SAN BEDA UNIVERSITY

COLLEGE OF LAW
Mendiola, Manila

LABOR STANDARDS AND AGRARIAN LAW

References:
The Labor Code with Comments and Cases by Cesario Azucena, Jr.
Volume 1 and the pertinent portions of Volume 2.
PD No. 442 The Labor Code, as amended, Omnibus Rules Implementing
the Labor Code, and pertinent Department Orders.

I. Constitutional Law principles in relation to Labor Law

A. Article XIII, Sec. 3 (1987 Constitution); Art. 3 and 266 (Labor
Code)
Manila Electric Co. v. Quisumbing, G.R. No. 127598, 27
January 1999.
B. Due process in labor cases
Agabon v. NLRC, G.R. No. 158693, 17 November 2004
Jaka Food Processing Corporation v. Pacot, G.R. No. 151378, 28
March 2005.
Abbot Laboratories v. Alcaraz, G.R. No. 192571, 23 July 2013.
C. Equal protection
Duncan Assoocation of Detailman-PTGWO v. Glaxo Wellcome,
G.R. No. 162994, 17 September 2004
Yrasuegui v. Philippine Airlines, G.R. No. 168081, 17 October
2008
D. Right to counsel
Manuel v. N.C. Construction Supply, G.R. No. 127553, 28
November 1997.
Punzal v. ETSI Technologies Inc., G.R. No. 170384, 9 March
2007.

Page 1 of 15
 Lopez v. Alturas Group of Companies, G.R. No. 191008, 11 April
2011.
E. Right against self-incrimination
Pascual v. Board of Medical Examiners, L-25018, 26 May 1969.
F. Right against unreasonable searches and seizures
Social Justice Society v. Dangerous Drugs Board and Philippine
Drug Enforcement Agency, G.R. No. 157870, 3 November 2008.
II. Employer-employee relationship
A. Employee, defined (Art. 219)
B. Employer, defined (Art. 219)
C. Elements of an employer-employee relationship.
1. Selection
2. Payment of wages
3. Power to dismiss
4. Control
LVN Pictures Inc. v. Phil. Musicians Guild (110 Phil. 725)
Paguio Transport Corporation v. NLRC, G.R. No. 119500,
28 August 1998.
Teng v. Pahagac, G.R. No. 169704, 17 November 2010.
Dy Keh Beng v. International Labor, L-32245, 25 May
1979.
Insular Life Assurance Co. v. NLRC, G.R. No. 84484, 15
November 1989.
Tongko v. Manufacturer’s Life Insurance Company, G.R.
No. 167622, 29 June 2010 (See also: 25 January 2011
Resolution)
AFP Mutual Benefit Association v. NLRC, G.R. No.
102199, 28 January 1997.
Corporal v. NLRC, G.R. No. 129315, 2 October 2000, 341
SCRA 658.

Page 2 of 15
 Maraguinot v. NLRC, G.R. No. 120969, 22 January 1998,
284 SCRA 539.
Calamba Medical Center v. NLRC, G.R. No. 176484, 25
November 2008.
Jardin v. NLRC, G.R. No. 119268, 23 February 2000, 326
SCRA 299.
Sonza v. ABS-CBN Broadcasting Corporation, G.R. No.
138051, 10 June 2004.
ABS-CBN Broadcasting Corporation v. Marlyn Nazareno,
G.R. No. 164156, 26 September 2006.
Fulache v. ABS-CBN, G.R. No. 183810, 21 January 2010.
Begino v. ABS-CBN, G.R. No. 199166, 20 April 2015.
Orozco v. Court of Appeal, G.R. No. 155207, 13 August
2008.
Television And Production Exponents, Inc. v. Servaña,
G.R. No. 167648, 28 January 2008.
Tabang v. NLRC, G.R. No. 121143, 21 January 1997.
Francisco v. NLRC, G.R. No. 170087, 31 August 2006.
WPP Marketing Communications, Inc. et al. v. Galera,
G.R. No. 169207/G.R. No. 169239, 25 March 2010.
Matling Industrial v. Coros, G.R. No. 157802, 13 October
2010.
Malcaba v. Prohealth Pharma Philippines, G.R. No.
209085, 6 June 2018.
Republic v. Asiapro Cooperative, G.R. No. 172101, 23
November 2007.
III. Classes of employees
A. Classified according to rank (Art. 219)
1. Managerial
2. Supervisory
3. Rank and file
B. Nature of employment (Art. 294)

Page 3 of 15
1. Regular
a. Definition of regular employment
b. Test in determining regular employment
De Leon v. NLRC, G.R. No. 70705, 21 August
1989.
Magsalin v. National Organization of Working
Men, G.R. No. 148492, 9 May 2003.
2. Probationary (Art. 295, and Omnibus Rules Implementing
the Labor Code, Book 6, Rule 1, Section 6.)
Canadian Opportunities Unlimited v. Dalangin, G.R. No.
172223, 6 February 2012.
a. Definition of probationary employment
b. Right to be informed of standards for
regularization.
Aliling v. Feliciano, G.R. No. 185829, 25 April
2012.
Philippine Daily Inquirer v. Magtibay, G.R. No.
164532, 27 July 2007.
Abbot Laboratories v. Alcaraz, G.R. No. 192571, 23
July 2013 and 22 April 2014.
Enchanted Kingdom v. Verzo, G.R. No. 209559, 9
December 2015.
c. Period of probation
1. General Rule
International Catholic Migration Commission
v. NLRC, G.R. No. 72222, 30 January 1989,
169 SCRA 606.
2. Teachers
Magis Young Achievers’ Learning Center v.
Manalo, G.R. No. 178835, 13 February 2009.
Mercado v. AMA Computer College, G.R. No.
183572, 13 April 2010.

Page 4 of 15
 Colegio del Santisimo Rosario v. Rojo, G.R.
No. 170388, 4 September 2013.
3. By agreement, nature of the work, required or
established by company policy
Buiser v. Hon. Leogardo, L-63316, 31 July
1984.
Mariwasa Manufacturing v. Leogardo, G.R.
No. 74246, 26 January 1989.
3. Project (See also: Department Order No. 19, Series of
1993)
ALU-TUCP v. NLRC, G.R. No. 109902, 2 August 1994.
Leyte Geothermal Power Progressive Employees Union –
ALU – TUCP v. PNOC-EDC, G.R. No. 170351, 30 March
2011.
Malicdem v. Marulas Industrial Corporation, G.R. No.
204406, 26 February 2014
Maraguinot v. NLRC, 348 Phil. 580 (1998)
Liganza v. RBL Shipyard Corporation, G.R. No. 159862, 17
October 2006.

Hanjin Heavy Industries v. Ibanez, G.R. No. 170181, 26

June 2008.
PNOC-Energy Development Corporarion v. NLRC, G.R.
No. 169353, 13 April 2007.
Filsystems v. Cruz, G.R. No. 153832, 18 March 2005.
E. Ganzon, Inc. v. Ando, G.R. No. 214183, 20 February
2017.
Mercado v. NLRC, G.R. No. 79869, 5 September 1991,
201 SCRA 332.
Cocomangas Hotel Beach Resort v. Visca, G.R. No. 167045,
29 August 2008.
Gadia v. Sykes Asia, G.R. No. 209499. 28 January 2015.
4. Seasonal

Page 5 of 15
 Hacienda Fatima v. National Federation of Sugarcane
Workers, G.R. No. 149440, 28 January 2003
Gapayao v. Fulo, G.R. No. 193493, 13 June 2013.
Universal Robina Sugar Milling Corporation v. Acibo, G.R.
No. 186439, 15 January 2014.
Paz v. Northern Tobacco Redrying Co., G.R. No. 199554,
18 February 2015.
5. Casual
Kimberly Independent Labor Union v. Drilon, G.R. No.
77629, 9 May 1990, 185 SCRA 190.
Philippine Geothermal Inc. v. NLRC, G.R. No. 82643-67,
30 August 1990, 189 SCRA 211.
6. Fixed term
Brent School v. Zamora, 181 SCRA 702, (1990).
Pakistan International Airlines v. Ople, 190 SCRA 90,
(1990).
Philips Semiconductors v. Fadriquela, 427 SCRA 408,
(2004).
Fuji Network Television v. Espiritu, G.R. Nos. 204944-45,
3 December 2014.
Samonte v. La Salle Greenhills, G.R. No. 199683, 10
February 2016.
Poseidon Fishing v. NLRC, G.R. No. 168052, 20 February
2006.
Fabella v. San Miguel Corporation, G.R. No. 150658, 9
February 2007.
GMA Network v. Pabriga, G.R. No. 176419, 27
November 2013
IV. Job Contracting and Labor-only Contracting
See: Art. 106-109, Labor Code; DOLE Department Order No. 174-
17; DOLE Department Circular No. 01-12; DOLE Department
Circular No. 001-17; and DOLE Department Order No. 150 Series
of 2016 (Security Guards).

Page 6 of 15
See also: Department Order No. 18-A Series of 2011 and compare
with DO 174-17.
A. Legitimate Job Contracting
1. Trilateral relationship in legitimate contracting
Coca-Cola Bottlers v. Dela Cruz, G.R. No. 184977, 7
December 2009
Temic Automotive Philippines v. Temic Automotive Phils.
Inc. Employees Union – FFW, G.R. No. 186965, 23
December 2009.
Alviado v. Procter & Gamble, G.R. No. 160506, 9 March
2010.
2. Elements of legitimate contracting
Neri v. NLRC, G.R. Nos. 97008-09, 23 July 1993.
Vinoya v. NLRC, G.R. No. 126586, 2 February 2000.
San Miguel Corporation v. Semillano, G.R. No. 164257, 5
July 2010.
Baguio v, NLRC, G.R. No. 79004, 4 October 1991.
3. Mandatory registration requirement and effect of non-
registration.
San Miguel v. Semillano, G.R. No. 164257, 5 July 2010.
Consolidated Building Maintenance v. Asprec, G.R. No.
217301, 6 June 2018.
Mago v. Sun Power Manufacturing, G.R. No. 210961, 24
January 2018.
4. Liability of principal to the contractor’s employees
Jaguar Security and Investigation Agency v. Sales, G.R.
No. 162420, 22 April 2008.
5. Effects and liabilities arising from termination of an
employee of the contractor.
B. Labor-only Contracting
1. Elements of labor-only contracting

Page 7 of 15
 Coca-Cola Bottlers Philippines v. Agito, G.R. No. 179546,
13 February 2009
Garden of Memories Park v. NLRC, G.R. No. 160278, 8
February 2012.
Aliviado v. Procter & Gamble, G.R. No. 160506, 9 March
2010.
Manila Memorial Park v. Lluz, G.R. No. 208451, 3
February 2016
W.M. Manufacturing v. Dalag, G.R. No. 209418, 7
December 2015.
2. Effects of a finding of labor-only contracting.
Diamond Farms, Inc. v. Southern Philippines Federation of
Labor Workers, G.R. No. 173254, 13 January 2016.
C. Other prohibitions under DO 174.
1. Prohibited practices under D.O. 174.
2. Effects of such prohibited practices.
V. Recruitment of Local and Migrant Workers.
A. Recruitment of Local Workers
See: Department Order No. 141-14: Revised Rules and
Regulations Governing Private Recruitment and Placement
Agency for Local Employment.
1. Qualifications for Licensure as a private recruitment and
placement agency.
2. Fees that may be collected.
3. Acts constituting illegal recruitment (See Art. 38)
4. Rules on replacement of recruited worker
B. Recruitment and Deployment of Overseas Workers
See: R.A. 8042 as amended by R.A. 10022 and the
Implementing Rules and Regulations of R.A. 10022.
People v. Panis, L-58674, 11 July 1990
1. Definition of “Overseas Filipino Worker”

Page 8 of 15
2. Deployment of Migrant Workers
3. Illegal Recruitment (Art. 38 and Sec. 6 of RA 8042.)
a. Definition
b. Other prohibitions
c. Syndicated Illegal Recruitment
People v. Gallo, G.R. No. 187730, 29 June 2010
d. Large Scale Illegal Recruitment
People Dela Piedra, G.R. No. 121777, 24 January
2001
People v. Chua, G.R. No. 184058, 10 March 2010
e. Illegal recruitment as economic sabotage
f. Illegal recruitment and estafa
g. Persons criminally liable for illegal recruitment
h. Jurisdiction over illegal recruitment cases
David v. Marquez, G.R. No. 209859, 5 June 2017
4. Jurisdiction over disputes
Republic v. Principalia Management and Personnel
Consultants, G.R. No. 167639, 19 April 2006
Trans Action Overseas Corporation v. DOLE Secretary,
G.R. No. 109583, 5 September 1997
Stolt-Nielsen Transportation Group v. Medequillo, G.R.
No. 177498, 18 January 2012
Estate of Nelson Dulay v. Aboitiz Jebsen Maritime, G.R.
No. 172642, 13 June 2012
Santiago v. CF Sharp Crew Management, G.R. No.
162419, 10 July 2007
Industrial Personnel and Management Services v. De Vera,
G.R. No. 205703, 7 March 2016
5. Money claims
a. Solidary liability of principal and recruiter

Page 9 of 15
 Datuman v. First Cosmopolitan Manpower, G.R. No.
156029, 14 November 2008
Gagui v. Dejero, G.R. No. 196036, 23 October 2013
Sealanes Marine Services v. Dela Torre, G.R. No.
214132, 18 February 2015
Gargallo v. DOHLE Seafront Crewing, G.R. No.
215551, 17 August 2016
Princess Talent Center Production v. Masagca, G.R.
No. 191310, 11 April 2018
Powerhouse Staffbuilders International v. Rey, G.R.
No. 190203, 7 November 2016
b. Theory of imputed knowledge
Sunace International Management Services v. NLRC,
G.R. No. 161757, 25 January 2006
c. Extent of liability
Yap v. Thenamaris Ship Management, G.R. No.
179532, 30 May 2011
Sameer Overseas Placement Agency v. Cabiles, G.R.
No. 170139, 5 August 2014
Maersk-Filipinas Crewing v. Avestruz, G.R. No.
207010, 18 February 2015
6. Compulsory Insurance Coverage
7. Mandatory remittance of earnings
C. Direct hiring
D. Local Employment of Foreign Nationals (Art. 40-42, Labor
Code)
See: Department Order 186-17 – Revised Rules for the
Issuance of Employment Permits to Foreign Nationals
1. Criteria for granting an employment permit
2. Exemptions and exclusions from permit requirement
3. Validity of and renewal of permit

Page 10 of 15
 4. Grounds for denial of application for new or renewal of
permit
5. Grounds for cancellation or revocation of permit
VI. Hours of Work
See pertinent provisions of the Labor Code and its Omnibus
Implementing Rules
A. Coverage and Exclusions
B. Normal hours of work
Rada v. NLRC, G.R. No. 96078, 9 January 1992
University of Pangasinan Faculty Union v. University of
Pangasinan, L-63122, 20 February 1984
1. Exception
a. Health personnel
See: Department Order No. 182-17
San Juan de Dios Hospital Employees Association v.
NLRC, G.R. No. 126383, 28 November 1997
2. Compressed Workweek
Department Advisory 02-2004
Department Advisory 02-2009
Department Advisory 04-2010
a. Conditions for validity
b. Effects of a compressed workweek
Philippine Graphic Arts v. NLRC, L-80737, 29 September
1988
Unicorn Safety Glass v. Basarte, G.R. No. 154689, 25
November 2004.
Linton Commercial v. Hellera, G.R. No. 163147, 10
October 2007.
Bisig Manggagawa sa Tryco v. NLRC¸ G.R. No. 151309,
15 October 2008.
C. Work interruption due to brownouts

Page 11 of 15
 See: Policy Instruction No. 36 dated 22 May 1978.
Durabilt Recapping Plant v. NLRC, G.R. No. 76746, 27 July
1987
D. Meal breaks
1. General rule
2. When compensable?
a. Conditions for validity
Pan American World Airways System v. Pan American
Employees Association, L-16275, 23 February 1961, 1 SCRA
527.
Sime Darby Pilipinas v. NLRC, G.R. No. 119205, 15 April 1998.
Philippine Airlines v. NLRC, G.R. No. 132805, 2 February 1999.
E. Idle time
F. Waiting time
Arica v. NLRC, G.R. No. 78210, 28 February 1989.
G. Commuting time and Travel time
H. Overtime work
1. Definition and nature of overtime work
Salazar v. NLRC, G.R. No. 109210, 17 April 1996
San Miguel Brewery v. Democratic Labor Union, L-18353,
31 July 1963
PAL Employees Savings and Loan Association v. NLRC,
G.R. No. 105963, 22 August 1996
2. Overtime pay
a. Components of overtime pay
Philippine National Bank v. Philippine National Bank
Employees Association, L-30279, 30 July 1982
b. Overtime pay rates
i. Ordinary days
ii. On a rest day or special day

Page 12 of 15
 iii. On a rest day which falls on a special day
iv. Overtime on a regular holiday
v. Overtime on a rest day which falls on a regular
holiday
3. Emergency overtime work
a. General rule
b. Exceptions when overtime work may be compelled
R.B. Michael Press v. Galit, G.R. No. 153510, 13
February 2008
4. Waiver of overtime pay
a. General rule
b. Exceptions
I. Rest days
1. Right to weekly rest day
2. When work on a rest day may be required
3. Premium pay for work rendered on a rest day
J. Holidays
1. Definition of a holiday
2. Holiday pay
a. Coverage
Union of Filipro Employees v. Vivar, G.R. No. 79256,
20 January 1992
Jose Rizal College v. NLRC, L-65482, 1 December 1987
Grand Asian Shipping Lines v. Galvez, G.R. No.
178184, 29 January 2014
San Miguel Corporation v. Court of Appeals, G.R. No.
146775, 30 January 2002
b. Rules on entitlement
c. Components of holiday pay

Page 13 of 15
 Chartered Bank Employees Association v. Ople, L-
44717, 28 August 1985
Wellington Investment v. Trajano, G.R. No. 114698, 3
July 1995
Producers Bank of the Philippines v. NLRC, G.R. No.
100701, 28 March 2001
Odango v. NLRC, G.R. No. 147420, 10 June 2004
Lim v. HMR Philippines, G.R. No. 201483, 4 August
2014
Asian Transmission Corporation v. Court of Appeals,
G.R. No. 144664, 15 March 2004
3. Premium pay for work rendered on holidays
K. Special Days
1. Coverage
2. Premium pay for work rendered on special holidays
L. Night work
See: Republic Act No. 10151 and DOLE Department Order No.
119-12
1. Coverage
2. Night worker, defined
3. Health assessment
4. Mandatory facilities
5. Transfers
6. Night shift differential pay
a. Definition
b. Coverage
c. Computation
i. Within regular work hours
ii. Within overtime hours

Page 14 of 15
 iii. Within work rendered on a rest day, special day,
or regular holiday
M. Service Incentive Leave
Fernandez v. NLRC, G.R. No. 105892, 28 January 1998
Auto Bus Transport v. Bautista, G.R. No. 156367, 16 May 2005
JPL Marketing v. Court of Appeals, G.R. No. 151966, 8 July 2005
David v. Macasio, G.R. No. 195466, 2 July 2014
Paloma v. Philippine Airlines, G.R. No. 148415, 14 July 2008
Sugue v. Triumph International, G.R. No. 164804, 30 January
2009
Soriano v. PNCC Skyway Corporation, G.R. No. 171231, 17
February 2010

Page 15 of 15