Labor Code of the h|||pp|nes

kLSIDLN1IAL DLCkLL NC 442 AS AMLNDLD

A DLCkLL INS1I1U1ING A LA8Ck CCDL 1nLkL8 kLVISING AND CCNSCLIDA1ING LA8Ck AND SCCIAL LAWS 1C AIICkD kC1LC1ICN 1C LA8Ck kCMC1L
LMLCMLN1 AND nUMAN kLSCUkCLS DLVLLCMLN1 AND INSUkL INDUS1kIAL LACL 8ASLD CN SCCIAL IUS1ICL
kLLIMINAk 1I1LL
Chapter I
GLNLkAL kCVISICNS
Art 1 Name of Decree 1hls uecree shall be known as Lhe Labor Code of Lhe hlllpplnes
Art 2 Date of effect|v|ty 1hls Code shall Lake effecL slx (6) monLhs afLer lLs promulgaLlon
Art 3 Dec|arat|on of bas|c po||cy 1he SLaLe shall afford proLecLlon Lo labor promoLe full employmenL ensure equal work opporLunlLles regardless of sex race or
creed and regulaLe Lhe relaLlons beLween workers and employers 1he SLaLe shall assure Lhe rlghLs of workers Lo selforganlzaLlon collecLlve bargalnlng securlLy of
Lenure and [usL and humane condlLlons of work
Art 4 Construct|on |n favor of |abor All doubLs ln Lhe lmplemenLaLlon and lnLerpreLaLlon of Lhe provlslons of Lhls Code lncludlng lLs lmplemenLlng rules and
regulaLlons shall be resolved ln favor of labor
Art S ku|es and regu|at|ons 1he ueparLmenL of Labor and oLher governmenL agencles charged wlLh Lhe admlnlsLraLlon and enforcemenL of Lhls Code or any of lLs
parLs shall promulgaLe Lhe necessary lmplemenLlng rules and regulaLlons Such rules and regulaLlons shall become effecLlve flfLeen (13) days afLer announcemenL of
Lhelr adopLlon ln newspapers of general clrculaLlon
Art 6 App||cab|||ty All rlghLs and beneflLs granLed Lo workers under Lhls Code shall excepL as may oLherwlse be provlded hereln apply allke Lo all workers wheLher
agrlculLural or nonagrlculLural (As amended by resldenLlal uecree no 370A november 1 1974)
ChapLer ll
LMAnClA1lCn Cl 1LnAn1S
Art 7 Statement of ob[ect|ves lnasmuch as Lhe old concepL of land ownershlp by a few has spawned valld and leglLlmaLe grlevances LhaL gave rlse Lo vlolenL confllcL
and soclal Lenslon and Lhe redress of such leglLlmaLe grlevances belng one of Lhe fundamenLal ob[ecLlves of Lhe new SocleLy lL has become lmperaLlve Lo sLarL
reformaLlon wlLh Lhe emanclpaLlon of Lhe Llller of Lhe soll from hls bondage
Art 8 1ransfer of |ands to tenantworkers 8elng a vlLal parL of Lhe labor force LenanLfarmers on prlvaLe agrlculLural lands prlmarlly devoLed Lo rlce and corn under
a sysLem of share crop or lease Lenancy wheLher classlfled as landed esLaLe or noL shall be deemed owner of a porLlon consLlLuLlng a famllyslze farm of flve (3)
hecLares lf noL lrrlgaLed and Lhree (3) hecLares lf lrrlgaLed
ln all cases Lhe land owner may reLaln an area of noL more Lhan seven (7) hecLares lf such landowner ls culLlvaLlng such area or wlll now culLlvaLe lL
Art 9 Determ|nat|on of |and va|ue lor Lhe purpose of deLermlnlng Lhe cosL of Lhe land Lo be Lransferred Lo Lhe LenanLfarmer Lhe value of Lhe land shall be
equlvalenL Lo Lwo and onehalf (21/2) Llmes Lhe average harvesL of Lhree (3) normal crop years lmmedlaLely precedlng Lhe promulgaLlon of resldenLlal uecree no
27 on CcLober 21 1972
1he LoLal cosL of Lhe land lncludlng lnLeresL aL Lhe raLe of slx percenL (6) per annum shall be pald by Lhe LenanL ln flfLeen (13) years of flfLeen (13) equal annual
amorLlzaLlons
ln case of defaulL Lhe amorLlzaLlon due shall be pald by Lhe farmers' cooperaLlve ln whlch Lhe defaulLlng LenanLfarmer ls a member wlLh Lhe cooperaLlve havlng a
rlghL of recourse agalnsL hlm
1he governmenL shall guaranLee such amorLlzaLlons wlLh shares of sLock ln governmenLowned and governmenLconLrolled corporaLlons
Art 10 Cond|t|ons of ownersh|p no LlLle Lo Lhe land acqulred by Lhe LenanLfarmer under resldenLlal uecree no 27 shall be acLually lssued Lo hlm unless and unLll
he has become a fullfledged member of a duly recognlzed farmers' cooperaLlve
1lLle Lo Lhe land acqulred pursuanL Lo resldenLlal uecree no 27 or Lhe Land 8eform rogram of Lhe CovernmenL shall noL be Lransferable excepL by heredlLary
successlon or Lo Lhe CovernmenL ln accordance wlLh Lhe provlslons of resldenLlal uecree no 27 Lhe Code of Agrarlan 8eforms and oLher exlsLlng laws and
regulaLlons
Art 11 Imp|ement|ng agency 1he ueparLmenL of Agrarlan 8eform shall promulgaLe Lhe necessary rules and regulaLlons Lo lmplemenL Lhe provlslons of Lhls ChapLer
8CCk CNL
kLLMLCMLN1
Art 12 Statement of ob[ect|ves lL ls Lhe pollcy of Lhe SLaLe
a 1o promoLe and malnLaln a sLaLe of full employmenL Lhrough lmproved manpower Lralnlng allocaLlon and uLlllzaLlon

b 1o proLecL every clLlzen deslrlng Lo work locally or overseas by securlng for hlm Lhe besL posslble Lerms and condlLlons of employmenL

c 1o faclllLaLe a free cholce of avallable employmenL by persons seeklng work ln conformlLy wlLh Lhe naLlonal lnLeresL

d 1o faclllLaLe and regulaLe Lhe movemenL of workers ln conformlLy wlLh Lhe naLlonal lnLeresL

e 1o regulaLe Lhe employmenL of allens lncludlng Lhe esLabllshmenL of a reglsLraLlon and/or work permlL sysLem

f 1o sLrengLhen Lhe neLwork of publlc employmenL offlces and raLlonallze Lhe parLlclpaLlon of Lhe prlvaLe secLor ln Lhe recrulLmenL and placemenL of
workers locally and overseas Lo serve naLlonal developmenL ob[ecLlves

g 1o lnsure careful selecLlon of llllplno workers for overseas employmenL ln order Lo proLecL Lhe good name of Lhe hlllpplnes abroad
1lLle l
8LC8ul1MLn1 Anu LACLMLn1 Cl WC8kL8S
ChapLer l
CLnL8AL 8CvlSlCnS
Art 13 Def|n|t|ons
a Worker means any member of Lhe labor force wheLher employed or unemployed

b 8ecrulLmenL and placemenL refers Lo any acL of canvasslng enllsLlng conLracLlng LransporLlng uLlllzlng hlrlng or procurlng workers and lncludes
referrals conLracL servlces promlslng or adverLlslng for employmenL locally or abroad wheLher for proflL or noL rovlded 1haL any person or enLlLy
whlch ln any manner offers or promlses for a fee employmenL Lo Lwo or more persons shall be deemed engaged ln recrulLmenL and placemenL

c rlvaLe feecharglng employmenL agency means any person or enLlLy engaged ln recrulLmenL and placemenL of workers for a fee whlch ls charged
dlrecLly or lndlrecLly from Lhe workers or employers or boLh

d Llcense means a documenL lssued by Lhe ueparLmenL of Labor auLhorlzlng a person or enLlLy Lo operaLe a prlvaLe employmenL agency

e rlvaLe recrulLmenL enLlLy means any person or assoclaLlon engaged ln Lhe recrulLmenL and placemenL of workers locally or overseas wlLhouL charglng
dlrecLly or lndlrecLly any fee from Lhe workers or employers

f AuLhorlLy means a documenL lssued by Lhe ueparLmenL of Labor auLhorlzlng a person or assoclaLlon Lo engage ln recrulLmenL and placemenL acLlvlLles as
a prlvaLe recrulLmenL enLlLy

g Seaman means any person employed ln a vessel engaged ln marlLlme navlgaLlon

h Cverseas employmenL means employmenL of a worker ouLslde Lhe hlllpplnes

l LmlgranL means any person worker or oLherwlse who emlgraLes Lo a forelgn counLry by vlrLue of an lmmlgranL vlsa or resldenL permlL or lLs equlvalenL
ln Lhe counLry of desLlnaLlon
Art 14 Lmp|oyment promot|on 1he SecreLary of Labor shall have Lhe power and auLhorlLy
a 1o organlze and esLabllsh new employmenL offlces ln addlLlon Lo Lhe exlsLlng employmenL offlces under Lhe ueparLmenL of Labor as Lhe need arlses

b 1o organlze and esLabllsh a naLlonwlde [ob clearance and lnformaLlon sysLem Lo lnform appllcanLs reglsLerlng wlLh a parLlcular employmenL offlce of [ob
opporLunlLles ln oLher parLs of Lhe counLry as well as [ob opporLunlLles abroad

c 1o develop and organlze a program LhaL wlll faclllLaLe occupaLlonal lndusLrlal and geographlcal moblllLy of labor and provlde asslsLance ln Lhe relocaLlon of
workers from one area Lo anoLher and

d 1o requlre any person esLabllshmenL organlzaLlon or lnsLlLuLlon Lo submlL such employmenL lnformaLlon as may be prescrlbed by Lhe SecreLary of Labor
Art 1S 8ureau of Lmp|oyment Serv|ces
a 1he 8ureau of LmploymenL Servlces shall be prlmarlly responslble for developlng and monlLorlng a comprehenslve employmenL program lL shall have Lhe
power and duLy
1 1o formulaLe and develop plans and programs Lo lmplemenL Lhe employmenL promoLlon ob[ecLlves of Lhls 1lLle

2 1o esLabllsh and malnLaln a reglsLraLlon and/or llcenslng sysLem Lo regulaLe prlvaLe secLor parLlclpaLlon ln Lhe recrulLmenL and placemenL of
workers locally and overseas and Lo secure Lhe besL posslble Lerms and condlLlons of employmenL for llllplno conLracL workers and
compllance LherewlLh under such rules and regulaLlons as may be lssued by Lhe MlnlsLer of Labor

3 1o formulaLe and develop employmenL programs deslgned Lo beneflL dlsadvanLaged groups and communlLles

4 1o esLabllsh and malnLaln a reglsLraLlon and/or work permlL sysLem Lo regulaLe Lhe employmenL of allens

3 1o develop a labor markeL lnformaLlon sysLem ln ald of proper manpower and developmenL plannlng

6 1o develop a responslve vocaLlonal guldance and LesLlng sysLem ln ald of proper human resources allocaLlon and

7 1o malnLaln a cenLral reglsLry of skllls excepL seamen

b 1he reglonal offlces of Lhe MlnlsLry of Labor shall have Lhe orlglnal and excluslve [urlsdlcLlon over all maLLers or cases lnvolvlng employeremployee
relaLlons lncludlng money clalms arlslng ouL of or by vlrLue of any law or conLracLs lnvolvlng llllplno workers for overseas employmenL excepL seamen
rovlded 1haL Lhe 8ureau of LmploymenL Servlces may ln Lhe case of Lhe naLlonal CaplLal 8eglon exerclse such power whenever Lhe MlnlsLer of Labor
deems lL approprlaLe 1he declslons of Lhe reglonal offlces of Lhe 8ureau of LmploymenL Servlces lf so auLhorlzed by Lhe MlnlsLer of Labor as provlded ln
Lhls ArLlcle shall be appealable Lo Lhe naLlonal Labor 8elaLlons Commlsslon upon Lhe same grounds provlded ln ArLlcle 223 hereof 1he declslons of Lhe
naLlonal Labor 8elaLlons Commlsslon shall be flnal and lnappealable (Superseded by Lxec Crder 797 May 1 1982)

c 1he MlnlsLer of Labor shall have Lhe power Lo lmpose and collecL fees based on raLes recommended by Lhe 8ureau of LmploymenL Servlces Such fees shall
be deposlLed ln Lhe naLlonal 1reasury as a speclal accounL of Lhe Ceneral lund for Lhe promoLlon of Lhe ob[ecLlves of Lhe 8ureau of LmploymenL Servlces
sub[ecL Lo Lhe provlslons of SecLlon 40 of resldenLlal uecree no 1177
Art 16 r|vate recru|tment LxcepL as provlded ln ChapLer ll of Lhls 1lLle no person or enLlLy oLher Lhan Lhe publlc employmenL offlces shall engage ln Lhe
recrulLmenL and placemenL of workers
Art 17 Cverseas Lmp|oyment Deve|opment 8oard An Cverseas LmploymenL uevelopmenL 8oard ls hereby creaLed Lo underLake ln cooperaLlon wlLh relevanL
enLlLles and agencles a sysLemaLlc program for overseas employmenL of llllplno workers ln excess of domesLlc needs and Lo proLecL Lhelr rlghLs Lo falr and equlLable
employmenL pracLlces lL shall have Lhe power and duLy
1 1o promoLe Lhe overseas employmenL of llllplno workers Lhrough a comprehenslve markeL promoLlon and developmenL program

2 1o secure Lhe besL posslble Lerms and condlLlons of employmenL of llllplno conLracL workers on a governmenLLogovernmenL basls and Lo ensure
compllance LherewlLh

3 1o recrulL and place workers for overseas employmenL on a governmenLLogovernmenL arrangemenL and ln such oLher secLors as pollcy may dlcLaLe and

4 1o acL as secreLarlaL for Lhe 8oard of 1rusLees of Lhe Welfare and 1ralnlng lund for Cverseas Workers
Art 18 8an on d|recth|r|ng no employer may hlre a llllplno worker for overseas employmenL excepL Lhrough Lhe 8oards and enLlLles auLhorlzed by Lhe SecreLary of
Labor ulrecLhlrlng by members of Lhe dlplomaLlc corps lnLernaLlonal organlzaLlons and such oLher employers as may be allowed by Lhe SecreLary of Labor ls
exempLed from Lhls provlslon
Art 19 Cff|ce of Lm|grant Affa|rs
a ursuanL Lo Lhe naLlonal pollcy Lo malnLaln close Lles wlLh llllplno mlgranL communlLles and promoLe Lhelr welfare as well as esLabllsh a daLa bank ln ald of
naLlonal manpower pollcy formulaLlon an Cfflce of LmlgranL Affalrs ls hereby creaLed ln Lhe ueparLmenL of Labor 1he Cfflce shall be a unlL aL Lhe Cfflce
of Lhe SecreLary and shall lnlLlally be manned and operaLed by such personnel and Lhrough such fundlng as are avallable wlLhln Lhe ueparLmenL and lLs
aLLached agencles 1hereafLer lLs approprlaLlon shall be made parL of Lhe regular Ceneral ApproprlaLlons uecree

b 1he offlce shall among oLhers promoLe Lhe wellbelng of emlgranLs and malnLaln Lhelr close llnk Lo Lhe homeland by
1 servlng as a llalson wlLh mlgranL communlLles

2 provlslon of welfare and culLural servlces

3 promoLe and faclllLaLe relnLegraLlon of mlgranLs lnLo Lhe naLlonal malnsLream

4 promoLe economlc pollLlcal and culLural Lles wlLh Lhe communlLles and

3 generally Lo underLake such acLlvlLles as may be approprlaLe Lo enhance such cooperaLlve llnks
Art 20 Nat|ona| Seamen 8oard
a A naLlonal Seamen 8oard ls hereby creaLed whlch shall develop and malnLaln a comprehenslve program for llllplno seamen employed overseas lL shall
have Lhe power and duLy
1 1o provlde free placemenL servlces for seamen

2 1o regulaLe and supervlse Lhe acLlvlLles of agenLs or represenLaLlves of shlpplng companles ln Lhe hlrlng of seamen for overseas employmenL
and secure Lhe besL posslble Lerms of employmenL for conLracL seamen workers and secure compllance LherewlLh

3 1o malnLaln a compleLe reglsLry of all llllplno seamen

b 1he 8oard shall have orlglnal and excluslve [urlsdlcLlon over all maLLers or cases lncludlng money clalms lnvolvlng employeremployee relaLlons arlslng
ouL of or by vlrLue of any law or conLracLs lnvolvlng llllplno seamen for overseas employmenL 1he declslons of Lhe 8oard shall be appealable Lo Lhe
naLlonal Labor 8elaLlons Commlsslon upon Lhe same grounds provlded ln ArLlcle 223 hereof 1he declslons of Lhe naLlonal Labor 8elaLlons Commlsslon
shall be flnal and lnappealable
Art 21 Iore|gn serv|ce ro|e and part|c|pat|on 1o provlde ample proLecLlon Lo llllplno workers abroad Lhe labor aLLaches Lhe labor reporLlng offlcers duly
deslgnaLed by Lhe SecreLary of Labor and Lhe hlllpplne dlplomaLlc or consular offlclals concerned shall even wlLhouL prlor lnsLrucLlon or advlce from Lhe home
offlce exerclse Lhe power and duLy
a 1o provlde all llllplno workers wlLhln Lhelr [urlsdlcLlon asslsLance on all maLLers arlslng ouL of employmenL

b 1o lnsure LhaL llllplno workers are noL explolLed or dlscrlmlnaLed agalnsL

c 1o verlfy and cerLlfy as requlslLe Lo auLhenLlcaLlon LhaL Lhe Lerms and condlLlons of employmenL ln conLracLs lnvolvlng llllplno workers are ln accordance
wlLh Lhe Labor Code and rules and regulaLlons of Lhe Cverseas LmploymenL uevelopmenL 8oard and naLlonal Seamen 8oard

d 1o make conLlnulng sLudles or researches and recommendaLlons on Lhe varlous aspecLs of Lhe employmenL markeL wlLhln Lhelr [urlsdlcLlon

e 1o gaLher and analyze lnformaLlon on Lhe employmenL slLuaLlon and lLs probable Lrends and Lo make such lnformaLlon avallable and

f 1o perform such oLher duLles as may be requlred of Lhem from Llme Lo Llme
Art 22 Mandatory rem|ttance of fore|gn exchange earn|ngs lL shall be mandaLory for all llllplno workers abroad Lo remlL a porLlon of Lhelr forelgn exchange
earnlngs Lo Lhelr famllles dependenLs and/or beneflclarles ln Lhe counLry ln accordance wlLh rules and regulaLlons prescrlbed by Lhe SecreLary of Labor
Art 23 Compos|t|on of the 8oards
a 1he CLu8 shall be composed of Lhe SecreLary of Labor and LmploymenL as Chalrman Lhe undersecreLary of Labor as vlceChalrman and a represenLaLlve
each of Lhe ueparLmenL of lorelgn Affalrs Lhe ueparLmenL of naLlonal uefense Lhe CenLral 8ank Lhe ueparLmenL of LducaLlon CulLure and SporLs Lhe
naLlonal Manpower and ?ouLh Councll Lhe 8ureau of LmploymenL Servlces a workers' organlzaLlon and an employers' organlzaLlon and Lhe LxecuLlve
ulrecLor of Lhe CLu8 as members

b 1he naLlonal Seamen 8oard shall be composed of Lhe SecreLary of Labor and LmploymenL as Chalrman Lhe undersecreLary of Labor as vlceChalrman Lhe
CommandanL of Lhe hlllpplne CoasL Cuard and a represenLaLlve each of Lhe ueparLmenL of lorelgn Affalrs Lhe ueparLmenL of LducaLlon CulLure and
SporLs Lhe CenLral 8ank Lhe MarlLlme lndusLry AuLhorlLy Lhe 8ureau of LmploymenL Servlces a naLlonal shlpplng assoclaLlon and Lhe LxecuLlve ulrecLor
of Lhe nS8 as members

1he members of Lhe 8oards shall recelve allowances Lo be deLermlned by Lhe 8oard whlch shall noL be more Lhan 200000 per monLh

c 1he 8oards shall be aLLached Lo Lhe ueparLmenL of Labor for pollcy and program coordlnaLlon 1hey shall each be asslsLed by a SecreLarlaL headed by an
LxecuLlve ulrecLor who shall be a llllplno clLlzen wlLh sufflclenL experlence ln manpower admlnlsLraLlon lncludlng overseas employmenL acLlvlLles 1he
LxecuLlve ulrecLor shall be appolnLed by Lhe resldenL of Lhe hlllpplnes upon Lhe recommendaLlon of Lhe SecreLary of Labor and shall recelve an annual
salary as flxed by law 1he SecreLary of Labor shall appolnL Lhe oLher members of Lhe SecreLarlaL

d 1he AudlLor Ceneral shall appolnL hls represenLaLlve Lo Lhe 8oards Lo audlL Lhelr respecLlve accounLs ln accordance wlLh audlLlng laws and perLlnenL rules
and regulaLlons
Art 24 8oards to |ssue ru|es and co||ect fees 1he 8oards shall lssue approprlaLe rules and regulaLlons Lo carry ouL Lhelr funcLlons 1hey shall have Lhe power Lo
lmpose and collecL fees from employers concerned whlch shall be deposlLed ln Lhe respecLlve accounLs of sald 8oards and be used by Lhem excluslvely Lo promoLe
Lhelr ob[ecLlves
http]]wwwdo|egovph]|abor_codesphp
Ca|a|ang vs W||||ams
1he classlc case of Ca|a|ang vs W||||ams 70 lbll 726 (1940) Lackled Lhe lssue of pollce power for publlc welfare buL ls remembered because lL conLalns a deflnlLlon
of soclal [usLlce
Iacts
A Lrafflc regulaLlon ln Manlla banned nflesfs from some sLreeLs ln Manlla durlng cerLaln afLernoon hours A clLlzen challenged Lhls regulaLlon
Issue
Was Lhe regulaLlon valld?
ku||ng
?es 1he Supreme CourL upheld Lhe regulaLlon as a valld exerclse of pollce power ln Lhe lnLeresL of publlc welfare
1hls case ls known prlmarlly for Lhe words of !usLlce !ose Laurel deflnlng soclal [usLlce
" nlfl jostlne ls oeltbet nools ot Jesptls ot ftls ot foftnby bot tbe bofolzftlo lfs foJ tbe epofllzftlo snlfl foJ enoln
tnes by tbe tfte s tbft jostlne lo lts tftlofl foJ bjentlvely senolft noneptlo fy ft lefst be fpptlfteJ nlfl jostlne efos tbe pttlo tbe
elfte fll tbe peple tbe fJptlo by tbe Cvetoeot efsotes nflnolfteJ t eosote enoln stfblllty fll tbe npoeot eleeots snlety
tbtoqb tbe floteofone f ptpet enoln foJ snlfl epolllbtlo lo tbe lotettelftlos tbe ebets tbe noolty nostltotloflly tbtoqb tbe
fJptlo efsotes leqflly jostllfble t ettfnostltotloflly tbtoqb tbe eetnlse pets ooJetlyloq tbe elsteone fll qvetoeots o tbe tle
boteJ ptlonlple sflos ppoll est sopte le #
http]]enw|k|p|||p|nasorg]|ndexphp?t|t|eCa|a|ang_vs_W||||ams
Gonza|es vs Court of Appea|s
Gk No 36213
Iune 29 1989

Iacts

1he peLlLloners leased a loL ln Lhe subdlvlslon on whlch Lhey bullL Lhelr house and by Lolerance of Lhe subdlvlslon owner Lhey culLlvaLed some vacanL ad[olnlng loLs
1he CourL of Agrarlan 8elaLlons as well as Lhe CourL of Appeals ruled LhaL Lhe plalnLlffs are noL de [ure agrlculLural LenanLs

Cn CcLober 26 1988 Lucla A Slson flled a moLlon Lo be subsLlLuLed ln lleu of Lhe prlvaLe respondenLs Andres Agcaolle (who dled on May 20 1976) and Leonora
Agcaolle (who dled on March 22 1979) as she lnherlLed and ls now Lhe reglsLered owner of nlne (9) unsold loLs ln Lhe subdlvlslon covered

Cn lebruary 22 1989 Lhls CourL granLed her moLlon 1he facLs of Lhls case are noL dlspuLed and are reclLed ln Lhe appealed declslon daLed uecember 6 1972 of Lhe
CourL of Appeals

Issue

W/n an agrlculLural Lenancy relaLlonshlp can be creaLed over land embraced ln an approved resldenLlal subdlvlslon

ne|d

1here ls no merlL ln Lhe peLlLloners argumenL LhaL lnasmuch as resldenLlal and commerclal loLs may be consldered agrlculLural (krlvenko vs 8eglsLer of ueeds 79
hll 461) an agrlculLural Lenancy can be esLabllshed on land ln a resldenLlal subdlvlslon 1he krlvenko declslon lnLerpreLlng Lhe consLlLuLlonal prohlblLlon agalnsL
Lransferrlng prlvaLe agrlculLural land Lo lndlvlduals corporaLlons or assoclaLlons noL quallfled Lo acqulre or hold lands of Lhe publlc domaln save ln Lhe case of
heredlLary successlon (ArL xlll Sec 3 1933 ConsLlLuLlon laLer ArL xlv Sec 14 1973 ConsLlLuLlon ArL xll Sec 7 1987 ConsLlLuLlon) has noLhlng Lo do wlLh
agrlculLural Lenancy An agrlculLural leasehold cannoL be esLabllshed on land whlch has ceased Lo be devoLed Lo culLlvaLlon or farmlng because of lLs converslon lnLo a
resldenLlal subdlvlslon

eLlLloners may noL lnvoke SecLlon 36(l) of 8epubllc AcL no 3844 whlch provldes LhaL when Lhe lessorowner falls Lo subsLanLlally carry ouL Lhe converslon of hls
agrlculLural land lnLo a subdlvlslon wlLhln one year afLer Lhe dlspossesslon of Lhe lessee Lhe lessee shall be enLlLled Lo relnsLaLemenL and damages for Lhe
peLlLloners were noL agrlculLural lessees or LenanLs of Lhe land before lLs converslon lnLo a resldenLlal subdlvlslon ln 1933 noL havlng been dlspossessed by Lhe
converslon of Lhe land lnLo a resldenLlal subdlvlslon Lhey may noL clalm a rlghL Lo relnsLaLemenL

Cn Lhe oLher hand Lhe peLlLloners LacLlc of enLerlng Lhe subdlvlslon as lessee of a homeloL and LhereafLer culLlvaLlng some unsold loLs osLenslbly for Lemporary use
as a home garden buL coverLly for Lhe purpose of laLer clalmlng Lhe land as LenanLed farm loLs recalls Lhe fable of Lhe camel LhaL soughL shelLer lnslde lLs masLers
LenL durlng a sLorm and once lnslde klcked lLs masLer ouL of Lhe LenL Pere Lhe prlvaLe respondenLs Lolerance of Lhe peLlLloners supposedly Lemporary use of some
vacanL loLs ln Lhe subdlvlslon was selzed by Lhe laLLer as a weapon Lo deprlve Lhe respondenLs of Lhelr land

WPL8LlC8L flndlng no reverslble error ln Lhe declslon of Lhe CourL of Appeals We deny Lhe peLlLlon for revlew for lack of merlL
hLLp//cbclawmaLLersblogspoLcom/2010/07/gonzalesvscourLofappealshLml
eop|e v an|s
142 SCkA 664 (1986)

Iacts

lour lnformaLlons were flled on !anuary 9 1981 ln Lhe CourL of llrsL lnsLance of Zambales and Clongapo ClLy alleglng LhaL Seraplo Abug prlvaLe respondenL hereln
wlLhouL flrsL securlng a llcense from Lhe MlnlsLry of Labor as a holder of auLhorlLy Lo operaLe a feecharglng employmenL agency dld Lhen and Lhere wllfully
unlawfully and crlmlnally operaLe a prlvaLe feecharglng employmenL agency by charglng fees and expenses (from) and promlslng employmenL ln Saudl Arabla Lo
four separaLe lndlvlduals named Lhereln ln vlolaLlon of ArLlcle 16 ln relaLlon Lo ArLlcle 39 of Lhe Labor Code

Abug flled a moLlon Lo quash on Lhe ground LhaL Lhe lnformaLlons dld noL charge an offense because he was accused of lllegally recrulLlng only one person ln each of
Lhe four lnformaLlons under Lhe provlso ln ArLlcle 13(b) he clalmed Lhere would be lllegal recrulLmenL only whenever Lwo or more persons are ln any manner
promlsed or offered any employmenL for a fee

1he posLure of Lhe peLlLloner ls LhaL Lhe prlvaLe respondenL ls belng prosecuLed under ArLlcle 39 ln relaLlon Lo ArLlcle 16 of Lhe Labor Code hence ArLlcle 13(b) ls noL
appllcable Powever as Lhe flrsL Lwo clLed arLlcles penallze acLs of recrulLmenL and placemenL wlLhouL proper auLhorlLy whlch ls Lhe charge embodled ln Lhe
lnformaLlons appllcaLlon of Lhe deflnlLlon of recrulLmenL and placemenL ln ArLlcle 13(b) ls unavoldable

Issue

WheLher or noL Lhe peLlLloner ls gullLy of vlolaLlng ArLlcle 13(b) of u 442 oLherwlse known as Lhe Labor Code

ne|d

ArLlcle 13(b) of u 442 oLherwlse known as Lhe Labor Code sLaLes LhaL (b) 8ecrulLmenL and placemenL refers Lo any acL of canvasslng enllsLlng conLracLlng
LransporLlng hlrlng or procurlng workers and lncludes referrals conLracL servlces promlslng or adverLlslng for employmenL locally or abroad wheLher for proflL or
noL rovlded 1haL any person or enLlLy whlch ln any manner offers or promlses for a fee employmenL Lo Lwo or more persons shall be deemed engaged ln
recrulLmenL and placemenL

As we see lL Lhe provlso was lnLended nelLher Lo lmpose a condlLlon on Lhe baslc rule nor Lo provlde an excepLlon LhereLo buL merely Lo creaLe a presumpLlon 1he
presumpLlon ls LhaL Lhe lndlvldual or enLlLy ls engaged ln recrulLmenL and placemenL whenever he or lL ls deallng wlLh Lwo or more persons Lo whom ln conslderaLlon
of a fee an offer or promlse of employmenL ls made ln Lhe course of Lhe canvasslng enllsLlng conLracLlng LransporLlng uLlllzlng hlrlng or procurlng (of) workers

AL any raLe Lhe lnLerpreLaLlon here adopLed should glve more force Lo Lhe campalgn agalnsL lllegal recrulLmenL and placemenL whlch has vlcLlmlzed many llllplno
workers seeklng a beLLer llfe ln a forelgn land and lnvesLlng hardearned savlngs or even borrowed funds ln pursulL of Lhelr dream only Lo be awakened Lo Lhe reallLy
of a cynlcal decepLlon aL Lhe hands of Lhelr own counLrymen
hLLp//cbclawmaLLersblogspoLcom/2010/07/peoplevpanlshLml
Iuentes vs n|rc
C8 no 110017 !anuary 2 1997 IIkS1 DIVISICN
8CuCLlC luLn1LS 8AlnL8lC uu8Cn !uLlL1 vlS1AL LLLnA uLLLCMLS LLCuLCA8lC 8ALPlnCn 8CCLLlC MALlnAC LlL? 8ASAnLZ MALlZA LLLC vlLMA
nCCuL8A !LSSlCA CAS1lLLC 8CCLLlC 1A8LAulLLC 8LMLLuA vlSCA?A MLLAnlA vlSCA?A CLLlA Lu88lCC Lul1P LLACunA LLlulC lL88L8 nC88L81C Ml8AnuA
lL8nAnuC Ml8AnuA CC8ulC uuMA? LLCnA8uC uLLA vLCA lSlu8C ALluC ACulnC MACA8LPA LLCCLuC A8AA AuLlnC ASlS !8 8L?nALuC 8LAnCC
MAulL?n lA8Cn MA8ClAnA CSCk 8L8lAnC CSCk l8AnClSCC SLMuL1A MA8ClA LLAMLS 8lnClL uAnlLL MA8lA 8A?A nLnl1A 8ASCnA8L? SC8lAnC
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C8lSln lA8Cn A8CAulC lA8Cn nLnl1A SA8ulnCLA ALLx LlCA?An MA8lC uAL 8AuCn LuuA8uC lLLlSA vlLLA8LL LMlL? CA8An 8CCLLlC CA8An 8CuCLlC
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AnCLLlCC nunLZ !8 nlCCLAS CAnAL PL8MCCLnA 1ACLCCC ALL!C 8AuM8Au CA8Ll1C uL LA LnA AMAnClC A8C?LC !L88? A8ALLS L?ulA ALLAuC
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AvLLlnC LunA ALLAn MA8CLLLAnA lLLlx SAnCPLZ AvLLlnC Anul vlLLA SC8lC nCLL LAS LnAS l8AnClSCC CA8uC 8CCLLlC CuLLA8A CLC8CL 8ACA8
CA8MLLl1C CA88lAuAS AnAnlAS MLLLC8lA ALlCnSC ALLAuC MA8LlnC MA81lnLZ LlnC MA81lnLZ L8nLS1C CLA8An !CPnn? !CSA?An AnLCl1C SC8lCnC
MA8CA8l1C uuMALACAn l8AnClSCC CA8ALLS lLLlx 8CCL8C A8Ll1C uAA8 l8AnClSCA CA8ALPln lC81unA1A 8AuM8Au CA8MLn 8AuA? nlCCLAS
1AMCn 8L?nALuC CAn1C8lA LLML8 nACnL An1CnlC vALLA8 8L8nAul1P 1CLCZA LML1L8lA lL88L8 CLAnlCA CA8ALLS CLAuulC C!u?LAn L8LlnuA
8LAnCC 8CSl1A uu8Cn l8AnClSCA AuLAWCn CA8ulnAL MACLlSAnC !CvLn ASlS !CSL lLC8LS ALlClA lLC8LS !uLlL1C AuC8nC LC8LnZC CAnlnLS lSAAC
CLLLASA? Anu8LS lnulA8LL A8SLnlC uu8Cn nA8ClSA MALASlnA 8CCuL Su8AAn C8ACL uu8Cn !AlML 8ALMC8lA Lu8C LCASALLS 8lMl1C8ACAS and
C8ACL CCMA petltloets vs nA1lCnAL LA8C8 8LLA1lCnS CCMMlSSlCn 31P ulvlSlCn CACA?An uL C8C Cl1? ACuSAn LAn1A1lCn lnC Anu/C8 CPAnC CPLL
kCnC tespoJeots
u L C l S l C n
8LLLCSlLLC I
1he SLaLe ls bound under Lhe ConsLlLuLlon Lo afford full proLecLlon Lo labor and when confllcLlng lnLeresLs of labor and caplLal are Lo be welghed on Lhe scales of soclal
[usLlce Lhe heavler lnfluence of Lhe laLLer should be counLerbalanced wlLh Lhe sympaLhy and compasslon Lhe law accords Lhe less prlvlleged worklngman 1hls ls only
falr lf Lhe worker ls Lo be glven Lhe opporLunlLy and Lhe rlghL Lo asserL and defend hls cause noL as a subordlnaLe buL as parL of managemenL wlLh whlch he can
negoLlaLe on even plane 1hus labor ls noL a mere employee of caplLal buL lLs acLlve and equal parLnerl1
eLlLloners numberlng sevenLyflve (73) ln all seek Lo seL aslde Lhe declslon of respondenL naLlonal Labor 8elaLlons Commlsslon daLed 27 november 1992 reverslng
LhaL of Lhe Labor ArblLer whlch granLed Lhelr clalms for havlng been rendered wlLh grave abuse of dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon
eLlLloners were regular employees of prlvaLe respondenL Agusan lanLaLlons lnc whlch was engaged ln Lhe operaLlon of a palm Lree planLaLlon ln 1renLo Agusan
del Sur slnce SepLember 1982 Clalmlng LhaL lL was sufferlng buslness losses whlch resulLed ln Lhe declslon of Lhe head offlce ln Slngapore Lo underLake reLrenchmenL
measures prlvaLe respondenL senL noLlces of LermlnaLlon Lo peLlLloners and Lhe ueparLmenL of Labor and LmploymenL (uCLL)
Cn 31 CcLober 1990 peLlLloners flled wlLh Lhe uCLL offlce ln Cagayan de Cro ClLy a complalnL for lllegal dlsmlssal wlLh prayer for relnsLaLemenL backwages and
damages agalnsL prlvaLe respondenL Agusan lanLaLlon lnc and/or Chang Chee kong ln Lhelr answer respondenLs denled Lhe allegaLlons of peLlLloners and
conLended LhaL upon recelpL of lnsLrucLlons from Lhe head offlce ln Slngapore Lo lmplemenL reLrenchmenL prlvaLe respondenLs conducLed grlevance conferences or
meeLlngs wlLh peLlLloners represenLaLlve labor organlzaLlon Lhe AssoclaLlon of 1rade unlons Lhrough lLs naLlonal presldenL !orge Alegarbes lLs local presldenL and lLs
board of dlrecLors rlvaLe respondenLs also conLended LhaL Lhe 30day noLlces of LermlnaLlon were duly senL Lo peLlLloners
AfLer boLh parLles submlLLed Lhelr poslLlon papers arLlculaLlng Lhelr respecLlve Lheses Lhe Labor ArblLer rendered a declslon on 27 May 1992 ln favor of peLlLloners
orderlng prlvaLe respondenLs Lo pay Lhe former separaLlon pay equlvalenL Lo flfLeen (13) days pay for every year of servlce plus salary dlfferenLlals and aLLorneys
fees
Cn appeal by respondenLs Lo Lhe naLlonal Labor 8elaLlons Commlsslon Lhe declslon of Lhe Labor ArblLer was reversed on 27 november 1992
eLlLloners elevaLed Lhelr pllghL Lo Lhls CourL on a speclal clvll acLlon for cerLlorarl under 8ule 63 of Lhe 8ules of CourL alleglng LhaL respondenL nL8C gravely abused
lLs dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon ln rullng LhaL peLlLloners were legally LermlnaLed from Lhelr employmenL 1hey argued LhaL Lhelr dlsmlssal or
reLrenchmenL dld noL comply wlLh Lhe requlremenLs of ArL 283 of Lhe Labor Code
We susLaln peLlLloners 1he rullng of Lhe Labor ArblLer LhaL Lhere was no valld reLrenchmenL ls correcL ArLlcle 283 of Lhe Labor Code clearly sLaLes
ArL 283 Closure of esLabllshmenL and reducLlon of personnel 1he employer may also LermlnaLe Lhe employmenL of any employee due Lo Lhe lnsLallaLlon of labor
savlng devlces redundancy reLrenchmenL Lo prevenL losses or Lhe closlng or cessaLlon of operaLlon of Lhe esLabllshmenL or underLaklng unless Lhe closlng ls for Lhe
purpose of clrcumvenLlng Lhe provlslons of Lhe LlLle by servlng a wrlLLen noLlce on Lhe workers and Lhe MlnlsLry of Labor and LmploymenL aL leasL one (1) monLh
before Lhe lnLended daLe Lhereof ln case of LermlnaLlon due Lo Lhe lnsLallaLlon of laborsavlng devlces or redundancy Lhe worker affecLed Lhereby shall be enLlLled Lo
a separaLlon pay equlvalenL Lo aL leasL hls one (1) monLh pay or Lo aL leasL one (1) monLh pay for every year of servlce whlchever ls hlgher ln case of reLrenchmenL Lo
prevenL losses and ln case of closure or cessaLlon of operaLlons of esLabllshmenL or underLaklng noL due Lo serlous buslness losses or flnanclal reverses Lhe
separaLlon pay shall be equlvalenL Lo one (1) monLh pay or aL leasL onehalf (1/2) monLh pay for every year of servlce whlchever ls hlgher A fracLlon of aL leasL slx (6)
monLhs shall be consldered one (1) whole year
under ArL 283 Lherefore reLrenchmenL may be valld only when Lhe followlng requlslLes are meL (a) lL ls Lo prevenL losses (b) wrlLLen noLlces were served on Lhe
workers and Lhe ueparLmenL of Labor and LmploymenL (uCLL) aL leasL one (1) monLh before Lhe effecLlve daLe of reLrenchmenL and (c) separaLlon pay ls pald Lo Lhe
affecLed workers
1he closure of a buslness esLabllshmenL ls a ground for Lhe LermlnaLlon of Lhe servlces of an employee unless Lhe closlng ls for Lhe purpose of clrcumvenLlng perLlnenL
provlslons of Lhe Labor Code 8uL whlle buslness reverses can be a [usL cause for LermlnaLlng employees Lhey musL be sufflclenLly proved by Lhe employerll2
ln Lhe case before us prlvaLe respondenLs merely alleged ln Lhelr answer and poslLlon paper LhaL afLer Lhelr offlclals from Lhe head offlce had vlslLed Lhe planLaLlon
respondenL manager Chang Chee kong recelved a leLLer from Lhe head offlce dlrecLlng hlm Lo proceed lmmedlaLely wlLh Lhe LermlnaLlon of redundanL workers and
sLaff and change Lhe operaLlons Lo conLracL sysLem agalnsL dlrecL employmenL 1hey also alleged LhaL afLer flve (3) years of operaLlons Lhe reLurn of lnvesLmenLs of
respondenL company was meager LhaL Lhe coup aLLempL ln AugusL 1987 as well as LhaL of uecember 1989 aggravaLed Lhe flounderlng flnanclal sLaLe of respondenL
company LhaL Lhe flnanclal losses due Lo lack of caplLal fundlng resulLed ln Lhe nonpaymenL of longoverdue accounLs LhaL Lhe unLlmely cuL ln Lhe supply of
ferLlllzers and manurlng maLerlals and equlpmenL parLs delayed Lhe paymenL of salarles and Lhe lmplemenLaLlon of weekly [ob roLaLlons by Lhe workers LxcepL for
Lhese allegaLlons prlvaLe respondenLs dld noL presenL any oLher documenLary proof of Lhelr alleged losses whlch could have been easlly proven ln Lhe flnanclal
sLaLemenLs whlch unforLunaLely were noL shown
1here ls no quesLlon LhaL an employer may reduce lLs work force Lo prevenL losses Powever Lhese losses musL be serlous acLual and reallll3 CLherwlse Lhls
ground for LermlnaLlon of employmenL would be suscepLlble Lo abuse by schemlng employers who mlghL be merely felgnlng losses ln Lhelr buslness venLures ln order
Lo ease ouL employeeslv4
lndeed prlvaLe respondenLs falled Lo prove Lhelr clalm of buslness losses WhaL Lhey submlLLed Lo Lhe Labor ArblLer were mere selfservlng documenLs and
allegaLlons rlvaLe respondenLs never adduced evldence whlch would show clearly Lhe exLenL of losses Lhey suffered as a resulL of lack of caplLal fundlng whlch
fallure ls faLal Lo Lhelr cause
As regards Lhe requlremenL of noLlces of LermlnaLlon Lo Lhe employees lL ls undlspuLed LhaL Lhe noLlce of 8eLrenchmenL was submlLLed Lo Lhe ueparLmenL of Labor
and LmploymenL on 12 SepLember 1990v3 1he flndlngs of boLh Lhe Labor ArblLer and nL8C show LhaL peLlLloners were LermlnaLed on Lhe followlng daLes ln 1990
afLer Lhey recelved Lhelr noLlces of LermlnaLlon Lo wlL {see the tob/e)
Culled from Lhe above daLa Lhe LermlnaLlon of peLlLloners could noL have valldly Laken effecL elLher on 23 or 30 SepLember 1990 1he onemonLh noLlce of
reLrenchmenL flled wlLh Lhe uCLL and served on Lhe workers before Lhe lnLended daLe Lhereof ls mandaLory rlvaLe respondenLs falled Lo comply wlLh Lhls requlslLe
1he earllesL posslble daLe of LermlnaLlon should be 12 CcLober 1990 or one (1) monLh afLer noLlce was senL Lo uCLL unless Lhe noLlce of LermlnaLlon was senL Lo Lhe
workers laLer Lhan Lhe noLlce Lo uCLL on 12 SepLember 1990 ln whlch case Lhe daLe of LermlnaLlon should be aL leasL one (1) monLh from Lhe daLe of noLlce Lo Lhe
workers eLlLloners were LermlnaLed less Lhan a monLh afLer noLlce was senL Lo uCLL and Lo each of Lhe workers
We agree wlLh Lhe concluslon of Lhe Labor ArblLer LhaL Lhe LermlnaLlon of Lhe servlces of peLlLloners was lllegal as Lhere was no valld reLrenchmenL 8espondenL nL8C
commlLLed grave abuse of dlscreLlon ln reverslng Lhe flndlngs of Lhe Labor ArblLer and rullng LhaL Lhere was subsLanLlal compllance wlLh Lhe law 1hls CourL flrmly
holds LhaL measures should be sLrlcLly lmplemenLed Lo ensure LhaL such consLlLuLlonal mandaLe on proLecLlon Lo labor ls noL rendered meanlngless by an erroneous
lnLerpreLaLlon of appllcable laws
We uphold Lhe moneLary award of Lhe Labor ArblLer for (a) Lhe balance of Lhe separaLlon pay beneflLs of peLlLloners equlvalenL Lo flfLeen (13) days for every year of
servlce afLer flndlng LhaL relnsLaLemenL ls no longer feaslble under Lhe clrcumsLances and (b) Lhe salary dlfferenLlals for complalnanLs who were relleved durlng Lhe
pendency of Lhe case before Lhe Labor ArblLer and full back wages for Lhe resL of Lhe complalnanLs 1hls ls ln accord wlLh ArL 279 of Lhe Labor Code as amended by
8A 6713 under whlch peLlLloners who were un[usLly dlsmlssed from work shall be enLlLled Lo full back wages lncluslve of allowances and oLher beneflLs or Lhelr
moneLary equlvalenL compuLed from Lhe Llme Lhelr compensaLlon was wlLhheld up Lo Lhe daLe of Lhls declslon
WnLkLICkL Lhe eLlLlon ls C8An1Lu 1he declslon of Lhe Labor ArblLer of 27 March 1992 granLlng peLlLloners Lhelr clalm for Lhe balance of Lhelr separaLlon pay
beneflLs equlvalenL Lo flfLeen (13) days for every year of servlce and salary dlfferenLlals for complalnanLs who were relleved durlng Lhe pendency of Lhe case before
Lhe Labor ArblLer and full back wages for Lhe resL of Lhe complalnanLs ls 8LlnS1A1Lu ConsequenLly Lhe declslon of Lhe naLlonal Labor 8elaLlons Commlsslon daLed
27 SepLember 1992 ls 8LvL8SLu and SL1 ASluL
SC C8uL8Lu
hLLp//sc[udlclarygovph/[urlsprudence/1997/[an1997/110017hLm
8epubllc of Lhe hlllpplnes
SUkLML CCUk1
Manlla
ll8S1 ulvlSlCn
Gk No 112630 September S 1997
CCkA2CN IAMLk and CkIS1INA AMCk1I2ADC pet|t|oners
vs
NA1ICNAL LA8Ck kLLA1ICNS CCMMISSICN ISL1ANN DLAk1MLN1 S1CkL and]or ICnN GCrespondents
nLkMCSISIMA Ik
1he declslon
1
of publlc respondenL naLlonal Labor 8elaLlons Commlsslon (nL8C)
2
ln nL8C nC8 CA 00207491
3
promulgaLed on november 12 1993 ls hereln soughL
Lo be annulled for havlng been rendered wlLh grave abuse of dlscreLlon lL havlng reversed and seL aslde Lhe declslon
4
of Labor ArblLer ablo C LsplrlLu !r by
dlsmlsslng Lhe peLlLloners complalnL for lllegal dlsmlssal agalnsL prlvaLe respondenL lseLann ueparLmenL SLore (lseLann for brevlLy) 1he decreLal parL of Lhe nL8C
declslon reads
WPL8LlC8L premlses consldered Lhe appealed declslon ls hereby seL aslde and new one promulgaLed declarlng LhaL Lhe dlsmlssal from Lhe
servlce of complalnanLs Corazon !amer and CrlsLlna AmorLlzado was valld and for cause ConsequenLly Lhe order of relnsLaLemenL wlLh
backwages and aLLorneys fees are llkewlse vacaLed and seL aslde
S

AlLhough Lhe Labor ArblLer
6
and Lhe nL8C reached conLrary concluslons boLh agree on Lhe followlng facLs
ComplalnanL Corazon !amer was employed on lebruary 10 1976 as a Cashler aL !oy MarL a slsLer company of lseLann AfLer Lwo (2) years
she was laLer on promoLed Lo Lhe poslLlon of counLer supervlsor She was Lransferred Lo lseLann Carrledo 8ranch as a money changer ln 1982
she was Lransferred Lo Lhe Cubao 8ranch of lseLann as a money changer Llll her dlsmlssal on AugusL 31 1990
ComplalnanL CrlsLlna AmorLlzado on Lhe oLher hand was employed also aL !oy MarL ln May 1977 as a sales clerk ln 1980 she was promoLed
Lo Lhe poslLlon as counLer cashler 1hereafLer she was Lransferred Lo ?oung un ueparLmenL SLore as an asslsLanL Lo Lhe money changer LaLer
on or ln 1983 she was Lransferred Lo lseLann Cubao 8ranch where she worked as a SLore Cashler Llll her dlsmlssal on AugusL 31 1990
8oLh complalnanLs were recelvlng a salary of 418200 for elghL (8) hours work aL Lhe Llme of Lhelr dlsmlssal
8espondenL lseLann ueparLmenL SLore on Lhe oLher hand ls a corporaLlon duly organlzed and exlsLlng under Lhe laws of Lhe hlllpplnes and ls
engaged ln reLall Lrade and Lhe deparLmenL sLore buslness lndlvldual respondenL !ohn Co ls Lhe resldenL/Ceneral (Manager) of respondenL
ueparLmenL SLore
1hls complalnL arose from Lhe dlsmlssal of Lhe complalnanLs by Lhe respondenLs 1hey were boLh dlsmlssed on AugusL 31 1990 on Lhe alleged
ground of dlshonesLy ln Lhelr work as SLore Cashlers
ComplalnanLs (sln) funcLlon as SLore Cashlers ls Lo accumulaLe aL Lhe end of dally operaLlons Lhe cash sales recelpLs of Lhe selllng floor cash
reglsLer clerks AL Lhe close of buslness hours all Lhe cash sales of Lhe floor cash reglsLer clerks are Lurned over by Lhem Lo Lhe SLore Cashlers
complalnanLs hereln LogeLher wlLh Lhe Lally sheeLs prepared by Lhe cash reglsLer clerks 1hereafLer complalnanLs wlll reconclle Lhe cash sales
wlLh Lhe Lally sheeLs Lo deLermlne shorLages or coverages (sln) and deposlL Lhe same wlLh Lhe bank deposlLor(sln) of respondenLs company
1hereafLer Lhe recorded LransacLlons are forwarded Lo Lhe maln branch of respondenLs company aL Carrledo for counLerchecklng
Cn !uly 16 1990 complalnanLs dlscovered a shorLage of 1333378 lL was complalnanL Corazon !amer who flrsL dlscovered Lhe shorLage ln
facL aL flrsL she LhoughL LhaL lL was merely a 100000 shorLage buL when she reconclled Lhe cash recelpLs from Lhe cash reglsLer counLers
wlLh Lhe Lally sheeLs and Lhe acLual money on hand Lhe shorLage amounLed Lo 1333378 She lnformed her cosLore cashler complalnanL
CrlsLlna AmorLlzado abouL Lhe shorLage CrlsLlna AmorLlzado also reconclled and recounLed Lhe sale prevlous Lo !uly 16 1990 and she also
conflrmed LhaL Lhere was a dlscrepancy or a shorLage of 1333378 1hey dld noL (sln) lmmedlaLely reporL Lhe shorLage Lo managemenL hoplng
Lo flnd Lhe cause of Lhe shorLage buL Lo no avall Lhey falled Lo reconclle Lhe same Pence Lhey had no oLher alLernaLlve buL Lo reporL Lhe same
Lo Lhe managemenL on !uly 17 1990
ComplalnanLs LogeLher wlLh anoLher SLore Cashler LuLgarda lnducLa were asked Lo explaln and Lhey submlLLed Lhelr respecLlve wrlLLen
explanaLlons for Lhe shorLage of 1333378 and Lhe 43000 under deposlL lasL !uly 14 1990
8espondenLs placed boLh complalnanLs and Lhelr cosLore cashler LuLgarda lnducLa under prevenLlve suspenslon for Lhe alleged shorLages
1hereafLer respondenLs conducLed an admlnlsLraLlve lnvesLlgaLlon llndlng Lhe explanaLlon of Lhe complalnanLs Lo be unsaLlsfacLory
respondenL dlsmlssed Lhe complalnanLs from Lhe servlce on AugusL 31 1990 Aggrleved and noL saLlsfled wlLh Lhe declslon of managemenL
LermlnaLlng Lhelr servlces complalnanLs lnsLlLuLed Lhls presenL acLlon on SepLember 26 1990 for lllegal dlsmlssal praylng for relnsLaLemenL
wlLh paymenL of backwages and oLher beneflLs
7

ln [usLlfylng complalnanLs dlsmlssal from Lhelr employmenL respondenLs alleged
When Lhe LransacLlons for !uly 13 1990 were belng reconclled a shorLage of 1333378 was dlscovered Also uncovered
was an underdeposlL of 43000 of cash recelpLs for !uly 14 1990
Conslderlng LhaL Lhe foregolng deflclLs were aLLrlbuLable Lo hereln appellees and Lo anoLher sLore cashler Mrs LuLgarda
lnducLa who were Lhe ones on duLy Lhose days respondenL lseLanns Puman 8esources ulvlslon Manager 1ereslLa A
vlllanueva lssued leLLers (Lxhs 1 and 3) lndlvldually addressed Lo hereln appellees and Mrs lnducLa requlrlng Lhem
Lo submlL wrlLLen explanaLlons ln regard Lo Lhelr above malfeasance wlLhln 48 hours from recelpL Lhereof ursuanL Lo
sald leLLers Lhey were llkewlse placed under prevenLlve suspenslon
1hereafLer Lhe CommlLLee on ulsclpllne of appellanL lseLann conducLed a serles of lnvesLlgaLlons problng appellees and
Mrs lnducLas aforesLaLed shorLages ln addlLlon Lo Lhe shorLage of 1373838 (sln) and underdeposlL of 43000 sald
lnvesLlgaLlon also lncluded Lhe followlng sums whlch appellees falled Lo Lurnover or accounL for
a) 100000 amounL borrowed by LuLgarda
lnducLa from Corazon !amer
b) 7000 over replenlshmenL of peLLy cash
expenses lncurred by CrlsLlna
AmorLlzado
AfLer Lhe admlnlsLraLlve lnvesLlgaLlon Lhe CommlLLee on ulsclpllne rendered lLs declslon (Lxhs 3 3A Lo 3u) daLed
AugusL 23 1990 duly approved by Lhe Ceneral Manager of respondenL lseLann flndlng Lhe appellees and Mrs lnducLa
responslble for sald shorLages and consequenLly requlrlng Lhem Lo resLlLuLe Lhe same Lo respondenL lseLann 1hls
ueclslon and Lhe noLlces of LermlnaLlon were seaL by respondenL lseLann Lo Lhe appellees and whlch Lhe laLLer
admlLLedly recelved
Cn Lhe oLher hand Lhe complalnanLs accounL of Lhe facLual anLecedenLs LhaL leL (sln) Lo Lhelr dlsmlssal ls as follows
Aslde from Lhe foregolng persons Alex Me[la had and was allowed by managemenL Lo have unconLrolled access Lo Lhe
sald room lncludlng Lhe vaulL CsLenslbly Lhe purpose was Lo asslsL ln Lhe brlnglng ln or Laklng ouL of coln bags monles
eLc
1here were Lherefore aL a mlnlmum aL leasL slx (6) persons who could have had access Lo Lhe company funds 1o ascrlbe
llablllLy Lo Lhe sLore cashlers alone ln Lhe absence of a clear proof of any wrongdolng ls noL only unfalr and dlscrlmlnaLory
buL ls llkewlse lllegal
arenLheLlcally and wlLhln Lhe parameLers of Lhelr asslgned Lasks hereln complalnanLs could noL be faulLed ln any way
for Lhe sald shorLage as Lhere ls no showlng LhaL Lhe loss occurred aL Lhe Llme Lhey were ln conLrol of Lhe funds
concerned
ComplalnanLs do noL dlspuLe Lhe facL LhaL Lhere appeared Lo be a shorLage of 1337378 (sln) for Lhe !uly 13 1990 (a
Sunday) sales and whlch were Lallled and Lhe loss dlscovered on Lhe followlng day !uly 16 1990 1hey however
vehemenLly deny any culpablllLy or parLlclpaLlon ln any klnd dlrecLly or lndlrecLly ln regard Lo Lhe sald loss or shorLage
Clven Lhe klnd of LrusL reposed upon Lhem by respondenLs for fourLeen and LhlrLeen years respecLlvely Lhey were noL
abouL alLhough Lhey could have done so before glven Lhe negllgence and laxlLy of managemenL ln regard Lo Lhe conLrol
and handllng of funds of Lhe sLore Lo break sald LrusL
AL Lhe Llme Lhe persons who had access elLher Lo Lhe vaulL Lhe money and/or Lhe keys aslde from hereln complalnanLs
were 1) LuLgarda lnducLa also a sLore cashler on duLy aL Lhe Llme 2) Lhe SCM Mrs SamonLe Lhe supervlsor ln charge 3)
Alex Me[la an employee asslgned as uLlllLy man and 4) 8oy CabaLuando
1here where(sln) Lhree (3) keys Lo Lhe money changers room and Lhese keys were asslgned and dlsLrlbuLed Lo a) masLer
key ls or was wlLh Lhe SCMs (Mrs SamonLe) room aL Lhe 3rd floor of Lhe bulldlng b) anoLher key ls or was ln Lhe
possesslon of Lhe keeper of Lhe keys le 8oy CabaLuando and c) Lhe Lhlrd and lasL key ls any of Lhe sLore cashlers
dependlng on who ls on duLy aL Lhe Llme
Llkewlse Lhere were four (4) persons who were aware and knew of Lhe vaulL comblnaLlon 1hese were Lhe Lhree sLore
cashlers le hereln complalnanLs LuLgarda lnducLa and Lhelr SCM Mrs SamonLe
8

Cn !uly 23 1991 Labor ArblLer nleves v de CasLro Lo whom Lhe lnsLanL conLroversy was orlglnally asslgned rendered a declslon
9
ln favor of hereln peLlLloners
flndlng LhaL peLlLloners had been lllegally dlsmlssed Lhe dlsposlLlve porLlon of whlch reads
WPL8LlC8L respondenLs are hereby dlrecLed Lo relnsLaLe complalnanLs Lo servlce effecLlve AugusL 1 1991 wlLh full backwages and wlLhouL
loss of senlorlLy rlghLs
SC C8uL8Lu
10

LxpecLedly respondenLs lseLann and !ohn Co appealed Lhe aforesald declslon Lo Lhe nL8C Cn !anuary 31 1992 Lhe nL8C lssued a resoluLlon
11
remandlng Lhls case
Lo Lhe nL8C naLlonal CaplLal 8eglon ArblLraLlon 8ranch for furLher proceedlngs ln Lhe followlng manner
WPL8LlC8L premlses consldered Lhe challenged declslon ls hereby SL1 ASluL and vACA1Lu
1he enLlre records of Lhls case ls hereby remanded Lo Lhe nL8C naLlonal CaplLal 8eglonal ArblLraLlon 8ranch for furLher proceedlngs
Conslderlng LhaL Lhe Labor ArblLer f po rendered a declslon ln Lhls case and ln order Lo dlspel any susplclon of pre[udgmenL of Lhls case Lhe
LxecuLlve Labor ArblLer ls hereby dlrecLed Lo have Lhls case reraffled Lo anoLher Labor ArblLer
SC C8uL8Lu
12

ConsequenLly Lhe presenL case was Lhen reraffled Lo Labor ArblLer ablo C LsplrlLu !r AfLer a fullblown Lrlal Lhe sald Labor ArblLer found for Lhe peLlLloners and
declared LhaL Lhere was no [usLlflcaLlon wheLher ln facL or ln law for Lhelr dlsmlssal 1he decreLal parL of Lhe declslon
13
daLed March 31 1993 sLaLes
WPL8LlC8L above premlses consldered [udgemenL (sln) ls hereby rendered flndlng Lhe dlsmlssal of complalnanLs CrlsLlna AmorLlzado and
Corazon !amer Lo be lllegal and concomlLanLly (r)espondenLs are hereby ordered Lo pay complalnanLs Corazon !amer Lhe amounL of
12346000 and CrlsLlna AmorLlzado Lhe amounL of 12346000 represenLlng full backwages from Lhe Llme of Lhelr dlsmlssal (AugusL 31
1990) Llll acLual or payroll relnsLaLemenL aL Lhe opLlon of Lhe respondenL (compuLed unLll promulgaLlon only) 8espondenLs are also hereby
furLher ordered Lo relnsLaLe Lhe complalnanLs Lo Lhelr former poslLlon as SLore Cashlers wlLhouL loss of senlorlLy rlghLs prlvlleges and beneflLs
fallure Lo do so backwages shall conLlnue Lo run buL ln no case Lo exceed Lhree (3) years
8espondenLs are also ordered Lo pay complalnanLs Lhe amounL of 2309200 represenLlng 10 aLLorneys fees based ln Lhe LoLal [udgemenL
(sln) award of 23092000
SC C8uL8Lu
14

ulssaLlsfled over Lhe declslon of Lhe Labor ArblLer whlch sLruck prlvaLe respondenLs as grossly conLrary Lo Lhe evldence presenLed Lhe hereln prlvaLe respondenLs
once agaln appealed Lo Lhe nL8C And as earller sLaLed Lhe nL8C rendered Lhe challenged declslon
1S
on november 12 1993 vacaLlng Lhe declslon of Lhe Labor
ArblLer and enLerlng a new one dlsmlsslng Lhe peLlLloners complalnL
Pence Lhls peLlLlon whereln Lhe maln lssue Lo be resolved ls wheLher nL8C commlLLed grave abuse of dlscreLlon ln flndlng LhaL peLlLloners were valldly dlsmlssed on
Lhe ground of loss of LrusL and confldence
AL Lhe ouLseL Lhe CourL noLes peLlLloners lnexcusable fallure Lo move for Lhe reconslderaLlon of respondenL nL8Cs declslon 1hus Lhe presenL peLlLlon suffers from a
procedural defecL LhaL warranLs lLs ouLrlghL dlsmlssal Whlle ln some excepLlonal cases we allowed Lhe lmmedlaLe recourse Lo Lhls CourL we flnd noLhlng hereln LhaL
could warranL an excepLlonal LreaLmenL Lo Lhls peLlLlon whlch wlll [usLlfy Lhe omlsslon 1hls premaLure acLlon of peLlLloners consLlLuLes a faLal lnflrmlLy as ruled ln a
long llne of declslons
16
mosL recenLly ln Lhe case of ollJloq cfte ctptftlo vs Nftlofl lfbt kelftlos clsslo et fl
17

1he flllng of such a moLlon ls lnLended Lo afford publlc respondenL an opporLunlLy Lo correcL any acLual or fancled error aLLrlbuLed Lo lL by way
of a reexamlnaLlon of Lhe legal and facLual aspecLs of Lhe case eLlLloners lnacLlon or negllgence under Lhe clrcumsLances ls LanLamounL Lo a
deprlvaLlon of Lhe rlghL and opporLunlLy of Lhe respondenL Commlsslon Lo cleanse lLself of an error unwlLLlngly commlLLed or Lo vlndlcaLe lLself
of an acL unfalrly lmpuLed
And for fallure Lo avall of Lhe correcL remedy expressly provlded by law peLlLloner has permlLLed Lhe sub[ecL 8esoluLlon Lo become flnal and
execuLory afLer Lhe lapse of Lhe Len day perlod wlLhln whlch Lo flle such moLlon for reconslderaLlon
Llkewlse a moLlon for reconslderaLlon ls an adequaLe remedy hence nettltftl proceedlngs as ln Lhls case wlll noL prosper
18
8ule 63 SecLlon 1 of Lhe
8ules of Clvll rocedure as amended clearly provldes LhaL
When any Lrlbunal board or offlcer exerclslng [udlclal or quasl[udlclal funcLlons has acLed wlLhouL or ln excess of lLs or hls [urlsdlcLlon or wlLh
grave abuse of dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon and Lhere ls no appeal or any plaln speedy and adequaLe remedy ln Lhe
ordlnary course of law a person aggrleved Lhereby may flle a verlfled peLlLlon ln Lhe proper courL alleglng Lhe facLs wlLh cerLalnLy and praylng
LhaL [udgmenL be rendered annulllng or modlfylng Lhe proceedlngs of such Lrlbunal board or offlcer
1he unquesLloned rule ln Lhls [urlsdlcLlon ls LhaL nettltftl wlll lle only lf Lhere ls no appeal or any oLher plaln speedy and adequaLe remedy ln Lhe ordlnary course of
law agalnsL Lhe acLs of respondenL
19
ln Lhe case aL bench Lhe plaln and adequaLe remedy referred Lo ln 8ule 63 SecLlon 1 ls a moLlon for reconslderaLlon of Lhe
challenged declslon and Lhe resoluLlon Lhereof whlch was expecLed Lo provlde an adequaLe and a more speedy remedy Lhan Lhe presenL peLlLlon for nettltftl
eLlLloners asseveraLe LhaL respondenL nL8C commlLLed a grave abuse of dlscreLlon when lL reversed Lhe flndlngs of facLs of Lhe Labor ArblLer
We flnd sald submlsslons unLenable
ln asserLlng LhaL Lhere was grave abuse of dlscreLlon peLlLloners adverL Lo alleged varlances ln Lhe facLual flndlngs of Lhe Labor ArblLer and Lhe respondenL nL8C 1hls
ls lnepL and erroneous llrsLly errors of [udgmenL as dlsLlngulshed from errors of [urlsdlcLlon are noL wlLhln Lhe provlnce of a speclal clvll acLlon
for nettltftl
20
Secondly a careful readlng of Lhe records of Lhls case would readlly show LhaL lf Lhere ls any error by publlc respondenL ln lLs analysls of Lhe facLs and
lLs evaluaLlon of Lhe evldence lL ls noL of such a degree as may be sLlgmaLlzed as a grave abuse of dlscreLlon Crave abuse of dlscreLlon ls commlLLed when Lhe
[udgmenL ls rendered ln a caprlclous whlmslcal arblLrary or despoLlc manner An abuse of dlscreLlon does noL necessarlly follow [usL because Lhere ls a reversal by
Lhe nL8C of Lhe declslon of Lhe Labor ArblLer nelLher does Lhe mere varlance ln Lhe evldenLlary assessmenL of Lhe nL8C and LhaL of Lhe Labor ArblLer would as a
maLLer of course so warranL anoLher full revlew of Lhe facLs 1he nL8Cs declslon so long as lL ls noL berefL of supporL from Lhe records deserves respecL from Lhe
CourL
21

We musL once more relLeraLe our much repeaLed buL noL wellheeded rule LhaL Lhe speclal clvll acLlon for nettltftlls a remedy deslgned for Lhe correcLlon of errors
of [urlsdlcLlon and noL errors of [udgmenL 1he raLlonale for Lhls rule ls slmple When a courL exerclses lLs [urlsdlcLlon an error commlLLed whlle so engaged does noL
deprlve lL of Lhe [urlsdlcLlon belng exerclsed when Lhe error ls commlLLed lf lL dld every error commlLLed by a courL would deprlve lL of lLs [urlsdlcLlon and every
erroneous [udgmenL would be a vold [udgmenL 1hls cannoL be allowed 1he admlnlsLraLlon of [usLlce would noL counLenance such a rule ConsequenLly an error of
[udgmenL LhaL Lhe courL may commlL ln Lhe exerclse of lLs [urlsdlcLlon ls noL correcLlble Lhrough Lhe orlglnal speclal clvll acLlon of nettltftl
22

Cn Lhe merlLs we flnd and so hold LhaL subsLanLlal evldence exlsLs Lo warranL Lhe flndlng LhaL peLlLloners were valldly dlsmlssed for [usL cause and afLer observance
of due process
under Lhe Labor Code as amended Lhe requlremenLs for Lhe lawful dlsmlssal of an employee by hls employer are Lwofold Lhe subsLanLlve and Lhe procedural noL
only musL Lhe dlsmlssal be for a valld or auLhorlzed cause as provlded by law (ArLlcles 282 283 and 284 of Lhe Labor Code as amended) buL Lhe rudlmenLary
requlremenLs of due process baslc of whlch are Lhe opporLunlLy Lo be heard and Lo defend hlmself musL be observed before an employee may be dlsmlssed
23

WlLh respecL Lo Lhe flrsL requlslLe ArLlcle 282 of Lhe Labor Code as amended provldes
ArL 282 1ermlnaLlon by Lmployer An employer may LermlnaLe an employmenL for any of Lhe followlngs causes
(a) Serlous mlsconducL or wlllful dlsobedlence by Lhe employee of Lhe lawful orders of hls employer or represenLaLlve ln
connecLlon wlLh hls work
(b) Cross and hablLual neglecL by Lhe employee of hls duLles
(c) tfoJ t lllol btefnb by tbe eplyee tbe ttost tepseJ lo bl by bls eplyet t Joly fotbtlzeJ tepteseotftlve
(d) Commlsslon of a crlme or offense by Lhe employee agalnsL Lhe person of hls employer or any lmmedlaLe member of
hls famlly or hls duly auLhorlzed represenLaLlve and
(e) CLher causes analogous Lo Lhe foregolng (Lmphasls supplled)
ln Lhe lnsLanL case we flnd no dlfflculLy ln agreelng wlLh Lhe flndlngs of Lhe publlc respondenL LhaL Lhe hereln peLlLloners were gullLy of acLs of dlshonesLy by lncurrlng
several occurrences of shorLages ln Lhe amounLs of 1333378 100000 43000 and 7000 whlch Lhey falled Lo Lurnover and accounL for/and ln behalf of
respondenL lseLann llLLlngly Lhe flndlngs of Lhe nL8C are worLh sLresslng aL Lhls polnL Lo wlL
WlLh regard Lo Lhe several occurrences of shorLages of Lhe amounLs of 1333378 100000 and 7000 Lhe Labor ArblLer has falled Lo
conslder Lhe facL LhaL complalnanLsappellees were accorded Lhe chance Lo explaln Lhelr slde as Lo Lhe shorLages and LhaL Lhey have uLLerly
falled Lo do so provldlng basls for Lhelr valld dlsmlssal 1hls facL has been esLabllshed by Lhe respondenLsappellanLs ln Lhe flndlngs of Lhe
CommlLLee on ulsclpllne on LxhlblLs 3 3A Lo 3u as follows
a) o tbe bttfqe l15578
1he 3 respondenLs LuLgarda lnducLa CrlsLy AmorLlzado and Corazon !amer denled any lnvolvemenL ln Lhe loss of
1333378 Altboqb tbe oey ls ooJet tbelt tesposlblllty ot oe tbe qfve foy eplfoftlo fbot tbe sbttfqe t
lss
b) o tbe foot l100000 btteJ by loJontf t Ifet
Cn !uly 18 1990 LuLgarda lnducLa borrowed money from respondenLs (sln) !amer amounLlng Lo 100000 Lo cover her
shorLage
Ms !amer sald LhaL Ms lnducLa pald Lhe amounL on LhaL day ot Ms Ifet JlJ ot teptt tbe sbttfqe
c) o tbe uoJetJepslt cfsb l45000
1he compuLaLlon of Ms AmorLlzados sales collecLlons lasL !uly 14 1990 resulLed Lo an overage of 33000 AmorLlzado
Lurned over Lhe amounL of 33000 Lo cover up a shorLage lncurred by her and Mrs lnducLa
!amer used Lhe money glven Lo her by AmorLlzado (33000) and borrowed (13000) from Lhe change fund Lo cover Lhe
LoLal shorLage amounLlng Lo 30000 whlch she had Lhen
!amer cannoL Lrace how Lhe shorLage came abouL lnducLa and !amer shouldered Lhe LoLal shorLage amounLlng Lo
30000 33000 for !amer and 20000 for lnducLa !amer clalmed LhaL she reLurned Lhe 33000 ln Lhe box Powever
Lhe clalm of respondenL was furLher verlfled from Lhe payroll secLlon whlch revealed LhaL a vfloe sllp was lssued lasL !uly
1990 !amer and lnducLa were charged for 20000 each A value sllp was lssued lasL AugusL 10 1990 charglng 10000 Lo
AmorLlzado
Ifet fJltteJ tbft sbe flleJ t lot tbe AoJlt tf teqftJloq tbe 5000 vetfqe blnb sbe tenelveJ t
AttlzfJ A(s) per reporL of Ms Agnes Conzales daLed 26 !uly 1990 Lhere was a LoLal under deposlL of cash amounLlng
Lo 43000
1oLal cash admlLLed 6342803
(cash ln drawer)
1oLal cash remlLLed 6497803
(per Lally sheeL)
Cverage 43000
d) o tbe l7000 vet kepleolsbeot letty cfsb peoses
uurlng Lhe 3rd AdmlnlsLraLlve hearlng Lhe CommlLLee lnformed Mrs AmorLlzado regardlng Lhe over replenlshmenL of
peLLy cash expenses as revealed by Lhe llnance Manager lasL AugusL 10 1990
Mrs AmorLlzado readlly admlLLed and explalned LhaL she forgoL Lo lnform Mrs lnducLa regardlng Lhe 7000 She
admlLLed her fallure Lo correcL Lhe amounL from 10000 Lo 3000 (LoLal expenses spenL for Lhe Laxl falr)
She added Lhe she prevlously lncurred a shorLage amounLlng Lo 10000 1hen she used Lhe 7000 Lo cover for Lhe
shorLage 1he remalnlng balance of 3000 was pald by AmorLlzado
AmorLlzado lnformed Lhe CommlLLee LhaL she ls wllllng Lo refund Lhe 7000 shorLage (Lmphasls supplled)
24

lrom Lhe foregolng premlses lL ls crysLal clear LhaL Lhe fallure of peLlLloners Lo reporL Lhe aforequoLed shorLages and overages Lo managemenL as soon as Lhey arose
resulLed ln Lhe breach of Lhe flduclary LrusL reposed ln Lhem by respondenL company Lhereby causlng Lhe laLLer Lo lose confldence ln Lhem 1hls warranLs Lhelr
dlsmlssal Moreover lL musL be polnLed ouL LhaL hereln peLlLloners have ln facL admlLLed Lhe underpaymenL of 43000 noL only ln Lhelr Slnumpaang Salaysay buL
also durlng Lhe hearlng conducLed before Labor ArblLer ablo C LsplruLu
2S
And Lhe record shows LhaL Lhe peLlLloners ln facL made a lasL dlLch efforL Lo conceal Lhe
same Were lL noL for lLs Llmely dlscovery by prlvaLe respondenLs LrusLed employees Lhe lncldenL could noL have been dlscovered aL all lurLhermore lL ls worLh
sLresslng aL Lhls [uncLure LhaL Lhe peLlLloners have also expressly admlLLed Lhe shorLage of 1333378 a subsLanLlal amounL ln Lhelr respecLlve sworn
sLaLemenLs and Lhey were noL able Lo saLlsfacLorlly explaln such shorLage
26
1he CourL ls convlnced LhaL Lhese parLlcular acLs or omlsslons provlded lseLann wlLh
enough basls Lo forfelL lLs LrusL and confldence over hereln peLlLloners
1he nL8C Lherefore dld noL acL wlLh grave abuse of dlscreLlon ln declarlng LhaL peLlLloners were legally dlsmlssed from employmenL 1he fallure of peLlLloners Lo
reporL Lo managemenL Lhe aforemenLloned lrregularlLles consLlLuLe fraud or wlllful breach of Lhe LrusL reposed ln Lhem by Lhelr employer or duly auLhorlzed
represenLaLlve one of Lhe [usL causes ln LermlnaLlng employmenL as provlded for by paragraph (c) ArLlcle 282 of Lhe Labor Code as amended
ln oLher words peLlLloners admlsslons ln Lhelr sworn sLaLemenLs LogeLher wlLh Lhe oLher documenLary evldences on record consLlLuLed breach of LrusL on Lhelr parL
whlch [usLlfles Lhelr dlsmlssal rlvaLe respondenLs lseLann ueparLmenL SLore and Mr !ohn Co cannoL be compelled Lo reLaln employees who are clearly gullLy of
malfeasance as Lhelr conLlnued employmenL wlll be pre[udlclal Lo Lhe formers besL lnLeresL
27
1he law ln proLecLlng Lhe rlghLs of Lhe employees auLhorlzes nelLher
oppresslon nor selfdesLrucLlon of Lhe employer
28

1he cause of soclal [usLlce ls noL served by upholdlng Lhe lnLeresL of peLlLloners ln dlsregard of Lhe rlghL of prlvaLe respondenLs Soclal [usLlce ceases Lo be an effecLlve
lnsLrumenL for Lhe equallzaLlon of Lhe soclal and economlc forces by Lhe SLaLe when lL ls used Lo shleld wrongdolng
29
Whlle lL ls Lrue LhaL compasslon and human
conslderaLlon should gulde Lhe dlsposlLlon of cases lnvolvlng LermlnaLlon of employmenL slnce lL affecLs ones source or means of llvellhood lL should noL be
overlooked LhaL Lhe beneflLs accorded Lo labor do noL lnclude compelllng an employer Lo reLaln Lhe servlces of an employee who has been shown Lo be a gross
llablllLy Lo Lhe employer lL should be made clear LhaL when Lhe law LllLs Lhe scale of [usLlce ln favor of labor lL ls buL a recognlLlon of Lhe lnherenL economlc lnequallLy
beLween labor and managemenL 1he lnLenL ls Lo balance Lhe scale of [usLlce Lo puL Lhe Lwo parLles on relaLlvely equal poslLlons 1here may be cases where Lhe
clrcumsLances warranL favorlng labor over Lhe lnLeresLs of managemenL buL never should Lhe scale be so LllLed lf Lhe resulL ls an ln[usLlce Lo Lhe employer Iostlnlf
telol teqftJf est (!usLlce ls Lo be denled Lo none)
30

1hus Lhls CourL has held Llme and agaln ln a number of declslons
31
LhaL
Loss of confldence ls a valld ground for dlsmlsslng an employee and proof beyond reasonable doubL of Lhe employees mlsconducL ls noL
requlred Lo dlsmlss hlm on Lhls charge lL ls sufflclenL lf Lhere ls some basls for such loss of confldence or lf Lhe employer has reasonable
ground Lo belleve or Lo enLerLaln Lhe moral convlcLlon LhaL Lhe employee concerned ls responslble for Lhe mlsconducL and LhaL Lhe naLure of
hls parLlclpaLlon Lhereln rendered hlm absoluLely unworLhy of Lhe LrusL and confldence demanded by hls poslLlon
32

arenLheLlcally Lhe facL LhaL peLlLloners !amer and AmorLlzado had worked for respondenL company for fourLeen (14) and LhlrLeen (13) years respecLlvely should be
Laken agalnsL Lhem 1he lnfracLlons LhaL Lhey commlLLed noLwlLhsLandlng Lhelr long years of servlce wlLh Lhe company reflecLs a regreLLable lack of loyalLy loyalLy
LhaL Lhey should have sLrengLhened lnsLead of beLrayed lf Lhe peLlLloners lengLh of servlce ls Lo be regarded as a [usLlfylng clrcumsLance ln moderaLlng Lhe dlsmlssal
lL wlll acLually become a prlze for dlsloyalLy perverLlng Lhe meanlng of soclal [usLlce and undermlnlng Lhe efforLs of labor Lo cleanse lLs ranks of all undeslrables
33

eLlLloners also malnLaln LhaL Lhe nL8C acLed wlLh grave abuse of dlscreLlon when lL falled Lo conslder Lhe facL LhaL oLher Lhan peLlLloners Lhemselves Lhere were
four (4) oLher persons who had access Lo Lhe company vaulLs and hence could have been responslble for Lhe aforesald cash shorLages lmpuLed Lo Lhem 1hey aver
Lherefore LhaL Lhere was a serlous flaw and laxlLy ln Lhe supervlslon and handllng of company funds by respondenL lseLann
34

We also flnd Lhls conLenLlon devold of merlL
llrsL lL musL be polnLed ouL LhaL Lhe peLlLloners remark LhaL Lhere was laxlLy ln Lhe accounLlng procedures of Lhe company ls a maLLer addressed Lo Lhe respondenL
employer Powever Lhls does noL excuse dlshonesLy of employees and should noL ln any case hamper Lhe rlghL of Lhe employer Lo LermlnaLe Lhe employmenL of
peLlLloners on Lhe ground of loss of confldence or breach of LrusL reclsely Lhe accounLlng procedure whlch called for lmprovemenLs was based prlmarlly on LrusL
and confldence
3S

Secondly lL musL be noLed LhaL Lhe hereln peLlLloners were stte nfsblets and as such a speclal and unlque employmenL relaLlonshlp exlsLs beLween Lhem and Lhe
respondenL company More Lhan mosL key poslLlons LhaL of cashler calls for Lhe uLmosL LrusL and confldence because Lhelr prlmary funcLlon lnvolves baslcally Lhe
handllng of a hlghly essenLlal properLy of Lhe respondenL employer Lhe sales and revenues of Lhe sLore Lmployers are consequenLly glven wlder laLlLude of
dlscreLlon ln LermlnaLlng Lhe employmenL of managerlal employees or oLher personnel occupylng poslLlons of responslblllLy such as ln Lhe lnsLanL case Lhan ln Lhe
case of ordlnary rankandflle employees whose LermlnaLlon on Lhe basls of Lhese same grounds requlres proof of lnvolvemenL ln Lhe malfeasance ln quesLlon Mere
uncorroboraLed asserLlons and accusaLlons by Lhe employer wlll noL sufflce
36
ln LhaL respecL we quoLe wlLh approval Lhe observaLlons of Lhe nL8C
1o expound furLher for Lhe poslLlon of a cashler Lhe honesLy and lnLegrlLy of Lhe persons assumlng sald poslLlon are Lhe prlmary conslderaLlons
for Lhe naLure of her work requlres LhaL her acLuaLlons should be beyond susplclon as Lhey are accorded Lhe responslblllLy of handllng money
and whaLever Lhey would do Lo such properLy of Lhe employer largely depend on Lhelr LrusLworLhlness Pence Lhe rlghL of Lhe employer Lo
dlsmlss a cashler gullLy of breach of LrusL and confldence should be recognlzed ln a case declded by Lhe Supreme CourL lL has been ruled LhaL
PonesLy and lnLegrlLy are Lhe prlmary conslderaLlons ln peLlLloners poslLlon 1he naLure of hls work requlres LhaL Lhe
acLuaLlons should be beyond susplclon Cur empaLhy wlLh Lhe cause of labor should noL bllnd us Lo Lhe rlghLs of
managemenL As we have held Lhls CourL should help sLamp ouL raLher Lhan LoleraLe Lhe commlsslon of lrregular acLs
whenever Lhese are noLed MalpracLlces should noL be allowed Lo conLlnue buL should be rebuked (uel Carmen vs nL8C
203 SC8A 243)
37

llnally we are convlnced LhaL Lhe nL8C dld noL commlL grave abuse of dlscreLlon ln evaluaLlng Lhe evldence eLlLloners merely denled Lhe charges agalnsL Lhem
uenlals are weak forms of defenses parLlcularly when Lhey are noL subsLanLlaLed by clear and convlnclng evldence
38
1he peLlLloners fallure Lo saLlsfacLorlly explaln
Lhe cash shorLages for whlch sums Lhey are responslble glven Lhelr respecLlve poslLlons ln respondenL company ls enough reason Lo warranL Lhelr dlsmlssal on Lhe
ground of loss of confldence 1hey cannoL place Lhe burden on somebody else glven Lhe facLual clrcumsLances of Lhls case As succlncLly puL by Lhe nL8C
1haL Lhere were oLher persons who had access Lo Lhe vaulLs of Lhe appellanL company lmplylng LhaL Lhese oLher persons could have been
responslble for Lhe loss of Lhe 1333378 ls of no momenL lnasmuch as Lhe appellees were Lhe ones who Look flrsL cusLody of Lhe possesslon of
sald collecLlons As sLore cashlers lL ls expecLed of Lhem Lo exerclse ordlnary prudence Lo counL Lhe collecLlon and record Lhe same ln Lhe Lally
sheeL before deposlLlng Lo sald vaulL Lo avold a sllghLesL susplclon of havlng pockeLed parL of lL should a shorLage arlse 1hey dld noL exerL
efforLs Lo exerclse such prudence demanded of Lhelr poslLlons hence appellanLs should noL be blamed when Lhey were called for an
lnvesLlgaLlon when sald shorLage was dlscovered
xxx xxx xxx
1haL Lhe occurrence of shorLages ls merely an lsolaLed one and Lherefore should noL be Laken agalnsL Lhe complalnanLappellees as a ground
for loss of LrusL and confldence LhaL would cause Lhelr LermlnaLlon cannoL be glven any credence 1he shorLages havlng been esLabllshed and
admlLLed has provlded Lhe employer sufflclenL basls for loss of confldence and wheLher such occurrence ls merely an lsolaLed one or has been
repeaLedly commlLLed ls no longer maLerlal 1he bone of conLenLlon here ls wheLher Lhere ls some basls for such loss of LrusL and confldence
and lf Lhe employer has reasonable ground Lo belleve or Lo enLerLaln Lhe moral convlcLlon LhaL Lhe employee concerned ls responslble for Lhe
mlsconducL whlch ln Lhe lnsLanL case has been esLabllshed
39

We relLeraLe Lhe rule LhaL ln cases of dlsmlssal for breach of LrusL and confldence proof beyond doubL of Lhe employees mlsconducL ls noL requlred lL ls sufflclenL
LhaL Lhe employer had reasonable ground Lo belleve LhaL Lhe employees are responslble for Lhe mlsconducL whlch renders hlm unworLhy of Lhe LrusL and confldence
demanded by Lhelr poslLlon
40
ln Lhe case aL hand lL cannoL be doubLed LhaL respondenLs succeeded ln dlscharglng lLs burden of proof
As regards Lo Lhe second requlslLe Lhe law requlres LhaL Lhe employer musL furnlsh Lhe worker soughL Lo be dlsmlssed wlLh Lwo (2) wrlLLen noLlces before
LermlnaLlon may be valldly effecLed flrsL a noLlce apprlslng Lhe employee of Lhe parLlcular acLs or omlsslon for whlch hls dlsmlssal ls soughL and second a
subsequenL noLlce lnformlng Lhe employee of Lhe declslon Lo dlsmlss hlm
41

ln accordance wlLh Lhls requlremenL peLlLloners were glven Lhe requlred noLlces on AugusL 2 1990 and Lhen on AugusL 23 1990 1he CourL flnds LhaL peLlLloners
were accorded due process before Lhey were dlsmlssed on AugusL 31 1990 lL ls a wellesLabllshed rule LhaL Lhe essence of due process ls slmply an opporLunlLy Lo be
heard or as applled Lo admlnlsLraLlve proceedlngs an opporLunlLy Lo explaln ones slde or an opporLunlLy Lo seek a reconslderaLlon of Lhe acLlon or rullng complalned
of
42
lL ls evldenL from Lhe records LhaL hereln peLlLloners were glven all Lhe opporLunlLles Lo defend Lhemselves and alr Lhelr slde before Lhe CommlLLee on
ulsclpllne havlng been noLlfled by respondenL lseLanns Puman 8esources ulvlslon Manager 1ereslLa A vlllanueva on AugusL 2 1990 Lhrough leLLers lndlvldually
senL Lo Lhem Powever when Lhe peLlLloners were confronLed wlLh reporLs of Lhe anomalles Lhey offered no explanaLlon or Lheory whlch could accounL for money
losL ln Lhelr possesslon Pence Lhe company had no oLher alLernaLlve buL Lo LermlnaLe Lhelr employmenL As we elucldaLed ln Lhe case of lblllpploe fvloqs fok
vs Nftlofl lfbt kelftlos clsslo
43
Lo wlL
Lhe requlremenL of due process ls saLlsfled when a falr and reasonable opporLunlLy Lo explaln hls slde of Lhe conLroversy ls afforded Lhe
parLy A formal or LrlalLype hearlng ls noL aL all Llmes and ln all clrcumsLances essenLlal especlally when Lhe employee chooses noL Lo speak
WPL8LlC8L Lhe assalled declslon of Lhe naLlonal Labor 8elaLlons Commlsslon ln nL8C nC8 CA 00207491 ls hereby Alll8MLu 1he peLlLlon ls ulSMlSSLu for lack of
merlL
SC C8uL8Lu
hLLp//wwwlawphllneL/[ud[urls/[url1997/sep1997/gr_112630_1997hLml
Ln 8AnC
Gk No 117040 Ianuary 27 2000
kU8LN SLkkANC etitioner vs NA1ICNAL LA8Ck kLLA1ICNS CCMMISSICN and ISL1ANN DLAk1MLN1 S1CkL resondents
D L C I S I C N
MLNDC2A
1hls ls a peLlLlon seeklng revlew of Lhe resoluLlons daLed March 30 1994 and AugusL 26 1994 of Lhe naLlonal Labor 8elaLlons Commlsslon (nL8C) whlch reversed
Lhe declslon of Lhe Labor ArblLer and dlsmlssed peLlLloner 8uben Serrano's complalnL for lllegal dlsmlssal and denled hls moLlon for reconslderaLlon 1he facLs are as
follows
eLlLloner was hlred by prlvaLe respondenL lseLann ueparLmenL SLore as a securlLy checker Lo apprehend shopllfLers and prevenL pllferage of merchandlse11
lnlLlally hlred on CcLober 4 1984 on conLracLual basls peLlLloner evenLually became a regular employee on Aprll 4 1983 ln 1988 he became head of Lhe SecurlLy
Checkers SecLlon of prlvaLe respondenL22
SomeLlme ln 1991 as a cosLcuLLlng measure prlvaLe respondenL declded Lo phase ouL lLs enLlre securlLy secLlon and engage Lhe servlces of an lndependenL securlLy
agency lor Lhls reason lL wroLe peLlLloner Lhe followlng memorandum33



CcLober 11 1991
M8 8u8Ln SL88AnC
8 L S L n 1
uear Mr Serrano
ln vlew of Lhe reLrenchmenL program of Lhe company we hereby relLeraLe our verbal noLlce Lo you of your LermlnaLlon as SecurlLy SecLlon
Pead effecLlve CcLober 11 1991
lease secure your clearance from Lhls offlce
very Lruly yours
Sgd 1L8LSl1A A vlLLAnuLvA
Puman 8esources ulvlslon Manager
1he loss of hls employmenL prompLed peLlLloner Lo flle a complalnL on uecember 3 1991 for lllegal dlsmlssal lllegal layoff unfalr labor pracLlce underpaymenL of
wages and nonpaymenL of salary and overLlme pay44
1he parLles were requlred Lo submlL Lhelr poslLlon papers on Lhe basls of whlch Lhe Labor ArblLer deflned Lhe lssues as follows33
WheLher or noL Lhere ls a valld ground for Lhe dlsmlssal of Lhe complalnanL
WheLher or noL complalnanL ls enLlLled Lo hls moneLary clalms for underpaymenL of wages nonpaymenL of salarles 13Lh monLh pay for 1991
and overLlme pay
WheLher or noL 8espondenL ls gullLy of unfalr labor pracLlce
1hereafLer Lhe case was heard Cn Aprll 30 1993 Lhe Labor ArblLer rendered a declslon flndlng peLlLloner Lo have been lllegally dlsmlssed Pe ruled LhaL prlvaLe
respondenL falled Lo esLabllsh LhaL lL had reLrenched lLs securlLy secLlon Lo prevenL or mlnlmlze losses Lo lLs buslness LhaL prlvaLe respondenL falled Lo accord due
process Lo peLlLloner LhaL prlvaLe respondenL falled Lo use reasonable sLandards ln selecLlng employees whose employmenL would be LermlnaLed LhaL prlvaLe
respondenL had noL shown LhaL peLlLloner and oLher employees ln Lhe securlLy secLlon were so lnefflclenL so as Lo [usLlfy Lhelr replacemenL by a securlLy agency or
LhaL cosLsavlng devlces such as secreL vldeo cameras (Lo monlLor and prevenL shopllfLlng) and secreL code Lags on Lhe merchandlse could noL have been
employed lnsLead Lhe day afLer peLlLloner's dlsmlssal prlvaLe respondenL employed a safeLy and securlLy supervlsor wlLh duLles and funcLlons slmllar Lo Lhose of
peLlLloner
Accordlngly Lhe Labor ArblLer ordered66
WPL8LlC8L above premlses consldered [udgmenL ls hereby decreed
(a)llndlng Lhe dlsmlssal of Lhe complalnanL Lo be lllegal and concomlLanLly 8espondenL ls ordered Lo pay complalnanL
full backwages wlLhouL quallflcaLlon or deducLlon ln Lhe amounL of 7474000 from Lhe Llme of hls dlsmlssal unLll
relnsLaLemenL (compuLed Llll promulgaLlon only) based on hls monLhly salary of 404000/monLh aL Lhe Llme of hls
LermlnaLlon buL llmlLed Lo (3) Lhree years
(b)Crderlng Lhe 8espondenL Lo lmmedlaLely relnsLaLe Lhe complalnanL Lo hls former poslLlon as securlLy secLlon head
or Lo a reasonably equlvalenL supervlsorlal poslLlon ln charges of securlLy wlLhouL loss of senlorlLy rlghLs prlvlleges and
beneflLs 1hls order ls lmmedlaLely execuLory even pendlng appeal
(c)Crderlng Lhe 8espondenL Lo pay complalnanL unpald wages ln Lhe amounL of 202073 and proporLlonaLe 13Lh
monLh pay ln Lhe amounL of 319830





(d)Crderlng Lhe 8espondenL Lo pay complalnanL Lhe amounL of 799391 represenLlng 10 aLLorney's fees based on
Lhe LoLal [udgmenL award of 7993912
All oLher clalms of Lhe complalnanL wheLher moneLary or oLherwlse ls hereby dlsmlssed for lack of merlL
SC C8uL8Lu
rlvaLe respondenL appealed Lo Lhe nL8C whlch ln lLs resoluLlon of March 30 1994 reversed Lhe declslon of Lhe Labor ArblLer and ordered peLlLloner Lo be glven
separaLlon pay equlvalenL Lo one monLh pay for every year of servlce unpald salary and proporLlonaLe 13Lh monLh pay eLlLloner flled a moLlon for reconslderaLlon
buL hls moLlon was denled
1he nL8C held LhaL Lhe phaseouL of prlvaLe respondenL's securlLy secLlon and Lhe hlrlng of an lndependenL securlLy agency consLlLuLed an exerclse by prlvaLe
respondenL of a leglLlmaLe buslness declslon whose wlsdom we do noL lnLend Lo lnqulre lnLo and for whlch we cannoL subsLlLuLe our [udgmenL LhaL Lhe
dlsLlncLlon made by Lhe Labor ArblLer beLween reLrenchmenL and Lhe employmenL of cosLsavlng devlces under ArL 283 of Lhe Labor Code was lnslgnlflcanL
because Lhe company offlclal who wroLe Lhe dlsmlssal leLLer apparenLly used Lhe Lerm reLrenchmenL ln lLs plaln and ordlnary sense Lo layoff or remove from one's
[ob regardless of Lhe reason Lherefor LhaL Lhe rule of reasonable crlLerla ln Lhe selecLlon of Lhe employees Lo be reLrenched dld noL apply because all poslLlons ln
Lhe securlLy secLlon had been abollshed and LhaL Lhe appolnLmenL of a safeLy and securlLy supervlsor referred Lo by peLlLloner Lo prove bad falLh on prlvaLe
respondenL's parL was of no momenL because Lhe poslLlon had long been ln exlsLence and was separaLe from peLlLloner's poslLlon as head of Lhe SecurlLy Checkers
SecLlon
Pence Lhls peLlLlon eLlLloner ralses Lhe followlng lssue
lS 1PL Pl8lnC Cl An lnuLLnuLn1 SLCu8l1? ACLnC? 8? 1PL 8lvA1L 8LSCnuLn1 1C 8LLACL l1S Cu88Ln1 SLCu8l1? SLC1lCn A vALlu
C8Cunu lC8 1PL ulSMlSSAL Cl 1PL LMLC?LLS CLASSLu unuL8 1PL LA11L8?77
eLlLloner conLends LhaL abollLlon of prlvaLe respondenL's SecurlLy Checkers SecLlon and Lhe employmenL of an lndependenL securlLy agency do noL fall under any of
Lhe auLhorlzed causes for dlsmlssal under ArL 283 of Lhe Labor Code
et|t|oner La|d Cff for Cause
eLlLloner's conLenLlon has no merlL ArL 283 provldes
clsote estfbllsbeot foJ teJontlo petsooel 1he employer may also LermlnaLe Lhe employmenL of any employee due Lo Lhe
lnsLallaLlon of laborsavlng devlces redundancy reLrenchmenL Lo prevenL losses or Lhe closlng or cessaLlon of operaLlons of Lhe esLabllshmenL
or underLaklng unless Lhe closlng ls for Lhe purpose of clrcumvenLlng Lhe provlslons of Lhls 1lLle by servlng a wrlLLen noLlce on Lhe workers and
Lhe ueparLmenL of Labor and LmploymenL aL leasL one (1) monLh before Lhe lnLended daLe Lhereof ln case of LermlnaLlon due Lo Lhe
lnsLallaLlon of laborsavlng devlces or redundancy Lhe worker affecLed Lhereby shall be enLlLled Lo a separaLlon pay equlvalenL Lo aL leasL one
(1) monLh pay or Lo aL leasL one (1) monLh pay for every year of servlce whlchever ls hlgher ln case of reLrenchmenL Lo prevenL losses and ln
cases of closure or cessaLlon of operaLlons of esLabllshmenL or underLaklng noL due Lo serlous buslness losses or flnanclal reverses Lhe
separaLlon pay shall be equlvalenL Lo aL leasL one (1) monLh pay or aL leasL onehalf (1/2) monLh pay for every year of servlce whlchever ls
hlgher A fracLlon of aL leasL slx (6) monLhs shall be consldered as one (1) whole year
ln ue nfp v Nftlofl lfbt kelftlos clsslo88 Lhls CourL upheld Lhe LermlnaLlon of employmenL of Lhree mechanlcs ln a LransporLaLlon company and
Lhelr replacemenL by a company renderlng malnLenance and repalr servlces lL held
ln conLracLlng Lhe servlces of Cemac Machlnerles as parL of Lhe company's cosLsavlng program Lhe servlces rendered by Lhe mechanlcs
became redundanL and superfluous and Lherefore properly Lermlnable 1he company merely exerclsed lLs buslness [udgmenL or managemenL
prerogaLlve And ln Lhe absence of any proof LhaL Lhe managemenL abused lLs dlscreLlon or acLed ln a mallclous or arblLrary manner Lhe courL
wlll noL lnLerfere wlLh Lhe exerclse of such prerogaLlve99
ln Aslfo Alnbl ctptftlo v Nftlofl lfbt kelftlos clsslo1010 Lhe CourL llkewlse upheld Lhe LermlnaLlon of employmenL of waLer pump Lenders and
Lhelr replacemenL by lndependenL conLracLors lL ruled LhaL an employer's good falLh ln lmplemenLlng a redundancy program ls noL necessarlly puL ln doubL by Lhe
avallmenL of Lhe servlces of an lndependenL conLracLor Lo replace Lhe servlces of Lhe LermlnaLed employees Lo promoLe economy and efflclency





lndeed as we polnLed ouL ln anoLher case Lhe managemenL of a company cannoL be denled Lhe faculLy of promoLlng efflclency and aLLalnlng economy by a sLudy
of whaL unlLs are essenLlal for lLs operaLlon 1o lL belongs Lhe ulLlmaLe deLermlnaLlon of wheLher servlces should be performed by lLs personnel or conLracLed Lo
ouLslde agencles Whlle Lhere should be muLual consulLaLlon evenLually deference ls Lo be pald Lo whaL managemenL decldes1111 ConsequenLly absenL
proof LhaL managemenL acLed ln a mallclous or arblLrary manner Lhe CourL wlll noL lnLerfere wlLh Lhe exerclse of [udgmenL by an employer1212
ln Lhe case aL bar we have only Lhe bare asserLlon of peLlLloner LhaL ln abollshlng Lhe securlLy secLlon prlvaLe respondenL's real purpose was Lo avold paymenL Lo
Lhe securlLy checkers of Lhe wage lncreases provlded ln Lhe collecLlve bargalnlng agreemenL approved ln 19901313 Such an asserLlon ls noL a sufflclenL basls for
concludlng LhaL Lhe LermlnaLlon of peLlLloner's employmenL was noL a bof lJe declslon of managemenL Lo obLaln reasonable reLurn from lLs lnvesLmenL whlch ls a
rlghL guaranLeed Lo employers under Lhe ConsLlLuLlon1414 lndeed LhaL Lhe phaseouL of Lhe securlLy secLlon consLlLuLed a leglLlmaLe buslness declslon ls a
facLual flndlng of an admlnlsLraLlve agency whlch musL be accorded respecL and even flnallLy by Lhls CourL slnce noLhlng can be found ln Lhe record whlch falrly
deLracLs from such flndlng1313
Accordlngly we hold LhaL Lhe LermlnaLlon of peLlLloner's servlces was for an auLhorlzed cause le redundancy Pence pursuanL Lo ArL 283 of Lhe Labor Code
peLlLloner should be glven separaLlon pay aL Lhe raLe of one monLh pay for every year of servlce
Sanct|ons for V|o|at|ons of the Not|ce kequ|rement
ArL 283 also provldes LhaL Lo LermlnaLe Lhe employmenL of an employee for any of Lhe auLhorlzed causes Lhe employer musL serve a wrlLLen noLlce on Lhe workers
and Lhe ueparLmenL of Labor and LmploymenL aL leasL one (1) monLh before Lhe lnLended daLe Lhereof ln Lhe case aL bar peLlLloner was glven a noLlce of
LermlnaLlon on CcLober 11 1991 Cn Lhe same day hls servlces were LermlnaLed Pe was Lhus denled hls rlghL Lo be glven wrlLLen noLlce before Lhe LermlnaLlon of
hls employmenL and Lhe quesLlon ls Lhe approprlaLe sancLlon for Lhe vlolaLlon of peLlLloner's rlghL
1o be sure Lhls ls noL Lhe flrsL Llme Lhls quesLlon has arlsen ln eboqoet v Nlkc1616 workers ln a garmenL facLory were Lemporarlly lald off due Lo Lhe
cancellaLlon of orders and a garmenL embargo 1he Labor ArblLer found LhaL Lhe workers had been lllegally dlsmlssed and ordered Lhe company Lo pay separaLlon pay
and backwages 1he nL8C on Lhe oLher hand found LhaL Lhls was a case of reLrenchmenL due Lo buslness losses and ordered Lhe paymenL of separaLlon pay wlLhouL
backwages 1hls CourL susLalned Lhe nL8C's flndlng Powever as Lhe company dld noL comply wlLh Lhe 30day wrlLLen noLlce ln ArL 283 of Lhe Labor Code Lhe CourL
ordered Lhe employer Lo pay Lhe workers 200000 each as lndemnlLy
1he declslon followed Lhe rullng ln several cases lnvolvlng dlsmlssals whlch alLhough based on any of Lhe [usL causes under ArL 2821717 were effecLed wlLhouL
noLlce and hearlng Lo Lhe employee as requlred by Lhe lmplemenLlng rules1818 As Lhls CourL sald lL ls now seLLled LhaL where Lhe dlsmlssal of one employee ls ln
facL for a [usL and valld cause and ls so proven Lo be buL he ls noL accorded hls rlghL Lo due process le he was noL furnlshed Lhe Lwln requlremenLs of noLlce and
opporLunlLy Lo be heard Lhe dlsmlssal shall be upheld buL Lhe employer musL be sancLloned for noncompllance wlLh Lhe requlremenLs of or for fallure Lo observe
due process1919
1he rule reversed a long sLandlng pollcy LhereLofore followed LhaL even Lhough Lhe dlsmlssal ls based on a [usL cause or Lhe LermlnaLlon of employmenL ls for an
auLhorlzed cause Lhe dlsmlssal or LermlnaLlon ls lllegal lf effecLed wlLhouL noLlce Lo Lhe employee 1he shlfL ln docLrlne Look place ln 1989 ln Jeopbll ctp v
Nlkc2020 ln announclng Lhe change Lhls CourL sald2121
1he CourL holds LhaL Lhe pollcy of orderlng Lhe relnsLaLemenL Lo Lhe servlce of an employee wlLhouL loss of senlorlLy and Lhe paymenL of hls
wages durlng Lhe perlod of hls separaLlon unLll hls acLual relnsLaLemenL buL noL exceedlng Lhree (3) years wlLhouL quallflcaLlon or deducLlon












when lL appears he was noL afforded due process alLhough hls dlsmlssal was found Lo be for [usL and auLhorlzed cause ln an approprlaLe
proceedlng ln Lhe MlnlsLry of Labor and LmploymenL should be reexamlned lL wlll be hlghly pre[udlclal Lo Lhe lnLeresLs of Lhe employer Lo
lmpose on hlm Lhe servlces of an employee who has been shown Lo be gullLy of Lhe charges LhaL warranLed hls dlsmlssal from employmenL
lndeed lL wlll demorallze Lhe rank and flle lf Lhe undeservlng lf noL undeslrable remalns ln Lhe servlce

Powever Lhe peLlLloner musL neverLheless be held Lo accounL for fallure Lo exLend Lo prlvaLe respondenL hls rlghL Lo an lnvesLlgaLlon before
causlng hls dlsmlssal 1he rule ls expllclL as above dlscussed 1he dlsmlssal of an employee musL be t jost t fotbtlzeJ nfose foJ ftet Joe
ptness eLlLloner commlLLed an lnfracLlon of Lhe second requlremenL 1hus lL musL be lmposed a sancLlon for lLs fallure Lo glve a formal
noLlce and conducL an lnvesLlgaLlon as requlred by law before dlsmlsslng peLlLloner from employmenL Conslderlng Lhe clrcumsLances of Lhls
case peLlLloner musL lndemnlfy Lhe prlvaLe respondenL Lhe amounL of 100000 1he measure of Lhls award depends on Lhe facLs of each case
and Lhe gravlLy of Lhe omlsslon commlLLed by Lhe employer
1he flnes lmposed for vlolaLlons of Lhe noLlce requlremenL have varled from 1000002222 Lo 2000002323 Lo 3000002424 Lo 10000002323
Need for keexam|n|ng the Jenhi/ Doctr|ne
1oday we once agaln conslder Lhe quesLlon of approprlaLe sancLlons for vlolaLlons of Lhe noLlce requlremenL ln llghL of our experlence durlng Lhe lasL decade or so
wlLh Lhe Jeopbll docLrlne 1he number of cases lnvolvlng dlsmlssals wlLhouL Lhe requlslLe noLlce Lo Lhe employee alLhough effecLed for [usL or auLhorlzed causes
suggesLs LhaL Lhe lmposlLlon of flne for vlolaLlon of Lhe noLlce requlremenL has noL been effecLlve ln deLerrlng vlolaLlons of Lhe noLlce requlremenL !usLlce
anganlban flnds Lhe moneLary sancLlons Loo lnslgnlflcanL Loo nlggardly and someLlmes even Loo laLe Cn Lhe oLher hand !usLlce uno says Lhere has ln effecL
been fosLered a pollcy of dlsmlss now pay laLer whlch moneyed employers flnd more convenlenL Lo comply wlLh Lhan Lhe requlremenL Lo serve a 30day wrlLLen
noLlce (ln Lhe case of LermlnaLlon of employmenL for an auLhorlzed cause under ArLs 283284) or Lo glve noLlce and hearlng (ln Lhe case of dlsmlssals for [usL causes
under ArL 282)
lor Lhls reason Lhey regard any dlsmlssal or layoff wlLhouL Lhe requlslLe noLlce Lo be null and vold even Lhough Lhere are [usL or auLhorlzed causes for such dlsmlssal
or layoff ConsequenLly ln Lhelr vlew Lhe employee concerned should be relnsLaLed and pald backwages
Va||d|ty of et|t|oner's Layoff Not Affected by Lack of Not|ce
We agree wlLh our esLeemed colleagues !usLlces uno and anganlban LhaL we should reLhlnk Lhe sancLlon of flne for an employer's dlsregard of Lhe noLlce
requlremenL We do noL agree however LhaL dlsregard of Lhls requlremenL by an employer renders Lhe dlsmlssal or LermlnaLlon of employmenL null and vold Such a
sLance ls acLually a reverslon Lo Lhe dlscredlLed preJeopbll rule of orderlng an employee Lo be relnsLaLed and pald backwages when lL ls shown LhaL he has noL been
glven noLlce and hearlng alLhough hls dlsmlssal or layoff ls laLer found Lo be for a [usL or auLhorlzed cause Such rule was abandoned ln Jeopbll because lL ls really
un[usL Lo requlre an employer Lo keep ln hls servlce one who ls gullLy for example of an aLLempL on Lhe llfe of Lhe employer or Lhe laLLer's famlly or when Lhe
employer ls preclsely reLrenchlng ln order Lo prevenL losses
1he need ls for a rule whlch whlle recognlzlng Lhe employee's rlghL Lo noLlce before he ls dlsmlssed or lald off aL Lhe same Llme acknowledges Lhe rlghL of Lhe
employer Lo dlsmlss for any of Lhe [usL causes enumeraLed ln ArL 282 or Lo LermlnaLe employmenL for any of Lhe auLhorlzed causes menLloned ln ArLs 283284 lf Lhe
Jeopbll rule lmposlng a flne on an employer who ls found Lo have dlsmlssed an employee for cause wlLhouL prlor noLlce ls deemed lneffecLlve ln deLerrlng employer
vlolaLlons of Lhe noLlce requlremenL Lhe remedy ls noL Lo declare Lhe dlsmlssal vold lf Lhere are [usL or valld grounds for such dlsmlssal or lf Lhe LermlnaLlon ls for an
auLhorlzed cause 1haL would be Lo uphold Lhe rlghL of Lhe employee buL deny Lhe rlghL of Lhe employer Lo dlsmlss for cause 8aLher Lhe remedy ls Lo order Lhe
paymenL Lo Lhe employee of full backwages from Lhe Llme of hls dlsmlssal unLll Lhe courL flnds LhaL Lhe dlsmlssal was for a [usL cause 8uL oLherwlse hls dlsmlssal
musL be upheld and he should noL be relnsLaLed 1hls ls because hls dlsmlssal ls lneffecLual
lor Lhe same reason lf an employee ls lald off for any of Lhe causes ln ArLs 283284 le lnsLallaLlon of a laborsavlng devlce buL Lhe employer dld noL glve hlm and
Lhe uCLL a 30day wrlLLen noLlce of LermlnaLlon ln advance Lhen Lhe LermlnaLlon of hls employmenL should be consldered lneffecLual and he should be pald
backwages Powever Lhe LermlnaLlon of hls employmenL should noL be consldered vold buL he should slmply be pald separaLlon pay as provlded ln ArL 283 ln
addlLlon Lo backwages
!usLlce uno argues LhaL an employer's fallure Lo comply wlLh Lhe noLlce requlremenL consLlLuLes a denlal of Lhe employee's rlghL Lo due process resclndlng from
Lhls premlse he quoLes Lhe sLaLemenL of Chlef !usLlce Concepclon ln vJf Je cofynoq v vJf Je eoqbeoqn2626 LhaL acLs of Congress as well as of Lhe
LxecuLlve can deny due process only under Lhe paln of nulllLy and [udlclal proceedlngs sufferlng from Lhe same flaw are sub[ecL Lo Lhe same sancLlon any sLaLuLory






provlslon Lo Lhe conLrary noLwlLhsLandlng !usLlce uno concludes LhaL Lhe dlsmlssal of an employee wlLhouL noLlce and hearlng even lf for a [usL cause as provlded
ln ArL 282 or for an auLhorlzed cause as provlded ln ArLs 283284 ls a nulllLy Pence even lf [usL or auLhorlzed causes exlsL Lhe employee should be relnsLaLed wlLh
full back pay Cn Lhe oLher hand !usLlce anganlban quoLes from Lhe sLaLemenL ln leple v nft2727 LhaL where Lhe denlal of Lhe fundamenLal rlghL of due
process ls apparenL a declslon rendered ln dlsregard of LhaL rlghL ls vold for lack of [urlsdlcLlon
Iio/otion of Notice kequirement Not o uenio/ of uue Process
1he cases clLed by boLh !usLlces uno and anganlban refer however Lo Lhe denlal of due process by Lhe SLaLe whlch ls noL Lhe case here 1here are Lhree reasons
why on Lhe oLher hand vlolaLlon by Lhe employer of Lhe noLlce requlremenL cannoL be consldered a denlal of due process resulLlng ln Lhe nulllLy of Lhe employee's
dlsmlssal or layoff
1he flrsL ls LhaL Lhe uue rocess Clause of Lhe ConsLlLuLlon ls a llmlLaLlon on governmenLal powers lL does noL apply Lo Lhe exerclse of prlvaLe power such as Lhe
LermlnaLlon of employmenL under Lhe Labor Code 1hls ls plaln from Lhe LexL of ArL lll 1 of Lhe ConsLlLuLlon vlz no person shall be deprlved of llfe llberLy or
properLy wlLhouL due process of law 1he reason ls slmple Cnly Lhe SLaLe has auLhorlLy Lo Lake Lhe llfe llberLy or properLy of Lhe lndlvldual 1he purpose of Lhe
uue rocess Clause ls Lo ensure LhaL Lhe exerclse of Lhls power ls conslsLenL wlLh whaL are consldered clvlllzed meLhods
1he second reason ls LhaL noLlce and hearlng are requlred under Lhe uue rocess Clause before Lhe power of organlzed socleLy are broughL Lo bear upon Lhe
lndlvldual 1hls ls obvlously noL Lhe case of LermlnaLlon of employmenL under ArL 283 Pere Lhe employee ls noL faced wlLh an aspecL of Lhe adversary sysLem 1he
purpose for requlrlng a 30day wrlLLen noLlce before an employee ls lald off ls noL Lo afford hlm an opporLunlLy Lo be heard on any charge agalnsL hlm for Lhere ls
none 1he purpose raLher ls Lo glve hlm Llme Lo prepare for Lhe evenLual loss of hls [ob and Lhe uCLL an opporLunlLy Lo deLermlne wheLher economlc causes do exlsL
[usLlfylng Lhe LermlnaLlon of hls employmenL
Lven ln cases of dlsmlssal under ArL 282 Lhe purpose for Lhe requlremenL of noLlce and hearlng ls noL Lo comply wlLh uue rocess Clause of Lhe ConsLlLuLlon 1he
Llme for noLlce and hearlng ls aL Lhe Lrlal sLage 1hen LhaL ls Lhe Llme we speak of noLlce and hearlng as Lhe essence of procedural due process 1hus compllance by
Lhe employer wlLh Lhe noLlce requlremenL before he dlsmlsses an employee does noL foreclose Lhe rlghL of Lhe laLLer Lo quesLlon Lhe legallLy of hls dlsmlssal As ArL
277(b) provldes Any declslon Laken by Lhe employer shall be wlLhouL pre[udlce Lo Lhe rlghL of Lhe worker Lo conLesL Lhe valldlLy or legallLy of hls dlsmlssal by flllng a
complalnL wlLh Lhe reglonal branch of Lhe naLlonal Labor 8elaLlons Commlsslon
lndeed Lo conLend LhaL Lhe noLlce requlremenL ln Lhe Labor Code ls an aspecL of due process ls Lo overlook Lhe facL LhaL ArL 283 had lLs orlgln ln ArL 302 of Lhe
Spanlsh Code of Commerce of 1882 whlch gave elLher parLy Lo Lhe employeremployee relaLlonshlp Lhe rlghL Lo LermlnaLe Lhelr relaLlonshlp by glvlng noLlce Lo Lhe
oLher one monLh ln advance ln lleu of noLlce an employee could be lald off by paylng hlm a esfJf equlvalenL Lo hls salary for one monLh2828 1hls provlslon was
repealed by ArL 2270 of Lhe Clvll Code whlch Look effecL on AugusL 30 1930 8uL on !une 12 1934 8A no 1032 oLherwlse known as Lhe 1ermlnaLlon ay Law was
enacLed revlvlng Lhe esfJf Cn !une 21 1937 Lhe law was amended by 8A no 1787 provldlng for Lhe glvlng of advance noLlce or Lhe paymenL of compensaLlon aL
Lhe raLe of onehalf monLh for every year of servlce2929
1he 1ermlnaLlon ay Law was held noL Lo be a subsLanLlve law buL a regulaLory measure Lhe purpose of whlch was Lo glve Lhe employer Lhe opporLunlLy Lo flnd a
replacemenL or subsLlLuLe and Lhe employee Lhe equal opporLunlLy Lo look for anoLher [ob or source of employmenL Where Lhe LermlnaLlon of employmenL was for
a [usL cause no noLlce was requlred Lo be glven Lo Lhe employee3030 lL was only on SepLember 4 1981 LhaL noLlce was requlred Lo be glven even where Lhe
dlsmlssal or LermlnaLlon of an employee was for cause 1hls was made ln Lhe rules lssued by Lhe Lhen MlnlsLer of Labor and LmploymenL Lo lmplemenL 8 8lg 130
whlch amended Lhe Labor Code And lL was sLlll much laLer when Lhe noLlce requlremenL was embodled ln Lhe law wlLh Lhe amendmenL of ArL 277(b) by 8A no
6713 on March 2 1989 lL cannoL be LhaL Lhe former reglme denled due process Lo Lhe employee CLherwlse Lhere should now llkewlse be a rule LhaL ln case an
employee leaves hls [ob wlLhouL cause and wlLhouL prlor noLlce Lo hls employer hls acL should be vold lnsLead of slmply maklng hlm llable for damages
1he Lhlrd reason why Lhe noLlce requlremenL under ArL 283 can noL be consldered a requlremenL of Lhe uue rocess Clause ls LhaL Lhe employer cannoL really be
expecLed Lo be enLlrely an lmparLlal [udge of hls own cause 1hls ls also Lhe case ln LermlnaLlon of employmenL for a [usL cause under ArL 282 (le serlous mlsconducL
or wlllful dlsobedlence by Lhe employee of Lhe lawful orders of Lhe employer gross and hablLual neglecL of duLles fraud or wlllful breach of LrusL of Lhe employer
commlsslon of crlme agalnsL Lhe employer or Lhe laLLer's lmmedlaLe famlly or duly auLhorlzed represenLaLlves or oLher analogous cases)
!usLlce uno dlspuLes Lhls Pe says LhaL sLaLlsLlcs ln Lhe uCLL wlll prove LhaL many cases have been won by employees before Lhe grlevance commlLLees manned by
lmparLlal [udges of Lhe company 1he grlevance machlnery ls however dlfferenL because lL ls esLabllshed by agreemenL of Lhe employer and Lhe employees and
composed of represenLaLlves from boLh sldes 1haL ls why ln ftfoqfs lfqoof 1fyfbfs os c v cott Appefls3131 whlch !usLlce uno clLes lL was held LhaL
Slnce Lhe rlghL of an employee Lo hls labor ls ln lLself a properLy and LhaL Lhe labor agreemenL beLween hlm and hls employer ls Lhe law beLween Lhe parLles hls






summary and arblLrary dlsmlssal amounLed Lo deprlvaLlon of hls properLy wlLhouL due process of law 8uL here we are deallng wlLh dlsmlssals and layoffs by
employers alone wlLhouL Lhe lnLervenLlon of any grlevance machlnery Accordlngly ln Motefyt v Atfoetf uolvetslty ooJftlo3232 alLhough a professor was
dlsmlssed wlLhouL a hearlng by hls unlverslLy hls dlsmlssal for havlng made homosexual advances on a sLudenL was susLalned lL appearlng LhaL ln Lhe nL8C Lhe
employee was fully heard ln hls defense
ock of Notice On/y Mokes 1erminotion lneffectuo/
noL all noLlce requlremenLs are requlremenLs of due process Some are slmply parL of a procedure Lo be followed before a rlghL granLed Lo a parLy can be exerclsed
CLhers are slmply an appllcaLlon of Lhe !usLlnlan precepL embodled ln Lhe Clvll Code3333 Lo acL wlLh [usLlce glve everyone hls due and observe honesLy and good
falLh Loward one's fellowmen Such ls Lhe noLlce requlremenL ln ArLs 282283 1he consequence of Lhe fallure elLher of Lhe employer or Lhe employee Lo llve up Lo
Lhls precepL ls Lo make hlm llable ln damages noL Lo render hls acL (dlsmlssal or reslgnaLlon as Lhe case may be) vold 1he measure of damages ls Lhe amounL of
wages Lhe employee should have recelved were lL noL for Lhe LermlnaLlon of hls employmenL wlLhouL prlor noLlce lf warranLed nomlnal and moral damages may
also be awarded
We hold Lherefore LhaL wlLh respecL Lo ArL 283 of Lhe Labor Code Lhe employer's fallure Lo comply wlLh Lhe noLlce requlremenL does noL consLlLuLe a denlal of due
process buL a mere fallure Lo observe a procedure for Lhe LermlnaLlon of employmenL whlch makes Lhe LermlnaLlon of employmenL merely lneffecLual lL ls slmllar Lo
Lhe fallure Lo observe Lhe provlslons of ArL 1392 ln relaLlon Lo ArL 1191 of Lhe Clvll Code3434 ln resclndlng a conLracL for Lhe sale of lmmovable properLy under
Lhese provlslons whlle Lhe power of a parLy Lo resclnd a conLracL ls lmplled ln reclprocal obllgaLlons noneLheless ln cases lnvolvlng Lhe sale of lmmovable properLy
Lhe vendor cannoL exerclse Lhls power even Lhough Lhe vendee defaulLs ln Lhe paymenL of Lhe prlce excepL by brlnglng an acLlon ln courL or glvlng noLlce of
resclsslon by means of a noLarlal demand3333 ConsequenLly a noLlce of resclsslon glven ln Lhe leLLer of an aLLorney has no legal effecL and Lhe vendee can make
paymenL even afLer Lhe due daLe slnce no valld noLlce of resclsslon has been glven3636
lndeed under Lhe Labor Code only Lhe absence of a [usL cause for Lhe LermlnaLlon of employmenL can make Lhe dlsmlssal of an employee lllegal 1hls ls clear from
ArL 279 whlch provldes
enotlty 1eoote ln cases of regular employmenL Lhe employer shall noL LermlnaLe Lhe servlces of an employee excepL for a [usL cause or
when auLhorlzed by Lhls 1lLle An employee who ls un[usLly dlsmlssed from work shall be enLlLled Lo relnsLaLemenL wlLhouL loss of senlorlLy
rlghLs and oLher prlvlleges and Lo hls full backwages lncluslve of allowances and Lo hls oLher beneflLs or Lhelr moneLary equlvalenL compuLed
from Lhe Llme hls compensaLlon was wlLhheld from hlm up Lo Lhe Llme of hls acLual relnsLaLemenL3737
1hus only lf Lhe LermlnaLlon of employmenL ls noL for any of Lhe causes provlded by law ls lL lllegal and Lherefore Lhe employee should be relnsLaLed and pald
backwages 1o conLend as !usLlces uno and anganlban do LhaL even lf Lhe LermlnaLlon ls for a [usL or auLhorlzed cause Lhe employee concerned should be
relnsLaLed and pald backwages would be Lo amend ArL 279 by addlng anoLher ground for conslderlng a dlsmlssal lllegal WhaL ls more lL would lgnore Lhe facL LhaL
under ArL 283 lf lL ls Lhe employee who falls Lo glve a wrlLLen noLlce Lo Lhe employer LhaL he ls leavlng Lhe servlce of Lhe laLLer aL leasL one monLh ln advance hls
fallure Lo comply wlLh Lhe legal requlremenL does noL resulL ln maklng hls reslgnaLlon vold buL only ln maklng hlm llable for damages3838 1hls dlsparlLy ln legal
LreaLmenL whlch would resulL from Lhe adopLlon of Lhe Lheory of Lhe mlnorlLy cannoL slmply be explalned by lnvoklng resldenL 8amon Magsaysay's moLLo LhaL he
who has less ln llfe should have more ln law 1haL would be a mlsappllcaLlon of Lhls noble phrase orlglnally from rofessor 1homas 8eed owell of Lhe Parvard Law
School
!usLlce anganlban clLes lepslclf ttlloq c v Nlkc3939 ln supporL of hls vlew LhaL an lllegal dlsmlssal resulLs noL only from wanL of legal cause buL also from
Lhe fallure Lo observe due process 1he lepslclf case acLually lnvolved a dlsmlssal for an alleged loss of LrusL and confldence whlch as found by Lhe CourL was
noL proven 1he dlsmlssal was Lherefore lllegal noL because Lhere was a denlal of due process buL because Lhe dlsmlssal was wlLhouL cause 1he sLaLemenL LhaL Lhe
fallure of managemenL Lo comply wlLh Lhe noLlce requlremenL LalnLs Lhe dlsmlssal wlLh lllegallLy was merely a dlcLum Lhrown ln as addlLlonal grounds for holdlng
Lhe dlsmlssal Lo be lllegal
Clven Lhe naLure of Lhe vlolaLlon Lherefore Lhe approprlaLe sancLlon for Lhe fallure Lo glve noLlce ls Lhe paymenL of backwages for Lhe perlod when Lhe employee ls
consldered noL Lo have been effecLlvely dlsmlssed or hls employmenL LermlnaLed 1he sancLlon ls noL Lhe paymenL alone of nomlnal damages as !usLlce vlLug
conLends









Dnjust kesu/ts of considerinq uismisso/s/oyoffs Jithout Prior Notice 4s l//eqo/
1he refusal Lo look beyond Lhe valldlLy of Lhe lnlLlal acLlon Laken by Lhe employer Lo LermlnaLe employmenL elLher for an auLhorlzed or [usL cause can resulL ln an
ln[usLlce Lo Lhe employer lor noL glvlng noLlce and hearlng before dlsmlsslng an employee who ls oLherwlse gullLy of say LhefL or even of an aLLempL agalnsL Lhe
llfe of Lhe employer an employer wlll be forced Lo keep ln hls employ such gullLy employee 1hls ls un[usL
lL ls Lrue Lhe ConsLlLuLlon regards labor as a prlmary soclal economlc force4040 8uL so does lL declare LhaL lL recognlzes Lhe lndlspensable role of Lhe prlvaLe
secLor encourages prlvaLe enLerprlse and provldes lncenLlves Lo needed lnvesLmenL4141 1he ConsLlLuLlon blds Lhe SLaLe Lo afford full proLecLlon Lo labor4242
8uL lL ls equally Lrue LhaL Lhe law ln proLecLlng Lhe rlghLs of Lhe laborer auLhorlzes nelLher oppresslon nor selfdesLrucLlon of Lhe employer4343 And lL ls
oppresslon Lo compel Lhe employer Lo conLlnue ln employmenL one who ls gullLy or Lo force Lhe employer Lo remaln ln operaLlon when lL ls noL economlcally ln hls
lnLeresL Lo do so
ln sum we hold LhaL lf ln proceedlngs for relnsLaLemenL under ArL 283 lL ls shown LhaL Lhe LermlnaLlon of employmenL was due Lo an auLhorlzed cause Lhen Lhe
employee concerned should noL be ordered relnsLaLed even Lhough Lhere ls fallure Lo comply wlLh Lhe 30day noLlce requlremenL lnsLead he musL be granLed
separaLlon pay ln accordance wlLh ArL 283 Lo wlL
ln case of LermlnaLlon due Lo Lhe lnsLallaLlon of laborsavlng devlces or redundancy Lhe worker affecLed Lhereby shall be enLlLled Lo a
separaLlon pay equlvalenL Lo aL leasL hls one (1) monLh pay or Lo aL leasL one monLh for every year of servlce whlchever ls hlgher ln case of
reLrenchmenL Lo prevenL losses and ln cases of closures or cessaLlon of operaLlons of esLabllshmenL or underLaklng noL due Lo serlous buslness
losses or flnanclal reverses Lhe separaLlon pay shall be equlvalenL Lo one (1) monLh pay or aL leasL onehalf (1/2) monLh pay for every year of
servlce whlchever ls hlgher A fracLlon of aL leasL slx monLhs shall be consldered one (1) whole year
lf Lhe employee's separaLlon ls wlLhouL cause lnsLead of belng glven separaLlon pay he should be relnsLaLed ln elLher case wheLher he ls relnsLaLed or only granLed
separaLlon pay he should be pald full backwages lf he has been lald off wlLhouL wrlLLen noLlce aL leasL 30 days ln advance
Cn Lhe oLher hand wlLh respecL Lo dlsmlssals for cause under ArL 282 lf lL ls shown LhaL Lhe employee was dlsmlssed for any of Lhe [usL causes menLloned ln sald ArL
282 Lhen ln accordance wlLh LhaL arLlcle he should noL be relnsLaLed Powever he musL be pald backwages from Lhe Llme hls employmenL was LermlnaLed unLll lL ls
deLermlned LhaL Lhe LermlnaLlon of employmenL ls for a [usL cause because Lhe fallure Lo hear hlm before he ls dlsmlssed renders Lhe LermlnaLlon of hls employmenL
wlLhouL legal effecL
WnLkLICkL Lhe peLlLlon ls C8An1Lu and Lhe resoluLlon of Lhe naLlonal Labor 8elaLlons Commlsslon ls MCulllLu by orderlng prlvaLe respondenL lseLann
ueparLmenL SLore lnc Lo pay peLlLloner separaLlon pay equlvalenL Lo one (1) monLh pay for every year of servlce hls unpald salary and hls proporLlonaLe 13Lh
monLh pay and ln addlLlon full backwages from Lhe Llme hls employmenL was LermlnaLed on CcLober 11 1991 up Lo Lhe Llme Lhe declslon hereln becomes flnal lor
Lhls purpose Lhls case ls 8LMAnuLu Lo Lhe Labor ArblLer for compuLaLlon of Lhe separaLlon pay backwages and oLher moneLary awards Lo peLlLloner
SC CkDLkLD
hLLp//sc[udlclarygovph/[urlsprudence/2000/[an2000/117040_[an2000hLm

Case D|gest on Serrano vs NLkC Gk No 117040 May 4 2000 Labor Law
C A and 8 flled a peLlLlon for cerLlflcaLlon elecLlon 1helr peLlLlon was granLed buL Lhey losL ln Lhe elecLlon as ma[orlLy of Lhe employees voLed for no unlon" 1he
nexL day Lhey falled Lo reporL for work 1hey clalm LhaL Lhey were barred from enLerlng Lhe premlses 1hey flled a sulL for lllegal dlsmlssal and backwages 1he
company denled Lhese allegaLlons and alleged LhaL A and 8 refused Lo reLurn Lo work desplLe Lhelr aLLenLlon belng called Were A and 8 legally dlsmlssed?
A no 1he CourL ruled LhaL an lmmedlaLe flllng of a complalnL for lllegal dlsmlssal ls lncompaLlble wlLh abandonmenL AbandonmenL ls a maLLer of lnLenLlon 1here
musL be proof of dellberaLe and un[usLlfled lnLenL Lo sever Lhe employeremployee relaLlonshlp 1hls burden resLs on Lhe employer ln Lhls case Lhe employer falled
Lo do so Slnce Lhey were lllegally dlsmlssed Lhe employees are enLlLled Lo relnsLaLemenL wlLh full backwages undlmlnlshed by Lhelr earnlngs elsewhere
kLU8LIC AC1 NC 8042
M|grant Workers and Cverseas I|||p|nos Act of 199S
An acL Lo lnsLlLuLe Lhe pollcles of overseas employmenL and esLabllsh a hlgher sLandard of proLecLlon and promoLlon of Lhe welfare of mlgranL workers Lhelr famllles
and overseas llllplnos ln dlsLress and for oLher purposes






8e lL enacLed by Lhe SenaLe and Pouse of 8epresenLaLlves of Lhe hlllpplnes ln Congress assembled
SLC 1 SPC81 1l1LL 1hls acL shall be known and clLed as Lhe MlgranL Workers and Cverseas llllplnos AcL of 1993
SLC 2 uLCLA8A1lCn Cl CLlClLS
(a) ln Lhe pursulL of an lndependenL forelgn pollcy and whlle conslderlng naLlonal soverelgnLy LerrlLorlal lnLegrlLy naLlonal lnLeresL and Lhe rlghL Lo self
deLermlnaLlon paramounL ln lLs relaLlons wlLh oLher sLaLes Lhe SLaLe shall aL all Llmes uphold Lhe dlgnlLy of lLs clLlzens wheLher ln counLry or overseas ln general
and llllplno mlgranL workers ln parLlcular
(b) 1he SLaLe shall afford full proLecLlon Lo labor local and overseas organlzed and unorganlzed and promoLe full employmenL and equallLy of employmenL
opporLunlLles for all 1owards Lhls end Lhe SLaLe shall provlde adequaLe and Llmely soclal economlc and legal servlces Lo llllplno mlgranL workers
(c) Whlle recognlzlng Lhe slgnlflcanL conLrlbuLlon of llllplno mlgranL workers Lo Lhe naLlonal economy Lhrough Lhelr forelgn exchange remlLLances Lhe SLaLe does noL
promoLe overseas employmenL as a means Lo susLaln economlc growLh and achleve naLlonal developmenL 1he exlsLence of Lhe overseas employmenL program resLs
solely on Lhe assurance LhaL Lhe dlgnlLy and fundamenLal human rlghLs and freedoms of Lhe llllplno clLlzens shall noL aL any Llme be compromlsed or vlolaLed 1he
SLaLe Lherefore shall conLlnuously creaLe local employmenL opporLunlLles and promoLe Lhe equlLable dlsLrlbuLlon of wealLh and Lhe beneflLs of developmenL
(d) 1he SLaLe afflrms Lhe fundamenLal equallLy before Lhe law of women and men and Lhe slgnlflcanL role of women ln naLlonbulldlng 8ecognlzlng Lhe conLrlbuLlon
of overseas mlgranL women workers and Lhelr parLlcular vulnerablllLles Lhe SLaLe shall apply gender senslLlve crlLerla ln Lhe formulaLlon and lmplemenLaLlon of
pollcles and programs affecLlng mlgranL workers and Lhe composlLlon of bodles Lasked for Lhe welfare of mlgranL workers
(e) lree access Lo Lhe courLs and quasl[udlclal bodles and adequaLe legal asslsLance shall noL be denled Lo any persons by reason of poverLy ln Lhls regard lL ls
lmperaLlve LhaL an effecLlve mechanlsm be lnsLlLuLed Lo ensure LhaL Lhe rlghLs and lnLeresL of dlsLressed overseas llllplnos ln general and llllplno mlgranL workers ln
parLlcular documenLed or undocumenLed are adequaLely proLecLed and safeguarded
(f) 1he rlghL of llllplno mlgranL workers and all overseas llllplnos Lo parLlclpaLe ln Lhe democraLlc declslonmaklng processes of Lhe SLaLe and Lo be represenLed ln
lnsLlLuLlons relevanL Lo overseas employmenL ls recognlzed and guaranLeed
(g) 1he SLaLe recognlzes LhaL Lhe ulLlmaLe proLecLlon Lo all mlgranL workers ls Lhe possesslon of skllls ursuanL Lo Lhls and as soon as pracLlcable Lhe governmenL
shall deploy and/or allow Lhe deploymenL only Lo skllled llllplno workers
(h) nongovernmenLal organlzaLlons duly recognlzed as leglLlmaLe are parLners of Lhe SLaLe ln Lhe proLecLlon of llllplno mlgranL workers and ln Lhe promoLlon of
Lhelr welfare Lhe SLaLe shall cooperaLe wlLh Lhem ln a splrlL of LrusL and muLual respecL
(l) CovernmenL fees and oLher admlnlsLraLlve cosLs of recrulLmenL lnLroducLlon placemenL and asslsLance Lo mlgranL workers shall be rendered free wlLhouL
pre[udlce Lo Lhe provlslon of SecLlon 36 hereof
noneLheless Lhe deploymenL of llllplno overseas workers wheLher landbased or seabased by local servlce conLracLors and mannlng agencles employlng Lhem shall
be encouraged ApproprlaLe lncenLlves may be exLended Lo Lhem
SLC 3 uLllnl1lCnS lor purposes of Lhls AcL
(a) MlgranL worker refers Lo a person who ls Lo be engaged ls engaged or has been engaged ln a renumeraLed acLlvlLy ln a sLaLe of whlch he or she ls noL a legal
resldenL Lo be used lnLerchangeably wlLh overseas llllplno worker
(b) CendersenslLlvlLy shall mean cognlzance of Lhe lnequallLles and lnequlLles prevalenL ln socleLy beLween women and men and a commlLmenL Lo address lssues
wlLh concern for Lhe respecLlve lnLeresLs of Lhe sexes
(c) Cverseas llllplnos refers Lo dependenLs of mlgranL workers and oLher llllplno naLlonals abroad who are ln dlsLress as menLloned ln SecLlons 24 and 26 of Lhls
AcL
l uLLC?MLn1
SLC 4 ueploymenL of MlgranL Workers 1he SLaLe shall deploy overseas llllplno workers only ln counLrles where Lhe rlghLs of llllplno mlgranL workers are proLecLed
1he governmenL recognlzes any of Lhe followlng as guaranLee on Lhe parL of Lhe recelvlng counLry for Lhe proLecLlon and Lhe rlghLs of overseas llllplno workers
(a) lL has exlsLlng labor and soclal laws proLecLlng Lhe rlghLs of mlgranL workers
(b) lL ls a slgnaLory Lo mulLllaLeral convenLlons declaraLlon or resoluLlons relaLlng Lo Lhe proLecLlon of mlgranL workers
(c) lL has concluded a bllaLeral agreemenL or arrangemenL wlLh Lhe governmenL proLecLlng Lhe rlghLs of overseas llllplno workers and

(d) lL ls Laklng poslLlve concreLe measures Lo proLecL Lhe rlghLs of mlgranL workers
SLC 3 1L8MlnA1lCn C8 8An Cn uLLC?MLn1 noLwlLhsLandlng Lhe provlslons of SecLlon 4 hereof Lhe governmenL ln pursulL of Lhe naLlonal lnLeresL or when
publlc welfare so requlres may aL any Llme LermlnaLe or lmpose a ban on Lhe deploymenL of mlgranL workers
ll lLLLCAL 8LC8ul1MLn1
Sec 6 uLllnl1lCnS lor purposes of Lhls AcL lllegal recrulLmenL shall mean any acL of canvasslng enllsLlng conLracLlng LransporLlng uLlllzlng hlrlng procurlng
workers and lncludes referrlng conLacL servlces promlslng or adverLlslng for employmenL abroad wheLher for proflL or noL when underLaken by a nonllcense or
nonholder of auLhorlLy conLemplaLed under ArLlcle 13(f) of resldenLlal uecree no 442 as amended oLherwlse known as Lhe Labor Code of Lhe hlllpplnes
rovlded LhaL such nonllcense or nonholder who ln any manner offers or promlses for a fee employmenL abroad Lo Lwo or more persons shall be deemed so
engaged lL shall llkewlse lnclude Lhe followlng acLs wheLher commlLLed by any persons wheLher a nonllcensee nonholder llcensee or holder of auLhorlLy
(a) 1o charge or accepL dlrecLly or lndlrecLly any amounL greaLer Lhan Lhe speclfled ln Lhe schedule of allowable fees prescrlbed by Lhe SecreLary of Labor and
LmploymenL or Lo make a worker pay any amounL greaLer Lhan LhaL acLually recelved by hlm as a loan or advance
(b) 1o furnlsh or publlsh any false noLlce or lnformaLlon or documenL ln relaLlon Lo recrulLmenL or employmenL
(c) 1o glve any false noLlce LesLlmony lnformaLlon or documenL or commlL any acL of mlsrepresenLaLlon for Lhe purpose of securlng a llcense or auLhorlLy under Lhe
Labor Code
(d) 1o lnduce or aLLempL Lo lnduce a worker already employed Lo qulL hls employmenL ln order Lo offer hlm anoLher unless Lhe Lransfer ls deslgned Lo llberaLe a
worker from oppresslve Lerms and condlLlons of employmenL
(e) 1o lnfluence or aLLempL Lo lnfluence any persons or enLlLy noL Lo employ any worker who has noL applled for employmenL Lhrough hls agency
(f) 1o engage ln Lhe recrulLmenL of placemenL of workers ln [obs harmful Lo publlc healLh or morallLy or Lo dlgnlLy of Lhe 8epubllc of Lhe hlllpplnes
(g) 1o obsLrucL or aLLempL Lo obsLrucL lnspecLlon by Lhe SecreLary of Labor and LmploymenL or by hls duly auLhorlzed represenLaLlve
(h) 1o fall Lo submlL reporLs on Lhe sLaLus of employmenL placemenL vacancles remlLLances of forelgn exchange earnlngs separaLlons from [obs deparLures and
such oLher maLLers or lnformaLlon as may be requlred by Lhe SecreLary of Labor and LmploymenL
(l) 1o subsLlLuLe or alLer Lo Lhe pre[udlce of Lhe worker employmenL conLracLs approved and verlfled by Lhe ueparLmenL of Labor and LmploymenL from Lhe Llme of
acLual slgnlng Lhereof by Lhe parLles up Lo and lncludlng Lhe perlod of Lhe explraLlon of Lhe same wlLhouL Lhe approval of Lhe ueparLmenL of Labor and LmploymenL
([) lor an offlcer or agenL of a recrulLmenL or placemenL agency Lo become an offlcer or member of Lhe 8oard of any corporaLlon engaged ln Lravel agency or Lo be
engaged dlrecLly on lndlrecLly ln Lhe managemenL of a Lravel agency
(k) 1o wlLhhold or deny Lravel documenLs from appllcanL workers before deparLure for moneLary or flnanclal conslderaLlons oLher Lhan Lhose auLhorlzed under Lhe
Labor Code and lLs lmplemenLlng rules and regulaLlons
(l) lallure Lo acLually deploy wlLhouL valld reasons as deLermlned by Lhe ueparLmenL of Labor and LmploymenL and
(m) lallure Lo relmburse expenses lncurred by Lhe workers ln connecLlon wlLh hls documenLaLlon and processlng for purposes of deploymenL ln cases where Lhe
deploymenL does noL acLually Lake place wlLhouL Lhe workers faulL lllegal recrulLmenL when commlLLed by a syndlcaLe or ln large scale shall be consldered as offense
lnvolvlng economlc saboLage
lllegal recrulLmenL ls deemed commlLLed by a syndlcaLe carrled ouL by a group of Lhree (3) or more persons consplrlng or confederaLlng wlLh one anoLher lL ls
deemed commlLLed ln large scale lf commlLLed agalnsL Lhree (3) or more persons lndlvldually or as a group
1he persons crlmlnally llable for Lhe above offenses are Lhe prlnclpals accompllces and accessorles ln case of [urldlcal persons Lhe offlcers havlng conLrol
managemenL or dlrecLlon of Lhelr buslness shall be llable
SLC 7 LnAL1lLS
(a) Any person found gullLy of lllegal recrulLmenL shall suffer Lhe penalLy of lmprlsonmenL of noL less Lhan slx (6) years and one (1) day buL noL more Lhan Lwelve (12)
years and a flne noL less Lhan Lwo hundred Lhousand pesos (20000000) nor more Lhan flve hundred Lhousand pesos (30000000)
(b) 1he penalLy of llfe lmprlsonmenL and a flne of noL less Lhan flve hundred Lhousand pesos (30000000) nor more Lhan one mllllon pesos (100000000) shall be
lmposed lf lllegal recrulLmenL consLlLuLes economlc saboLage as deflned hereln

rovlded however LhaL Lhe maxlmum penalLy shall be lmposed lf Lhe person lllegally recrulLed ls less Lhan elghLeen (18) years of age or commlLLed by a nonllcensee
or nonholder of auLhorlLy
SLC 8 8CPl8l1lCn Cn ClllClALS Anu LMLC?LLS CL shall be unlawful for any offlclal or employee of Lhe ueparLmenL of Labor and LmploymenL Lhe hlllpplne
Cverseas LmploymenL AdmlnlsLraLlon or Lhe Cverseas Workers Welfare AdmlnlsLraLlon or Lhe ueparLmenL of lorelgn Affalrs or oLher governmenL agencles lnvolved
ln Lhe lmplemenLaLlon of Lhls AcL or Lhelr relaLlves wlLhln Lhe fourLh clvll degree of consangulnlLy or afflnlLy Lo engage dlrecLly or lndlrecLly ln Lhe buslness of
recrulLlng mlgranL workers as deflned ln Lhls AcL 1he penalLles shall be lmposed upon Lhem
SLC 9 vLnuL A crlmlnal acLlon arlslng from lllegal recrulLmenL as deflned hereln shall be flled wlLh Lhe 8eglonal 1rlal CourL of Lhe provlnce or clLy where Lhe
offense was commlLLed or where Lhe offended parLy acLually resldes aL Lhe same Llme of Lhe commlsslon of Lhe offense rovlded 1haL Lhe courL where Lhe crlmlnal
acLlon ls flrsL flled shall acqulre [urlsdlcLlon Lo Lhe excluslon of oLher courLs rovlded however 1haL Lhe aforesLaLed provlslons shall also apply Lo Lhose crlmlnal
acLlons LhaL have already been flled ln courL aL Lhe Llme of Lhe effecLlvlLy of Lhls AcL
SLC 10 MCnL? CLAlMS 8oLwlLhsLandlng any provlslon of law Lo Lhe conLrary Lhe Labor ArblLers of Lhe naLlonal Labor 8elaLlons Commlsslon (nL8C) shall have Lhe
prlglnal and excluslve [urlsdlcLlon Lo hear and declde wlLhln nlneLy (90) calendar days afLer flllng of Lhe complalnL Lhe clalms arlslng ouL of an employeremployee
relaLlonshlp or by vlrLue of any law or conLracL lnvolvlng llllplno workers for overseas deploymenL lncludlng clalms for acLual moral exemplary and oLher forms of
damages
1he llablllLy of Lhe prlnclpal/employer and Lhe recrulLmenL/placemenL agency for any and all clalms under Lhls secLlon shall be [olnL and several 1hls
provlslons shall be lncorporaLed ln Lhe conLracL for overseas employmenL and shall be a condlLlon precedenL for lLs approval 1he performance bond Lo be flled by Lhe
recrulLmenL/placemenL agency as provlded by law shall be answerable for all money clalms or damages LhaL may be awarded Lo Lhe workers lf Lhe
recrulLmenL/placemenL agency ls a [urldlcal belng Lhe corporaLe offlcers and dlrecLors and parLners as Lhe case may be shall Lhemselves be [olnLly and solldarlly
llable wlLh Lhe corporaLlon or parLnershlp for Lhe aforesald clalms and damages
Such llablllLles shall conLlnue durlng Lhe enLlre perlod or duraLlon of Lhe employmenL conLracL and shall noL be affecLed by any subsLlLuLlon amendmenL or
modlflcaLlon made locally or ln a forelgn counLry of Lhe sald conLracL
Any compromlse/amlcable seLLlemenL or volunLary agreemenL on money clalms lncluslve of damages under Lhls secLlon shall be pald wlLhln four (4) monLhs
from Lhe approval of Lhe seLLlemenL by Lhe approprlaLe auLhorlLy
ln case of LermlnaLlon of overseas employmenL wlLhouL [usL valld or auLhorlzed cause as deflned by law or conLracL Lhe workers shall be enLlLled Lo Lhe full
relmbursemenL of hls placemenL fee wlLh lnLeresL of Lwelve percenL (12) per annum plus hls salarles for Lhe unexplred porLlon of hls employmenL conLracL or for
Lhree (3) monLhs for every year of Lhe unexplred Lerm whlchever ls less
noncompllance wlLh Lhe mandaLory perlods for resoluLlons of cases provlded under Lhls secLlon shall sub[ecL Lhe responslble offlclals Lo any or all of Lhe
followlng penalLles
(a) 1he salary of any such offlclal who falls Lo render hls declslon or resoluLlons wlLhln Lhe prescrlbed perlod shall be or caused Lo be wlLhheld unLll Lhe sald
offlclal complles LherewlLh
(b) Suspenslon for noL more Lhan nlneLy (90) days or
(c) ulsmlssal from Lhe servlce wlLh dlsquallflcaLlons Lo hold any appolnLlve publlc offlce for flve (3) years
rovlded however LhaL Lhe penalLles hereln provlded shall be wlLhouL pre[udlce Lo any llablllLy whlch any such offlclal may have lncurred under oLher
exlsLlng laws or rules and regulaLlons as a consequence of vlolaLlng Lhe provlslons of Lhls paragraph
SLC 11 MAnAuA1C8? L8lCuS lC8 8LSCLu1lCn Cl lLLLCAL 8LC8ul1MLn1 CASLS 1he prellmlnary lnvesLlgaLlons of cases under Lhls AcL shall be
LermlnaLed wlLhln a perlod of LhlrLy (30) calendar days from Lhe daLe of Lhelr flllng Where Lhe prellmlnary lnvesLlgaLlon ls conducLed by a prosecuLlon offlcer and a
prlma facle case ls esLabllshed Lhe correspondlng lnformaLlon shall be flled ln courL wlLhln LwenLyfour (24) hours from Lhe LermlnaLlon of Lhe lnvesLlgaLlon lf Lhe
prellmlnary lnvesLlgaLlon ls conducLed by a [udge and a prlma facle case ls found Lo exlsL prosecuLlon offlcer wlLhln forLyelghL (48) hours from Lhe daLe of recelpL of
Lhe records of Lhe case
SLC 12 8LSC8l1lvL L8lCuS lllegal recrulLmenL cases under Lhls AcL shall prescrlbe ln flve (3) years rovlded however 1haL lllegal recrulLmenL cases
lnvolvlng economlc saboLage as deflned hereln shall prescrlbe ln LwenLy (20) years
SLC 13 l8LL LLCAL ASSlS1AnCL 8LlL8Ln1lAL Ln1l1LLMLn1 unuL8 1PL Wl1nLSS 8C1LC1lCn 8CC8AM A mechanlsm for free legal asslsLance for
vlcLlms of lllegal recrulLmenL shall be esLabllshed wlLhln Lhe ueparLmenL of Labor and LmploymenL lncludlng lLs reglonal offlces Such mechanlsm musL lnclude
coordlnaLlon and cooperaLlon wlLh Lhe ueparLmenL of !usLlce Lhe lnLegraLed 8ar of Lhe hlllpplnes and oLher nongovernmenLal organlzaLlons and volunLeer groups
1he provlslons of 8epubllc AcL no 6981 Lo Lhe conLrary noLwlLhsLandlng any person who ls a vlcLlm of lllegal recrulLmenL shall be enLlLled Lo Lhe WlLness
roLecLlon rogram provlded Lhereunder
lll SL8vlCLS

SLC 14 18AvLL AuvlSC8?/lnlC8MA1lCn ulSSLMlnA1lCn 1o glve uLmosL prlorlLy Lo Lhe esLabllshmenL of programs and servlces Lo prevenL lllegal
recrulLmenL fraud and explolLaLlon or abuse of llllplno mlgranL workers all embassles and consular offlces Lhrough Lhe hlllpplne Cverseas LmploymenL
AdmlnlsLraLlon (CLA) shall lssue Lravel advlsorles or dlssemlnaLe lnformaLlon on labor and employmenL condlLlons mlgraLlon reallLles and oLher facLs and
adherence of parLlcular counLrles Lo lnLernaLlonal sLandards on human and workers rlghLs whlch wlll adequaLely prepare lndlvlduals lnLo maklng lnformed and
lnLelllgenL declslons abouL overseas employmenL Such advlsory or lnformaLlon shall be publlshed ln a newspaper of general clrculaLlon aL leasL Lhree (3) Llmes ln
every quarLer
SLC 13 8LA18lA1lCn Cl WC8kL8S LML8CLnC? 8LA18lA1lCn lunu 1he repaLrlaLlon of Lhe worker and Lhe LransporL of hls personal belonglngs shall
be Lhe prlmary responslblllLy of Lhe agency whlch recrulLed or deployed Lhe worker overseas All cosLs aLLendanL Lo repaLrlaLlon shall be borne by or charged Lo Lhe
agency concerned and/or lLs prlnclpal Llkewlse Lhe repaLrlaLlon of remalns and LransporL of Lhe personal belonglngs of a deceased worker and all cosLs aLLendanL
LhereLo shall be borne by Lhe prlnclpal and/or local agency Powever ln cases where Lhe LermlnaLlon of employmenL ls due solely Lo Lhe faulL of Lhe worker Lhe
prlnclpal/employer or agency shall noL ln any manner be responslble for Lhe repaLrlaLlon of Lhe former and/or hls belonglngs
1he Cverseas Workers Welfare AdmlnlsLraLlon (CWWA) ln coordlnaLlon lLh approprlaLe lnLernaLlonal agencles shall underLake Lhe repaLrlaLlon of workers
ln cases of war epldemlc dlsasLers or calamlLles naLural or manmade and oLher slmllar evenLs wlLhouL pre[udlce Lo relmbursemenL by Lhe responslble prlnclpal or
agency Powever ln cases where Lhe prlnclpal or recrulLmenL agency cannoL be ldenLlfled all cosLs aLLendanL Lo repaLrlaLlon shall be borne by Lhe CWWA
lor Lhls purposes Lhere ls hereby creaLed and esLabllshed an emergency repaLrlaLlon fund under Lhe admlnlsLraLlon conLrol and supervlslon of Lhe CWWA
lnlLlally Lo conslsL of one hundred mllllon pesos (10000000000) lncluslve of ouLsLandlng balances
SLC 16 MAnuA1C8? 8LA18lA1lCn Cl unuL8ACL MlC8An1 WC8kL8S upon dlscovery or belng lnformed of Lhe presence of mlgranL workers whose
acLual ages fall below Lhe mlnlmum age requlremenL for overseas deploymenL Lhe responslble offlcers ln Lhe forelgn servlce shall wlLhouL delay repaLrlaLe sald
workers and advlse Lhe ueparLmenL of lorelgn Affalrs Lhrough Lhe fasLesL means of communlcaLlon avallavle of such dlscovery and oLher relevanL lnformaLlon
SLC 17 LS1A8LlSPMLn1 Cl 8LLACLMLn1 Anu MCnl1C8lnC CLn1L8 A replacemenL and monlLorlng cenLer ls hereby creaLed ln Lhe ueparLmenL of
Labor and LmploymenL for reLurnlng llllplno mlgranL workers whlch shall provlde a mechanlsm for Lhelr relnLegraLlon lnLo Lhe hlllpplne socleLy serve as a
promoLlon house for Lhelr local employmenL and Lap Lhelr skllls and poLenLlals for naLlonal developmenL
1he ueparLmenL of Labor and LmploymenL Lhe Cverseas Workers Welfare AdmlnlsLraLlon and Lhe hlllpplne Cverseas LmploymenL AdmlnlsLraLlon shall
wlLhln nlneLy (90) days from Lhe effecLlvlLy of Lhls AcL formulaLe a program LhaL would moLlvaLe mlgranL workers Lo plan for producLlve opLlons such as enLry lnLo
hlghly Lechnlcal [obs or underLaklngs llvellhood and enLrepreneurlal developmenL beLLer wage employmenL and lnvesLmenL of savlngs
lor Lhls purpose Lhe 1echnlcal LducaLlon and Skllls uevelopmenL AuLhorlLy (1LSuA) Lhe 1echnology Llvellhood 8esource CenLer (1L8C) and oLher
governmenL agencles lnvolved ln Lralnlng and llvellhood developmenL shall glve prlorlLy Lo reLurn who had been employed as domesLlc helpers and enLerLalners
SLC 18 lunC1lCnS Cl 1PL 8LLACLMLn1 Anu MCnl1C8lnC CLn1L8 1he cenLer shall provlde Lhe followlng servlce
(a) uevelop llvellhood programs and pro[ecLs for reLurnlng llllplno mlgranL workers ln coordlnaLlon wlLh Lhe prlvaLe secLor
(b) CoordlnaLe wlLh approprlaLe prlvaLe and governmenL agencles Lhe promoLlon developmenL replacemenL and Lhe full uLlllzaLlon of Lhelr poLenLlals
(c) lnsLlLuLe ln cooperaLlon wlLh oLher governmenL agencles concerned a compuLerbased lnformaLlon sysLem on skllled llllplno mlgranL workers whlch shall
be accesslble Lo all local recrulLmenL agencles and employers boLh publlc and prlvaLe
(d) rovlde a perlodlc sLudy and assessmenL of [ob opporLunlLles for reLurnlng llllplno mlgranL workers
SLC 19 LS1A8LlSPMLn1 Cl A MlC8An1 WC8kL8S Anu C1PL8 CvL8SLAS llLllnCS 8LSCu8CL CLn1L8 WlLhln Lhe premlses and under Lhe
admlnlsLraLlve [urlsdlcLlon of Lhe hlllpplne Lmbassy ln counLrles where Lhere are large concenLraLlons of llllplno mlgranL workers Lhere shall be esLabllsh a MlgranL
Workers and CLher Cverseas llllplnos 8esource CenLer wlLh Lhe followlng servlces
(a) Counsellng and legal servlces
(b) Welfare asslsLance lncludlng Lhe procuremenL of medlcal and hosplLallzaLlon servlces
(c) lnformaLlon advlsory and programs Lo promoLe soclal lnLegraLlon such as posLarrlval orlenLaLlon seLLlemenL and communlLy neLworklng servlces for
soclal lnLegraLlon
(d) lnsLlLuLe a scheme of reglsLraLlon of undocumenLed workers Lo brlng Lhem wlLhln Lhe purvlew of Lhls AcL lor Lhls purpose Lhe CenLer ls en[olned Lo
compel exlsLlng undocumenLed workers Lo reglsLer wlLh lL wlLhln slx (6) monLhs from Lhe effecLlvlLy of Lhls AcL under paln of havlng hls/her passporL cancelled
(e) Puman resource developmenL such as Lralnlng and skllls upgradlng
(f) Cender senslLlve programs and acLlvlLles Lo asslsL parLlcular needs of women mlgranL workers

(g) CrlenLaLlon program for reLurnlng workers and oLher mlgranLs and
(h) MonlLorlng of dally slLuaLlons clrcumsLances and acLlvlLles affecLlng mlgranL workers and oLher overseas llllplnos
1he esLabllshmenL and operaLlons of Lhe CenLer shall be a [olnL underLaklng of Lhe varlous governmenL agencles 1he CenLer shall be open for LwenLyfour
(24) hours dally lncludlng SaLurdays Sundays and holldays and shall be sLaffed by lorelgn Servlce personnel servlce aLLaches or offlcers who represenL oLher
organlzaLlons from Lhe hosL counLrles ln counLrles caLegorlzed as hlghly problemaLlc by Lhe ueparLmenL of lorelgn Affalrs and Lhe ueparLmenL of Labor and
LmploymenL and where Lhere ls a concenLraLlon of llllplno mlgranL workers Lhe governmenL musL provlde a lawyer and a soclal worker for Lhe CenLer 1he Labor
ALLache shall coordlnaLe Lhe operaLlon of Lhe CenLer and shall keep Lhe Chlef of Mlsslon lnformed and updaLed on all maLLers affecLlng lL
1he CenLer shall have a counLerparL 24hour lnformaLlon and asslsLance cenLer aL Lhe ueparLmenL of lorelgn Affalrs Lo ensure a conLlnuous neLwork and
coordlnaLlve mechanlsm aL Lhe home offlce
SLC 20 LS1A8LlSPMLn1 Cl A SPA8Lu CCvL8nMLn1 lnlC8MA1lCn S?S1LM lC8 MlC8A1lCn An lnLeragency commlLLee composed of Lhe ueparLmenL
of lorelgn Affalrs and lLs aLLached agency Lhe Commlsslon on llllplno Cverseas Lhe ueparLmenL of Labor and LmploymenL Lhe hlllpplne Cverseas LmploymenL
AdmlnlsLraLlon 1he Cverseas Workers Welfare AdmlnlsLraLlon 1he ueparLmenL of 1ourlsm Lhe ueparLmenL of !usLlce Lhe 8ureau of lmmlgraLlon Lhe naLlonal
8ureau of lnvesLlgaLlon and Lhe naLlonal SLaLlsLlcs Cfflce shall be esLabllshed Lo lmplemenL a shared governmenL lnformaLlon sysLem for mlgraLlon 1he lnLeragency
commlLLee shall lnlLlally make avallable Lo lLself Lhe lnformaLlon conLalned ln exlsLlng daLa bases/flles 1he second phase shall lnvolve llnkaglng of compuLer faclllLles
ln order Lo allow freeflow daLa exchanges and sharlng among concerned agencles
1he lnLeragency commlLLee shall convene Lo ldenLlfy exlsLlng daLa bases whlch shall be declasslfled and shared among member agencles 1hese shared daLa
bases shall lnlLlally lnclude buL noL llmlLed Lo Lhe followlng lnformaLlon
(a) MasLerllsLs of deparLlng/arrlvlng llllplnos
(b) lnvenLory of pendlng legal cases lnvolvlng llllplno mlgranL workers and oLher llllplno naLlonals lncludlng Lhose servlng prlson Lerms
(c) MasLerllsLs of deparLlng/arrlvlng llllplnos
(d) SLaLlsLlcal proflle on llllplno mlgranL workers/overseas llllplnos/1ourlsLs
(e) 8lackllsLed forelgners/undeslrable allens
(f) 8aslc daLa on legal sysLems lmmlgraLlon pollcles marrlage laws and clvll and crlmlnal codes ln recelvlng counLrles parLlcularly Lhose wlLh Lhe large
numbers of llllplnos
(g) LlsL of labor and oLher human rlghLs lnsLrumenLs where recelvlng counLrles are slgnaLorles
(h) A Lracklng sysLem of pasL and presenL gender dlsaggregaLed cases lnvolvlng male and female mlgranL workers and
(l) LlsLlng of overseas posLs whlch may render asslsLance Lo overseas llllplnos ln general and mlgranL workers ln parLlcular
SLC 21 MlC8An1 WC8kL8S LCAn CuA8An1LL lunu ln order Lo furLher prevenL unscrupulous lllegal recrulLers from Laklng advanLage of workers
seeklng employmenL abroad Lhe CWWA ln coordlnaLlon wlLh governmenL flnanclal lnsLlLuLlons shall lnsLlLuLe flnanclng schemes LhaL wlll expand Lhe granL of pre
deparLure loan and famlly asslsLance loan lor Lhls purpose a MlgranL Workers Loan CuaranLee lund ls hereby creaLed and Lhe revolvlng amounL of one hundred
mllllon pesos (10000000000) from Lhe CWWA ls seL aslde as a guaranLee fund ln favor of parLlclpaLlng governmenL flnanclal lnsLlLuLlons
SLC 22 8lCP1S Anu LnlC8CLMLn1 MLCPAnlSM unuL8 ln1L8nA1lCnAL Anu 8LClCnAL PuMAn 8lCP1S S?S1LMS 1he ueparLmenL of lorelgn Affalrs ls
mandaLed Lo underLake Lhe necessary lnlLlaLlve such as promoLlons accepLance or adherence of counLrles recelvlng llllplno workers Lo mulLllaLeral convenLlon
declaraLlon or resoluLlons perLalnlng Lo Lhe proLecLlon of mlgranL workers rlghLs 1he ueparLmenL of lorelgn Affalrs ls also mandaLed Lo make an assessmenL of
rlghLs and avenues of redress under lnLernaLlonal and reglonal human rlghLs sysLems LhaL are avallable Lo llllplno mlgranL workers who are vlcLlms of abuse and
vlolaLlon and as far as pracLlcable and Lhrough Lhe Legal AsslsLanL for MlgranL Workers Affalrs creaLed under Lhls AcL pursue Lhe same on behalf of Lhe vlcLlm lf lL ls
legally lmposslble Lo flle lndlvldual complalnLs lf a complalnLs machlnery ls avallable under lnLernaLlonal or reglonal sysLems Lhe ueparLmenL of lorelgn Affalrs shall
fully apprlse Lhe llllplno mlgranL workers of Lhe exlsLence and effecLlveness of such legal opLlons
lv CCvL8nMLn1 ACLnClLS
SLC 23 8CLL Cl CCvL8nMLn1 ACLnClLS 1he followlng governmenL agencles shall perform Lhe followlng Lo promoLe Lhe welfare and proLecL Lhe rlghLs
of mlgranL workers and as far as appllcable all overseas llllplnos
(a) ueparLmenL of lorelgn Affalrs 1he ueparLmenL Lhrough lLs home offlce or forelgn posLs shall Lake prlorlLy acLlon lLs home offlce or forelgn posLs shall
Lake prlorlLy acLlon or make represenLaLlon wlLh Lhe forelgn auLhorlLy concerned Lo proLecL Lhe rlghLs of mlgranL workers and oLher overseas llllplnos and exLend
lmmedlaLe asslsLance lncludlng Lhe repaLrlaLlon of dlsLressed or beleaguered mlgranL workers and oLher overseas llllplnos

(b) ueparLmenL of Labor and LmploymenL 1he ueparLmenL of Labor and LmploymenL shall see Lo lL LhaL labor and soclal welfare laws ln Lhe forelgn
counLrles are falrly applled Lo mlgranL workers and whenever appllcable Lo oLher overseas llllplnos lncludlng Lhe granL of legal asslsLance and Lhe referral Lo proper
medlcal cenLers or hosplLals
(b1) hlllpplne Cverseas LmploymenL AdmlnlsLraLlon Sub[ecL Lo deregulaLlon and phase ouL as provlded under SecLlons 29 and 30 hereln Lhe
AdmlnlsLraLlon shall regulaLe prlvaLe secLor parLlclpaLlon ln Lhe recrulLmenL and overseas placemenL of workers by seLLlng up a llcenslng and reglsLraLlon sysLem lL
shall also formulaLe and lmplemenL ln coordlnaLlon wlLh approprlaLe enLlLles concerned when necessary employmenL of llllplno workers Laklng lnLo conslderaLlon
Lhelr welfare and Lhe domesLlc manpower requlremenLs
(b2) Cverseas Workers Welfare AdmlnlsLraLlon 1he Welfare Cfflcer or ln hls absence Lhe coordlnaLlng offlcer shall provlde Lhe llllplno mlgranL worker and
hls famlly all Lhe asslsLance Lhey may need ln Lhe enforcemenL of conLracLual obllgaLlons by agencles or enLlLles and/or by Lhelr prlnclpals ln Lhe performance of Lhls
funcLlons he shall make represenLaLlon and may call on Lhe agencles or enLlLles concerned Lo conferences or conclllaLlon meeLlngs for Lhe purpose of seLLllng Lhe
complalnLs or problems broughL Lo hls aLLenLlon
v 1PL LLCAL ASSlS1An1 lC8 MlC8An1 WC8kL8S AllAl8S
SLC 24 LLCAL ASSlS1An1 lC8 MlC8An1 WC8kL8S AllAl8S 1here ls hereby creaLed Lhe poslLlon of Legal AsslsLanL for MlgranL Workers Affalrs under Lhe
ueparLmenL of lorelgn Affalrs who shall be prlmarlly responslble for Lhe provlslon and overall coordlnaLlon of all legal asslsLance servlces Lo be provlded Lo llllplno
mlgranL workers as well as overseas llllplnos ln dlsLress Pe shall have Lhe rank salary and prlvlleges equal Lo LhaL of an undersecreLary of sald ueparLmenL
1he sald Legal AsslsLanL for MlgranL Workers Affalrs shall be appolnLed by Lhe resldenL and musL be of proven compeLence ln Lhe fleld of law wlLh aL leasL
Len (10) years of experlence as a legal pracLlLloner and musL noL have been a candldaLe Lo an elecLlve offlce ln Lhe lasL local or naLlonal elecLlons
Among Lhe funcLlons and responslblllLles of Lhe aforesald Legal AsslsLanL are
(a) 1o lssue Lhe guldellnes procedures and crlLerla for Lhe provlslons of legal asslsLance servlces Lo llllplno mlgranL workers
(b) 1o esLabllsh close llnkages wlLh Lhe ueparLmenL of Labor and LmploymenL Lhe CLA Lhe CWWA and oLher governmenL agencles concerned as well as
wlLh nongovernmenLal organlzaLlons asslsLlng mlgranL workers Lo ensure effecLlve coordlnaLlon and cooperaLlon ln Lhe provlslon of legal asslsLance Lo mlgranL
workers
(c) 1o Lap Lhe asslsLance of repuLable law flrms and Lhe lnLegraLed 8ar of Lhe hlllpplnes and oLher bar assoclaLlons Lo complemenL Lhe governmenLs efforLs
Lo provlde legal asslsLance Lo mlgranL workers
(d) 1o admlnlsLer Lhe legal asslsLance fund for mlgranL workers esLabllshed under SecLlon 23 hereof and Lo auLhorlze dlsbursemenLs Lhere from ln
accordance wlLh Lhe purposes for whlch Lhe fund was seL up and
(e) 1o keep and malnLaln Lhe lnformaLlon sysLem as provlded ln SecLlon 20
1he legal AsslsLanL for MlgranL Workers Affalrs shall have auLhorlLy Lo hlre prlvaLe lawyers domesLlc or forelgn ln order Lo asslsL hlm ln Lhe effecLlve
dlscharge of Lhe above funcLlons
SLC 23 LLCAL ASSlS1AnCL lunu 1here ls hereby esLabllshed a legal asslsLance fund for mlgranL workers hereln afLer referred Lo as Legal AsslsLance
fund ln Lhe amounL of Cne hundred mllllon pesos (10000000000) Lo be consLlLuLed from Lhe followlng sources
llfLy mllllon pesos (3000000000) from Lhe ConLlngency lund of Lhe resldenL
1hlrLy mllllon pesos (3000000000) from Lhe resldenLlal Soclal lund and
1wenLy mllllon pesos (2000000000) from Lhe Welfare lund for Cverseas Workers esLabllshed under LeLLer of lnsLrucLlon no 337 as amended by
resldenLlal uecree nos 1694 and 1809
Any balances of exlsLlng fund whlch have been seL aslde by Lhe governmenL speclflcally as legal asslsLance or defense fund Lo help mlgranL workers
shall upon effecLlvlLy of Lhls AcL Lo be Lurned over Lo and form parL of Lhe lund creaLed under Lhls AcL
SLC 26 uSLS Cl 1PL LLCAL ASSlS1AnCL lunu 1he Legal AsslsLance lund creaLed under Lhe preceedlng secLlon shall be used excluslvely Lo provlde legal
servlces Lo mlgranL workers and overseas llllplnos ln dlsLress ln accordance wlLhL Lhe guldellnes crlLerla and procedures promulgaLed ln accordance wlLh SecLlon 24
(a) hereof 1he expendlLures Lo be charged agalnsL Lhe lund shall lnclude Lhe fees for Lhe forelgn lawyers Lo be hlred by Lhe Legal AsslsLance for MlgranL Workers
Affalrs Lo represenL mlgranL workers faclng charges abroad ball bonds Lo secure Lhe Lemporary release of workers under deLenLlon courL fees and charges and oLher
llLlgaLlon expenses
vl CCun18? 1LAM A8CACP

SLC 27 8lC8l1? CCnCL8nS Cl PlLllnL lC8LlCn SL8vlCL CS1S 1he counLry Leam approach as enunclaLed under LxecuLlve Crder no 74 serles of
1993 shall be Lhe mode under whlch hlllpplne embassles or Lhelr personnel wlll operaLe ln Lhe proLecLlon of Lhe llllplno mlgranL workers as well as ln Lhe promoLlon
of Lhelr welfare 1he proLecLlon of Lhe llllplno mlgranL workers and Lhe promoLlon of Lhelr welfare ln parLlcular and Lhe proLecLlon of Lhe dlgnlLy and fundamenLal
rlghLs and freedoms of Lhe llllplno clLlzen abroad ln general shall be Lhe hlghesL prlorlLy concerns of Lhe SecreLary of lorelgn Affalrs and Lhe hlllpplne lorelgn
Servlce osLs
SLC 28 CCun18?1LAM A8CACP under Lhe counLryLeam approach all offlcers represenLaLlves and personnel of Lhe hlllpplne governmenL posLed
abroad regardless of Lhelr moLher agencles shall on a per counLry basls acL as one counLryLeam wlLh a mlsslon under Lhe leadershlp of Lhe ambassador ln Lhls
regard Lhe ambassador may recommend Lo Lhe SecreLary of Lhe ueparLmenL of lorelgn Affalrs Lhe recall of offlcers represenLaLlves and personnel of Lhe hlllpplne
governmenL posLed abroad for acLs lnlmlcal Lo Lhe naLlonal lnLeresL such as buL noL llmlLed Lo fallure Lo provlde Lhe necessary servlces Lo proLecL Lhe rlghLs of
overseas llllplnos
upon recelpL of Lhe recommendaLlon of Lhe ambassador Lhe SecreLary of Lhe ueparLmenL of lorelgn Affalrs shall ln Lhe case of offlcers represenLaLlves
and personnel of oLher deparLmenLs endorse such recommendaLlon Lo Lhe deparLmenL secreLary concerned for approprlaLe acLlon endlng lnvesLlgaLlon by an
approprlaLe body ln Lhe hlllpplnes Lhe person recommended for recall may be placed under prevenLlve suspenslon by Lhe ambassador
ln hosL counLrles where Lhere are hlllpplne consulaLes such consulaLes shall also consLlLuLe parL of Lhe counLryLeam under Lhe leadershlp of Lhe
ambassador
ln Lhe lmplemenLaLlon of Lhe counLryLeam approach vlslLlng hlllpplne delegaLlons shall be provlded full supporL and lnformaLlon
vll uL8LCuLA1lCn Anu PASLCu1
SLC 29 CCM8LPLnSlvL uL8LCuLA1lCn LAn Cn 8LC8ul1MLn1 AC1lvl1lLS ursuanL Lo a progresslve pollcy of deregulaLlon whereby Lhe mlgraLlon of
workers becomes sLrlcLly a maLLer beLween Lhe worker and hls forelgn employer Lhe uCLL wlLhln one (1) year from Lhe effecLlvlLy of Lhls AcL ls hereby mandaLed Lo
formulaLe a flveyear comprehenslve deregulaLlon plan on recrulLmenL acLlvlLles Laklng lnLo accounL labor markeL Lrends economlc condlLlons of Lhe counLry and
emergency clrcumsLances whlch may affecL Lhe welfare of mlgranL workers
SLC 30 C8AuuAL PASLCu1 Cl 8LCuLA1C8? lunC1lCnS WlLhln a perlod of flve (3) years from Lhe effecLlvlLy of Lhls AcL Lhe uCLL shall phase ouL Lhe
regulaLory funcLlons of Lhe CLA pursuanL Lo Lhe ob[ecLlves of deregulaLlon
vll 8ClLSSlCnAL Anu C1PL8 PlCPL?SklLLLu llLllnCS A88CAu
SLC 31 lnCLn1lvLS 1C 8ClLSSlCnALS Anu C1PL8 PlCPL?SklLLLu llLllnCS A88CAu ursuanL Lo Lhe ob[ecLlve of encouraglng professlonals and oLher
hlghlyskllled llllplnos abroad especlally ln Lhe fleld of sclence and Lechnology Lo parLlclpaLe ln and conLrlbuLe Lo naLlonal developmenL Lhe governmenL shall provlde
proper and adequaLe lncenLlves and programs so as Lo secure Lhelr servlces ln prlorlLy developmenL areas of Lhe publlc and prlvaLe secLors
lx MlSCLLLAnLCuS 8CvlSlCnS
SLC 32 CLA Anu CWWA 8CA8u Auul1lCnAL MLM8L8SPlS noLwlLhsLandlng any provlslon of law Lo Lhe conLrary Lhe respecLlve 8oards of Lhe CLA
and Lhe CWWA shall ln addlLlon Lo Lhelr presenL composlLlon have Lhree (3) members each who shall come from Lhe women seabased and landbased secLors
respecLlvely Lo be appolnLed by Lhe resldenL ln Lhe same manner as Lhe oLher members
SLC 33 8LC81 1C CCnC8LSS ln order Lo lnform Lhe hlllpplne Congress on Lhe lmplemenLaLlon of Lhe pollcy enunclaLed ln SecLlon 4 hereof Lhe
ueparLmenL of lorelgn Affalrs and Lhe ueparLmenL of Labor and LmploymenL shall submlL Lo Lhe sald body a semlannual reporL of hlllpplne forelgn posLs locaLed ln
counLrles hosLlng llllplno mlgranL workers 1he reporL shall noL be llmlLed Lo Lhe followlng lnformaLlon
(a) MasLerllsL of llllplno mlgranL workers and lnvenLory of pendlng cases lnvolvlng Lhem and oLher llllplno naLlonals lncludlng Lhose servlng prlson Lerms
(b) Worklng condlLlons of llllplno mlgranL workers
(c) roblems encounLered by Lhe mlgranL workers speclflcally vlolaLlons of Lhelr rlghLs
(d) lnlLlaLlve/acLlons Laken by Lhe hlllpplne forelgn posLs Lo address Lhe problems of llllplno mlgranL workers
(e) Changes ln Lhe laws and pollcles of hosL counLrles and
(f) SLaLus of negoLlaLlons on bllaLeral labor agreemenLs beLween Lhe hlllpplnes and Lhe hosL counLry
Any offlcer of Lhe governmenL who falls Lo reporL as sLaLed ln Lhe preceedlng secLlon shall be sub[ecLed Lo admlnlsLraLlve penalLy
SLC 34 8L8LSLn1A1lCn ln CCnC8LSS ursuanL Lo SecLlon 3(2) ArLlcle vl of Lhe ConsLlLuLlon and ln llne wlLh Lhe ob[ecLlve of empowerlng overseas
llllplnos Lo parLlclpaLe ln Lhe pollcymaklng process Lo address llllplno mlgranL concerns Lwo (2) secLoral represenLaLlves for mlgranL workers ln Lhe Pouse of

8epresenLaLlves shall be appolnLed by Lhe resldenL from Lhe ranks of mlgranL workers rovlded LhaL aL leasL one (1) of Lhe Lwo (2) secLoral represenLaLlves shall
come from Lhe women mlgranL workers secLor rovlded furLher LhaL all nomlnees musL have aL leasL Lwo (2) years experlence as a mlgranL worker
SLC 33 LxLM1lCn l8CM 18AvLL 1Ax Anu Al8C81 lLL All laws Lo Lhe counLry noLwlLhsLandlng Lhe mlgranL worker shall be exempL from Lhe paymenL
of Lravel Lax and alrporL fee upon proper showlng of proof of enLlLlemenL by Lhe CLA
SLC 36 nCnlnC8LASL Cl lLLS A8CLl1lCn Cl 8LA18lA1lCn 8Cnu upon approval of Lhls AcL all fees belng charged by any governmenL offlce on
mlgranL workers shall remaln aL Lhelr presenL levels and Lhe repaLrlaLlon bond shall be esLabllshed
SLC 37 1PL CCnC8LSSlCnAL MlC8An1 WC8kL8S SCPCLA8SPl lunu 1here ls hereby creaLed a Congresslonal MlgranL Workers Scholarshlp lund whlch
shall beneflL deservlng mlgranL workers and/or Lhelr lmmedlaLe descendanLs below LwenLyone (21) years of age who lnLenL Lo pursue courses or Lralnlng prlmarlly ln
Lhe fleld of sclence and Lechnology 1he lnlLlal seed fund of Lwo hundred mllllon pesos (20000000000) shall be consLlLuLed from Lhe followlng sources
(a) llfLy mllllon pesos (3000000000) from Lhe unexpecLed CounLrywlde uevelopmenL lund for 1993 ln equal sharlng by all members of Congress and
(b) 1he remalnlng one hundred flfLy mllllon pesos (13000000000) shall be funded from Lhe proceeds of LoLLo
1he Congresslonal MlgranL Workers Scholarshlp lund as hereln creaLed shall be admlnlsLered by Lhe uCLL ln coordlnaLlon wlLh Lhe ueparLmenL of Sclence
and 1echnology (uCS1) 1o carry ouL Lhe ob[ecLlves of Lhls secLlon Lhe uCLL and Lhe uCS1 shall formulaLe Lhe necessary rules and regulaLlons
SLC 38 A8C8lA1lCn Anu C1PL8 SCu8CLS Cl lunulnC 1he amounL necessary Lo carry ouL Lhe provlslons of Lhls AcL shall be provlded for ln Lhe
Ceneral ApproprlaLlons AcL of Lhe year followlng lLs enacLmenL lnLo law and LhereafLer
SLC 39 MlC8An1 WC8kL8S uA? 1he day of slgnlng by Lhe resldenL of Lhls AcL shall be deslgnaLed as Lhe MlgranL Workers uay and shall henceforLh be
commemoraLed as such annually
SLC 40 lMLLMLn1lnC 8uLLS Anu 8LCuLA1lCnS 1he deparLmenLs and agencles charged wlLh carrylng ouL Lhe provlslons of Lhls AcL shall wlLhln nlneLy
(90) days afLer Lhe effecLlvlLy of Lhls AcL formulaLe Lhe necessary rules and regulaLlons for lLs effecLlve lmplemenLaLlon
SLC 41 8LLA1lnC CLAuSL All laws decrees execuLlve orders rules and regulaLlons or parLs Lhereof lnconslsLenL wlLh Lhe provlslons of Lhls AcL are
hereby repealed or modlfled accordlngly
SLC 42 SLA8A8lLl1? CLAuSL lf for any reason any secLlon or provlslon of Lhls AcL ls held unconsLlLuLlonal or lnvalld Lhe oLher secLlons or provlslons
hereof shall noL be affecLed Lhereby
SLC 43 LllLC1lvl1? CLAuSL 1hls AcL shall Lake effecL afLer flfLeen (13) days from lLs publlcaLlon ln Lhe Cfflclal CazeLLe or ln aL leasL Lwo (2) naLlonal
newspapers of general clrculaLlon whlchever comes earller
hLLp//wwwpoeagovph/rules/ra8042hLml
kLSIDLN1IAL DLCkLL NC 2018 IUk1nLk AMLNDING Ak1ICLLS 38 AND 39 CI 1nL LA8Ck CCDL 8 MAkING ILLLGAL kLCkUI1MLN1 A CkIML CI LCCNCMIC
SA8C1AGL AND UNISnA8LL WI1n LIIL IMkISCNMLN1
WPL8LAS desplLe exlsLlng provlslons of law and Lhe conLlnulng efforLs Lo ellmlnaLe Lhem lllegal recrulLers have conLlnued Lo prollferaLe and vlcLlmlze unwary
workers

WPL8LAS lllegal recrulLers have defrauded and caused unLold sufferlngs Lo Lhousands of llllplno workers and Lhelr famllles

WPL8LAS experlence shows LhaL because of llghL penalLles lllegal recrulLers have become more callous and bolder ln Lhelr modus operandl and usually carry ouL
Lhelr acLlvlLles as syndlcaLes or ln large scale

nCW 1PL8LlC8L l lL8ulnAnu L MA8CCS resldenL of Lhe 8epubllc of Lhe hlllpplnes by vlrLue of Lhe powers vesLed ln me by Lhe ConsLlLuLlon do hereby order

SecLlon 1 ArLlcles 38 and 39 of resldenLlal uecree no 442 as amended oLherwlse known as Lhe Labor Code of Lhe hlllpplnes ls hereby furLher amended Lo read
as follows

ArL 38 lllegal 8ecrulLmenL (a) Any recrulLmenL acLlvlLles lncludlng Lhe prohlblLed pracLlces enumeraLed under ArLlcle 34 of Lhls Code Lo be underLaken by non
llcensees or nonholders of auLhorlLy shall be deemed lllegal and punlshable under ArLlcle 39 of Lhls Code 1he MlnlsLry of Labor and LmploymenL or any law
enforcemenL offlcers may lnlLlaLe complalnLs under Lhls ArLlcle

(b) lllegal recrulLmenL when commlLLed by a syndlcaLe or ln large scale shall be consldered an offense lnvolvlng economlc saboLage and shall be penallzed ln
accordance wlLh ArLlcle 39 hereof

lllegal recrulLmenL ls deemed commlLLed by a syndlcaLe lf carrled ouL by a group of Lhree (3) or more persons consplrlng and/or confederaLlng wlLh one anoLher ln
carrylng ouL any unlawful or lllegal LransacLlon enLerprlse or scheme deflned under Lhls flrsL paragraph hereof lllegal recrulLmenL ls deemed commlLLed ln large scale

lf commlLLed agalnsL Lhree (3) or more persons lndlvldually or as a group

(c) 1he MlnlsLer of Labor and LmploymenL or hls duly auLhorlzed represenLaLlves shall have Lhe power Lo cause Lhe arresL and deLenLlon of such nonllcense or non
holder of auLhorlLy lf afLer lnvesLlgaLlon lL ls deLermlned LhaL hls acLlvlLles consLlLuLe a danger Lo naLlonal securlLy and publlc order or wlll lead Lo furLher explolLaLlon
of [obseekers 1he MlnlsLer shall order Lhe search of Lhe offlce or premlses and selzure of documenLs paraphernalla properLles and oLher lmplemenLs used ln lllegal
recrulLmenL acLlvlLles and Lhe closure of companles esLabllshmenL and enLlLles found Lo be engaged ln Lhe recrulLmenL of workers for overseas employmenL wlLhouL
havlng been llcensed or auLhorlzed Lo do so

ArL 39 enalLles (a) 1he penalLy of lmprlsonmenL and a flne of Cne Pundred 1housand esos (100000) shall be lmposed lf lllegal recrulLmenL consLlLuLes
economlc saboLage as deflned hereln

(b) Any llcensee or holder of auLhorlLy found vlolaLlng or causlng anoLher Lo vlolaLe any provlslon of Lhls 1lLle or lLs lmplemenLlng rules and regulaLlons shall upon
convlcLlon Lhereof suffer Lhe penalLy of lmprlsonmenL of noL less Lhan Lwo years nor more Lhan flve years or a flne of noL less Lhan 10000 nor more Lhan 30000 or
boLh such lmprlsonmenL and flne aL Lhe dlscreLlon of Lhe courL

(c) Any person who ls nelLher a llcensee nor a holder of auLhorlLy under Lhls 1lLle found vlolaLlng any provlslon Lhereof or lLs lmplemenLlng rules and regulaLlons
shall upon convlcLlon Lhereof suffer Lhe penalLy of lmprlsonmenL of noL less Lhan four years nor more Lhan elghL years or a flne of noL less Lhan 20000 nor more
Lhan 100000 or boLh such lmprlsonmenL and flne aL Lhe dlscreLlon of Lhe CourL

(d) lf Lhe offender ls a corporaLlon parLnershlp assoclaLlon or enLlLy Lhe penalLy shall be lmposed upon Lhe offlcer or offlcers of Lhe corporaLlon parLnershlp
assoclaLlon or enLlLy responslble for vlolaLlon and lf such offlcer ls an allen he shall ln addlLlon Lo Lhe penalLles hereln prescrlbed be deporLed wlLhouL furLher
proceedlngs

(e) ln every case convlcLlon shall cause and carry Lhe auLomaLlc revocaLlon of Lhe llcense or auLhorlLy and all Lhe permlLs and prlvlleges granLed Lo such person or
enLlLy under Lhls 1lLle and Lhe forfelLure of Lhe cash and sureLy bonds ln favor of Lhe Cverseas LmploymenL uevelopmenL 8oard or Lhe naLlonal Seamen 8oard as
Lhe case may be boLh of whlch are auLhorlzed Lo use Lhe same excluslvely Lo promoLe Lhelr ob[ecLlves

SecLlon 2 1hls uecree shall Lake effecL lmmedlaLely
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