code a))ows on)y two "2% ?inds of stri?eK)o$?ot@
(a) E'%"%$&' 6-+&:# . is intended to for$e wa!e and other $on$essions from the
em&)oyer whi$h is not re2ired by )aw to !rant. Hsa))y# the $onse2en$e of a
dead)o$? in $o))e$ti'e bar!ainin! ne!otiationsI and
(b) ULP 6-+&:# - is $a))ed a!ainst the nfair )abor &ra$ti$es of the em&)oyer# sa))y for
the &r&ose of ma?in! him desist from frther $ommittin! s$h &ra$ti$es.
N%-# 1 - EF0$8.#6 %* ULP 4",#+ A+-&'.#6 27B-27E, LC@ "1% interferen$e#
restraint or $oer$ion of the em&)oyees in their e;er$ise of ri!ht to se)f.
or!ani4ationI "2% ye))ow.do! $ontra$ts# e.!.# sti&)ation re2irin! em&)oyee not to
*oin nions# or for em&)oyee to withdraw from nion as $ondition for $ontined
em&)oymentI "3% refsa) to $o))e$ti'e)y bar!ainI "+% e$onomi$ ind$ement andKor
dis$rimination in re!ard to wa!es# hors of wor?# in order to
en$ora!eKdis$ora!e nion membershi&I "/% $ontra$tin! ot of
ser'i$esKfn$tions bein! &erformed by nion members# where s$h wi)) interfere
in the e;er$ise of ri!ht to se)f.or!.# amon! others.
N%-# 2 - A)) other forms of stri?es# 'i4.@ )i!htnin! stri?e# sit.down stri?eI
sym&atheti$ stri?e# s)owdown stri?eI wi)d$at stri?eI intermittent stri?e# are a))
&rohibited for )a$? of 'a)id &r&ose or fai)re to $om&)y with &ro$edra)
re2irements "dis$ssion be)ow%.
N%-# 3 - An e$onomi$ stri?e may be $on'erted into a H=P stri?e# when the
em&)oyer n*stifiab)y dismisses the offi$ers of the nion drin! a stri?e de to
dead)o$? in $o))e$ti'e bar!ainin! ne!otiations.
N%-# 7 - W<0- 0+# "%"-6-+&:#03.# &664#6A A+-&'.# 2H3 !3)> D#8-. O+,#+ N%. E,
R4.# 12, S#'. 2
"a% Gio)ations of CBA whi$h are not !ross in $hara$ter sha)) be reso)'ed 'ia the
>rie'an$e Ma$hineryI
"b% ,nter.nion or intra.nion dis&tesI
"$% =abor standards $ases s$h as wa!e orders ">ide)ines !o'ernin! =abor
0e)ations B1( 8$t. 1(83C issed by -e$. Dri)onI -ee@ A&&endi; 5E6 of Fo4:s
=abor CodeI -ee a)so@ Arti$)e 211# =C%
"d% 9hose isses whi$h had a)ready been bro!ht to 'o)ntary or $om&)sory
arbitration
N%-# = - I6 0 2&%.0-&%" %* -<# CBA 0 '06# *%+ ULPA I- ,#8#",6. Che$? Arti$)e
211# =CI -ee a)so@ De&t. 8rder 7o. (# 0)e 22# -e$. 1.
F0he voluntary arbitrator or panel --- shall have original
and e-clusive 3urisdiction to hear and decide all unresolved
grievances arising ,rom the interpretation or implementation o,
the C(+, and those arising ,rom the interpretation o, company
personnel policies ---.
+ccordingly, AI&*+0I&N< &B 0H) C(+, )@C)80 0H&<)
>HICH +R) GR&<< IN CH+R+C0)R, <H+** N& *&NG)R ()
0R)+0); +< ?*8 +N; <H+** () R)<&*A); +< GRI)A+NC)<
?N;)R 0H) C(+. Bor purposes o, this +rticle, gross violations o,
the C(+ shall mean ,lagrant andIor malicious re,usal to comply with
the economic provisions o,
the C(+.E
C06#6 %" .09*4. 84+8%6#
0. NOT ASKED IN 2012 BAR. IMPORTANT CASE ILLEGAL STRIKE WHERE
CONDUCTED BY A UNION WHICH IS NOT A LEGITIMATE LABOR
ORGANIZATION. A30+&0 26. NLRC, GR 1=7113. 0I D#'#$3#+ 2011. -- 0e$ords of
the D8=D 7CMB and 0e!ion 3 re'ea) that 7AMA.MCC<.7F= had not re!istered as
a )abor or!ani4ation# ha'in! sbmitted on)y its $harter $ertifi$ate as an affi)iate or
)o$a) $ha&ter of 7F=. N%- 3#&"/ 0 .#/&-&$0-# .03%+ %+/0"&10-&%", &- &6 "%- #"-&-.#,
-% -<%6# +&/<-6 /+0"-#, -% 0 .#/&-&$0-# .03%+ %+/0"&10-&%", #./., -% 0'- 06
+#8+#6#"-0-&2# %* &-6 $#$3#+6 &" '%..#-&# 30+/0&"&"/, 0", 3# '#+-&*&#, 06 -<#
#F'.46&2# +#8+#6#"-0-&2# %* 0.. -<# #$8.%5##6 &" -<# 088+%8+&0-# 30+/0&"&"/
4"&- *%+ 84+8%6#6 %* '%..#'-&2# 30+/0&"&"/. D'en assmin! that it disaffi)iated with
7F=# it has not done so as there was no effort on its &art to $om&)y with the )e!a)
re2isites for 'a)id disaffi)iation drin! freedom &eriod thro!h a ma*ority 'ote in a
se$ret ba))otin! in a$$ordan$e wth Art. 2+1 "d%. 7a'a and her !ro& sim&)y
demanded that the hos&ita) dire$t)y ne!otiate with the )o$a) nion whi$h has not e'en
re!istered as one. P;; C%"6#D4#"-.5, -<# $0",0-%+5 "%-&'# %* 6-+&:# 0",
'%",4'- %* 6-+&:# 2%-# 9#+# &"#**#'-&2# *%+ <02&"/ 3##" *&.#, 35 0" #"-&-5
9&-<%4- .#/0. 8#+6%"0.&-5.
=ast)y# the stri?e is i))e!a) de to the $ommission of 'io)en$e# $oer$ion# intimidation
and harassment a!ainst non.&arti$i&atin! em&)oyees# and b)o$?a!e of free in!ress
to and e!ress ot of the hos&ita) &remises. Hnion offi$ers ha'in! ?nowin!)y
&arti$i&ated in an i))e!a) stri?e )ose their em&)oyment stats. H%9#2#+, 4"&%"
$#$3#+6 9<%, ,#68&-# <02&"/ 80+-&'&80-#, &" 0" &..#/0. 6-+&:# 34- ,&, "%-
0'-40..5 80+-&'&80-# &" -<# '%$$&66&%" %* &..#/0. 0'-6 !2&%.#"'# -<+#0- #-'),
'%4., "%- 3# ,&6$&66#, *%+ .0': %* #2&,#"'# 6<%9&"/ 0'-40. '%$$&66&%" %*
&..#/0. 0'-6. Fhi)e they may be reinstated# they wi)) not be !i'en ba$?wa!es for the
days when they did not render wor? on a$$ont of the stri?e# fo))owin! the &rin$i&)e of
a 5fair day:s wa!e for a fair day:s )abor6.
3. MANILA DIAMOND HOTEL 's. MANILA DIAMOND HOTEL EMPLOYEES
UNION, G.R. N%. 1=B0I=, 30 (4"# 200H, -- ,))e!a) stri?e "no )awf) &r&ose% where
the stri?e was $a))ed by nion whi$h was not the e;$)si'e bar!ainin!
re&resentati'eI reiteration of diff. )iabi)ities between nion offi$ers and nion
membersI Hn$onditiona) offer to retrn to wor? is not a 'a)id basis for award
of ba$?wa!es drin! stri?e# es&e$ia))y where the stri?e was i))e!a) in the first
&)a$e.
1. S-+&:# <0, "% 20.&, 84+8%6#. J 7ote that the Hnion was not $ertified as the
e;$)si'e bar!ainin! re&resentati'e of the ma*ority of the em&)oyees of the ran?.
and.fi)e# and hen$e# it $o)d not demand from the <ote) the ri!ht to $o))e$ti'e)y
bar!ain in their beha)f. -e$ond)y# Hnion $annot bar!ain on)y in beha)f of its
em&)oyees# insofar as it !oes a!ainst the ob*e$ti'e of ha'in! a 5sin!)e em&)oyer.
wide nit whi$h is more to the broader and !reater benefit of the em&)oyees:
wor?in! for$e.6 9he &hi)oso&hy is to a'oid fra!mentation of the bar!ainin! nit so
as to stren!then the em&)oyees: bar!ainin! &ower with the mana!ement. 9o 'eer
away from s$h !oa) wo)d be $ontrary# inimi$a) and re&!nant to the ob*e$ti'es
of a stron! and dynami$ nionism. 9hird)y# Hnion 'io)ated Art. 21+ whi$h
&ros$ribes the statin! of a stri?e on !rond of H=P DH0,7> 9<D PD7DD7CE
8F CA-D- ,7G8=G,7> 9<D -AMD >08H7D- F80 -90,OD. =ast)y# means
em&)oyed in the $ond$t of stri?e 'i4.# obstr$tion of free en!ress and in!ress#
ho)din! noise barra!e and threatenin! hote) !ess# renders the stri?e i))e!a).
2. D&6-&"'-&%"6 06 -% .&03&.&-5 %* 4"&%" %**&'#+ 26. 4"&%" $#$3#+. . BaCny nion
offi$er who ?nowin!)y &arti$i&ates in an i))e!a) stri?e and any wor?er or nion
offi$er who ?nowin!)y &arti$i&ates in the $ommission of i))e!a) a$ts drin! stri?e
may be de$)ared to ha'e )ost his em&)oyment stats . . .M 8n the other hand# an
ordinary stri?in! wor?er $annot be dismissed for mere &arti$i&ation in an i))e!a)
stri?e. 9here mst be &roof that he $ommitted i))e!a) a$ts drin! a stri?e# n)i?e a
nion offi$er who may be dismissed by mere ?nowin!)y &arti$i&atin! in an i))e!a)
stri?e andKor $ommittin! an i))e!a) a$t drin! a stri?e.
3. G#"#+0. +4.# 06 -% #"-&-.#$#"- %* 30':90/#6, For the !enera) r)e is that
ba$?wa!es sha)) not be awarded in an e$onomi$ stri?e on the &rin$i&)e that Ma
fair day:s wa!eM a$$res on)y for a Mfair day:s )abor.M 9his Cort mst ths
hear?en to its &o)i$y that Mwhen em&)oyees 'o)ntari)y !o on stri?e# e'en if in
&rotest a!ainst nfair )abor &ra$ti$es#M no ba$?wa!es drin! the stri?e is
awarded.
2.2 L09*4. $#0"6
2.2.1 Arti$)e 21+ "b% and "e%# =abor CodeI as amended De&t. 8rder 7o. (# 0)e 22# -e$.
12# &ars. 1 and 2
5"b% 7o &erson sha)) obstr$t# im&ede or interfere with by for$e# 'io)en$e# $oer$ion#
threats or intimidation any &ea$ef) &i$?etin! by em&)oyees drin! any )abor
$ontro'ersy# or in the eer$ise of the ri!ht of se)f.or!n.# or $o))e$ti'e bar!ainin!# or
sha)) aid or abet s$h destr$tion or interferen$e. 7o em&)oyer sha)) se or em&)oy
any &erson to $ommit s$h a$ts# nor sha)) any &erson be em&)oyed for s$h &r&ose
"&rohibition a!ainst stri?e.brea?ers was added nder De&t. 8rder 7o. (%.
"e% 7o &erson en!a!ed in &i$?etin! sha)) $ommit any a$t of 'io)en$e# $oer$ion or
intimidation# or obstr$t the free in!ress to and e!ress from the em&)oyer:s &remises
for )awf) &r&oses# or to obstr$t &b)i$ thoro!hfares.6
2.2.2 >ide)ines on 0emo'a) of ,))e!a) B)o$?ades at Fa$tory >ates# D8=D Memo dated 22
8$tober 1(83
511. Pi$?etin! as &art of the freedome of e;&ression drin! stri?es sha)) be
res&e$ted# &ro'ided that it is &ea$ef). -hanties and str$tres set.& to effe$ti'e)y b)o$?
)awf) in!ress to# and e!ress from# $om&any &remises for )e!a) &r&oses and the free
&assa!e to &b)i$ thoro!hfares may be smmari)y demo)ished in a$$ordan$e with )aw.
2.2.3 >ide)ines for Cond$t of P7PKAFP Personne) drin! -tri?es# =o$?.ots and
other =abor dis&tes# D8=D Memo dated 22 8$tober 1(83
51. 8bstr$tions on &)a$es and thoro!hfares de'oted to &b)i$ se# s$h as the
streets# sidewa)?s# a))eys and the )i?e are 7H,-A7CD- PD0 -D. As s$h# they may be
remo'ed smmari)y by the )o$a) !o'ernment athorities# thro!h their res&e$ti'e )aw
enfor$ement athorities# and they may a$t inde&endent)y of the D8=D e'en if said
obstr$tions are &)a$ed as a res)t of or in $onne$tion with a &endin! )abor stri?e.
2. <owe'er# obstr$tions on &oints of in!ressKe!ress within &ri'ate &ro&erties
drin! a )abor dis&te# a)tho!h )i?ewise &rohibited by )aw# $annot be smmari)y
demo)ished by )aw enfor$ement athorites. ,nstead# these obstr$tions or barri$ades
may be remo'ed on)y in a$$ordan$e with the &ro&er orders issed by the D8=D 8ffi$e
of the -e$retary# or the 7=0C# with &ro&er $oordination between the said )abor offi$ia)s
and the &o)i$e athorites to ensre that no nde harm is inf)i$ted &on any &erson or
&ro&erty.6
2.2.7 W<0- 0+# -<# '%"6#D4#"'#6 &* 0"5 %* -<# 8+%<&3&-#, 0'-&2&-&#6 06 $#"-&%"#,
03%2# 0+# '%$$&--#, ,4+&"/ -<# '%",4'- %* -<# 6-+&:#A 9he otherwise 'a)id
stri?e may be $on'erted into an i))e!a) one
A66%'&0-&%" %* I",#8#",#"- U"&%"6 &" -<# P<&.&88&"#6 !AIUP) 26. NLRC,
M0+'< 2=, 1EEE. -- 9o be 'a)id# a stri?e mst be &rsed within )e!a) bonds.
9he ri!ht to stri?e as a means for the attainment of so$ia) *sti$e is ne'er meant
to o&&ress or destroy the em&)oyer. 9he )aw &ro'ides )imits for its e;er$ise.
Amon! s$h )imits are the &rohibited a$ti'ities nder Arti$)e 21+ of the =abor
Code# &arti$)ar)y &ara!ra&h "e%# whi$h states that no &erson en!a!ed in
&i$?etin! sha))@
a. $ommit any a$t of 'io)en$e# $oer$ion# or intimidation or
b. obstr$t the free in!ress to or e!ress from the em&)oyer:s &remises for )awf)
&r&oses or
$. obstr$t &b)i$ thoro!hfares.
E2#" &* -<# 6-+&:# &6 20.&, 3#'046# &-6 %3G#'-&2# %+ 84+8%6# &6 .09*4., -<#
6-+&:# $05 6-&.. 3# ,#'.0+#, &"20.&, 9<#+# -<# $#0"6 #$8.%5#, 0+# &..#/0..
2.2.5 W<0- 0+# -<# .&03&.&-&#6 %* -<# 9%+:#+6 9<% 80+-&'&80-#, &" -<# '%$$&66&%"
%* -<# 8+%<&3&-#, 0'-&2&-&#6 06 $#"-&%"#, 03%2# 0+# '%$$&--#, ,4+&"/ -<#
'%",4'- %* -<# 6-+&:#A =oss of em&)oyment stats
Hnion offi$ers J may )ose em&)oyment stats if@
"a% he ?nowin!)y &arti$i&ates in an i))e!a) stri?e# 'i4.@ non.$om&)ian$e with
&r&ose and &ro$essI 80
"b% he ?nowin!)y &arti$i&ates in the $ommission of i))e!a) a$ti'ities#
whether the stri?e is )e!a) or i))e!a)
Hnion members J may )ose em&)oyment stats on)y if he ?nowin!)y
&arti$i&ates in i))e!a) a$ti'ities.
N%-#1 ,f the e;isten$e of for$e is &er'asi'e and wides&read# $onsistent)y and
de)iberate)y resorted to as a matter of nion &o)i$y# res&onsibi)ity is $o))e$ti'e
"meanin! that a)) the nion offi$ers wi)) be he)d )iab)e e'en if did not &ersona))y
$ommit the same%. 8therwise# res&onsibi)ity is on)y indi'ida). "A)mira 's. BF
>oodri$h# /8 -C0A 12(0%
N%-#2 ,n order to ho)d the )abor or!ani4ation )iab)e for the n)awf) a$ts of the
indi'ida) offi$ers# a!ents or members# there mst be &roof of a$ta)
athori4ation or ratifi$ation of s$h a$ts after a$ta) ?now)ed!e thereof. 9hs#
where a nion# thro!h its offi$ers# not on)y had ?now)ed!e of the a$ts of
'io)en$e $ommitted by some of its stri?ers# bt either &arti$i&ated or ratified the
same# the stri?e was he)d to be i))e!a) and the dismissa) of A== a$ti'e
&arti$i&ants therein was *stified. "Phi). Marine 8ffi$ers >i)d 's. Com&ania
Maritima# 22 -C0A 1113%.
N%-# 3 AIUP 26. NLRC, 648+0> 6## 0.6% G+#0- P0'&*&' E$8.%5##6 U"&%" 26.
G+#0- P0'&*&' L&*# A664+0"'#, F#3+40+5 11, 1EEE.
,t fo))ows therefore that the dismissa) of offi$ers of the stri?in! nion was *stified and
'a)id. 9heir dismissa) as a $onse2en$e of the i))e!a)ity of the stri?e sta!ed by them find
s&&ort in Arti$)e 21+"a% of the =abor Code# &ertinent &ortion of whi$h &ro'ides@6 ]Any
nion offi$er who ?nowin!)y &arti$i&ates in an i))e!a) stri?e and any] nion offi$er who
?nowin!)y &arti$i&ates in the $ommission of i))e!a) a$ts drin! a stri?e may be de$)ared
to ha'e )ost his em&)oyment stats]6
Hnion offi$ers are dty bond to !ide their members to res&e$t the )aw. I, instead o,
doing so, the o,,icers urge the members to violate the law and de,y the duly
constituted authorities, their dismissal ,rom the service is a 3ust penalty or
sanction ,or their unlaw,ul acts. 0he o,,icers2 responsibility is greater than that o,
the members.
2.3 C%$8.&0"'# 9&-< 8+%'#,4+0. +#D4&+#$#"-6 %* -<# L03%+ C%,#
A&art and se&arate from the )awf) &r&oses and )awf) means in the $ond$t of a 'a)id
stri?e# the third re2isite is $om&)ian$e with the &ro$edra) re2irements of )aw. 9hs@
2.3.1 N%-&'# %* 6-+&:# %+ .%':%4- - mst be fi)ed &rior to the intended date of stri?e#
ta?in! into $onsideration the $oo)in! off &eriod
C%%.&"/ %** 8#+&%, !A+-. 2H3, LC> B= RB S3, IRR)
,f bar!ainin! dead)o$?s J 30 days
,f H=P J 1/ days
,f H=P on the !rond of nion bstin!@ Hnion may ta?e a$tion
immediate)y# bt note that a stri?e 'ote mst ha'e been $ond$ted and
res)ts sbmitted to D8=D "Art. 213 BbCI De&t 8rder 7o. (# 0)e 22#
-e$s. 3 and 3%
2.3.2 C%"'&.&0-&%" 8+%'##,&"/6 C 7CMB to immediate)y $a)) &arties in'o)'ed to a
$onferen$e within &eriod of +8 hors from re$ei&t of noti$e# sin! the fastest
means &ossib)e "te)e&hone# te)e!ra&h or messen!er%
N%-#1 Parties ob)i!ed to meet &rom&t)y and e;&editios)y in !ood faith# as &art
of their dty to bar!ain $o))e$ti'e)y whi$h $o'ers &ro$eedin!s before the 7CMB. ,f
em&)oyer refses to attend $onferen$e# may be $har!ed with H=P. "De&t. 8rder 7o. (#
022# -1 B2C%.
N%-#2 Drin! the $on$i)iation and mediation &ro$eedin!s before the 7CMB#
&arties are s&&osed to refrain from doin! any a$t whi$h wi)) e;a$erbate the
&ro$eedin!s J re@ maintenan$e of stats 2o.
2.3.3 S-+&:# 2%-# J a&&ro'ed by a ma*ority of the 989A= H7,87 MDMBD0-<,P in
the bar!ainin! nit "hen$e@ on)y members of the ma*ority nion may 'ote%# 'ia
se$ret ba))ot# in a meetin! or referenda s&e$ia))y $a))ed for the &r&ose
L%':-%4- 2%-# . a&&ro'ed by a ma*ority of the Board of Dire$tors of the
em&)oyer $om&any# by se$ret ba))ot in a meetin! $a))ed for s$h &r&ose.
2.3.+ S#2#" D05 S-+&:# 30" !D#8-. O+,#+ N%. E. R22, SIN#O) - after the stri?e 'ote is
ta?en# it is re2ired that the nion mst fi)e the res)t of the stri?e 'ote with the
7CMB at )east 3 days &rior to the intended date of stri?e.
N%-#1@ Both $oo)in! off &eriod and 3.day stri?e ban mst be $om&)ied
with and is mandatory. 8therwise# i))e!a) stri?e. "7ationa) Federation of -!ar
For?ers 's. 8'e*era# 11+ -C0A 3/+%
3. A664$8-&%" %* (4+&6,&'-&%" 35 -<# S#'+#-0+5 %* L03%+ %+
C#+-&*&'0-&%" %* -<# L03%+ D&684-# -% -<# N0-&%"0. L03%+ R#.0-&%"6
C%$$&66&%" *%+ C%$84.6%+5 A+3&-+0-&%". "Arti$)e 21+B!C# =abor CodeI
P)ease see C<A09KD,A>0AM 5D6%
3.1 9he -e$retary of =abor is not &re$)ded from assmin! *risdi$tion o'er a )abor
dis&te in a 'ita) indstry e'en if there is no noti$e of stri?e or a forma) $om&)aint. <e
need not wait for a noti$e of stri?e or a forma) $om&)aint abot a stri?e a)ready in
&ro!ress before he $o)d e;er$ise the &owers !i'en to him by )aw to a'oid the
stri?es# &i$?etin! or )o$?ots $ontem&)ated in the !rant of &ower. "-a)o! 9ransit 's.
=a4aro# 128 -C0A /(1.%
3.2 -e$retary of =abor has dis$retion to assme *risdi$tion or to $ertify to the 7=0C on
the !rond that the )abor dis&te is one Mad'erse)y affe$tin! the nationa) interestM#
and said e;er$ise of dis$retion $annot be 2estioned. "FDA9, Hni'ersity 's. Batista#
18 -C0A 11(1%
3.3 N0-4+# 0", E**#'- %* A664$8-&%" 0", C#+-&*&'0-&%"
a% Assm&tion and $ertifi$ation orders are e;e$tory in $hara$ter and are stri$t)y to
be $om&)ied with by the &arties #2#" ,4+&"/ -<# 8#",#"'5 %* 0"5 8#-&-&%"
D4#6-&%"&"/ -<#&+ 20.&,&-5.
b) ,t 04-%$0-&'0..5 res)ts in a retrn.to.wor? of a)) stri?in! wor?ers "if one has
a)ready ta?en &)a$e%# or en*oins the ta?in! &)a$e of a stri?e "Hnion of Fi)i&ro
Dm&)oyees 's. 7est)e Phi)i&&ines# ,n$.# 1(2 -C0A 3(1.%
$% Fhi)e termination by reason of an i))e!a) stri?e re2ires hearin!# re&)a$ement by
reason of 'io)ation of a retrn.to.wor? order does not. "Free 9e)e&hone For?ers
Hnion 's. P=D9# 113 -C0A 113# 138.%
3.4 E**#'- %* D#*&0"'# %* A664$8-&%" %+ C#+-&*&'0-&%" O+,#+6.
MA -tri?e that is nderta?en des&ite the issan$e by the -e$retary of =abor of an
assm&tion or $ertifi$ation order be$omes a &rohibited a$ti'ity and ths i))e!a)#
&rsant to the se$ond &ara!ra&h of Art. 21+ of the =abor Code as amended
"Samboan!a Food Prod$ts# ,n$. 's. 7=0C# >.0. 82088# 8$tober 13# 1(8(I 138
-C0A +82%. T<# U"&%", %**&'#+6 0", $#$3#+6, 06 0 +#64.-, 0+# ,##$#, -%
<02# .%6- -<#&+ #$8.%5$#"- 6-0-46 *%+ <02&"/ :"%9&"/.5 80+-&'&80-#, &"
0" &..#/0. 0'-.@ "Hnion of Fi)i&ino Dm&)oyees 's. 7est)e Phi)i&&ines# ,n$. B1(2 -C0A
3(1C%
+. @N% S-+&:# N% L%':%4-@ C.046# &" -<# CBA.
57o -tri?e.7o =o$?ot6 $)ase in the CBA a&&)ies on)y to e$onomi$ stri?esI it does not
a&&)y to H=P stri?es. <en$e# if the stri?e is fonded on an nfair )abor &ra$ti$e of the
em&)oyer# a stri?e de$)ared by the nion $annot be $onsidered a 'io)ation of the no.stri?e
$)ase. !Master ,ron =abor Hnion 's. 7=0C# 21( -C0A +3.%
=. 2010-2012 CASES
5.1 IMPORTANT CASE> CONTRA TO EXISTING DECISIONS ON DEFIANCE OF RETURN
TO WORK ORDER. S%.&,30": 26. G0$&#+ #- 0., GR 1=E7H0, 1= N%2 2010> S%.&,30":
26. S%.&,30": U"&%" #- 0.., GR 1=E7H1, 1= N%2 2010. C A stri?e that is nderta?en
des&ite the issan$e by the -e$retary of =abor of an assm&tion order andKor $ertifi$ation
is a &rohibited a$ti'ity and ths i))e!a). P;; 9here is no dis&te that when res&ondent
Hnion offi$ers and members $ond$ted their mass a$tion# the &ro$eedin!s before the
-e$retary of =abor were sti)) &endin! as both &arties fi)ed Motions for re$onsideration of
the -8=D 8rder. C)ear)y# res&ondents ?nowin!)y 'io)ated the aforesaid &ro'ision by
ho)din! a stri?e in the !ise of a mass demonstration sim)taneos with $on$erted wor?
abandonmentKboy$ott.
ADA;S NOTES
G#"#+0. +4.# Both nion offi$ers and members who defy the -e$retary:s assm&tion and
retrn to wor? order may smmari)y be dismissed# be$ase this is a &atent defian$e of
the )awf) orders of !o'ernment. "Hnion of Fi)i&ino Dm&)oyees 's. 7est)e Phi)i&&ines# ,n$.
B1(2 -C0A 3(1CI A))ied Ban?in! Cor&oration 's. 7=0C# 2/8 -C0A 32+I and 9e)efn?en
-emi$ond$tors Dm&)oyees Hnion.FFF 's. Cort of A&&ea)s#1M0 S$6 2&2 B)***C!.
H%9#2#+, &" -<&6 80+-&'4.0+ S%.&,30": '06#, -<# S48+#$# C%4+- -<%4/<
(46-&'# V&..0+0$0 $0,# 0 ,&6-&"'-&%", 80+08<+06#, 64''&"'-.5 06 *%..%96
57otwithstandin! i))e!a)ity of the stri?e# we $annot san$tion &etitioners: a$t of
indis$riminate)y terminatin! the ser'i$es of indi'ida) res&ondents who admitted *oinin!
the mass a$tions and who ha'e refsed to $om&)y with the offer of the mana!ement to
re&ort ba$? to wor?. 9he )iabi)ities of indi'ida) res&ondents mst be determined nder
Arti$)e 21+ "a% =abor Code# ths@ "a% Hnion offi$ers who &arti$i&ated in the i))e!a) stri?e
may be $onsidered to ha'e )ost their em&)oyment statsI BUT !3) a wor5er who merely
participated in the illegal stri5e may N&0 be terminated ,rom employment i, he did
N&0 commit any illegal act during the stri5e. P;; 9here is no e'iden$e that the
ordinary nion member had a$ta))y $ommitted i))e!a) a$ts drin! the stri?e.6
DEAN TONY AND ADA ABAD 8%6&-&%"@ Arti$)e 21+ was misa&&)ied# as said &ro'ision
a&&)ies on)y to i))e!a) stri?es# and 789 to instan$es where there is a DDF,A7CD of a
0etrn.to.wor? 8rder as in the instant $ase. 9his is sim&)y $ontradi$tory to a)) &re'ios
r)in!s# whi$h we be)ie'e are better and more a&&ro&riate.
5.2 (4+&6,&'-&%"> S#'+#-0+5 %* L03%+. .. C&+-#: E$8.%5##6 L03%+ U"&%"-F#,#+0-&%" %* F+##
W%+:#+6 26. E.#'-+%"&'6, I"'., G.R. N%. 1E0=1=, N%2#$3#+ 1=, 2010.
?4#6-&%" M05 -<# S#'+#-0+5 %* L03%+ /&2# 0" 090+, <&/<#+ -<0" 9<0- 906 0/+##,
48%" 35 -<# $0"0/#$#"- 0", .03%+ 4"&%", 9<#" <# 0664$#6 G4+&6,&'-&%" %2#+ -<#
.03%+ ,&684-#A
A"69#+ YES. ,n the e;er$ise of his &ower to assme *risdi$tion o'er a )abor dis&te
nder Art. 213 "!% B11C of the =abor Code, it is we)).sett)ed that the -e$retary of =abor may
reso)'e ALL ISSUES in'o)'ed in the $ontro'ersy in$)din! the award of wa!e in$reases
and benefits. ,n the instant $ase# -<# *0'- -<0- -<# 090+, 906 <&/<#+ -<0" -<0- 9<&'<
906 84+8%+-#,.5 0/+##, 48%" &" -<# MOA 3#-9##" $0"0/#$#"- 0", -<# .03%+
4"&%" &6 %* "% $%$#"- 3#'046# -<# S#'+#-0+5, &" +#6%.2&"/ -<# CBA ,#0,.%':, &6
"%- .&$&-#, -% '%"6&,#+&"/ -<# MOA 06 306&6 &" '%$84-&"/ -<# 90/# &"'+#06#6.
<e $o)d# as he did# $onsider the finan$ia) do$ments sbmitted by res&ondent as we)) as
the &arties: bar!ainin! history and res&ondent:s finan$ia) ot)oo? and im&ro'ements as
stated in its website.
5.3 U"*0&+ .03%+ 8+0'-&'#. .. M0"&.0 M&"&"/ C%+8. E$8.%5##6 A66%'&0-&%", #- 0.. 26.. M0"&.0
M&"&"/ '%+8, #- 0.., G.R. N%6. 1IB222-23, S#8-#$3#+ 2E, 2010 . C
?4#6-&%" I6 6468#"6&%" %* CBA "#/%-&0-&%" 0" 4"*0&+ .03%+ 8+0'-&'#A
A"69#+ NO. Arti$)e 2/2 of the =abor Code defines the &hrase 5dty to bar!ain
$o))e$ti'e)y.6 For a $har!e of nfair )abor &ra$ti$e to &ros&er# it mst be shown that the
em&)oyer was moti'ated by i)).wi))# bad faith or frad# or was o&&ressi'e to )abor. 9he
em&)oyer mst ha'e a$ted in a manner $ontrary to mora)s# !ood $stoms# or &b)i$ &o)i$y
$asin! so$ia) hmi)iation# wonded fee)in!s or !ra'e an;iety. I" -<&6 '06#, &- '0""%- 3#
60&, -<0- MMC ,#.&3#+0-#.5 02%&,#, -<# "#/%-&0-&%". I- $#+#.5 6%4/<- 0 6468#"6&%"
0", #2#" #F8+#66#, &-6 9&..&"/"#66 -% "#/%-&0-# %"'# -<# $&"&"/ %8#+0-&%"6
+#64$#. T<#+# 906 20.&, +#.&0"'# %" -<# 6468#"6&%" %* $&"&"/ %8#+0-&%"6 *%+ -<#
6468#"6&%" %* -<# CBA "#/%-&0-&%". 9he Hnion fai)ed to &ro'e bad faith.
5.4 D&6$&660. %" 0''%4"- %* &..#/0. 6-+&:#. -- D0"&.% E6'0+&%, #- 0. 26. N0-&%"0. L03%+ R#.0-&%"6
C%$$&66&%", G.R. N%. 1H0302, S#8-#$3#+ 2I, 2010 .
?4#6-&%" A+# %+,&"0+5 9%+:#+6 9<% 9#+# +#&"6-0-#, ,4# -% ,&6$&660. *%+ -<#&+
80+-&'&80-&%" &" 0" &..#/0. 6-+&:#, #"-&-.#, -% 805$#"- %* 30':90/#6A
A"69#+ NO. Conformab)y with the )on! honored &rin$i&)e of a fair dayHs wa.e for a fair
dayHs labor# em&)oyees dismissed for *oinin! an i))e!a) stri?e are not entit)ed to ba$?wa!es
for the &eriod of the stri?e e'en if they are reinstated by 'irte of their bein! mere)y
members of the stri?in! nion who did not $ommit any i))e!a) a$t drin! the stri?e.
By its se of the &hrase un3ustly dismissed# Arti$)e 23( refers to a dismissa) that is
n*st)y done# that is# the em&)oyer dismisses the em&)oyee withot obser'in! de
&ro$ess# either sbstanti'e or &ro$edra). -bstanti'e de &ro$ess re2ires the
attendan$e of any of the *st or athori4ed $ases for terminatin! an em&)oyee as
&ro'ided nder Arti$)es 238# 283 or 28+ of the =abor CodeI whi)e &ro$edra) de &ro$ess
demands $om&)ian$e with the twin.noti$e re2irement.
. 8ar5 Hotel, et al. vs. Manolo <oriano, et al. G.R. N%. 1I111B. S#8-#$3#+ 10, 2012. -
D&6$&660.> U"*0&+ .03%+ 8+0'-&'#> L&03&.&-5 %* '%+8%+0-# %**&'#+6> M%+0. 0", #F#$8.0+5
,0$0/#6>
?UESTION May em&)oyees who ha'e !one on mass )ea'es withot &rior athori4ation be
&resmed to ha'e $ond$ted an i))e!a) stri?eL
,t is ndeniab)e that !oin! on )ea'e or absentin! one:s se)f from wor? for &ersona) reasons when
they ha'e )ea'e benefits a'ai)ab)e is an em&)oyee:s ri!ht. 9he $ontention of Biomedi$a that the
en*oyment of said )ea'es is in rea)ity an i))e!a) stri?e does not ho)d water in the absen$e of stron!
$ontro'ertin! &roof to o'ertrnthe &resm&tion that 5a &erson is inno$ent of ; ; ; wron!.6 9hs#
the indi'ida) )ea'es of absen$e ta?en by the &etitioners are not s$h absen$es that $an be
re!arded as an i))e!a) mass a$tion.
<ere# the fi'e "/% &etitioners were absent on 7o'ember 3# 2001. 9he re$ords are bereft of any
e'iden$e to estab)ish how many wor?ers are em&)oyed in Biomedi$a. 9here is no e'iden$e on
re$ord that / em&)oyees $onstitte a sbstantia) nmber of em&)oyees of Biomedi$a. And# as ear)ier
stated# it is in$mbent &on Biomedi$a to &ro'e that &etitioners were dismissed for *st $ases# this
in$)des the dty to &ro'e that the )ea'e was )ar!e.s$a)e in $hara$ter and nathori4ed. 9his#
Biomedi$a fai)ed to &ro'e. <a'in! fai)ed to show that there was a mass )ea'e# the Cort $on$)des
that there were on)y indi'ida) a'ai)ment of their )ea'es by &etitioners and they $annot be he)d !i)ty
of any wron!doin!# m$h )ess 33 0H=D- 8F C8H09# 0)e 131"a%. anythin! to *stify their
dismissa) from em&)oyment. 8n this !rond a)one# the &etition mst be !ranted.
P#-&-&%"#+6 ,&, "%- /% %" 6-+&:#
>rantin! for the sa?e of ar!ment that the absen$e of the / &etitioners on 7o'ember 3# 2001
is $onsidered a mass )ea'e# sti))# their a$tions $annotbe $onsidered a stri?e.
Art. 212"o% of the =abor Code defines a stri?e as 5any -#$8%+0+5 6-%880/# %* 9%+: by
the $on$erted a$tion of em&)oyees as a res)t of any indstria) or )abor dis&te.6
5Con$erted6 is defined as 5mta))y $ontri'ed or &)anned6 or 5&erformed in nison.638 ,n the $ase at
bar# the / &etitioners went on )ea'e for 'arios reasons. Petitioners were in different &)a$es on
7o'ember 3# 2001 to attend to their &ersona) needs or affairs. 9hey did not !o to the $om&any
&remises to &etition Biomedi$a for their !rie'an$e. 9o demonstrate their !ood faith in a'ai)in! their
)ea'es# &etitions re&orted for wor? and were at the $om&any &remises in the afternoon after they
re$ei'ed te;t messa!es as?in! them to do so. 9his shows that there was 78 intent to !o on stri?e.
Hnfortnate)y# they were barred from enterin! the &remises and were to)d to )oo? for new *obs.
-re)y the absen$e of &etitioners in the mornin! of 7o'ember 3# 2001 $annot in any way be
$onstred as a $on$erted a$tion# as their absen$es are &resmed to be for 'a)id $ases# in
!ood faith# and in the e;er$ise of their ri!ht to a'ai) themse)'es of CBA or $om&any benefits.
Moreo'er# Biomedi$a did not &ro'e that the indi'ida) absen$es $an be $onsidered as 5tem&orary
sto&&a!e of wor?.6 Biomedi$a:s a))e!ation that the mass )ea'e 5&ara)y4ed the $om&any o&eration on
that day6 has remained n&ro'ed.
N. LAW ON TERMINATION
BASIC PRINCIPLES IN DISCIPLINARY CASES
1. C%,# %* C%",4'- 26. 6#'4+&-5 %* -#"4+#
B0.0"'&"/ %* &"-#+#6-6 &" ,&6'&8.&"0+5 '06#6
1.1 L03%+;6 &"-#+#6-6
A wor?er:s ri!ht to )abor is re$o!ni4ed by the Constittion as a &ro&erty ri!ht. As
s$h# an em&)oyee $annot be de&ri'ed of his wor? withot *st $ase or de &ro$ess.
1.2 M0"0/#$#"-;6 &"-#+#6-6
8n the other hand# the em&)oyer is a))owed# in the e;er$ise of its mana!ement
&rero!ati'es# to &rom)!ate r)es and re!)ations# and to enfor$eKim&)ement them for the
effi$ient o&erations of the bsiness. Moreo'er# the )aw a)so re$o!ni4es the ri!ht of the
em&)oyer to e;&e$t from its wor?ers not on)y !ood &erforman$e# ade2ate wor? and
di)i!en$e# bt a)so !ood $ond$t and )oya)ty.
1.3 B0.0"'&"/ %* &"-#+#6-6
9hs# in the $onte;t of im&)ementin! the r)es and re!)ations for the $ond$t of
hman re)ationshi&s and wor? &erforman$e within the bsiness# $ertain &arameters wi))
ha'e to be obser'ed@
a% Brden of &roof is &on the em&)oyer to show *st $ase for the
im&osition of a &ena)ty &on the em&)oyee. <en$e# there mst e;ist
6436-0"-&0. #2&,#"'# to &ro'e *st or athori4ed $ase of termination.
Proof beyond reasonab)e dobt not re2ired in administrati'e $ases.
N%-#1@ Fai)re of em&)oyer to sbmit do$ments whi$h are &resmed to be in
its &ossession# ins&ite of an 8rder to do so# im&)ies that the &resentation of
said do$ments is &re*di$ia) to its $ase. !D# G41$0"
26. NLRC, =70 SCRA 210 ND#'. 200IO).
b% ,n the im&osition of &ena)ty# whether ss&ension or termination# the same
mst be $ommensrate to the offense $ommitted.
2012 CASE N#/+%6 S.06<#+6 26. A.2&" T#"/, G.R. N%. 1BI122, 22
F#3 2012
F0'-6 Bas?etba)) &)ayer A)'in 9en! had a be)ow.&ar &erforman$e
drin! >ame 7mber + of Cham&ionshi& 0ond for whi$h he was
&))ed ot from the !ame# and then he ntied his shoe)a$es and
donned his &ra$ti$e *ersey. ,n >ame 7mber /# he did not &)ay.
C06# *%+ N#/+%6 S.06<#+6 "a% bas?etba)) or!ani4ation is a Mteam.
basedM enter&rise and that a harmonios wor?in! re)ationshi& amon!
team &)ayers is essentia) to the s$$ess of the or!ani4ationI "b% 9en!
MabandonedM them drin! a $r$ia) >ame 7mber / in the MBA
$ham&ionshi& rond.
S48+#$# C%4+- Fe find that the &ena)ty of dismissa) handed ot
a!ainst 9en! was indeed too harsh. As an em&)oyee of the 7e!ros
-)ashers# 9en! was e;&e$ted to re&ort for wor? re!)ar)y. Missin! a
team !ame is indeed a &nishab)e offense. Hntyin! of shoe)a$es
when the !ame is not yet finished is a)so irres&onsib)e and
n&rofessiona). However, we agree with the *abor +rbiter that
such isolated ,oolishness o, an employee does not 3usti,y the
e-treme penalty o, dismissal ,rom service. 8etitioners could
have opted to impose a ,ine or suspension on 0eng ,or his
unacceptable conduct.
$% 9hs@ for 'a)id termination# there mst both be (UST CAUSE AND DUE
PROCESS. "e;$e&tion@ A!abon r)in!# see -e$tion + herender%
MANAGEMENT VS. LABOR
Mana!ement &rero!ati'es -e$rity of tenre
0i!ht to dis$i&)ine em&)oyee in 0i!ht to $ontinos
a$$ordan$e with r)es and em&)oyment nti)
re!)ations termination for *st or
athori4ed $ase
STATE
Po)i$e &owerKso$ia) *sti$e
,nter&retation in fa'or of )abor
2. GROUNDS FOR TERMINATION
2.1 (UST CAUSES FOR TERMINATION !A+-. 2B2, LC)
2.1.2 SERIOUS MISCONDUCT
. Defined as im&ro&er or wron! $ond$t# a trans!ression of a definite r)e of a$tion#
a forbidden a$t or dere)i$tion of dty whi$h is wi))f) in $hara$ter and im&)ies wron!f)
intent# and not mere error in *d!ment.
. For mis$ond$t or im&ro&er beha'ior to be a *st $ase for dismissa)# the same
mst be re)ated to the &erforman$e of the em&)oyee:s dties and mst show that he
has be$ome nfit to $ontine wor?in! for the em&)oyer.
CASES ON SERIOUS MISCONDUCT
a) IMPORTANT CASE NOT ASKED IN 2012 BAR S0$0<0" N/
M0"//0/090 S0 H50---NUHWRAIN V6. M0/60.&", GR N%. 1H7E3E, 0H (4"#
2011
?4#6-&%" M05 0 '%$80"5 20.&,.5 -#+$&"0-# 0" #$8.%5## 4",#+ 0 8+%2&6&%"
&" -<# #$8.%5## <0",3%%: 9<&'< 6-0-#6 L'%$$&--&"/ %**#"6#6 8#"0.&1#,
9&-< -<+## 6468#"6&%"6 9&-<&" 0 -9#.2#-$%"-< 8#+&%,MA
Answer@ Y#6, in this $ase where a nion offi$er was fond !i)ty of se'era)
infra$tions drin! ne!otiations stand.off. 9he $om&any terminated the nion
offi$er on the basis of a s&e$ifi$ &ro'ision in their em&)oyees handboo?# whi$h
&ro'ided that an em&)oyee may be terminated for the $ommission of offenses
meritin! three ss&ensions within a twe)'e.month &eriod. 9he -&reme Cort
r)ed that a series of irre!)arities# when &t to!ether# may $onstitte serios
mis$ond$t and hen$e# a *st $ase for termination. "S## 0.6% M08&.& 26. P<&.
R033&- B46 L&"#6, 2I (4.5 )
<owe'er# whi)e Go)ntary Arbitrator Ma!sa)in fond 'a)id !rond for termination#
he awarded the em&)oyee P100#000.00 for and as finan$ia) assistan$e. 9his was
raised as another error in the -&reme Cort# whi$h o'err)ed GA Ma!sa)in as
fo))ows@
The policy of social ?,stice is not intended to co,ntenance wron.doin.
simply beca,se it is committed by the ,nderprivile.ed. 6t best" it may
miti.ate the penalty b,t it certainly will not condone it. Social ?,stice
cannot be permitted to be a ref,.e of sco,ndrels any more than can
e7,ity be an impediment to the p,nishment of the .,ilty. Those who
invo4e social ?,stice may do so only if their hands are clean" and their
motives blameless" and not simply beca,se they happen to be poor. ===A
9 Samahan n. /an..a.awa sa :yatt-N<:3$6IN ibid." citin. P5DT vs.
N5$" No. 5-0*&*'" )1 6,. %''0.
b) RE?UIREMTS FOR VALID DRUG TEST 4",#+ R#8. A'- N%, E1=H !AER 26.
P+%/+#6&3%"/ U"&%" 60 AER, 1= (4.5 2011 citing Nacague vs. <uplicio Case,
+ug $#1#D
9he dr! tests sha)) be &erformed on)y by any !o'ernment forensi$
)aboratories or athori4ed dr! testin! $enters a$$redited by the De&t. 8f
<ea)th# ")ist of a$$redited $enters at www.osh$.do)e.!o'.&h%
Dr! testin! sha)) $onform with &ro$edre &res$ribed by the De&t. of <ea)th
9wo testin! methods@ s$reenin! te;t and $onfirmatory test
'.) T<#*- %* '%$80"5 8+%8#+-5 26. 8#+6%"0. 8+%8#+-5 %* '%-#$8.%5##.
G#"#+0. +4.#@ ,f $om&any &ro&erty# 'a)id termination on the !rond of serios
mis$ond$t.
C0.-#F !P<&.6.), I"' 26. A/0,, G.R. N%. 1H201I, 23 A8+&. 2010> T<#*- %*
C%$80"5 P+%8#+-5 !6'+08 $#-0.). C D'en if $onsidered as s$ra& materia)s# the
=P> $y)inders sti)) had monetary 'a)e whi$h A!ad $annot a&&ro&riate for
himse)f withot Ca)te;:s $onsent. Considerin! these findin!s# it is $)ear that A!ad
$ommitted a serios infra$tion amontin! to theft of $om&any &ro&erty. 9his a$t
is a?in to a serios mis$ond$t or wi))f) disobedien$e by the em&)oyee of the
)awf) orders of his em&)oyer in $onne$tion with his wor?# a *st $ase for
termination of em&)oyment re$o!ni4ed nder Arti$)e 282"a% of the
=abor Code.6
EF'#8-&%" ,f not $om&any &ro&erty bt &ersona) &ro&erty of $o.em&)oyee#
-&reme Cort has made di'er!ent r)in!s.
$.1% Aillamor Gol, Club vs. 8ehid, G.R. No. 1771$, #H &ctober $##. --
Ma)'ersation of a 5Pa)wa!an6 or 'o)ntary $ontribtion to a $ommon fnd by
the em&)oyees whi$h was not ?nown by the em&)oyer# is not serios mis$ond$t.
9he -&reme Cort 2oted with a&&ro'a) the findin! of the Cort of A&&ea)s
ths@ 5,n the $ase at ben$h# the 'o)ntary $ontribtion by the )o$?er &ersonne)
amon!st themse)'es to a mta) fnd for their own &ersona) benefit in times of
need is not in any way $onne$ted with the wor? of the )o$?er boys and the
$om&)ainant. ,f e'er there was misa&&ro&riation or )oss of the said mta) fnd#
the res&ondent wi)) not and $annot be in any way 5tend or $ase to &re*di$e the
$)b.6 -$h mta) fnd is a se&arate transa$tion amon! the em&)oyees and is
not in any way $onne$ted with the em&)oyee:s wor?. 9hs# if a $o.em&)oyee 5A6
owes em&)oyee 5B6 P100#000.00 and the former abs$onds with the money# the
em&)oyer $annot terminate the em&)oyment of em&)oyee 5A6 for dishonesty
andKor serios mis$ond$t sin$e the same was not $ommitted in $onne$tion with
the em&)oyee:s wor?.6
$.2% Cosmos (ottling As. >ilson Bermin, G.R. 1:%7!7 and >ilson Bermin
As. Cosmos (ottling, GR 1:H%#%, $# Gune $#1$ '' 9heft $ommitted a!ainst a
$o.em&)oyee is $onsidered as a $ase ana)o!os to serios mis$ond$t# for
whi$h the &ena)ty of dismissa) from ser'i$e may be meted ot to the errin!
em&)oyee
5,t mst be noted that in the $ase at bar# 0.. -<# .%9#+ -+&34"0.6 9#+# &"
0/+##$#"- -<0- F#+$&";6 0'- %* -0:&"/ B+0/0;6 '#..8<%"# 0$%4"-#, -% -<#*-.
Fa$ta) findin!s made by administrati'e a!en$ies# if estab)ished by sbstantia)
e'iden$e as borne ot by the re$ords# are fina) and bindin! on this Cort# whose
*risdi$tion is )imited to re'iewin! 2estions of )aw.
B2/C
9he on)y dis&ted isse
)eft for reso)tion is whether the im&osition of the &ena)ty of dismissa) was
a&&ro&riate. Fe r)e in the affirmati'e.6
,.) C%"68&+0'5 2&6-V-2&6 6#+&%46 $&6'%",4'-. C
S0+/066% C%"6-+4'-&%" 0", D#2#.%8$#"- C%+8%+0-&%" 26. NLRC, G.R. N%.
1H711B, 0E F#3+40+5 2010> W<#+# '%"68&+0'5 &6 "%- 64**&'&#"-.5 8+%2#". C
Fhi)e it is tre that in $ons&ira$y# dire$t &roof is not essentia)# it mst howe'er#
be shown that it e;ists as $)ear)y as the $ommission of the offense itse)f. T<#+#
$46- 0- .#06- 3# 0,#D40-# 8+%%* -<0- -<# $0.#*0'-%+6 <0, '%$# -% 0"
0/+##$#"- '%"'#+"&"/ -<# '%$$&66&%" %* 0 *#.%"5 0", ,#'&,#, -% '%$$&-
&-. ; ; ; For $ons&ira$y to e;ist# it is essentia) that -<#+# $46- 3# '%"6'&%46
,#6&/" -% '%$$&- 0" %**#"6#. C%"68&+0'5 &6 "%- -<# 8+%,4'- %* "#/.&/#"'#
34- %* &"-#"-&%"0.&-5 on the &art of the $ohorts. Absent s$h &roof of $ons&ira$y#
then termination is i))e!a).
W<&-# D&0$%", T+0,&"/ C%+8%+0-&%" 26. NBLRC, G.R. N%. 1BH01E, 2E M0+'<
2010> 9<#+# '%"68&+0'5 &6 8+%2#,. -- 8n the other hand# sffi$ient e'iden$e
e;ists to estab)ishin! serios mis$ond$t and dishonest where three em&)oyees
a))e!ed)y $ons&ired with ea$h other in defradin! the $om&any by ma?in! it
a&&ear in the interna) $om&any re$ords that a 9oyota 9own A$e was so)d for
P1(0#000.00 when in fa$t# it was so)d for P200#000.00 &er re$ei&t with the byer#
and ?e&t the P10#000.00 for themse)'es. 9he &ayment of the &r$hase &ri$e# the
issan$e of the re$ei&t and the handin! of the deed of sa)e to A2ino were not
se&arate iso)ated a$ts. T<#5 %''4++#, &" %"# '%"-&"4%46 .%/&'0. 6#D4#"'#
9&-< -<# 8.05#+6 &" '.%6# 8+%F&$&-5 9&-< %"# 0"%-<#+.
2.1.2 GROSS INSUBORDINATION
E.#$#"-6@ "a% em&)oyee:s assai)ed $ond$t mst be wi))f) or intentiona)I "b%
wi))f)ness $hara$teri4ed by wron!f) or &er'erse attitdeI "$% the order 'io)ated mst
be reasonab)e# )awf) and made ?nown to the em&)oyeeI and "d% the order mst
&ertain to the dties whi$h the em&)oyee has been en!a!ed to dis$har!e.
0) IMPORTANT NOT ASKED IN PREVIOUS BARS. - #P0'&*&' G.%30. C%"-0'-
C#"-#+ 26. C030"605, =3B SCRA 7EB N23 N%2. 200IO.
?4#6-&%" May a mana!er be terminated for !ross insbordination if the
$om&)ained a$t was within mana!er:s dis$retionary &owerL
A"69#+ Y#6. A)tho!h a mana!eria) em&)oyee is $)othed with dis$retion to
determine what was in the best of the $om&any# 60&, $0"0/#+&0. ,&6'+#-&%" &6
"%- 9&-<%4- .&$&-6. ,ts &arameters were $ontained the moment the dis$retion
was e;er$ised# and then o&&osed by the immediate s&eriorKoffi$er for bein!
a!ainst the &o)i$ies and we)fare of the $om&any. <en$e# any a$tion in &rsit of
the dis$retion ths o&&osed had $eased to be dis$retionary and $o)d be
$onsidered as wi))f) disobedien$e.
b) IMPORTANT - NOT ASKED IN 2012 BAR L%+#6 R#0.-5 E"-#+8+&6#6, I"'.,
L%+#"1% Y. S4$4.%"/ III 2. V&+/&"&0 E. P0'&0, G.R. N%. 1I11BE, M0+'< E, 2011.
W<#" "%- /+%66 &"643%+,&"0-&%".- Petitioner em&)oyer ordered the res&ondent
em&)oyee to &re&are $he$?s for &ayment of &etitioner:s ob)i!ations. 0es&ondent
did not immediate)y $om&)y with the instr$tion sin$e &etitioner em&)oyer has no
sffi$ient fnds to $o'er the $he$?s. Petitioner em&)oyer dismissed res&ondent
em&)oyee for wi))f) disobedien$e.
9he Cort he)d that res&ondent em&)oyee was i))e!a))y dismissed. 9he offense of
wi))f) disobedien$e re2ires the $on$rren$e of two "2% re2isites@ "1% the
em&)oyee:s assai)ed $ond$t mst ha'e been wi))f)# that is $hara$teri4ed by a
wron!f) and &er'erse attitdeI and "2% the order 'io)ated mst ha'e been
reasonab)e# )awf)# made ?nown to the em&)oyee and mst &ertain to the dties
whi$h he had been en!a!ed to dis$har!e.
9ho!h there is nothin! n)awf) in the dire$ti'e of &etitioner em&)oyer to &re&are
$he$?s in &ayment of &etitioner:s ob)i!ations# res&ondent em&)oyee:s initia)
re)$tan$e to &re&are the $he$?s# a)tho!h seemin!)y disres&e$tf) and defiant,
906 *%+ <%"#6- 0", 9#.. &"-#"-&%"#, +#06%"6. P+%-#'-&"/ -<# 8#-&-&%"#+
#$8.%5#+ *+%$ .&03&.&-5 4",#+ -<# B%4"'&"/ C<#':6 L09 906 *%+#$%6- &" <#+
$&",. I- 906 "%- 9+%"/*4. %+ 9&..*4.. N#&-<#+ '0" &- 3# '%"6&,#+#, 0"
%36-&"0-# ,#*&0"'# %* '%$80"5 04-<%+&-5. 9he Cort ta?es into $onsideration
that res&ondent em&)oyee# des&ite her initia) re)$tan$e# e'enta))y did &re&are
the $he$?s on the same day she was tas?ed to do it.
2.1.3 GROSS AND HABITUAL NEGLECT OF DUTIES
0) /+%66 "#/.&/#"'# $onnotes want of $are in the &erforman$e of one:s dties# or
absen$e of e'en s)i!ht $are or di)i!en$e as to amont to a re$?)ess disre!ards of the
safety of the &erson or &ro&erty
3) <03&-40. "#/.#'- im&)ies re&eated fai)re to &erform one:s dties o'er a &eriod
of time
c) 9&..*4. "#/.#'- %* ,4-&#6 im&)y bad faith on the &art of the em&)oyee in fai)in! to
&erform his *ob# to the detriment of the em&)oyer and the )atter:s bsiness
d) T%-0.&-5 %* &"*+0'-&%"6 +4.&"/ where the em&)oyee has been fond to ha'e
re&eated)y in$rred se'era) ss&ensions or warnin!s on a$$ont of 'io)ations of
$om&any r)es and re!)ations# the )aw warrants their dismissa) as it is a?in to
5habita) de)in2en$y6. ,t is the tota)ity# not the $om&artmenta)i4ation of $om&any
infra$tions that the em&)oyee had $onsistent)y $ommitted# whi$h *stified the &ena)ty
of dismissa). "Mera)$o 's. 7=0C# 213 -C0A /31 B2+ 8$t 1((1C%.
2012 CASE ON TOTALITY OF INFRACTIONS
M0"6&%" P+&"-&"/ C#"-#+ 0", C.#$#"- C<#"/ 26 D&%6,0,% B&-0+0, (+. # G.R. N%.
1HB120, 1= (0"40+5 2012. .. 5The totality of infractions or the n,mber of violations
committed d,rin. the period of employment shall be considered in determinin. the
penalty to be imposed ,pon an errin. employee. 9he offenses $ommitted by him
sho)d not be ta?en sin!)y and se&arate)y bt in their tota)ity. Fitness for $ontined
em&)oyment $annot be $om&artmenta)i4ed into ti!ht )itt)e $bi$)es of as&e$ts of
$hara$ter# $ond$t# and abi)ity se&arate and inde&endent of ea$h other.6
,n the &resent $ase# &etitioners ha'e re&eated)y $a))ed the attention of res&ondent
$on$ernin! his habita) tardiness. 9he Memorandm dated 23 Ane 1((( of
&etitioner Chen! re2ired him to e;&)ain his tardiness. A)so in $onne$tion with a
simi)ar infra$tion# res&ondent e'en wrote &etitioner Chen! a )etter dated 2(
7o'ember 1((( where he admitted that his tardiness has affe$ted the de)i'ery
s$hed)es of the $om&any# offered an a&o)o!y# and ndertoo? to hen$eforth re&ort
for dty on time. Des&ite this nderta?in!# he $ontined to either absent himse)f from
wor? or re&ort )ate drin! the first 2arter of 2000
e% A36#"'#6 <abita) absenteeism and e;$essi'e tardiness are forms of ne!)e$t
of dty on the &art of the em&)oyee and $onstitte *st and sffi$ient $ase for
termination.
f% A30",%"$#"- %* 9%+:@ the de)iberate and n*stified refsa) of an em&)oyee to
resme his em&)oyment. ,t is a form of ne!)e$t of dty# and hen$e# a *st $ase for
termination by the em&)oyer.
For a 'a)id findin! of abandonment# two fa$tors mst be &resent@@ "a% the fai)re to
re&ort for wor? or absen$e withot 'a)id or *stifiab)e reasonI and "b% a $)ear intention
to se'er the em&)oyer.em&)oyee re)ationshi&# with the se$ond as the more
determinati'e fa$tor whi$h is manifested by o'ert a$ts from whi$h it may be ded$ed
that em&)oyee has no more intention to wor?. 9he intent to dis$ontine the
em&)oyment mst be shown by $)ear &roof that it was de)iberate and n*stified.
CASES

IMPORTANT CASE C NOT ASKED IN 2012 BAR A.#+- S#'4+&-5 26. P0609&.0"
#- 0.., G.R. N%. 1B23EI, 17 S#8- 2011. J 8n the e)ement of fai)re of em&)oyees
to re&ort to wor?# the -&reme Cort did not a$$e&t the $om&any:s ar!ment that
they were terminated for n*stifiab)y refsin! to re&ort for dty in their new &osts
where they were transferred. A $aref) re'iew of re$ords re'ea) that there is no
showin! that em&)oyees were notified of transfer and hen$e# $annot be
$onsidered as ha'in! abandoned their wor?. Moreo'er# it a&&ears that
em&)oyees were re)ie'ed of their &osts be$ase they fi)ed a $om&)aint for
nder&ayment of wa!es with the 7=0C.

IMPORTANT CASE -- D&6$&660.> /+%66 0", <03&-40. "#/.#'-. S-. L4:#;6

M#,&'0. C#"-#+, I"'. 0", R%3#+- K40" 26. E6-+#.&-% N010+&%, G.R. N%. 1=21HH,
O'-%3#+ 20, 2010 . -- Hnder Arti$)e 282 "b% of the =abor Code# an em&)oyer may
terminate an em&)oyee for !ross and habita) ne!)e$t of dties. >ross ne!)i!en$e
$onnotes want of $are in the &erforman$e of one:s dties. <abita) ne!)e$t
im&)ies re&eated fai)re to &erform one:s dties for a &eriod of time# de&endin!
&on the $ir$mstan$es. A 6&"/.# %+ &6%.0-#, 0'- %* "#/.&/#"'# ,%#6 "%-
'%"6-&-4-# 0 G46- '046# *%+ -<# ,&6$&660. %* -<# #$8.%5##.
Assmin! ar!endo that res&ondent was ne!)i!ent# a)tho!h the Cort fond
otherwise# the )a&se or ina$tion $o)d on)y be re!arded as a sin!)e or iso)ated a$t
of ne!)i!en$e that $annot be $ate!ori4ed as habita) and# hen$e# not a *st $ase
for his dismissa). .

I"#**&'&#"'5 %* #$8.%5##> '%",%"0-&%" 35 #$8.%5#+> B#3&"0 G. S0.20.%10

26. N0-&%"0. L03%+ R#.0-&%"6 C%$$&66&%", G4.* P0'&*&' S#'4+&-5 A/#"'5,
I"'., 0", A"/#. ?4&1%", G.R. No. 1"$#"7, November $H, $#1#. .. Fhi)e it is
a$?now)ed!ed that &etitioner >re!orio:s ser'i$e re$ord shows that his
&erforman$e as a se$rity !ard was be)ow &ar# res&ondent >)f Pa$ifi$ ne'er
issed any memo $itin! him for the a))e!ed re&eated errors# ineffi$ien$y# and &oor
&erforman$e whi)e on dty# and instead $ontined to assi!n him to 'arios &osts.
9his amonts to $ondonation by >)f Pa$ifi$ of whate'er infra$tions >re!orio
may ha'e $ommitted. D'en assmin! the reasons for re)ie'in! >re!orio of his
&osition were tre# it was in$mbent &on >)f Pa$ifi$ to be 'i!i)ant in its
$om&)ian$e with )abor )aws.
2.1.7 FRAUD OR WILLFUL BREACH OF TRUST
- F+04, the de)iberate and fa)se re&resentation of fa$t# des&ite ?now)ed!e of its
fa)sehood# in order to ind$e another who re)ied &on it and benefit therefrom.
- E.#$#"-6 %* 9&..*4. 3+#0'< %* -+46- .#0,&"/ -% .%66 %* -+46- 0", '%"*&,#"'# "a%
the brea$h mst be wi))f) and not ordinary brea$h Bhen$e# done ?nowin!)y and
intentiona))yCI "b% em&)oyee ho)ds a &osition of trst and $onfiden$eI "$% mst be in
re)ation to the wor? &erformedI "d% there mst e;ist sbstantia) e'iden$e# and sho)d
not be based on mere srmises# s&e$)ations and $on*e$tres.
IMPORTANT CASE> NOT ASKED IN 2012 BAR P+4,#"-&0. B0": 26. A"-%"&% M04+&'% #-
0.., GR 1B33=0, 1B (0" 2012.
Prdentia) Ban? terminated Mana!er Mari$io for a))e!ed)y re&eated)y a))owin!
the withdrawa)s of do))ar $he$? transa$tions by a 'a)ed $stomer &rior to
$)earin! withot sffi$ient ba)an$e or fndin!# and in the $orse of time after de
adit# $ased the )oss of a&&ro; H- ^33/#000.00. M0"0/#+;6 ,#*#"6# T<&6
906 9&-<&" <&6 ,&6'+#-&%"0+5 8%9#+6. I6 -<&6 0 20.&, -#+$&"0-&%" *%+ .%66 %*
-+46- 0", '%"*&,#"'#L
A"69#+@ 7o. 9he -&reme Cort r)ed that on the basis of e'iden$e# it a&&ears
that the mana!er:s a$t in a))owin! the immediate withdrawa) by the 'a)ed
$stomers is we)) within his fn$tions as bran$h mana!er. A &erson o$$&yin!
s$h &osition e;er$ises a $ertain de!ree of dis$retion with res&e$t to
a$$ommodations to 'a)ed $)ients. 7o e'iden$e that Mana!er was &rom&ted by
any ma)i$ios moti'e in a&&ro'in! the en$ashment or to ha'e absed the
dis$retion he was $)othed with# absent some semb)an$e of &arameters. 7ote that
Mana!er re&orted a)) the transa$tions to the <ead 8ffi$eI if s$h a transa$tion
was irre!)ar or &rohibited# the <ead 8ffi$e of Prdentia) sho)d ha'e
immediate)y $a))ed the mana!er:s attention to the same. ,nstead# Prdentia)
$ontined to $redit the a$$ont of the $)ients for the 'a)e of the retrned $he$?s.
ADA:- 789D-@ 9he differen$e between this $ase and that of ePa$ifi$ >)oba) is
that the Mana!er in Prdentia) Ban? had e;er$ised dis$retionary &owers and was
not &rohibited nor 2estioned in doin! so nti) m$h )ater after the adit findin!s.
,n ePa$ifi$ >)oba)# the Mana!er:s s&erior had a)ready &rohibited her from
&ro$eedin! with the &resentation# and she insisted on $ontinin! the same.

A3#.0+,% A3#. 26. P<&.#F M&"&"/ C%+8%+0-&%", G.R. N%. 1IBEIH, 31 (4.5 200E. J
IMPORTANT CASE &" 8%&"-&"/ %4- -<0- -<#+# 0+# -9% '.066#6 %*
8%6&-&%"6 %* -+46- .
T<# *&+6- '.066 '%"6&6-6 %* $0"0/#+&0. #$8.%5##6. 9hey are defined as those
'ested with the &owers or &rero!ati'es to )ay down mana!ement &o)i$ies and to
hire# transfer# ss&end# )ay.off# re$a))# dis$har!e# assi!n or dis$i&)ine em&)oyees
or effe$ti'e)y re$ommend s$h mana!eria) a$tions.
T<# 6#'%", '.066 '%"6&6-6 %* '06<&#+6, 04,&-%+6, 8+%8#+-5 '46-%,&0"6, #-'..
9hey are defined as those who# in the norma) and rotine e;er$ise of their
fn$tions# re!)ar)y hand)e si!nifi$ant amonts of money or &ro&erty.
IMPORTANT, NOT ASKED IN PREVIOUS BAR EXAMS.
?4#6-&%" M05 0" #$8.%5## 3# ,&6$&66#, *%+ *+04, 0",P%+ ,&6<%"#6-5, #2#"
&* <# ,&, "%- 3#"#*&- *+%$ &-A D#.0 C+41 V. C%'0-C%.0 B%--.#+6 !31 (4.5 200E),
9his is a $ase of the friends of an em&)oyee was in'o)'ed in a motor 'ehi$)e
a$$ident whi)e dri'in! Co$a.Co)a 'ehi$)e withot athori4ation. Dri'er was
hos&ita)i4ed in -an Fernando# =a Hnion# where he was obser'ed to ha'e been
nder the inf)en$e of a)$oho). 9his was e'iden$ed by a medi$a) $ertifi$ate and
&o)i$e re&ort se$red by Co$a.$o)a.
9wo friends of the drn? dri'er "one was a s&er'isor% se$red a &o)i$e re&ort
and medi$a) $ertifi$ate omittin! any referen$e to em&)oyee bein! drn?# and
sbmitted it to the <0D in beha)f of the drn? dri'er. ,t is for this reason that they
were $har!ed with D,-<87D-9E. After de &ro$ess# they were dismissed and
they thereafter 2estioned the termination on the !rond that@ "a% they did not
o$$&y &ositions of trst and $onfiden$eI and "b% they did not benefit from the
frad.
9he -&reme Cort r)ed that the s&er'isor and friend were GA=,D=E
9D0M,7A9DD. W5By obtainin! an a)tered &o)i$e re&ort and medi$a) $ertifi$ate#
&etitioners de)iberate)y attem&ted to $o'er & the fa$t that -a)es was nder the
inf)en$e of )i2or at the time of a$$ident. ,n so doin!# they $ommitted a$ts
inimi$a) to $om&any interest J wor?.re)ated wi)f) brea$h of trst and $onfiden$e.6
CONTRA W<#" NOT 3+#0'< %* -+46- 0", '%"*&,#"'#> ,4-&#6 %* #$8.%5##.
(0$#6 B#" L. (#+460.#$ 2. K#88#. M%"-# B0":, #- 0.., G.R. No. 17:7H. +pril 7,
$#11 . -- Petitioner was em&)oyed as Assistant Gi$e.President in res&ondent ban?.
<is em&)oyment was terminated on the !rond of wi))f) brea$h of trst and
$onfiden$e for #",%+6&"/ VISA '0+, 088.&'0"-6 9<% .0-#+ -4+"#, %4- -% 3#
&$8%6-%+6 +#64.-&"/ &" *&"0"'&0. .%66#6 -% +#68%",#"- 30":. 9he -&reme Cort
he)d that &etitioner was i))e!a))y dismissed be$ase the a$t of betraya) of trst# if any#
mst ha'e been $ommitted by the em&)oyee in $onne$tion with the &erforman$e of
his fn$tion or &osition. T<# '%4+- *%4", -<0- -<# #.#$#"- %* W9%+:-'%""#'-&%";
906 "%- 8+#6#"- &" -<&6 '06# 6&"'# 8#-&-&%"#+ 906 066&/"#, 4",#+ -<# (#9#.+5
,#80+-$#"-, 0", -<#+#*%+# <0, "%-<&"/ -% ,% 9&-< -<# 088+%20. %* VISA C0+,6,
9<&'< 906 4",#+ 0 ,&**#+#"- ,#80+-$#"- 0.-%/#-<#r.
2.1.= C%$$&66&%" %* '+&$# 35 #$8.%5## 0/0&"6- #$8.%5#+ FFF
T%++#,0 26. T%6<&30 I"*% ED4&8$#"- P<&.6. =1= SCRA 133 NF#3 200IO). -- 9his wi))
a)so in$)de fa)se a$$sation by the em&)oyee of his immediate s&erior of a $rime
s$h as robbery# as s$h is tantamont to serios mis$ond$t
2.1.H OTHER ANALOGOUS CAUSES
INCOMPETENCE C
EDI S-0** B4&.,#+6 26.NLRC, =3I SCRA 70E NO'- 200IO. -- An a))e!ation of
in$om&eten$e sho)d ha'e a fa$ta) fondation and may be shown by wei!hin! it
a!ainst a standard# ben$hmar? or $riterion.
IMMORALITY -
9his has been defined as s$h $ond$t whi$h $onf)i$ts with !enera))y or
traditiona))y he)d mora) &rin$i&)es. ,t is a?in to the &hrase 5mora) tr&itde6# the
term im&)yin! somethin! immora) in itse)f# re!ard)ess of whether it is &nishab)e
by )aw or not.
T%.#,% 26. T%.#,%, =77 SCRA 2I N0H F#3+40+5 200BO> '06# %" '%$$%" .&2#-
&" +#.0-&%"6<&86. J 9he Cort has &re'ios)y defined immora) $ond$t as that
$ond$t whi$h is 5wi))f)# f)a!rant or shame)ess# and whi$h shows a mora)
indifferen$e to the o&inion of the !ood and res&e$tab)e members of the
$ommnity.6 ,n disbarment $ases howe'er# this Cort has r)ed that the mere fa$t
of se;a) re)ations between two nmarried ad)ts is not sffi$ient to warrant
administrati'e san$tion for s$h i))i$it beha'ior. Fhether a )awyer:s se;a)
$on!ress with a woman not his wife or withot benefit of marria!e sho)d be
$hara$teri4ed as 5!ross)y immora) $ond$t6 wi)) de&end on the srrondin!
$ir$mstan$es. 9he -&reme Cort frther r)ed that intima$y between a man
and a woman who are not married# where both sffer from no im&ediment to
marry# 'o)ntari)y $arried on and de'oid of any de$eit on the &art of the
res&ondent# is neither so $orr&t as to $onstitte a $rimina) a$t nor so
n&rin$i&)ed as to warrant disbarment or dis$i&)inary a!ainst a member of the
Bar. A6 64'<, -<# C%4+- '0""%- '%"'.4,# -<0- -<&6 0'- %* '%<03&-&"/ 9&-< 0
9%$0" 0", 3#--&"/ '<&.,+#" 35 <#+ 9&-<%4- 3#"#*&- %* $0++&0/# *0..6 9&-<&"
-<# '0-#/%+5 %* L/+%66.5 &$$%+0. '%",4'-6.
TERMINATION DUE TO UNION SECURITY CLAUSE C
I"/4&..% 0", B#+/0"-# 26. F&+6- P<&.&88&"# S'0.#6, G.R. N%. 1H=70I !0= (4"#
200E). .. ,n terminatin! the em&)oyment of an em&)oyee by enfor$in! the Hnion
-e$rity C)ase# the em&)oyer needs on)y to determine and &ro'e that@ "1% the
nion se$rity $)ase is a&&)i$ab)eI "2% the nion is re2estin! for the
enfor$ement of the nion se$rity &ro'ision in the CBAI and "3% there is sffi$ient
e'iden$e to s&&ort the nionNs de$ision to e;&e) the em&)oyee from the nion or
$om&any. 7ote that whi)e the dismissa) of em&)oyees was *stified# the $om&any
did not $om&)y with de &ro$ess re2irement. Frnishin! the em&)oyees with
$o&ies of the 5Petisyon6 fi)ed by the $o))e$ti'e bar!ainin! a!entKnion is not
sffi$ient $om&)ian$e with de &ro$ess re2irements# es&e$ia))y where there is
no e'iden$e that the em&)oyees were !i'en an o&&ortnity to e;&)ain or &resent
e'iden$e in s&&ort of their defenses. 7either did the <0D Mana!er show that
she was ab)e to as$ertain the 'a)idity of the $har!es mentioned in the Petisyon.
3. AUTHORIZED CAUSES FOR TERMINATION
!A+-. 2B3-2B7, LC) M#$%+5 0&,
3.1 ;&6#06# !se&aration &ay of 1K2 month &ay for e'ery year of ser'i$e%
Dm&)oyee mst be sfferin! from a disease# and $ontined em&)oyment is
&rohibited by )aw andKor is &re*di$ia) to his hea)th andKor that of his $o.
em&)oyeesI
Disease $annot $annot be $red within a &eriod of si; "1% months# and said
fa$t is $ertified by a $om&etent &b)i$ hea)th athority
,f $rab)e# then em&)oyer $annot terminate bt may as? em&)oyee to ta?e a
)ea'eI immediate)y &on restoration of norma) hea)th# em&)oyer mst
reinstate em&)oyee to former &osition.
3.2 I"6-0..0-&%" %* .03%+ 602&"/ ,#2&'#6 "se&n &ay@ 1 moKyr of ser'i$e%
D;am&)e@ $om&teri4ation of a$$ontin! and &ayro)) systemI me$hani4ation of
assemb)y )ine# et$.
Presm&tion is that the em&)oyer does not ha'e any serios bsiness )osses#
as to afford the &r$hase of )abor.sa'in! de'i$es.
3.3 Re,4",0"'5 "-e&n &ay@ 1 moKyr of ser'i$e%
0edndan$y is a?in to retren$hment and is another athori4ed $ase for the
termination of em&)oyees nder Arti$)e 283 of the =abor Code# -<+%4/< "% *04.-
%* -<# .0--#+. Hnder this $ir$mstan$e# the em&)oyer may ths 'a)id)y terminate
the em&)oyee be$ase he has no legal obligation to 5eep in his payroll more
employees than are necessary ,or the economical operation o, the
business.
+

0edndan$y e;ists where the ser'i$es of an em&)oyee are in e=cess of what is
reasonab)y demanded by the a$ta) re2irements of the bsiness o&erations.
-$$in$t)y stated otherwise# a &osition may be de$)ared redndant and the
em&)oyee terminated where his &osition has be$ome super,luous or is a
duplication o, wor5# 'i4.# $ased by o'erhirin! of wor?ers# de$reased 'o)me of
bsiness# dro&&in! of a &arti$)ar &rod$t )ine or ser'i$e a$ti'ity.
2011 CASES
I..#/0. ,&6$&660.> +#,4",0"'5. N#.6%" A. C4.&.& 2. E06-#+" T#.#'%$$4"&'0-&%"6
P<&.&88&"#6, I"'., #- 0.. G.R. N%. 1H=3B1, F#3+40+5 E, 2011. -- 0es&ondent.$om&any#
de to bsiness trob)es and )osses# im&)emented a 0i!ht.-i4in! Pro!ram whi$h
entai)ed a $om&any.wide reor!ani4ation in'o)'in! the transfer# mer!er#
absor&tion or abo)ition of $ertain de&artments of the $om&any. As a res)t#
+
Fi)tshire Fi)e Co. ,n$. 's. 7=0C# >.0. 7o. 822+( B03 Febrary
1((1C.
DIR#
2
C
res&ondent.$om&any terminated the ser'i$es of &etitioner on a$$ont of
redndan$y. Petitioner fi)ed a $om&)aint a!ainst res&ondent.$om&any and its
offi$ers for i))e!a) dismissa)# nfair )abor &ra$ti$e# and money $)aims.
9he Cort r)ed that &etitioner was 'a)id)y dismissed. 9he Cort has been
$onsistent in ho)din! that the determination of whether or not an em&)oyee:s
ser'i$es are sti)) needed or sstainab)e &ro&er)y be)on!s to the em&)oyer.
Pro'ided there is no 'io)ation of )aw or a showin! that the em&)oyer was
&rom&ted by an arbitrary or ma)i$ios a$t# the sondness or wisdom of this
e;er$ise of bsiness *d!ment is not sb*e$t to the dis$retionary re'iew of the
=abor Arbiter and the 7=0C.
H%9#2#+, 0" #$8.%5#+ '0""%- 6&$8.5 ,#'.0+# -<0- &- <06 3#'%$#
%2#+$0""#, 0", ,&6$&66 &-6 #$8.%5##6 9&-<%4- 8+%,4'&"/ 0,#D40-# 8+%%*
-% 646-0&" &-6 '.0&$ %* +#,4",0"'5. Amon! the re2isites of a 'a)id redndan$y
&ro!ram are@ "1% the !ood faith of the em&)oyer in abo)ishin! the redndant
&ositionI and "2% fair and reasonab)e $riteria in as$ertainin! what &ositions are to
be de$)ared redndant# s$h as bt not )imited to@ &referred stats# effi$ien$y#
and seniority. 9he Cort a)so he)d that the fo))owin! e'iden$e may be &roffered to
sbstantiate redndan$y@ ado&tion of a new staffin! &attern# feasibi)ity stdiesK
&ro&osa) on the 'iabi)ity of the new)y $reated &ositions# *ob des$ri&tion and the
a&&ro'a) by the mana!ement of the restr$trin!.
H%9#2#+, &- *0&.#, -% 8+%2&,# -<# D#80+-$#"- %* L03%+ 0", E$8.%5$#"- 9&-<
0 9+&--#" "%-&'# +#/0+,&"/ 8#-&-&%"#+;6 -#+$&"0-&%". T<# "%-&'# %*
-#+$&"0-&%" 906 0.6% "%- 8+%8#+.5 6#+2#, %" -<# 8#-&-&%"#+. Frther# a
readin! of the noti$e shows that res&ondent.$om&any fai)ed to &ro&er)y inform
the &etitioner of the !ronds for his termination. Fhi)e em&)oyers ha'e the ri!ht
to terminate em&)oyees it $an no )on!er sstain# or )aws a)so re$o!ni4e the
em&)oyee:s ri!ht to be &ro&er)y informed of the im&endin! termination of his
em&)oyment. 9ho!h the fai)re of res&ondent.$om&any to $om&)y with the
noti$e re2irements nder the =abor Code did not affe$t the 'a)idity of the
dismissa)# &etitioner is howe'er entit)ed to nomina) dama!es in addition to his
se&aration &ay.
3.+ Re-+#"'<$#"- "-e&n. Pay@ 1K2 month &ay for e'ery year of ser'i$e%
0etren$hment is the termination of em&)oyment by the em&)oyer through no
,ault o, the employees# and is sa))y resorted to by the em&)oyer &rimari)y to
a'oid or minimi4e e$onomi$ or bsiness re'erses drin! &eriods of bsiness
re$ession# indstria) de&ression# seasona) f)$tations# re.or!ani4ation or
atomation of the $om&any o&erations.
/
Fhere the em&)oyer sffers serios and
a$ta) bsiness )osses# mana!ement has the fina) say as to whether it wi))
$ontine to ris? its $a&ita) or not.
1
H%9#2#+, -<# #$8.%5#+ 3#0+6 -<# 34+,#" -%
8+%2# <&6 0..#/0-&%" %* 346&"#66 .%66#6.
3
E.#$#"-6 *%+ 20.&, +#-+#"'<$#"-
Hnder Arti$)e 283 of the =abor Code# in $on*n$tion with -e$tion 2# 0)e PP,,, of
the ,m&)ementin! 0)es of the =abor Code# the fo))owin! e)ements mst be stri$t)y
$om&)ied with in order that the retren$hment may be $onsidered as 'a)id@
a) 9he )osses e;&e$ted sho)d be sbstantia) and not mere)y de minimis in
e;tent. ..
b% 9he sbstantia) )osses a&&rehended mst be reasonab)y imminentI
/
-ee@ -eb!ero 's. 7=0C# 2+8 -C0A /33 B1((/C.
1
-an Pedro <os&ita) of Di!os# ,n$. 's. -e$retary of =abor# 213 -C0A (8 B1((1C.
3
>errero 's. 7=0C# 211 -C0A 301 B1((1C
$% 9he retren$hment mst be reasonab)e ne$essary and )i?e)y to effe$ti'e)y
&re'ent the e;&e$ted )ossesI and
d% 9he a))e!ed )osses# if a)ready in$rred and the e;&e$ted imminent )osses
so!ht to be foresta))ed# mst be &ro'ed by sffi$ient and $on'in$in! e'iden$e.
8

9his means that retren$hment mst be reasonab)y ne$essary and is )i?e)y to
&re'ent bsiness )osses whi$h# i, already incurred# mst be sbstantia)# serios#
a$ta) and rea)# OR i, only e-pected # are reasonab)y imminent as &er$ei'ed
ob*e$ti'e)y and in !ood faith by the em&)oyer.
,n addition# the em&)oyer sho)d ha'e ta?en other measres &rior or &ara))e) to
retren$hment to foresta)) )osses# e.!.# $t other $osts. 9hs# the -&reme Cort
has r)ed that the retren$hment nderta?en by a $om&any to be in'a)id where it
was shown that the $om&any )i?ewise $ontined to dis&ense fat e;e$ti'e
bonses to its offi$ers.
V&+/&.&% A"03# 26. A6&0K%"6-+4'-, G.R. N%. 1B3233, 23 D#'#$3#+ 200E>
*&"0"'&0. 6-0-#$#"-6 06 8+%%* %* 6#+&%46 346&"#66 .%66#6. .. Anabe was a
radio te$hni$ian o&erator who was retren$hed on a$$ont of a))e!ed serios
bsiness re'ersa). =abor Arbiter for $om&)ainant# on a$$ont of fai)re of
$om&any to &ro'e serios bsiness )osses. 8n a&&ea) to 7=0C# $om&any
sbmitted finan$ia) statement# and as s$h# 7=0C re'ersed the =abor Arbiter:s
r)in!. .
S48+#$# C%4+- +4.&"/ 06 -% *&"0"'&0. 6-0-#$#"-. J Fhi)e 7=0C may re$ei'e
e'iden$e on a&&ea)# note that the brden of &roof is &on the em&)oyer.
Com&any ine;&)i$ab)y sbmitted finan$ia) statements 9F8 EDA0- after the
$ase was fi)ed and &endin!# and 87=E AF9D0 it had re$ei'ed the ad'erse
de$ision of the =abor Arbiter. 9he de)ay in the sbmission of the e'iden$e sho)d
be $)ear)y e;&)ained and sho)d ade2ate)y &ro'e the em&)oyer:s a))e!ations of
the $ase of termination. ,n this $ase# Asia?onstr$t &roferred no e;&)anation
behind the be)ated sbmission. Moreo'er# the finan$ia) statements $o'erin!
&eriod 1((8.2000 was &re&ared on)y in 2001 J whi$h be!s the 2estion of how
the mana!ement ?new at s$h date of the $om&any:s h!e )osses to *stify
Anabe:s retren$hment in 1(((. =ast)y# -DC $ertifi$ation that no finan$ia)
statements were sbmitted for the &eriod 1((8.2000# and 2003.200/# thereby
)endin! $reden$e to AnabeIs theory that the finan$ia) statements sbmitted on
a&&ea) may ha'e been fabri$ated. ,ndeed# AsiaOonstr$t $o)d ha'e easi)y
sbmitted its finan$ia) statements drin! the &enden$y of the &ro$eedin!s at the
arbitra) )e'e).
R#-+#"'<$#"-> #.#$#"-6. F.&/<- A--#",0"-6 0", S-#90+,6 A66%'&0-&%" %* -<#
P<&.&88&"#6 !FASAP) 26. P<&.&88&"# A&+.&"#6, I"'., G.R. N%. 1IB0B3, O'-%3#+ 2, 200E.
-- ,n order for a retren$hment s$heme to be 'a)id# a)) of the fo))owin! e)ements
nder Arti$)e 283 of the =abor Code mst $on$r or be &resent. I" -<# 036#"'#
%* %"# #.#$#"-, -<# +#-+#"'<$#"- 6'<#$# 3#'%$#6 0" &++#/4.0+ #F#+'&6# %*
$0"0/#$#"- 8+#+%/0-&2#. T<# #$8.%5#+;6 %3.&/0-&%" -% #F<046- 0.. %-<#+
$#0"6 -% 02%&, *4+-<#+ .%66#6 9&-<%4- +#-+#"'<&"/ &-6 #$8.%5##6 &6 0
'%$8%"#"- %* -<# *&+6- #.#$#"- 06 #"4$#+0-#, 03%2#. 9o im&art o&erationa)
meanin! to the $onstittiona) &o)i$y of &ro'idin! f)) &rote$tion to )abor# the
em&)oyer:s &rero!ati'e to brin! down )abor $osts by retren$hin! mst be
e;er$ised essentia))y as a measre of )ast resort# after )ess drasti$ means ha'e
been tried and fond wantin!.
3./ C#660-&%" %+ '.%64+# %* #$8.%5#+;6 346&"#66 "1K2 month &ay for e'ery year of
ser'i$e%
8
-an Mi!e) Aee&ney -er'i$es 's. 7=0C# 21/ -C0A 3/ B1((1C
A"/#.#6 26. P%.5-#F D#6&/", =3H SCRA 1=E NO'- 200IO). -- An em&)oyer is not
&re'ented from e;er$isin! its &rero!ati'es to $)ose sho& so )on! as it is done in
!ood faith to ad'an$e its interests# and not for the &r&ose of defeatin! or
$ir$m'entin! the ri!hts of the em&)oyees.
D&6$&660.> '.%64+# %* 346&"#66 &" 30, *0&-<. P#X0*+0"'&0 T%4+6 0", T+02#.
T+0"68%+-, I"'. 26. (%6#.&-% P. S0+$&#"-% 0", R&'0+,% S. C0-&$30"/, G.R.
N%. 1IB3EI, O'-%3#+ 20, 2010. -- Petitioner terminated the em&)oyment of
res&ondents on the !rond of $)osre or $essation of o&eration of the
estab)ishment whi$h is an athori4ed $ase for termination nder Arti$)e 283 of
the =abor Code. Fhi)e it is tre that a $han!e of ownershi& in a bsiness $on$ern
is not &ros$ribed by )aw# the sa)e or dis&osition mst be moti'ated by !ood faith
as a $ondition for e;em&tion from )iabi)ity. ,n the instant $ase# howe'er# there
was# in fa$t# no $han!e of ownershi&. Petitioner did not &resent any do$mentary
e'iden$e to s&&ort its $)aim that it so)d the same to A=P- 9rans&ortation. 8n the
$ontrary# it $ontinos)y o&erates nder the same name# fran$hises and rotes
and nder the same $ir$mstan$es as before the a))e!ed sa)e. T<46, "% 0'-40.
60.# -+0"68&+#, 0",, 06 64'<, -<#+# &6 "% '.%64+# %+ '#660-&%" %* 346&"#66
-<0- '0" 6#+2# 06 0" 04-<%+&1#, '046# *%+ -<# ,&6$&660. %* +#68%",#"-6.
7. PROCEDURE FOR TERMINATION
G#"#+0. R4.#
9he twin re2irements of NOTICE 0", HEARING are the essentia) e)ements of ,4#
8+%'#66 in termination $ases# whi$h $annot be dis&ensed with withot 'io)atin! the
$onstittiona) ri!ht to de &ro$ess
NOTICE RE?UIREMENT, MUST SUBSTANTIATE INFRACTION, GENERAL
NARRATIVE NOT SUFFICIENT. K&"/ %* K&"/6 T+0"68%+- 26. M0$0', =2H SCRA11H !2E
(4" 200I). -- ,n order to inte))i!ent)y &re&are the em&)oyees for their e;&)anation and
defenses# the noti$e sho)d $ontain a ,#-0&.#, "0++0-&%" %* -<# *0'-6 R
'&+'4$6-0"'#6 that wi)) ser'e as the basis for the $har!e a!ainst the em&)oyee J a
!enera) des$ri&tion of the $han!e wi)) not sffi$e.
ILLEGALITY OF THE ACT OF DISMISSAL - DISCHARGE WITHOUT (UST CAUSE
0emedies nder the =abor Code@
1. 0einstatement to his former &osition withot )oss of seniority ri!hts. ,f no )on!er
a'ai)ab)e nor any e2i'a)ent &osition# then se&aration &ay to be !i'en in )ie or
reinstatement $om&ted 1 month &ay for e'ery year of ser'i$e.
2. Payment of FULL ba$?wa!es $orres&ondin! to the &eriod from his i))e!a)
dismissa) & to a$ta) reinstatement.
3. Dama!es &)s attorney:s fees.
ILLEGALITY IN THE MANNER OF DISMISSAL - DISMISSAL WITHOUT DUE
PROCESS !WENPHIL, SERRANO AND AGABON RULING)
1. ,n any e'ent# NO REINSTATEMENT. <owe'er# as re!ards &ena)ty for non.
$om&)ian$e with de &ro$ess re2irements# the newest -&reme Cort r)in! $ir$a
7o'ember 200+ is that the em&)oyer sha)) be san$tioned with &ena)ty of
P30#000.00 in a$$ordan$e with the A!abon 's. 7=0C $ase# whi$h now affirms the
Fen&hi) do$trine and abandonin! the -errano r)in!.
2. W#"8<&. 26. NLRC +4.&"/ "for terminations o$$rrin! &rior to 2000% .. Be$ase of
fai)re to $om&)y with the Constittiona) ri!ht to de &ro$ess# the em&)oyer may be
&ena)i4ed a fine "of P3#000.00 to P10#000.00# de&endin! &on dis$retion of the
-C%.
3. S#++0"% 26. NLRC ,#'&6&%" 8+%$4./0-#, &" 2I (0" 2000 "for terminations
o$$rrin! after 2000 bt before 7o'ember 200+% .. De to a&&arent abse by
em&)oyers of the Fen&hi) do$trine# -&reme Cort in$reased &ena)ty from the
&re'ios P3#000.00 to P10#000.00 fine# to a fine in an amont e2i'a)ent to
ba$?wa!es $om&ted from date of termination nti) fina)ity of *d!ment findin! that
there was *st $ase bt no de &ro$ess.
+. A/03%" 26. NLRC +4.&"/, G.R. N%. 1=BHE3, 11P1IP2007 "for terminations o$$rrin!
after 13 7o'ember 200+% J 9he -&reme Cort has a&&arent)y abandoned the
-errano r)in! and re'erted to the Fen&hi) r)in!# insofar as it r)ed that in $ases
where there was sbstantia) e'iden$e &ro'in! *st $ase BH9 that de &ro$ess
was not fo))owed# the termination wi)) be HP<D=D "$onsidered 'a)id and effe$ti'e%
bt the em&)oyee wi)) be &ena)i4ed the amont of P30#000.00.
9he -&reme Cort stated that 5it wo)d not be ri!ht to order either reinstatement
of the dismissed em&)oyee or the &ayment of ba$?wa!es to the em&)oyee. Bt for
fai)in! to $om&)y with the &ro$edre &res$ribed by )aw in terminatin! the ser'i$es of
the em&)oyee# the em&)oyer sho)d be made )iab)e for the &ayment of se&aration
&ay.6
/. -ho)d em&)oyee see? dama!es on this a$$ont# may fi)e with re!)ar $ort.
B>o'erned e;$)si'e)y by the Ci'i) Code. "-hoemart 's. 7=0C# s&ra.%C
=. ON NOTICE AND HEARING
D#8-. O+,#+ N%. 10, A+-&'.# V> IRR B= R17 S1-11
/.1 T9% "%-&'#6 +#D4&+#,@
1
6-
"%-&'# Notice o, appraisal# whi$h is a written noti$e 6#+2#, %" -<#
#$8.%5## s&e$ifyin! the !rond or !ronds of termination# and !i'in! the
em&)oyee reasonable opportunity within whi$h to e;&)ain his side
9he first noti$e sho)d $ontain a detai)ed narration of fa$ts and $ir$mstan$es
that wi)) ser'e as basis for the $har!e a!ainst the em&)oyee. A !enera)
des$ri&tion of the $har!e wi)) not sffi$e. 9he noti$e sho)d s&e$ifi$a))y mention
whi$h $om&any r)es# if any# are 'io)ated. !K&"/ %* K&"/6 T+0"68%+- 26.
M0$0', =2H SCRA 11H N2E (4"# 200IO), and that the em&)oyer see?s
dismissa) for the a$t or omission $har!ed a!ainst the em&)oyeeI otherwiseI the
noti$e does not $om&)y with the r)es. "M0/+% P.0'#$#"- 26. H#+"0",#1,
=2H SCRA 70B N07 (4.5 200IO)
O" LR#06%"03.# %88%+-4"&-5M 9his means e'ery ?ind of assistan$e that
mana!ement mst a$$ord to the em&)oyees to enab)e them to &re&are
ade2ate)y for their defense. 9his sho)d be $onstred as a &eriod of FIVE !=)
CALENDAR DAYS from re$ei&t of noti$e to !i'e the em&)oyees an o&&ortnity
to stdy the a$$sation a!ainst them# $ons)t a nion offi$ia) or )awyer# !ather
data and e'iden$e# and de$ide on the defenses they wi)) raise a!ainst the
$om&)aint. !K&"/ %* K&"/6 T+0"68%+-, &3&,.)
2
",
"%-&'# Notice o, termination# whi$h is a written noti$e of termination ser'ed
&on the em&)oyee# indi$atin! that &on de $onsideration of a)) the
$ir$mstan$es# !ronds ha'e been estab)ished to *stify his termination.
5.2 HearingI

a hearin! or a $onferen$e drin! whi$h the em&)oyee $on$erned# with the

assistan$e of $onse) if he so desires# is !i'en the o&&ortnity to res&ond to
the $har!e# to &resent his e'iden$e# or to rebt the e'iden$e &resented
a!ainst him.

note that a forma) hearin! "as in the manner of re!)ar $orts% is not re2iredI
on)y sbstantia) e'iden$e is ne$essary.
9here is no ne$essity for a forma) hearin! where an em&)oyee admits
res&onsibi)ity for the a))e!ed mis$ond$t. ,t is sffi$ient that she be informed of
the findin!s of mana!ement and the basis of its de$ision to dismiss her.
=.3 R&/<- -% '%4"6#. %" -<# 80+- %* -<# #$8.%5## C &6 -<&6 $0",0-%+5 0",
&",&68#"603.# 06 80+- %* ,4# 8+%'#66A
NO. ,n the $ase of *opeJ vs. +lturas Group, 11 +pril $#11# the -&reme Cort
r)ed that the 5ri!ht to $onse) and the assistan$e of one in in'esti!ations in'o)'in!
termination $ases is neither indis&ensab)e nor mandatory# e;$e&t when the
em&)oyee himse)f re2ests for one or that he manifests that he wants a forma)
hearin! on the $har!es a!ainst him.6
H. BURDEN OF PROOF RESTS UPON THE EMPLOYER
9he em&)oyer mst show that the dismissa) of the em&)oyee is for *st $ase. Fai)re
to do so means that the dismissa) is not *stified and the em&)oyee is entit)ed to
reinstatement. ,n fa$t# as ear)y as the $ase of Centry 9e;ti)e Mi))s 's. 7=0C B>.0. 7o.
338/(# 2/ May 1(88C# a findin! of the em&)oyee:s &arti$i&ation in the $rimina)
$ons&ira$y $annot be made to rest so)e)y on the ni)atera) de$)aration of one who is
himse)f a $onfirmed 5$o.$ons&irator.6 9he $o.$ons&irator:s $onfession mst be
$orroborated by other $om&etent and $on'in$in! e'iden$e.
I. ON REINSTATEMENT
Fhere the former &osition is no )on!er a'ai)ab)e# the em&)oyee mst be reinstated to
an e2i'a)ent &osition.
Fhere the reinstatement is no )on!er 'iab)e in 'iew of the strained re)ations between
the em&)oyer and em&)oyee# or if the em&)oyee de$ides not to be reinstated# the
em&)oyer sha)) &ay him se&aration &ay in )ie of reinstatement
N0-4+# %* -<# %+,#+ %* -<# L03%+ A+3&-#+ %" +#&"6-0-#$#"-. --
9he reinstatement order of the =abor Arbiter is immediate)y e;e$tory e'en &endin!
a&&ea). "Arti$)e 223 "3%# =abor CodeI $f Pioneer 9e;tri4in! 's. 7=0C "280 -C0A
801 B1((3C%.
<en$e# it is the ob)i!ation of the em&)oyer to immediate)y admit the em&)oyee ba$? to
wor? or reinstate him in the &ayro)) at his o&tion. 8therwise# the em&)oyer wi)) be he)d
)iab)e for ba$?wa!es from the date of noti$e of the order ",nternationa) Container
9ermina) -er'i$es# ,n$. 's. 7=0C# 310 Phi). /23 B1((8C%# & to the date of em&)oyees
a$ta) or &ayro)) reinstatement. 9hs# it was he)d in G0+'&0 26. P<&.&88&"# A&+.&"#6,
I"'. "/31 -C0A /3+ B2003C%# that fai)re on the &art of the em&)oyer to e;er$ise the
o&tions in the a)ternati'e# the em&)oyer mst &ay the em&)oyee:s sa)aries.
ADA;S NOTE ,n a sitation where =abor Arbiter dismisses $om&)aint and r)es that
dismissa) is 'a)id# bt 7=0C re'erses on a&&ea) and r)es i))e!a) termination# with
reinstatement and ba$?wa!es. 7ote that 9<D 7=0C 80DD0 8F 0D,7-9A9DMD79
,- 789 ,MMDD,A9D=E DPDCH980E. 9he em&)oyer need not immediate)y reinstate
the em&)oyee# who mst first fi)e a Motion for D;e$tion.
W<#+# -<# %+,#+ %* +#&"6-0-#$#"- 35 -<# L03%+ A+3&-#+ &6 +#2#+6#, %" 088#0.. ..
D'en if the order of reinstatement of the =abor Arbiter is re'ersed on a&&ea)# it is
ob)i!atory on the &art of the em&)oyer to reinstate and &ay the wa!es of the
dismissed em&)oyee drin! the &eriod of a&&ea) nti) re'ersa) by the hi!her $ort.
8n the other hand# if the em&)oyee has been reinstated drin! the a&&ea) &eriod and
s$h reinstatement order is re'ersed with fina)ity# the em&)oyee is not re2ired to
reimbrse whate'er sa)ary he re$ei'ed for he is entit)ed to s$h# more so if he
a$ta))y rendered ser'i$es drin! the &eriod. ($o7,ero vs. Philippine 6irlines" Inc."
M*% S$6 M)M B)**1C" cited in #arcia vs. P65" #.$. No. %&M02&" )* +an,ary )**'@
)n (anc!.
EF'#8-&%"
After the =abor Arbiter:s de$ision is re'ersed by a hi!her tribna)# the em&)oyee may
be barred from $o))e$tin! the a$$red wa!es# if it is shown that the de)ay in enfor$in!
the reinstatement &endin! a&&ea) was withot fa)t on the &art of the em&)oyer.
(#arcia vs. Phlippine 6irlines" #.$. No. %&M02&" )* +an,ary )**'@ )n (anc!.
9he test is two.fo)d@ "1% there mst be a$ta) de)ay or the fa$t that the order of
reinstatement &endin! a&&ea) was not e;e$ted &rior to its re'ersa)I and "2% the
de)ay "or non.e;e$tion% mst not be de to the em&)oyer:s n*stified a$t or
omission. (ibid.!
B. LIABILITY OF CORPORATE OFFICERS IS (OINT, UNLESS THERE IS AN EXPRESS
PRONOUNCEMENT OF SOLIDARY LIABILITY
G#"#+0. R4.# 1 Dire$tor or $or&orate offi$er is not &ersona))y )iab)e for the debts of the
$or&oration. Presm&tion of !ood faith &re'ai)s.
EF'#8-&%" Fhen dire$tor or $or&orate offi$er is fond to be in bad faith in the dis$har!e
of the dties and res&onsibi)ities.
C0+$#" D5-D4$0.060 V6. D%$&"/% S030,% S. F#+"0",#1, #-. 0.., G.R. N%. 1IBIH0
N23 (4.5 200EO. -- 9hs# in order to ho)d a a dire$tor &ersona))y )iab)e for debts of the
$or&oration# and ths &ier$e the 'ei) of $or&orate fi$tion# the bad faith or wron!doin! of
the dire$tor mst be estab)ished $)ear)y and $on'in$in!)y. Bad faith is ne'er &resmed.
Bad faith does not $onnote bad *d!ment or ne!)i!en$e. Bad faith im&orts a dishonest
&r&ose. Bad faith means brea$h of a ?nown dty thro!h some i)) moti'e or interest.
Bad faith &arta?es of the natre of frad. ,ne)$tab)y# absent a $)ear and $on'in$in!
showin! of the bad faith in effe$tin! the $)osre of <D=,8- that $an be indi'ida))y
attribted to &etitioner as an offi$er thereof# and withot the &ronon$ement in the
De$ision that she is bein! he)d so)idari)y )iab)e# &etitioner is on)y *oint)y )iab)e.
G#"#+0. R4.# 2 ,f there is a findin! of bad faith# then $or&orate offi$er to be he)d *oint)y
)iab)e with the $om&any for the dama!es.
EF'#8-&%" Fhen De$ision e;&)i$it)y &ronon$es so)idary )iabi)ity.
,n )abor $ases# the $or&orate dire$tors and offi$ers are so)idari)y )iab)e with the
$or&oration for the termination of em&)oyment of em&)oyees done with ma)i$e or in bad
faith. ,ndeed# mora) dama!es are re$o'erab)e when the dismissa) of an em&)oyee is
attended by bad faith or frad or $onstittes an a$t o&&ressi'e to )abor# or is done in a
manner $ontrary to !ood mora)s# !ood $stoms or &b)i$ &o)i$y. 9he term 5bad faith6
$ontem&)ates a 5state of mind affirmati'e)y o&eratin! with frti'e desi!n or with some
moti'e of se)f.interest or wi)) or for )terior &r&ose.6 .. L5"2&. F&6<&"/ E"-#+8+&6#6, I"'. 26.
A",+#6 G. A+&%.0, #- 0.., G.R. N%. 1B1EI7, 01 F#3+40+5 2012
9he -&reme Cort reiterated its r)in! in ,ndstria) Mana!ement ,nt:). De'e)o&ment
Cor& '. 7=0C ">.0. 7o. 101323# May 11# 2000%# and Cara! 's. 7=0C ">.0. 7o.
1+3/(0# A&ri) 2# 2003% that as an e)ementary &rin$i&)e of &ro$edre# the reso)tion of the
$ort in a !i'en isse as embodied in the dis&ositi'e &art of a de$ision or order is the
$ontro))in! fa$tor as to sett)ement of ri!hts of the &arties. ,n the instant $ase#
notwithstandin! the findin! of bad faith on the &art of the mana!ement# the dis&ositi'e
&ortion of the =abor Arbtier:s De$ision did not e;&ress)y mention the so)idary )iabi)ity of
the offi$ers and Board members# in$)din! &etitioner. As s$h# so)idary ob)i!ation $annot
)i!ht)y be inferred. 9here is a so)idary )iabi)ity on)y when the ob)i!ation e;&ress)y so
states# when the )aw so &ro'ides or when the natre of the ob)i!ation so re2ires.
(armen Dy-D,malasa case" ibid.!
E. ON BACKWAGES
F%+ -#+$&"0-&%" #**#'-#, 0*-#+ #**#'-&2&-5 %* RA HI1=
WFULL6 ba$?wa!es to be $om&ted from the time of termination to the time of
a$ta) reinstatement.
5Fith the &assa!e of 0A 131/ whi$h too? effe$t on 21 Mar$h 1(8(# Arti$)e 230( of
the =abor Code was ths amended to in$)de &ayment of 5f))6 ba$?wa!es. 9he
Mer$ry dr! r)e whi$h )imited the award of ba$?wa!es of i))e!a))y dismissed
wor?ers to three "3% years withot ded$tion or 2a)ifi$ation# is no )on!er
a&&)i$ab)e.6 "Ferrer 's. 7=0C%
Basis for $om&tin! ba$?wa!es@ 9he wor?ers are to be &aid their ba$?wa!es fi;ed
as of the time of the dismissa)# i.e.# n2a)ified by any wa!e in$reases or other
benefits that may ha'e been re$ei'ed by their $o.wor?ers. Awards in$)din! sa)ary
differentia)s are not a))owed. "Centra) A4$arrera de 9ar)a$ 's. -am&an!%
(ac5wages to be awarded to an illegally dismissed employee should not,
as a general rule, be diminished or reduced by the earnings derived by him
elsewhere during the period o, illegal dismissal. "Bstamante 's. 7=0C%
M. MIGRANT WORKERS, ILLEGAL RECRUITMENT AND
COMPENSABILITY OF DISABILITY
1. IMPORTANT> O" .&03&.&-5 %* +#'+4&-$#"- 0/#"'5> -<#%+5 %* &$84-#, :"%9.#,/#, 9<#"
&- '0" 3&", -<# 0/#"'5 2&6-V-2&6 .&03&.&-5 %* 8+&"'&80. #$8.%5#+ -- -na$e ,nternationa)
M!mt -er'i$es 's. 7=0C# >0 7o. 1113/3# 2/ Aanary 2001#
T<# -<#%+5 %* &$84-#, :"%9.#,/# 06'+&3#6 -<# :"%9.#,/# %* -<# 0/#"-, S4"0'#, -%
-<# 8+&"'&80., #$8.%5#+ X&%"/, AND NOT THE OTHER WAY AROUND. 9he ?now)ed!e
of the &rin$i&a).forei!n em&)oyer $annot# therefore# be im&ted to its a!ent -na$e.
9here bein! no sbstantia) &roof that -na$e ?new of and $onsented to be bond
nder the 2.year em&)oyment $ontra$t e;tension of the domesti$ he)&er Di'ina# it
$annot be said to be &ri'y thereto. As s$h# it and its 5owner6 $annot be he)d
so)idari)y )iab)e for any of Di'ina:s $)aims arisin! from the 2.year em&)oyment
e;tension.
$.C%$8#"603&.&-5 %* &"G4+5> '%$8.0&"0"- #$8.%5## $46- ,&6'<0+/# 34+,#" %* 8+%%*
-<0- &"G4+5 646-0&"#, %" 3%0+, 6<&8 &6 8+%F&$0-# '046# %* 6-+%:#... -&oses Aya.Ay
's. Ar&a&hi) -hi&&in! and Ma!na Marine# >.0. 7o. 1//3/(# 31 Aanary 2001
7o sffi$ient e'iden$e to &ro'e that the death "stro?e drin! eye o&eration% was
&ro;imate)y $ased by the in*ry sffered drin! his em&)oyment on board MKG Panoria. ,n
order that death benefits may be $)aimed# it mst be &ro'en that the in*ry is the &ro;imate
$ase# or at )east in$reased the ris? of his death. Brden of &roof is &on $)aimant to show
that@ "a% the $ase of Aya.ay:s death was reasonab)y $onne$ted with his wor?I or "b% the
si$?nessKai)ment for whi$h he died is an a$$e&ted o$$&ationa) diseaseI or "$% his wor?in!
$onditions in$reased the ris? of $ontra$tin! the disease for whi$h he died. 8therwise#
death $om&ensation benefits $annot be awarded.
,t is tre that administrati'e and 2asi.*di$ia) bodies )i?e the 7=0C are not bond by the
te$hni$a) r)es of &ro$edre in the ad*di$ation of $ases. H%9#2#+, -<&6 8+%'#,4+0. +4.#
6<%4., "%- 3# '%"6-+4#, 06 0 .&'#"6# -% ,&6+#/0+, '#+-0&" *4",0$#"-0. #2&,#"-&0+5
+4.#6.
NEW CASES
I.."#66> 9<#" ,##$#, 8+#-#F&6-&"/ 0", "%- '%$8#"603.#. (#++5 M. F+0"'&6'%, 26.
B0<&0 S<&88&"/ S#+2&'#6, I"'. 0",P%+ C5"-<&0 C. M#",%10, 0", F+#, O.6#" C+4&6#
L&"#6, L-,., G.R. N%. 1E0=7=, N%2#$3#+ 22, 2010. ..
Petitioner:s i))ness a)ready e;isted when he $ommen$ed his forth $ontra$t of
em&)oyment with res&ondents# hen$e# not $om&ensab)e. >i'en that the em&)oyment of
a seafarer is !o'erned by the $ontra$t he si!ns e'ery time he is rehired and his
em&)oyment is terminated when his $ontra$t e;&ires# &etitioner:s i))ness drin! his
&re'ios $ontra$t with res&ondents is deemed &re.e;istin! drin! his sbse2ent
$ontra$t. 9hat &etitioner was sbse2ent)y rehired by res&ondents des&ite ?now)ed!e
of his sei4re atta$?s does not ma?e the )atter a !arantor of his hea)th.
C%$8#"603.# &.."#66. 8hilippine 0ransmarine Carriers, Inc., Global Navigation,
*td. vs.. <ilvino +. NaJam, G.R. No. 1:#"#H. &ctober 11, $#1#. ..
For an in*ry or i))ness to be d)y $om&ensated nder the terms of the Phi)i&&ine
8'erseas Dm&)oyment Administration.-tandard Dm&)oyment Contra$t "P8DA.-DC%#
there mst be a showin! that the in*ry or i))ness and the ensin! disabi)ity o$$rred
drin! the effe$ti'ity of the em&)oyment $ontra$t. Moreo'er# a)) of these $onditions
mst be satisfied Q 1.% 9he seafarer:s wor? mst in'o)'e the ris?s des$ribed in the
P8DA.-DCI 2.% 9he disease was $ontra$ted as a res)t of the seafarer:s e;&osre to
the des$ribed ris?sI 3.% 9he disease was $ontra$ted within a &eriod of e;&osre and
nder s$h other fa$tors ne$essary to $ontra$t itI and +.% 9here was no notorios
ne!)i!en$e on the &art of the seafarer. -&e$ifi$a))y# with res&e$t to menta) diseases#
the P8DA.-DC re2ires that it mst be de to tramati$ in*ry to the head whi$h did
not o$$r in this $ase. ,n fa$t# res&ondent $)aimed that he be$ame de&ressed de to
the fre2ent 'erba) abse he re$ei'ed from his >erman s&eriors. <owe'er# he fai)ed
to show $on$rete &roof that# if indeed he was sb*e$ted to abse# it dire$t)y res)ted in
his de&ression
3. C%$8#"603&.&-5 %* &"G4+5> +&/<- %* 6#0*0+#+ -% 6##: 6#'%", %8&"&%". -- 7EO.Fi) -hi&
Mana!ement ,n$.# et a) 's. A)fonso 9. 9a)a'era# >.0. 7o. 13/8(+# 1+ 7o'ember 2008I
Car&io.Mora)es. S## 0.6%@ Gir!en -hi&&in! Cor&. et. a). 's. Aess B. Barra2io# >.0. 7o.
138123# 11 A&ri) 200(
9he ri!ht of a seafarer to see? a se$ond o&inion is re$o!ni4ed by the P8DA
-tandard Dm&)oyment Contra$t of 2000# the CBA !o'ernin! the re)ationshi&
between &etitioners and res&ondent# and *ris&rden$e.
F%+ ,&603&.&-5 -% 3# '%$8#"603.# 4",#+ 2000 POEA S-0",0+, E$8.%5$#"- C%"-+0'-,
&- $46- 3# -<# +#64.- %* 0 9%+:-+#.0-#, &"G4+5 %+ &.."#66# 4".&:# -<# 1EEH POEA
S-0",0+, E$8.%5$#"- C%"-+0'- &" 9<&'< &- 906 64**&'&#"- -<0- -<# 6#0*0+#+ 64**#+#,
&"G4+5 %+ &.."#66 ,4+&"/ -<# -#+$ %* <&6 #$8.%5$#"-. 9he 2000 P8DA -tandard
Dm&)oyment Contra$t defines Mwor?.re)ated in*ryM as Min*ry"ies% res)tin! in disabi)ity or
death arisin! ot of and in the $orse of em&)oymentM and Mwor?.re)ated i))nessM as Many
si$?ness res)tin! to disabi)ity or death as a res)t of an o$$&ationa) disease )isted nder
-e$tion 32.A of this $ontra$t with the $onditions set therein satisfied.M ,n the $ase at bar# a
reasonab)e $onne$tion between the res&ondentNs in*ries and the natre of his *ob has
been estab)ished and hen$e# a&&ro'ed &ermanent &artia) disabi)ity "fi))erKmeta) we)der 's.
$hroni$ ba$? &ain%
7. S#'-&%" 10, R#843.&' A'- N%. B072 %" 3-$%"-< '08 %" 30':90/#6 *%+ &..#/0. ,&6$&660.
&6 4"'%"6-&-4-&%"0. &"6%*0+ 06 &- &6 2&%.0-&2# %* -<# #D40. 8+%-#'-&%" %* .096 0",
,&6'+&$&"0-%+5 0/0&"6- $&/+0"- 9%+:#+6 9&-< .%"/--#+$ '%"-+0'-6. -- la,dio S.
Dap vs. Thenamaris Ship;s /ana.ement and Intermare /aritime 6.encies" Inc." #.$. No.
%('21)" /ay 1*" )*%%.
Petitioner Ea& was em&)oyed as an e)e$tri$ian for res&ondent:s 'esse) nder a 12.month
$ontra$t. <e was fond to be i))e!a))y terminated with nine months remainin! on his
$ontra$t term. 9he Cort of A&&ea)s "CA% awarded &etitioner sa)aries for three months as
&ro'ided nder -e$tion 10 of 0e&b)i$ A$t 7o. 80+2. 8n $ertiorari# the -&reme Cort
re'ersed the CA and de$)ared that &etitioner was entit)ed to his sa)aries for the f))
ne;&ired &ortion of his $ontra$t.
9he Cort has &re'ios)y de$)ared in Serrano v. #allant /aritime Services" Inc.
()**'! that the $)ase 5or for three months for every year of the ,ne=pired term"
whichever is less6 &ro'ided in the /th &ara!ra&h of -e$tion 10 of 0.A. 7o. 80+2 is
n$onstittiona) for bein! 'io)ati'e of the ri!hts of 8'erseas Fi)i&ino For?ers "8FFs% to
e2a) &rote$tion of the )aws. 9he sb*e$t $)ase $ontains a ss&e$t $)assifi$ation in that# in
the $om&tation of the monetary benefits of fi;ed.term em&)oyees who are i))e!a))y
dis$har!ed# it im&oses a 3.month $a& on the $)aim of 8FFs with an ne;&ired &ortion of
one year or more in their $ontra$ts# bt none on the $)aims of other 8FFs or )o$a) wor?ers
with fi;ed.term em&)oyment. 9he sb*e$t $)ase sin!)es ot one $)assifi$ation of 8FFs
and brdens it with a &e$)iar disad'anta!e. Moreo'er# the sb*e$t $)ase does not state
or im&)y any definiti'e !o'ernmenta) &r&oseI hen$e# the same 'io)ates not *st
&etitioner:s ri!ht to e2a) &rote$tion# bt a)so his ri!ht to sbstanti'e de &ro$ess nder
-e$tion 1# Arti$)e ,,, of the Constittion.
7.1 D%'-+&"# %* O8#+0-&2# F0'-> "%- 088.&#, 06 0 $0--#+ %* #D4&-5 0", *0&+ 8.05. Y08 26.
T<#"0$0+&6 S<&8;6 M/$- '06#, 648+0. .. ,n de$idin! to award &etitioner his sa)aries for
the entire ne;&ired &ortion of his $ontra$t# the -&reme Cort re*e$ted the a&&)i$ation
of the o&erati'e fa$t do$trine. As an e;$e&tion to the !enera) r)e# the do$trine a&&)ies
on)y as a matter of e2ity and fair &)ay. ,t re$o!ni4es that the e;isten$e of a statte &rior
to a determination of n$onstittiona)ity is an o&erati'e fa$t and may ha'e
$onse2en$es whi$h $annot a)ways be i!nored. 9he do$trine is a&&)i$ab)e when a
de$)aration of n$onstittiona)ity wi)) im&ose an nde brden on those who ha'e re)ied
on the in'a)id )aw. 9his $ase sho)d not be in$)ded in the aforementioned e;$e&tion.
After a))# it was not the fa)t of &etitioner that he )ost his *ob de to an a$t of i))e!a)
dismissa) $ommitted by res&ondents. 9o r)e otherwise wo)d be ini2itos to &etitioner
and other 8FFs# and wo)d# in effe$t# send a wron! si!na) that &rin$i&a)sKem&)oyers and
re$ritmentKmannin! a!en$ies may 'io)ate an 8FF:s se$rity of tenre whi$h an
em&)oyment $ontra$t embodies and a$ta))y &rofit from s$h 'io)ation based on an
n$onstittiona) &ro'ision of )aw.
=. I..#/0. +#'+4&-$#"-> #.#$#"-6 P#%8.# %* -<# P<&.&88&"#6 26. T#+#6&-0 LT#66&#M
L0%/%, G.R. N%. 1IH2H7, (0"40+5 10, 2011.
0e$ritment and &)a$ement refers to the a$t of $an'assin!# en)istin!# $ontra$tin!#
trans&ortin!# ti)i4in!# hirin! or &ro$rin! wor?ers# and in$)des referra)s# $ontra$t ser'i$es#
&romisin! or ad'ertisin! for em&)oyment# )o$a))y or abroad# whether for &rofit or not. Fhen
a &erson or entity# in any manner# offers or &romises for a fee em&)oyment to two or more
&ersons# that &erson or entity sha)) be deemed en!a!ed in re$ritment and &)a$ement.
Arti$)e 38"a% of the =abor Code# as amended# s&e$ifies that re$ritment a$ti'ities
nderta?en by non.)i$ensees or non.ho)ders of athority are deemed i))e!a) and &nishab)e
by )aw. And when the i))e!a) re$ritment is $ommitted a!ainst three or more &ersons#
indi'ida))y or as a !ro&# then it is deemed $ommitted in )ar!e s$a)e and $arries with it
stiffer &ena)ties as the same is deemed a form of e$onomi$ sabota!e. Bt to &ro'e i))e!a)
re$ritment# it mst be shown that the a$$sed# withot bein! d)y athori4ed by )aw# !a'e
$om&)ainants the distin$t im&ression that he had the &ower or abi)ity to send them abroad
for wor?# s$h that the )atter were $on'in$ed to &art with their money in order to be
em&)oyed. ,t is im&ortant that there mst at )east be a &romise or offer of an em&)oyment
from the &erson &osin! as a re$riter# whether )o$a))y or abroad.
N. PROCEDURES AND REMEDIES
1. T##:05 S<&88&"/ 26. C%"'<0, , GR 1B=7H3, 22 F#3 2012 -- FOUR YEAR PRESCRIPTIVE
PERIOD FOR TERMINATION CASES.
58ne:s em&)oyment# &rofession# trade or $a))in! is a 5&ro&erty ri!ht#6 within &rote$tion of a
$onstittiona) !aranty of de &ro$ess of )aw. C)ear)y then# when one is arbitrari)y and n*st)y
de&ri'ed of his *ob or means of )i'e)ihood# the a$tion institted to $ontest the )e!a)ity of one:s
dismissa) from em&)oyment $onstittes# in essen$e# an a$tion &redi$ated 5&on an in*ry to the
ri!hts of the &)aintiff#6 as $ontem&)ated nder Art. 11+1 of the 7ew Ci'i) Code# whi$h mst be
bro!ht within F8H0 "+% EDA0-6 . <en$e this is the reason why termination $ases ha'e a
&res$ri&ti'e &eriod of for "+% years# 'i4@ in*ry &on ri!hts of &)aintiff nder art 11+1 of Ci'i)
Code
2. PEOPLEUS BROADCASTING SERVICE !BOMBO RADYO PHILS., INC.), 's. THE
SECRETARY OF THE DEPARTMENT OF LABOR AND EMPLOYMENT "G.R. N%. 1IEH=2,
M0+'< H, 2012)> Gurisdiction o, ;&*) on its visitorial power
9he determination of the e;isten$e of an em&)oyer.em&)oyee re)ationshi& by the D8=D
mst be res&e$ted. T<# #F80",#, 2&6&-%+&0. 0", #"*%+'#$#"- 8%9#+ %* -<# DOLE
/+0"-#, 35 RA II30 9%4., 3# +#",#+#, "4/0-%+5 &* -<# 0..#/#, #$8.%5#+ '%4.,, 35
-<# 6&$8.# #F8#,&#"- %* ,&684-&"/ -<# #$8.%5#+-#$8.%5## +#.0-&%"6<&8, *%+'# -<#
+#*#++0. %* -<# $0--#+ -% -<# NLRC. 9he Cort issed the de$)aration that at )east a
&rima fa$ie showin! of the absen$e of an em&)oyer.em&)oyee re)ationshi& be made to
ost the D8=D of *risdi$tion. Bt it is &re$ise)y the D8=D that wi)) be fa$ed with that
e'iden$e# and it is the D8=D that wi)) wei!h it# to see if the same does s$$essf))y
refte the e;isten$e of an em&)oyer.em&)oyee re)ationshi&.
,f the D8=D ma?es a findin! that there is an e;istin! em&)oyer.em&)oyee re)ationshi&# it
ta?es $o!ni4an$e of the matter# to the e;$)sion of the 7=0C. 9he D8=D wo)d ha'e no
*risdi$tion on)y if the em&)oyer.em&)oyee re)ationshi& has a)ready been terminated# or it
a&&ears# &on re'iew# that no em&)oyer.em&)oyee re)ationshi& e;isted in the first &)a$e.
9o re$a&it)ate@
a. ,f a $om&)aint is bro!ht before the D8=D to !i'e effe$t to the )abor standards
&ro'isions of the =abor Code or other )abor )e!is)ation# and there is a findin! by the
D8=D that there is an e;istin! em&)oyer.em&)oyee re)ationshi&# the D8=D e;er$ises
*risdi$tion to the e;$)sion of the 7=0C.
b. ,f the D8=D finds that there is no em&)oyer.em&)oyee re)ationshi&# the *risdi$tion is
&ro&er)y with the 7=0C.
$. ,f a $om&)aint is fi)ed with the D8=D# and it is a$$om&anied by a $)aim for
reinstatement# the *risdi$tion is &ro&er)y with the =abor Arbiter# nder Art. 213"3% of
the =abor Code# whi$h &ro'ides that the =abor Arbiter has ori!ina) and e;$)si'e
*risdi$tion o'er those $ases in'o)'in! wa!es# rates of &ay# hors of wor?# and other
terms and $onditions of em&)oyment# if a$$om&anied by a $)aim for reinstatement.
d. ,f a $om&)aint is fi)ed with the 7=0C# and there is sti)) an e;istin! em&)oyer.em&)oyee
re)ationshi&# the *risdi$tion is &ro&er)y with the D8=D. 9he findin!s of the D8=D#
howe'er# may sti)) be 2estioned thro!h a &etition for $ertiorari nder 0)e 1/ of the
0)es of Cort.
3. RE?UISITES TO PERFECT AN APPEAL
!M0+5 A3&/0&.;6 F%%, S#+2&'#6 I"'. 26. CA, 0E M05 200=)
Mst be made within 10 $a)endar days from re$ei&t of de$isionKaward
Proof of &ayment of the re2ired a&&ea) bond
A$$om&anied by a Memorandm of A&&ea)
Postin! of a $ash or srety bond e2i'a)ent to the monetary award )ess dama!es and
attorney:s fees.
CASES
3.1 A88#0.> 8%6-&"/ %* A88#0. B%",> G%2#+"$#"-;6 #F#$8-&%" *+%$ -<# 60$#. B0"0<09
B+%0,'06-&"/ C%+8%+0-&%" 26. C05#-0"% PACAN0 III, #- 0., G.R. No. 1!17!%, May %#,
$#11 . -- 0es&ondents are s&er'isory and ran? and fi)e em&)oyees of the DPF>.,)i!an City
radio station whi$h is owned by &etitioner Banahaw Broad$astin! Cor&oration "BBC%.
0es&ondents fi)ed a $om&)aint for i))e!a) dismissa)# nfair )abor &ra$ti$e# and reimbrsement
of n&aid Co))e$ti'e Bar!ainin! A!reement "CBA% benefits a!ainst &etitioner. 9he =abor
Arbiter rendered a de$ision orderin! &etitioner BBC to &ay the money $)aims. 8n a&&ea) to
the 7=0C# &etitioner BBC a'erred that sin$e it is who))y owned by the 0e&b)i$ of the
Phi)i&&ines# it need not &ost an a&&ea) bond. 9he 7=0C dismissed the a&&ea) of BBC for
non.&erfe$tion. 9he Cort of A&&ea)s affirmed the 7=0C. 9he -&reme Cort# in sstainin!
the CA# he)d that as a !enera) r)e# -<# /%2#+"$#"- 0", 0.. -<# 0--0'<#, 0/#"'&#6 9&-<
"% .#/0. 8#+6%"0.&-5 ,&6-&"'- *+%$ -<# *%+$#+ 0+# #F#$8- *+%$ 8%6-&"/ 088#0. 3%",6.
9he rationa)e for the a&&ea) bond is to &rote$t the &resm&ti'e *d!ment $reditor a!ainst the
inso)'en$y of the &resm&ti'e *d!ment debtor. W<#" -<# S-0-# .&-&/0-#6, &- &6 "%- +#D4&+#,
-% 84- 48 0" 088#0. 3%", 3#'046# &- &6 8+#64$#, -% 3# 0.9056 6%.2#"-. 9his e;em&tion#
howe'er# does not# as a !enera) r)e# a&&)y to !o'ernment.owned and $ontro))ed
$or&orations ">8CCs% for the reason that the )atter has a &ersona)ity distin$t from its
shareho)ders. ,n this $ase# BBC# tho!h owned by the !o'ernment# is a $or&oration with a
&ersona)ity distin$t from the 0e&b)i$ or any of its a!en$ies or instrmenta)ities# and
therefore do not &arta?e in the )atter:s e;em&tion from the &ostin! of a&&ea) bonds.
3.2 VERIFICATION AND CERTIFICATION>
E**#'- %* *0&.4+# -% 6&/". E$$0"4#. B0306, D0"&.% T. B0"0/, A+-4+% V. V&..0+&",
S+., E,9&" (02&#+, S0",& B#+$#%, R#F A..#60, M0F&$% S%+&0"%, (+., A+6#"&%
E6-%+D4#, A", F#.&F3#+-% A"0G0%, 26. L%+#"1% S<&88&"/ C%+8%+0-&%", G.R. N%.
1BH0E1, D#'#$3#+ 1=, 2010.-- A &etition satisfies the forma) re2irements on)y with
re!ard to those who si!ned the &etition# bt not the $o.&etitioners who did not si!n nor
athori4e the other &etitioners to si!n it on their beha)f. ,n the $ase at bar# on)y se'en
"3% of the nine &etitioners si!ned the 'erifi$ation and $ertifi$ation a!ainst form
sho&&in!. 9hs# the other &etitioners who did not si!n $annot be re$o!ni4ed as
&etitioners and ha'e no )e!a) standin! before the Cort. 9he &etition sho)d be
dismissed otri!ht with res&e$t to s$h non.$onformin! &etitioners.
W<% '0" 6&/" *%+ -<# '%$80"5 9&-<%4- "##, %* 3%0+, +#6%.4-&%". S%4-< C%-030-%
C%$$4"&'0-&%"6 C%+8%+0-&%" 0", G0420&" (. B#"1%"0" 26. H%". P0-+&'&0 A. S-%.
T%$06, #- 0., G.R. N%. 1I332H, D#'#$3#+ 1=, 2010. 6
T<# *%..%9&"/ '0" 6&/" -<# 2#+&*&'0-&%" 0", '#+-&*&'0-&%" 0/0&"6- *%+4$
6<%88&"/ 9&-<%4- "##, %* 0 3%0+, +#6%.4-&%" !1) -<# C<0&+8#+6%" %* -<#
B%0+, %* D&+#'-%+6, !2) -<# P+#6&,#"- %* 0 '%+8%+0-&%", !3) -<# G#"#+0.
M0"0/#+ %+ A'-&"/ G#"#+0. M0"0/#+, !7) P#+6%""#. O**&'#+, 0", !=) 0"
E$8.%5$#"- S8#'&0.&6- &" 0 .03%+ '06#.
Fhi)e the abo'e $ases do not &ro'ide a $om&)ete )istin! of athori4ed si!natories# the
determination of the sffi$ien$y of the athority was done on a $ase to $ase basis. ,n
the fore!oin! $ases the athority of said $or&orate re&resentati'es to si!n the
'erifi$ation or $ertifi$ate is *stified in their bein! in a &osition to 'erify the trthf)ness
and $orre$tness of the a))e!ations in the &etition. <owe'er# the better &ro$edre is sti))
to a&&end a board reso)tion to the $om&)aint or &etition to ob'iate 2estions re!ardin!
the athority of the si!natory of the 'erifi$ation and $ertifi$ation.
3.3 M#,&0-&%". I"64.0+ H%-#. E$8.%5##6 U"&%"-NFL 26. W0-#+*+%"- I"64.0+ H%-#. D020%,
G.R. No. 1!H#H#'H1, <eptember $$, $#1# . -- Pro$edra))y# the first ste& to sbmit a $ase for
mediation is to fi)e a noti$e of &re'enti'e mediation with the 7CMB. ,t is on)y after this ste&
that a sbmission a!reement may be entered into by the &arties. -e$tion 3# 0)e ,G of the
7CMB Mana) of Pro$edre &ro'ides who may fi)e a noti$e of &re'enti'e mediationQon)y a
$ertified or d)y re$o!ni4ed bar!ainin! a!ent. C))o admitted that the $ase was fi)ed not by
the Hnion bt by indi'ida) members thereof. C)ear)y# the 7CMB had no *risdi$tion to
entertain the noti$e fi)ed before it.
3.7 E$8.%5## $%"#5 '.0&$> 8+#6'+&8-&%". P<&.&88&"# L%"/ D&6-0"'# T#.#8<%"# C%$80"5
!PLDT) 26. R%3#+-% R. P&"/%., G.R. No. 1"$7$$, <eptember ", $#1# . -- 9he =abor Code
&ro'ides that money $)aims arisin! from em&)oyer.em&)oyee re)ations sha)) be fi)ed within 3
years from the time the $ase of a$tion a$$resI otherwise they sha)) be barred
7. RESIGNATIONS, STRAINED RELATIONS
IMPORTANT CASE UY VS. CENTRO CERAMICA, 1E OCT 2011
RESIGNATION J ,t is the 'o)ntary a$t of em&)oyees who are $om&e))ed by reasons to
disasso$iate themse)'es fro their em&)oyment. ,t mst be done with intention of re)in2ishin! the
offi$e# a$$om&anied by the a$t of abandonment. Fhere e'iden$e re'ea)s otherwise# theni))e!a)
dismissa).
STRAINED RELATIONS C Fhere reinstatement is no )on!er desirab)e or 'iab)e in 'iew of
strained re)ations between the &arties# then se&aration &ay is an a$$e&tab)e a)terati'e to
reinstatement. Com&tation@ one month for e'ery year of ser'i$e# $om&ted from date of hirin!
nti) fina)ity of the De$ision findin! for i))e!a) termination.
=. IMPORTANT CASE ON ?UITCLAIMS GOODRICH VS. ATIVO, 01 FEB 2010.
GENERAL RULE Corts )oo? with disfa'or on 2it$)aims and re)eases made by em&)oyees
who ha'e been &ressred into si!nin! them by ns$r&)os em&)oyers see?in! to e'ade )e!a)
res&onsibi)ities and frstrate *st $)aims fo em&)oyees.
EXCEPTION <owe'er# 2it$)aims wi)) be $onsidered as 'a)id and bindin! if the em&)oyer is
ab)e to &ro'e the fo))owin!@
Dm&)oyee e;e$tes the 2it$)aim 'o)ntari)y
9here is no frad or de$eit on the &art of the em&)oyer
Consideration for the 2it$)aim is $redib)e and reasonab)e
Contra$t is not $ontrary to )aw# &b)i$ order# &b)i$ &o)i$y# mora)s or !ood $stoms or
&re*di$ia) to a third &erson with a ri!ht re$o!ni4ed by )aw.
,n this $ase# em&)oyer was ab)e to &ro'e a)) of the abo'e. 9he $onsideration is not !ross)y
inade2ate 'is.Z.'is what they sho)d re$ei'e in f)). 9he differen$e in the anonts e;&e$ted
from those that were re$ei'ed may be $onsidered as a fair and reasonab)e bar!ain on the &art
of the both &arties.
6. E06-#+" M#,&-#++0"#0" M0+&-&$# L-,., #- 0.. 26. E6-0"&6.0% S4+&%, #- 0.. G.R. No. 1H$1%,
+ugust $%, $#1$. 6 N*RC2s Gurisdiction, 8robationary )mployees, <ecurity o, 0enure
I664# F<D9<D0 80 789 9<D 7=0C <A- AH0,-D,C9,87 98 0DG,DF 87 APPDA=
CA-D- DDC,DDD BE 9<D P8DA 87 MA99D0- PD09A,7,7> 98 D,-C,P=,7A0E AC9,87-
A>A,7-9 P0,GA9D 0D-P87DD79-.
A"69#+ 7=0C has no *risdi$tion. Petitioners: adamant insisten$e that the 7=0C sho)d ha'e
a&&e))ate athority o'er the P8DA:s de$ision in the dis$i&)inary a$tion be$ase their $om&)aint
a!ainst res&ondents was fi)ed in 1((3 was nwarranted. A)tho!h 0e&b)i$ A$t 7o. 80+2#
thro!h its -e$tion 10# transferred the ori!ina) and e;$)si'e *risdi$tion to hear and de$ide
money claims in'o)'in! o'erseas Fi)i&ino wor?ers from the P8DA to the =abor Arbiters# -<# .09
,&, "%- +#$%2# *+%$ -<# POEA -<# %+&/&"0. 0", #F'.46&2# G4+&6,&'-&%" -% <#0+ 0", ,#'&,#
0.. ,&6'&8.&"0+5 0'-&%" '06#6 0", %-<#+ 68#'&0. '06#6 0,$&"&6-+0-&2# &" '<0+0'-#+ &"2%.2&"/
64'< 9%+:#+6. ,t is $)ear to s# therefore# that the 7=0C had no a&&e))ate *risdi$tion to re'iew
the de$ision of the P8DA in dis$i&)inary $ases in'o)'in! o'erseas $ontra$t wor?ers.9he ob'ios
intent of 0e&b)i$ A$t 7o. 80+2 was to ha'e the P8DA fo$s its efforts in reso)'in! a))
administrati'e matters affe$tin! o'erseas wor?ers.
-e$tion 28. +,risdiction of the PGE6. J 9he P8DA sha)) e;er$ise
ori!ina) and e;$)si'e *risdi$tion to hear and de$ide@
"a% a)) $ases# whi$h are administrati'e in $hara$ter# in'o)'in! or
arisin! ot of 'io)ations or r)es and re!)ations re)atin! to )i$ensin! and
re!istration of re$ritment and em&)oyment a!en$ies or entitiesI and
!3) ,&6'&8.&"0+5 0'-&%" '06#6 0", %-<#+ 68#'&0. '06#6, 9<&'<
0+# 0,$&"&6-+0-&2# &" '<0+0'-#+, &"2%.2&"/ #$8.%5#+6,
8+&"'&80.6, '%"-+0'-&"/ 80+-"#+6 0", F&.&8&"% $&/+0"- 9%+:#+6.
!. M0"4#. D. Y"/6%", (+., !&" <&6 '080'&-5 06 -<# L&D4&,0-%+ %* ARCAM R C%., I"'.) 26.
P<&.&88&"# N0-&%"0. B0":. G.R. No. 1!11%$, +ugust 1, $#1$. 6 *ien on unpaid wages/
As to &etitionerNs ar!ment on the ri!ht of first &referen$e as re!ards n&aid wa!es# the Cort
has e)$idated in the $ase of Development -an4 of the Philippines v. N5$ that a distin$tion
sho)d be made between a &referen$e of $redit and a )ien. A &referen$e a&&)ies on)y to $)aims
whi$h do not atta$h to s&e$ifi$ &ro&erties. A )ien $reates a $har!e on a &arti$)ar &ro&erty.
T<# +&/<- %* *&+6- 8+#*#+#"'# 06 +#/0+,6 4"80&, 90/#6 +#'%/"&1#, 35 A+-&'.# 110 %* -<#
L03%+ C%,#, ,%#6 "%- '%"6-&-4-# 0 .&#" %" -<# 8+%8#+-5 %* -<# &"6%.2#"- ,#3-%+ &" *02%+ %*
9%+:#+6. I- &6 34- 0 8+#*#+#"'# %* '+#,&- &" -<#&+ *02%+, 0 8+#*#+#"'# &" 088.&'0-&%". ,t is a
method ado&ted to determine and s&e$ify the order in whi$h $redits sho)d be &aid in the fina)
distribtion of the &ro$eeds of the inso)'entNs assets. ,t is a ri!ht to a first &referen$e in the
dis$har!e of the fnds of the *d!ment debtor. Conse2ent)y# the ri!ht of first &referen$e for
n&aid wa!es may not be in'o?ed in this $ase to n))ify the fore$)osre sa)es $ond$ted
&rsant to P7B Ns ri!ht as a se$red $reditor to enfor$e its )ien on s&e$ifi$ &ro&erties of its
debtor# A0CAM.
". P0+: H%-#., #- 0.. 26. M0"%.% S%+&0"%, #- 0.. G.R. N%. 1I111B. S#8-#$3#+ 10, 2012. C
P&#+'&"/ '%+8%+0-# 2#&.> L&03&.&-5 %* '%+8%+0-# %**&'#+6> M%+0. 0", #F#$8.0+5 ,0$0/#6>
9o disre!ard the se&arate *ridi$a) &ersona)ity of a $or&oration# the wron!doin! mst be
estab)ished $)ear)y and $on'in$in!)y. ,t $annot be &resmed.
,n the $ase at bar# res&ondents tter)y fai)ed to &ro'e by $om&etent e'iden$e that Par? <ote)
was a mere instrmenta)ity# a!en$y# $ondit or ad*n$t of Br!os# or that its se&arate $or&orate
'ei) had been sed to $o'er any frad or i))e!a)ity $ommitted by Br!os a!ainst the
res&ondents. A$$ordin!)y# Par? <ote) and Br!os $annot be $onsidered as one and the same
entity# and Par? <ote) $annot be he)d so)idary )iab)e with Br!os.
7onethe)ess# a)tho!h the $or&orate 'ei) between Par? <ote) and Br!os $annot be &ier$ed# it
does not ne$essari)y mean that Per$y and <arbtt are e;em&t from )iabi)ity towards
res&ondents. V#+&.5, 0 '%+8%+0-&%", 3#&"/ 0 G4+&,&'0. #"-&-5, $05 0'- %".5 -<+%4/< &-6
,&+#'-%+6, %**&'#+6 0", #$8.%5##6. O3.&/0-&%"6 &"'4++#, 35 -<#$, 9<&.# 0'-&"/ 06
'%+8%+0-# 0/#"-6, 0+# "%- -<#&+ 8#+6%"0. .&03&.&-5 34- -<# ,&+#'- 0''%4"-03&.&-5 %* -<#
'%+8%+0-&%" -<#5 +#8+#6#"-.
<owe'er# '%+8%+0-# %**&'#+6 $05 3# ,##$#, 6%.&,0+&.5 .&03.# 9&-< -<# '%+8%+0-&%" *%+ -<#
-#+$&"0-&%" %* #$8.%5##6 &* -<#5 0'-#, 9&-< $0.&'# %+ 30, *0&-<. ,n the &resent $ase# the
)ower tribna)s nanimos)y fond that Per$y and <arbtt# in their $a&a$ity as $or&orate offi$ers
of Br!os# a$ted ma)i$ios)y in terminatin! the ser'i$es of res&ondents withot any 'a)id !rond
and in order to s&&ress their ri!ht to se)f.or!ani4ation.
E. C+#9 0", S<&8 M0"0/#$#"- I"-#+"0-&%"0. I"'. 0", S0.#"0, I"'. Gs. (&"0 T. S%+&0 - G.R. N%.
1I=7E1. D#'#$3#+ 10, 2012 C D#0-< B#"#*&-6
-eaman in*red at sea# re@ brned )e! on hot en!ine. Fas re&atriated to Phi)i&&ines bt fai)ed to
$om&)y with medi$a) $he$?.& within three days from re&atriation. -eaman died after a month of
5&nemonia6. C)aim for $om&ensabi)ity@ Case of death was brn in*ry whi$h )ed to tetans
and tri!!erin! &nemonia.
I664# ,s the death $om&ensab)eL
A"69#+ 7o. 9he r)e is that# in )abor $ases# sbstantia) e'iden$e or s$h re)e'ant e'iden$e as
a reasonab)e mind mi!ht a$$e&t as sffi$ient to s&&ort a $on$)sion is re2ired. 9he oft.
re&eated r)e is that whoe'er $)aims entit)ement to the benefits &ro'ided by )aw sho)d
estab)ish his or her ri!ht thereto by sbstantia) e'iden$e. -bstantia) e'iden$e is more than a
mere s$inti))a. Any de$ision based on nsbstantiated a))e!ations $annot stand as it wi)) offend
de &ro$ess.
,n ar!in! for the $om&ensabi)ity of SosimoNs death# res&ondent $)aims that the brn in*ry
sffered by him on board /.N. 6pollo bro!ht abot the tetans infe$tion whi$h e'enta))y )ed to
&nemonia $asin! his death. 9he Cort# howe'er# finds diffi$)ty in a$$e&tin! this.
(1