COURSE OUTLINE

LABOR LAW 2: LABOR RELATIONS

Prof. Augusto L. Villanueva
Labor Arbiter
AY-2014-2015 (2nd Semester)
Course Description
Labor Law II covers Labor Relations which regulates the relationship between the employees
and employer. In the Labor Code of the Philippines, it includes Book V (Articles 211 to 277) and
Book VI (Articles 278 to 287). The remaining Book VII (Transitory and Final Provisions) of the
Labor Code is likewise made part of this course.
Integrated in the course is the study of establishing an organized union and conducting mock
collective bargaining negotiations in order to immerse the students on the practical application of
the provisions of the Labor Code on labor relations.
Course Learning Objectives
At the end of this course, students will be able to:

Critically understand the provisions of the otherwise dynamic nature of the Labor
Code and related laws;
Equip them to prepare for the Bar Exams; and
Intelligently apply their knowledge of labor and employment law in the practice of
profession.

Course Text/Literature
1. 1987 Constitution of the Philippines
2. Labor Code of the Philippines, PD 442, as amended, and the Omnibus Rules
Implementing the Labor Code
3. Supreme Court Decisions (SCRA)
4. Special Laws related to labor relations
5. Policy Instructions, Department Orders (DOs), Executive Orders (EOs)
Suggested Textbooks
Labor Code of the Philippines
The 2011 NLRC Rules of Procedure
Azucena, Labor Code with Annotations, Volume II
Joselito Guianan Chan, The Labor Code of the Philippines Annotated, Volume II, Labor
Relations and Termination of Employment, 2009 Ed.
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PART I
Introduction to Labor Relations
1. Definition of Labor Relations
2. Distinctions between Labor Relations and Labor Standards
3. Constitutional Basis of Labor Relations

Social Justice and Human Rights: Section 3, Article XII

Declaration of Principles and State Policies: Section 18, Article II
Bill of Rights: Sections 4, 8, 11, and 16, Article III
The Civil Service Commission: Section 2 (3), (5) and (6), Article IX(B)
National Economy and Patrimony: Sections 1 and 12, Article XII
General Provisions: Section 9, Article XVI

4. Agencies Implementing Labor Relations Law

NLRC: Article 213

Labor Arbiter: Article 217
Regional Office/Bureau of Labor Relations: Article 226
National Conciliation and Mediation Board: Executive Order 126; Section 1(e),
Rule I, Book V, Rules to Implement the Labor Code, as amended by DO 40-03,
Series of 2003 (17 February 2003)
Grievance Machinery and Voluntary Arbitration: Article 260

PART II
Jurisdiction of Implementing Agencies
Statutory Terms:
Article 212 Employer (e), Employee (f), Labor Organization (g), Legitimate Labor
Organization (h), Company Union (i), Bargaining Representative ((j), Unfair Labor
Practice (k), Labor Dispute (l), Managerial Employee (m), Voluntary Arbitrator (n), Strike
(o), Lockout (p), Internal Union Dispute (q), Strike Breaker (r), Strike Area (s);
Certification Election Articles 255, 256, 257, and 258;
Collective Bargaining Unit; and
Collective Bargaining Agreement

A. The National Labor Relations Commission

1. National Labor Relations Commission, Article 213

Headquarters, Branches, and Provincial Extension Units, Article 214

Appointment and Qualifications, Article 215
Salaries, Benefits, and Other Emoluments, Article 216

2. Jurisdiction of the Labor Arbiters and the Commission, Article 217

Original and Exclusive Jurisdiction of Labor Arbiter

Original Jurisdictions of the Commission
Exclusive Appellate Jurisdiction of the Commission
Powers of the Commission, Article 218
Ocular Inspection, Article 219
Compulsory Arbitration, Article 220

3. Technical Rules Not Binding and Prior Resort to Amicable Settlement, Article 221
4. Appearances and Fees, Article 222
5. Appeal, Article 223

Grounds for Appeal

Requisites for Perfection of Appeal

6. Execution of Decisions, Orders, or Awards, Article 224

7. Contempt Powers of the Secretary of Labor, Article 225

B. The Bureau of Labor Relations

8. Bureau of Labor Relations, Article 226
9. Compromise Agreements, Article 227
10. Indorsement of Cases to Labor Arbiters, Article 228
11. Issuance of Subpoenas, Article 229
12. Appointment of Bureau Personnel, Article 230
13. Registry of Union and File of Collective Bargaining, Article 231
14. Privileged Communication, Article 233
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C. Grievance Machinery and

Voluntary Arbitration
14. Grievance Machinery and Voluntary Arbitration, Article 260
15. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators, Article 261
16. Jurisdiction over Other Labor Disputes, Article 262
17. Procedure, Article 262-A
18. Cost of Voluntary Arbitration and Voluntary Arbitrators Fee, Article 262-B
D. National Conciliation and Mediation Board (NCMB)
19. Executive Order 126, Section 1(e), Rule I, Book V, Rules to Implement the Labor Code,
as amended by DO 40-03, Series of 2003 (17 February 2003)

PART III
Kinds of Employment/Employee Classification

1. Regular, Casual Employment and Probationary Employment, Articles 280 and 281

A. Regular Employment, Articles 280 and 75(d); Omnibus Rules, Book IV, Rule I,
Sections 5(a), (b), and 6; Article 281 and Section 5, Rule I, Book VI)

A.1 By nature of work, an employment is deemed regular when an employee is engaged

to perform activities, which are usually necessary or desirable to the business or trade of
an employer EVEN if there is a written or oral agreement to the contrary.

Hacienda Fatima v National Federation of Sugarcane Workers Food and General

Trade, 396 SCRA 518

Association of Trade Unions (AU) v Abella, GR 100518, 24 January 2000

ABS-CBN Broadcasting Corp. v Nazareno, GR 164156, 26 September 2006

Brent School, Inc. v Zamora, GR 48494, 5 February 1990

Columbus Philippines Bus Corp. v NLRC, GR 114858-59, 7 September 2001

Singer Sewing Machine Company v Drilon, GR 91307, 21 January 1991

Sonza v ABS-CBN Broadcasting Corp., GR 1380051, 10 June 2004 as against

Dumpit Murillo v CA, GR 164652, 8 June 2007

ABS-CBN Broadcasting Corporation v Marquez, GR 167638, 12 June 2005

Consolidated Broadcasting System, Inc. v Oberio, GR 168424, 8 June 2007

Orozco v The Fifth Division of the Honorable Court of Appeals, GR 155207, 13

August 2008

A.2 By period of service, an employment is considered regular when an employee has

rendered at least one (1) year, whether continuous or broken, on such activity in which
he is employed and his employment shall continue while such activity exists.

Audion Electric Co. Inc. v NLRC, 308 SCRA 340

Universal Robina Corporation v Catapang, 473 SCRA 189

Abesco Construction and Development Corp. v Ramirez, 487 SCRA 9

A.3 By probationary employment, an employee who is allowed to work after a

probationary period (not to exceed six (6) months) shall be considered regular.
a. Statutory Definition of Probationary Employment, Article 281
b. Nature of Probationary Employment

Philippine Federation of Credit Cooperatives, Inc. v NLRC, GR 121071, 11

December 1998

c. Computation of the Six-Month Probationary Period

Cals Poultry Supply Corp. v Roco, GR 150660, 30 July 2002

d. Application of Article 13 of the Civil Code in the Computation of Six-Month

Probationary Period
Mitsubishi Motors Phil. Corp. v Chrysler Phils. Labor Union, GR 148738, 29
June 2004
e. Extension of Probationary Period relaxed by the Supreme Court
Mariwasa Manufacturing, Inc. v Leogardo, GR 74246, 26 January 1989
f. Repetitive Probationary Period
Villanueva v NLRC, GR 127448, 10 September 1998
g. Stipulation in Employment Contract fixing the period of Probationary Period
Innodata Phils., Inc. v Quejada Lopez, GR 162839, 12 October 2006
h. Exception to Probationary Period exceeding Six-Month Period
Buiser v Hon. Leogardo, GR 63316, 31 July 1984

i. Probationary Period for Different Workers:

1. Probationary Period of Apprentices
Section 6(a), Rule I, Book VI, Implementing Rules as amended by Article 5, DO
10, Series of 1997

Nito Enterprises v NLRC, GR 114337, 29 September 1995 effect of

apprenticeship agreement not registered with DOLE

2. Probationary Period of Learners

Not to exceed three (3) months, Article 75
3. Probationary Period of Handicapped Learners
Impaired by age or physical and mental deficiency or injury, Articles 78 & 81
4. Probationary Period of Teachers
1992 Manual of Regulations for Private Schools (Section 92), Article 280 not
applicable
5. Requirements for regularization of Private School Teachers

Chiang Kai Shek School v CA, GR 58028, 18 April 1989

Espiritu Santo Parochial School v NLRC, GR 82325, 26 September 1989

6. The Magna Carta for Public School Teachers Civil Service Eligibility,
Section 4 (Probationary Period), No. II, RA 4670
7. Probationary Period of Part-Time Employees
Completion of the six(6)-month period for such number of hours or days Acting
DOLE Sec. Jose S. Brillantes.

2. Project Employment; Article 280, 1st paragraph, Section5(a), Rule I, Book VI,
Implementing Rules and Regulations, as amended by Rule IV, which was further amended
by Article IV, DO 19, Series of 1993, amending PO 20 (Guidelines Governing the Workers
in the Construction Industry)
2.A Nature of Project Employment an employment has been fixed for a specific project
or undertaking, the completion or termination of which has been determined at the time
of the engagement of the employee or where the work or service to be performed is
seasonal in nature and the employment is for the duration of the season.
a. Definition and Nature of Project Employment

Hanjin Heavy Industries & Construction Co. v Ibaez (2008), nature of project
employment

b. Indicators of Project Employment, Section 2.2, DO 19, Series of 1993

Cocomangas Hotel Beach Resort v Visca, GR 167045, 29 August 2008

c. Employees should be notified of their status as project employees only.

Abesco Construction and Development Corp. v Ramirez, GR 141168, 20 April

2006

d. The employment contract is only signed by the president and the manager but not the
employee concerned.

Raycor Aircontrol Systems, Inc. v NLRC, GR 114290, 9 September 1996

e. Consent must be knowingly and voluntarily and without force, duress or improper
pressure.

Caramol v NLRC, GR 102973, 225 SCRA 582

f. Exception to Article 280, a fixed-period employment, a day certain; requisites

Brent School, Inc. v Zamora, GR 48494, 5 February 1990

g. Absence of a provision in the contract of employment of specific project or

undertaking

Price v Innodata Phils.,/Innodata Corp., GR 178505, 30 September 2008

h. No notice that employees were appraised of the nature of employment, the specific
projects or any phase thereof

Chua v CA, GR 125837, 6 October 2004

i. Elements before a project employee attains the status of a regular employee

Maraguinot, Jr. v NLRC, GR 120969, 22 January 1998

2.B Work Pool Employment, Policy Instruction 20

a. Classification of Work Pool
1. Non-project Employees
2. Project Employees
3. Regular Project Employees

Tomas Lao Construction v NLRC, GR 116781, 5 September 1997

b. Work Pool in industry other than in construction business

c. Application of Work Pool in the business of data encoding

Imbuido v NLRC, GR 114734, 31 March 2000

2.C Two (2) Types of Project Employment

1. Project that is within the regular trade or business of the employer

Magcalas v NLRC, GR 100333, 13 March 1997

2. Project not within the regular trade or business of the employer

Villa v NLRC, GR 117043, 14 January 1998

d. Definition of Specific Project or Undertaking

Tucor Industries, Inc. v NLRC, GR 96608, 20 May 1991

e. The absence of a definite duration for the projects leads to no other conclusion but that
the employment is regular.

PNOC-Energy Development Corp. v NLRC, GR 169353, 13 April 2007

f. Lack of evidence to prove that the employment is project.

Olongapo Maintenance Services, Inc. v Chantengco, GR 156146, 21 June 2007

g. Worker hired on a phase project can be dismissed on completion of such phase project
and not coterminous with the completion of the whole project; termination of phase of a
project.

Saberola v Suarez, GR 151227, 14 July 2008

h. Project-to-Project basis of employment

Sandoval Shipyard, Inc. v NLRC, GRs L-65689 and 66119, 31 May 1985

i. Engaged in contracting electrical services depending on the availability of projects or

works

Cartagenas v Romago Electric Co. Inc., GR 82973, 15 September 1989

j. Repeated rehiring of project-to-project employment (e.g. 44 times)

Samson v NLRC, GR 113166, 1 February 1996

k. The length of service of project employees is not the controlling factor.

D.M. Consunji, Inc. v NLRC, GR 116572, 18 December 2000

l. Rehiring of the employees on a project-to-project basis does not ipso facto make their
employment regular.

Cioco v C. E. Construction Corp., GR 156748, 8 September 2004

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m. Employees were rehired on interval basis.

Caseres v Universal Robina Sugar Milling Corp., GR 159343, 28 September 2007

n. Repeated Extension of Employment Contracts Make the Employment Regular

Tomas Lao Construction v NLRC, GR 116781

3. Seasonal Employment, Article 280; Section 5, Rule I, Book VI, Implementing Rules
a. Seasonal workers do not become regular employees even after one (1) year of service.

Mercado v NLRC, GR 79869, 5 September 1991

b. Seasonal workers become regular employees after one (1) year of service.

Tacloban Sagkahan Rice and Corn Mills, Co. v NLRC, GR 73806, 21 March
1990

c. Requisites in order that seasonal employment may be regular employment

Hacienda Fatima v National Federation of Sugarcane Workers-Food and General

Trade, 28 January 2003

Abasolo v NLRC, GR 118475, 29 November 2000

4. Casual Employment, Article 280; Section 5(b), Rule I, Book VI, as amended by Article IV,
DO 10, Series of 1997
a. Casual employee needs no appointment paper to be a regular employee after one (1)
year of service.

Kimberly Clark (Phils.) v Secretary of Labor, GR 156668, 23 November 2007

b. Repeated rehiring of casual employees makes them regular employees.

Tan v Lagrama, GR 151228, 15 August 2002

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5. Fixed-Term Employment

Brent School, Inc. v Zamora and Alegre, GR 48494, 5 February 1990

a. Requisites for a valid fixed-term contract of employment

PNOC v NLRC, GR 97747, 31 March 1993

b. Duties (need not) are usually necessary or desirable in the employers usual business or
trade.

AMA Computer College Paraaque v Austria, GR 164078, 25 November 2007

Pantranco North Express, Inc. v NLRC, GR 106654, 16 December 1994

c. Fixed-term employment for less than six (6) months same with probationary
employment

Caparoso v NLRC, GR 155505, 15 February 2007

d. Employees employment contract on a five (5)-month period

Pure Foods Corp. v NLRC, GR 122653, 12 December 1997

Universal Robina Corp. v Catapang, GR 164736, 14 October 2005

e. Employees allowed to work after the fixed period of employment become regular.

Viernes v NLRC, GR 108405, 4 April 2003

f. Employees allowed to work for more than one (1) year become regular.

Megascope General Services v NLRC, GR 109224, 19 June 1997

Agusan del Norte Electric Coop., Inc. v Cagampang and Garzon, GR 167627, 10
October 2008

g. Successive renewals of fixed period employment contract become regular.

Philips Semiconductors v Fadriquela, GR 141717, 14 April 2004

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