GENERAL PRINCIPLES

LABOR RELATIONS: The interactions between the employer and

employee or their representatives and the mechanism by which
the standards and other terms and conditions of employment are
negotiated, adjusted, and enforced.
ART. XII, Sec 3 (1987 Constitution): Guarantees to all workers
their right, among others to: (1) self-organization, (2) collective
bargaining and negotiations, (4) peaceful and concerted activities,
including their right to strike in accordance with law, and (4)
participate in policy and decision-making processes, affecting their
rights and benefits as may be provided by law.
LABOR ORGANIZATION: Any union or association of
employees, which exist in whole or in part, for the purpose of
collective bargaining with employers, concerning the terms and
conditions of employment
LEGITIMATE LABOR ORGANIZATION: Any labor organization
duly registered with DOLE.
COMPANY UNION: Any labor organization whose formation,
function, or administration has been assisted by any act defined as
ULP.
LABOR DISPUTE: Includes and controversy or matter
concerning:
(1) Terms or conditions of employment;
(2) Association or representation of persons in
negotiating the terms and conditions of employment,
regardless of whether the disputant stands in the
proximate relation of employer and employee.
COMPULSARY ABITRATION (MANDATORY CONCILIATIONMEDIATION): The process of settlement of labor disputes by a
government agency, which has the authority to investigate and
make award binding on all the parties (Art. 234). LA and NLRC (in
the exercise of its original jurisdiction) shall exert all efforts
towards the amicable settlement (Art. 227). A result of which may
be a compromise agreement, under Art. 233. Relate further to
Single Entry Approach (SEnA).
Requirements
for
Compromise
Agreement:
SUBSTANTIAL: (1) It must be freely entered into; (2) It must not
be contrary to law, morals, or public policy; (3) It must be
reasonable; (4) It must be approved by the authority before whom
the case is pending; FORMAL: (1) In writing; (2) Signed in the
presence of the authorities
EMPLOYER and EMPLOYEE
EMPLOYER: One who employ the services of others; any person
acting in the interest of the employer
EMPLOYEE: Any person in the employ of the others/employer
MANAGERIAL EMPLOYEE: One who is vested with powers and
prerogatives to lay down and execute management policies and/or
to hire, transfer, discipline, suspend, or discharge employees.

SUPERVISORY EMPLOYEE: Those who, in the interest of the

employer, effectively recommend managerial actions and the
exercise of such authority is not merely routinary or clerical.
Absent an ER-EE relationship, there is no labor relation to
speak of. If there is no ER-EE, there is no basis of organizing
for purposes of collective bargaining.
FOUR-FOLD TEST: (SePa-DisCo)
(1) Selection and engagement of employee;
(2) Payment of Wages;
(3) Power of Dismissal;
(4) Power of Control (refers to the employers power to
control or the right to control the employee NOT ONLY
AS TO THE RESULT OF THE WORK, but also TO THE
MEANS AND METHODS by which the same is to be
accomplished)
CONSEQUENCES OF VIOLATION OF WORKERS RIGHT TO
SECURITY OF TENURE (ART. 294):
(1) Reinstatement without loss of seniority
(2) Full backwages, inclusive of allowances and other
benefits
(3) Recovery of moral and exemplary damages and
attorneys fees
REINSTATEMENT: The restoration of the employee to the state
from which he has been unjustly removed or separated, without
loss of seniority rights and privileges.
DOCTRINE ON REINSTATEMENT PENDING APPEAL (Garcia
v. PAL; Pfizer v. Velasco; WenPhil v. Abing):
In cases the Labor Arbiter orders a reinstatement, it is
obligatory on the part of the employer to reinstate the employee
and pay his wages, during the period of appeal, until the decision
of the LA is reversed by a higher court or tribunal.
Reinstatement ordered by the LA is self-executory and
immediately executory, as it needs no writ of execution to
implement the order of reinstatement.
The employee is not required to reimburse whatever
salary he received, for he is entitled to such. (Art. 229)
BACKWAGES: Relief given to an employee to compensate him
for lost earnings, during the period of his dismissal. It presupposes
illegal termination. Latest jurisprudence posits that FULL
BACKWAGES must be given, regardless if, during the pendency
of the case, the employee acquired compensation from other
employment.
TYPES OF EMPLOYMENT (Art. 295 for Regular, Casual, Project,
Fixed-Term, and Seasonal; Art. 296 for Probationary):
(1) REGULAR: Employment arrangement where the
employee (a) has been engaged to perform
activities, which are usually necessary and
desirable in the usual business or trade of the
employer or (b) has rendered at least one year of
service, whether such service is continuous or
broken, with respect to the activity in which he is
employed (casual-turned-regular).

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

(2) CASUAL: Employment arrangement where the

employee has been engaged to perform activities,
which are not necessary or desirable in the usual
business or trade of the employer.
(3) PROJECT: Employment arrangement where the
employment has been fixed for a specific project
or undertaking, the completion or termination of
which has been determined at the time of
engagement of the employee.
(4) FIXED-TERM: Employment arrangement where the
employment has been fixed for a specific period
which are usually necessary and desirable in the
usual business or trade of the employer
(5) SEASONAL: Employment arrangement where the
employee has been engaged to work during a
particular season.
(6) PROBATIONARY: Employment arrangement where
the employee, upon his engagement, is made to
undergo a trial period, during which the
employer determines his fitness to qualify for
regular employment, based on reasonable
standards made known to him at the time of his
engagement.
TEST TO DETERMINE TYPE OF EMPLOYMENT (Universal
Robina Sugar Milling Corp. v Acibo): The nature of the
employment does not depend solely on the will or word of the
employer or on the procedure for hiring and the manner of
designating the employee. Rather, the nature of the employment
depends on the nature of the activities to be performed by the
employee, considering the nature of the employers business, the
duration and scope of the work done, and, in some cases, even
the length of time of the performance and its continued existence.
NATIONAL LABOR RELATIONS COMMISSION
and its LABOR ARBITERS
COMPOSITION: Tripartism; 1 Chairman, 23 Commissioners (7
from Public Sector, 8 from Workers Organizations, 8 from ER
Organizations)
POWERS OF NLRC: (ICORIC)
(1) To Investigate and Decide Cases (Art. 225)
(2) To Issue Compulsary Processes (Art. 225)
(3) To Conduct Ocular Inspections (Art. 226)
(4) To Promulgate Rules and Regulations (Art. 225)
(5) To Issue Injunctions (Art. 225)
(6) To hold any person in Contempt (Art. 225)
JURISDICTION OF NLRC:
Exclusive and Original (VIC2)
(1) Certified Cases for compulsory arbitration
on strikes and lockouts in an industry
indespensible to the national interest by the
DOLE Sec. (Art. 278) or by the President
(Art. 279)
(2) Injunction cases (Art. 225) on situations
when the prohibited or unlawful act IN ANY
LABOR DISPUTE if not restrained or

performed, may cause grave or irreparable

damage to any party or may render
ineffectual any decision in favour of such
party
(3) Contempt Cases (Art. 225)
(4) Verified Petition (Rule XII, NLRC Rules)
by a party aggrieved by any order or
resolution of the Labor Arbiter, including
those issued during execution proceedings
to annul or modify such order or resolution,
IF THERE IS NO APPEAL OR ANY
OTHER
PLAIN,
SPEEDY,
AND
ADEQUATE REMEDY in the ordinary
course of law.
Exclusive Appellate (LRC)
(1) Cases decided by LA (ART. 224)
(2) Cases decided by Regional Offices of
DOLE (RD or any duly authorized hearing
officer of DOLE) in the exercise of its
adjudicatory function, under Art. 129 over
monetary claims of workers amounting to
NOT MORE THAN P5,000 with no claim for
reinstatement
(3) Contempt Cases decided by LA
Petitions for Certiorari, under Rule 65, against decisions of
NLRC should henceforth be initially filed with CA in strict
observance of the doctrine of hierarchy of courts.
LABOR COURTS v. REGULAR COURTS: If there is a
reasonable causal connection between the claim asserted and the
ER-EE relationship, then the case is within the jurisdiction of labor
courts. In the absence of such, it is the regular courts that have
jurisdiction.
If the claim arises from contract, such as those entered
into by the principal (direct employer) and the independent
contractor, regular courts have jurisdiction, in line with the
application of the provisions of the New Civil Code.
LABOR COURTS v. CIVIL SERVICE COMMISSION: If the case
involves GOCCs, with original charters, jurisdiction is with CSC,
applying civil service law. If the GOCC is created under the
general law on incorporation (Corporation Code), jurisdiction is
with labor courts, applying labor laws. (Juco v NHC)
JURISDICTION OF LABOR ARBITER:
Exclusive and Original (Art 224)
(UTR-DP-5000-VOWC)
(1) Unfair labor practice cases
(2) Termination disputes (illegal dismissal)
(3) Cases that workers may file, involving terms
and conditions of employment, if
accompanied with reinstatement
(4) Claims for actual, moral, exemplary, and
other damages, arising from ER-EE
relations
(5) Cases arising from (Prohibited Activities)
violation of Art 264 (old numbering) of the

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

Labor Code, including questions involving

legality of strikes and lockouts
(6) Except claims for Employee Compensation,
Social Security, PhilHealth, and maternity
benefits, all other claims arising from EREE relations, involving an amount
exceeding P5,000, regardless of whether
accompanied with reinstatement
(7) Cases under Art. 128 on the Visitorial and
Enforcement Powers of DOLE Sec., when
the employer contests the findings of the
labor employment and enforcement officer
and raises issues supported by
documentary proofs, which were not
considered in the course of inspection.
(8) Monetary claims and claim for damages of
Overseas Contract Workers (RA 8042)
(9) Wage distortion disputes in unorganized
establishments (RA 6727)
(10) Enforcement of compromise agreement,
when there is non-compliance by any of
the parties, pursuant to Art. 233)
(11) Others as may be provided by law
Exception to the Exclusive and Original Jurisdiction
of Labor Arbiters
(1) When Sec. of DOLE or the President
exercises jurisdiction over national interest
cases and decide them himself (Art. 279)
(2) When the NLRC exercises its power of
compulsory arbitration over certified cases
over national interest (Art. 278)
(3) Cases of involving interpretation and
implementation of CBA (Art. 224) must be
referred to the grievance machinery and
voluntary arbitration
(4) Cases of interpretation and enforcement of
company policies (Art. 224) must be
referred to the grievance machinery and
voluntary arbitration
(5) When parties agree to submit the case to
voluntary arbitration panel, pursuant to Art.
274 and 275
DETERMINING JURISDICTION OF DOLE SEC., REGIONAL
DIRECTOR, AND LABOR ARBITER, IN RELATION TO
ARTICLES 128, 129, AND 224:
This was discussed in Peoples Broadcasting
(BomboRadyo) v. Sec. of DOLE.
DOLEs prerogative to determine the existence of ER-EE
relationship is not coextensive with the visitorial and enjoyment
power. Such determination is merely preliminary, incidental, and
collateral to the DOLEs primary function of enforcing labor
standards provisions. The existence of an ER-EE relationship is a
statutory prerequisite to and a limitation on the power of the Sec.
of DOLE
Thus, we must determine where the complaint is filed and
whether there is an existing ER-EE relationship.

(1) If a complaint is brought before DOLE to give effect

to the labor standards provisions of the Labor Code
or other labor legislation, and it finds that;
THERE IS AN EXISTING ER-EE
RELATIONSHIP, THE DOLE EXERCISES
JURISDICTION TO THE EXCLUSION OF THE
NLRC.
THERE IS NO EXISTING ER-EE
RELATIONSHIP, THE JURISDICTION IS
PROPERLY WITH NLRC.
If a complaint is brought before DOLE, is in the
nature of a monetary claim, and it is accompanied by
a claim for reinstatement (meaning there is no
existing ER-EE relationship), the jurisdiction is
properly with NLRC. Otherwise, if there is no claim
for reinstatement and the aggregate amount of claim
exceeds P5,000, jurisdiction is properly with
Regional Director of DOLE, pursuant to Art. 129.
(2) If a complaint is brought before NLRC, and THERE
IS STILL AN EXISTING ER-EE RELATIONSHIP,
THE JURISDICTION IS PROPERLY WITH DOLE.
Decisions of Sec. of DOLE are appealable to CA by Rule
65; then to SC by Rule 45.
Decisions of RD are appealable to NLRC, which decision
is further appealable to CA by Rule 65; then to SC by Rule 45.
Decision of LA are appealable to NLRC, which decision is
further appealable to CA by Rule 65; then to SC by Rule 45.
APPEAL
ART. 229: Decisions, awards, and orders of Labor Arbiters,
unless appealed to the NLRC by any or both parties, within 10
calendar days, from receipt of such decisions, awards, or orders.
The perfection of an appeal within the
statutory/reglementary period is not only MANDATORY,
but also JURISDICTIONAL and failure to do so renders
the questioned decision final and executory.
REQUISITES FOR PERFECTION OF APPEAL:
(1) It must be filed within reglementary period; 10
days from LA or 5 days from RD
(2) Filing of a Verified Memoradum of Appeal
containing the grounds, issues raised,
arguments propounded, and reliefs sought, with
a statement of the date the appellant received
the appealed decision, award, or order
(3) In three copies
(4) Proof of payment of appeal fee and legal
research fee
(5) In case of monetary award, an appeal by the
employer may be perfected only by posting of a
Bond.
A mere notice of appeal without complying with the
requisites aforesited shall not stop the running of the
period.

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

GROUNDS: (AFQE)
(1) If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter
(2) If the decision, order, award was secured
through fraud or coercion, including graft and
corruption
(3) If made purely on questions of law
(4) If serious errors in the findings of facts are
raised, which would cause grave or irreparable
damage or injury to the appellant
In case of a judgment involving monetary award, an appeal by the
employer may be perfected only upon the posting of a cash or
surety bond issued by a reputable bonding company, duly
accredited by the Commission, in the amount equivalent to the
monetary award in the judgment appealed from.
Nonetheless, a motion to reduce appeal bond may be
made, pursuant to NLRC Rules and applying further
McBurnie v. Ganzon. Thus:
(a) The filing of a motion to reduce appeal bond
shall be entertained by the NLRC subject to the following
conditions: (1) there is meritorious ground; and (2) a bond
in a reasonable amount is posted;
(b) For purposes of compliance with condition
no. (2), a motion shall be accompanied by the posting of
a provisional cash or surety bond equivalent to ten
percent of the monetary award subject of the appeal,
exclusive of damages and attorney's fees;
(c) Compliance with the foregoing conditions
shall suffice to suspend the running of the 10-day
reglementary period to perfect an appeal from the labor
arbiter's decision to the NLRC;
(d) The NLRC retains its authority and duty to
resolve the motion to reduce bond and determine the
final amount of bond that shall be posted by the
appellant, still in accordance with the standards of
meritorious grounds and reasonable amount; and
(e) In the event that the NLRC denies the motion
to reduce bond, or requires a bond that exceeds the
amount of the provisional bond, the appellant shall be
given a fresh period of ten 10 days from notice of the
NLRC order within which to perfect the appeal by posting
the required appeal bond.
In all cases, the appellant shall furnish a copy of the memorandum
of appeal to the other party, who shall file an answer not later than
10 calendar days from receipt thereof.
The Commission shall decide all cases within 20 calendar days
from receipt of the answer of the appellee. The decision of the
Commission shall be final and executor after 10 calendar days
from receipt thereof by the parties.

(3) Maintenance of a file of CBAs; and

(4) Maintenance of a file of all settements or final
decisions of SC, CA, NLRC, and other agencies on
labor disputes.
JURISDITION
Exclusive and Original Jurisdiction (Art. 232): To act
on its own initiative or upon request of either or both
parties on all:
(1) Intra-union conflicts: refers to any conflict
between and among union members, including
grievances arising from any violation of the
rights and conditions of membership, violation of
or disagreement over any provision of the
unions constitution and by-laws, or disputes
arising from chartering or affiliation of union.
(2) Inter-union conflicts: refers to any conflict
between and among legitimate labor unions
involving representation questions for purposes
of collective bargaining or to any other conflict or
dispute between legitimate labor unions.
(3) Other related labor relations dispute: involves
any conflict between a labor organization and
the employer or any individual, entity, or group,
which is NOT a labor organization or workers
association, which includes (a) cancellation of
registration of unions and workers associations
and (b) a petition for interpleader.
BLR has NO JURISDICTION on those cases arising from the
implementation or interpretation of CBAs, which shall be the
subject of grievance procedure and/or voluntary arbitration
INSTITUTION OF ACTION
(1) DOLE Regional Office, where the labor organization is
registered (Med-Arbiter): If it involves an independent
union, a chartered local, or a workers association;
Appealable to BLR, within 10 days from receipt of
decision
(2) BLR: If the complaint involves a federation or an
industry/national union; Appealable to DOLE Sec., within
10 days from receipt of decision
LABOR ORGANIZATIONS
LABOR ORGANIZATION: Any union or association of
employees, which exist in whole or in part, for the purpose of
collective bargaining with employers, concerning the terms and
conditions of employment and for other legitimate purposes.
LEGITIMATE LABOR ORGANIZATION: Any labor organization
duly registered with DOLE.
UNION: Any labor organization in the private sector organized for
collective bargaining and for other legitimate purposes.

BUREAU OF LABOR RELATIONS

ADMINISTRATIVE FUNCTIONS OF BLR (Art. 237):
(1) Regulation of registration of the labor unions;
(2) Keeping of a registry of labor unions;

INDEPENDENT UNION: Any labor organization operating at the

enterprise level whose legal personality is derived through an
independent action for registration with the BLR.

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

NATIONAL UNION: Any labor organization with at least 10

locals/chapters each of which must be a duly certified or
recognized collective bargaining agent.
EXCLUSIVE BARGAINING REPRESENTATIVE: Legitimate labor
organization duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a
bargaining unit.
WORKERS ASSOCIATION: Association of workers organized for
mutual aid and protection of its members or for any other
legitimate purpose other than collective bargaining.
AFFILIATE: An independently registered union that entered into
an agreement of affiliation with a federation or national union. It
also refers to a chartered local, which applied for and was granted
an independent registration, but did not disaffiliate from its mother
federation or national union.
REQUIREMENTS FOR THE ISSUANCE OF CERTIFICATE OF
REGISTRATION OF UNIONS
Independent Union (Art. 240)
(1) Registration Fee of P50
(2) Names of officers and their addresses, address
of the labor organization, the minutes of
organizational meetings, and the list of workers
who participated in such meeting
(3) In case of independent union, names of
members comprising at least 20% of all the
employees of the bargaining unit;
(4) If the union has been existing for one or more
years, its annual financial reports
(5) Four copies of its constitution and by-laws,
minutes of its adoption or ratification, and the list
of members who participated in it
Chartered Locals/Chapter Union (Art. 241):
From the day it was issued a charter certificate,
the chapter shall acquire legal personality only for
purposes of filing a petition for certification election.
It shall acquire all other rights and privileges of a
legitimate labor organization, upon registration.
(1) Charter Certificate issued by the mother union
(2) Names of officers and their addresses, address
of the local chapter
(3) Chapters constitution and by-laws; Provided,
that where the chapters constitution and bylaws are the same as that of the federation or
national union, this fact shall be indicated
accordingly.
Federation or National Union (Art. 244):
In addition to requirements mentioned:
(1) Proof of affiliation of at least 10 locals or
chapters, each of which must be dulyrecognized collective bargaining agent
(2) The names and addresses of the companies,
where locals or chapters operate and the list of
all the members in each company involved.

DISAFFILIATION: When an affiliated local union may disaffiliate

from the federation. General rule on freedom period applies.
However, an exception is if disaffiliation is made by majority of the
union members in the bargaining unit.
SUBSTITUTIONARY DOCTRINE: The CBA continues to bind the
members of the new or disaffiliated and independent union up to
the CBAs expiration date.
MERGER (ABSORPTION): Process where the labor organization
absorbs another, resulting in the cessation of the absorbed labor
organizations existence and the continued existence of the
absorbing labor organization.
CONSOLIDATION (AMALGAMATION): The creation or formation
of a new union, arising from unification of two or more union.
CANCELLATION OF REGISTRATION (Art. 245): The certificate
of registration of any legitimate labor organization, whether
national or local, may be cancelled by the Bureau, after due
hearing, ONLY on the grounds specified in Art. 247.
GROUNDS: (M2V2)
(1) Misrepresentation, false statement or fraud in
connection with the adoption or ratification of the
constitution and by-laws or amendments
thereto, the minutes of ratification, and the list of
members, who took part in the ratification
(2) Misrepresentation, false statements or fraud in
connection with the election of officers, minutes
of the election of officers, and the list of voters
(3) Voluntary dissolution by the members
(4) Violation of rights and conditions of
membership (art. 250)
VOLUNTARY CANCELLATION (Art. 248): By the organization,
provided that at least 2/3 of its general membership votes in a
meeting duly called for that purpose.
GENERAL GROUINGS OF RIGHTS AND CONDITIONS OF
MEMBERSHIP IN LABOR ORGANIZATION (Art. 250):
(1) Deliberative and decision-making rights
(2) Right to information
(3) Rights over money matters
(4) Political rights
Last paragraph of Art. 250: Any violation of the above rights
and conditions of membership shall be ground for
cancellation of union registration or expulsion of officers
from office, whichever is appropriate. At least 30% of the
members of a union OR any member or members specially
concerned may report such violation to the Bureau.
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS (Art. 251):
(USER-FOE)
(1) Undertake activities for the benefit of the organization
and its members
(2) Sue and be sued

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

(3) Exclusive representative of all employees in the

bargaining unit (certification elections)
(4) Represent union members in collective bargaining
(5) Furnished by employers of audited financial statement
(6) Own properties
(7) Exemption from taxes
REPORTORIAL REQUIREMENTS (Art 252): The legitimate labor
organization must submit the following: (COMA)
(1) Constitution and by-laws, or amendments thereto,
minutes of ratifications, and the list of members who took
part in the ratification, within 30 days from adoption of
such;
(2) List of Officers, minutes of election of officers, and list of
voters, within 30 days from election
(3) List of Members, at least once a year or whenever
required by Bureau
(4) Annual Financial Reports, within 30 days after the close
of fiscal year
Failure to comply with the above-mentioned shall not be a
ground for cancellation of union registration, but shall
subject the erring officers or members to suspension,
expulsion, or any other appropriate penalty.
COVERAGE OF RIGHT TO SELF-ORGANIZATION
ART. 257: Non-abridgement of Right to Self-Organize
(1) To form, join, and assist labor organizations for the
purpose of collective bargaining, through representatives
of their own choosing
(2) To engage in lawful concerted activities for the same
purpose and for their mutual aid and protection
ART. 253: Eligibility to join labor organizations (see Memaid 2016,
p. 112)
RIGHTS OF EMPLOYEES IN PUBLIC SECTOR (GOCCs with
Original Charter) (Art. 254): They cannot bargain with the
government concerning the conditions of their employment.
However, they can negotiate (through collective negotiation
agreements or MOA) with the government on those terms and
conditions of employment which are not fixed by law. They are
enjoined by Civil Service Memorandum Circular No. 6 from
staging strikes, demonstrations, mass leaves, walkouts, and
other concerted activities. They can only form, join, or assist
labor organizations for purposes not contrary to law.
Managerial employees are ineligible to join any labor
organization, while such is not the case for supervisory
employees (Art. 255).
UNFAIR LABOR PRACTICES
Generally, ULP are prohibited acts related to the workers right to
self-organization and to the observance of the CBA. It is a practice
unfair to labor, although the offender may either be an employer or
a labor organization.

Note: Prohibited acts are all related to the workers selforganizational right and observance of CBA, except Art. 259(f),
dismissing or prejudicing an employee for giving testimony under
the Code
No criminal prosecution under this Title may be instituted without a
final judgment finding that an unfair labor practice was committed,
having been first obtained in the preceding paragraph. During the
pendency of such administrative proceeding, the running of the
period of prescription of the criminal offense herein penalized shall
be considered interrupted: Provided, however, that the final
judgment in the administrative proceedings shall not be binding in
the criminal case nor be considered as evidence of guilt but
merely as proof of compliance of the requirements therein set
forth.
ELEMENTS:
(1) Existence of ER-EE relationship
(2) Act don is expressly defined in the code as an act of ULP
Anti-union or anti-right to self-organization motive must be
proved because it is a definitional element of ULP.
The burden of proof falls on the shoulders of petitioner to
establish or substantiate a claim of ULP.
ULP BY EMPLOYERS (Art. 259): (IY-C2D2-VPV)
(1) Interference: to interfere with, restrain, or coerce
employees in the exercise of their right to selforganization
Totality of Conduct Doctrine: The culpability
of employers remarks is to be evaluated not
only on the basis of their implications, but
against the background of and in conjunction
with collateral circumstances.
(2) Yellow Dog Condition: to require as a condition of
employment that a person or employee shall not join a
labor organization or shall withdraw from one to which he
belongs
(3) Contracting Out: to contract out services or functions
being performed by union members, when such will
interfere with, restrain, or coerce employees in the
exercise of their right to self-organization
(4) Company-Domination of Union: to initiate, dominate,
assist, or otherwise interfere with the formation or
administration of any labor organization, including the
giving of financial or other support to it or its organizers
and officers
(5) Discrimination: in regard to wages, hours of work and
other terms and conditions of employment in order to
encourage or discourage membership in any labor
organization

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

(6) Discrimination Because of Testimony: to dismiss,

discharge or otherwise prejudice or discriminate against
an employee for having given or being about to give
testimony under this Code
(7) Violation of Duty to Bargain: to violate the duty to
bargain collectively as prescribed by this Code
Run-away Shop: An unfair labor practice of
management, which usually takes place by
effecting the transfer of ownership, the plant
itself, or its equipment, or by temporary closing
its business purposely to bust the union or to
evade the payment of legitimate obligations.
Surface Bargaining: It means going through
the motions of negotiating, without any legal
intent to reach an agreement
(8) Paid Negotiation: to pay negotiation or attorneys fees
to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any
other dispute
(9) Violation of CBA: to violate a collective bargaining
agreement. It must be gross, flagrant and/or malicious
refusal to comply with the economic provision of the CBA
SECURTY ARRANGEMENTS: Stipulations in the CBA requiring
membership in the contracting union as a condition for
employment or retention of employment in the company.
Art. 259 (e): Nothing in this Code or in any other law shall stop the
parties from requiring membership in a recognized collective
bargaining agent as a condition for employment, except those
employees who are already members of another union at the time
of the signing of the collective bargaining agreement.
Art. 260 (a): However, a labor organization shall have the right to
prescribe its own rules with respect to the acquisition or retention
of membership.
KINDS:

(1) Closed-Shop Agreement: only union

members can be hired by the company and
they must remain as union members to
retain employment
(2) Semi-Closed
Shop
Agreement:
prospective employee must be a member of
the union as a condition of employment and
has no requirement for the employee to
remain as member of the contracting union
in good standing as a condition for
continued employment
(3) Union Shop Agreement: Non-members
may be hired, but to retain employment,
must become union members

(4) Maintenance of Membership Agreement:

No employee is compelled to join the union.
But, all the present or future members must,
as a condition of employment, remain in
good standing
(5) Preferential Shop Agreement: The
employer merely agrees to give preference
to the members of the bargaining union in
hiring, promotion, or filing vacancies and
retention in case of lay-off.
(6) Agency Shop Agreement: an agreement
whereby employees must either join the
union or pay to the union as exclusive
baragaining agent a sum equal to that paid
by members.
(7) Modified Union Shop Agreement:
provides that the employees who are not
union members at the time of signing the
contract (CBA) need not join the union, but
all the workers hired thereafter must join.
(8) Exclusive Bargaining Shop Agreement:
provides that the union is recognized as the
exclusive bargaining agent for all
employees in the bargaining unit, whether
union members or not.
(9) Bargaining
for
Members
Only
Agreement: provides that the union is
recognized as the bargaining agent only for
its own members
REQUIREMENTS FOR A VALID TERMINATION OF THE
EMPLOYEE UNDER CLOSED-SHOP AGREEMENT: (DR. PEC)
(1) It can only be exercised by giving the employee his right
to due process.
(2) It cannot be applied to employees who are already
members of the rival union or to the employees based
on their religious beliefs.
(3) The agreement can only be applied prospectively.
(4) The agreement must be expressed in clear and
unequivocal terms.
(5) Any doubt must be resolved against existence of closedshop agreement.
Note: On the part of the employer, it needs only to determine and
prove that:
(1) The security clause is applicable.
(2) The union is requesting for the enforcement of the union
security provisions of the CBA.
(3) There is sufficient evidence to support the unions
decision to expel the employee from the union.
(4) Employer must comply with due process.
ULP BY LABOR ORGANIZATIONS (Art. 260): (GRADE-V)
(1) To grossly violate a collective bargaining agreement.
(2) To restrain or coerce employees in the exercise of their
right to self-organization.

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

(3) To ask for or accept negotiation or attorneys fees from

employers as part of the settlement of any issue in
collective bargaining or any other dispute
Sweetheart Doctrine: provides that it is ULP for
a labor organization to ask for or accept
negotiation or attorneys fees from the employer
in settling a bargaining issue or dispute.
(4) To cause or attempt to cause an employer to
discriminate against an employee, including
discrimination against an employee with respect to whom
membership in such organization has been denied or to
terminate an employee on any ground other than the
usual terms and conditions under which membership or
continuation of membership is made available to other
members.
(5) To cause or attempt to cause an employer to pay or
deliver or agree to pay or deliver any money or other
things of value, in the nature of an exaction, for services
which are not performed or not to be performed, including
the demand for fee for union negotiations.
Featherbedding
(6) To violate the duty, or refuse to bargain collectively
with the employer, provided it is the representative of the
employees.
Blue Sky Bargaining: making exaggerated or
unreasonable proposals. Whether or not union
is engaged in such is determined by the
evidence presented by the union as to its
economic demands.
ULP in Bargaining (by Labor Organization or by Employer):
(BE-GF)
(1) Bad faith in bargaining (Boulwarism)
(2) Evading the mandatory subjects of bargaining
(3) Gross violation of CBA
(4) Failure or refusal to meet and convene
COLLECTIVE BARGAINING
DUTY TO BARGAIN COLLECTIVELY:
In the absence of CBA (Art. 262): In the absence of an
agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty of
employer and the representatives of the employees to bargain
collectively in accordance with the provisions of this Code.
(Art. 263): The duty to bargain collectively means the
performance of a mutual obligation to meet and convene promptly
and expeditiously in good faith for the purpose of negotiating an
agreement with respect to wages, hours of work and all other
terms and conditions of employment including proposals for
adjusting any grievances or questions arising under such
agreement and executing a contract incorporating such
agreements if requested by either party but such duty does not

compel any party to agree to a proposal or to make any

concession.
In the presence of CBA (Art. 264): When there is a
collective bargaining agreement, the duty to bargain collectively
shall also mean that neither party shall terminate nor modify such
agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least sixty
(60) days prior to its expiration date.
It shall be the duty of both parties: (1) to keep the status
quo and (2) to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day period
and/or until a new agreement is reached by the parties.
REQUISITES OF COLLECTIVE BARGAINING: (MEDS)
(1) Possession of status of representation
(2) Proof of majority representation (Certification of BLR)
(3) ER-EE Relationship
(4) Demand to bargain collectively
(Kiok Loy v NLRC)
PROCEDURE IN COLLECTIVE BARGAINING (Art. 261):
The following procedures shall be observed in collective
bargaining:
(a) When a party desires to negotiate an agreement, it
shall serve a written notice upon the other party with a statement
of its proposals. The other party shall make a reply thereto not
later than ten (10) calendar days from receipt of such notice;
(b) Should differences arise on the basis of such notice
and reply, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of
request.
(c) If the dispute is not settled, the Board shall intervene
upon request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The Board
shall have the power to issue subpoenas requiring the attendance
of the parties to such meetings. It shall be the duty of the parties to
participate fully and promptly in the conciliation meetings the
Board may call;
(d) During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may disrupt or
impede the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case to a
voluntary arbitrator.
CERTIFICATION YEAR: The collective bargaining should begin
within the 12 months, following the determination and certification
of thee mployees exclusive bargaining representative. This period
is known as the certification year.
COLLECTIVE BARGAINING AGREEMENT: A contract executed
upon request of either the employer or the exclusive bargaining
representative of the employees, incorporating in the agreement
reached, after negotiations with respect to wages, hours of work,
and other terms and conditions of employment in a bargaining
unit, including proposals for adjusting any grievances or questions
under such agreement.

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

PROCEDURE FOR REGISTRATION (Art.237):

(1) Submission of copies of the CBA to the BLR or the
Regional Office of DOLE within 30 days from execution,
accompanied by (a) verified proof of posting in two
conspicuous places in the place of work and (b) verified
proof of ratification by the majority of all the workers in
the bargaining unit;
(2) Action upon the application for registration within 5
calendar days from receipt thereof; the regional office
shall furnish BLR with a cop of CBA within 5 days from
submission;
(3) BLR or RO shall assess the employer for every CBA, a
registration fee of not less than P1,000
(4) Issuance of Certificate of Registration
Usual Provisions in CBA: (BES2-FM-A-VC2D2)
(1) Definition of Bargaining Unit
(2) Economic Benefits
(3) Union Security Clause
(4) No Strike-No Lockout Clause
(5) Provisions on Family Planning, Participation, or
Sports
(6) Management Prerogative Clause
(7) Provisions on Administration of Agreement
(8) Voluntary Arbitration Clause
(9) Check-off Provisions
(10) Completeness of Agreement
(11) Provisions Against Drug Use in Workplace
(12) Duration of Agreement
ZIPPER CLAUSE: a stipulation in the CBA indicating that issues
that could have been negotiated upon, but not contained in the
CBA cannot be raised to negotiation, when the CBA is already in
effect.
WILEY DOCTRINE: states that a duty to arbitrate arising from a
collective bargaining agreement survives the employers ceasing
to do business as a separate entity, after its merger with a
substantially large corporation, where relevant similarity and
continuity of operations across the change in ownership is
evidenced by the wholesale transfer of smaller corporations
employees to the larger corporation.
DEADLOCK: Synonymous with impasse or a standstill which
presupposes reasonable effort in good faith bargaining, but
despite noble intentions does not conclude an agreement between
parties. (See MemAid 2016 for Bargaining to the Point of
Deadlock and Remedies, p. 128)
AUTOMATIC RENEWAL CLAUSE: The CBA shall remain
effective and enforced even after the expiration of the period fixed
by the parties, as long as no new agreement is reached by them.
The automatic renewal pertains only to the economic
provisions of CBA and does not include representational
aspect of CBA.
FREEDOM PERIOD: The 60-day period immediately preceeding
the expiration of the representation period of 5 years in the CBA.

What may be done during the Freedom Period: (DAC)

(1) A labor union may Disaffiliate
(2) Either party can serve a written notice or
Terminate or modify the agreement
(3) A petition for Certification Election may be
filed
ABSORPTION DOCTRINE/ACCRETION DOCTRINE: When one
company is sold to another, the duty to bargain, which originally
devolves upon the selling party, is transferred to the buying party.
SUCCESSOR-IN-INTEREST DOCTRINE: When an employer with
an existing CBA is succeeded by another employer, the
successor-in-interest, who is a buyer in good faith, has no liability
to the employees in continuing employment and the CBA, bcause
these contracts are in personam.
Except:
(1) When successor-in-interest expressly assumes
(2) When made to circumvent the laws
(3) When made in bad faith
SUBSTITUTIONARY DOCTRINE: (See Disaffiliation) Where there
occurs a shift in the employees union allegiance after the
execution of the CBA contract with the employer, the employees
can change their agent (the labor union), but the CBA, which is still
subsisting, continues to bind the employees up to its expiration
date.
LOCK, STOCK, AND BARREL RULE: Under the rule, the CBA
proposed by the union may be imposed lock, stock, and barrel on
employer, who refused to negotiate a CBA. The employer, which
violates the duty to bargain collectively, loses its statutory right to
negotiate or renegotiate the terms and conditions of the draft CBA
proposed by the union. Hence, the proposals of the union may be
adopted as the CBA and imposed upon the employer. (Kiok Loy v
NLRC)
CONTRACT-BAR RULE (Art. 238 in relation to Art. 265): While a
valid and registered CBA is subsisting for a fixed period of 5 years,
the Bureau is not allowed to hold an election contesting the
majority status of the incumbent union, except during the 60 dayperiod immediately prior to its expiration, which period is called the
freedom period.
As regards Economic Provisions, it shall be renegotiated not
later than 3 years.
ONE-UNION, ONE-COMPANY POLICY: provides that the
proliferation of unions in an employer unit is discouraged as a
matter of policy, unless there are compelling reasons which will
deny a certain class of employees the right to self-organization for
purposes of collective bargaining.
BARGAINING UNIT: a group of employees of a given employer,
comprised of all or less than all the entire body of the employees,
which share reciprocal rights and duties, under the collective
bargaining provisions of the law.

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.

FOUR
FACTORS
IN
DETERMINING
THE
APPROPRIATE BARGAINING UNIT: (CHEG)
(1) Community of Interest Doctrine or
Substantial
Mutual
Interest
Rule:
characterized by the similarity of
employment status, same duties, and
responsibilities and substantially similar
compensation and working conditions.
(2) Prior collective bargaining history
(3) Employment status
(4) Globe Doctrine: based on the express will
or desire of the workers. In defining the
appropriate bargaining unit, the determining
factor is the desire of the workers
themselves.
EXCLUSIVE BARGAINING REPRESENTATIVE: Legitimate labor
organization duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a
bargaining unit.
MEANS TO DETERMINE EXCLUSIVE BARGAINING
REPRESENTATIVE:
(1) By Petition for Certification Election of
Legitimate Labor Organization
a. Organized Establishment
b. Unorganized Establishment
(2) By Petition for Certification Election of
Employer, when requested to bargain
collectively in a bargaining unit where no
registered collective bargaining agreement
exists
(3) By Voluntary Recognition
(See MemAid 2016 for discussion on procedure,
pp.132-136)

LABOR RELATIONS MIDTERM EXAM REVIEWER (Atty. Usita) / Mabanglo, Vicson A.