LABOR ARBITRATION

&
Social Legislations
By: Atty. SONNY G. MATULA
National President, Federation of Free Workers
Former Commissioner, Social Security Commission;
Former Executive Director V, Presidential Anti-Graft
Commission;
Law Lecturer, UPH-College of Law
UM-College of Law and MLQU-School of Law;
UE LAW CENTER
JUNE 18, 2016
 Dreamers!
The dreamers of the
The dreamers Night forget their
of the day dreams after the woke
& the Up in the morning
dreamers of The dreamers of the day
The night Pursue their dreams
with open eyes.
- Lawrence of Arabia
 Law & Jurisprudence

Law
Constitution, legislative
acts, administrative
issuances
Jurisprudence
Decisions of the SC
ILO Convention Part of Law of the
land

In the recent case of The Heritage

Hotel Manila vs. National Union of
Hotel, Restaurant and Allied
Industries (G.R.178296, January
12,2011), the court treats ILO
Convention No 87 with high
respect as a binding law.
 Sources of Labor Law
Primary;
Secondary; or
Auxiliary.
The primary sources of the
laws
(1) the Constitution
(2) legislation passed by
congress
(3) decisions of the Supreme
Court; (4) implementing rules and
regulations;
(5) decisions of the quasi-judicial
bodies
 Secondary sources
(1) opinion of the Labor Secretary
or Justice Secretary; (2) reports,
debates, hearings conducted by
Congress; (3) labor law reviews;
(4) labor law and social legislation
textbooks; (5) opinion of legal
luminaries; and (6) foreign laws
and jurisprudence.
 Auxiliary Sources
usages, procedures and
agreements that are common to
particular enterprise and specific
groups of workers (i.e. collective
bargaining agreements,
constitutions and by- laws of
various labor unions and
grievance settlements).
 The Constitution is
Supreme
In the hierarchy of laws, the
Constitution is supreme. No branch or
office of the government may exercise
its powers in any manner inconsistent
with the Constitution, regardless of the
existence of any law that supports
such exercise. The Constitution cannot
be trumped by any other law. All laws
must be read in light of the
Constitution. Any law that is
inconsistent with it is a nullity.
A law that was already
declared unconstitutional
remains as such
Thus, when a law or a provision of law
is null because it is inconsistent with
the Constitution, the nullity cannot be
cured by reincorporation or
reenactment of the same or a similar
law or provision. A law or provision of
law that was already declared
unconstitutional remains as such
unless circumstances have so hanged
as to warrant a reverse conclusion.
(Sameer vs Cabiles, August 5, 2014).
 A society that cares
Years ago, a young mother was making her way across the hills
of South Wales, carrying her tiny baby in her arms, when she
was overtaken by a blinding blizzard. She never reached her
destination and when the blizzard had subsided her body was
found by searchers beneath a mound of snow. But they
discovered that before her death, she had taken off all her
outer clothing and wrapped it about her baby. When they
unwrapped the child, to their great surprise and joy, they found
he was alive and well. She had mounded her body over his and
given her life for her child, proving the depths of her mother
love. Years later that child, David Lloyd George, grown to
manhood, became prime minister of Great Britain, and, without
doubt, one of Englands greatest statesman.
James S. Hewett, Illustrations Unlimited, Tyndale, 1972, p. 375.
 Transformation or
incorporation
Under the 1987 Constitution,
international law can become part
of the sphere of domestic law
either by transformation or
incorporation. The
transformation method requires
that an international law be
transformed into a domestic law
through a constitutional
mechanism such as local
 Incorporation
The incorporation method
applies when, by mere
constitutional declaration,
international law is deemed to
have the force of domestic law.
(Pharmaceutical and Health Care
Association of the Philippines v.
Duque III, 535 SCRA 265 [2007])
 Pacta Sunt Servanda
The pacta sunt servanda rule is
the cornerstone of the law of
treaties.
Fulfillment of treaty obligations is
essential to stable international
relations and promote trust and
cooperation between
States.Deutsche Bank AG Manila
Branch vs. CIR ( G.R. No. 18850
 Social Legislation
Social Legislation is broader than
Labor Laws. It also includes laws
that provide particular kinds of
protection or benefits to society
or segments thereof in furtherance
of social justice -- i.e. Social
Security law, health care law,
agrarian reform law,And the law on
migrant workers.
 Bar Question
Is there a distinction between
labour legislation and social
Legislation? (1995)

Labour Laws limited in scope,

deals with rights and duties of
employees and employers
Social legislation more
encompassing
 Labour

Physical or
What is mental exertion
Labour?
Necessary to
Produce goods/
deliver services
Broader concept: Labor may include
the labor force who are employed or
those who are willing work but are
temporarily unemployed.
Social Justice
He who has less
in life should
have more in
law!

- Ramon
Magsaysay
 Social Justice
Calalang vs
Williams, Humanization Equalization
70Phils 726 of laws S&E forces
Social justice is the promotion of the welfare of all
the people, the adoption by the government of measures
calculated to insure economic stability of all the
component elements of society thru the maintenance of
proper economic equilibrium in the interrelations of the
members of the community, constitutionally, thru the
adoption of measures legally justifiable, or extra-
constitutionally, thru the exercise of the power of the
government, based on the time-honored principle of salus
populi est suprema lex.
 The social justice
principles of labor
law outweigh or
render inapplicable
the civil law
doctrine of unjust
enrichment

- Justice Carpio Morales

in an en banc decision (Garcia &
 Social justice does
allow oppression to
employer
After all, in the eyes of all fair minded
men (and women), injustice to the
more affluent and fortunate sectors of
society cannot be less condemnable
and reprehensible, and should be
avoided as much as injustice to labor
and the poor, SC said in Federation of
Free Farmers vs. Court of Appeals (107
SCRA 352, 362-3, September 10, 1981)
 Labor Standards
Employer
Terms,
Set out Must
Conditions &
the minimum Provide or
benefits
Comply with

to which workers are entitled

as a matter of right.
 Minimum Standards Workers
are entitled to as a matter of
right:
Minimum wage Paternity leave
Holiday pay Parental leave for
Overtime pay solo parent
Night shift Leave for victims
differential against women
Service charges and children
Service incentive
13th month pay
leave Separation pay
Maternity leave Retirement pay
Social security and welfare
lesgislation

Social security (RA

8282)
Employees
Compensation
Philhealth

Pag-ibig
 Labor Relations

define That govern

As well as
Status, Individual &
Institutional
rights & Collective
mechanism
duties interactions

between employers, employees and

their representatives.
 Labor Code

What is Codification into

Labor Code? One volume of 60
PD 442, as pieces of law
amended
8 hr law,
min wage law,
termination law
 Labor Code
Preliminary Title Book 4: Health
Book 1: Pre- Safety and Social
employment Benefits
Book 2: Human Book 5: Labor
Resource Devt Relations
Book 3: Book 6: Post
Conditions of Employment
Employment Book 7:
Transitory and
Final Provisions
ILO Core Labor
Standards
the prohibition of slavery
and compulsory labor
(C29; C105),
the elimination of
discrimination
(C100;C111),
the prohibition of
exploitative child labor
(C182),
ILO CONVENTION # 102
(1952)
THE SOCIAL SECURITY (MINIMUM
STANDARDS)
Identifies nine (kinds) of benefits
Medical care - Employment injury
Sickness - old age
Unemployment- family benefits
Maternity - survivors benefits
invalidity
 Basic
Constitutional
Rights
1.Right to organize;
Article XIII 2.Right to CB & Nego;
Section 3 3.Peaceful concerted
1987 Consti- activities, strike;
tion
4.Security of tenure;
5.Humane condition
of work; 6.living wage;
& 7.participate in
Decision making
Management
Prerogative
In SAMEER OVERSEAS PLACEMENT AGENCY
vs. JOY C. CABILES, August 5, 2014), Justice Leonen said:

Employers have the prerogative

to impose productivity and quality
standards at work. They may also
impose reasonable rules to
ensure that the employees
comply with these
standards.Failure to comply may
be a just cause for their dismissal.
 Management
Prerogative
Established Laws
CBA
company practice

Everything concerning the business

Management
Prerogative
The authority to hire is
likewise covered and
protected by its
management prerogative.
(J. Peralta, St. Paul College of Qc vs
Spouses Ancheta, September 7, 2011,
GR No 169905)
Right to regulate all
aspects of
employment
(1) hiring (5) supervision of
(2) the freedom their work
to prescribe work (6) lay-off and
assignments discipline, and
(3) working (7) dismissal and
methods, process recall of workers
to be followed (J. Peralta, St. Paul
College of Qc vs
(4) regulation Spouses Ancheta,
regarding September 7, 2011, GR
No 169905)
transfer of
Management Prerogatives emanate
from an owners property right

Managerial Prerogatives are considered

natural rights that allow employers to
manage their business/employees

Article 428 of the Civil Code provides that:

the owner has the right to enjoy and
dispose of a thing, without other limitations
other than those established by law.
 Jurisdiction
Authority to hear and decide

Labor Arbiter of NLRC (Article 217,

PD 442, as amended)
Voluntary Arbitrator (Arts. 261 &
262)
Secretary of Labor (Arts 128, 129 &
263g)
PRC/DECS/CSC
 LABOR ARBITER
a. Original and exclusive
jurisdiction to hear and decide the
following cases involving all
workers, whether agricultural or
non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;

 Labor Arbiter
3. If accompanied with a claim
for reinstatement, those cases
that workers may file involving
wages, rates of pay, hours of
work and other terms and
conditions of employment;
4. Claims for actual, moral,
exemplary and other forms of
damages arising from employer-
 Labor Arbiter
5. Cases arising from any
violation of Article 264 of the
Labor Code, as amended,
including questions involving the
legality of strikes and lockouts;
 Labor Arbiter
6. Except claims for employees
compensation not included in the next
succeeding paragraph, social security,
medicare, and maternity benefits, all other
claims arising from employer-employee
relations, including those of persons in
domestic or household service, involving an
amount exceeding Five Thousand Pesos
(P5,000.00), whether or not accompanied
with a claim for reinstatement;
 Labor Arbiter
7. Wage distortion disputes in
unorganized establishments not
voluntarily settled by the parties
pursuant to Republic Act No.
6727;
8. Enforcement of compromise
agreements when there is non-
compliance by any of the parties
pursuant to Article 227 of the
 Labor Arbiter
9. Money claims arising out of employer-
employee relationship or by virtue of any law
or contract, involving Filipino workers for
overseas deployment, including claims for
actual, moral, exemplary and other forms of
damages as provided by Section 10, Republic
Act No. 8042, as amended by Republic Act
No. 10022; and

10. Other cases as may be provided by law.

 Commission Proper
1. Cases decided by the Labor Arbiter;
2. Cases decided by the Regional Directors or
hearing officers on small money claims;
3. Cases of national interest certified to by the
Secretary of Labor;
4. Petitions for injunctions or temporary restraining
order under Article 218 (e) of the Labor Code, as
amended; and
5. Petition to annul or modify the order or resolution
(including those issued during execution proceedings)
of the Labor Arbiter.

Jurisdiction of Voluntary Arbitrators

or Panel of Voluntary Arbitrators
(Art. 261-262, Labor Code)

Exclusive and original jurisdiction

to hear and decide all grievances:
Arising from the implementation
or interpretation of the collective
bargaining agreements;
Arising from the interpretation or
enforcement of company
personnel policies;
Voluntary Arbitrator
Wage distortion issues arising from the application of
any wage orders in organized establishments (Par. 4,
Art. 124, RA 6727);
Where the application of any prescribed wage
increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions or wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortion shall be
resolved through the grievance procedure under their
collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such
dispute shall be decided by the voluntary arbitrators
within ten (10) calendar days from the time said
Voluntary Arbitrator
4. Unresolved grievances arising from the interpretation
and implementation of the productivity incentive programs
under RA 6971.
Sec. 9, RA 6971
Sec. 9. Disputes and Grievances Whenever disputes,
grievances, or other matters arise from the interpretation or
implementation of the productivity incentive program, the labor-
management committee shall meet to resolve the dispute, and may
seek the assistance of the National Conciliation and Mediation Board
of the Department of Labor and Employment for such purpose. Any
dispute which remains unresolved within twenty (20) days from the
time of its submission to the labor-management committee shall be
submitted for voluntary arbitration in line with the pertinent
provisions of the Labor Code as amended.
The Productivity incentives program shall include the name(s) if the
voluntary arbitrator or panel of voluntary arbitrators previously
chosen and agreed upon by the labor-management committee.
Voluntary Arbitrator
Concurrent Jurisdiction
Any other labor dispute upon agreement of the party may
be submitted to a voluntary arbitrator or panel of voluntary
arbitrators.
Before or at any stage of the compulsory arbitration process,
the parties may opt to submit to their dispute to voluntary
arbitration.

The NLRC and its Regional Branches as well as the Regional

Directors of the DOLE are prohibited from entertaining
disputes, grievances or matters under the exclusive and
original jurisdiction of the voluntary arbitrator or panel of
voluntary arbitrators. They shall immediately dispose and
refer the same to the appropriate grievance machinery or
voluntary arbitration provided in the collective bargaining
Powers of the Voluntary Arbitrators
or Panel of Voluntary Arbitrators
(Sec. 4, Rule XI, Book V)

To hold hearings;
To receive evidence;
To take whatever action is necessary to
resolve the issue/s subject of the dispute;
To conciliate or mediate to aid the parties in
reaching a voluntary settlement of the
dispute;
To issue a writ of execution to enforce final
decisions, orders, resolutions or awards.
 Labor Arbiter on
Termination
The labor arbiter, the appellate court, and the NLRC differed in their
rulings on the matter of jurisdiction.The labor arbiter and the
appellate court agreed withAysonand the unions position.The
labor arbiter assumed jurisdiction and emphasized that when the
union met withLandtexon8 July 1996,Aysonwas no longer an
employee becauseLandtexterminated him effective30 June 1996.
The manifestation of the unions desire to refer the matter to a
third party in accordance with law and the CBA does not deviate
from the fact thatAysonwas already dismissed.On the other hand,
the NLRC sustainedLandtexand WilliamGosposition.The NLRC
asserted that the determination of whetherAysonsdismissal
constitutes a disciplinary action within the scope of the CBA calls
for an interpretation of the CBA.When the union called for a
meeting withLandtex, the union effectively initiated the grievance
procedure. Thus,Aysonscase should have been subjected to
voluntary arbitration.
The SC agreed withAysonand the union and affirm the rulings of
the labor arbiter and the appellate court. (Landtex vs Ayson and
FFW, August 9, 2007)
Termination disputes fall under
the jurisdiction of the labor
arbiter
Article 261 of the Labor Code provides that voluntary
arbitrators shall have original and exclusive jurisdiction to
hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining
Agreement and those arising from the interpretation or
enforcement of company personnel policies. On the other
hand, a reading of Article 217 in conjunction with Article 262
shows that termination disputes fall under the jurisdiction of
the labor arbiter unless the union and the company agree
that termination disputes should be submitted to voluntary
arbitration. Such agreement should be clear and
unequivocal. Existing law is an intrinsic part of a valid
contract without need for the parties to expressly refer to it.
Thus, the original and exclusive jurisdiction of the labor
arbiter over unfair labor practices, termination disputes, and
claims for damages cannot be arrogated into the powers of
voluntary arbitrators in the absence of an express
Labor Arbiter and Regular
Court
Illegal termination of officers or
other employee of a private
corporation is under LA (Article
217,PD 442, as amended)
Corporate officers is under RTC
(PD 902-A, amended by RA 8799)
 Corporate Officers
Section 25 of PD 907-A
enumerates them:
President;
Secretary;
Treasurer
Such other officers in the by laws
 Corporate Officers
Conformably with Section 25, a
position must be expressly
mentioned in the By-laws in order
to be considered as corporate
office. Thus, the creation of an
office pursuant to or under a By-
Law enabling provision is not
enough to make a position a
corporate office.xxx (Matling
Industrial & Commercial Corp vs Coros [633
 Damages on EE-ER
It is settled under this jurisdiction
that employers claim for
damages arising from employer-
employer relationship is outside
the jurisdiction of the regular
court (Article 217 of the Labor
Code as amended; Banez vs Hon.
Valdevilla, G.R. No. 128024, May
9, 2000)
 School may adopt its
own standards
As long as the standards fixed are
reasonable and not arbitrary,
courts are not at liberty to set
them aside. Schools cannot be
required to adopt standards which
barely satisfy criteria set for
government recognition. (Mercado,
et al. v. AMA Computer College-Paraaque
City, Inc., G.R. No. 183572, April 13, 2010,
618 SCRA 218, 233).
Not to renew contract
This is a right of the school that
is mandated by law and
jurisprudence. It is the
prerogative of the school to set
high standards of efficiency for its
teachers since quality education
is a mandate of the Constitution.
(J. Peralta, St. Paul College of Qc vs Spouses
Ancheta, September 7, 2011, GR No 169905)
 Closure of business is a
management prerogative

Dangan vs NLRC, 127 SCRA 706:

Abolition of a department or section of an
employers establishment for economic
reasons is a managerial prerogative.

Coca Cola vs. NLRC, 194 SCRA 592:

Closure or cessation of an establishment not
due to serious business losses includes
the complete cessation of operations of
only part of companys activities.
 Teaching is not only
governed by Labor
Code
In the consideration of employment on
probationary status of teaching
personnel, such is not governed purely
by the Labor Code (Mercado, et al. v. AMA
Computer College-Paraaque City, Inc., G.R. No. 83572, April
13, 2010, 618 SCRA 218, 233)
1
The LC is supplemented with respect
to the period of probation by special
rules found in the Manual of
Regulations for Private Schools. (Magis
Young Achievers' Learning Center v. Manalo, G.R. No.
 Written Contract
Before the start of the term, the
institution shall execute a written
contract with its teaching and non-
teaching personnel
The contract does not affect tenure of
permanent or part-time employees
Binds them to finish the entire school
term and comply all requirements (Sec
116, Manual, 2008.
Provisionary under the
LC
Art 287. Probationary
employment Probationary
employment shall not exceed six
(6) months from the employee
started working, unless covered
by an apprenticeship agreement
stipulating a longer period. xxx.
An employee who is allowed to
work after a probationary period
shall be considered a regular
PROBATIONARY EMPLOYEE

an employees failure to perform the duties

and responsibilities
which have been clearly made known to him
constitutes a justifiable basis for a
probationary employees non-regularization.
(Abbott Laboratories, Phils., et al vs. Pearlie
Ann F. Alcar [April 22, 2014])
Probationary
Employment under the
Manual (2008)
Section 117. Probationary Period.
xxx

Probationary employment for

academic teaching personnel
shall not be more than six (6)
semesters or nine (9) trimesters
of satisfactory service, as the
case maybe. (Manual, 2008)
 Part-time Teachers
Academic personnel who do not
possess minimum qualification
under Sections 35 and 36 of the
Manual are considered part-time
employees
PTs cannot avail of the status &
privileges of a probationary
employee
PTs cannot acquire permanent
 Permanent Status
Full-time academic personnel
Satisfactorily qualified
probationary employment
Possess minimum qualifications
Rehired immediately after
probationary employment
(Section 118 of the Manual, 2008)
The state regulates relations
between workers &
employers

SEC 3 (par. 4) , ARTICLE XIII OF THE CONST:

The state shall regulate the relations
between workers and employers,
recognizing the right of labor to its
just share in the fruits of production and
the right of enterprises to reasonable
returns on investments, and to expansion
and growth.
Employment is a property
right
Callanta vs Carnation Phils, 145 SCRA 268:
It is a principle well recognized under
this jurisdiction, that ones employment,
profession, trade or calling is a property
right, and the wrongful interference
therewith is an actionable wrong. The
right is considered to be property right
within the protection of the constitutional
guarantee of due process of law.
Is an OFW has security
of tenure?
Employees are not stripped of
their security of tenure when they
move to work in a different
jurisdiction. With respect to the
rights of overseas Filipino
workers, we follow the principle of
lex loci contractus. (Sameer
Placement Agency vs Joy Cabiles,
August 5, 2014)
Just causes for termination

Article 288 (old 282):

1. Serious misconduct or willful disobedience of lawful
orders
2. Gross and habitual neglect of duties
3. Fraud or willfull breach of trust
4. Commission of a crime
5. Other analogies cases
1. Abandonment
2. Defiance of the AJO of Labor Secretary
 Authorized causes for
termination
Article 289 (old 283):
1. Introduction of labor saving device
2. Redundancy
3. Retrenchment
4. Closure

Article 290 (old 284: disease

Article 291 (old 285): Retirement
 Gross misconduct

In the case of Molato vs. NLRC, the Supreme

Court ruled:

For misconduct or improper behavior to be a

just cause for dismissal the same must be
related to the performance of the
employees duties and must show that he
has become unfit to continue working for
the employer.
Grossly immoral
Conduct
A teachers act of entering into said
second marriage constitutes grossly
immoral conduct. No doubt, such
actuation demonstratesa lack of that
degree of morality required of him as a
member of the teaching profession.
When he contracted his second
marriage despite the subsistence of
the first, he made a mockery of
marriage, a sacred institution
demanding respect and dignity. (Rene
 Is falling in love to a
student an immoral
conduct?
If the two fell in love, despite disparity
in their age and academic levels, this
only lends substance to the truism that
the heart has reasons that of its own
which reason does not know
But, definitely, yielding to this gentle
and universal emotion is not to be so
casually equated with immorality.
(Evelyn Chua-Qua vs Hon Jacobo
Clave, G.R. 49549[August 30,1990)
 Marriage between persons despite
differences of ages of 14 years is
not defiance of contemporary norms

The deviation of the

circumstances of their marriage
from the social pattern cannot be
considered as defiance of the
contemporary social norms.
(Evelyn Chua-Qua vs Hon. Jacobo
Clave, G.R. 49549 [August 30,
1990]).
 Insubordination

Isabelo vs. NLRC:

In order for insubordination to be a

valid or just cause for dismissal, the
employees assailed conduct must have
been willful or intentional, the
willingness being characterized by a
wrongful and perverse attitude, and the
order violated must have been reasonable,
lawful, made known to the employee and
must pertain to the duties which he had
been engaged to discharge.
 Willful dis-obedience
The conduct must be willful or
intentional, willfulness being
characterized by wrongful and
perverse mental attitude (Nissan
Motors vs Angelo, 657 SCRA 520,
529-30)
Refusal to comply due
to pending criminal
complaint
Employer failed to prove that
Montallanas non compliance to
apologize was willfull or
intentional, the dismissal is
illegal (Montallana vs La
Consolacion College Manila, Dec
8, 2014).
Non-compliance to apologize
invoking self-incrimination due
Refusal to submit to drug
test
(2012)
Employees refusal to submit
themselves to drug test is a just
cause for their dismissal
serious misconduct or willful
disobedience by the employee of
the lawful orders of his employer
or representative in connection
with his work (KAKAMPI vs
Kingspoint Express,G.R. 194813,
KAKAMPI vs Kingspoint Express
(April 25, 2012): Define,
willfull disobedience
(1) the employee's assailed conduct
must have been willful, that is,
characterized by a wrongful and
perverse attitude; and
(2) the order violated must have been
reasonable, lawful, made known to the
employee, and must pertain to the
duties which he had been engaged to
discharge. Both elements are present
in this case.
Two (2) Tests in Drug cases

Section 36 of R.A. No. 9165

provides that drug tests shall be
performed only by authorized
drug testing centers.
Moreover, Section 36 also
prescribes that drug testing shall
consist of both
the screening test and
the confirmatory test.
Automotive Engine Rebuilders
 Serious business losses

North Davao Mining Dev. Corp. vs

NLRC, 254 SCRA 721:

When the closure is due to

serious business losses, Art 283
does not obligate payment of
separation pay.

One cannot squeeze blood

from a dry stone. Nor water out
of parched land.
 Jurisdiction on EE-ER
Relationship

Rep. of Phils. Q: Question of EE-ER

Represented by exclusive with NLRC?
SSS & SSC vs
Asiapro Coop Ans: No. SSC not NLRC
(Nov 23, 2007): resolves EE-ER
on SS coverage.
e question of the existence of an employee-employer relationship
ot the exclusive jurisdiction of the NLRC. Article 217 (a) (6) of th
or Code exempts from its jurisdiction claims for Social Security, x
Hence, the Social Security Commission has primary jurisdiction o
estion of an existence employee-employer for purposes of deter
ning the coverage of SSS (Sec 5 of SS Law of 1987, R.A. 8282)
 No EE-ER stipulation
binding?
Q: Is the no EE-ER
Rep. of Phils. stipulation binding
Represented by To parties in contract?
SSS & SSC vs
Asiapro Coop Ans: No. provision must
(Nov 23, 2007): be struck down as
it circumvents the law
e Service contract in question must be struck down fo
ng contrary to law and public policy since it is apparen
being used by the respondent cooperative merely to
circumvent the compulsory Coverage of its employees
who are also its owners-members,
by the social security law.
Other than the NLRC, can
the Secretary of Labor
Determine EE/ER
Relationship?
Yes! No limitation in the law was
placed upon the power of the DOLE to
determine the existence of an
employer-employee relationship. No
procedure was laid down where the
DOLE would only make a preliminary
finding, that the power was
primarily held by the NLRC (Bombo
Radyo vs Sec of Labor, Regional
Dirctor and Juezan, March 6, 2012)
 Bombo Radyo case
Bombo Radyo case recognizes the
validity of the Department of
Labor and Employments (DOLEs)
plenary power under Article
128(b) of the Labor Code, as
amended by Republic Act No.
7730, including its power to
determine the existence of
employer-employee relationship
in the exercise of its Article
DOLE has power to determine
employer-employee
relationship
The DOLE must have the power to
determine whether or not an
employer-employee relationship
exists, and from there to decide
whether or not to issue
compliance orders in accordance
with Art. 128(b) of the Labor
Code, as amended by RA 7730
 SOCIAL PROTECTION

LABOR PROTECTION

SOCIAL SECURITY
Centesimus Annus
(1991)
Social Teaching calls for the adoption
of adequate social protection for all
workers (C.A. # 10)
i.e. Unemployment insurance, pension,
health insurance & compensation in
case of accident
as measure to restore dignity of work
and to ensure fair wage levels for the
maintenance of worker and his family
Workers movement has big role in the
adoption of these social protection.
WHAT IS SOCIAL SECURITY?

Social Security is the

protection that society gives
to its members against the
economic and social
distresses caused by
contingencies such as
sickness, child birth,
Early forms of social
Support
Societieshave devised ways
to support people who cannot
support themselves
particularly older people,
persons with disabilities,
widows & orphans
Concept of solidarity &
protection
Origin of Social
Protection
The Code of Hammurabi (18th century BC) is
one of the oldest documents to discuss social
protection for widows and orphans
Poor laws of England in the 16th Century
Almshouses for old and sickly
Workhouses for unemployed
Trade unions developed their social insurance
and mutual aid societies in England, Sweden
& Germany in the 18th century
Bismarck created the 1st broad system of
social insurance in Germany in the 19th
century
Social Security obscure
origin
SS can be traced to a bill entitled
Economic and Security Act
introduced during the economic
crisis in 1930s
Passed into law by US Congress
The Social Security Act (1935)
In the Phiippines, Magsaysay
signed into law in 1954 and SSS
started operations in 1957.
FEATURES OF SSS (R.A. 8282)
As a Social Insurance Program:

Coverage is compulsory
Contributions are shared between the
employer and employee
Funds are pooled to pay for the members
benefits
Surplus funds are put on reserve and are
invested
Amount of benefits depends on
contributions paid
There are inter-generation cross-
SSS COVERAGE
Mandatory Coverage

Employees
Workers from the private sector;
not over 60 years of age
Household helpers;
Seafarers deployed by local
manning agencies in foreign
ships
Public utility drivers
Who is an employee?

Under boundary system, a

jeepney driver is an employee of
the jeepney owner. Though the
driver is not paid a fixed wage,
and he remits boundary and
shoulders gas expenses, these
factors themselves do not create
lessor-lessee relationship. Owner
still exercise control and
supervision over the driver.(Jardin
 How control exercise
over the driver?
The owner sees to it that his
driver negotiates or follows the
government prescribed route in
accordance with the franchise
given by the LTFRB
In lease, the lessor loses
complete control or possession
over the chattel
In boundary system, the owner
 Working scholars not
employees
Students who work for the school
or university in exchange for the
privilege to study free of charge,
provided they are given real
opportunity, including such
facilities as may be reasonably,
necessary to finish their chosen
course under the arrangement
(Sec 14, Rule III, Rules
Implementing the Labor Code).
 In civil suit, school is liable
for the act of working
scholars as if it is an
employer
In must be noted that for
purposes of imposing liability
for tortious act, the working
scholar is considered an
employee and the school as
employer (Filamer Christian
Institute v. IAC, 212 SCRA
637)
 OFW is entitled to
security of tenure
Overseas workers regardless of
their classifications are entitled to
security of tenure, at least for the
period agreed upon in their
contracts. This means that they
cannot be dismissed before the
end of their contract terms
without due process. If they were
illegally dismissed, the workers
right to security of tenure is
Failure to register:
Labor Only
contracting
For failing to register as a
contractor, a presumption arises
that one is engaged in labor-only
contracting unless the contractor
overcomes the burden of proving
that it has substantial Capital,
investment, tools and the like.
(Manila Memorial Park vs
Edzard Lluz et. Al, G.R. No.
208451, Feb 3, 2016)
Rafael Quillopa vs Quality
Guards Services (Dec 2, 2015)

Waiver/Quitclaim and Release cannot

be construed to sever the employer-
employee relationship between
respondents and petitioner as the 1st
complaints pertains to monetary
claims and the 2nd to constructive
dismissal , simply because there is
nothing therein that would operate as
such. Thus, the CA erred in dismissing the
2nd Complaint on the ground that there is no
more employer-employee relationship
 Floating status not more
than six months allowed
Temporary off-detail or the period of
time security guards are made to wait
until they are transferred or assigned
to a new post or client does not
constitute constructive dismissal, so
long as such status does not continue
beyond six months. The onus of
proving that there is no post available
to which the security guard can be
assigned rests on the employer x x x.
(Rafael Quillopa vs Quality Guards
Constructive Dismissal
of Security Guard
In view of their unjustified failure
to place petitioner Security Guar
back in active duty within the
allowable six (6)-month period
and to discharge the burden
placed upon it by prevailing
jurisprudence, the Court is
constrained to hold respondents
liable for petitioners constructive
dismissal. (Rafael Quillopa vs
Samonte vs La Salle
Greenhills (Feb 10,
2016)
Given the following: ( 1) repeated
renewal of petitioners contract
for fifteen years, interrupted only
by the close of the school year;
(2) the necessity of the work
performed by petitioners as
school physicians and dentists;
Samonte vs La Salle
(Feb 10, 2016)

and (3) the existence of LSGI's power

of control over themeans and method
pursued by petitioners in the
performance of their job

The SC ruled that petitioners attained

regular employment, entitled to
security of tenure who could only be
dismissed for just and authorized
causes.
 5-5-5 Outlawed in
Purefood case (1997)
The workers (numbering 906) were hired by petitioner Pure
Foods Corporation to work for a fixed period of five months at
its tuna cannery plant in Tambler, General Santos City, SC
found illegally dismissed.
SC said that since reinstatement is no longer possible
because the petitioner's tuna cannery plant had, admittedly,
been closed in November 1994, the proper award is
separation pay equivalent to one month pay or one-half
month pay for every year of service, whichever is higher, to
be computed from the commencement of their employment
up to the closure of the tuna cannery plant.The amount of
back wages must be computed from the time the private
respondents were dismissed until the time petitioner's
cannery plant ceased operation
 Digital Communications Phils.
(Digitel) v.Digitel Employees
Union (2012)
Digiserv, the call center arm of Digitel,
ceased operations and retrenched 100
employees, 42 of whom were union
members. The SC held that Digiserv was a
labor-only contractor, and thus, the
retrenched employees were Digitel
employees.

The retrenchment was also found to be in

bad faith, as another call center arm, I-Tech,
was later created to perform the same
functions as Digiserv, and that the new call
Regular or DomWorker
Linda was employed by Sectarian University
(SU) to cook for the members of areligious
order who teach and live inside the campus.
While performing her assigned task, Linda
accidentally burned herself. Because of the
extent of her injuries, she went on medical
leave. Meanwhile, SU engaged a replacement
cook. Linda filed a complaint for illegal
dismissal,but her employer SU contended
that Linda was not a regular employee but a
domestic househelp. Decide. (4%) (Bar 2014)

 Suggested Answer
I will decide in favor of Linda. The
contention of her employer
Sectarian University (SU) is not
correct. Linda is a regular
employee and not a domestic
worker. She is employed by the
SU as a cook in the campus and
not engaged in domestic work
or performing work in or for a
household (R.A. 10361 [c] and
 Suggested Answer
In APEX Mining Co., Inc. vs. NLRC
(196 SCRA 25), the Supreme
Court held that a laundrywoman
in staff houses of a company or
within the premises of the
business of the employer, not
actually serving the family of the
employer, is a REGULAR
EMPLOYEE. She is not included in
the definition of domestic
 Requisites to validly
dismiss an employee
San Miguel Corp. vs. NLRC:
The requisites to validly dismiss
an employee are:
(1) the dismissal must be
for a cause provided for under
the Labor Code; and
(2) the observance of
notice and hearing prior to
employees dismissal.
 2 Notice Rule
Cabalen Management Co., Inc. vs. Jesus Quiambao,
March 14, 2007:
An employee sought to be dismissed must
be served two written notices before the
termination of his employment.
The First notice must apprise him of
the particular acts or ommissions upon which
his dismissal is grounded;
the second, to inform him of the
employers decision to terminate his
Is a verbal appraisal of the charges
against the employee a breach of
the procedural due process? (King of
Kings Transport vs Mamac [June 29,
2007])
A verbal appraisal of the charges
against an employee does not
comply with the first notice
requirement.
In Pepsi Cola Bottling Co. v. NLRC,
(210 SCRA 277) the Court held
that consultations or conferences
are not a substitute for the actual
observance of notice and hearing.
 Workers written
explanation does not cure
lack of notice to explain
Also, in Loadstar Shipping Co.,
Inc. v. Mesano, (408 SCRA 478)
the Court, sanctioning the
employer for disregarding the due
process requirements, held that
the employees written
explanation did not excuse the
fact that there was a complete
absence of the first notice.
 What is a reasonable
Opportunity?
Reasonable opportunity under the Omnibus
Rules means every kind of assistance that
management must accord to the employees
to enable them to prepare adequately for
their defense.[15]
This should be construed as a period of at
least five (5) calendar days from receipt of
the notice to give the employees an
opportunity to study the accusation against
them, consult a union official or lawyer,
gather data and evidence, and decide on the
defenses they will raise against the
complaint. (King of Kings Transport vs Mamac [June 29,
 Reasonable Opportunity?
Detailed narration of facts -- in order to
enable the employees to intelligently prepare
their explanation and defenses, the notice
should contain a detailed narration of the
facts and circumstances that will serve as
basis for the charge against the employees. A
general description of the charge will not
suffice.
Specific company rules -- the notice should
specifically mention which company rules, if
any, are violated and/or which among the
grounds under Art. 282 is being charged
against the employees. (King of Kings vs
The evidence must be clear and
not ambivalent

Maneja vs. NLRC:

"Petitioner has been charged with a very serious offense --

dishonesty. This can irreparably wreck her life as an
employee as no employer will take to its bosom a
dishonest employee. Dismissal is the supreme
penalty that can be meted to an employee and its
imposition cannot be justified where evidence is
ambivalent.[2] It must, therefore, be based on a
clear and not on an ambiguous or ambivalent
ground. Any ambiguity or ambivalence on the ground
relied upon by an employer in terminating the services of
an employee denies the latter his full right to contest its
legality. Fairness cannot countenance such
ambiguity or ambivalence
 Reliefs for illegally dismissed
employee
-As a penalty to an erring employer, the illegally dismissed
employee is entitled to reinstatement and to full
backwages without any diminution
Bustamante et al vs. NLRC:

"On 21 March 1989, Republic Act No. 6715 took effect,

amending the Labor Code. Article 279 thereof states in
part:
"Article 279. Security of Tenure. An employee who is
unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of
allowances, and to his other benefits or their monetary
equivalent, computed from the time his compensation is
withheld from him up to the time of his actual
 The employer has the option to reinstate an
employee who has been declared illegally dismissed,
either physically or in the payroll. The employer
must have to notify the employee of its option

Pioneer Texturizing Corp et al vs. NLRC:

Furthermore, the rule is that all doubts in the
interpretation and implementation of labor
laws should be resolved in favor of labor. In
ruling that an order or award for reinstatement
does not require a writ of execution the Court is
simply adhering and giving meaning to this
rule. Henceforth, we rule that an award or
order for reinstatement is self-executory.
Pioneer Texturizing Corp et al vs. NLRC:
After receipt of the decision or resolution
ordering the employees reinstatement, the
employer has the right to choose whether to re-
admit the employee to work under the same
terms and conditions prevailing prior to his
dismissal or to reinstate the employee in the
payroll. In either instance, the employer
has to inform the employee of his choice.
The notification is based on practical
considerations for without notice, the
employee has no way of knowing if he has
to report for work or not. (Underscoring and
emphasis supplied).
If the decision declaring an employee to
have been illegally dismissed, is
reversed on appeal, the said employee is
entitled to backwages pending such an
appeal
Noahs Ark Sugar Refinery and/ or A. Louyoco vs, NLRC:

The right to immediate reinstatement, pending appeal to the

NLRC, stems from the constitutional right of a laborer to
security of tenure.xxx.

Assuming that on appeal the finding of illegal dismissal is reversed

and ruled to be valid, the laborer is still entitled to the
compensation he shall have received during the
pendency of the appeal before the NLRC and/or the
Court. The reason is simple: the laborer rendered services
during that period. The same conclusion holds for payroll
reinstatement. In this instance, the employer unilaterally opted
to pay the laborer even if the latter will not perform services for
 When is the period for the
computation of backwages and
separation pay supposed to end?

Surima vs, NLRC:

Second, as to the time frame for the computation of

backwages, the provision mentions the period from
withholding of compensation up to actual reinstatement,
which period can be established with facility. However,
there may be an instance when reinstatement is
considered no longer feasible, necessitating award of
separation pay instead. The question now arises: When
is the period for the computation of backwages and
separation pay supposed to end? Gaco vs. NLRC[1]
addressed the question squarely by holding that in such
circumstance, the computation shall be up to the time
of finality of this Courts decision. xxx. (Underscoring
 Every union member, unless expressly
excluded themselves, are deemed included
in the complaint filed by their union,
hence, there can be res judicata
Aldovino et al vs. NLRC:

xxx. In Davao Free Workers Front vs. Court of Industrial

Relations, this Court ruled 18 [No. L-29356, 31 October
1976, 60 SCRA 408, pp. 426-427.]

The detail that the number and names of the striking

members of petitioner union were not specified in the
decision nor in the complaint is of no consequence xxx. It is
the function precisely of a labor union such as petitioner to
carry the representation of its members particularly against
employers unfair labor practice against it and its members
and to file an action for their benefit and behalf without
joining them and to avoid the cumbersome procedure of
joining each and every member as a separate party.
.
Union represents its
members
The right of URFA as a legitimate labor union to represent its
members is expressly guaranteed under Art. 242 of the
Labor Code. 19 [Art. 242. Rights of legitimate labor
organizations.- A legitimate labor organization shall have the
right:

(a) To act as the representative of its members for the

purpose of collective bargaining; xxx

(e) To sue and be sued in its registered name; xxx] This

right, however, does not deprive its individual members
of their concomitant right to file a case in their own
names, nor of their right to withdraw from any case filed
by the union in their behalf. More importantly, the
individual member may seasonably exercise his option to
withdraw from a case filed by his union if he does not
want to be bound thereby
Members who have no
manifes-tation to withdraw,
bound by the decision
In Philippine Land-Sea-Air Labor
Union (PLASLU), Inc. vs. CIR, 20
[93 Phil. 747 (1953)] this court
ruled that only those members of
the petitioning union who did not
signify their intention to withdraw
from the case before its trial and
judgment on the merits are bound
by the outcome of the case.
Quitclaims and releases are not effective
bar to employees claims arising from
unfair labor practice

Lopez Sugar Corp vs. Federation of Free

Workers (FFW, 189 SCRA 179):
Quit claims executed by employee are general
frowned upon as contrary to public policy and
ineffective to bar claims for full measures of
workers legal right.
Quitclaims and releases are not effective
bar to employees claims arising from
unfair labor practice

Golden Farms vs. Ferrer Calleja, 175 SCRA 74:

It has been held that quitclaims are not binding if:
(a)contrary to law, morals and public policy;
(b)where voluntariness is put into issue;
(c ) where it is established that there is an
unwritten agreement entitling the employee to other
renumeration or benefits, for which claim of the
employee may be given due course.
 Strained Relationship
must be anchored on hard facts
Sagum vs. Court of Appeals (May 26, 2005):

The SC directed the erring employer to create

an equivalent position and immediately
reinstate petitioner without loss of seniority
rights. The Court ruled that: the existence of
strained relationships is a factual finding and
should be initially raised, argued and proven
before the labor arbiter. Petitioner is correct in
stating that the finding of strained relations
does not have any basis on the record. Indeed
nowhere was the issue raised in private
respondents pleadings before the Labor Arbiter
and the NLRC. It was raised for the first time in
 Strained Relationship
must be anchored on hard facts

Sagum vs. Court of Appeals (May 26, 2005):

As a rule, no strained relations should

arise from a valid and legal act of
asserting ones right xxx.
 Two Kinds of Regular employees

Rowell Industrial Corp (RIC) vs. CA and Taripe

(March 07, 2007 ):

Thus, there are two kinds of regular employees,

namely:

(1) those who are engaged to perform

activities which are usually necessary or
desirable in the usual business or trade of the
employer; and

(2) those who have rendered at least one

year of service, whether continuous or broken,
Continued re-hiring not
basis for regularization of
OFW
The exigencies of their work
necessitate that they be employed on
contractual basis (Gu-muro vs vs
Adorable, G.R. No. 160952, Aug 20,
2004);
For mutual interest of both seafarer and the
employer;
Seafarer cannot stay for long and an
indefinite period of time at sea. (Ravago vs
Esso Eastern Marine, Ltd (G.R. 158324, Mar
14, 2005)
 Violation of statutory due
process nominal damages is due
to worker
Genuino vs NLRC, Citibank (Dec 4, 2007):
In Agabon, we explained:

The violation of the petitioners right to

statutory due process by the private respondent
warrants the payment of indemnity in the form of
nominal damages. The amount of such damages is
addressed to the sound discretion of the court,
taking into account the relevant circumstances.
Considering the prevailing circumstances in the
case at bar, we deem it proper to fix it at
P30,000.00. We believe this form of damages
would serve to deter employers from future
violations of the statutory due process rights of
 Nominal damages Abbott
Laboratories, Phils., Cecille A. Terrible, Edwin D. Feist, Maria Olivia T.
Yabut-Misa, Teresita C. Bernardo, and Allan G. Alamazar Vs. Pearlie Ann
F. Alcar

The rule is that when a valid cause

for termination exists, the
procedural infirmity attending the
termination only warrants the
payment of nominal damages. This
was the principle laid down in the
landmark cases of Agabon v. NLRC
and Jaka Food Processing
Corporation v. Pacot
Whether worker may collect their wages during
the period between the Labor Arbiters order of
reinstatement pending appeal and the NLRC
decision overturning that of the Labor Arbiter ?

In Garcia & Dumago vs PAL (G.R. 164856, Jan 20, 2009,

En Banc), the SC reaffirms the prevailing principle that
even if the order of reinstatement of the Labor Arbiter
is reversed on appeal, it is obligatory on the part of
the employer to reinstate and pay the wages of the
dismissed employee during the period of appeal until
reversal by the higher court.[21] It settles the view that
the Labor Arbiter's order of reinstatement is
immediately executory and the employer has to either
re-admit them to work under the same terms and
conditions prevailing prior to their dismissal, or to
reinstate them in the payroll, and that failing to
exercise the options in the alternative, employer must
pay the employees salaries.[22]

[21]
 Gross violation of CBA

It must be remembered that a CBA is entered

into in order to foster stability and mutual
cooperation between labor and capital.
An employer should not be allowed to
rescind unilaterally its CBA with the duly
certified bargaining agent it had previously
contracted with, and decide to bargain anew
with a different group if there is no legitimate
reason for doing so and without first following
the proper procedure. (Employees Union
of Bayer Philippines FFW vs Bayer Phil
162943, Dec 6, 2010)
 RTW immediately executory
Univ. of San Augustine Empl. Union-FFW vs CA & USA
(March 28, 2006):

Article 263(g) of the Labor Code, supra, is explicit that if a strike

has already taken place at the time of assumption of jurisdiction
or certification, all striking or locked out employees shall
immediately return to work and the employer shall immediately
resume operations and readmit all workers under the same
terms and conditions prevailing before the strike or lock-out. xxx
On the other hand, the tenor of these ponencias[1][18] indicates
an almost instantaneous or automatic compliance for a striker to
return to work once an AJO has been duly served.

[1][18] Union of Filipro Employees vs. Nestle Philippines, Inc., G.R. Nos. 88710-
12, December 19, 1990, 192 SCRA 396; St. Scholasticas College vs. Torres, G.R.
No. 100158, June 29, 1992, 210 SCRA 565; Telefunken Semiconductors
Employees Union-FFW vs. Court of Appeals, G.R. Nos. 143013-14, December 18,
2000, 348 SCRA 565; Grand Boulevard Hotel vs. Genuine Labor Organization of
 RTW of AJO: Urgent
matter & Executory in
Character
Instructive is the ruling of this Court in
Philippine Airlines Employees Association v.
Philippine Airlines, Inc.[26]:
The very nature of a return-to-work order
issued in a certified case lends itself to no
other construction. The certification attests
to the urgency of the matter, affecting as it
does an industry indispensable to the
national interest. The order is issued in the
exercise of the courts compulsory power of
arbitration, and therefore must be obeyed
until set aside. x x x.
[26]
148 Phil. 386, 392 (1971).
 ULP under NLRC
Indeed, in Silva v. National Labor Relations
Commission (G.R. No. 110226, June 19, 1997,
274 SCRA 159). The SC explained the
correlations of Article 248 (1) and Article 261
of the Labor Code to mean that for a ULP
case to be cognizable by the Labor Arbiter,
and for the NLRC to exercise appellate
jurisdiction thereon, the allegations in the
complaint must show prima facie the
concurrence of two things, namely:
(1) gross violation of the CBA; and
(2) the violation pertains to the economic
provisions of the CBA
 EUBP-FFW vs Bayer
Phils
(December 6, 2010)
When an employer proceeds to
negotiate with a splinter union
despite the existence of its valid
CBA with the duly certified and
exclusive bargaining agent, the
former indubitably abandons its
recognition of the latter and
terminates the entire CBA.
 Neither Party Shall
Terminate CBA during its
lifetime
Where there is a collective
bargaining agreement, the
duty to bargain collectively
shall also mean that neither
party shall terminate or
modify such agreement
during its lifetime (Article 253
of the Labor Code)
 Rules on Prescription

Tamayo vs Baterbonia, 165 SCRA 94:

1. Offenses penalized under the Labor Code,
and the rules and regulations shall prescribed in
3 years (Art 296);
2. All ULP shall be filed within one (1)
year, otherwise forever barred (Art 296);
and
3. All monetary claims shall be filed within
3 years (Art 297).
How about Illegal dismissal?

The SC said in Callanta vs Carnation

Phils, 145 SCRA 268, inter alia:
IIlegal dismissal case does not fall as an
offense under the Labor Code, but under
Art. 1146 of the Civil Code as an injury
to the rights of the plaintiff which under
the Codes statute of limitations
prescribed in four (4) years.
SSS COVERAGE
Mandatory Coverage:
Self-Employed Individuals
Professionals licensed under the
Professional Regulatory Commission
(doctors, lawyers, accountants, etc.)
Single Proprietors and Business
Owners
Farmers and Fisher folk
Professionals in the entertainment
and sports fields who are not under
an employer-employee contract

SSS COVERAGE
Mandatory Coverage:

Employers
Local and foreign
companies doing
business in the
Philippines
Voluntary Coverage:
Employees separated from Employment
Former private sector employees or former self-
employed members
Overseas Filipino Workers (OFWs)
A former employee or self-employed member who
has an existing SSS number is no longer required to
register again as an OFW-member
Non-Working Spouses
The legal spouse of a currently employed and
actively paying SSS member
Employees of International Organizations and foreign
embassies in the Philippines
Filipinos hired by foreign institutions may be
voluntarily covered under an administrative
agreement
EFFECTIVITY OF
COVERAGE

Employer - On the first day of operation with at least

one (1) employee
Employee - On the first day of employment.
Self-employed - Upon first payment of contribution
OFW - Upon first payment of contribution
NWS - Upon first payment of contribution
Separated Member - On the month the member resumed
payment of contribution
Social Security PROGRAM
Social Security Benefits

Sickness It is daily cash allowance granted to a person

who is unable to work due to sickness or injury.

Maternity It is a daily cash allowance granted to a

female member who is unable to work due to
childbirth or miscarriage .

Disability It is a cash benefit granted to a member

who suffered partial or total permanent disability.
Retirement It is a cash benefit paid to a member
who can no longer work due to old age.

Death It is a cash benefit paid to the beneficiaries

of a deceased member, either as monthly pension
or lump sum amount.

Funeral Grant It is a cash grant given to whoever

pays for the burial expenses of a deceased member
or pensioner.
 Do we have
unemployment
insurance?
Yes, but only in the public sector
(GSIS)
None, in the private sector (SSS)
UNEMPLOYMENT BENEFIT IN GSIS
LAW

The Unemployment benefit is paid when

a permanent government employee who
has paid the required 12 months
integrated contributions under RA 8291
is involuntarily separated from the
service as a result of the abolition of his
office or position usually resulting from
reorganization.
How much is the unemployment benefit?

Unemployment benefit are in the form of monthly cash

payments equivalent to 50% of the average monthly
compensation (AMC). The duration of the benefit depends on
the length of service and ranges from 2 months to a maximum
of 6 months. Unemployment benefits shall be paid in
accordance with the following schedule
Contributions Made Benefit Duration
1 year but less than 3 years 2 months
3 or more years, but less than 6 years 3 months

6 or more years, but less than 9 years 4 months

9 or more years, but less than 11 years 5 months

11 or more years, but less than 15 years 6 months
 Bar Question (2014)
XIII. Don Luis, a widower, lived alone in a house
with a large garden. One day, he noticed that
the plants in his garden needed trimming. He
remembered that Lando, a 17-year old out-
of-school youth, had contacted him in church
the other day looking for work. He contacted
Lando who immediately attended to Don
Luiss garden and finished the job in three
days. (4%)
Is there an employer-employee relationship
between Don Luis and Lando?
Does Don Luis need to register Lando with
the Social Security System(SSS)
 Suggested Answer

No. There is no employee-employer

relation between Don Luis and Lando as
the work of Lando in the garden is only
for three days. Though Lando performed
domestic work, the same is one
occasionally or sporadically and not on
an occupational basis. Such is excluded
in domestic work as employment
(Section 4 [c] of R.A. 10361)
No. As there is no employee-employer
relationship between them as shown
 EC PROGRAM
Employees Compensation Benefits for work-related
sickness or injury resulting in disability or death
Income cash benefit for:
Temporary total disability or sickness an
income cash benefit equivalent to 90% of the average
daily salary credit not to exceed P200, payable for a
period not to exceed 120 days (for sickness) and 240
days (for disability).
Permanent total disability this benefit is a
monthly pension for life plus 10% for each of the five
dependent children starting from the youngest.
Permanent partial disability
Death and funeral grant
 Survivorship Pension

Dycaico vs SSS et.al, November 30, 2005:

The SSS denied the petitioners application for survivors
pension on the sole ground that she was not the legal
spouse of Bonifacio as of the date of his retirement, hence,
she could not be considered as his primary beneficiary
under Section 12 of Rep. Act No. 8282. Is SSS correct?
The SC holds that the proviso as of the date of retirement
in section 12-B(d) of Rep. Act No. 8282, which qualifies the
term primary beneficiaries, is unconstitutional for it violates
the due process and equal protection clauses of the
Constitution.
 SS pension vested right
Dycaico vs SSS et.al, November 30, 2005:
A pension plan when employee participation is
mandatory, the prevailing view is that employees
have contractual or vested rights in the pension
where the pension is part of the terms of
employment. Thus, it was ruled that a vested right
to benefits that is protected by due process clause
and retirees enjoy a protected property interest
whenever they acquire a right to immediate
payment under existing law.
REPUBLIC ACT NO. 7699

PORTABILITY LAW
All creditable services or periods of contributions made
continuously or in the aggregate of a worker under either the
GSIS or SSS shall be added up and considered for purposes of
eligibility and computation of benefits.
All services rendered or contributions paid by a member
personally and those that were paid by the employers to either
SSS or GSIS shall be considered in the computation of benefits
which may be claimed from SSS or GSIS. However, the amount
of benefits to be paid by one System shall be in proportion to the
services rendered / periods of contributions made to that
System.
 Bar Question (2014)

XIV
Luisito has been working with Lima Land for
20 years. Wanting to work in the public
sector, Luisito applied with and was offered a
job at Livecor. Before accepting the offer, he
wanted to consult you whether the payments
that he and Lima Land had made to the
Social Security System (SSS) can be
transferred or credited to the Government
Service Insurance System (GSIS). What would
you advice? (4%)
 Suggested Anwer
Section 3 of Republic Act No. 7699 reads:
SEC 3.Xxx, a covered worker who transfer(s)
employment from one sector to another or is
employed in both sectors, shall have his
creditable services or contributions in both
systems credited to his service or
contribution record in each of the Systems
and shall be totalized for purposes of old-
age, disability, survivorship, and other
benefits in case the covered employee does
not qualify for such benefits in either or both
Systems without totalization xxx
 Suggested Answer
His 20 years of service which is
equivalent to 240 months of
contributions is more than
enough to qualify him to retire
under the SSS Law. The SSS Law
only requires a minimum of 120
months of contribution(Sec 12-B ,
RA 8282).
 Is a biological mom entitled
to EC benefits after
adoption?
The ECC denied petitioners claim on
the ground that she is no longer the
deceaseds legitimate parent, as
required by the implementing rules. As
held by the ECC, the adoption decree
severed the relation between John and
petitioner, effectively divesting her of
the status of a legitimate parent, and,
consequently, that of being a
secondary beneficiary.
Is a biological mom entitled
to EC benefits after
adoption?
Yes! the term parents in the phrase
dependent parents in Article 167 (j)
of the Labor Code is used and ought to
be taken in its general sense and
cannot be unduly limited to legitimate
parents as what the ECC did. The
phrase dependent parents should,
therefore, include all parents, whether
legitimate or illegitimate and whether
by nature or by adoption. (Bernadina
Bartolome vs SSS & Scanmar Maritime
 Retrenchment or
Redundancy (Bar
2014)
IX. Luisa Court is a popular chain of motels. It
employs over 30 Chambermaids who, among
others, help clean and maintain the rooms.
These chambermaids are part of the union
rank-and-file employees which has an
existing collective bargaining agreement
(CBA) with the company. While the CBA was
in force, Luisa Court decided to abolish the
position of chambermaids and outsource the
cleaning of the rooms to Malinis Janitorial
Services, a bona fide independent contractor
which has invested in substantial equipment
and sufficient manpower
 Redundancy or
retrenchment (Bar
2014)
The chambermaids filed a case of
illegal dismissal against Luisa
Court. In response, the company
argued that the decision to
outsource resulted from the new
managements Labor Law
directive to streamline operations
and save on costs. If you were the
Labor Arbiter assigned to the
case, how would you decide?
 Suggested Answer
I will declare the termination of
Chambermaids illegal. Under Article
248 [c]of the Labor Code, it is
unlawful for the employer to contract
out service or functions being
performed by union member when
such will interfere with restrain and
coerce employees in the exercise of
their right to self-organization (see
Eugene Arabit and FFW vs Jardine
Pacific Finance, April 21, 2014).
Redundancy/Retrenchme
nt
Eugene S. Arabit and Federation of
Free Workers. Vs. Jardine Pacific
Finance, Inc. G.R. No. 188190. April 21,
2014

The SC has already ruled before

that retrenchment and
redundancy are two different
concepts; they are not
synonymous; thus, they should
 Redundancy
Redundancy exists where the services of an
employee are in excess of what is reasonably
demanded by the actual requirements of the
enterprise. A position is redundant where it is
superfluous, and superfluity of a position or
positions may be the outcome of a number of
factors, such as over hiring of workers,
decreased volume of business, or dropping
of a particular product line or service
activity previously manufactured or
undertaken by the enterprise
 Retrenchment
Retrenchment, on the other hand, is used
interchangeably with the term lay-off. It is
the termination of employment initiated by
the employer through no fault of the
employees and without prejudice to the
latter, resorted to by management during
periods of business recession, industrial
depression, or seasonal fluctuations, or
during lulls occasioned by lack of orders,
shortage of materials, conversion of the plant
for a new production program or the
introduction of new methods or more efficient
machinery, or of automation.
Muchas Gracias!

Thank you!