LABOR STANDARDS

EXEMPT FROM BOOK III (Conditions of Employment)

Government employees
Managerial employees:
if primary duty is management,
customarily and regularly direct work of two or more Ees, and
with authority to hire and fire or suggestions given particular
weight
Officers or members of managerial staff
Domestic Servants
Non-agricultural field personnel if regularly perform duties away from office
*Those paid by results, piece-work, pakyaw or task basis are entitled to certain benefits
(Labor Congress v. NLRC, 290 SCRA 509)
BENEFITS TO WHICH PIECE-RATE WORKERS ARE ENTITLED :
Applicable Statutory Minimum Daily Rate*
Service Incentive Leave
Night Differential Pay
Holiday Pay
Meal and Rest Periods
Overtime Pay*
Premium Pay*
Thirteenth Month Pay
Other Benefits
*Follows output rate prescribed by DOLE or standard used conforms with DOLE
output rate.
PREMIUM RATE for OVERTIME:
Normal
Holiday/Rest Day
Special Day

25% ON TOP OF HOURLY RATE

30%
30%

Emergency Overtime Work

Country at war/National or Local Emergency
Necessary to Prevent loss of life/property or Imminent danger to public safety
Urgent work to be performed on Machines to avoid serious loss or damage to employer
Necessary to prevent loss or damage to perishable goods
Completion of work started before the 8th hour
Necessary to avail of favorable weather or environmental
Overtime Compensation
General Rule
: cannot be waived
Exception
: waiver of OT pay is in consideration of benefits and
privileges which may be more than the OT pay
Voluntarily agrees to work 9 hours
No diminution in pay
Value of benefits greater or at least equal to 1hr.
OT pay during weekdays
OT pay due and demandable even if permitted to work Saturdays
Work doesn't involve strenuous physical exertion
Temporary duration

NIGHT DIFFERENTIAL
Does not apply to:

MEAL TIME
General Rule:
Exception:

PREMIUM PAY

(10pm-6am)
10%
Government Employees
Retail Businesses with less than 5 workers
Domestic Helpers
Managerial Employees
Field Personnel or those unsupervised, task or contract
basis, purely commission & fixed amount

Minimum of 60 minutes
Minimum of 20 minutes with full pay

(Days Worked)
Rest Day
30%
Special Day
30%
Nov.1 & Dec. 31 if also a Rest Day 50%for special day:
NO WORK, NO PAY

Authorized Work on a Rest Day:

Urgent work to be performed on machinery
Actual impending emergency
Abnormal pressure or work
Prevent loss/damage to perishable goods
Nature of work requires continuous operations
Analogous situations
HOLIDAY PAY
Unworked
100%
Worked
200%
- IF ALSO REST DAY
260%
- should not have been absent without pay on the working day preceding the holiday
New Year's Day
April 9
Dec. 25

Maundy Thursday
May 1
Dec. 30

Good Friday
June 12
Last Sun of August

EXEMPT FROM HOLIDAY PAY:

Government ees
Retail and Service Establishments regularly employing less than 10
Domestic helpers
Managerial ees
Field Personnel
Hourly Paid Faculty Members not also entitled
SERVICE INCENTIVE LEAVE
has worked for at least a year
5 days with pay
Does not apply:
Government
Already enjoying benefit
Domestic Helpers and those in the personal service of another
Already with vacation leave with pay of at least 5 days
Managerial Employees
Field Employees including those in Contract basis
Employed in establishments regularly employing less than 10 employees

Nov. 30

WAGE DISTORTIONS
- an increase in prescribed wage rates resulting in the elimination or severe
contraction of intentional quantitative differences in wage or salary rates between
and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service, or
other logical bases of differentiations
Procedure for correcting:
1. With Union
2. Without Union
-

go through grievance procedure

voluntary arbitrators (decide within 10 days from referral)
Each brings his own grievance
NCMB (10 calendar days => conciliation if unresolved)
NLRC (decide within 20 days from submission)

13TH MONTH PAY

Entitled :
Exempted Employers :
All Rank and File employeesworked at
Government
Employers of Household Helpers
least 1 month
Those with Multiple Employers
Those already paying
Paid by Result
Employers of paid purely on commission,
Private School Teachers
fixed, boundary or task basis
Resigned
or
Separated
Employees
(proportional)
Minimum Amount :

not less than 1/12 of total basic salary earned within a calendar year

*BASIC SALARY for purposes of 13th mo. pay shall include all remunerations or earnings
paid by his employer for services rendered
- BUT DOES NOT INCLUDE: allowances and monetary benefits which are not considered
or integrated as part of the regular or basic salary such as
vacation and sick leave credits, overtime, premium night
differential, holiday pay and COLA UNLESS by individual or
collective agreement or company practice or policy, they are
treated as basic salary.
VACATION/SICK LEAVE - not required by law
SERVICE CHARGE

85%
15%

Covered Employees
Management

BONUS
General Rule : Can't be demanded
Exceptions:
1.
Given for a long period of time
2.
Consistent & deliberate
3.
Employer knew he was not required to give benefit
4.
Employer continued giving benefit
5.
Employer realizes profits

MEDICAL TREATMENT OF EMPLOYEES

General Rule :First-Aid medicine and equipment made available
Training of sufficient Number of Employees to apply First-Aid Treatment
51-200 Employees

Full-time registered nurse

EXCEPT when the employer doesn't maintain hazardous work
places (Licensed First-Aider sufficient)

201-300 Employees Full-time Registered Nurse, Part-Time Physician, Dentist &

Emergency Clinic
301 or more

Full-Time Registered Nurse, Full-Time Physician, Dentist,

Dental Clinic, Infirmary/Emergency Hospital with a bed
capacity of 1 bed per 100 employees
EXCEPT when there is a hospital or clinic accessible from the
Employer's establishment AND he makes arrangements for
the Reservation of necessary bed and dental facilities

Hazardous Work
Place

Full-Time Physician - at least 2 hours

Part-Time Physician - at least 8 hours

VISITORIAL AND ENFORCEMENT POWERby Secretary of Labor or duly authorized

representative
Access to employer's records and premises
Right to copy records
Right to question any employee
Investigate any fact, condition or matter which may be necessary to
Order and administer, after due notice and hearing, compliance with the Labor Standards
provisions
Issue writs of execution to the appropriate authority for enforcement of their orders
Order stoppage of work or suspension of operations when non-compliance with law and
implementing regulations poses grave and imminent danger to the health and safety of
workers in the workplace
- Hearing within 24 hours
- Employer liable for salaries during suspension of operations if found to have
caused the violation
*NO TRO or Temporary/Permanent injunction may be issued by an inferior court over any
case involving the enforcement orders issued
RECOVERY OF Wages, Simple Money Claims & Other Benefits - DOLE Regional
Director
Summary Proceeding
Claimant : employee or person in domestic or household service
Provided :
1. No claim for reinstatement
2. Aggregate claims of each employee or househelper does not
exceed P5,000
(even if it exceeds this, Regional Director may still enforce
based on inspection's findings in the nature of enforcement
action)
3. Claims arise from employer-employee relationship
Notice and Hearing
Resolution of Complaint within 30 days from filing (Appeal within 5 calendar days
to NLRC)
NLRC to resolve appeal within 10 calendar days from submission of last pleading

Exception :

Claims for Employee's Compensation

Claims for Social Security benefits
Claims for Medicare Benefits
Claims for Maternity Benefits

*Regional Director cannot enforce results of Visitorial Power when :

1. Employer contests the findings
2. Issues raised requires examination of evidentiary matters
3. Such matters are not verifiable in the normal course of inspection
EMPLOYMENT OF WOMEN
1. Nightwork Prohibition
a. Industrial Undertaking
b. Commercial or Non-industrial, or branch
thereof, other than agricultural
c. Agricultural Undertaking

10pm06am
12am-6am
Nighttime, unless given a
period of rest not less than 9
consecutive hours

EXCEPTIONS:
Actual or impending emergencies to prevent loss of life/property or force majeure or
imminent danger to public safety
Urgent work to be performed to avoid serious loss to employer
Necessary to prevent serious loss of perishable goods
Holds a responsible position of managerial or technical nature or engaged to provide health
or welfare service
Nature of work requires the manual skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male workers
Immediate members of the family operating the establishment or undertaking
Other analogous cases
2.

Facilities for Women

a. Provide seats proper for women
b. Establish separate toilet rooms and lavatories
c. Establish a nursery in a workplace for the benefit of the women employees
d. Determine appropriate minimum age and other standards for retirement and
termination

3.

Maternity Leave Benefits

a. Has paid at least 3 monthly contributions in the 12-mo. period immediately
preceding the semester of her childbirth or miscarriage
b. Paid only for the first 4 deliveries or miscarriages
c. 100% of average salary credit for 60 days if normal or 78 days if caesarean

4.

Family Planning Services, Incentives for Family Planning

a. Maintain clinic or infirmary which shall provide for family planning service
b. Develop and prescribe incentive bonus schemes to encourage family
planning among female workers in any establishment/enterprise

5.

Discrimination Prohibited

ACTS OF DISCRIMINATION:
Payment of lesser compensation for work of equal value
Favoring over promotion, training opportunities, study and scholarship grants solely
on
account of their sexes
Institution of any criminal action under this shall not bar the aggrieved
employee from filing an entirely separate and distinct action for money
claims, which may include claims for damages and other affirmative
relief
Actions authorized shall proceed independently of each other

6. Void Stipulations Against Marriage

- either as a condition for employment (pre) or for continuing employment
(post)
7. Prohibited Acts
Deny benefits or discharge any woman employed to avoid giving benefits
Discharge such a woman on account of her pregnancy or while on leave or in
confinement due to her pregnancy
Discharge or refuse the admission of such woman upon returning to her work
for fear she may again be pregnant
MINIMUM EMPLOYABLE AGE
Except when working under the sole responsibility of his parents or
15 Years
guardian AND his employment does not in any way interfere with his
schooling
18 Years
In undertakings which are hazardous or deleterious

a. exposes workers to dangerous environmental elements,

contaminations, or work conditions including ionizing
radiations, chemicals, fire, flammable substances, noxious
components and the like
b. engaged in construction work, logging, fire-fighting, mining,
quarrying, blasting, stevedoring, dock work, deep-sea
fishing and mechanized farming
c. engaged in the manufacture or handling of explosives and
other pyrotechnic products
d. exposed to or use of heavy or power-driven machinery or
equipment
e. use or are exposed to power-driven tools
EMPLOYMENT OF HOUSEHELPERS
- engaged in the employer's home, whose services are usually or desirable for the
maintenance and enjoyment thereof, and ministers exclusively to the personal
comfort and enjoyment of the employer's family
1) Original Contract not more than 2 years
2) If assigned to work in a commercial, industrial or agricultural enterprise, must not
be paid lower than agricultural or non-agricultural workers
3) If under 18 years of age, must be given opportunity to finish at least elementary
schooling - cost of education shall be part of compensation
4) Treated in a just and humane manner
5) Free :
Sanitary and suitable living quarters
Adequate food
Medical attendance
6) Indemnity for unjust termination if Fixed Period of Service
Compensation already earned + 15 days
7) If no fixed period, notice of termination must be given at least 5 days prior
EMPLOYMENT OF HANDICAPPED WORKERS
- Earning capacity impaired by : age
physical or mental defects
- can be regular if work is usually or necessary or desirable to the business
(Bernardo Case)
1. When Employable
a. necessary to prevent curtailment of employment opportunities AND
b. does not create unfair competition in labor costs or impair working
standards

2.

Employment Agreement shall state/include:

3.

a. Names and addresses of the handicapped workers to be employed

b. Rate to be paid not less than 75% of applicable legal minimum wage
c. Duration of employment period
d. Work to be performed by handicapped
the agreement is always subject to inspection by SOLE or duly authorized
representative
Eligibility for Apprenticeship
- If their handicap is not such as to effectively impede the performance of
job operations in the particular occupations for which they are hired

LABOR RELATIONS
REQUIREMENTS FOR REGISTRATION
LABOR ORGANIZATION
FEDERAL/NATIONAL
WORKERS ASSOCIATION
UNION
a. Registration Fee
In addition to a, b, d and e of
a. Registration fee
b. Names, addresses of its
b. Names
of
its
requirements for Labor Org:
a.
Resolution
of
affiliation
of
officers;
principal
members,
their
address; minutes of the
at least 10 locals or
addresses,
principal
organizational meetings;
chapters (all duly
office of applicant,
list of workers who
recognized Collective
minutes
of
participated
in
the
Bargaining agents)
organizational
b. Names and addresses of
meetings
meetings, and names
c. Names
of
all
its
the companies where the
of individual members
members comprising at
locals/chapters
operate
who attended such
least 20% of all the
plus list all members in
meetings
c. Copy of constitution
employees
in
the
each company involved
bargaining unit where it
and
by-laws
duly
seeks to operate
ratified by majority of
d. Two (2) copies of its
individual members
financial
reports
is
applicant has been in
existence for one or
more year
e. Four (4) copies of the
Constitution and By-laws
(CBL), minutes of its
adoption or ratification
and a list of members
who participated therein
~ all requisite documents
shall be certified under
oath
by
the
Secretary/Treasurer and
attested by the President

CHARTERING
-

Issuance by Federation of charter certificate to a local/chapter

copy of which shall be submitted to BLR within 30 days from issuance
in addition submit CBL and set of officers
books of accounts are no longer required

AFFILIATION of Independently Registered Union

file with Regional Office or BLR 2 copies of verified resolution of affiliation, ratified
by a majority of the union, and a resolution of acceptance of by the federation /
industry union

Local/Chapter becomes an LLO only upon Submission of the ff. to the BLR / Regional
Office:
a. a charter certificate (Within 30 days from issuance)
b. CBL and statement of officers
- books of account are no longer required
GROUNDS FOR CANCELLATION OF UNION REGISTRATION
Misrepresentation, False Statement or Fraud in connection with :
a. adoption/ratification of the CBL or amendments thereto, minutes of ratification and
the list of members who took part in the ratification
b. election of officers, minutes thereof, list of officers/voters
c. in the preparation of the financial reports
Failure to Submit :
a. CBL, minutes of its adoption/ratification, list of members ho took part within 30 days
from adoption of ratification or amendments thereto
b. Minutes of the elections of officers, list of officers/voters within 30 days from election
c. Annual financial report to the BLR within 30 days after the closing of every fiscal year
d. List of individual members to the BLR once a year or whenever required by the BLR
Acting as labor contractor or engaging in the 'Cabo System' or otherwise engaging in any
activity prohibited by law
Entering into CBAs with terms and conditions of employment below minimum standards
established by law
Asking for or accepting attorney's fees or negotiation fees from employer
Checking off special assessments or any other fees without duly signed individual written
authorizations of the members (other than for mandatory activities under the labor
Code)
RIGHTS AND CONDITIONS OF MEMBERSHIP
A.

Political Rights
1. Officers Directly elected
2. No person convicted of crime involving moral turpitude shall be eligible to be an
officer of union
3. Officers shall not be paid any compensation other than salaries and expenses
due to their positions as authorized by CBL or written resolution of majority

B.

Deliberative & Decision Making Rights

1. Determination by secret ballot, any question of major policy
2. No admission of individuals who are members of subversive organizations

C.
1.
2.
3.
4.
5.
6.

D.
1.

Rights Over Money Matter

No arbitrary, excessive oppressive fines and forfeiture
No collection of fees, dues NOR disbursements unless duly authorized pursuant
to CBL
All payment of fees, dues, contributions evidenced by receipt and entered into
records
Funds shall not be applied for any purpose other than expressly provided in CBL
or authorized by majority of members at general meeting
No special assessment or other extraordinary fees may be levied unless
authorized y written resolution of majority
Other than mandatory activities, no special assessment, atty.'s fees, negotiation
fees or any other extraordinary fees may be checked from any amount due to an
employee without individual written authorization

Right To Be Informed
Full and detailed report of all financial transactions

2. All income and revenue evidenced by a record and every expenditure evidenced
by a receipt
3. Treasurer and Officers render a true and correct account of all moneys received
and paid :
Since assuming office
Since last accounting
At least once a year w/ in 30 days from close of fiscal year
Other times as required by written resolution of majority
4. Books of account and financial records open to inspection by officer/member
during office hours
5. Duty of labor organization to inform members of contents of CBL, CBA and their
rights and obligations under existing labor laws
*Protest on Election of Officers
Formalized before Med Arbiter within 5 days from close of Election Proceedings

Decided within 20 working days

INTRA-UNION DISPUTES
General Rule : Relief must first be sought within the union itself in accordance with its
CBL which must be alleged in the petition
Exceptions :
Futility of intra-union remedies
Improper expulsion procedures
Undue delay as to constitute substantial injustice
Action for damages
Lack of jurisdiction of the investigating body
Action of the administrative agency is patently illegal, arbitrary and oppressive
Issue involved is purely a question of law
Administrative agency has already prejudged the case
Administrative agency was practically given an opportunity to act on the case but
did not
*Requirement for a complaint for Violation of by-laws and rights and conditions of
membership:
Minimum of 30% of the members of the Labor Organization
Exception :when such violation directly affects only 1 or 2 members,
then such number would be enough to report the violation and seek redress
with the CIR
REQUIREMENTS FOR DISAFFILIATION
General Rule :
Only during the 60 day freedom period & effected by a majority
of the members of the bargaining unit
Exception :
Outside the freedom period but must still be supported by a
majority of the members of the disaffiliating union who must remain bound by the
CBA until the CBA's expiration date.
Substitutionary Doctrine - employees cannot revoke the validity of a validly executed
CBA with their employer by the simple expedient of
changing their collective bargaining agent
- the new agent must respect the subsisting CBA
- employer cannot renege on the CBA, except to negotiate
with the management for the shortening thereof
- Inapplicable to personal undertaking of deposed union
e.g. : no strike stipulation

VISITORIAL POWER
Who
:
Re
:
Cause
:
Prohibited

Sec of DOLE or duly authorized representative

Inquire into Financial Activities of LLO
Complaint under oath supported by the written consent at least
20% of LLO's total membership
1. 60 day freedom period
2. within 30 days immediately preceding election of union
officers

EXECUTIVE ORDER 180

- Applies to all employees of all branches, subdivisions, instrumentalities
and agencies of the government including employees of GOCCs with
original charters
- Can form, join or assist employees organization for furtherance and
protection of interest
NOT Covered :
High-level employees
AFP
Police Officers
Policemen
Firemen
Jailguards
-

Application filed with the BLR

Registration is with the Civil Service Commission or DOLE
(CSC Chairman and Dole Sec jointly approve)
Petition for Certification Election if filed with the BLR

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Act as the representative of its members for the purpose of collective bargaining
Certified as the exclusive bargaining representative of all employees in an appropriate
collective unit for purposes of collective bargaining
Furnished with the annual audit financial statements of employer
Own property (real/personal) for the use and benefit of its members and the labor
organization
Sue and be sued in its registered name
Undertake all other activities designed to benefit the organization and its members,
including cooperative, housing welfare and other projects not contrary to law
Collect reasonable membership fees, union dues, assessments and fines and other
contributions
2 KINDS OF UNIONS (Purpose)
1) For purposes of Collective Bargaining (called "Labor Organization")
- any union or association of employees which exists for collective
bargaining purposes or for dealing with employers regarding terms &
conditions of employment
2) For Mutual Aid and Protection (called "Worker's Association")
- an association of workers organized for its members' mutual aid and
protection or for any legitimate purpose other than collective bargaining
*Any employee, whether employed for a definite period or not, shall, beginning on his
first day of service, be considered an employee for purposes of membership in any
labor union

UNION SECURITY CLAUSE

- union can determine membership and prescribe conditions for its acquisition and
retention
- cannot be used by union officials against an employer, much less their own
members except with a high sense of responsibility, fairness and judiciousness
CLOSED SHOP - only union members can be hired and workers must remain
union workers/members to retain employment
UNION SHOP - non-members may be hired, but to retain employment, must
become union members within a certain period thereafter

MODIFIED UNION SHOP - employees who are not union members at the time
of the signing of the contract need not join the union, but all workers hired
thereafter should join

MAINTENANCE OF MEMBERSHIP - no employee is compelled to join the

union, but all present or future members must, as a condition of employment,
remain in good standing with the union

EXCLUSIVE BARGAINING SHOP - the union is recognized as the exclusive

bargaining agent for all employees, whether union members or not
BARGAINING FOR MEMBERS ONLY - the union is recognized as the
bargaining agent only for its own members
AGENCY SHOP - an agreement whereby employees must either join the union
or pay to the union as the exclusive bargaining agent a sum equal to that paid by
the members. This is directed against the "free rider" employees who benefit
from union activities without contributing to union support o prevent a situation of
non-union members enriching themselves at the expense of union members.
PREFERENTIAL SHOP - agreement wherein management undertakes to give
preference to union members in the hiring of employees, whether or not as
regulars
HIRING HALL - agreement wherein list of employees are given a chance to
determine who to employ/regularize
General Rule :

All employees in the bargaining unit covered by the union security

clause are subject to its terms

Exception
:
Any employee who at the time the agreement takes effect is a bona fide member of a
religious organization which prohibits its members from joining labor unions on religious
grounds
Employees already in the service and already members of a labor union or unions other
than the majority union at the time the agreement took effect
Supervisors ineligible under the Act to join the majority union because of the membership
therein of employees under their supervision
Employees excluded from the agreement by express terms
UNFAIR LABOR PRACTICES
- acts opposed to workers' right to organize
*2 Elements : Employer-employee relationship between the offender and offended
Act done is expressly defined in the Labor Code as ULP

*REMEDIES:
1. Civil Aspects
- Labor Arbiter who shall resolve within 30 calendar days from
submission for decision
- recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code
- substantial evidence enough
2. Criminal Aspects
- Must be proved independently from labor case
- Prosecution not possible until after finality of judgment in the labor
case
- Admin/civil judgment not evidence of ULP insofar as the criminal case
is concerned
- During the pendency of admin proceeding, the running of prescription
of criminal offense shall be interrupted
ULP OF EMPLOYERS
1. Restraint, interference or coercion in their exercise of the right to selforganization
- no excuse that conduct was unintentional and innocent
- Totality of Conduct Doctrine : culpability of employer's remarks were to be
evaluated no only on the basis of their implicit implications, but were to be
appraised against the background of and in conjunction with collateral
circumstances (history of employer's labor relations + anti-union bias)
- Doctrine of Successor-Employer : new company will be treated as a
continuation or successor of the one that closed in the new or take-over
company is engaging in the same business as the closed company or
department, or is owned by the same people, and the "closure" is
calculated to defeat the worker's organizational right in which case the
closure may be declared a subterfuge
*Factors to Determine Continuity :
a. Retention of control
b. Use of the same plant or factory
c. Use of the same or substantially the same employees, workers,
supervisors or managers
d. Similar or substantially the same work or production under similar
or substantially the same working conditions
e. Use of the same machinery and equipment
f. Manufacture of the same products or the performance of the same
services
2. Yellow Dog Contract - contract whereby an employee agrees that during the
period of his employment he will not become a member of a labor union
3. Contracting work out - services or functions being performed by union members
- determining factor : motivation
*Runaway Shop : industrial plant moved by its owners from one
location to another to escape union labor
regulations or state laws; a plant removed to a
new location in order to discriminate against
employees at the old plant because of their union
activities
4. Discrimination (wages, hours of work, other terms & conditions of employment)
- Purpose : to encourage /discourage membership in any labor org'n
5. Indirect discrimination against someone who has filed charges or for having
given or about to give testimony against the employer under the Labor Code

6. Violation of duty to Bargain

7. Pay negotiation or attorney's fees to the union or its officers or agents as part of
the settlement of any issue in collective bargaining or any other dispute.
8. Violation of the CBA
- Flagrant & malicious refusal to comply with the economic conditions or
provisions thereof
9. Initiates, dominates, assists otherwise interferes with the formation or
administration of any labor organization including the giving of financial or other
support to its organizers or officers
RELIEF IN ULP CASES - not subject to compromise
Cease and desist order where :
Restrained conduct was an issue in the case
There was a finding of fact on said misconduct
Finding of fact supported by evidence
Reinstatement, Payment of Backwages
Disestablishment - withdrew all recognition from the dominated labor union
Order to bargain
ULP OF LABOR ORGANIZATIONS
1) Restraint, interference or coercion in their exercise of the right to selforganization
- Interference in itself is not prohibited, ULP only if it amounts to
restraint or coercion
2) Causes employer to discriminate between union and non-union members or
members of another union
3) Violation of duty or refusal to bargain collectively
4) Featherbedding : employee practices which create or spread employment by
unnecessarily maintaining or increasing the number of employees used or the
amount of time consumed to work on a particular job
5) Accept/ask for negotiation or attorney's fees from employers as part of the
settlement of any issue in collective bargaining or any other dispute
6) Gross violation of CBA (if not gross, not ULP)
- Flagrant & malicious refusal to comply with the economic conditions or
provisions thereof
JURISDICTION OF VOLUNTARY ARBITRATORS
1. Original and Exclusive
all unresolved grievances arising from the interpretation or implementation of
the CBA
those arising from the interpretation or enforcement of company personnel
policies
2. All other labor disputes AGREED to be referred to it by the parties
Grievance machinery,
if unsettled after

7 calendar days
from submission

TERM OF CBA :

automatically referred
to Voluntary Arbitrator

Award to be made
within 20 calendar
days

5 years as to the representation aspect

Final after
10 cal days

Renegotiation of provisions other than representation aspect not later than 3 years after its execution
BARGAINING UNIT
- group of employees of a given employer comprised of all or less than all of the entire
body of employees, which the collective interests of all he employees, consistent with
equity to the employer, indicate to be the best suited to serve the reciprocal rights and
duties of the parties under the CBA
EXCLUSIVE BARGAINING REPRESENTATIVE
- labor organization designated or selected by the majority of the
employees in an appropriate bargaining unit
- despite having an EBR, an individual employee or group of employees
shall have the right at anytime to present grievances to their employers
Participation of Workers in Policy and Decision Making
- workers shall have the right subject to such rules and regulations as the
Secretary of Labor and Employment may promulgate, to participate in
policy & decision making processes of the establishment where they are
employed insofar as said processes will directly affect their rights,
benefits, and welfare
- pursuant to this, Labor-Management Councils may be formed
SECURITY OF TENURE
~ applies to all establishment or undertakings whether for profit or not
CLASSES OF EMPLOYEES
1. REGULAR
~ engaged to perform activities which are usually necessary or desirable in the
usual business or trade of the employer
2. PROJECT
~ one whose employment has been fixed for a specific project or undertaking
the completion of which has been determined at the time of engagement of the
employee (SO EVEN IF MORE THAN I YR., NOT NECESSARILY REGULAR)
*becomes regular if:
a. Job is usually necessary or desirable in the usual business or trade AND
b. Repeated rehiring
3. SEASONAL
~ one whose work or services to be performed is seasonal in nature and the
employment is for the duration of the season
4. CASUAL
~ activity performed is not usually necessary or desirable in the usual business
or trade of the employer, not project and not seasonal
Except: if he has rendered at least 1 year of service, whether such service is
continuous or broken = considered a REGULAR employee with respect to the
activity in which he is employed and his employment shall continue while such
activity exists

5. PROBATIONARY
~ General Rule: Not Exceed 6 mos.
Except:
1. covered by an apprenticeship agreement stipulating a longer period
2. voluntary agreement of parties (especially when the nature of the work
requires a longer period)
3. the employer gives the employee a second chance to pass the standards
set
~ may be terminated
a) just cause
b) when he fails to qualify as a regular
employee in accordance with reasonable
standards made
known by the employer to employee at the
time
of his engagement
~ if allowed to work after the probationary period, he shall be considered a
REGULAR employee
6. FIXED TERM
~
allowed if:
- period is agreed upon knowingly and voluntarily by the parties without
force, duress, or improper pressure exerted on the employee
- satisfactorily appears that employer and employee dealt with each other
on more or less equal terms with no moral dominance exercised by the
employer on the employee
- term employment is not resorted to defeat the rights of the workers rights
** EFFECTS OF REMOVAL WITHOUT CAUSE :
1. entitled to reinstatement
2. without loss of seniority and other privileges
3. entitled to full backwages, inclusive of allowances and other benefits or
their monetary equivalent
TERMINATION
JUST CAUSE
a. GROUNDS
1. Serious misconduct or willful disobedience by the employee of the lawful
orders of his employer or representative in connection with his work
(work-related)
2. Gross and habitual neglect by the employee of his duties
3. Fraud or willful breach by employee of the trust reposed in him by his
employer or duly authorized representative (not mere suspicion)
4. Commission of a crime or offense by the employee against the person of
his employer or any immediate member of his family or duly authorized
representative
5. Other causes analogous to the foregoing
b. ABANDONMENT
~ means the deliberate, unjustified refusal of an employee to resume his/her
employment.
~ Two elements must be proved:
- the intention to abandon; and
- an overt act from which it may be inferred that the employee has no more
intent to resume his/her work.
~ this is negated by immediate filing of an action for ILLEGAL DISMISSAL

c. DUE PROCESS
1. written notice containing a statement of the causes for termination
2. a hearing or conference where the employee, who may be assisted by
counsel if he so desires, is given the opportunity to respond to the charge,
present his own evidence, or rebut evidence against him
3. written notice of termination served on the employee indicating that
grounds have been established to justify his termination based on due
consideration of all the circumstances
4. right to contest the validity or legality of his dismissal by filing a complaint
with the NLRC
5. burden of proof is with the employer
6. SUSPENSION OF EFFECTS PENDING RESOLUTION = if there is a
prima facie finding that the termination may cause a serious labor dispute
or is in implementation of mass layoff, the Secretary of Labor may
suspend the effects of the termination
RESIGNATION
a. WITHOUT JUST CAUSE
1. at least 1 month prior notice
2. employee may be held liable for damages for failure to give notice
b. WITH JUST CAUSE
1. Grounds
a. serious insult on the honor and person of employee by the employer
or his representative
b. inhumane and unbearable treatment accorded to the employee
c. commission of a crime against person of the employee or any of the
immediate members of his family
d. other causes analogous to the foregoing
2. Notice Not Necessary
EMPLOYMENT NOT DEEMED TERMINATED
a. bona fide suspension of the operation of a business/undertaking for a
period of not more than 6 months
b. fulfillment by the employee of a military or civic duty
~ Effects : Employer shall reinstate the employee to his former position
without loss of seniority rights IF employee indicates his desire to resume his
work not later than 1 month from resumption of operations of his employer or
his relief from the military or civic duty
PREVENTIVE SUSPENSION
~ justified where the employees continued employment poses a serious and
imminent threat to the life or property of the employer or of his co-workers
~ must not exceed 1 month
~ only for the purpose of investigating the offense to determine whether he is to
be dismissed or not
~ if more than 1 month, the employee must be actually reinstated or reinstated
in the payroll
~ officers liable only if with malice and bad faith

 AUTHORIZED CAUSES
a. GROUNDS
1. introduction to labor-saving devices
~ view to effecting more economy and efficiency in its method of
production
2. 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 has become superfluous as an outcome of a number of
factors such as overhiring of workers, decreased volume of business,
dropping of a particular product line or service activity previously
manufactured or undertaken by the enterprise (THUS IT ONLY
REQUIRES SUPERFLUITY NOT DUPLICATION OF WORK)
3. retrenchment
~ resorted primarily to avoid or minimize business losses
~ criteria of who to lay off (1) less preferred status
(2) efficiency rating
(3) seniority
(4) performance
~ standards of retrenchment
a. losses expected should be substantial and not merely de minimis
in extent
b. substantial loss apprehended must be reasonably imminent
c. retrenchment must be reasonable necessary and likely to
effectively prevent the expected losses
d. alleged losses, if already realized, and the expected imminent
losses sought to be forestalled, must be proven by sufficient and
convincing evidence
4. closure of business as a result of grave financial loss
5. closure not due to losses
b.
-

NOTICE AND SEPARATION PAY

written notice served on the worker and the DOLE at least 1 month
before the intended date thereof
Separation Pay:
1 month pay or 1 month pay
1 month pay or at least 1/2 month
for every year of service
pay for every year of service
whichever is higher
whichever is higher
- installation of labor- retrenchment to prevent
saving devices
losses
- redundancy
- closures or cessation of
operations of establishments
or undertaking NOT due to
serious business losses or
financial reverses
- disease

** A fraction of at least 6 moths shall be considered as one year.

c. Backwages- granted on grounds of equity for earnings which a worker has

lost due to his illegal dismissal.
- full backwages are to be awarded to an illegally dismissed employee and
should not be diminished or reduced by earnings derived elsewhere

d. Ailment or disease (other authorized causes: non-economic ground)

~ when his continued employment is prohibited by law or prejudicial
to his health or to the health of his co-employees
~ there is a certification by a competent public health authority that
the disease is of such nature or at such stage that it cannot be cured
within a period of 6 months even with proper medical treatment
~ SEPARATION PAY : equivalent to at least 1 month salary or 1/2
month salary for every year of service, whichever is higher

RETIREMENT PAY LAW (RA 7641)

A.
WHO ARE EXEMPTED:
~ retail, service, agricultural establishments
~ operations employing not more than 10 employees or workers
B.

KINDS:
1. OPTIONAL - 60 years old / 5 years in service (includes authorized
absences/vacations/regular holidays/mandatory military or civic service)
2. COMPULSORY - 65 years old/ regardless or years of service (company
not bound to dismiss employee)

C.
BENEFITS:
- 1/2 month salary per year of service which shall include:
1. 15-day basic wage, plus
2. 1/12 of the 13th month pay, plus
3. 5-day Service incentive leave pay plus
* a fraction of at least 6 mos. considered as one whole year
4. other benefits as maybe agreed upon by er and ee
** MINIMUM ~ no. 1 + no. 2 + no. 3 = n x years of service
~ minimum only so employer must pay deficiency in case agreed amount be
less than the above
DISPUTE SETTLEMENT
A.

Labor Dispute
~ includes any controversy or matter concerning terms or conditions of employment
or the association or representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation of employer and employee

B.

Labor Arbiters/NLRC
1. JURISDICTION = Labor Arbiter NLRC CA
~ Cases involving all workers, whether agricultural or non agricultural:
a. ULP cases (may include claims for actual, moral, exemplary and other
forms of damages, attorney's fees, other affirmative relief)
b. termination disputes
c. 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
d. claims for actual, moral, exemplary and other forms of damages, arising
from the employer-employee relationship
e. cases arising from any violation of Art.264 of the Labor Code, including
questions involving the legality of strikes and lockouts
f. Except claims for EC, SSS, Medicare and maternity benefits, all other
claims arising from employer-employee relations, including those of
persons on domestic or household service, including an amount
exceeding P5,000 regardless of whether accompanied with a claim for
reinstatement
2. JURISDICTION = NLRC

~ EXCLUSIVE appellate jurisdiction over all cases decided by Labor Arbiters

3. GRIEVANCE MACHINERY & VOLUNTARY ARBITRATION
~ cases arising from the interpretation of the CBA and those arising from the
interpretation or enforcement of company personnel policies
* monetary claim based on a CBA provision is under the exclusive jurisdiction of
the grievance machinery & VA
4. OCULAR INSPECTION = Labor Arbiter & NLRC
~ at any time during working hours
5. PROCEDURE
~ the rules of evidence prevailing in courts of law or equity shall not be controlling
~ it is the spirit and intention of this Code which shall be used as reasonable
means to ascertain the facts in each case
~ without regard to technicalities of law and procedure all in the interest of due
process
~ parties may be represented by legal counsel but it shall be the duty of the
Chairman, any presiding Commissioner or commissioner or any labor arbiter to
exercise compete control of the proceedings at all stages
6. APPEARANCES AND FEES
A.
When non-lawyers appear before the NLRC/LA
1. if they represent themselves
2. if they represent their organizations or members thereof
B.
Attorney's Fees, negotiations fees or similar charges of any kind arising
from any collective bargaining negotiations or conclusion of the collective
agreement shall be imposed on any individual member of the contracting
union
~ attorney's fees may be charged against union funds in an amount to be
agreed upon by the parties
~ contract, agreement to the contrary shall be VOID
7. APPEAL
~ WHEN: within 10 calendar days from receipt of decision of LA
~ GROUNDS:
a. prima facie evidence of abuse of discretion on the part of LA
b. the decision, order or award was secured through fraud or coercion
including graft and corruption
c. pure questions of law
d. raised serious errors in the findings of facts which could cause grave or
irreparable damage or injury to the appellant
~ ADDITIONAL REQUIREMENT: in case of judgment involving a monetary
award-employer (appellant) may perfect the appeal only upon the posting of a cash
or surety bond issued by a reputable bonding company duly accredited by the NLRC
in the amount equivalent to the monetary award in the judgment appealed from
8. ORDER OF REINSTATEMENT OF LABOR ARBITER
~ self-executing with no need for a writ of execution
~ immediately executory even pending appeal
~ either admitted back to work under the same terms and conditions prevailing
prior to his dismissal or separation or merely reinstated in the payroll ( at the
option of the employer, but which choice must be communicated to the employee
by the employer)
~ posting of a bond shall not stay the execution of reinstatement

9. FILING OF MEMORANDUM OF:

A.
APPEAL ~ furnish other party within 10 calendar days answer, then
within 20 calendar days decision by NLRC, then within 10 calendar days
finality
B.
ENFORCEMENT:
~ any law enforcement agency may be deputized by the Secretary of DOLE of
the NLRC
~ issuance of writ of execution on a judgment within 5 years from date it
becomes final and executory motu proprio or in motion of any interested party
C.

Bureau Of Labor Relations

o original jurisdiction: appeal to Office of the Secretary
o appellate jurisdiction: appeal to Court of Appeals
1. JURISDICTION
a. Inter-union conflicts
b. Intra-union conflicts
c. All disputes, grievances or problems arising from or affecting labormanagement relations in all workplaces EXCEPT those arising from the
implementation or interpretation of the CBA which shall be the subject of
grievance procedure and/or voluntary arbitration
2. COMPROMISE AGREEMENTS
~ if voluntarily agreed upon by the parties with the assistance of the BLR or the
regional office of DOLE final and binding upon the parties
~ the only time NLRC or any courts can assume jurisdiction over issues involved
therein:
a. in case of non-compliance thereof
b. if there is prima facie evidence that the settlement was obtained
through fraud, misrepresentation or coercion
3. POWER TO ISSUE SUBPOENA
~ when relevant to a labor dispute under its jurisdiction either at the request of
any interested party or at its own initiative
4. REGISTRY OF UNIONS AND FILING OF COLLECTIVE AGREEMENTS
a. registry of LLO
b. file of all CBA and other related agreements, records of settlement of labor
disputes, copies of orders, and decisions of voluntary arbitrators
~ open and accessible to interested parties under conditions prescribed by the
Secretary of DOLE, provided that no specific information submitted in confidence
shall be disclosed UNLESS authorized by the Secretary OR when it is at issue in
any judicial litigation OR when public interest or national security so requires
~ submitted within 30 calendar days from execution of CBA to the BLR/DOLE
for registration accompanied with verified proofs of its posting in 2 conspicuous
places in the place of work and ratification by the majority of all the workers in the
bargaining unit
5. PRIVILEGED COMMUNICATION
~ information and statements made at conciliation meetings shall NOT be used
as evidence in the NLRC
~ conciliators and similar officials shall not testify in any court or body regarding
any matters taken up at conciliation proceeding conducted by them
6. APPEAL
~ within 10 calendar days to the Secretary
~ GROUNDS:
a. grave abuse of discretion
b. gross incompetence

SUMMARY OF JURISDICTION
A.

VOLUNTARY ARBITRATORS
~ supervised by National Conciliation and Mediation Board (NCMB)
~ cases decided within 20 calendar days, final within 10 calendar days
1. unresolved grievances arising from the interpretation or implementation of the
CBA EXCEPT gross violation of the CBA
~ unresolved within 7 cal days from submission to grievance machinery
2. unresolved grievances arising from the interpretation or enforcement of company
personnel policies
3. upon agreement of parties = any dispute

B.

MED-ARBITERS/BLR
1. petition for certification election (Regional Director)
2. registration of CBA/ Labor Organization
3. inter-union conflicts (representation issue/cancellation of registration)
4. intra-union conflicts (election of officers/ compliance with CBL)
5. all disputes, grievances, or problems arising from or affecting labor management
relations in all workplaces whether agricultural or non-agricultural EXCEPT those
arising from the implementation or interpretation of CBA

C.

POEA
~ appeal to Secretary of DOLE within 10 calendar days
1. cancellation/ revocation/ supervision of license or authority
~ appeal to NLRC within 10 calendar days
2. violation of overseas employment contracts
3. disciplinary cases filed against overseas contract workers
~ original and exclusive jurisdiction over all claims arising out of an employeremployee relationship or by virtue of any law or contract involving Filipino overseas
workers including disciplinary cases; and all pre-employment cases which are
administrative in character involving or arising therefrom, or violations of the
conditions for issuance of license or authority to recruit workers

D.

LABOR ARBITERS/NLRC
~ appeal within 10 calendar days
1. ULP (priority resolved within 30 calendar days from submission for decision)
2. termination disputes
3. claims for 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-employee relationship
5. cases arising from prohibited activities during strikes, including questions
involving the legality of strikes and lockouts
6. all other claims arising from employer-employee relationship involving an amount
exceeding P5000 regardless of whether accompanied by a claim for
reinstatement except ECC, SSS, Medicare, & maternity benefits

E.

REGIONAL DIRECTORS
1. Secretary of DOLE enforcement power (inspection) = no limit to claims
2. adjudicatory power maximum of P5000 total claim/employee
~ summary appeal to NLRC within 5 calendar days
3. violation of the CBL and right and conditions of membership

ATTORNEY'S FEES
- Proceeding for recovery of wages
~ may be assessed against monetary benefits awarded (10%)
- CBA negotiations
~ charged against union funds in an amount to be agreed upon by parties

PRESCRIPTIVE PERIODS ULP

MONEY CLAIMS
OFFENSES UNDER Labor Code
ILLEGAL DISMISSAL

1 year
3 years
3 years
4 years

PETITION FOR CERTIFICATION ELECTION

A.
ORGANIZED ESTABLISHMENT (w/ CBA)
What:
verified petition for questioning the majority status of the incumbent
bargaining agent
When filed:
w/ CBA : within the 60 day period before the expiration of the CBA
W/o CBA: anytime except certification year rule OR deadlock-bar rule
With whom: DOLE (Regional Office)
Requisite: written consent of at least 25% of all employees in the
bargaining unit
~ under the law, 25% is not a requisite, but makes conduct of a CE
mandatory if submitted
~ under the rules, 25% is a requisite, absence of such is a ground for
dismissal of the petition.
B.
UNORGANIZED ESTABLISHMENT (no CBA)
1) petition by a legitimate labor organization (no 25% requirement)
2) employer when requested to bargain collectively
Certification election
Requirement for valid election -- majority of all eligible voters cast their votes
Union to be certified -- labor union receiving majority of the valid votes cast
Procedure:
Petition with decided w/in 20 file appeal w/ Regl Ofc but 15 days to decide; DeciMed-Arbiter
working days
it is Secretary who decides sion final & unappealable
Petition where no CBA : anytime
Except - within 1 yr. From date of issuance of a final certification election result
- after bargaining deadlock has been submitted (to which an incumbent
bargaining agent is a party) to conciliation/arbitration or became subject of
valid notice to strike or lockout
Run-off election
(within 5 calendar days from close of election)
3 or more choices
o
results of election - no choice received majority of valid votes cast
o
total # of votes for all contending unions at least 50% of total votes cast
THUS: conducted between labor unions receiving the 2 highest number of votes
Presumption: valid election, i.e. majority of eligible voters voted
Conduct Of Certification Election
notice of at least 5 working days before actual date (2 most conspicuous place)
election proper
- any party in interest may protest to be recorded in the minutes, otherwise, it is deemed
waived
(Protests must be formalized with Med-Arbiter within 5 days from close of election
proceedings)
If no protest, election officer proclaims and
certifies results

When a protest is perfected or any

challenge or eligibility issue raised, only the
Med-Arbiter can proclaim and certify the
winner within 20 working days from filing

Contents of Notice :
1
date of election
2
names of contending parties
3
description of bargaining unit
4
list of eligible voters

all employees in bargaining unit can vote

CHALLENGE: before employees cast vote
Abstention not valid vote

Four (4) Bars to holding a Certification Election:

1)

certification year -- w/in 1 yr. from issuance of a final certification election

result
Exception: unusual circumstances exist as when a change in the structure of the
membership of the contracting union occurs in such a way that a reasonable
doubt arises as to whether it remains the labor union which the employees
desired to represent them in the first place with an accompanying change in the
officials, constitution, by-laws, and bargaining authority of the contracting union.

2)

dead-lock bar rule -- during the existence of a bargaining deadlock to which

an incumbent or certified bargaining agent is a party and which had been submitted
to conciliation or arbitration or had become the subject of a valid notice of strike or
lock-out

3)

contract-bar rule -- during the existence of CBA

Exception: within the freedom period
*CBA need not be certified, need only to be registered under Art. 231
*Applies as well after the lapse of the 60 day freedom period when old
CBA is extended until a new one is signed

4)

negotiations bar -- when the duly recognized or certified union has

commenced negotiations with the employer in accordance with Article 250 of the
Labor Code within the one-year period of a certification year

Bargaining Representative -- LLO or any duly authorized officer or agent of such organization
whether or not employed by the employer
Certification Election -- process of determining, through secret ballot, the sole and exclusive
bargaining unit for purposes of collective bargaining
Consent Election -- election voluntarily agreed upon by the parties to determine issue of
majority
representation
of
all
workers
in
the
appropriate
collective
bargaining unit
where a petition for CE had been filed and, upon the intercession
of the Med-Arbiter, the parties agree to hold a consent election, the
results thereof shall constitute a bar to the holding of a CE for one
year from the holding of such consent election
where no PCE had been filed but the parties have agreed to hold
a consent election, the results thereof shall not constitute a bar to
another CE, unless the winning union had been voluntary
recognized.
Run-off Election -- election between the labor unions receiving the 2 highest number of votes
when a certification election which provides for 3 or more choices results in no choice receiving
majority of valid votes cast, where the total number of votes for all contending unions is at least
50% of the number of votes cast

Organized Establishment -- a firm or company where there is a recognized or certified

exclusive bargaining agent
Representation Officer -- person duly authorized to conduct and supervise certification
Elections
PETITION FOR CERTIFICATION ELECTION :
Who files:
a)
legitimate labor unions
b)
employer - when requested to bargain collectively
When filed
a)

b)

absence of CBA duly-registered -- any time

Except: certification year-rule (not w/in 1 year from issuance of
final C.E. result) deadlock bar rule (submitted to
conciliation/arbitration OR had become the subject of a valid
notice of strike/lockout
with a CBA duly-registered -- during the freedom period

25% support

BARGAINING NEGOTIATIONS
Request to Bargain by union => Counter-Proposal w/in 10 calendar days or reasonable period
of time
REGISTRATION OF CBA WITH BIR REGIONAL OFFICE
-- 5 copies within 30 calendar days from execution with verified proof of :
a. posting in 2 conspicuous places
b. ratification by majority of all workers
Regional office -- 2 copies;
NCMB -- 1 copy;
BLR -- 2 copies
-- registration fee of P1000.00 --- employer's cost
-- certificate of registration within 5 cd from receipt of agreement
Voluntary Arbitration :
- involves interpretation/construction of :

CBA
Company Personnel Policies

any person accredited by the NCMB as such or any person named or designated in the
CBA by the parties to act as their voluntary arbitrator
one chosen with or without the assistance of the NCMB pursuant to a selection procedure
agreed upon in the CBA or any official that may be authorized by the Secretary of Labor and
Employment t act as voluntary arbitrator upon the written request and agreement of the
parties to a labor dispute.
Powers:
holds hearings
receive audience
take whatever action is necessary to resolve the issue subject of the dispute
Procedure:
all parties entitled to attend proceedings
adjournment for cause or upon agreement of the parties
decision within 20 calendar days from submission
final/executory after 10 calendar days from receipt

Cost:
proportionate sharing scheme in the CBA
fixing of fee (factors to be considered)
a. nature of the case
b. time consumed in hearing the case
c. professional standing of the voluntary arbitrator
d. capacity to pay of the parties
e. fees provided for in the Rules of Court
shared equally by parties unless agreed otherwise
Special Voluntary Arbitration Fund
administered by the NCMB
amount of subsidy in appropriate cases shall e determined by the NCMB upon
recommendation of the Council
Labor-Management Committee
no LLO exists
formed voluntarily by workers and employees for the purpose of promoting industrial
peace
Labor-Management Council
organized establishment
enable workers to participate in policy and decision making process in the
establishment insofar as said processes will directly affect their rights, benefit and
welfare except those which are covered by CBA's or are traditionally areas of
bargaining
RA 6971 -- Productivity Incentives Act of 1990
Labor-Management Committee
- both management and labor shall have equal voting rights
- representations of labor
organized -- designated by the Collective bargaining agents in the bargaining unit
unorganized -- elected by at least a majority of all rank and file employees who have
rendered at least 6 months of continuous service
Productivity Incentives Program
- contains provisions for the manner of sharing and the factors in determining productivity
bonuses
- productivity granted ,1/2 (percentage increase in the productivity of the business enterprise)
- granted salary bonuses = increases in current productivity over the average for the
preceding 3 consecutive years
- entitles employer to special deduction from gross income equivalent of 50% of the total
allowable ordinary and necessary business deductions for said bonuses under the NIRC
Strike : any temporary stoppage of work by concerted action of employees as a result of an
industrial labor dispute
: not a strike: mass resignation
Lockout : temporary refusal of an employer to furnish work as a result of an industrial or labor
dispute
Internal Union Dispute - includes all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by-laws of a
union, including any violation of the rights and conditions of union
member ship provided for in this Code
Strike Breaker -- any person who obstructs, impedes, or interferes with by force, violence,
coercion, threats, or intimidation, any peaceful picketing by employees
during any labor controversy affecting wages, hours, and conditions of work
or in the exercise of the right of self-organization or collective bargaining
Strike Area : -- establishment, warehouses, depots, plants or offices, including the sites or
premises used as run-away shops of the employer struck against as well as

the immediate vicinity actually used by picketing strikers in moving to and fro
before all points of entrance to and exit from said establishment
Valid Purpose for Concerted Activities
collective bargaining
mutual benefit and protection
Grounds for strikes and lockouts :
Deadlock [after reasonable efforts]
ULP [good faith of the strikers as to the existence of ULP is sufficient, depending on
circumstances]
* violations of CBA that are not flagrant and/or malicious refusal to comply with its
economic provisions are not ULP; not strikeable
Personality : LLO or recognized bargaining agent in case of economic strike

1. NOTICE OF STRIKE :
Bargaining deadlocks ----------
ULP
----------

Cooling off period

30 days
15 days
Dispensed with if duly elected officer of union is
dismissed such as to constitute union busting
Duty of DOLE to exert all efforts at mediation and
conciliation to effect a voluntary settlement
30 day/15 day cooling off period mandatory
except : cases of union-busting
7-day strike ban mandatory

2. STRIKE VOTE: decision must be

approved by a majority of the total
union membership in the bargaining
unit concerned obtained by secret
ballots in meetings or referenda
called for that purpose (or of the BoD
of the corp. case of a lockout)
3. REPORT OF STRIKE VOTE
RESULTS: DOLE must be furnished
with the results of the voting at least
7 days before the intended strike or
lockout subject to the cooling off
period (7 day strike ban)
DOLE informed of meeting 24
hours before
Peaceful Means :
Violence not pervasive and widespread
Ingress and egress rule
Assumption of Jurisdiction by Secretary of Labor (resolved within 30 calendar days)
1.
Discretionary
~ In his opinion there exists a labor dispute causing or likely to cause a strike or lockout
in an industry indispensable to the national interest
may certify the same to the commission for compulsory arbitration
Effect: automatically enjoins the intended on impending strike or lockout but if one has
already taken place, all striking or locked out employees shall immediately return to work
and the employer shall immediately resume operations and re-admit all workers under
the same terms and conditions prevailing before the strike or lock-out
2.

Mandatory: (within 24 hours)

~ In labor disputes adversely affecting the continued operation of hospitals, clinics, or
medical institutions
Duty of striking union or locking out employer to provide and maintain an effective
skeletal workforce of medical and other health personnel, where movement and
service shall be unhampered and unrestricted as are necessary to insure the proper

and adequate protection of the life and health of its patients most especially
emergency cases for the duration of the strike or lock-out
*President of the PI : may determine the industries, which are in his opinion indispensable to
national interest. He may intervene at any time and assume jurisdiction over any such labor
dispute in order to settler or terminate the same
*Decision of the President, Secretary of labor, NLRC => final and executory after receipt thereof
by the parties
PROHIBITED ACTIVITIES:
1)
strike or lock-out without first having bargained collectively
2)
strike or lock-out without the necessary notice being filed with the DOLE
3)
strike or lock-out without the necessary vote first having been obtained and reported
to the DOLE
4)
strike or lock-out after DOLE has assumed jurisdiction or the President or after
certification or submission of dispute to the compulsory arbitration/voluntary
arbitration or during the pendency of cases involving the same grounds for the strike
or lockout
5)
knowingly participating in illegal strike/knowingly participates in the commission of
illegal acts during a strike ground for termination of employment
6)
obstruct, impede, or interfere with by force, violence, coercion, threats, or intimidation
any peaceful picketing by employees during any labor contriversy or shall abeit or aid
such obstruction or interference
7)
employment or use of any strikebreaker/ employed as a strike breaker
8)
bringing in, introducing, or escorting by any public officer or employee, including
officers and personnel of the AFP or PNP, or any armed person in any manner of
any individual who seeks to replace strikers in entering or leaving the premises of a
strike area or work in place of strikers
9)
commit any act of violence, coercion or intimidaion while engaged in picketing or
obstruct the ingress or egress from the employer's premises for lawful purposes or
obstruct public thoroughfares
(must be pervasive and widespread/consistently and deliberately resorted
to as a matter of policy)
**See Sec. 7 (g) of D.O. 9 regarding prohibition on contracting out a job, work or service
directly related to the business or operation of the principal by reason of a strike or
lockout whether actual or imminent.
Improved Offer Balloting
~ Referendum by the DOLE on the improved offer of the employer or on the reduced offer of
the union (on or before the 30th day of the strike or lock-out)
where at least a majority of the union members/BOD, trustees, or the partners holding the
controlling interest vote and accept the improved/reduced offer, the workers shall
immediately return to work and the employer shall thereupon readmit them upon the signing
of the agreement
Requirement for Arrest, Detention of Union Members/Organizers for union Activities
General Rule :
previous consultations with the Secretary of Labor
Exception
:
grounds of national security and public peace
:
in case of commission of a crime

GUIDELINES FOR THE CONDUCT OF THE INP/AFP PERSONNEL DURING

STRIKES/LOCKOUT AND LABOT DISPUTES IN GENERAL
Involvement limited to the :
a)
maintenance of peace and order
b)
enforcement of laws and legal order of duly constituted authorities
c)
performance of special functions as maybe provided by law
1) elements of the Police Force should first be called upon to render assistance
2) when it is unavailable or inadequate, CAPCOM or METRODISCOM may call upon the
Constabulary to render assistance
3) personnel from the army, Navy, or Air Force only when directed by the President or
personally by the Secretary of National Defense upon consultation with the Secretary of
Labor and Employment or when requested by the latter.
*Personnel related by affinity or consanguinity within the 4 th civil degree to any official/leader of
the parties in the controversy or has any financial or pecuniary interest therein - not allowed to
render services in connection with a strike or lock-out
PEACE-KEEPING DETAIL
personnel detailed shall be in uniform, with proper namecloth at all times, personnel
shall observe strict neutrality in his dealings with both parties to the controversy
stationed such that their presence may deter the commission of criminal acts from
either side
maintain themselves outside a 50 meter radius from the picket line except if the 50
meter radius includes a public thoroughfare, they may station themselves in such
public thoroughfares for the purpose of insuring the free flow of traffic
ARRESTS/SEARCHES AND SEIZURES
effected only on the basis of an existing and valid warrant
any person who obstructs the free and lawful ingress to and egress from the
employer's premises or who obstructs public thoroughfares may be arrested and
accordingly charged in court
as well as any person who shall have in his possession deadly weapons in violation
of BP Blg. 06 such as knives, bolos, blunt or pointed instruments and firearms or
explosives in violation of PD 1896
Service of DOLE, Court or Lawful Orders/Writs
primary concern of the DOLE representatives, sheriff, representative of the govt.
agency issuing the order respectively
role of the AFP/INP is only supportive
Administrative Jurisdiction
determination of whether a strike, picket or lock-out is legal or not should be left to
DOLE
personal escort only upon direction of competent authority
other party shall be informed accordingly
all escorts shall be in uniform at all times
Socializing/Liaison
discouraged from socializing with any of the parties involved during the pendency
shall not, under any pretext, accept an invitation from either of the parties
liaison established and maintained with representatives of DOLE, mgmt., and union
for the purpose of maintaining peace and order as well as to maintain a continuing
peaceful dialogue
Administrative Action
all complaints/reports leveled against any personnel of the INP/AFP on the occasion of
strike/lock-out shall be acted with dispatch
whenever applicable, and if the evidence so warrants, appropriate disciplinary action
shall be takes against the erring personnel