LABOR LAW REVIEW COURSE OUTLINE

I. Fundamental Principles and

Policies
A. Constitutional provisions
1. Article II
Sec. 9
The State shall promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote
full employment, a rising standard of living, and an improved quality of
life for all.
Sec. 10
The State shall promote social justice in all phases of national
development.
Sec. 11
The State values the dignity of every human person and guarantees full
respect for human rights.
Sec. 13
The State recognizes the vital role of the youth in nation-building and
shall promote and protect their physical, moral, spiritual, intellectual,
and social well-being. It shall inculcate in the youth patriotism and
nationalism, and encourage their involvement in public and civic affairs.
Sec. 14
The State recognizes the role of women in nation-building, and shall
ensure the fundamental equality before the low of women and men.
Sec. 18
The State Affirms the labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.
Sec. 20.
The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provideds incentives to needed
investment.
2. Article III
Sec. 1
No person shall be deprived of life, liberty, or property without due
process of law, nor shall any person be denied the equal protection of
the law.
Sec. 4
No law shall be be passed abridging the freedom of speech, of
expression, or the press, or the right of the people peaceably to

assemble and petition the government for redress of grievances.

Sec. 7
The Right of the people to information on matters of public concern shall
be recognized. Access to official records, and to documents, and papers
pertaining to official acts, transaction, or decisions, as well as to
government research data used as basis for policy development, shall
be afforded the citizen, subject to such limitations as may be provided
by law.
Sec. 8
The right of the people, including those employed in the public and
private sectors, to form unions, associations, or societies for purposes
not contrary to law shall not be abridged.
Sec. 10
No law impairing the obligations of contracts shall be passed.
Sec. 16
All person shall have the right to a speedy disposition of their cases
before all judicial, quasi-judicial, or administrative bodies.
Sec. 18(2).
No involuntary servitude in any form shall exist except as a punishment
for a crime whereof the party have been duly convicted.
3. Article XII
Sec. 1
The goals of the national economy are a more equitable distribution of
opportunities, income and wealth; a sustained increase in the amount of
goods and services produced by the nation for the benefit of the people;
and an expanding productivity as the key to raising the quality of life for
all, especially the underprivileged.
The state shall promote industrialization and full employment based on
sound agricultural development and agrarian reform, through industries
that make full and efficient used of human and natural resources, and
which are competitive in both domestic and foreign markets. However,
the State shall protect Filipino enterprises against unfair foreign
competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all regions
of the country shall be given optimum opportunity to develop. Private
enterprises, including corporations, cooperatives, and similar collective
organizations, shall be encouraged to broaden the base of their
ownership.
Sec. 6
The use of property bears a social function, and all economic agents
shall contribute to the common good. Individuals and private groups,
including corporations, cooperatives, and similar collective
organizations, shall have the right to own, establish, and operate
economic enterprises, subject to the duty of the state to promote

distributive justice and to intervene when the common good so

demands.
Sec. 12
The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods, and adopt measures that help
make them competitive.
4. Article XIII
Sec. 1
The Congress shall give highest priority to the enactment of measures
that protect and enhance the right of all the people to human dignity,
reduce social, economic, and political in equalities, and remove cultural
inequities by equitably diffusing wealth and political power for the
common good.
Sec. 2
The promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and self-reliance.
Sec. 3
The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality
of employment for all.
It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including
the right to strike in accordance with law. They shall be entitled to
security of tenure humane conditions of work, and a living wage. They
shall also participate in policy and decision-making process affecting
their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes of
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State Shall Regulate the relations between workers and emploeyers,
recognizing the right of labor to tis just share in the fruits of production
and the right of enterprises to reasonable returns on investment and to
expansion and growth.
Sec. 13
The State shall establish a special agency for disabled persons for their
rehabilitation, self-development and self-reliance, and their integration
into the mainstream of society.
Sec. 14
The State shall protect working women by providing safe and healthful
working conditions, taking into account their maternal functions, and
such facilities and opportunities that will enhance their welfare and
enable them to realize their full potential in the service of the nation.
Cases:
1. Tirazona vs Phil Eds Techno Services, Jan 20 2009
2. Best Wear Garments vs De Lemos, 2012

3. Jamer vs NLRC, 1998

4. Gandara vs NLRC 1998
B. Civil Code
1. Article 19
Every person must, in the exercise of his rights and in the performance
of his duties, act with justice, give everyone one his due, and observe
honesty and good faith.
2. Article 1700
The Relation between capital and labor are not merely contractual. They
are so impressed with public interest that labor contracts must yield to
the common good. Therefore, such contracts are subject to the special
laws on labor unions, collective bargaining, strikes and lockouts, closed
shop, wages, working conditions, hour of labor and similar subjects.
3. Article 1702
In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer.
C. Labor Code (7 Books)
Book I Pre-Employment (Article 12 42)
Book II Human Resources Development Program (Article 43 81)
Book III Conditions of Employment (Article 82 161)
Book IV Health, Safety and Social Welfare Benefits (Article 162 217)
Book V Labor Relations (Article 218 292)
Book VI Post Employment (Article 293 302)
Book VII Transitory and Final Provisions (Article 303 317)
D. Concept of Shared Responsibility
5. PAL vs NLRC 1993
Between workers and employees and preferential use of voluntary modes
of settling disputes.
E. Preference for Labor
6. Fuentes vs NLRC 1997
7. PLDT vs NLRC 1997
When in doubt the cases of labor law should be decided in favor of labor
F. Burden of Proof (Substantial Evidence)
1. Technical rules not binding
I. MERALCO vs Jan Carlo Gala 2012
Employee has the Burden of Proof of proving he/she is an employee of
the company or employer
Employer has the Burden of Proof to validity of the exercise of
management prerogative specially in termination cases.
Employer has the burden of proof if the employer alleged that he was not
paid in his work
G. No Work No Pay
Contract of employment is governed by the principles of contract.

H. Equal Day for Equal Work

Same job same amount equal qualification, skill, effort and
responsibility and conditions.
Same amount of work should be paid appropriate wage.
Wage Should be commensurate to amount of work rendered.
I. Last in First out
Seniority Principle, who is the most junior will be dismissed due to
economic reason.
J. One Company One Union
Only one union for collective bargaining agreement that the
management will negotiate with representing a respective collective
bargaining unit.
K. Four Fold Test (South West Disaster CONTROL)
Selection and Hiring
Payment of Wages
Power of Dismissal
Control Test
L. Management Prerogative
Circumstances that would make a valid exercise of Management
Prerogative:
1. Done in Good Faith
2. Done for the Advancement of the Employers Interest
3. Done not to Circumvent the rights of the Employees
Types of
1.
2.
3.

Management Prerogative:
Right to prescribe Rules
Right to select employees
Right to transfer or discharge Employees

II. Recruitment and Placement

A. Recruitment of local and migrant workers
1. Illegal recruitment (Sec. 5, R.A. No. 10022)
a) License vs. authority
b) Essential elements of illegal
recruitment
c) Simple illegal recruitment
d) Illegal recruitment in large scale
e) Illegal recruitment as economic
sabotage

f) Illegal recruitment vs. estafa

g) Liabilities
(i) Local recruitment agency
(ii) Foreign employer
(a) Theory of imputed knowledge
(iii) Solidary liability
h) Pre-termination of contract of migrant worker
2. Direct hiring

B. Regulation and enforcement

1. Suspension or cancellation of license or authority (Art. 35, Labor
Code)
The Minister of Labor shall have the power to suspend or cancel any
license or authority to recruit employees for oversees employment for
violation of rules and regulations issued by the Ministry of Labor, the
Overseas
2. Regulatory and visitorial powers of the DOLE secretary
3. Remittance of foreign exchange earnings
4. Prohibited activities
Labor Legislation are statutes, regulations and jurisprudence governing the
relation between capital and labor, by providing for certain employment
standards and a legal framework for negotiating, adjusting and
administering those standards and other and other incidents of
employment.
7 Rights of Workers enshrined in the Constitution
1. Organize themselves
2. Engage in peaceful concerted activities
3. To collective bargain or negotiate
4. Security of Tenure
5. Living Wage
6. Humane Condition
7. Participate in policy making processes affecting their rights, welfare and
benefits
Can the Labor Code be applied even no employment relation?
Yes. There are provisions in the labor code that deals with Pre-Employment
(Book I)
As long as the Union or the employees are consulted in the policy making
process it is compliance with the constitutional provision of law on the right of
the workers to participate in policy making processes affecting their rights and
benefits.