FUNDAMENTAL PRINCIPLES AND POLICIES

What is labor law?

o A regulatory devise, which regulates the relationship between the
employer and the worker the two factors of production
What is labor standards law?
o Establishes the minimum terms and conditions of employment
o Rationale: these are necessary for the worker and his family to
survive
o These are beyond then negotiation of the parties; they cannot
agree to terms less than those provided in the law. If they do,
these are void.
What is labor relations law?
o It is concerned with institutional relationships and does not look as
the laborer as an individual, but as a group of workers (union)
o Two aspects of labor relations law:
1. Union and State relationship
2. Union as an organization and its relationship to the
members
What is social or welfare legislation?
o It solves the problem of avoiding making the worker a charge on
society and solves the problem of continuity of income either in
whole or in part if and when some contingencies occur, such as
sickness, injuries, premature death, and final death
o What are the laws covered by social legislation?
1. Employees compensation and State Insurance Fund
(ECSIF)
2. SSS Law
3. GSIS Law
4. Limited portability law
o Which are applicable to what workers?
SSS, to private sector employees
GSIS, to government employees and those in GOCCs
Both, to those employed in both fields
Limited portability provides a tacking provision for those who
have partially fulfilled GSIS and SSS requirements
SSS and GSIS for non-work-connected injuries and ECSIF
for work-connected injuries
What is the basis for enacting labor law?
o Constitutional provisions mandating the State to protect laborers
o Police power of the State
What are the sources of labor law?
o 1. Contract law gives rise to rights and obligations
A. Civil code provisions on contracts
 B. Collective Bargaining Agreements
o 2. Past practices, which are:
Those given voluntarily by the employer without compulsion
by law for a sufficient duration
What is sufficient period or duration?
Case by case
o 3. Company policies
Those unilaterally designed and implemented by the
employer, stating rules and regulations of the company.
These can be the source of rights and obligations.
N.B. these are unilaterally imposed by the employer;
otherwise, it would fall under contract law.
What is a labor case?
o 1. Involves employer and employee
o 2. Subject of controversy and laws of resolution fall under labor
law
Thus, if the area of resolution is civil law and not labor law,
such as replevin, then it is not a labor dispute
What is management function?
o These are rules based on the right of ownership, designed for
efficient and economical management of the enterprise. It
permeates the entire labor code, regardless of field.
o What is the limit to management function?
The law reserves the right to inquire as to the manner of
exercise of such right.
How does the law look upon waivers and compromises?
o It looks upon it with disfavor, although not all waivers and
compromises are void under law.
o What are the tests of validity of waivers and compromises?
1. Arithmetic measure is what was received for settlement
unconscionable?
2. Relative positions of the employer and employee what is
the educational attainment of each? Was the employee in dire
need?
3. Freedom on the part of the worker was there absence of
coercion?
What are the guaranteed rights of laborers under Art XIII, Sec. 3?
o 1. Self-organization
o 2. Collective bargaining and negotiations
o 3. Peaceful concerted activities, including right to strike
o 4. Security of tenure
o 5. Humane conditions of work
o 6. Living wage
o 7. Participation in policy and decision-making processes
 How does LC Art. 255 operationalize this?
Workers can participate in policy and decision-making
processes of the establishment where they are employed
as far as it would directly affect their rights, benefits, and
welfare
What are the other goals set by this provision?
o Full protection to labor
o Full employment and equality of opportunities
o Shared responsibility between ER and EEs
o Preferential use of voluntary dispute settlement
o Two fold rights:
Right of labor to just share in fruits of production
Right of enterprises to reasonable returns to investments
What does the NCC say?
o Art 1700 relations between labor and capital are not just
contractual, but impressed with public interest must yield to
common good
What factors does labor law consider as to contracts?
o 1. Due process clause
Labor is considered property
Due process and EPC can protect the employer too, not just
the employee
o 2. Liberty of contract and laissez faire
N.B. but the State still retains an interest on the worker as
part of society no matter how reckless he may be; thus, the
State continues to interfere in contract. Laissez faire is not
totally adopted.
When does the Labor code apply?
o 1. There must be an employer-employee relationship
o 2. Generally applies to all kinds of employment
N.B. but for GOCCs created and governed by special charter,
apply the Civil Service Law instead
o What is the rule on international organizations?
Beyond the coverage of the Labor Code, but the international
agreement must contain provisions on method of dispute
settlement.
N.B. if not provided, the worker can ask for withdrawal of
immunity of suit so that Philippine legal processes can apply.
o What about school teachers?
Public school teachers are covered by the Civil Service Law.
Private school teachers are covered by the Dep. Ed. Manual
But for all matters not covered by these, the Labor Code
applies. The most important is probationary employment.
o Does the Labor Code apply to religious corporations?
 If the nature of the controversy is not religious, then the Labor
Code applies.
o Does the Labor Code apply to managerial employees?
Yes, although certain aspects like Hours of Work do not apply.