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Labor Law Review

University of Southern Philippines Foundation

PART ONE

(LABOR STANDARDS)

Introductory Concepts A. LABOR LAWS, SOCIAL LEGISLATION AND SOCIAL JUSTICE


1. Definition 2. Principle of Social Justice 3. Labor Legislation vs Social Legislation

B. INTERPRETATION AND CONSTRUCTION OF LABOR STANDARDS


Art. 4 (Labor Code) Acuna vs CA G&M Phils. Inc. vs Cuambot Eureka vs NLRC Continental Steel Mfg. vs Montano Penaflor vs Outdoor Clothing Mfg. Corp.

For the Employers Side: - Cebu Metal Corp. vs Saliling - Saracom vs Interorient Maritime Ent., Inc. - NS Transportation Employees Assoc. vs NSTS Inc.

C. MANAGEMENT PREROGATIVE VS LABOR RIGHTS (REFER TO AZUCENA VOL. II)


1. Management Prerogatives Inherent Nature of Management Prerogatives Phil. Industrial Security Agency Corp. vs Aguinaldo Mendoza vs Rural Bank of Lucban Placido Urbanes vs CA Phil. Am Life & Gen Insurance Co. vs Gramaje St. Michaels Institute vs Santos Industrial Timber Corp. vs Ababon First Dominion Resources Corp. vs Penaranda

2. Limitations on Exercise of Management Prerogatives 1. Hire R.A. 7610 R.A. 9231

R.A. 7877 (applicability to MPs) Art. 136(a) Labor Code Art. 130 Labor Code R.A. 7277 Yellow Dog Contract R.A. 9208 D.O. 64-04 Series of 2004 D.O. 04 Series of 1999 2. Promote Defined

- Millares vs Subido Does not mean salary increase

- PTT Corp. vs CA

Employees refusal to be promoted

- Erasmo vs HIG Corp.

3. Demote Nature

- Leonardo vs NLRC - Fuerte vs Aquino Due Process

- Floren Hotel vs NLRC 4. Transfer Sentinel Security Agency vs NLRC OSS Security & Allied Services Inc. vs NLRC Mendoza vs Rural Bank of Lucban Benguet Electric Cooperative vs Fianza Tecson vs Glaxxo Wellcom Phils. Inc. SMC vs Pontillas Norkis Trading vs Gnillo Aguanza vs Asian Terminal Inc. Endico vs Quantum Food Distribution Center

Limits Mendoza vs Rural Bank of Lucban Benguet Electric Cooperative vs Fianza Dusit Hotel Nikko vs NUWHRAIN Allied Banking Corp. vs CA Floren Hotel vs NLRC

Effects of Refusal by Emplyee

- Benguet Electric Cooperative vs Fianza - Allied Banking Corp. vs CA Related Cases Phil-Singapore Transport Services Inc. vs NLRC Palomares vs NLRC Arellano, Jr. vs NLRC Sobrepena, Jr. vs CA Brew Master Intl. vs NAFLU Isabelo vs NLRC Phimco Industries Inc. vs NLRC Benguet Electric Cooperative vs Fianza PAL vs NLRC

5. Discipline 6. Management 7. Dismiss

D. PRESIDENTIAL DECREE NO. 442 (BRIEF HISTORICAL BACKGROUND)


1. Significance - P.D. 442 (11/01/74) - R.A. 6715 (03/21/98)

E. BASIS FOR THE ENACTMENT OF LABOR LAWS


1. Police Power - PASEI vs Drillon

2. Social Justice and Human Rights Provision


- Sec. 16, Art. II, 1987 Constitution 3. Doctrine of Incorporation - Sec. 2, Art. II, 1987 Constitution

F. LIMITATIONS IN THE ENACTMENT OF LABOR LAWS (REFER TO 1987 CONSTITUTION)


1. 2. 3. 4. 5. Equal Protection Clause Due Process Clause Prohibition Against Involuntary Servitude Non-Impairment Clause Requirement of Publication - Art. 2, Civil Code

G. CONSTITUTIONAL RIGHTS OF WORKERS IN LABOR STANDARDS


1. Security of Tenure 2. Humane Conditions of Work

3. Living Wage 4. Just Share in the Fruits of Production 5. Co-determination - Sec. 3, Art. XIII, 1987 Constitution

H. LABOR CONTRACTS AND INTERPRETATION


- Gonzales vs NLRC - Servidad vs NLRC - Grandteq Industrial Steel Products Inc. vs Margallo

I. LABOR CODE APPLICABILITY


- J.V. Angeles Construction vs NLRC - Austria vs NLRC

J. DEFINITION
1. Employer (Art. 212(e) Labor Code) 2. Employee (Art. 212(f) Labor Code)
3. Test to Determine the Existence of Employer-Employee Relationship FOUR-FOLD TEST 1. Right To Hire 2. Payment of Wages 3. Power of Dismissal 4. Control over the conduct of work

CRC Agricultural Trading vs NLRC (GR# 177664 12/23/09) Dealco Farms Inc. vs NLRC (GR# 153192 01/30/09) WPP Mtg. Comm. Inc. vs Galera (GR# 169207 03/25/10) Galera vs WPP Mtg. Comm. Inc. (GR# 169239 03/25/10) Gomez vs PDMC (GR# 174044 11/27/09) Tomaquin vs PLDT (GR# 185251 10/02/09) Masonic Contractor Inc. vs Madjos (GR# 185094 11/25/09)

Main Concepts A. RECRUITMENT AND PLACEMENT OF WORKERS


1. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. 8042) Constitutionality

- Executive Secretary vs CA - People vs Chowdury Jurisdiction of Money Claims, Death Benefits, and other Benefits Jurisdiction over Disciplinary Actions of OFWs Liability of Local Recruitment Agency and Foreign Principal Entities Authorized to Engage in Recruitment and Placement Country Team Approach

2. Effect of Absence of Consideration

- People vs Piedra 3. Illegal Recruitment Definition Elements of Illegal Recruitment Economic Sabotage Prescriptive Period for Illegal Recruitment and Economic Sabotage Liabilities (Civil, Criminal, and Administrative) People vs BULI-E People vs Baytic People vs Corpus People vs Crispin Billaber People vs Flor Gutierrez People vs Ramon Dujua People vs Leticia Sagayaga People vs Mario Alzona Rodolfo vs People

B. WAGES
1. Basic Concept and Principles Characteristics of Wages Wage vs Salary Non-Diminution of Benefits TSPIC Corp. vs TSPIC Employees Union Millares vs NLRC Intl School Alliance of Educators vs Quisumbing Aklan Electric Cooperative vs NLRC Methods of Fixing Compensation

a. Time Spent b. Commission c. Task 2. Facilities and Supplements Mabeza vs NLRC Cebu Autobus Co. vs United Cebu Autobus Employees Assoc. State Marine Cooperation vs Cebu Seamens Assoc. Inc. Mayon Hotel & Restaurant vs Adana

3. Procedure in Fixing the Minimum Wage Regionalized (through RTWPB) vs Legislated Wage Fixing Factors in Determination of Minimum Wage Fixing Wage Order and Appeal Effectivity of Wage Order

- Jaguar Security & Investigation Agency vs Sales 4. Wage Distortion Definition Elements of Wage Distortion

How to Resolve Wage Distortion (Organized and Unorganized Establishments) Prubankers Assoc. vs Prudential Bank Bankard Employees Union vs NLRC P.I. Mfg. Inc. vs PIMSFA TSPIC Corp. vs TSPIC-EU Metrobank Inc. vs NWPC Norkis Free & Independent Workers Union vs Norkis Trading Co.

5. Exemption from Minimum Wage Law

Art. 98 Labor Code


NWPC Guidelines No. 01 Series of 1996 - RCPI vs NLRC - Joy Brothers Inc. vs NWPC 6. Wages Form of Payment - Art. 102 Labor Code ATM Guidelines - Labor Advisory Nov. 25, 1996 Payment by Check or Money Order - Sec. 2, Rule III, IRR Payment Through a Bank

Place of Payment Time of Payment Whom to Pay? Valid Deductions Prohibitions Regarding Wages Penalty for Non-Compliance of Wage Order Allowances Tips Bonus

- Protacio vs Laya Mananghaya & Co. - Lepanto Ceramics Inc. vs Lepanto Ceramics Employees Assoc. - UST vs SM - UST

7. Administration and Enforcement of Wage Orders (Art. 128-129)

- Balladares vs Peak Ventures Corp.


Jethro Intelligence & Security Corp. vs Sec. of Labor Peoples Broadcasting vs Sec. of Labor Phil. Hoteliers Inc. vs NUWHRAIN-APL-IUF Alberta Yanson vs Sec. of Labor

C. CLASSIFICATION OF EMPLOYEES

1. Regular vs Casual Employees SMC vs Teodosio PLDT vs Arceo ABS-CBN vs Nazareno Poseidon Fishing vs NLRC Big AA Mfg. vs Antonio Paguio vs NLRC

2. Seasonal - Hacienda Fatima vs NFSWF 3. Project Ronilo Sorreda vs Cambridge Electronics Corp. Willam Uy Construction Corp. vs Trinidad Rosita Pangilinan vs GMC C.E. Construction Corp. vs Cloco, Jr. Abesco vs Ramirez Samson vs NLRC ABS-CBN vs Nazareno Poseidon Fishing vs NLRC PLDT vs Ylagan Bahia Shipping Services vs Chua Virgilio Sapio vs Castro

4. Piece Rate - Labor Congress of the Phils vs NLRC - Lambo vs NLRC 5. Probationary Cebu Marine Beach Resort vs NLRC Rodin Alcira vs NLRC Mistubishi Motors vs Chrysler Phils. Labor Union Dusit Hotel Nikko vs Gatbonton Mercado vs AMA Computer

D. HOURS OF WORK
1. Hours of Work Defined Principles and Concepts - Navarro vs P.V. Pajarillo Liner Inc. 2. Rest Period 3. Meal Break - PAL vs NLRC 4. Workweek (Case of Hospital Personnel, Art. 83) 5. Overtime Pay Performed in an Ordinary Day Performed on a Rest Day or on a Special Day Performed on a Rest Day which falls on a Special Day

Performed overtime work on a Regular Day


Performed on a Rest Day which falls on a Regular Holiday - Damasco vs NLRC Circumstances when an employee will be compelled to render overtime and consequences of refusal 6. Premium Pay Premium pay on a Rest Day Work Premium on Sunday when it is the Employees Rest Day Premium Pay on Sundays and Holidays when Employee has no Regular Workdays and No Scheduled Regular Rest Day Premium Pay for work performed on Special Holidays (now Special Days) which fall on an Employees Scheduled Rest Day Premium Pay for work performed during Special Day 7. Holiday Pay Definition Eleven(11) Regular Holidays and Two (2) Special Days under R.A. 9177 (11/13/02) Application of Principle of No Work, No Pay Effects of Absences during successive Regular Holidays Rule in case Two(2) Regular Holidays falling on the same day. - Asian Transmission Corp. vs CA Application of Muslim Holiday to Non-Muslims

- SMC vs CA - Trans-Asia Employees Assoc. vs NLRC - Arellano Univ. EEs and Workers Union vs CA 8. Service Incentive Leave Imbuido vs NLRC Integrated Contractor & Plumbing Works Inc. vs NLRC Auto Bus Transport System Inc. vs Bautista ARCO Metal Products vs Samahan ng Manggagawa sa ARCO

9. Night-Shift Pay Where Night Shift (10pm to 6am) Work is Regular Work Where Night Shift (10pm to 6am) Work is Overtime Work

10. 13th Month Pay Who are entitled to 13th Month Pay?
- Clarion Printing House Inc. vs NLRC - JPL Mktg. Promotions vs CA - PAL vs PALEA

Employers exempted from 13th Month Pay Law


Tax Exemption

The phrase Its Equivalent in the 13th Month Pay Law


RELEVANT CASE: - Sevilla Trading Co. vs A.V.A. Tomas E. Semana 11.Service Charges 12.Exemptions - Penaranda vs Baganga Plywood Corp.

E. JOB CONTRACTING AND LABOR-ONLY CONTRACTING


1. Art. 106 2. Art. 109 Legitimate Job Contracting

- Aliviado vs Procter & Gamble Phils., Inc. - Singo vs Shangri-Las Mactan Island Resort Labor-Only Contracting, Effects and DOLE D.O. No. 18-02 Series of 2002 Coca-Cola Bottlers vs Agito Coca-Cola Bottlers vs Dela Cruz South Davao Devt. vs Gamo Iligan Cement Corp. vs IEWU-SPFL Mandaue Galleon Trade Inc. vs Andales

3. In-House Agency (Sec. 6, DOLE D.O. No. 18-02 Series of 2002)


RELEVANT CASES: Filipinas vs NLRC Lapanday vs CA Security & Credit Investigation vs NLRC Esparwa Security & Janitorial Services Inc. vs Liceo De Cagayan Univ. Acevedo vs Advanstar Co. Inc.

F. PREFERENCE OF WAGES
1. In case of Bankruptcy or in Judicial Proceedings (Art. 110 Labor Code)
- DBP vs Sec. of Labor - DBP vs NLRC 2. Rehabilitation, Receivership on Monetary Claims of Workers; Effects - DOLE vs Maceda - Tiangco vs Uniwide Sales Warehouse Club Inc.

G. APPEARANCE OF LAWYERS AND NON-LAWYERS IN LABOR CASES

H. SPECIAL TYPES OF WORKERS


1. Apprentices What is an apprenticeship agreement? Who is an apprentice? Wage of an apprentice Qualifications of an apprentice Limitations in hiring of an apprentice Regularization of an apprentice

2. Handicaps (R.A. 7277)


Definition of Terms: Handicap, disabled and impaired Handicapped worker and His/Her rights (Art. 80 81 Labor Code) Handicapped vs Disabled Employees

3. Learners Who is a learner? Requisites in hiring a learner Wage of a learner

4. Women Workers Art. 130 (Nightwork Prohibition) Exceptions to Nightwork Prohibition Required facilities for women Acts of Discrimination against women prohibited under R.A. 6725

5. Student Workers R.A. 7323 Sec. 14, Rule X, Book 3, IRR Employer-Employee Relationship

6. Domestic or Household Service Workers Art. 302 of the Civil Code Art. 143 Labor Code R.A. 7655 Rights of a Househelper (Wage, SSS, Art. 145, 147, 148, 150 Labor Code and Art. 1694, 1698 Civil Code) Employment of Minor as Househelper 7. Alien Employees Requisites in Hiring Alien Employees Art. 40, 41, 42 of the Labor Code Limitations in hiring of alien employees

I. QUITCLAIMS
- Rizada vs NLRC

Lambo vs NLRC C & A Construction Co., Inc. vs NLRC Malinaw vs NLRC PNCC vs NLRC Phil. Carpet Exporters Assoc. vs PCMC ACD Investigation Security Agency vs Daquera R & E Transport Inc. vs Latag Magbanua vs UY Catholic Vicariate vs Sto. Tomas

J. SECURITY OF TENURE
1. Scope - PLDT vs Tolentino - Fujitsu vs CA - Condo Suite Club Travel Inc. vs NLRC 2. Constructive Dismissal vs Illegal Dismissal Fernando Go vs CA Unicorn Safety Glass Inc. vs Basarte Artiaga vs Siliman University Merck Sharp and Dohme vs Robles Penaflor vs Outdoor Clothing Mfg. Corp.

3. Preventive Suspension (Sec. 8-9, Rule 23, Book V, IRR)


Grounds Duration Extension JRS Business Corp. vs NLRC Gandara Supply vs NLRC Atlas Fertilizer Corp. vs NLRC Chona Torres vs NLRC

K. TERMINATION OF EMPLOYMENT
1. Requisites for a Valid Dismissal (Sec. 1, Art. II, Constitution; Art. 277(b)
Labor Code) a. Substantial Evidence Salvador vs Phil. Mining Services Corp. Sevillana vs I.T. Ints Corp Millares vs PLDT Philtread Tire & Rubber Corp. vs Alberto Vicente

b. Due Process (Notice Requirement) Shoppes Manila Inc. vs NLRC Valiao vs CA King of Kings Transport vs Mamac Uniwide Sales Warehouse Club vs NLRC Placido vs NLRC Technol Eight Phils. Corp. vs NLRC Oscar Garcia vs NLRC Bacolod-Talisay Realty & Devt Corp. vs Dela Cruz

c. Burden of Proof - Mantle Trading Services Inc. vs NLRC - Phil. Veterans Bank vs NLRC d. Principle of Discretionary Justice - Almira vs BF Goodrich - VH Mfg. Inc. vs NLRC - Tipteo vs CA

2. Just Causes for Termination of Employment (Art. 282 Labor Code)


a. Serious Misconduct or Willful Disobedience Oscar Garcia vs Malayan Insurance Bughaw vs Treasure Island Citibank vs NLRC Tomada Sr. vs RFM Corp Reno Foods Inc. vs NLM-Katipunan PLDT vs Berbano Plantation Bay Resort vs Dubrico Baron vs NLRC

b. Gross and Habitual Neglect Tres Reyes vs Maxims Tea House Golden Thread Knitting vs NLRC Jo vs NLRC Icawat vs NLRC R. Transport Corp. vs Ejandra Union Motor Corp. vs NLRC RP Dinglasan Construction Inc. vs Atienza Cosmos Bottling Corp. vs Nagrama

c. Fraud or Willful Breach of Trust/Loss of Confidence Nokom vs NLRC Delos Santos vs NLRC PLDT vs Tolentino Charles Ramos vs CA Adelino Felix vs NLRC Rolando Aromin vs NLRC

d. Commission of a Crime against Employer e. Other Analogous Cases - Cathedral School of Technology vs NLRC - PT&T vs NLRC

3. Authorized Causes (Art. 283 Labor Code)


a. Installation of Labor Saving Devices - Asian Alchohol Corp. vs NLRC - Dole Phils. Vs NLRC - Serrano vs NLRC b. Redundancy: Requisites

Golden Thread Knitting vs NLRC Witshire File Co. Inc. vs NLRC Dole Phils. vs NLRC Bonifacio Asufrin vs CA

c. Retrenchment to Prevent Losses EMCO Plywood Corp. vs Ablegas PLDT vs NLRC Cajucom VII vs TPI Phils. Cement Corp. Manatad vs PT&T Brizuela vs Dingle Anabe vs Asian Const. Hotel Enterprises of the Phils. Inc. vs SAMASAH-NUWHRAIN Mendros vs Mitsubishi Motors Phils. Corp. FASAP vs PAL Talam vs NLRC

d. Closure or Cessation of Operation due to Serious Business Losses North Davao Mining vs NLRC Cama vs Jonis Food Services Inc. CBL Transit Inc. vs NLRC Nasipit Lumber Co. vs NLRC Mandaue Dinhow Dimsum House vs NLRC Solidbank Corp. vs NLRC

e. Criteria in Termination of Employees under Authorized Causes (except Closure) - Maya Farms vs NLRC - Capitol Wireless vs Confessor f. Procedural Requirement under Art. 283 Labor Code - Sec. 2, Rule 23, Book V, IRR - Twin Notice Requirement

4. Disease (Art. 284 Labor Code)


- Cruz vs NLRC - ATCI Overseas Corp. vs CA 5. Retirement Divina Lopez vs Natl Steel Corp. R&E Transport vs Latag Eastern Shippin Lines Inc. vs Antonio Kimberly-Clark Phils. Inc. vs Dimayuga Januaria Rivera vs United Laboratories Inc.

6. Resignation (Art. 285 Labor Code)


- Alfaro vs CA - Azcor Mfg. Inc. vs NLRC - Mobile Protective & Detective Agency vs Ompad

L. CONSEQUENCES OF ILLEGAL DISMISSAL


1. Reinstatement (Art. 279 Labor Code)
1. Nature - Cabigting vs San Miguel Foods Inc. - Dumago vs PAL 2. Instances when Reinstatement is not Possible - Manila Diamond Hotel EU vs CA - Golden Ace Builders vs Talde 2. Backwages Jenny Agabon vs NLRC Chronicles Securities Corp. vs NLRC Phil. Journalist Inc. vs Mosqueda Mitsubishi Motors Phils. Corp. vs Chrysler Phils Labor Union Sime Darby Pilipinas Inc. vs Arguilla Javellana, Jr. vs Belen Javellana, Jr. vs Javellana Farms Inc. Fe La Rosa vs Ambasador Hotel

DAMAGES Colegio de San Juan vs Villas Cruz vs NLRC Mayon & Hotel Restaurant Phil. Employ Services & Resources Inc. vs Paramlo Armando David vs Natl Fed. Of Labor Union Virgilio Sapio vs Undaloc Construction Celebes Japan Foods Corp. vs Yermo Bernardo Jose, Jr. vs Michaelmar Phils. Inc. Genesis Transport Services Inc. vs UMMGT Hilton Heavy Equipment Corp. vs Ananias Dy

3. Separation Pay - PLDT vs NLRC (Discerning Compassion Doctrine) - PCI Bank vs Abad - Phil. Commercial Intl Bank vs Abad - Diversified Sec. Inc. vs Alicia Bautista - Sagrasso Construction & Devt Corp. vs NLRC

4. Attorneys Fees (Art. 111 Labor Code)

M. PRESCRIPTIVE PERIOD
1. For Illegal Dismissal (Art. 1146 Civil Code) of Action Accrued 2. Unfair Labor Practice Action Accrued 3. Money Claims Action Accrued - Kar Asia Inc. vs Corona - 4 yrs from Cause - 1 yr from Cause of - 3 yrs from Cause of

- Texon Mfg. vs Millena