ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law and Social Legislation SUMMER REVIE WER Head: Labor

Standards: Labor Relations: Ryan Quan Kukay Malabanan Peewee Estrella Socail Legislation: Binkki Hipolito Understudy: Volunteers: Kate Sabado Aren Sam onte, Vina Padilla, Ria Campos, Ina Quintanilla, Athena Zosa TABLE OF CONTENTS LABOR STANDARDS I. GENERAL PRINCIPLES......................... ................................................................................ ............ 1 A. ARTICLE 3: Declaration of Basic Policies B. ARTICLE 4: Constru ction in Favor of Labor C. ARTICLE 5: Rules and Regulations D. ARTICLE 6: Applic ability of Labor Code II. EMPLOYER EMPLOYEE RELATIONSHIP ....................... .................................................. 2 A. Elements of Relationship B. Independent Contractors and Labor-Only Contractors C. Special Cases III. PRE EMPLOYMENT..................................................................... ........................................ 6 A. Principles and Definitions B. Recr uitment and Placement TIFF (Uncompressed) decompressor 1. Definition: to see this picture. Illegal Rec ruitment; Prohibited Acts are needed QuickTime and a 2. Regulation of Recruitment and Placement 3. 4. Contracts Dispute Settlements C. Employment of Aliens D. Human Resources and Manpower Development 1. Governmen t Machinery

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 2. Apprenticeship and Learnership IV. WORKING CONDITIONS ....................... ............................................................................... 13 A. Coverage B. Hours of Work C. Rest Periods and Holidays D. Service Charge a nd Service Incentive Leaves E. Others V. WAGES.................................. ................................................................................ ................ 20 A. Concept and Definition B. Wage Fixing C. Payment of Wages D. Liability for Wages VI. WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES . .............................. 26 A. Women B. Minors C. Househelpers D. Homework ers E. Handicapped/Disabled VII. ADMINISTRATION AND EMPLOYMENT ................. ............................................................ 30 A. ARTICLE 128: Visitorial and Enforcement Powers B. Power of DOLE Secretary VIII. MEDICAL, DENT AL AND OCCUPATIONAL SAFETY ..................................................... ... 31 IX. EMPLOYEES COMPENSATION.. ................................................. ........................ 31 A. Workmens Compensation

LABOR RELATIONS I. RIGHT TO SELF ORGANIZATION..................................... ........ 35 A. Conceptare needed to see this picture. and Scope...................... ..................................................................... 35 1. ARTI CLE 243: Coverage and E,mployees Right to Self-Organization 2. ARTICLE 246: Non-A bridgment of Right to Self-Organization B. Labor Organization. .................... .............................................................................. 3 5 1. Definition and Types 2. Registration of Labor Organizations QuickTime and a TIFF (Uncompressed) decompressor

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 i. Requirements for Registration See ANNEX A ii. Requirements in Case of Merger/ Consolidation See ANNEX B iii. Procedure for Registration of labor Organization See ANNEX C 3. Cancellation of Registration i. Procedure for Cancellation of Reg istration See ANNEX D 4. Rights of Labor Organization ii. iii. ARTICLE 242: Righ ts of Legitimate Labor Organizations ARTICLE 277: Miscellaneous Provisions

C, Special Groups of Employees ....................................................... ............ 37 1. Manegerial and Supervisory Employees 2. Confidential Employee s 3. Security Guards 4. Members of Cooperatives 5. Members of Iglesia ni Kristo 6. Government Employees i. ii. ARTICLE 244: Rights of Employees in the Public Se rvice ARTICLE 276: Government Employees

7. Employees of International Organizations D. Acquisition and Retention of Memb ership; Union Security Agreements........ 39 1. ARTICLE 277: Miscellaneous Provisions 2. ARTICLE 248: Unfair Labor Practice of Employers E. Membership; Rights of Memb ers.. ............................................................. 40 1. ARTICLE 241: Rights and Conditions of Membership in a Labor Organization 2. ARTICLE 274: Visi torial Powers are needed to 222: Appearances and Fees 3. ARTICLE see this picture. QuickTime an d a TIFF (Uncompressed) decompressor 4. Rights of Union Members i. ii. iii. iv. Political Right Deliberative and Deci sion-Making Right Right Over Money Matters Right to Information

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 v. Other Rights and Conditions Under Article 241 5. Elections Under Rule 12 of t he Implementing Rules and Regulations See ANNEX F 6. Check-Offs and Assessments II. UNFAIR LABOR PRACTICES. .............................................. 42 A. Concept of Unfair Labor Practice .............................................. .................. 42 B. Elements of Unfair labor Practice............................ .................................. 42 C. ARTICLE 248: Unfair Labor Practice of E mployers ................................... 43 1. Interference 2. Yellow Dog Contract 3. Contracting Out 4. Company Domination of Union 5. Discrimination 6. Discrimin ation Because of Testimony 7. Violation of the Duty to Bargain 8. Paid Negotiati on 9. Violation of the CBA D. Relief in ULP Cases................................... ........................................................... 49 E. ARTICLE 249: U nfair labor Practices of labor Organization .................................... ........... 50 1. Restraint or Coercion of labor Organization 2. Refusal to Barg ain 3. Featherbedding and Make-Work Arrangements III. RIGHT TO COLLECTIVE BARGAI NING ........................................................................... ... 51 A. Duty to Bargain Collectively ............................................ .................................. 51 1. Collective Bargaining Agreement 2. Bargai ning Procedure under the Labor Code See ANNEX G 3. Violation of the Duty to Barg ain Collectively are needed to see of Collective Bargaining Agreement 4. Registration this pictur e. QuickTime and a TIFF (Uncompressed) decompressor 5. Rules on Effectivity and Retroactivity of New CBA B. Bargaining Agent and Cer tification Election Proceedings ................................................ ... 54 1. Voluntary Recognition 2. Certification Election i. Procedure for Petit ion for Certification Election

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 See ANNEX H ii. Procedure for Conduct of Certification Election See ANNEX I C. B ars to Certification Election ..................................................... .....................59 1. Contract Bar 2. Deadlock Bar 3. Negotiation Bar 4. Certi fication Year Rule Bar D. Administration If Agreement; Grievance and Voluntary A rbitration....................... 59 1. Establishments of Grievance Machinery 2. Pro cedure in Handling Grievances See ANNEX J E. Labor Management Cooperation Scheme s......................................................................... 61 IV . STRIKES, LOCKOUTS AND CONCERTED ACTIONS....................................... ................. 61 A. Strike.. .................................................... ........................................................... 61 B. Lockout............ ................................................................................ .................. 61 C. Notice of Strike or Lockout ................................. ....................................... 62 D. Prohibited Activities During Strik e or Lockouts. ............................................. 63 E. Injunction.. .. ................................................................................ .............. 63 F. Assumption of Jurisdiction by DOLE Secretary .................. .................................. 63 G. Powers of the President Under Article 2 63 (g). ........................................................ 64 V. POST EMPLOYM ENT ............................................................................ ............................ 65 A. Regular, Casual, Probationary Employment ......... .............................. 65 1. Regular Employment 2. Casual Employment 3. Fixed-Term Employment 4. Project Employment 5. Probationary Employment are needed to see this picture. 6. Seasonal Employment QuickTime and a TIFF (Unco mpressed) decompressor

B. Security of Tenure................................................................. .................... 67 1. ARTICLE 279: Security of Tenure C. Just Causes, Autho rized Causes, Constructive Dismissal ................................... 67 1. ARTIC LE 282: Just Causes for Termination by Employer 2. ARTICLE 283: Authorized Cause s for Termination

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 3. Constructive Dismissal 4. ARTICLE 284: Disease as Ground for Termination 5. A RTICLE 285: Termination by Employee 6. ARTICLE 286: When Employment Not Deemed T erminated D. Due Process.. ......................................................... .............................................. 70 1. ARTICLE 277 (b): Miscellane ous Provisions E. Reliefs for Illegal Dismissal....................................... ..................................... 71 F. Retirement ............................... ...................................................................... 72 1. ART ICLE 287: Retirement VI. DISPUTE SETTLEMENT..................................... .................................................................. 72 A. Jurisdi ction of the Different Agencies. .................................................... ........... 72 1. Bureau of Labor Relations 2. Labor Arbiters 3. NLRC 4. Med-Arb iters/BLR 5. POEA 6. DOLE Regional Directors 7. NCMB See ANNEX L B. Procedure........ ................................................................................ .................. 74 C. Appeal.. ................................................. ................................... 75 1. Appeal of LAs Decision 2. Appeal Involv ing Monetary Award 3. Appeal of Voluntary Arbitrators Decision 4. Appeal of BLRs D ecision 5. Appeal of Regional Directors Decision Under Article 129 VII. PENAL PRO VISIONS AND LIABILITIES ........................................................ ..................... 77 QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2 007 SOCIAL LEGISLATION I. THIRTEENTH MONTH PAY (P.D. 851)................................................. ............................ 78 II. ANTI-SEXUAL HARASSMENT ACT OF 1995 (RA 7877)................................ .................... 78 III. EXECUTIVE ORDER NO. 180............................ ................................................................... 79 IV. SALIE NT PROVISIONS OF THE SSS LAW AND GSIS LAW See ANNEX O V. NATIONAL HEALTH INSURAN CE ACT OF 1995 (R.A. 7875)............................................ 80 QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law & Social Legislation SUMMER REVIEWE R LABOR STANDARDS I. GENERAL PRINCIPLES Labor Code principal labor law of the country. But even no w, there are Labor Laws that are not found in the Labor Code. Social Legislation the promotion of the welfare of all the people, the adoption by the government of measures calculated to insure economic stability of all the component element s of society thru the maintenance of proper economic and social equilibrium in t he interrelations of the members of the community, constitutionally, thru the ad option of measures legally justifiable, or extra-constitutionally, thru the exer cise of powers underlying the existence of all governments, on the time honored principle of salus populi esta suprema lex (Calalang v. Williams, 02 December 19 40) Social Justice humanization of laws and the equalization of social and econo mic forces by the State so that justice in its rational and objective secular co nception may at least be approximated Labor Standards sets out the minimum terms , conditions, and benefits of employment that employers must provide or comply w ith and to which employees are entitled as a matter of legal right Labor Relatio ns defines the status, rights and duties, as well as the institutional mechanism s that govern the individual and collective interactions between employers, empl oyees and their representatives Art. 3. Declaration of basic policy Afford prote ction to labor Promote full employment Ensure equal work opportunities regardles s of sex, race, or creed QuickTime and a Regulate the relations between workers a nd TIFF (Uncompressed) decompressor are needed to see this picture. employers As sure workers rights to self-organization, collective bargaining, security of tenu re, and just and humane conditions of work Seven basic rights of workers guarant eed by the Constitution: 1. right to organize 2. to conduct collective bargainin g or negotiation with management 3. to engage in peaceful concerted activities, including strike in accordance wi th law 4. to enjoy security of tenure 5. to work under humane conditions 6. to r eceive a living wage 7. to participate in policy and decision-making processes a ffecting their rights and benefits as may be provided by law. Art. 4. Constructi on in favor of labor When the interest of labor and capital collide, the heavier influence of capital should be counterbalanced with the sympathy and compassion of law for the less privileged workers. But protection to labor does not mean o ppression or destruction of capital. The employers act will be sustained when it is in the right. [Eastern Shipping Lines v. POEA, 166 SCRA 523 (1998)] Court dec isions adopt a liberal approach that favors the exercise of labor rights. The ma ndate is simply to resolve doubt in favor of labor. If there is no doubt in impl ementing and interpreting the law, labor will enjoy no built-in advantage and th e law will have to be applied as it is. When the subject matter is covered by th e Labor Code, doubts which involve implementation and interpretation of labor la ws should be resolved in favor of labor, even if the question involves Rules of Evidence. Management Rights / Prerogative except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time , place and manner of work, tools to be used, processes to be followed, supervis ion of workers, working regulations, transfer of employees, work supervision, la y-off of workers and the discipline, dismissal and recall of workers Capitol Med ical Center, Inc. v. Meris (16 September 2005) As long as the companys exercise o f the same is exercised in good faith for the advancement of the employers intere st, and not for the purpose of defeating or circumventing the rights of the empl oyees under special laws or valid agreements, the courts will uphold them. Adviser: Atty. Marlon J. Manuel; Head: Ryan Quan; Understudy: Kate Sabado; Labor Standards: Kukay Malabanan; Labor Relations: Peewee Estrella; Social Legislation : Binkki Hipolito

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Philippine Blooming Mills Employees Association v. Philippine Blooming Mills, GR No. L-31195, 05 June 1973 The primacy of human rights freedom of expression, of peaceful assembly and of petition for redress of grievances over property right s has been sustained. PAL v. NLRC, GR No. 85985 (1993) The exercise of managemen t prerogatives is not unlimited. A line must be drawn between management preroga tives regarding business operations per se and those which affect the rights of employees. In treating the latter, management should see to it that its employee s are at least properly informed of its decisions and modes of action. Wages are defined as remuneration or earnings, however designated, capable of being expre ssed in terms of money, whether fixed or ascertained on a time, task, piece or c ommission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered, and includ ed the fair and reasonable value, as determined by the Secretary of Labor, of bo ard, lodging, or other facilities customarily furnished by the employer to the e mployee. [Ruga v. NLRC, 181 SCRA 266 (1990)] 2. Hiring employment relation arise s from contract of hire, express or implied [Ruga v. NLRC, 181 SCRA 266 (1990)] Selection and engagement of the workers rests with the employers Not a conclusiv e test since it can be avoided by the use of subcontracting agreements or other contracts other than employment contracts 3. Firing disciplinary power exercised by employer over the worker and the corresponding sanction imposed in case of v iolation of any of its rules and regulations 4. Control, not only over the end p roduct / RESULT of the work, but more importantly, control over the MEANS throug h which the work is accomplished. (most essential element; without it, there is no EER) B. Economic Relations Test a subordinate / alternative test. Existing ec onomic conditions between the parties are used to determine whether EER exists. 1. payment of PAG-IBIG Fund contributions 2. payment / remittance of contributio ns to the State Insurance Fund 3. deduction of withholding tax 4. deduction / re mittance of SSS contributions Insular Life Assurance Co., Ltd. v. NLRC, GR No. 1 19930, 12 March 1998 The employment status of a person is defined and prescribed by law and not by what the parties say it should be. Algon Engineering Construc tion Corp. v. NLRC, GR No. 83402, 06 October 1997 No particular evidence is requ ired to prove the existence of an EER. All that is necessary is to show that the employer is capable of exercising control over the employee. In labor disputes, it suffices that Page 2 of 83 Art. 5. Rules and regulations Department of Labor and Employment (DOLE) Lead age ncy in enforcing labor laws and it possesses rule-making power in the enforcemen t of the Code But a rule or regulation that exceeds the Departments rule-making a uthority is void. Art. 6. Applicability of Labor Code Applies alike to all worke rs, except as otherwise provided by law, whether agricultural or nonagricultural . Applies to a government corporation incorporated under the Corporation Code II. EMPLOYER EMPLOYEE RELATIONSHIP (EER) A. ELEMENTS OF RELATIONSHIP Jurisprudent ial Tests to Determine Existence of EER: A. The employer has the ability (need n ot be actual) to exercise control over the following: 1. Payment of Wages QuickT ime and a payment TIFF (Uncompressed) decompressor by way of of compensation are needed to see this picture. commission does not militate against the conclusion EER exists. Under Art. 97 of the Labor Code, "wage" shall mean "however designat ed, capable of being expressed in terms of money, whether fixed or ascertained o n a time, task, price or commission basis" (Insular Life Assurance Co., Ltd. V. N LRC, GR No.119930, 12 March 1998)

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 there be a causal connection between the claim asserted and the EER. Control of the employee s conduct is commonly regarded as the most crucial and determinativ e indicator of the presence or absence of an employer-employee relationship. Aur ora Land Projects Corp. v. NLRC, GR No. 114733, 02 January 1997 Whenever the exi stence of EER is in dispute, four elements constitute the reliable yardstick (fo urfold test); (a) the selection and engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and (d) the employer s power to control th e employee s conduct. It is the so-called "control test," and that is whether th e employer controls or has reserved the right to control the employee not only a s to the result of the work to be done but also as to the means and methods by w hich the same is to be accomplished, which constitute the most important index o f the existence of the employer-employee relationship Stated otherwise, an EER e xists where the person for whom the services are performed reserves the right to control no only the end to be achieved but also the means to be used in reachin g such end. Filipinas Broadcasting Network, Inc. v. NLRC, GR No. 118892, 11 Marc h 1998 There could be no EER where "the element of control is absent; where a pe rson who works for another does so more or less at his own pleasure and is not s ubject to definite hours or conditions of work; and in turn is compensated accor ding to the result of his efforts and not the amount thereof, we should not find that the relationship of employeremployee exists." Dy Keh Beng v. International Labor, GR No. L32245, 25 May 1979 It should be borne in mind that the control t est calls merely for the existence of the right to control the manner of doing t he work, not the actual exercise of the right. AFP Mutual Benefit Association v. NLRC, GR No. 102199, 28 January 1997 QuickTime and However, not TIFF (Uncompress ed) decompressor control. The all that glittersa is are needed to was required t o solicit fact that private respondentsee this picture. business exclusively for petitioner could hardly be considered as control in labor jurisprudence. Under Memo Circulars No. 2-81 and 2-85 issued by the Insurance Commissioner, insurance agents are barred from serving more than one insurance company, in order to pro tect the public and to enable insurance companies to exercise exclusive supervis ion over their agents in their solicitation work. Thus, the exclusivity restrict ion clearly springs from a regulation issued by the Insurance Commission, and no t from an intention by petitioner to establish control over the method and manne r by which private respondent shall accomplish his work. This feature is not mea nt to change the nature of the relationship between the parties, nor does it nec essarily imbue such relationship with the quality of control envisioned by the l aw. So too, the fact that private respondent was bound by company policies, memo /circulars, rules and regulations issued from time to time is also not indicativ e of control. With regard to the territorial assignments given to sales agents, this too cannot be held as indicative of the exercise of control over an employe e. Further, not every form of control that a party reserves to himself over the conduct of the other party in relation to the services being rendered may be acc orded the effect of establishing an employer-employee relationship. Ruga v. NLRC , 181 SCRA 266 (1990) The employer-employee relationship between the crew member s and the owners of the fishing vessels engaged in deep-sea fishing is merely su spended during the time the vessels are drydocked or undergoing repairs or being loaded with the necessary provisions for the next fishing trip. The said ruling is premised on the principle that all these activities i.e., drydock, repairs, loading of necessary provisions, form part of the regular operation of the compa ny fishing business. B. INDEPENDENT CONTRACTORS AND LABOR-ONLY CONTRACTORS Indep endent Contractors has sufficient substantial capital OR investment in machinery , tools or equipment directly or intended to be related to the job contracted ca rries an independent business different from the employers undertakes to perform the job under its own account and responsibility, FREE from the principals contro l NO EER except when the contractor or subcontractor fails to pay the employees w ages. Labor Only Contractors has NO substantial capital OR investment in the for m of machinery, tools or equipment

has no independent business performs activities directly related to the main bus iness of the principal Principal treated as direct employer of the person recrui ted in all instances (contractor is deemed Page 3 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 LIMITED liability (principal solidarily liable with contractor or subcontractor only when latter fails to comply with requirements as to unpaid wages and other labor standards violations. PERMISSIBLE agent of the principal) Principals liabil ity extends to all rights, duties and liabilities under labor standard laws incl uding the right to self-organization 2. The employees recruited, supplied or pla ced by such contractor or subcontractor are performing activities which are dire ctly related to the main business of the principal; or 3. The contractor does no t exercise the right to control over the performance of the work of the contract ual employee. Substantial capital or investment capital stocks and subscribed ca pitalization in the case of corporations, tools, equipment, implements, machiner ies and work premises, actually and directly used by the contractor or subcontra ctor in the performance or completion of the job, work or service contracted out . Right to Control right reserved to the person for whom the services of the con tractual workers are performed, to determine not only the end to be achieved, bu t also the manner and means to be used in reaching that end. The test to determi ne whether one is a job or labor-only contractor is to look into the elements of a job contractor. If ALL elements of a job contractor are present, then he is a job contractor. Otherwise, he is a labor-only contractor. Absent one of the ele ments for being a job contractor, the person is a labor-only contractor. On the other hand, not all requisites of a laboronly contractor need to be present. As long as any one of the elements is present, then the person is a labor-only cont ractor. Posting of Bond an employer or indirect employer may require the contrac tor or subcontractor to furnish a bond equal to the cost of labor under contract , on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same Civil liability of employer and contractors Every employer or indirect employer shall be jointly and severally liable with his contractor or sub-contractor for the un paid wages of the employees of the latter. Such employer or indirect employer ma y require the contractor or sub-contractor to furnish a bond equal to the cost o f labor under contract on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail t o pay the same Liability of the principal to the employee in cases of illegal di smissal Page 4 of 83 PROHIBITED Contracting or subcontracting an arrangement whereby a principal agrees to put o ut or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, re gardless of whether such job, work or service is to be performed or completed wi thin or outside the premises of the principal Contractor or subcontractor any pe rson or entity engaged in a legitimate contracting or subcontracting arrangement Contractual employee one employed by a contractor or subcontractor to perform o r complete a job, work or service pursuant to an arrangement between the latter and a principal Principal any employer who puts out or farms out a job, service or work to a contractor or subcontractor Permissible Job Contracting; Conditions a. The contractor carries on an independent business; b. Undertakes the contrac t work on his own account under his own responsibility according to his own mann er and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the resul ts thereof; and c. The contractor has substantial capital or investment in the f orm of tools, equipment, machineries, work premises, and other materials which a re necessary in the conduct of his QuickTime and a business. TIFF (Uncompressed) decompressor are needed to see this picture. Labor-only Contracting an arrangement where the contractor or subcontractor mere

ly recruits, supplies or places workers to perform a job, work or service for a principal, and any of the following elements are present: 1. The contractor or s ubcontractor does not have substantial capital or investment which relates to th e job, work or service to be performed

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 1. Joint and several with the employer, but with the right to reimbursement from the employercontractor 2. Wage differentials only to the extent where the emplo yee performed the work under the principal. 3. Separation pay and backwages, onl y when the principal has some relation to the termination (such as when he consp ired to terminate) (Rosewood Processing Inc. v. NLRC, GR Nos. 116476-84, 21 May 1998) NOTE: this ruling is an obiter and made an unjustified interpretation of A rt. 109 of the Labor Code. Art. 109 makes the principal liable in illegal dismis sal WON there was fault on his part. Prohibited Acts (DO 18-02): a. Contracting out of a job, work or service when not done in good faith and not justified by t he exigencies of the business and the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the bargaini ng unit b. Contracting out of work with a "cabo" as defined in Section 1 (ii), R ule I, Book V of these Rules. "Cabo" refers to a person or group of persons or t o a labor group which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor c. Taking undue advantage of the economic situation or lack of bargaining stren gth of the contractual employee, or undermining his security of tenure or basic rights, or circumventing the provisions of regular employment, in any of the fol lowing instances: i. In addition to his assigned functions, requiring the contra ctual employee to perform functions which are currently being performed by the r egular employees of the principal or of the contractor or subcontractor; QuickTi me as ii. Requiring him to sign, and a a precondition to TIFF (Uncompressed) deco mpressor are or continued employment, an employment needed to see this picture. antedated resignation letter; a blank payroll; a waiver of labor standards inclu ding minimum wages and social or welfare benefits; or a quitclaim releasing the principal, contractor or subcontractor from any liability as to payment of futur e claims; and iii. Requiring him to sign a contract fixing the period of employm ent to a term shorter than the term of the contract between the principal and th e contractor or subcontractor, unless the latter contract is divisible into phas es for which substantially different skills are required and this is made known to the employee at the time of engagement d. Contracting out of a job, work or service through an in-house agency which re fers to a contractor or subcontractor engaged in the supply of labor which is ow ned, managed or controlled by the principal and which operates solely for the pr incipal e. Contracting out of a job, work or service directly related to the bus iness or operation of the principal by reason of a strike or lockout whether act ual or imminent f. Contracting out of a job, work or service being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their rights to self organization as provided in Art. 248 (c) of th e Labor Code, as amended Existence of EER The contractor or subcontractor shall be considered the employe r of the contractual employee for purposes of enforcing the provisions of the La bor Code and other social legislation. The principal, however, shall be solidari ly liable with the contractor in the event of any violation of any provision of the Labor Code, including the failure to pay wages. The principal shall be deeme d the employer of the contractual employee in any of the following cases as decl ared by a competent authority: a. where there is labor-only contracting; or b. w here the contracting arrangement falls within the prohibited acts Registration o f Contractors and Subcontractors The registration of contractors and subcontract ors shall be necessary for purposes of establishing an effective labor market in formation and monitoring. Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting. Neri v. NLRC, GR Nos. 97008-09, 23 July 1993 Page 5 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 The law does not require both substantial capital and investment in the form of tools, equipment and machineries. This is clear from the use of the conjunction o r. If the intention was to require the contractor to prove that he has both capit al and the requisite investment, then the conjunction and should have been used. W hile these services (janitorial, security and even technical or other specific s ervices) may be considered directly related to the principal business of the emp loyer, nevertheless, they are not necessary in the conduct of the principal busi ness of the employer. Lapanday Agricultural Devt Corp. v. CA, GR No. 112139, 31 J anuary 2000 It will be seen from the above provisions that the principal (petiti oner) and the contractor (respondent) are jointly and severally liable to the em ployees for their wages. The joint and several liability of the contractor and t he principal is mandated by the Labor Code to assure compliance with the provisi ons therein including the minimum wage. The contractor is made liable by virtue of his status as direct employer. The principal, on the other hand, is made the indirect employer of the contractor s employees to secure payment of their wages should the contractor be unable to pay them. Even in the absence of an EER, the law itself establishes one between the principal and the employees of the agenc y for a limited purpose i.e. in order to ensure that the employees are paid the wages due them. Several factors to consider to Determine Whether Contractor is c arrying on an independent business: 1. nature and extent of work 2. skill requir ed 3. term and duration of the relationship 4. right to assign the performance o f specified pieces of work 5. control and supervision of worker 6. power of empl oyer with hiring, firing, and payment of wages 7. control of the premises 8. dut y to supply premises, and a tools, appliances, QuickTime TIFF (Uncompressed) deco mpressor materials and laborneeded to see this picture. are 9. mode, manner, ter ms of payment (Vinoya v. NLRC, GR No. 126286, 02 February 2000) C. SPECIAL CASES 1. Working scholars no EER between students on one hand, and schools, colleges or universities on the other, where: a. there is written agreement between them under which the former agree to work for the latter in exchange for the privileg e to study free of charge b. provided, the students are given real opportunities , including such facilities as may be reasonable and necessary to finish their c hosen courses under such agreement 2. Resident physicians in training There is E ER between resident physicians and the training hospital unless: a. There is a t raining agreement between them b. The training program is duly accredited or app roved by the appropriate government agency. III. PRE-EMPLOYMENT A. PRINCIPLES AND DEFINITIONS JMM Promotion & Management Inc . v. CA, GR No. 120095, 05 August 1996 The POEA Rules are clear. A reading there of readily shows that in addition to the cash and surety bonds and the escrow mo ney, an appeal bond in an amount equivalent to the monetary award is required to perfect an appeal from a decision of the POEA. Obviously, the appeal bond is in tended to further insure the payment of the monetary award in favor of the emplo yee if it is eventually affirmed on appeal to the NLRC. Overseas recruiters are subject to more stringent requirements because of the special risks to which our workers abroad are subjected by their foreign employers, against whom there is usually no direct or effective recourse. The overseas recruiter is solidarily li able with the foreign employer. The bonds and the escrow money are intended to i nsure more care on the part of the local agent in its choice of the foreign prin cipal to whom our overseas workers are to be sent. Every intendment of the law m ust be interpreted in favor of the working class, conformably to the mandate of the Constitution. By sustaining rather than annulling the appeal bond as a furth er protection to the claimant employee, this Court affirms once again its commit ment to the interests of labor. PNB v. Cabansag, GR No. 157010, 21 June 2005 Not eworthy is the fact that respondent likewise applied for and secured an Overseas Employment Certificate from the POEA through the Philippine Embassy in Singapor e. The Certificate, issued on March 8, 1999, declared her a bona fide contract w orker for Singapore. Under Philippine law, this Page 6 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 document authorized her working status in a foreign country and entitled her to all benefits and processes under our statutes. Thus, even assuming that she was considered at the start of her employment as a direct hire governed by and subject to the laws, common practices and customs prevailing in Singapore she subsequen tly became a contract worker or an OFW who was covered by Philippine labor laws and policies upon certification by the POEA. At the time her employment was ille gally terminated, she already possessed the POEA employment Certificate. Whether employed locally or overseas, all Filipino workers enjoy the protective mantle of Philippine labor and social legislation, contract stipulations to the contrar y notwithstanding. This pronouncement is in keeping with the basic public policy of the State to afford protection to labor, promote full employment, ensure equ al work opportunities regardless of sex, race or creed, and regulate the relatio ns between workers and employers. B. RECRUITMENT AND PLACEMENT 1. Definition: Il legal Recruitment; Prohibited Acts Recruitment and Placement any act of (CETCHUP ) canvassing, enlisting, transporting, contracting, hiring, utilizing or procuri ng workers and includes (CRAP) includes contract services, referrals, advertisin g for employment, promising for employment locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or pro mises for a fee, employment to two or more persons shall be deemed engaged in re cruitment and placement Prohibited Practices 1. To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount g reater than that actually received by him as a loan or advance 2. To furnish or publish any false notice or information or document in relation to recruitment Q uickTime and a decompressor or employmentTIFF (Uncompressed) this picture. are ne eded to see 3. To give any false notice, testimony, information or document or c ommit any act of misrepresentation for the purpose of securing a license or auth ority under this Code 4. To induce or attempt to induce a worker already employe d to quit his employment in order to offer him to another unless the transfer is designed to 11. liberate the worker from oppressive terms and conditions of emp loyment To influence or to attempt to influence any person or entity not to empl oy any worker who has not applied for employment through his agency To engage in the recruitment or placement of workers in jobs harmful to public health or mor ality or to the dignity of the Republic of the Philippines To obstruct or attemp t to obstruct inspection by the Secretary of Labor or by his duly authorized rep resentatives To fail to file reports on the status of employment, placement vaca ncies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of La bor To substitute or alter employment contracts approved and verified by the Dep artment of Labor from the time of actual signing thereof by the parties up to an d including the periods of expiration of the same without the approval of the Se cretary of Labor To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the manageme nt of a travel agency To withhold or deny travel documents from applicant worker s before departure for monetary or financial considerations other than those aut horized under this Code and its implementing rules and regulations Failure to ac tually deploy without valid reason as determined by DOLE Failure to reimburse ex penses incurred by the worker in connection with his documentation and processin g for purposes of deployment, in cases where the deployment does not actually ta ke place without the workers fault 5. 6. 7. 8.

9. 10. 12. 13. Art. 38. Illegal recruitment Any recruitment activities, including the prohibite d practices enumerated under Article 34 of this Code, to be undertaken by non-li censees or nonholders of authority, shall be deemed illegal and punishable under Article 39 of this Code. The Department of Labor and Employment or any law enfo rcement officer may initiate complaints. People v. Panis, 142 SCRA 664 (1986) Th e number of persons dealt with is not the basis in determining WON an act consti tutes recruitment and placement. Any of the acts mentioned in Article 13 (b) wil l constitute recruitment and placement even if only one prospective worker is in volved. In that case, a license or authority from POEA is needed. Page 7 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 The proviso about two or more persons merely lays down a rule of evidence: where f ee is collected because of a promise or offer of employment to two or more prosp ective workers, the individual or entity dealing with them shall be deemed to be engaged in the act of recruitment and placement. The words shall be deemed create that presumption. RA 8042 Overseas Filipinos and Overseas Migrant Workers Act a pplies to recruitment for overseas employment Illegal Recruitment (Sec. 6): Any recruitment activity committed by nonlicensees / non-holders of authority; OR Pr ohibited Acts (same as Art. 34 of LC) committed by any person, whether a nonlice nsee, non-holder, licensee or holder of authority. Added the following in the li st of Prohibited Acts: 1. fail to actually deploy without valid reason; 2. fail to reimburse expenses incurred by the worker in connection with his/her document ation and processing for purposes of deployment, in cases where the deployment d oes not actually take place without the workers fault. 1. By a syndicate carried out by a group of 3 or more persons confederating with one another 2. In large scale committed against 3 or more persons individually or as a group People v. F ernandez, et. al., 07 March 2002 These categories are separate or independent ca tegories. If there is only one complainant in several complaints, there is no il legal recruitment in large. But where there are three conspiring recruiters, the re is illegal recruitment by a syndicate. Non-licensee / Non-Holder of authority any person, corporation or entity which has not been issued a valid license or authority to engage in recruitment and placement by the Secretary of Labor, or w hose license or authority has been suspended, revoked or cancelled by the POEA o r the Secretary Who are liable: Principals, accomplices, and accessories For jur idical persons, the officers having control, management or direction of their bu siness shall be liable. Where illegal recruitment is proved but the elements of l arge scale or syndicate are absent, the accused can be convicted only of simple ille gal recruitment. (People v. Sagun, GR No. 110554, 19 February 1999) Illegal recru itment (IR) involving Economic Sabotage (Art. 38 (b) Labor Code & Sec. 10 RA 804 2): 1. IR committed by syndicate carried out by a group of 3 or more persons con spiring and/or confederating with one another in carrying out any unlawful or il legal transaction, enterprise or scheme falling under illegal recruitment 2. IR committed in large scale - committed against 3 or more persons individually or a s a group Estafa a person convicted for illegal recruitment under Labor Code can be convicted for violation of the Revised Penal Code provisions on estafa provi ded the elements of the crime are present. Art. 39 (c) of Labor Code unconstitut ional Only a Judge may issue warrants of search and arrest. The labor authoritie s must go through the judicial process. Venue filed with the RTC of the province or city, Where offense committed; OR Where offended party actually resides at t he time of the commission of the offense Labor Code local recruitment and employment Illegal Recruitment (Art. 38): Any r ecruitment activity including Prohibited Acts under Art. 34 committed by nonlice nsees or nonholders of authority. Elements: 1. That the offender has no valid li cense or authority required by law to enable one to lawfully engage in recruitme nt and placement of workers; and, 2. That the offender undertakes either any act ivity within the meaning of recruitment and placement defined under Article 13(b ), or any prohibited practices enumerated under Article 34. To prove illegal recruitment, it must be shown that the accused gave the distinc t impression that QuickTime and a TIFF or ability decompressor he had the power(U ncompressed) this picture. complainants to send are needed to see abroad for wor k such that the latter were convinced to part with their money in order to be de ployed. A person is guilty of illegal recruitment when he gives the impression t hat he has the power to send workers abroad. Illegal recruitment involving econo mic sabotage Page 8 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Prescriptive Periods: Simple IR within 5 years from time IR happened Economic Sa botage within 20 years from time IR happened People v. Diaz, 259 SCRA 441 (1996) The acts of the appellant, which were clearly described in the lucid testimonie s of the three victims, such as collecting from each of the complainants payment for passport, medical tests, placement fee, plane tickets and other sundry expe nses, promising them employment abroad, contracting and advertising for employme nt, unquestionably constitute acts of large scale illegal recruitment. Aquino v. CA, 204 SCRA 240 (1991) Receipt of payments, after the expiration of the licens e, for services rendered before said expiration does not constitute illegal recr uitment. Recruitment refers to the offering of inducements to qualified personne l to enter a particular job or employment. The advertising, the promise of futur e employment and other come-ons took place while Ms. Aquino was still licensed. True, the payments for services rendered are necessary consequences of the appli cations for overseas employment. However, it is asking too much to expect a lice nsed agency to absolutely at the stroke of midnight stop all transactions on the day its license expires and refuse to accept carry-over payments after the agen cy is closed. In any business, there has to be a winding-up after it ceases oper ations. The collection of unpaid accounts should not be the basis of a criminal prosecution. The prosecution is based on the date of the prohibited activity, no t on the payments being illegal exactions even if effected during the correct pe riod. The payments are necessary in order to defray the expenses entailed in any overseas contract of employment. They are intended for administrative and busin ess expenses and for the travelling expenses of the applicants once cleared for overseas travel. People v. Senoron, 267 SCRA 278 (1997) QuickTime and a According to TIFF (Uncompressed) decompressorit is not the the Labor Code, are needed to see this picture. issuance or signing of receipts for the placement fees that ma kes a case for illegal recruitment, but rather the undertaking of recruitment ac tivities without the necessary license or authority. Absent any other participat ion in the IR activities, mere receiving of placement fees or signing of receipt do not constitute IR. Darvin v. CA, 292 SCRA 534 (1998) Page 9 of 83 By themselves, procuring a passport, airline tickets and foreign visa for anothe r individual, without more, can hardly qualify as recruitment activities. IR mus t be proved beyond reasonable doubt. 2. Regulation of Recruitment and Placement Activities Entities authorized to engage in recruitment and placement a. public employment offices b. Philippine Overseas Employment Administration (POEA) c. pr ivate recruitment entities d. private employment agencies e. shipping or manning agents or representatives f. such other persons or entities as may be authorize d by the DOLE Secretary g. construction contractors Is direct-hiring of OFWs all owed? Why? No. Employers cannot directly hire workers for overseas employment ex cept through authorized entities see (enumeration above). The reason for the ban is to ensure full regulation of employment in order to avoid exploitation. Fees to be Paid by Workers: No worker shall be charged with any fee until employee: (1) obtained work through recruiters efforts; and (2) worker has actually commenc ed working. Placement fee in an amount equivalent to one months salary of the wor ker and documentation costs are the ONLY AUTHORIZED PAYMENTS that may be collect ed from a hired worker. Eastern Assurance and Surety Corp. v. Secretary of Labor , 181 SCRA 110 (1990) POEA has the power to order refund of illegally collected fees. Implicit in its power to regulate the recruitment and placement activities of all agencies is the award of appropriate relief to the victims of the offens es committed by the respondent agency or contractor. Such relief includes the re fund or reimbursement of such fees as may have been fraudulently or otherwise il legally collected, or such money, goods or services imposed and accepted in exce ss of what is licitly prescribed. Nature of the liability of local recruitment a gency and foreign principal 1. Local Agency is solidarily liable with foreign pr incipal.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 2. Severance of relations between local agent and foreign principal does not aff ect liability of local recruiter. Joint and solidary liability of recruiter with Foreign Principal A recruitment agency is solidarily liable for the unpaid sala ries of a worker it recruited for employment overseas. Even if the recruiter and the principal had already severed their agency agreement at the time employee w as injured, the recruiter may still be sued for a violation of the employment co ntract because no notice of the agency agreement s termination was given to the employee. Catan v. NLRC, 160 SCRA 691 (1988) This must be so, because the obliga tions covenanted in the recruitment agreement entered into by and between the lo cal agent and its foreign principal are not coterminous with the term of such ag reement so that if either or both of the parties decide to end the agreement, th e responsibilities of such parties towards the contracted employees under the ag reement do not at all end, but the same extends up to and until the expiration o f the employment contracts of the employees recruited and employed pursuant to t he said recruitment agreement. Otherwise, this will render nugatory the very pur pose for which the law governing the employment of workers for foreign jobs abro ad was enacted. Posting of cash bond by recruiter Capricorn Travel & Tours v. CA , 184 SCRA 123 (1990) The requirement for the posting of a cash bond is also an indispensable adjunct to the requirement that the agency undertakes to assume jo int and solidary liability with the employer for all claims and liabilities whic h may arise in connection with the implementation of the contract of overseas em ployment and to guarantee compliance with existing labor and social legislation of the Philippines and the country of employment. The undertaking to QuickTime an d a TIFF (Uncompressed) decompressor assume joint and solidary to see this pictu re. to guarantee liability and are needed compliance with labor laws, and the co nsequent posting of cash and surety bonds, may be traced all the way back to the constitutional mandate for the State to "afford full protection to labor, local and overseas." The peculiar nature of overseas employment makes it very difficu lt for the Filipino overseas worker to effectively go after his foreign employer for employment-related claims and, hence, public policy dictates that, to affor d overseas workers protection from unscrupulous employers, the recruitment or pl acement agency in the Philippines be made to share in the employer s responsibil ity. Stronghold Insurance Co. v. CA, 205 SCRA 605 (1992) The surety bond require d of recruitment agencies is intended for the protection of our citizens who are engaged for overseas employment by foreign companies. The purpose is to insure that if the rights of these overseas workers are violated by their employers, re course would still be available to them against the local companies that recruit ed them for the foreign principal. The foreign principal is outside the jurisdic tion of our courts and would probably have no properties in this country against which an adverse judgment can be enforced. This difficulty is corrected by the bond, which can be proceeded against to satisfy that judgment. Liability of sure ty In a surety bond, the surety unequivocally bound itself to answer for all lia bilities which the POEA may adjudge or impose against the principal in connectio n with the recruitment of Filipino seamen Stronghold Insurance Co. v. CA, 205 SC RA 605 (1992) The surety agreed to answer for whatever decision might be rendere d against the principal, whether or not the surety was impleaded in the complain t and had the opportunity to defend itself. There is nothing in the stipulation calling for a direct judgment against the surety as a co-defendant in an action against the principal. Power to suspend or cancel any license or authority to re cruit employees for overseas employment is concurrently vested with the POEA and the Secretary of Labor. The penalties of suspension and cancellation of license or authority are prescribed for violations of the above quoted provisions, amon g others. And the Secretary of Labor has the power under Section 35 of the law t o apply these sanctions, as well as the authority, conferred by Section 36, not only to restrict and regulate the recruitment and placement activities of all a gencies, but also to promulgate rules and regulations to carry out the objecti ves and implement the provisions governing said activities. Pursuant to this ru lemaking power thus granted, the Secretary of Labor gave the POEA on its own ini

tiative or upon filing of a complaint or report or upon request for investigatio n by any aggrieved Page 10 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 person, (authority to) conduct the necessary proceedings for the suspension or c ancellation of the license or authority of any agency or entity for certain enu merated offenses including 1. the imposition or acceptance, directly or indirect ly, of any amount of money, goods or services, or any fee or bond in excess of w hat is prescribed by the Administration 2. any other violation of pertinent prov isions of the Labor Code and other relevant laws, rules and regulations. The Adm inistrator was also given the power to order the dismissal of the case or the s uspension of the license or authority of the respondent agency or contractor or recommend to the Minister (now Secretary) the cancellation thereof. 3. Contracts Freedom to Stipulate Vir-Jen Shipping v. NLRC, 115 SCRA 347 (1992); 125 SCRA 57 7 (1983) The form contracts approved by the National Seamen Board [now POEA] are designed to protect Filipino seamen not foreign shipowners who can take care of themselves. The standard forms embody the basic minimums which must be incorpor ated as parts of the employment contract. They are not collective bargaining agr eements or illimitable contracts which the parties cannot improve upon or modify in the course of the agreed period of time. Terms and conditions and other bene fits not provided by the minimum requirements are valid if the whole employment package is more beneficial to the worker than the minimum. But the stipulations should not contradict law, public policy and morals. Minimum Provisions for Cont ract 1. Guaranteed wages, for regular working hours and overtime pay for service s rendered beyond regular work hours in accordance with the standards establishe d by the Administration QuickTime and 2. Free transportation from point aof hire to site of TIFF (Uncompressed) decompressor are needed to see this picture. empl oyment and return 3. Free emergency medical and dental treatment and facilities 4. Just causes for the termination of the contract or of the services of the wor kers 5. Workmens compensation benefits and war hazard protection 6. Repatriation of workers remains and properties in case of death to the point of hire, or if t his is not Jurisdiction of the POEA Original and exclusive jurisdiction to hear and decide: a. all cases, which are administrative in character, involving or ar ising out of violations of rules and regulations relating to licensing and regis tration of recruitment and employment agencies or entities b. disciplinary actio n cases and other special cases, which are administrative in character, involvin g employers, principals, contracting partners and Filipino migrant workers Money Claims of OFWs A worker dismissed from overseas employment without just, valid or authorized cause as defined by law or contract, is entitled to: a. full reimb ursement of the placement fee with interest at 12% per annum PLUS b. his salary for unexpired portion of his employment contract OR salary for 3 months for ever y year of the unexpired term, WHICHEVER IS LESSER 3-months option available ONLY IF the employment contract is for at least one year. If the contract is shorter than that, the salary paid should be that for the unexpired portion. Jurisdicti on over Money Claims Labor Arbiters have jurisdiction over all monetary claims o f Overseas Filipino Workers arising from employer-employee relationship or by vi rtue of any law or contract involving Filipino workers for overseas deployment, including claims for actual, moral, exemplary and other forms of damages. Page 11 of 83 possible under the circumstances, the proper disposition thereof, upon prior arr angement with the workers next-of-kin and the nearest Embassy or Consulate throug h the Office of the Labor Attache 7. Assistance in the remittance of workers sala ries, allowances or allotments to his beneficiaries 8. Free and adequate lodging facilities or compensatory food allowance at prevailing cost of living standard s at the jobsite 4. Dispute Settlement Regulatory power DOLE Secretary shall hav e the power to restrict and regulate the recruitment and placement activities of all agencies within the coverage of this Title and is hereby authorized to issu e orders and promulgate rules and regulations to carry out the objectives and im plement the provisions of this Title.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 C. EMPLOYMENT OF ALIENS Requisites for Employment of Non-Resident Aliens 1. work ing permit from DOLE 2. certification that there is no available Filipino willin g and competent to do the job for the employer 3. alien must train at least two Filipino understudies for such undertaking 4. FOR ENTERPRISES REGISTERED IN PREF ERRED AREAS OF INVESTMENT employment permit issued upon recommendation of govern ment agency charged with the supervision of said registered enterprise Exemption from Permit 1. All members of Diplomatic Services and foreign government offici als accredited with the Phil. Government 2. Members of international organizatio ns with which the Phil. Government is a cooperating member (i.e. ADB, IRRI) 3. M issionaries actually engaged in missionary work 4. All aliens granted exemption by special laws and all those whose employment in the Phil. Have been determined by the Sec. of Labor to be beneficial to national interest. Duration of Permit Valid for 1 year from date of issuance, unless sooner revoked by the Secretary o f Labor Renewable upon showing of good cause Non-transferable Other Prohibitions Aliens shall not transfer to another job or change his employer without prior a pproval of the secretary of labor Non-resident alien shall not take up employmen t in violation of the provisions of the Code. D. HUMAN RESOURCES & MANPOWER DEVE LOPMENT QuickTime and a 1. Government Machinery TIFF (Uncompressed) decompressor are need ed to see this picture. Power and Functions of TESDA Responsible for formulating, continuing, coordinati ng, and fully integrating technical education and skills development policies, p lans and programs 2. Apprenticeship and Learnership Learners Apprentices Persons hired as Practical What trainees in semitraining on the skilled and other job i ndustrial Supplemented occupations by related Nontheoretical apprenticeable inst ruction May be learned Covered by a through practical written training on the ap prenticeship job in a relatively agreement with short period of an individual ti me employer or Shall not exceed entity 3 months Needs DOLE approval Shall not ex ceed 6 months No experienced Only in highlyWhen workers technical may be availab le industries hired Prevent Only in curtailment of apprenticeable employment occ upations opportunities Not to create unfair competition in labor costs and lower working standards List of learnable At least 14 trades provided years old by TE SDA Possesses vocational aptitude and capacity for tests Ability to comprehend A bility to follow oral and written instructions Any form of employment requiring beyond 3 mos. practical Page 12 of 83 Policy It is the policy of the State to provide relevant, accessible, high quali ty and efficient technical education and skills development in support of the de velopment of high-quality Filipino middle-level manpower responsive to and in ac cordance with Philippine development goals and priorities.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 training on the job supplemented by related theoretical instruction No list Requ isites for a Valid Apprenticeship 1. qualifications of apprentice are met 2. the apprentice earns not less than 75% of the prescribed minimum salary 3. apprenti ceship agreement duly executed and signed 4. apprenticeship program approved by the Sec. of Labor; otherwise, the apprentice shall be deemed as a regular employ ee 5. period of apprenticeship not exceed 6 months At the termination of the app renticeship, the employer is not required to continue the employment. Employer m ay not pay wage if the apprenticeship is a requirement for graduation required b y the School required by the Training Program Curriculum requisite for Board exa mination Venue of Apprenticeship Programs The plant, shop, premises of the emplo yer or firm concerned if the apprenticeship program is organized by an individua l employer or firm. The premises of one or several firms designated for the purp ose by the organizer of the program if such organizer is an association of emplo yers, civic groups and the like. DOLE training center or other public training i nstitutions with which the Bureau has made appropriate arrangements. Contents of Learnership Agreement 1. names and addresses of employer and learner 2. occupat ion to be learned and the duration of the training period which shall not exceed 3 months 3. wage of the learner which shall be at least 75% QuickTime and a of t he applicable minimum wage TIFF (Uncompressed) decompressor are needed to see th is picture. 4. commitment to employ the learner, if he so desires, as a regular employee upon completion of training A learner who has worked during the first t wo months shall be deemed a regular employee if training is terminated by the em ployer before the end of the stipulated period thorough no fault of the learner. V. WORKING CONDITIONS Coverage Book III of the Labor Code provides the condition s or standards of employment. These standards apply only if there exists EER. Ex cluded Employees 1. Government employees whether employed by the National Govern ment or any of its political subdivisions, including those employed in GOCCs 2. Management employees. If they meet ALL of the following conditions: i. Their pri mary duty consists of the management of the establishment in which they are empl oyed or of a department or subdivision thereof ii. They customarily and regularl y direct the work of two or more employees therein iii. They have authority to h ire or fire other employees of lower rank; or there suggestions and recommendati ons as to the hiring and firing and as to the promotion or any other change of s tatus of other employees are given particular weight 3. Officers or members of m anagerial staff if they perform the following duties and responsibilities i. Pri mary duty consists of performance of work directly related to management policie s of employer ii. Customarily and regularly exercise discretion and independent judgment iii. (a) Regularly and directly assist a proprietor or a managerial emp loyee; (b) Execute under general supervision work along specialized or technical lines requiring special training, experience or knowledge; (c) execute under ge neral supervision special assignments and tasks; and iv. who do not devote more than 20% of their hours worked in a workweek to activities which are not directl y and closely related to the performance of work in i-iii above. 4. domestic ser vants and persons in the personal service of another if i. they perform such ser vices in the employers home which are usually necessary or desirable for the main tenance and enjoyment thereof, or ii. minister to the personal comfort, convenie nce, or safety of the employer as well as members of the employers household Page 13 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 5. workers paid by results, including those who are paid on piece-work, takaw, p akyaw or task basis 6. non-agricultural field personnel if they regularly perfor m their duties away from the principal or branch office of place of business and whose actual hours of work in the field cannot be determined with reasonable ce rtainty. Managerial Employees refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff F ield Personnel non-agricultural employees who regularly perform their duties awa y from the principal place of business or branch office of the employer and whos e actual hours of work in the field cannot be determined with reasonable certain ty Mercidar Fishing Corp. v. NLRC, 297 SCRA 440 (1998) Fishermen are not field p ersonnel since throughout the duration of their work, they are under the effecti ve control and supervision of the employer. Autobus Transport Systems Inc. v. Ba utista, GR No. 156367, 16 May 2005) It is of judicial notice that along the rout es that are plied by bus companies, there are its inspectors assigned in strateg ic places, mandatory once-a-week car barn or shop day, drivers/conductors must b e at a specific place at a specific time, as they generally observe prompt depar ture and arrival from their point of origin to their point of destination. They are under the constant supervision while in the performance of this work. Thus, drivers/conductors are not field personnel. B. HOURS OF WORK Work hours shall no t exceed 8. Thus, part-time work, or a days work of less than 8 hours, not prohib ited. Work Day 24-hr period commencing from the time QuickTime an employee regula rly starts to and a work TIFF (Uncompressed) decompressor regardless of are need ed to see this picture. whether the work is broken or continuous Calendar Day 24 -hr. period commencing at 12 midnight and ending at 11:59 p.m. Compressed Work W eek (CWW) Resorted to by the employer to prevent serious losses due to causes be yond his control, such as when there is substantial slump in demand for his good s and services or when there is lack of raw materials. Instead of working 6 days a week, the employees will be regularly working for less than 6 days but each w orkday exceeds 8 hrs. For the hours exceeding 8 in a workday, the employees waiv e their OT pay because, in return, they will no longer incur transport and other expenses. Allowed on condition that it is freely agreed upon between the employ er and majority of the employees. Further, the arrangement should not diminish t he employees monthly or daily pay or their established employment benefits. Exten ded workday in CWW should not exceed 12 hrs. Work exceeding 12 hrs. in a day or 48 hrs. in a week should be considered OT. Should the work shift revert to 8 hrs ., the reversion shall not constitute a diminution of benefits. Hours of Work of Hospital and Clinic Personnel; Coverage 1. all hospitals and clinics situated i n cities or municipalities with a population of 1 million or more 2. all hospita ls and clinics with a bed capacity of at least 100 Hospitals and Clinics place d evoted primarily to maintenance and operation of facilities for the diagnosis, t reatment, and care of individuals suffering from illness, disease, injury or def ormity or in need of obstetrical or other medical and nursing care Regular Worki ng Hours and Days of Hospital and Clinic Personnel Not more than 8 hrs. in any o ne day and not more than 40 hrs. in any one week Not more than 5 days in a work week. The workweek may begin at any hour and on any day Overtime Work of Hospita l and Clinic Personnel May be scheduled to work for more than 5 days or 40 hrs. a week, provided employee is paid for overtime work Overtime: additional compens ation of regular wage + at least 30% thereof Considered as Compensable Hours Wor ked 1. All time during which an employee required to be on duty or to be at the employers premises or to be at a prescribed work place; and 2. All time during wh ich an employee suffered or permitted to work. 3. Rest periods of short duration during working hours. Page 14 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Principles in Determining Hours Worked 1. All hours are hours worked which the e mployee is required to give to his employer, regardless of whether or not such h ours are spent in productive labor or involve physical or mental exertion 2. An employee need not leave the premises of the workplace in order that his rest per iod shall not be counted, it being enough that he stops working, may rest comple tely and may leave his workplace 3. If the work performed was necessary or it be nefited the employer, or the employee could not abandon his work at the end of h is normal working hours because he had no replacement, all time spent or such wo rk shall be considered as hours worked, if the work was with the knowledge of hi s employer or immediate supervisor. 4. The time during which an employee is inac tive by reason of interruptions in his work beyond his control shall be consider ed working time either if a. the imminence of the resumption of work requires th e employee s presence at the place of work; or b. if the interval is too brief t o be utilized effectively and gainfully in the employee s own interest. Waiting Time Waiting time spent by an employee shall be considered as working time if 1. waiting is an integral part of his work or 2. the employee is required or engag ed by the employer to wait. Working while on call - an employee who is required to remain on call in the employer s premises or so close thereto that he cannot use the time effectively and gainfully for his own purpose. Travel Time Travel t hat is Travel Away All in Days from Home Work Normal travel from Time spent by T ravel that QuickTime and home to work an employee a keeps an TIFF (Uncompressed) decompressor are needed to see this picture. which is not work in travel as empl oyee time part of his away from principal home activity, like overnight travel f rom jobsite to jobsite during the workday GR: not Compensable Work time Travel F rom Home to Work compensable because it is a normal incident of employment Excep tions: 1. where employee made to work on an emergency call and travel is necessa ry in proceeding to the workplace 2. travel is done through a conveyance provide d by the employer 3. travel is done under the supervision and control of the emp loyer 4. travel is done under vexing and dangerous circumstances and counted as hours worked when it cuts across an employees workday because it substitutes for the hours the employee should have been in the office Univ. of Pangasinan Faculty Union v. Univ. of Pangasinan, 127 SCRA 691 (1984) Se mestral break of teachers is compensable hours worked for it is a form of interr uption beyond their control. Applies only for regular full-time teachers. Rada v . NLRC, 205 SCRA 69 (1992) The fact that he picks up employees at certain specif ied points in EDSA in going to the project site and drops them off at the same t ime on his way back from the field office going home to Marikina is not merely i ncidental to petitioners job as a driver. Said transportation arrangement had bee n adopted not so much for the convenience of the employees, but primarily for th e benefit of the employer. Since the assigned task of fetching and delivering em ployees is indispensable and consequently mandatory, then the time required of a nd used by petitioner in going from his residence to the field office and back s hould be paid as overtime work. Lectures, Meeting, Trainings, Programs Page 15 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 NOT considered working time if ALL the following conditions are met: 1. Attendan ce is outside of the employee s regular working hours 2. Attendance is in fact v oluntary 3. The employee does not perform any productive work during such attend ance. Meal and Rest Periods GR: not less than 1 hour time-off for regular meals non-compensable Except: meal period of not less than 20 mins. in the following c ases compensable hours worked: 1. Where the work is non-manual work in nature or does not involve strenuous physical exertion 2. Where the establishment regular ly operates not less than 16 hours a day 3. In case of actual or impending emerg encies or there is urgent work to be performed on machineries, equipment or inst allations to avoid serious loss which the employer would otherwise suffer 4. Whe re the work is necessary to prevent serious loss of perishable goods Rest period s or coffee breaks running from 5 to 20 mins. considered as compensable working time. To shorten meal time to less than 20 mins, is not allowed. If the so-calle d meal time is less than 20 mins., it becomes only a rest period. Sime Darby Pilip inas v. NLRC, 289 SCRA 86 (1998) The employer may change the meal break from 30 mins. fully paid to 60 mins. without pay. For a full one hour undisturbed lunch break, the employees can freely and effectively use this hour not only for eatin g but also for their rest and comfort. Since the employees are no longer require d to work during this 1-hour lunch break, there is no more need for them to be c ompensated for this period. Overtime Pay (OT) work exceeding eight hours QuickTi me and a within the workers TIFF (Uncompressed) decompressor 24-hour workday. Work within the are needed to see this picture. Eees shift is not overtime. OT on a Re gular Day: regular wage + at least 25% thereof OT on a Holiday/Eees Rest Day: rate of 1st 8 hrs. on holiday/rest day + at least 30% thereof. Since the OT work is considered hourly, the pay rate is computed also on per hour basis. The daily wa ge is divided by 8 to get the hourly base rate. If employee is paid on a monthly salary basis, the daily rate is obtained by the following formula: Daily Rate = monthly salary x 12_____ Total no of days considered paid in a year Permissible for the employer to stipulate that the employees monthly salary const itutes payment for all the days of the month, including rest days and holidays, where the employees monthly salary, when converted by the increased divisor into its daily equivalent, would still meet minimum wage. Regular Wage includes the c ash wage only, without deduction on account of facilities provided by the employ er Conditions to be entitled to OT pay 1. Actual rendition of OT work 2. Submiss ion of sufficient proof that said work was actually performed 3. OT work is with the knowledge and consent of the employer Compulsory OT Work (provided employee paid the additional compensation required) 1. Country at war/National or Local Emergency th 2. Completion of work started before the 8 hour and is necessary to prevent serious obstruction or prejudice to the business 3. Urgent work to be p erformed on Machines to avoid serious loss or damage to employer 4. Necessary to Prevent loss of life/property or Imminent danger to public safety 5. Necessary to prevent loss or damage to perishable goods 6. Necessary to avail of favorable weather or environmental condition Undertime NOT Offset by OT an employees regul ar pay rate is lower than the OT rate. Offsetting the undertime hours against th e OT hours would result in undue deprivation of the employees extra pay for OT wo rk. Right to OT pay cannot be waived. But when the alleged waiver of OT pay is i n consideration of benefits and privileges which may even exceed the OT pay, the waiver may be permitted. Page 16 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Night Shift Differential (NSD) every employee shall be paid a night shift differ ential of not less than 10% of his regular wage for each hour of work performed between ten oclock in the evening and six oclock in the morning. NSD = (10% x regu lar wage/hr.) x no. of hrs. of work between 10 pm 6 am If work done between 10 p m and 6 am is OT work, the NSD should be based on the OT rate. Employees NOT Cov ered by NSD 1. Those of the government and any of its political subdivisions, in cluding government-owned and/or controlled corporations 2. Those of retail and s ervice establishments regularly employing not more than 5 workers 3. Domestic he lpers and persons in the personal service of another 4. Managerial employees 5. Field personnel and other employees whose time and performance is unsupervised b y the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irre spective of the time consumed in the performance thereof C. REST PERIODS AND HOL IDAYS Weekly Rest Periods applies to all employers whether operating for profit or not, including public utilities operated by private persons Business on Sunda ys/Holidays All establishments and enterprises may operate or open for business on Sundays and holidays provided that the employees are given the weekly rest da y and the benefits as provided. Weekly Rest Day Every employer shall give his em ployees a rest period of not less than 24 consecutive hrs. after every 6 consecu tive normal work days. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. the desired effectivity of the initial rest day so preferred. Where, however, th e choice of the employee as to his rest day based on religious grounds will inev itably result in serious prejudice or obstruction to the operations of the under taking and the employer cannot normally be expected to resort to other remedial measures, the employer may so schedule the weekly rest day of his choice for at least 2 days in a month. Schedule of Rest Day a. Where the weekly rest is given to all employees simultaneously the employer shall make known such rest period b y means of a written notice posted conspicuously in the work place at least one week before it becomes effective b. Where the rest period is not granted to all employees simultaneously and collectively the employer shall make known to the e mployees their respective schedules of weekly rest through written notices poste d conspicuously in the work place at least one week before they become effective Work on Rest Day Authorized (UAAP NAF) 1. In case of urgent work to be performe d on machineries, equipment or installations to avoid serious loss which the emp loyer would otherwise suffer 2. In case of actual or impending emergencies cause d by serious accident, fire, flood, typhoon, earthquake, epidemic or other disas ter or calamity, to prevent loss of life or property, or in cases of force majeu re or imminent danger to public safety 3. In the event of abnormal pressure of w ork due to special circumstances, where the employer cannot ordinarily be expect ed to resort to other measures 4. To prevent serious loss of perishable goods 5. Where the nature of the work is such that the employees have to work continuous ly for 7 days in a week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar cases 6. Under other analogous or simi lar circumstances 7. When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent ther eon. Other than the above circumstances, no employee shall be required against h is will to work on his scheduled rest day. Page 17 of 83 Preference of employee The preference of the employee as to his weekly day of re st shall be respected by the employer if the same is based on religious grounds. The employee shall make known his preference to the employer in writing at leas t 7 days before

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 When an employee volunteers to work on his rest day under other circumstances, h e shall express such desire in writing, subject to payment of additional compens ation. An employee shall be entitled additional compensation for work performed on a Sunday only when it is his established rest day. Holidays with Pay; Applies to ALL employees. EXCEPT: 1. Those of the government and any of the political s ubdivision, including government-owned and controlled corporation 2. Those of re tail and service establishments regularly employing less than ten 10 workers 3. Domestic helpers and persons in the personal service of another 4. Managerial em ployees 5. Field personnel and other employees whose time and performance is uns upervised by the employer including those who are engaged on task or contract ba sis, purely commission basis, or those who are paid a fixed amount for performin g work irrespective of the time consumed in the performance thereof. Absences Em ployee on Leave of absence with pay entitled to the benefit provided herein Empl oyee on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such re gular holiday Where the day immediately preceding the holiday is a non-working d ay in the establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entit led to the holiday pay if he worked on the day immediately preceding the non-wor king day or rest day Temporary or Periodic Shutdown and Temporary Cessation of W ork (i.e. yearly inventory, repair or cleaning of machineries or equipment, etc) regular holidays falling within this period compensable QuickTime and a TIFF (Uncompressed) decompressor Temporary or Periodic Shutdown a nd Temporary are needed to see this picture. Cessation of Work Due to Business R everses employer may not pay the regular holidays during this period vacations. Paid for the regular holidays during Christmas vacation 2. Employee p aid by results (payment on piecework) holiday pay shall not be less than his ave rage daily earnings for the last 7 actual working days preceding the regular hol iday; Provided, However, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate 3. Seasonal workers may not be paid the r equired holiday pay during off-season when they are not at work 4. Workers witho ut regular working days entitled to the benefits Double Holiday an employee who is entitled to holiday pay should receive at least 200% of his basic wage even i f he did not work on that day, provided, he was present or on leave wit pay on t he preceding work day. If he worked, he is entitled to 300% of his basic wage. H oliday-Sunday a legal holiday falling on a Sunday creates no legal obligation fo r the employer to pay extra, aside from the usual holiday pay, to its monthly-pa id employees Successive Regular Holidays Where there are 2 successive regular ho lidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the f irst holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday. To be entitled to 2 successive holida ys, employee must: (1) st be present on the day immediately preceding the 1 holi day; or (2) be on leave wit pay. Holidays 1. New Years Day 2. Maundy Thursday 3. Good Friday 4. Araw ng Kagitingan 5. Labor Day 6. Independence Day 7. Natl Heroes Day 8. Bonifacio Day 9. Eidul Fitr 10. Christmas Day 11. Rizal Day Jan. 1 Movable Date Movable Date April 9 May 1 June 12 Last Sun. of Aug. Nov. 30 Movable Date Dec. 25 Dec. 30 Holiday Pay of Certain Employees 1. Private School teachers including faculty me mbers of college and universities may not be paid for the regular holidays durin g semestral Special Days 1. Special Non-Working Days 2. Special Public Holidays 3. Special N

ational Holiday Page 18 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 4. All Saints Day 5. Last Day of the Yr 6. Ninoy Aquino Day Nov. 1 Dec. 31 August 21 D. SERVICE CHARGE & SERVICE INCENTIVE LEAVE Service Incentive Leave (SIL) ev ery employee who has rendered at least 1 year of service shall be entitled to a yearly service incentive leave of 5 days with pay Commutable to its money equiva lent if not used or exhausted at the end of the year. At least 1 year service se rvice for not less than 12 months, whether continuous or broken reckoned from th e date the employee started working, including authorized absences and paid regu lar holidays unless the working days in the establishment as a matter of practic e or policy, or that provided in the employment contract is less than 12 months, in which case said period shall be considered as one year Employees NOT Covered 1. Those of the government and any of its political subdivisions, including gov ernment-owned and controlled corporations 2. Domestic helpers and persons in the personal service of another 3. Managerial employees 4. Field personnel and othe r employees whose performance is unsupervised by the employer including those wh o are engaged on task or contract basis, purely commission basis, or those who a re paid a fixed amount for performing work irrespective of the time consumed in the performance thereof 5. Those who are already enjoying the benefit herein pro vided 6. Those enjoying vacation leave with pay of at least five days 7. Those e mployed in establishments regularly employing less than ten employees Service Ch arges apply only to establishments collecting service charges such as hotels, re staurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities o perating primarily as private subsidiaries of the Government Employees Covered a ll employees of covered employers, regardless of their positions, designations o r employment status, and irrespective of the method by which their wages are pai d EXCEPT to managerial employees Muslim Holidays while the regular holidays are observed in the whole country, th e Muslim holidays, except Eidul Fitr, are observed only in specified areas. Musl im employees working outside of the specified areas shall be excused from report ing for work during the observance of the Muslim holidays as recognized by law, without diminution of salary or wages during the period. Rules on Payment of Hol iday Pay: 1. REGULAR HOLIDAYS a. If it is employees regular work day: - Unworked: 100% - Worked: st 200% 1 8 hrs excess of 8 hrs. + 30% of hourly rate on said da y b. If it is employeees rest day: - Unworked: 100% - Worked: - + 30% of 200% 1st 8 hrs. excess of 8 hrs. + 30% of hourly rate on said day 2. SPECIAL DAYS a. Unw orked no pay unless there is a favorable company policy, practice or CBA grantin g payment of wages on special days even if unworked b. Worked st 1 8 hrs. + 30% of the daily rate of 100% excess of 8 hrs. + 30% of hourly rate on said da y c. Falling on employees rest daya and if worked QuickTime and 8 are needed to see decompressor hrs. 1st TIFF (Uncompressed) this picture. + 50% of the daily rate of 100% excess of 8 hrs. + 30% of hourly rate on said day 3. SPECIAL WORKING HOL IDAYS only basic rate. Page 19 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Distribution 85% distributed equally among the covered employees 15% for the dis position by management to answer for losses and breakages and distribution to ma nagerial employees at the discretion of the management in the latter case distri buted and paid to the employees not less than once every 2 weeks or twice a mont h at intervals not exceeding 16 days Supervisors share in the 15%. LC speaks of m anagement, and not managerial employees. E. OTHERS Vacation Leave (VL) / Sick Leave (SL) not required by law and depends on voluntary employer policy or collective bargaining. Solo Parent Leave (RA 8972: Solo Parents Welfare Act of 2000) a pare ntal leave of not more than 7 working days every years shall be granted to any s olo parent employee who has rendered service of at least 1 year Solo Parent woma n who gives birth as a result of rape or crimes against chastity, a widow or wid ower, a spouse separated legally or de facto for at least one year, and so forth . The claimant parent has to show that he/she is left alone with the responsibil ity of parenthood. Leave under RA 9262 (Anti-Violence Against Women and their Ch ildren Act of 2004) allows the victim of violence, which may be physical, sexual , or psychological, to apply for the issuance of a protection order. If such vic tim is an employee, she is entitled to a paid leave of up to 10 days in addition to other paid leaves under the Labor Code, other laws and company policies. The employee has to submit a certification from the Punong Barangay or Kagawad or p rosecutor or Clerk of Court that an action under RA 9262 has been filed and is p ending. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. growing and harvesting of any agricultural and horticultural commodities, the ra ising of livestock or poultry, and any practices performed by a farmer on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing or processing of sugar, coconuts, abaca, tobacco, pine apples or other farm products Wage paid to any employee shall mean the: 1. remun eration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered; and includes 2. the fair a nd reasonable value, as determined by the DOLE Secretary, of board, lodging, or other facilities customarily furnished by the employer to the employee. "Fair an d reasonable value" shall not include any profit to the employer, or to any pers on affiliated with the employer. Fair Wage for Fair Work; No Work No Pay Princip le if there is no work performed by the employee, there can be no wage or pay un less the laborer was able, willing, and ready to work but was prevented by manag ement or was illegally locked out, suspended or dismissed. But where the failure of employees to work was not due to the employers fault, the burden of economic loss suffered by the employees. Should not be shifted to the employer. Each part y must bear his own loss. Equal Pay for Equal Work persons who work with substan tially equal qualifications, skill, effort and responsibility, under similar con ditions, should be paid similar salaries. Facilities articles or services for th e benefit of the employee or his family but shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary t o the conduct of the employers business. May be deducted from the employees wages . Acceptance of Facilities in order that the cost of facilities furnished by the employer may be charged against an employee, the employees acceptance of such fa cilities MUST BE VOLUNTARY. Mabeza v. NLRC, 271 SCRA 670 (1997) Requirements for deducting value of facilities: Page 20 of 83 VI. WAGES A. CONCEPT AND DEFINITION Agriculture includes farming in all its bran ches and, among other things, includes cultivation and tillage of soil, dairying , the production, cultivation,

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 1. Proof must be shown that such facilities are customarily furnished by the tra de 2. The provision of deductible facilities must be voluntarily accepted in wri ting by the employee 3. The facilities must be charged at fair and reasonable va lue Facilities items of expense necessary for the laborers and his familys existen ce and subsistence Supplements extra remuneration or special privileges or benef its given to or received by the employees over and above their ordinary earnings or wages. independent of the wage not wage deductible therein, with a salary of not less than the statutory or established minimum wage, shall be presumed to b e paid for all the days in the month whether worked or not. The monthly min. wag e shall not be less than the statutory minimum wage multiplied by 365 days divid ed by 12. Agricultural Rate farm work from land preparation to harvesting Indust rial Rate manufacturing or processing of farm products Non-Diminution Rule GR: N othing in the Labor Code shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgatio n of the Labor Code. Benefits being given to employees shall not be taken back o r reduced unilaterally by the employer because the benefit has become part of th e employment contract, written or unwritten. Exception: To correct an error, oth erwise, if the error is left uncorrected for a reasonable period of time, it rip ens into a company policy and employees can demand for it as a matter of right. When Non-Diminution Rule Applicable The rule is applicable if it is shown that t he grant of the benefit is 1. based on an express policy 2. has ripened into pra ctice over a long period of time; and the practice is consistent and deliberate, and is not due to an error in the construction/application of a doubtful or dif ficult question of law Bonus a benefit which is contingent or conditional; its d emandability depends on certain pre-conditions. It is an amount granted voluntar ily to an employee for his/her industry and loyalty which contributed to the suc cess and realization of profits of the employers business. It is not a demandable and enforceable obligation unless it was promised to be given without any condi tions imposed for its payment in which case it is deemed part of the wage. Payme nt by Results regulated by DOLE Secretary to ensure the payment of fair and reas onable wage rates, preferably through time and motion studies or in consultation with representatives of workers and part of the wage deductible from the wage Employees NOT Covered by Provisions on Wages 1. farm tenancy / leasehold 2. dome stic service 3. persons working in their respective homes in needle work or in a ny cottage industry duly registered in accordance with law 4. Barangay micro bus iness enterprise (BMBE) under RA 9178, the BMBE Law. BMBE any business entity or enterprise engaged in the production, processing, or manufacturing of products or commodities, including agroprocessing, trading and services, whose total asse ts including those arising from loans but exclusive of the land on which the par ticular business entitys office, plant and equipment are situated, shall not be m ore than P3M B. WAGE-FIXING Regional Minimum Wages the minimum wage rates for ag ricultural and non-agricultural employees and workers in each and every region o f the country shall be those prescribed by the Regional Tripartite Wages and Pro ductivity Boards Minimum Wage lowest wage rate fixed by law that QuickTime and a an employer can TIFF (Uncompressed) decompressor payment of pay his employee; ar e needed to see this picture. minimum wages is not dependent on the employers abi lity to pay Daily-Paid Employee paid only for days he actually worked Monthly-Pa id Employee employees paid by the month, irrespective of the number of working d ays Page 21 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 employers organizations. Includes pakyaw, piece work and other noontime work. Two Categories of Piece-Rate Employees 1. Employees paid piece rates which are pres cribed in Piece Rate orders issued by DOLE wages are determined by multiplying t he number of pieces produced by the pay rate per piece. 2. Employees paid output rates which are prescribed by the employer and are not yet approved by the DOLE to determine wage, the number of pieces produces is multiplied by the rate per piece as determined by the employer. If the result is equal to or greater than t he applicable legal daily rate in proportion to the number of hours worked, the worker receives such increased amount. If the amount is lower, the employer must make up the difference. Benefits Payable to Piece-Rate Workers (HANS MOTO) 1. H oliday Pay 2. Applicable Statutory Minimum Daily Rate 3. Night Differential Pay 4. Service Incentive Leave 5. Meal and Rest Periods 6. Overtime and Premium Pay 7. Thirteenth Month Pay 8. Other Benefits Basic Wage means all remuneration or e arnings paid by an employer to a worker for services rendered on normal working days and hours but does not include cost-of-living allowances, profit sharing pa yments, premium payments, 13th month pay or other monetary benefits which are no t considered as part of or integrated into the regular salary of the workers Min imum Wage lowest wage rate fixed by law than an employer can pay his employees W ho Sets Minimum Wage 1. Regional Tripartite Wages and Productivity Board 2. Cong ress National Wages and (Uncompressed) decompressor TIFF Productivity Commission are needed to see this picture. 1. Prescribes rules and guidelines for the dete rmination of appropriate minimum wage and productivity measures at the regional, provincial, or industry levels 2. Reviews regional wage levels set by the Regio nal Tripartite Wages and Productivity Boards to determine if these are in accord ance with prescribed guidelines and national development plans QuickTime and a Regional Tripartite Wages and Productivity Boards 1. Determine and fix minimum w age rates applicable in their regions, provinces or industries therein and to is sue the corresponding wage orders, subject to guidelines issued by the National Wages and Productivity Commission. 2. Develop plans, programs and projects relat ive to wages, incomes and productivity improvement for their respective regions 3. Receive, process and act on applications for exemption from prescribed wage r ates as may be provided by law or any Wage Order 4. Other functions Composition of Each Regional Board 1. Regional Director of DOLE 2. Regional Director of NEDA 3. Regional Director of DTI 4. 2 members from Employer sector 5. 2 members from Employee sector Wage Order an order issued by the Regional Board whenever the c onditions in the region so warrant after studying and investigating and studying all pertinent facts and based on the standards and criteria prescribed by the L abor Code. A wage order adjusts the minimum level but not the levels above the m inimum. It does not mandate across the board salary increase. Employees NOT Cove red 1. Household or domestic helpers, including family drivers and workers in th e personal service of another 2. Workers and employees in retail/service establi shments regularly employing not more than 10 workers, when exempted from complia nce, for a period fixed by the Commission/Boards 3. Workers and employees in new business enterprises outside the National Capital Region and export processing zones for a period of not more than two or three years, as the case may be, from the start of operations when exempted Effectivity of Wage Orders takes effect a fter 15 days from its complete publication in at least one newspaper of general circulation in the region Public Hearings and Consultations Mandatory notice mus t be given to employees and employers Page 22 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 groups, provincial, city and municipal officials and other interested parties. A wage order issued without the required public consultation and newspaper public ation is null and void. Frequency a wage order issued by the Board may not be di sturbed for a period of 12 months from its effectivity and no petition for wage increase shall be entertained during said period EXCEPT when Congress itself iss ues a law increasing wages. Standards/Criteria for Minimum Wage Fixing must be e conomically feasible to maintain the minimum standards of living necessary for t he health, efficiency and general well-being of the employees within the framewo rk of the national economic and social development program. Factors to Consider: 1. The demand for living wages 2. Wage adjustment vis--vis the consumer price in dex 3. The cost of living and changes or increases 4. The needs of workers and t heir families 5. The need to induce industries to invest in the countryside 6. I mprovements in standards of living 7. The prevailing wage levels 8. Fair return of the capital invested and capacity to pay of employers 9. Effects on employmen t generation and family income 10. The equitable distribution of income and weal th along the imperatives of economic and social development Wage Distortion a si tuation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary ra tes between and among employee groups in an establishment as to effectively obli terate the distinctions embodied in such wage structure based on skills, length of service QuickTime and a or other logical basis (Uncompressed) decompressor Sim ply, if the of differentiation. TIFF are needed to see this picture. pay advanta ge of a position over another is removed or significantly reduced by a pay adjus tment required by a wage order, such pay advantage should be restored. Correctio n of Wage Distortion A. ORGANIZED ESTABLISHMENT 1. Employer and union shall nego tiate to correct the distortion 2. Any dispute arising should be resolved throug h grievance procedure under CBA 3. If dispute remains unresolved, through volunt ary arbitration B. UNORGANIZED ESTABLISHMENT 1. The employer and employees shall endeavor to correct the distortion 2. Any dispute shall be settled through Nati onal Conciliation and Mediation Board (NCMB) 3. If remains unresolved after 10 d ays of conciliation, it shall be referred to the NLRC Amount of Distortion Adjus tment the restoration of the previous pay advantage is the aim but not necessari ly to the last peso. Restoration of appreciable differential, a significant pay gap, should suffice as correction. Suggested Formula to Correct a Salary Distort ion Minimum Wage = % x Prescribed Increase Actual Salary Prubankers Association v. Prudential Bank and Trust Co., 302 SCRA 74 (1999) Wage distortion involves co mparison of jobs located in the same region. Examination of alleged salary disto rtion is limited to jobs or positions in the same employer in the same region; t hus, the comparison of salaries has to be intra-region, not inter-region. Bankar d Employees Union WATU v. NLRC, GR No. 140689, 17 February 2004 The distortion t hat should be rectified refers to distortion arising from compliance with a gove rnment wage order. It does not refer to distortion caused by salary revisions vo luntarily initiated by the employer unless such a duty exists because of a CBA s tipulation or company practice. C. PAYMENT OF WAGES Manner of wage payment wages shall be paid in legal tender and the use of tokens, promissory notes, vouchers , coupons, or any other form alleged to represent legal tender is absolutely pro hibited even when expressly requested by the employee. Payment by check Payment of wages by bank checks, postal checks or money orders is allowed where Page 23 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 1. such manner of wage payment is customary on the date of the effectivity of th e Labor Code, 2. where it is so stipulated in a collective agreement, or 3. wher e all of the following conditions are met: a. There is a bank or other facility for encashment within a radius of 1 kilometer from the workplace b. The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement c. The employees are given reasonabl e time during banking hours to withdraw their wages from the bank which time sha ll be considered as compensable hours worked if done during working hours d. The payment by check is with the written consent of the employees concerned if ther e is no collective agreement authorizing the payment of wages by bank checks Tim e of payment GR: 1. not less than once every 2 weeks; or 2. twice a month at int ervals not exceeding 16 days Except: 1. In case payment cannot be made with such regularity due to force majeure or circumstances beyond the employer s control the employer shall pay the wages immediately after such force majeure or circums tances have ceased. 2. In case of payment of wages by results involving work whi ch cannot be finished in 2 weeks, payment shall be made at intervals not exceedi ng sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work. Place of payment the plac e of payment shall be at or near the place of undertaking. Payment in a place ot her than the work place shall be permissible only under the following circumstan ces: 1. When payment cannot be effected at or near the place of work by reason o f the deterioration of QuickTime and peace and order(Uncompressed) decompressorby reason of conditions, aor TIFF are needed to see this picture. actual or impend ing emergencies caused by fire, flood, epidemic or other calamity rendering paym ent thereat impossible 2. When the employer provides free transportation to the employees back and forth 3. Under any other analogous circumstances; Provided, T hat the time spent by the employees in collecting their wages shall be considere d as compensable hours worked Prohibited Place of Payment bar, night or day club , drinking establishment, massage clinic, dance hall, or other similar places or in places where games are played with stakes of money or things representing mo ney except in the case of persons employed in said places Payment through Banks; Requisites 1. There must be a written permission of the majority of the employe es concerned in an establishment 2. The establishment must have 25 or more emplo yees 3. The establishment must be located within 1 km. radius to the bank. Payme nt through ATM allowed Direct Payment of Wages GR: paid directly to workers to w hom they are due Exceptions: 1. Payment Through Another Person a. In case of for ce majeure rendering such payment impossible provided such person is under writt en authority given by the worker for the purpose b. When authorized under existi ng law including: i. payments for the insurance premiums of the employee ii. uni on dues where the right to check-off has been recognized by the employer in acco rdance with a collective agreement iii. authorized in writing by the individual employees concerned 2. Payment Through Heirs of Worker in case the worker has di ed, employer may pay wages of the deceased to the heirs of the latter without ne cessity of intestate proceedings Procedure: 1. When the heirs are of age, they s hall execute an affidavit attesting to their relationship to the deceased and th e fact that they are his heirs to the exclusion of all other persons. 2. In case any of the heirs is a minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. 3. Affidavit shall be presented to the empl oyer who shall make payment through the DOLE Sec. or his representative 4. Payme nt of wage shall absolve the employer of any other liability with respect to the amount paid. 3. Payment through Member of Workers Family where the employer is a uthorized in writing by the Page 24 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 employee to pay his wages to a member of his family Non-interference in Disposal of Wages No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages and no employer shall in any manner oblige any of his employees to patronize any store or avail of the services offered by any person. Wage Deductions GR: NOT allowed Except: 1. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense th e employer for the amount paid by him as premium on the insurance 2. For union d ues, in cases where the right of the worker or his union to check-off has been r ecognized by the employer or authorized in writing by the individual worker conc erned 3. In cases where the employer is authorized by law or regulations issued by the DOLE Secretary Other Allowable Deductions 1. In cases where employee inde bted to employer, where such indebtedness has become due and demandable 2. In co urt awards, wages may be the subject of execution or attachment, but only for de bts incurred for food, shelter, clothing, and medical attendance 3. Withholding Tax 4. Salary deductions of a legally established cooperative 5. Deductions for payment to 3rd persons, upon written authorization of the employee 6. Union dues 7. Agency fee 8. Deductions for value of meals and other facilities 9. Deductio ns for loss or damage 10. SSS, Medicare, Pag-IBIG premiums Deductions for Loss o r Damage GR: No employer shall require his worker to make deposits for the reimb ursement of loss of or damage QuickTime and a TIFF (Uncompressed) decompressor to material, equipment, or see this picture. tools supplied by the are needed to e mployer. Except: When the trade, occupation or business of the employer recogniz es or considers the practice of making deductions or requiring deposits necessar y or desirable. Requisites for Valid Deduction for Loss/Damage 1. The employee c oncerned is clearly shown to be responsible for the loss or damage 2. The employ ee is given reasonable opportunity to show cause why deduction should not be mad e 3. The amount of such deduction is fair and reasonable and shall not exceed th e actual loss or damage 4. The deduction from the wages of the employee does not exceed 20% of the employee s wages in a week Prohibited / Unlawful Acts 1. With hold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoev er without the workers consent. 2. Deduction from the wages of any employee for t he benefit of the employer or his representative or intermediary as consideratio n of a promise of employment or retention in employment. 3. Refuse to pay or red uce the wages and benefits, discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Tit le or has testified or is about to testify in such proceedings. 4. Make any stat ement, report, or record filed or kept pursuant to the provisions of this Code k nowing such statement, report or record to be false in any material respect. D. LIABILITY FOR WAGES Worker Preference in Case of Employers Bankruptcy workers sha ll enjoy first preference as regards their wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and monetar y claims shall be paid in full before claims of the government and other credito rs may be paid. A declaration of bankruptcy or a judicial liquidation must take place before the workers preference may be enforced. Establishes a preference of credit and NOT a lien. Attorneys Fees 1. In case of unlawful withholding of wages , the culpable party may be assessed attorneys fees equivalent to ten percent of the amount of wages recovered. 2. It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wag es, attorneys Page 25 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 fees which exceed ten percent of the amount of wages recovered. and during worki ng hours, provided they can perform their duties in this position without detrim ent to efficiency 2. To establish separate toilet rooms and lavatories for men a nd women and provide at least a dressing room for women 3. To establish a nurser y in a workplace for the benefit of the women employees therein 4. To determine appropriate minimum age and other standards for retirement or termination in spe cial occupations such as those of flight attendants and the like Maternity Leave (under RA 1161 SSS Law) A female member, who need not be legally married, who h as paid for at least 3 monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily ma ternity benefit equivalent to 100% of her average daily salary credit for o 60 d ays normal delivery o 78 days caesarian delivery Benefits shall be paid only for the FIRST 4 deliveries or miscarriages Maternity benefits, like other benefits granted by the SSS, are granted in lieu of wages and therefore, may not be inclu ded in computing the employees 13th month pay for the calendar year The employer shall advance the payment subject to reimbursement by the SSS. It is not necessa ry that the woman be impregnated by her legitimate husband. It is immaterial who the father is. Every pregnant woman in the private sector, whether married or u nmarried, is entitled to the maternity leave benefits. Paternity Leave (under RA 8187 Paternity Leave Act of 1996) Grants 7 working days of paternity leave with full pay to married male employees in the private and public sectors. (Sec. 1(a ), RA 8187 IRR) Conditions to entitlement: a. The claimant, a married male emplo yee, is employed at the time of delivery of his child b. He is cohabiting with h is spouse at the time she gives birth or suffers a miscarriage c. He has applied for paternity leave d. His wife has given birth or suffered a miscarriage Wife lawful wife; woman legally married to male employee concerned Family Planning Se rvices; Incentives for Family Planning employers who habitually employ more Page 26 of 83 VII. WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES A. WOMEN Night Work Proh ibition no woman regardless of age shall be employed or permitted or suffered to work, with or without compensation in any: 1. In any industrial undertaking or branch thereof between 10 pm 6 am of the following day; or 2. In any commercial or non-industrial undertaking or branch thereof, other than agricultural - betwe en 12 mn 6 am of the following day; or 3. In any agricultural undertaking at nig httime unless she is given a period of rest of not less than nine (9) consecutiv e hours. Exceptions: Prohibitions DO NOT APPLY 1. In cases of actual or impendin g emergencies caused by serious accident, fire, flood, typhoon, earthquake, epid emic or other disasters or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety; 2. In case of urgent work to be performed on machineries, equipment or installation, to avoid seriou s loss which the employer would otherwise suffer; 3. Where the work is necessary to prevent serious loss of perishable goods; 4. Where the woman employee holds a responsible position of managerial or technical nature, or where the woman emp loyee has been engaged to provide health and welfare services; 5. Where the natu re of the work requires the manual skill and dexterity of women workers and the same cannot be performed with equal efficiency by male workers; 6. Where the wom en employees are immediate members of TIFF (Uncompressed) decompressor the Quick Time and a operating the family are needed to see this picture. establishment or undertaking; and 7. Under other analogous cases exempted by the Secretary of Lab or and Employment in appropriate regulations. Facilities for Women The DOLE Secr etary may require employers to: 1. Provide seats proper for women and permit the m to use such seats when they are free from work

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 than 200 workers in any locality shall provide free family-planning services to their employees and their spouses which shall include but not limited to, the ap plication or use of contraceptives Discrimination Prohibited unlawful for any em ployer to discriminate against any woman employee with respect to terms and cond itions of employment solely on account of her sex Acts of Discrimination 1. Paym ent of a lesser compensation, including wage, salary or other form of remunerati on and fringe benefits, to a female employees as against a male employee, for wo rk of equal value 2. Favoring a male employee over a female employee with respec t to promotion, training opportunities, study and scholarship grants solely on a ccount of their sexes Person guilty of committing these acts are criminally liab le under Arts. 288-289 of the Labor Code That the institution of any criminal ac tion under this provision shall not bar the aggrieved employee from filing an en tirely separate and distinct action for money claims, which may include claims f or damages and other affirmative reliefs. The actions hereby authorized shall pr oceed independently of each other. Stipulation Against Marriage It shall be unla wful for the employer to: 1. require as a condition of employment or continuatio n of employment that a woman employee shall not get married 2. to stipulate expr essly or tacitly that upon getting married, a woman employee shall be deemed res igned or separated 3. to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage PT&T Co. v. NLRC, 27 2 SCRA 596 (1997) A woman worker may not be dismissed on the ground of dishonest y forQuickTime and a having written single on decompressor the space for civilTIFF (Uncompressed)the application sheet, status on this picture. are needed to see c ontrary to the fact that she was married. Prohibited Acts It is unlawful for any employer: 1. To discharge any woman employed by him for the purpose of preventi ng such woman from enjoying the maternity leave, facilities and other benefits p rovided under the Code 2. To discharge such woman employee on account of her pre gnancy, or while on leave or in confinement due to her pregnancy 3. To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant 4. To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under th e Code 5. To require as a condition for a continuation of employment that a woma n employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to a ctually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage Classification of Certain Women Workers Any wo man who is permitted or suffered to work, with or without compensation, in any n ight club, cocktail lounge, massage clinic, bar or similar establishments under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considere d as an employee of such establishment for purposes of labor and social legislat ion. B. MINORS Below 15 Not employed EXCEPT: 1. when the child works directly un der the sole responsibility of his/her parents/legal guardian who employs only m embers of his/her family under the ff conditions a. employment does not endanger the childs life, safety, health and morals b. employment does not impair the chi lds normal development; and c. the parent/legal guardian provides the child with primary/secondary education 2. when the childs employment or participation in pub lic entertainment or information through cinema, theater, radio or television is essential, provided that: Page 27 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 a. employment does not involve advertisements or commercials promoting alcoholic beverages, intoxicating drinks, tobacco and its by-products or exhibiting viole nce b. there is a written contract approved by the DOLE, if possible c. the cond itions prescribed for the employment of minors in No. 1 are met d. the following requirements are complied with: i. employer shall ensure protection, health, mo rals, and normal development of the child ii. employer shall institute measures to prevent childs exploitation / discrimination taking into account the system an d level of remuneration, duration, and arrangement of working time iii. employer shall formulate and implement a continuing program for training and skills acqu isition of the child, subject to approval and supervision of competent authoriti es (as amended by RA 9231) ALLOWED ONLY in: nonhazardous or non-deleterious unde rtakings No prohibition d. Exposed to or use of heavy power-driven machinery or equipment e. Workers use or are exposed to power-driven tools C. HOUSEHELPERS Do mestic or Household Service services in the employers home which is which is usua lly necessary or desirable for the maintenance and enjoyment thereof and include s ministering to the personal comfort and convenience of the members of the empl oyers household, including services of family drivers. Rights of Househelpers 1. Not to be assigned to non-household work 2. Reasonable compensation (minimum cas h wage) 3. Lodging, food and medical attendance 4. If under 18 years, an opportu nity for elementary education cost of which shall be part of househelpers compens ation 5. Contract for household service shall NOT EXCEED 2 years renewable from year to year 6. Just and humane treatment 7. Right not to be required to work fo r more than 10 hrs. a day if the househelper agrees to work overtime and there i s additional compensation, the same is permissible 8. Right to 4 days vacation e ach month with pay if the helper does not ask for the vacation, the number of va cation days cannot be accumulated, he is only entitled only to its monetary equi valent. 9. Funeral expenses must be paid by the employer if the househelper has no relatives with sufficient means in the place where the head of the family liv es 10. Termination only for just cause 11. Indemnity for unjust termination of s ervice 12. Employment certification as to nature and duration of service and eff iciency and conduct of the househelper Indemnity for Unjust Termination of Servi ce 1. If the period for household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term except for a just cause. 2. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned + that for 15 days by way of indemnity 3 . If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him/her not exceeding 15 days. 15 Below 18 18 years and above Hazardous Workplaces a. Nature of theTIFF (Uncompressed) decompressor workers to workQuickTime and a the exposes are needed to see this picture. dangerous enviro nmental elements, contaminants or work conditions b. Workers are engaged in cons truction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock-work, deep sea fishing, and mechanized farming c. Workers are engaged in t he manufacture or handling of explosives and other pyrotechnic products Page 28 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Employment for Certification upon the severance of the household service relatio nship, the househelper may demand from the employer a written statement of the n ature and duration of the service and his/her efficiency and conduct as househel per Apex Mining Co. Inc. v. NLRC, 196 SCRA 251 (1991) The criteria are the perso nal comfort and enjoyment of the family of the employer in the home of said empl oyer. While it may be true that the nature of the work of a househelper, domesti c servant or laundrywoman in a home or in a company staffhouse may be similar in nature, the difference in their circumstances is that in the former instance th ey are actually serving the family while in the latter case, whether it is a cor poration or a single proprietorship engaged in business or industry or any other agricultural or similar pursuit, service is being rendered in the staffhouses o r within the premises of the business of the employer. In such instance, they ar e employees of the company or employer in the business concerned entitled to the privileges of a regular employee. D. HOMEWORKERS Homeworker applies to any pers on who performs industrial homework for an employer, contractor or sub-contracto r Industrial Homeworker system of production under which work for an employer or contractor is carried out by a homeworker at his/her home. Materials may or may not be furnished by the employer or contractor Employer of Homeworker includes any person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through a n employee, agent contractor, sub-contractor or any other person: a. Delivers, o r causes to be delivered, any goods, QuickTime and a TIFF (Uncompressed) decompre ssor articles or materials to besee this picture. or fabricated processed are ne eded to in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions b. Sells any goods, articles or m aterials to be processed or fabricated in or about a home and then rebuys them a fter such processing or fabrication, either by himself or through some other per son Deductions No employee, contractor, or subcontractor shall make any deductio n from the homeworker s earnings for the value of materials which have been lost , destroyed, soiled or otherwise damaged unless the following conditions are met : 1. The homeworker concerned is clearly shown to be responsible for the loss or damage; 2. The employee is given reasonable opportunity to show cause why deduc tions should not be made; 3. The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damages; and 4. The deduction is made a t such rate that the amount deducted does not exceed 20% of the homeworker s ear nings in a week. Liability of employer and contractor Whenever an employer shall contract with another for the performance of the employer s work, it shall be t he duty of such employer to provide in such contract that the employees or homew orkers of the contractor and the latter s sub-contractor shall be paid in accord ance with the provisions of this Rule. In the event that such contractor or subcontractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule, such employer shall be jointly and severally liable wit h the contractor or subcontractor to the workers of the latter, to the extent th at such work is performed under such contract, in the same manner as if the empl oyees or homeworkers were directly engaged by the employer. Prohibitions for Hom ework 1. explosives, fireworks and articles of like character 2. drugs and poiso ns 3. other articles, the processing of which requires exposure to toxic substan ce E. HANDICAPPED / DISABLED Handicapped Workers those whose earning capacity is impaired by age or physical or mental deficiency or injury, disease or illness There must be a link between the deficiency and the work which entitles the empl oyer to lessen the workers wage. If the disability of the person is not in any wa y related to the work for which he was hired, he should not be so considered as a handicapped worker. Handicapped Worker (Art. 78 LC) Handicapped Person (RA 727 7 Magna Carta Page 29 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Those whose earning capacity is impaired by age or physical or mental deficiency or injury for Disabled Persons) Those suffering from restriction or different a bilities as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being. which may be necessary to aid in enforcement of the Labor Code or any labor law or order 5. issue compliance orders to give effect to labor legislation based on the findings of employment and enforcement officers or industrial safety engine ers made in the course of inspection Compliance Order must observe due process i n administrative proceedings: a. alleged violator must first be heard and given adequate opportunity to present evidence on his behalf b. evidence presented dul y considered before any decision reached c. decision is based on substantial evi dence d. decision based on evidence presented in the hearing, or at least contai ned in the record and disclosed to the parties e. decision is that of the decisi on-making authority and not mere views of subordinates f. decision should explai n the issues involved and the reasons for the decisions rendered 6. Issue writs of execution to the appropriate authority for the enforcement of their orders, E XCEPT in cases where the employer contests the findings of the labor employment and enforcement officer and raises isues supported by documentary proofs which w ere not considered in the course of inspection in the latter case, the case will have to be forwarded to a Labor Arbiter Appeal If order issued by duly authoriz ed representative of DOLE Sec. appeal to the latter If order involves monetary a ward an appeal by the employer may be perfected upon only upon posting of CASH o r SURETY bond in the amount equivalent to the monetary award in the order appeal ed from Power of DOLE Secretary May order stoppage of work OR suspension of any unit or department where non-compliance with the law or implementing rules and r egulations poses grave and imminent danger to the health and safety of workers i n the workplace. Within 24 hrs a hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall be lifted I f violation is attributable to FAULT OF THE EMPLOYER, he shall pay the employees concerned their salaries or wages during the period of such stoppage of work or suspension of operations. Page 30 of 83 When Employable 1. their employment is necessary to prevent curtailment of emplo yment opportunities 2. does not create unfair competition in labor costs 3. does not impair or lower working standards Handicapped Workers May Become Regular Em ployees if their handicap is not such as to effectively impede the performance o f job operations in the particular occupations for which they were hired. Equal Opportunity for Employment no disabled person shall be denied access to opportun ities for suitable employment. Qualified disabled employees shall be subject to same terms and conditions of employment and the same compensation, privileges, b enefits, fringe benefits, incentives or allowances as a qualified able-bodied pe rson Employment Agreement; Contents 1. Names and addresses of the employer and t he handicapped worker 2. Rate of pay of the handicapped worker which shall not b e less than 75% of the legal minimum wage 3. Nature of work to be performed by t he handicapped worker 4. Duration of the employment VIII. ADMINISTRATION AND EMPLOYMENT Art. 128. Visitorial and enforcement power. QuickTime Power of the Sec.TIFF (Uncompressed) decompressor of Labor or and a dul y authorized his are needed to see this picture. representative, including labor regulation officers to: 1. have access to employers records and premises at any time of the day or night whenever work is being undertaken therein 2. right to c opy records 3. to question any employee 4. investigate any fact, condition, or m atter which may be necessary to determine violations or

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 POWER Unlawful For any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the Sec. or his authorized representatives issu ed pursuant to the authority under Art. 128 No inferior court shall issue tempor ary or permanent injunction or restraining order or otherwise assume jurisdictio n over any case involving the enforcement orders. Enforcement Power cannot be Us ed Case does not arise from exercise of visitorial power When EER ceased to exis t at the time of inspection If employer contests finding of the labor officer an d such contestable issue is not verifiable in the normal course of inspection Re covery of Wages, Simple Money Claims and Other Benefits (Art. 129) Jurisdiction: DOLE Regional Director (summary proceeding and non-litigious) Claimant: Employe e or person in domestic or household service, provided: 1. no claim for reinstat ement 2. aggregate claims of each employee or househelper DOES NOT EXCEED P5,000 . Guico v. Sec. of Labor, 298 SCRA 666 (1998) If the claim later exceeds P5,000, the Regional Director still retains jurisdiction based on inspections findings i n the nature of enforcement action 3. claims arise from EER NOTE: Notice and hea ring Resolution of complaint within 30 days from filing (Appeal within 5 calenda r days to NLRC) NLRC to resolve appeal within 10 calendar days QuickTime and a TI FF (Uncompressed) decompressor from submission are needed to see this picture. o f last pleading Not Included: claims for Employees Compensation, Social Security benefits, Medicare benefits and Maternity Benefits Art. 128 DOLE Sec. OR his dul y Art. 129 Regional Director or any LIMITS AS TO AMOUNT OF CLAIM authorized repr esentative who may or may not be a Regional Director Visitorial and enforcement power exercised through routine inspections of establishment Requires existence of EER duly authorized hearing officer of DOLE NATURE OF POWER Adjudicatory power on matter involving recovery of wage EER not necessary since it should not include a claim for reinstatement Sworn complaint filed by interes ted party Aggregate claim of each complainant does not exceed P5,000 Appeal to N LRC within 5 calendar days EXISTENCE OF EER HOW INITIATED Enforcement power is an offshoot of visitorial power No limit APPEAL Appeal to Sec. of Labor within 10 calendar days IX. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY First Aid Treatment adequate, immedi ate and necessary medical and dental attention or remedy given in case of injury or illness suffered by a worker during employment, irrespective of whether or n ot such injury or illness is work-connected, before a more extensive medical and /or dental treatment can be secured. First-Aider any person trained and duly cer tified as qualified to administer first aid by the PNRC or by any other organiza tion accredited by the former X. EMPLOYEES COMPENSATION Workmens Compensation a general and comprehensive term a pplied to those laws providing for compensation for loss resulting from the inju ry, WHO EXERCISES Page 31 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 disablement or death of a workman through industrial accident, casualty or disea se Compensation money relief offered according to the scale established under th e statute as differentiated from compensatory damages recoverable in an action a t law for breach of contract or for tort WORKMENS COMPENSATION ACT (WCA) Presumpt ion of compensability Presumption of aggravation There is a need for the employe r to controvert the claim within 14 days otherwise he is deemed to have waived t he right Payment of compensation is made by the employer EMPLOYEES COMPENSATION LAW (ECL) No presumption of compensability No presumption of aggravation No need for the employer to controvert the claim Conditions for Occupational Disease an d Resulting Disability or Death to be Compensable 1. Employees work must involve the risk described therein 2. the disease was contracted as a result of the empl oyees exposure to the described risks 3. the disease was contracted within the pe riod of exposure and other such factors necessary to contract it 4. there was no notorious negligence on the part of the employee Death loss of life resulting f rom injury or sickness Disability loss or impairment of a physical or mental fun ction resulting from injury or sickness Direct Premises Rule GR: The accident sh ould have occurred at the place of work to be compensable. Exceptions: 1. INGRES S-EGRESS / PROXIMITY RULE when the injury is sustained when the employee is proc eeding to or from his work on the premises of the employer, the injury is compen sable. 2. GOING TO OR COMING FROM WORK when the injury is sustained when the emp loyee is proceeding to or from his work on the premises of the employer, the inj ury is compensable. a. The act of the employee of going to, or coming from, the work place, must have been a continuing act, that is, he had not been diverted t herefrom by any other activity and he had not departed from his usual route to, or from, his workplace; and b. An employee on a special errand must have been of ficial and in connection with his work. c. EXTRA PREMISES RULE the company which provides the means of transportation in going to, or coming from the place of w ork, is liable to the injury sustained by the employees while on board said mean s of transportation d. SPECIAL ERRAND RULE injury sustained outside the company premises is compensable if his being out is covered by an office order or a loca tor slip or a pass for official business e. DUAL PURPOSE DOCTRINE allows compens ation where a special trip would have to be made for the employer if the employe e had not combined the service for the employer with his going or coming trip Page 32 of 83 Payment of compensation is made by the SSS/GSIS through the State Insurance Fund . The employers obligation is to pay his counter contribution to the SSS Injury any harmful change in the human organism from any accident arising out of and in the course of employment Conditions for Injury to be Compensable 1. The employee must have been injured at the place where the work required him to be 2 . The employee must have been performing his official functions 3. If the injury is sustained elsewhere, the employee must have been executing an order of the e mployer 4. The injury was not due to the employees intoxication, willful intentio n to injure or kill himself or another, or notorious negligence Injuries incurre d QuickTimehealth worker while by a and a TIFF (Uncompressed) decompressor are ne eded to see this picture. doing overtime work shall be considered work-connected Sickness any illness accepted as an occupational disease listed by the Commissi on or any illness caused by the employment subject to proof that the risk of con tracting the same is increased by the working conditions

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 SPECIAL ENGAGEMENT RULE covers field trips, outings, intramurals, and picnics wh en initiated and sanctioned by the employer g. POSITIONAL AND LOCAL RISKS DOCTRI NE if an employee by reason of his duties is exposed to a special or peculiar da nger from the elements, that is, one greater than that to which other persons in the community are exposed and an unexpected injury occurs, the injury is compen sable Compulsory Coverage ECL applies to all employers, and to all employees, pu blic or private including casual, emergency, temporary, or substitute employees An employee over 60 yrs of age and paying contributions to qualify for the retir ement or life insurance benefit administered by the system shall be subject to c ompulsory coverage. Effective Date of Coverage the employer is covered from the first day of operation and the employee from first day of employment Limits of L iability No compensation if the injury, death or disability is the result of the employees: 1. intoxication 2. willful intention to injure or kill himself or ano ther 3. notorious negligence deliberate act of the employee in disregard to his own personal safety 4. otherwise provided by the Labor Code Death through Suicid e GR: not compensable Exceptions: 1. by agreement of the parties 2. if the suici de/death is caused by work-related or compensable illness or disease Rules on Si multaneous Recovery QuickTime the 1. Simultaneous recovery underand a Labor Code TIFF (Uncompressed) decompressor are cannot be made. and the Civil Code needed t o see this picture. The action is selective and the employee may either choose t o file the claim under either. But once the election is made, the claimant canno t opt for the other remedy. 2. Simultaneous recovery under the Labor Code and th e SSS can be made. f. State Insurance Fund all covered employers are required to remit to a common fund a monthly contribution equivalent to 1% of the monthly s alary credit of every covered employee. The employee pays no contribution to the fund. Any agreement to contrary is prohibited Disability Categories 1. TEMPORAR Y TOTAL if as a result of the injury or sickness, the employee is unable to perf orm any gainful occupation for a continuous period not exceeding 120 days 2. PER MANENT TOTAL if as a result of the injury or sickness, the employee is unable to perform any gainful occupation for a continuous period exceeding 120 days 3. PE RMANENT PARTIAL - if as a result of the injury or sickness, the employee suffers a permanent partial loss of the use of any part of his body Death Benefits The System shall pay to the primary beneficiaries upon the death of the covered empl oyee an amount equal to his monthly income benefit, plus 10% thereof for each de pendent child, but not exceeding 5, beginning with the youngest, and without sub stitution. The income benefit shall be guaranteed for 5 years. Dependent 1. Legi timate, legitimated, and legally adopted or acknowledged natural child who is un married, not gainfully employed and not over 21 years of age or over 21 years of age, provided he is incapable of self-support due to a physical or mental defec t which is congenital or acquired during minority 2. legitimate spouse living wi th the employee 3. parents of said employee wholly dependent upon him for regula r support Benefits 1. for life to the primary beneficiaries, guaranteed for 5 ye ars 2. for not more than 60 mos. to the secondary beneficiaries in case there ar e no primary beneficiaries 3. in no case shall the total benefit be less than P1 5,000. Beneficiaries A. PRIMARY 1. Dependent spouse until he/she remarries 2. De pendent children (legitimate, legitimated, natural born or legally adopted) Page 33 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 B. SECONDARY 1. Illegitimate children and legitimate descendants 2. Parents, gra ndparents, grandchildren QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. Page 34 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 LABOR RELATIONS I. RIGHT TO SELF ORGANIZATION A. CONCEPT & SCOPE Art. 243. Coverage and employee s right to selforganization. Art. 246. Non-abridgment of right to selforganizatio n. Employer includes any person acting in the interest of an employer, directly or indirectly; the term shall not include any labor organization or any of its o fficers or agents except when acting as employer Employee includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any curren t labor dispute or because of any unfair labor practice if he has not obtained a ny other substantially equivalent and regular employment. Any employee, whether employed for a definite period or not, shall, beginning on his first day of serv ice, be considered as an employee for purposes of membership in any labor union. (ART. 277 par.c) Right to Self-Organization The right includes: 1. Forming, joi ning, or assisting labor organizations for the purpose of collective bargaining through representatives of their own choosing. 2. To engage in lawful concerted activities for the purpose of collective bargaining or for their mutual aid and protection. Who Enjoys the Right to Self Organization General Rule: 1. ALL perso ns in: Commercial, industrial, agricultural, religious, charitable, medical and educational institutions, QuickTime and a whether or not TIFF (Uncompressed) deco mpressor operated for profit. are needed to see this picture. PURPOSE: Mutual aid and protection. It shall be unlawful for any person to restr ain, coerce, discriminate against, or unduly interfere with employees and worker s in their exercise of the right to self organization. B. LABOR ORGANIZATIONS 1. Definition and Types Labor Organization means any union or association of emplo yees which exists in whole or in part for the purpose of collective bargaining o r of` dealing with employers concerning terms and conditions of employment Legit imate Labor Organization means any labor organization duly registered with the D OLE, and includes any branch or local thereof Affiliate refers to an independent union affiliated with a federation or national union or a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional Office and the Bureau in accordance wi th Rule III, Sections 6 and 7 of these Rules. Chartered Local refers to a labor organization that acquired legal personality through the issuance of a charter c ertificate by a duly registered federation or national union, and reported to th e Regional Office in accordance with Rule III, Section 2-E of the Rules. Consoli dation refers to the creation or formation of a new union arising from the unifi cation of two or more unions Independent Union refers to a labor organization op erating at the enterprise level that acquired legal personality through independ ent registration Legitimate Workers Association refers to an association of worke rs organized for mutual aid and protection of its members or for any legitimate purpose other than collective bargaining registered with the Department Merger r efers to a process where a labor organization absorbs another National Union or Federation refers to a group of legitimate labor unions in a private establishme nt organized for collective bargaining or for dealing with employers concerning terms and conditions of Page 35 of 83 PURPOSE: Collective bargaining, engaging in lawful concerted activities for coll ective bargaining, and mutual aid and protection. 2. Ambulant, intermittent and itinerant and rural workers, the self-employed and those with no definite employ ers may form labor organizations.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 employment for their member unions or for participating in the formulation of so cial and employment policies and standards and programs, registered with the Bur eau Union refers to any labor organization in the private sector organized for c ollective bargaining and for other legitimate purposes Workers Association refers to an association of workers organized for the mutual aid and protection of its members for any legitimate purpose other than collective bargaining. 2. Registr ation of labor organizations Art. 231. Registry of unions and file of collective bargaining agreements. Art. 234. Requirements of registration. Art. 235. Action on application. Art. 236. Denial of registration; appeal. Art. 237. Additional requirements for federations or national unions. Art. 238. Cancellation of regis tration; appeal. Art. 239. Grounds for cancellation of union registration. Art. 240. Equity of the incumbent. Requirements for Registration (ANNEX A) Requiremen ts in Case Of Merger/Consolidation (ANNEX B) Procedure for Registration of Labor Organization (ANNEX C) 3. Cancellation of registration Grounds for Cancellation of Union Registration 1. Misrepresentation, False Statement or Fraud in connect ion with: a. adoption/ratification of the CBL or amendments thereto, minutes of ratification and the list of members who took part in the ratification QuickTime and a b. election ofTIFF (Uncompressed) decompressor officers, minutes thereof, list of are officers/voters needed to see this picture. c. in the preparation of the financial reports 2. Failure to Submit: a. CBL, minutes of its adoption/rat ification, list of members who took part within 30 days from adoption of ratific ation or amendments thereto Rights of Labor Organizations 1. To act as the repre sentative of its members for the purpose of collective bargaining; 2. To be cert ified as the exclusive representative for purposes of collective bargaining; 3. To be furnished by the employer, with its annual audited financial statements, i ncluding the balance sheet and the profit and loss statement. 4. To own property , real or personal, for the use and benefit of the labor organization and its me mbers; 5. To sue and be sued in its registered name; 6. To undertake all other a ctivities designed to benefit the organization and its members, including cooper ative, housing, welfare and other projects not contrary to law. The income and p roperties received by legitimate labor organization which are actually, directly and Page 36 of 83 b. Minutes of the elections of officers, list of officers/voters within 30 days from election c. Annual financial report to the BLR within 30 days after the clo sing of every fiscal year d. List of individual members to the BLR once a year o r whenever required by the BLR 3. Acting as labor contractor or engaging in the Cabo System or otherwise engaging in any activity prohibited by law 4. Enterin g into CBAs with terms and conditions of employment below minimum standards esta blished by law 5. Asking for or accepting attorney s fees or negotiation fees fr om employer 6. Checking off special assessments or any other fees without duly s igned individual written authorizations of the members (other than for mandatory activities under the Labor Code) Procedure for Cancellation of Registration (AN NEX D) Procedure for Cancellation of Registration Due to Non-Compliance with Rep ortorial Requirements (ANNEX E) 4. Rights of Labor Organization Art. 242. Rights of legitimate labor organizations. Art. 277. Miscellaneous provisions. (a) All unions are authorized to collect reasonable membership fees, union dues, assessm ents and fines and other contributions for labor education and research, mutual death and hospitalization benefits, welfare fund, strike fund and credit and coo perative undertakings.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 exclusively used for their lawful purposes shall be free from taxes, duties and other assessments. Right to Represent its Members When a union files a case for a nd in behalf of its members, a member of that union will not be permitted to file in the same case a complaint-inintervention. Intervention will be allowed only if there is suggestion of fraud or collusion or that the representative will not act in good faith for the protection of all interest represented by the union. Compromise agreement between the union and the company is binding upon the minor ity members of the union. [Dionela v. Court of Industrial Relations, 8 SCRA 832 (1963)] Compromise of Money Claims Money claims due to laborers cannot be the ob ject of settlement or compromise effected by a union or counsel without the spec ific individual consent of each laborer concerned. The beneficiaries are the ind ividual complainants themselves. The union can only assist them but cannot decid e for them. [Kaisahan ng mga Manggagawa sa La Campana v. Sarmiento 133 SCRA 220 (1984)] When the Union has the Right to be Furnished with Financial Statements 1 . After the union has been recognized by the employer as sole bargaining represe ntative of the employees in the bargaining unit. 2. After the union is certified by DOLE as such sole bargaining representative. 3. Written request from the uni on 4. Within the last 60 days of the life of a CBA 5. During the collective barg aining negotiation Right to Collect Fees Right to collect fees is recognized in Art. 277(a) and discussed under the topic of check-off under Art. 241 (Rights an d conditions of membership in a labor organization) C. SPECIAL GROUPS OF EMPLOYE ES are needed to see Employees 1. Managerial & Supervisorythis picture. Under Art. 245, managerial employees are not eligible to join, assist or form any labor org anization. Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separa te labor organizations of their own. QuickTime and a TIFF (Uncompressed) decompre ssor Manager one who is vested with the power or prerogative to lay down an execute m anagement policies and/or to hire, transfer, suspend, lay-off, recall, discharge , assign or discipline employees Note that the management policies must pertain exclusively to labor relations. Supervisor one, who, in the interest of the empl oyer, effectively recommends managerial actions Power to recommend Must be both 1. Effective, and 2. Requires the Use of Independent Judgment. 2. Confidential E mployees Confidential employees are also prohibited from forming, joining or ass isting any labor organization. Confidential Employees a confidential employee is one who is entrusted with confidence on delicate matters, or with custody, hand ling, or care and protection of the employers property. (National Association of Trade Unions (NATU) Republic Planters Bank Supervisors Chapter v. Honorable Rube n Torres, 1994) Confidential employees assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations [Philips Industrial Development v. NLR C; G.R. No. 88957 (June 25, 1992)] NOTE: Confidential employees may be manageria l, supervisory or even a rank and file employee. Purpose of Employees Disqualifi cation of Confidential Doctrine of Necessary Implication what is implied in s statute is as much part t hereof as that which is expressed Under Art. 245, confidential employees are not prohibited from joining, assisting, or forming any labor organization. But by v irtue of necessary implication, confidential employees are similarly disqualifie d. By the very nature of their functions, they assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise man agerial functions in the field of labor relations. As such, the rationale behind the ineligibility of managerial employees to form, Page 37 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 assist or join a labor union equally applies to them. (Metrolab Industries, Inc. v. RoldanConfesor ,1996) Access to Confidential Labor Relations Information The information must be related labor relations matters. When the employee does not have access to confidential labor relations information, then the prohibition t o form, join, or assist a union does not apply. (Sugbuanon Rural Bank v. Laguesm a,2000) If the access is merely incidental to his duties and not necessary in th e performance of such duties, the access does not render the employee a confiden tial employee (San Miguel Corp. Supervisors & Exempt Union, et. al. v. Laguesma 1997) 3. Security Guards Under RA 6715, they may now join a abor organization of the rank and file or that of the supervisory union, depending on their rank. (M anila Electric Co. v. Secretary of Labor and Employment, GR No. 91902, 20 May 19 91) 4. Members of Cooperatives Benguet Electric Cooperative v. Ferrer-Calleja, 1 80 SCRA 740 (1989) Issue: Whether employees of a cooperatove are qualified to fo rm or join a labor organization for purposes of collective bargaining. Held: The right to collective bargaining is not available to an employee of a cooperative who at the same time is a member and co-owner thereof. With respect, however, t o employees who are neither members nor co-owners of the cooperative they are en titled to exercise the rights to self-organization, collective bargaining and ne gotiation. The fact that the member-employees of petitioner (cooperative) do not participate in the actual QuickTime and a management of the cooperative does not make them TIFF (Uncompressed) decompressor are needed to see this picture. elig ible to form, assist or join a labor organization purposes of collective bargain ing. They cannot invoke the right to collective bargaining for certainly an owner cannot bargain with himself or his coowners. It is the fact of ownership of the cooperative, and not involvement in the management thereof, which disqualifies a member from joining any labor organization within the cooperative. 5. Members o f Iglesia ni Kristo Victoriano v. Elizalde Rope Workers Union, 59 SCRA 54 (1974) What the Constitution and the Industrial Peace Act recognize and guarantee is th e right to form or join associations. Nothwithstanding the different theories prop ounded by the different schools of jurisprudence regarding the nature and conten ts of a right, it can be safely said that whatever theory one subscribes to, a rig ht comprehends at least 2 broad notions, namely: first, liberty or freedom, i.e. the absence of legal restraint, whereby an employee may act for himself without being prevented by law; and second, power whereby an employee may, as he please s, join or refrain from joining an association. It is therefore, the employee wh o should decide for himself whether he should join or not in an association. It is clear, therefore, that the right to join a union includes the right to abstai n from joining any union. The legal protection granted to such right to refrain from joining is withdrawn by operation of law, where a labor union and an employ er have agreed on a closed shop. What the exception provides is that members of said religious sects cannot be compelled or coerced to join labor unions even wh en said unions have close shop agreements with the employers; that in spite of a ny closed shop agreement, members of said religious sects cannot be refused empl oyment or dismissed from their jobs on the sole ground that they are not members of the collective bargaining union. It is clear therefore, that the assailed Ac t, far from infringing the constitutional provision on freedom of association, u pholds and reinforces it. It does not prohibit the members of said religious sec ts from affiliating with labor unions. If, notwithstanding their religious belie fs, the members of said religious sects prefer to sign up with the labor union, they can do so; the law does not coerce them to join; neither does the law prohi bit them from joining; and neither may the employer or labor union compel them t o join. Kapatiran sa Meat and Canning Division v. FerrerCalleja, 162 SCRA 367 (1 988) This Courts decision in Victoriano v. Elizalde Rope Workers Union upholding t he right of members of the Iglesia no Kristo sect not to join a labor union for being contrary to their religious beliefs, does not bar the members of that sect from forming their own union. The public respondent correctly observed that the recognition of the tenets of that sect xxx should not infringe on the basic righ t of self-organization granted by the constitution to workers, regardless of

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Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 religious affiliation. 6. Government Employees Art. 244. Right of employees in t he public service. Art. 276. Government employees. Association of Court of Appea ls Employees v. Ferrer-Calleja, 203 SCRA 596 (1991) The terms and conditions of employment in the government service are governed by law. Any understanding betw een the top officials of a government agency and the union which represent the r ank-and-file is subordinate to the law governing the particular issue or situati on. Davao City Water District v. Civil Service Commission, 201 SCRA 593 (1991) B y government owned or controlled corporation with original charter, we mean gove rnment owned or controlled corporation created by a special law and not under th e Corporation Code of the Philippines. It is clear that what has been excluded f rom the coverage of the CSC are those corporations created pursuant to the Corpo ration Code. Government Employees Not Allowed To Unionize 1. Members of the Arme d Forces 2. Police Officers/Policemen 3. Firemen 4. Jail Guards High level emplo yees are also not allowed to join the organization of rank and file government e mployees. o High level employees- one whose functions are normally considered po licy determining, managerial or one whose duties are highly confidential in natu re. 7. Employees of International Organizations International Catholic Migration Commission v. Calleja, 190 SCRA 130 (1989) Labor organizations in the Internati onal Catholic Migration Commission (ICMC) and a International Rice QuickTime and TIFF (Uncompressed) decompressor Research Institute are needed to see this pictu re. (IRRI), both international organizations, filed a petition for certification election. ICMC and IRRI claimed immunity. Held: The grant of immunity from loca l jurisdiction to ICMC and IRRI is clearly necessitated by their international c haracter and respective purposes. The objective is to avoid the danger and parti ality and interference by the host country in their internal workings. The exerc ise of jurisdiction by the DOLE in these instances would defeat the very purpose of immunity, which is to shield the affairs of international organizations, in accordance with international practice, from political pressure or control by th e host country to the prejudice of member states of the organization, and to ens ure the unhampered performance of their functions. The immunity granted being fro m every form of legal process except in so far as in any particular case they ha ve expressly waived in their immunity, it is inaccurate to state that a certifica tion election is beyond the scope of that immunity for the reason that it is not a suit against ICMC. A certification election cannot be viewed as independent o r isolated process. It could trigger off a series of events in the collective ba rgaining process together with related incidents and/or concerted activities, wh ich could inevitably involve ICMC in the legal process, which includes any penal, c ivil and administrative proceedings. D. ACQUISITION AND RETENTION OF MEMBERSHIP; UNION SECURITY AGREEMENTS Art. 277. Miscellaneous provisions. (c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be considered as an employee for purposes of membership in any labo r union. Art. 248. Unfair labor practices of employers. (e) Discrimination. What the law prohibits is discrimination to encourage or discourage membership in a l abor organization. Where the purpose is to influence the union activity of emplo yees, the discrimination is unlawful. However, the inclusion of union security c lause in the CBA is not considered ULP. Union Security Clause generic term which comprehends closed shop, union shop, or any other form of agreement which imposes u pon employees the obligation to acquire or retain union membership as a conditio n of employment. Kinds of Union Security Agreements 1. CLOSED-SHOP only union me mbers can be hired and they must remain as union members to retain employment. 2 . UNION SHOP Nonmembers may be hired, but must become union members after a cert ain period to retain employment. 3. MODIFIED UNION SHOP Employees who are Page 39 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 not union members at the time of the signing the contract is not required to joi n the union, but all workers hired after is required to join. MAINTENANCE OF MEM BERSHIP SHOP Employees are not compelled to join the union, but all present or f uture members must remain in good standing in the union. EXCLUSIVE BARGAINING SH OP Union is recognized as the exclusive bargaining agent for all employees in th e bargaining unit, whether union members or not. BARGAINING FOR MEMBERS ONLY Uni on is recognized as the bargaining agent only for its own members. AGENCY SHOP a n agreement whereby employees must either join the union or pay to the union as exclusive bargaining agent a sum equal to that paid by the members. These union security agreements are opposite of OPEN SHOP. Open shop does not require union membership as a condition of employment. Liberty Flour Mills Employees v. Libert y Flour Mills, Inc., GR Nos. 58768-70, 29 December 1989 Union and Company execut ed a CBA which contained a union shop clause Over a year after the execution of the CBA, 2 employees were dismissed after they formed their own union. Held: It is the policy of the State to promote unionism to enable the workers to negotiat e with management on the same level and with more persuasiveness than if they we re to individually and independently bargain for the improvement of their respec tive conditions. To this end, the Constitution guarantees to them the rights "to self-organization, collective bargaining and negotiations and peaceful concerte d actions including the right to strike in accordance with law." There is no que stion that these purposes could be thwarted if every worker were to choose to go his own separate way instead of joining his co-employees in planning collective action and presenting a united front when they sit down to bargain with their e mployers. It is for this reason that the law QuickTime and a has sanctioned stipu lations TIFF (Uncompressed) decompressor are for the union shop andneeded toclos ed shop as a means the see this picture. of encouraging the workers to join and support the labor union of their own choice as their representative in the negot iation of their demands and the protection of their interest vis-a-vis the emplo yer. A closed shop provision is a valid for of union security, and such a provis ion in a collective bargaining agreement is not a restriction of the right of fr eedom of association guaranteed by the constitution. (Manila Mandarin Employees Union v. NLRC, GR No. 76989, 29 September 1987) 4. E. MEMBERSHIP; RIGHTS OF MEMBERS Art. 241. Rights and conditions of membership i n a labor organization. Art. 274. Visitorial power. Art. 222. Appearances and Fe es. Rights of Union Members 1. POLITICAL RIGHT a. right to vote b. right to be v oted for 2. DELIBERATIVE AND DECISION-MAKING RIGHT a. right to participate in de liberations on major policy questions b. decide on major policy questions by sec ret ballot 3. RIGHTS OVER MONEY MATTERS a. right against excessive fees b. right against unauthorized collection c. right against unauthorized disbursements d. right to require adequate records of income and expenses. e. right to access fin ancial records f. right to vote on officers compensation g. right to vote on prop osed special assessments h. right to deduction of special assessments only with written authorization from member. 4. RIGHT TO INFORMATION a. right to be inform ed about the organizations constitution and by-laws and the collective bargaining agreement and about labor laws. Other Rights & Conditions under Art. 241 1. Lab or organizations cannot knowingly admit or continue in membership any individual who belongs to a subversive organization or engaged directly or indirectly in a ny subversive activity. 2. A member who has been convicted of a crime involving moral turpitude is ineligible for election or appointment in the union. 3. Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer and entered into the record of the organization. 4. Every income shall be evidenced by a record showing its source. And every ex penditure shall be evidenced by a receipt from the person who Page 40 of 83

5. 6. 7.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 was paid. The receipt shall state the date, place and purpose of such payment. E ligibility for Membership Eligibility for membership depends upon the unions cons titution and by laws. However, under Art. 277, an employee is already qualified for union membership starting on his first day of service. Election of Union Off icers Officers shall be elected directly by members in secret ballot voting. Ele ction shall take place every 5 years. The only qualification requirement for can didacy shall be membership in good standing in labor organization. o Membership in good standing any person who has fulfilled the requirements for membership in the union and who has neither voluntarily withdrawn from membership nor has bee n expelled or suspended from membership. The secretary or any other responsible union officer shall give the Secretary with a list of the newly-elected officers , and appointed officers or agents who are entrusted with the handling of funds within 30 days after the election Procedure of elections o GR: in accordance wit h the unions constitution and by-laws or agreement among the members. o If the co nstitution, by laws are silent or if there is no agreement, then Rule 12 of the Implementing rules will apply Elections under Rule 12 of the Implementing Rules (ANNEX F) Eligibility of Voters Only members of the union can take part in the e lection of union officers. Tancinco v. Pura Ferrer-Calleja GR. No. 78131 (1988) The question of eligibility to vote may be QuickTime and a determined through the use of decompressor TIFF (Uncompressed) the applicable payroll are needed to se e this picture. period and employees status during the applicable period. Submiss ion of the employees name with the BLR as qualified members of the union is not a condition sine qua non to enable said members to vote in the election of the un ion officers. Disqualification of Union Officers 1. Convicted of a crime involvi ng moral turpitude. 2. Individual who belongs to a subversive organization or en gaged directly or indirectly in any subversive activity. - one cannot even be a member of the organization Union Election Protest complaints or protests regardi ng election of union officers is treated as an intra/inter-union dispute Check-O ffs & Assessments Check-Off a method of deducting from an employees pay at prescr ibed period, the amounts due the union for fees, fines or assessments. Deduction s for union service fee are authorized by law and do not require individual chec k-off authorizations. Agency Fee amount equivalent to union dues, which a nonuni on member pays to the union because he benefits from the CBA negotiated by the u nion Requisites for a Valid Special Assessments 1. Authorization by a written re solution of the majority of all the members at the general membership meeting du ly called for that purpose. 2. Secretarys record of the minutes of the meeting. o must include list of members present, votes cats, purpose of the special assess ments and the recipient of such assessments. 3. Individual written authorization for check-off duly signed by the employee concerned to levy such assessments Pa lacol v. Ferrer-Calleja, 182 SCRA 710 (1990) The union president submitted the a uthorization for the company to deduct union dues and 10% by way of special asse ssments. Subsequently, members of the union submitted documents stating that the y were withdrawing their authorization such that in the end, there ere 528 objec tors and only 272 supporters. Petitioners question the special assessments. Held : The failure of the union to comply strictly with the requirements set out by t he law invalidates the questioned special assessments. Substantial compliance is not enough in view of the fact that the special assessment will diminish the co mpensation of the union members. Under Art. 241, (n), the Union must submit to t he company a written resolution of a majority of all the members at a general me mbership meeting called for Page 41 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 the purpose. In addition, the secretary of the organization must record the minu tes of the meeting which in turn, must include, among others, the list of all th e members present as well as the votes cast. The law would not have specified a general membership meeting had the legislative intent been to allow local meetin gs in lieu of the latter. There can be no valid check-off considering that the m ajority of the union members had already withdrawn their individual authorizatio n. Violation of Rights of Members GR: Complaint for violation of rights must be reported by at least 30% of the union members. Exception: when the violation dir ectly affects only one or two members, then only one or two members can report s uch violation. Consequence of Violation of Rights 1. Cancellation of the union r egistration 2. Expulsion of the cULPable officers. Remedies for Violation of Rig hts Litton Mills Employees Association-Kapatiran v. Ferrer-Calleja, GR No. L-780 61 (1988) Despite the practical difficulties in complying with the said procedur e, petitioners should have shown substantial compliance with said impeachment pr ocedure, by giving the union officer ample opportunity to defend himself, as con trasted to an outright impeachment, right after he failed to appear before the f irst and only investigation scheduled. Diamonon v. Dept. of Labor, et. al. GR. N o. 108951, 07 March 2000 When the Constitution and by-laws of both unions dictat ed the remedy for intra-union dispute, this should be resorted to not only to gi ve the grievance machinery or appeals body of the union the opportunity to decide the matter by itself, but also to prevent unnecessary and premature resort to a dministrative or judicial bodies. The underlying principle of the rule on exhaus tion of administrative remedies rests on the presumption QuickTime and a that whe n the administrative decompressor or grievance TIFF (Uncompressed) body, are nee ded to see this picture. machinery, as in this case, is afforded a chance to pas s upon the matter, it will decide the same correctly. Visitorial Power The Secre tary or his duly authorized representative can inquire into the financial activi ties of any labor organization on the basis of a complaint under oath, supported by 20% of the membership. II. UNFAIR LABOR PRACTICES Art. 247. Concept of unfair labor practice and proced ure for prosecution thereof. Concept of Unfair Labor Practices The aim of labor relations policy is industrial democracy whose realization is most felt in a fre e collective bargaining or negotiation over terms and conditions of employment. Because self organization is a prerequisite of industrial democracy, the right t o self organize has been enshrined in the Constitution, and any attack to it any attack to it any act intended to defeat or debilitate the right is regarded by law as an offense. The victim of the offense is not just the workers as a body a nd the well meaning employees who value peace, but the State as well. Thus, the attack to this constitutional right is considered a crime which carries both civ il and criminal liabilities. Elements of Unfair Labor Practice 1. EER between th e offender and the offended. ULP is negation of a counteraction to the right to organize which is available only to employees in relation to their employer. No organizational right can be negated or assailed if the employer employee relatio nship is absent in the first place. 2. The act done is expressly defined in the Code as an act of unfair labor practice. Art. 212(k) defines unfair labor practi ce as any unfair labor practice as defined by this Code. The prohibited acts are all related to the workers self organizational right and to the observance of a collective bargaining agreement. Because ULP is and has to be related to the rig ht to self organization and to the observance of the CBA, it follows that not ev ery unfair act is unfair labor practice. ULP therefore, refers only to acts oppo sed to workers right to organize. When committed by the employer, it commonly con notes anti unionism. Aspects of Unfair Labor Practice 1. Civil Aspect 2. Crimina l Aspect Page 42 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Civil aspect may include liability for damages and may be passed upon by the lab or arbiter. Prosecution of ULP as a criminal offense can be initiated only after the finality of judgment in the labor. But judgment in the labor case will not serve as evidence of ULP in the criminal case. Jurisdiction of Criminal Charge o f ULP The criminal charge fall under the concurrent jurisdiction of the MTC or t he RTC. Only substantial evidence is required in the labor case while proof beyo nd reasonable doubt is need in the criminal prosecution. Recovery of civil liabi lity in the administrative proceedings shall bar recovery under the Civil Code. Who are Liable when ULP is Committed by Other than a Natural Person The penalty shall be imposed upon the guilty officers of a corporation, partnership, associa tion or entity (Art. 289). If the ULP is committed by a labor organization, the parties liable are the officers, members of governing boards, representatives or agents or members of labor associations or organizations who have actually part icipated in, authorized or ratified such (Art. 249). Prescription of actions for ULP The offense prescribes in 1 year (Art. 290). Art. 248. Unfair labor practic es of employers. Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Vol untary Arbitrators. Conditions precedent to the ULP charge 1. The injured party is within the definition of employee. 2. The act charged as ULP must fall under th e prohibitions of Art. 248 (acts of the employer) or 249 (acts of the union). Th e Hongkong and Shanghai Banking Corp. Employees Union ns. NLRC, GR No. 125038, 0 6 QuickTime and a November 1997 TIFF (Uncompressed) decompressor are needed to se e this picture. The Code enumerates the acts or categories of acts considered as ULP. The enumeration does not mean an exhaustive listing of ULP incidents. The Labor Code does not undertake the impossible task of specifying in precise and u nmistakable language each incident which constitutes an unfair labor practice. R ather, it leaves to the court the work of applying the laws general prohibitory l anguage in the light of indefinite combinations of events which may be charged a s violative of its terms. When There is no ULP: Instance of Valid Exercise of Ma nagement Rights The law on unfair labor practices is not intended to deprive the employer of his fundamental right to prescribe and enforce such rules as he hon estly believes to be necessary to the proper, productive and profitable operatio n of his business. The only condition imposed upon this control is that it must not be exercised so as to effect a violation of the Act and its several prohibit ions. Where, however, an employer does violate the Act and is found guilty of th e commission of an unfair labor practice, it is no excuse that his conduct was u nintentional and innocent. Rubberworld Phils., Inc., et al. v. NLRC, GR No. 7570 4, 19 July 1989 As a rule, it is the prerogative of the company to promote, tran sfer or even demote its employees to other positions when the interests of the c ompany reasonably demand it. Unless there are instances which directly point to interference by the company with the employees rights to self organization, the t ransfer of an employee should be considered within the bounds allowed by law, e. g. where despite his transfer to a lower position, his original rank and salary remained undiminished. Enriquez v. Zamora, GR No. 51382, 29 December 1986 Accept ance of a voluntary resignation is not ULP. In a Philippine Airlines case the co urts said that the pilots protest retirement/resignation was not a concerted acti vity which was protected by law. They did not assume the status of strikers. The y cannot, therefore, validly claim that the company committed unfair labor pract ice. When the pilots voluntarily terminated their employment relationship with t he company, they cannot claim that they were dismissed Wise and Co., Inc. v. Wis e & Co., Employees Union, GR No. 87672, 13 October 1989 There can be no discrimi nation committed by the employer as the situation of the union employees is diff erent from that of the nonunion employees. Discrimination per se is not unlawful . There can be no discrimination where the employees concerned are not similarly situated. The grant by the employer of profit sharing benefits to the employees outside the bargaining unit falls under the ambit of its managerial prerogative . It appears to have been done in good faith and without Page 43 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 ulterior motive. More so when as in this case there is a clause in the CBA where the employees are classified into those who are members of the union and those who are not. In the case of the union members, they derive their benefits from t he terms and conditions of the CBA which constitutes the law between the contrac ting parties. Both the employer and the union members are bound by such agreemen t Philippine Graphic Arts, Inc. v. NLRC, et al., GR No. L-80737, 29 September 19 88 Where the vacation leave without pay, which the employer requires employees t o take in view of the economic crisis, is neither malicious, oppressive nor vind ictive, ULP is not committed NLU v. Insular La Yebana Co., 2 SCRA 924 (1961) Exc ept as limited by special laws, an employer is free to regulate, according to hi s own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, process to be followed, supervision of workers, working regulations, transfer o f employees, work supervision, lay off workers and the discipline, dismissal and recall of work. LVN Picture Workers v. LVN, 35 SCRA 147 (1970) So long as a com panys management prerogatives are exercised in good faith for the advancement of the employers interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements, the Court will uphold them Determination of validity Necessarily, determining the validity of an employers acts involve an appraisal of his motives. Thus, there must be a measure of reliance on the administrative agency. It is for the CIR [NLRC now], in the first instance, to weigh the employers expressed motive in determining the effect on the employees of managements otherwise equivocal act. [Republic Saving s Bank v. CIR, 21 SCRA 226 (1967)] QuickTime and a AHS/Philippines Employees decompressorv. NLRC, GR TIFF (Uncompres sed) Union are needed to see this picture. No. 73721, 30 March 1987 An employer may treat freely with an employee and is not obliged to support his actions with reason or purpose. However, where the attendant circumstances, the history of t he employers past conduct and like considerations, coupled with an intimate conne ction between the employers actions and the union affiliations or activities of t he particular employee or employees taken as a whole raise a suspicion as to the motivation for the employers action, the failure of the emplo yer to ascribe a valid reason therefore may justify an interference that his une xplained conduct in respect of the particular employee or employees was inspired by the latters union membership or activities. Unfair Labor Practice of Employer s 1. interference 2. yellow dog condition 3. contracting out 4. company unionism 5. discrimination for or against union membership 6. discrimination because of testimony 7. violation of duty to bargain 8. paid negotiation 9. violation of CB A First ULP: Interference (Art. 248 (A)) Interference with employee organization al rights were found where the superintendent of the employer threatened the emp loyees with cutting their pay, increasing rent of the company houses, or closing the plant if they supported the union and where the employer encouraged the emp loyees to sign a petition repudiating the union ULP Even Before Union is Registe red Judric Canning Corporation v. Inciong, GR No. L51494, 19 August 1982 Under A rt. 248 (a) of the Labor Code of the Philippines, to interfere with, restrain, or coerce employees in their exercise of their right to self organization is an unf air labor practice on the part of the employer. Paragraph (d) of said Article al so considers it an unfair labor practice for an employers to initiate, dominate, assist or otherwise interfere the formation or administration of any labor organ ization, including the giving of financial or other support to it. In this particu lar case, the private respondents were dismissed, or their services were termina ted, because they were soliciting signatures in order to form a union within the plant. Samahan ng mga manggagawa sa Bandolino LMLC et. al. v. NLRC Bandolino Sh oe Corp., et. al., GR No. 125195, 17 July 1997 In short, an employer who interfe red with the right to self organization before the union is registered can be he ld guilty of ULP. Prohibiting organizing activities However, in the absence of s howing that the illegal dismissal was dictated by anti union motives, the same d

oes not constitute an unfair labor practice Page 44 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 as would be a valid ground for strike. The remedy is an action for reinstatement with backwages and damages. (AHS/Philippine Employees Union v. NLRC, G.R. No. 8 7321, 31 March 1987) Examples of unlawful acts to discourage membership in a lab or organization: 1. dismissal of union members upon their refusal to give up the ir membership, under the pretext of retrenchment due to reduced dollar allocatio ns (Manila Pencil Co. v. CIR, 14 SCRA 953) 2. refusal over a period of years to give salary adjustments according to the improved salary scales in the collectiv e bargaining agreements (Benguet Consolidated v. BCI Employees and Workers Union , 22 SCRA 129) 3. dismissal of an old employee allegedly for inefficiency, on ac count of her having joined a union and engaging in union activities (East Asiati c Co. v. CIR, 16 SCRA 820). 4. Dismissal of teachers for fear by the school that there would be strike the following semester (Rizal Memorial Colleges Faculty U nion, et. al. v. NLRC GR. Nos. 59012-13, 12 October 1989) 5. A companys capital r eduction efforts, to camouflage the fact that it has been making profits to just ify the mass lay-off of its employees especially union members. (Madrigal & Comp any, Inc. v. Zamora, Gr. No. L-4823, 30 June 1987) CLLG E.G. Gochangco Workers U nion v. NLRC, GR No. L-67158, 30 May 1988 We have held that unfair labor practic e cases are not, in view of the public interest involved, subject to comprise. T otality of Conduct Doctrine The culpability of employers remarks is to be evaluat ed on the basis of their implication, against the background of and in conjuncti on with collateral circumstances. Under this doctrine, an expression which might be permissibly uttered by one employer, might be deemed improper when spoken by a more hostile employer, and consequently actionable as an unfair labor practic e. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this pictur e. This doctrine, expressions of opinion by an employer, though innocent in them selves, frequently were held to be culpable because of the circumstances under w hich they were uttered, the history of the particular employers labor relations o r anti union bias or because of their connection with an established collateral plan of coercion or interference. Lockout or Closure Amounting to ULP A lockout, actual or threatened, as a means of dissuading the employees from exercising th eir rights under the Act is clearly an unfair labor practice. However, to hold a n employer who actually or who threatens to lock out his employees guilty of a v iolation of this Act, the evidence must establish that the purpose thereof was t o interfere with the employees exercise of their rights. Sale in Bad Faith The sa le of a business enterprise to avoid the legal consequences of an unfair labor p ractice is necessarily attended with bad faith and both the vendor and the vende e continue to be liable to the affected workers. (Cruz v. PAFLU, G.R. No. L-2651 9, 29 October 1971) Where the sale of a business enterprise was attended with ba d faith, there is no need to consider the applicability of the rule that labor c ontracts being in personam are not enforceable against the transferee. The latte r is in the position of tort feasor, having been a party likewise responsible fo r the damage inflicted on the members of the aggrieved union and therefore canno t justly escape liability. (Cruz v. PAFLU, G.R. No. L-26519, 29 October 1971) Do ctrine of Successor-Employer A new company will be treated as a continuation or successor of the one that closed in the new or take-over company is engaging in the same business as the closed company or department, or is owned by the same p eople, and the "closure" is calculated to defeat the worker s organizational rig ht in which case the closure may be declared a subterfuge. The successor-employe r doctrine is just an enforcement of the piercing the veil of corporate entity. Factors to Determine Continuity: 1. Retention of CONTROL 2. Use of the SAME PLAN T OR FACTORY 3. Use of the SAME OR SUBSTANTIALLY THE SAME EMPLOYEES, workers, su pervisors or managers 4. Similar or substantially the same work or production un der SIMILAR OR SUBSTANTIALLY THE SAME WORKING CONDITIONS 5. Use of the SAME MACH INERY AND EQUIPMENT 6. Manufacture of the SAME PRODUCTS or the performance of th e same services Page 45 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Second ULP: Yellow Dog (Art. 248 (B)) Yellow Dog Contract a promise exacted from workers as a condition of employment that they are not to belong to, or attempt to foster, a union during their period of employment 3 Usual Provisions under t he Yellow Dog Contract 1. a representation by the employee that he is not a memb er of a labor union 2. a promise by the employee not to join a labor union 3. a promise by the employee that, upon joining a labor union, he will quit his emplo yment Third ULP: Contracting Out [Art. 248 (c)] Contracting Out as ULP Contracti ng out services or functions being performed by union members when such act will interfere with, restrain, or coerce employees in the exercise of their right to self organize. However, an employer is not guilty of an unfair labor practice i n contracting work out for business reasons such as decline in business, the ina dequacy of his equipment, or the need to reduce the cost, even if the employers e stimate of his cost is based on a projected increase attributable to unionizatio n. Runaway shop An industrial plant moved by its owners from one location to ano ther to escape union labor regulations or state laws or to discriminate against employees at the old plant because of their union activities. Resorting to runaw ay shop is ULP. Where a plant removal is for business reasons but the relocation is hastened by anti union motivation, the early removal is unfair labor practic e. It is immaterial that the relocation is accompanied by a transfer of title to a new employer who is an alter ego of the original employer. Mere ownership by a single stockholder or by another corporation QuickTimeor anearly all of the of all and TIFF (Uncompressed) decompressor capital stock of are needed to see this picture. is not of itself a corporation sufficient ground for disregarding the separate corporate personality. [Sunio v. NLRC, 127 SCRA 390 (1984)] Fourth ULP: Company Domination Of Union (Art. 248 (D)) Manifestations of Domination of a La bor Union 1. Initiation of the company union idea. This may further occur in thr ee styles: a. outright formation by the employer or his representatives b. emplo yee formation on outright demand or influence by employer c. managerially motiva ted formation by employees 2. Financial support to the union. By defraying the u nion expenses or pays the attorneys fees to the attorney who drafted the constitu tion and by laws of the union. 3. Employer encouragement and assistance. Immedia tely granting the union exclusive recognition as a bargaining agent without dete rmining whether the union represents the majority of employees. 4. Supervisory a ssistance. This takes the form of soliciting membership, permitting union activi ties during working time or coercing employees to loin the union by threats of d ismissal or demotion (Philippine American Cigar & Cigarette Factory Workers Unio n v. Philippine American Cigar & Cigarette Mfg. Co., Inc., 7 SCRA 375). Oceanic Air Products, Inc. v. CIR, GR No. L18704, 31 January 1963 A labor union is compa ny dominated where it appears that key officials of the company have been forcin g employees belonging to rival labor union to join the former under pain of dism issal should they refuse to do so; that key officials of the company, as well as its legal counsel, have attended the election of officers of the former union; that officers and members of the rival union were dismissed allegedly pursuant t o a retrenchment policy of the company, after they had presented demands for the improvement of the working conditions despite its alleged retrenchment policy; and that, after dismissal of the aforesaid officers of the rival labor union, th e company engages the services of new laborers Fifth ULP: Discrimination (Art. 2 48 (E)) Pagkakaisang Itinataguyod ng mga Manggagawa sa Ang Tibay, et. al. v. Ang Tibay, et. al., GR No. L-22273, 16 May 1967 Under the Industrial Peace Act (as under the present Labor Code), to constitute an unfair labor practice, the discr imination committed by the Page 46 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 employer must be in regard to the hire or tenure of employment or any term or co ndition of employment to encourage or discourage membership in any labor organiz ation. The exaction by the Company, from strikers returning to work, of a promis e not to destroy company property and no to commit acts of reprisal against the Union members who did not participate in the strike, cannot be considered as int ended to encourage or discourage Union membership. Taking the circumstances surr ounding the prescribing of that condition, the requirement by the Company is act ually an act of self preservation and designed to inure the maintenance of peace and order in the Company premises Discrimination in Bonus Allocation or Salary Adjustments There is unfair and unjust discrimination in the granting of salary adjustments where the evidence shows that (a) the management paid the employees of the unionized branch; (b) where salary adjustments were granted to employees of one of its non - unionized branches although it was losing in its operations; and (c) the total salary adjustments given every ten of its unionized employees would not even equal the salary adjustments given one employee in the non union ized branch. (Manila Hotel Company v. Pines Hotel Employees Assn. (CUGCO) and CIR , G.R. No. L-30818, 28 September 1972) Discrimination in Layoff or Dismissal Eve n where business conditions justified a layoff of employees, unfair labor practi ces in the form of discriminatory dismissal were found where only unionists were permanently dismissed while non unionists were not. Test of Discrimination For the purpose of determining whether or not a discharge is discriminatory, it is n ecessary that the underlying reason for the discharge be established. The fact t hat a lawful cause for discharge is available is not a defense where the employe e is actually discharged because of his union activities. If the discharge is ac tually motivated by QuickTime and a a lawful reason, (Uncompressed) decompressor employee is TIFF the fact that the are needed to see this picture. engaged in un ion activities at the time will not lie against the employer and prevent him fro m the exercise of his business judgment to discharge an employee for cause. (NLR B v. Ace Comb Co., 342 F. 2 841) Discharge due to union activity, a question of fact Philippine Metal Foundries, Inc., v. CIR, GR Nos. L-34948 49, 15 May 1979 T he question of whether an employee was discharged because of his union activitie s is essentially a question of fact as to which the findings of the court of Ind ustrial Relations are conclusive and binding if supported by substantial evidenc e considering the record as a whole. When there is Valid Discrimination: Union S ecurity Clause Union security is a generic term which is applied to and comprehe nds closed shop, union shop, maintenance of membership or any other form of agre ement which imposes upon employees the obligation to acquire or retain union mem bership as a condition affecting employment. It is indeed compulsory union membe rship whose objective is to assure continued existence of the union. In a sense, there is discrimination when certain employees are obliged to join a particular union. But it is discrimination favoring unionism; it is a valid kind of discri mination. The employer is not guilty of unfair labor practice if it merely compl ies in good faith with the request of the certified union for the dismissal of e mployees expelled from the union pursuant to the union security clause in the co llective bargaining agreement. (Soriano v. Atienza, GR No. 68619, 16 March 1989) Villar vs Inciong, 121 SCRA 444 (1983) It is true that disaffiliation from a la bor union is not open to legal objection. It is implicit in the freedom of assoc iation ordained by the Constitution. But a closed shop is a valid form of union security, and such provision in a collective bargaining agreement is not a restr iction of the right of freedom of association guaranteed by the Constitution. Vi ctorias Milling Co., Inc. v. Victorias Manapla Workers Organization PAFLU, GR No . L-18467, 30 September 1963 Another reason for enforcing the closed shop agreem ent is the principle of sanctity or inviolability of contracts guaranteed by the Constitution. As a matter of principle, the provision of the Industrial Peace A ct granting freedom to employees to organize themselves and select their represe ntative for entering into bargaining agreements, should be subordinated to the c onstitutional provision protecting the sanctity of contracts. Advantages of Clos ed Shop Agreement

Page 47 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 1. increases the strength and bargaining power of labor organizations. 2. preven ts non union workers from sharing in the benefits of the unions activities withou t also sharing its obligations. 3. prevents the weakening of labor organizations by discrimination against union members. 4. eliminates the lowering of standard s caused by competition with non - union workers. 5. enables labor organizations effectively to enforce collective agreements. 6. facilitates the collection of dues and enforcement of union rules. 7. creates harmonious relations between the employer and employee (NLU v. Aguinaldos Echague, Inc., 51 O.G. 2898) Disadvanta ges of a Closed Shop Agreement 1. results in monopolistic domination of employme nt by labor organizations 2. interferes with the freedom of contract and persona l liberty of the individual worker 3. compels employers to discharge all non uni on workers regardless of efficiency, length of service, etc. 4. facilitates the use of labor organizations by unscrupulous union leaders for the purpose of exto rtion, restraint of trade, etc. 5. denies to non union workers equal opportunity for employment 6. enables union to charge exorbitant dues and initiation fees V alid dismissal because of application of union security clause Malayang Samahan ng mga Manggagawa sa M. Greenfield v. Ramos, GR No. 113907, 28 February 2000 Uni on security clauses in the collective bargaining agreements, if freely and volun tarily entered into, are valid and binding. Thus, the dismissal of an employee b y the company pursuant to a labor unions demand in accordance with a union securi ty agreement does not constitute unfair labor practice. Manalang, et. al. v. Art ex Development Co., et. al., GR No. L-20432, 30 October 1967 A union member who is employed under an agreement between the union and his employer is bound by th e provisions thereof since it is a joint and several contract of the members of the union entered into by the union as their agent. Villar v. Inciong, 121 SCRA 444 (1983) Page 48 of 83 QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. Petitioners, although entitled to disaffiliation from their union and to forma n ew organization of their own, must, however, suffer the consequences of their se paration from the union under the security clause. Due process required in enfor cing union security clause; intra union matter becomes termination dispute with employer Although a union security clause in a CBA may be validly enforced and d ismissal pursuant thereto may likewise be valid, this does not erode the fundame ntal requirement of due process. The reason behind the enforcement of union secu rity clauses which is the sanctity and inviolability of contracts cannot overrid e ones right to due process. While it is true that the issue of expulsion of the local union officers is originally between the local union and the federation, h ence, intra union in character, the issue was later on converted into a terminat ion dispute when the company dismissed the petitioners from work without the ben efit of a separate notice and hearing. Thus, notwithstanding the fact that the d ismissal was at the instance of the federation and that it undertook to hold the company free from any liability resulting from such a dismissal, the company ma y still be held liable if it was remiss in its duty to accord the would be dismi ssed employees their right to be heard on the matter. Liability of union to pay wage and fringe benefits of illegally dismissed employee Where the employer comp elled the employee to go on forced leave upon recommendation of the union for al leged violation by the employee of the closed shop agreement, the NLRC correctly ordered the reinstatement of the employee and directed the union to pay the wag es and fringe benefits which employees failed to receive as a result of her forc ed leave and to pay attorneys fees. The employer would not have compelled the emp loyee to go on forced leave were it not for the unions insistence and demand to t he extent that because of the failure of the employer to dismiss the employee as requested, the union filed a notice of strike on the issue of unfair labor prac tice. Moreover, under the collective bargaining agreement between the union and the employer, the union holds the company free and blameless from any liabilitie s that may arise should the employee question the dismissal. (Manila Mandarin Em

ployees Union v. NLRC, GR No. 76989, 29 September 1987) Employer in good faith n ot liable

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Where the employer dismissed his employees in the belief in good faith that such dismissal was required by the closed shop provisions of the collective bargaini ng contract with the union, he may not be ordered to pay back compensation to su ch employees although their dismissal is found to be illegal. (Confederated Sons of Labor v. Anakan Lumber co., et. al., GR No. L-12503, 29 April 1960) Employee s not covered by the closed shop provision 1. any employee who at the time the c losed shop agreement takes effect is a bona fide member of a religious organizat ion which prohibits its members from joining labor unions of religious grounds 2 . employees already in service and already members of a labor union or unions ot her than the majority union at the time the closed shop agreement took effect 3. confidential employees who are excluded from the rank and file bargaining unit 4. employees excluded from the closed shop by express terms of the agreement It is well settled in this jurisdiction that, in the absence of a manifest intent t o the contrary, closed shop provisions in a collective bargaining agreement appl y only to persons to be hired or to employees who are not yet members of any lab or organization and that said provisions of the agreement are not applicable to those already in the service at the time of the execution. To hold that the empl oyees in a company who are members of a minority union may be compelled to disaf filiate from their union and join the majority or contracting union, would rende r nugatory the right of all employees to self organization and to form, join or assist labor organizations of their own choosing, a right guaranteed by the Indu strial Peace Act as well as by the Constitution. (Kapisanan ng mga Manggagawa ng Alak (NAFLU) v. Hamilton Distellery Co., et. al., GR No. L-18112, 30 October 19 62) Agency fee instead of union membership Under the agency shop clause of a CBA , an QuickTime and a the employee is not required to decompressor union as a join TIFF (Uncompressed) are needed to see this picture. condition of continued empl oyment, but must pay the union a service fee (usually equivalent to union dues a nd initiation fees). Since a union is required by statute to act as the bargaini ng representative of all employees, both union and non union, within their barga ining unit, the justification for the clause is that the nonmember should contri bute towards the cost of collective bargaining process without supporting it fin ancially. Sixth ULP: Discrimination Because Of Testimony [Art. 248 (f)] The test imony or proceedings might involve wages, employees benefits disciplinary rules, or organizational rights, or anything covered by the Labor Code. What is chargea ble as ULP is the employers retaliatory act regardless of the subject of the empl oyees complaint or testimony. Seventh ULP: Violation of the Duty to Bargain [Art. 248 (g)] Four Forms of ULP in bargaining: a. Failure or refusal to meet and con vene b. Evading the mandatory subjects of bargaining c. Bad faith in bargaining, including failure or refusal to execute the collective agreement, if requested d. Gross violation of the CBA Eighth ULP: Paid Negotiation [Art. 248 (H)] Self o rganization and collective bargaining are treasured rights of the workers. The l aw zealously shields them from corruption. It is a punishable act of ULP for the employer to pay the union or any of its officers or agents any negotiation fee or attorneys fees as part of the settlement in collective bargaining or any labor dispute. To do so is not only unlawful. It is ethically reprehensible. Correspo ndingly, Art. 249 prohibits union officers or agents from asking for or acceptin g such payments. Such act, furthermore, is a ground for cancellation of union re gistration under Art. 239 (g). Ninth ULP: Violation of the CBA Implementation of the CBA is still part of the bargaining process. The duty to bargain requires g ood faith, and good faith implies faithful observance of what has been agreed up on. It logically follows that noncompliance with the agreement is non observance of good faith in bargaining; therefore, the noncompliance amounts to a ULP. Vio lation of the CBA must be gross. Relief In ULP Cases 1. Cease and Desist Order T o support a cease and desist order, the record must show that the restrained mis conduct was an issue in the case; that there was a finding of fact of said misco nduct and such finding was supported by evidence. The Court is not authorized to issue blank cease and desist orders, but must confine its Page 49 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 injunction orders to specific act or acts which are related to past misconduct. 3. 2. Affirmative Order In addition to a cease and desist order, the court may i ssue an affirmative order to reinstate the said employee with back pay from the date of the discrimination. If other laborers have been hired, the affirmative o rder shall direct the respondent to dismiss these hired laborers to make room fo r the returning employee. 3. Court may order the Employer to Bargain, CBA may be imposed 4. Strike by union members ULP is not subject to compromise CLLC E.G. G ochangco Workers Union, et. al. v. NLRC, GR No. 67158, 30 May 1988 ULP cases are not, in view of the public interest involved, subject to compromises. The relat ion between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. ULP in a given period should be included in a single charge Dionela, et. al. v. CIR et. al., GR No. L-18334, 31 August 1963 When a labor union accuses an employer of a cts of unfair labor practice allegedly committed during a given period of time, the charges should include all acts of unfair labor practice committed against a ny and all members of the union during that period. The union should not, upon t he dismissal of the charges first preferred, be allowed to split its cause of ac tion and harass the employer with subsequent charges, based upon acts committed during the same period of time. Art. 249. Unfair organizations. labor practices of labor membership or continuation of membership is made available to other mem bers. To refuse to bargain collectively with the employer, if it is the represen tative of the employee. To attempt to or cause the employer to pay money or othe r things of value, in the nature of an exaction, for services which are not perf ormed or not to be performed. This includes fee for union negotiations. To ask o r accept negotiations or attorneys fees from employers as part of the settlement in any dispute. Violation of CBA. 4. 5. 6. Restraint or Coercion by Labor Organization; Interference by Union is not ULP [A rt. 249 (a)] A labor organization commits ULP when it restrains or coerces emplo yees in their right to self organization. A labor organization may interfere in the employees right to self organization as long as the interference does not amo unt to restraint or coercion. Union cannot coerce employees to join a strike Sim ilarly, violation is committed when a union threatens the employees with bodily harm in order to force them to strike. A union violates the law when, to restrai n or coerce nonstrikers from working during the strike, it: o assaults or threat ens to assault them o threatens them with the loss of their jobs o blocks their ingress to and egress from the plant o damages nonstrikers automobiles or forces them off the highway o physically preventing them from working o sabotages the e mployers property in their presence, thereby creating an atmosphere of fear or vi olence o demonstrates loudly in front of a nonstrikers residence with signs and s houts accusing the nonstriker of scabbing o holding the nonstriker up to ridicule o seeking public condemnation of the nonstriker Union-Induced Discrimination Arb itrary use of union security clause The broad rule is that the union has the rig ht to determine its membership and to prescribe the conditions for the acquisiti on and retention TIFF (Uncompressed) decompressor Unfair Labor Practices of Laborpicture. Organiz ation are needed to see this 1. To restrain or coerce employees in the exercise of their right to self organization. 2. To attempt to or cause an employer to di scriminate against an employee to whom membership in the labor organization was denied or to terminate an employee on any ground other than he usual terms and c onditions under which

QuickTime and a Page 50 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 thereof. Consequently, admission to membership may not be compelled. This rule, however, is qualified in the case of labor unions holding a monopoly in the supp ly of labor, either in a given locality, or as regards a particular employer by reason of a closed shop or similar agreements. In such case, qualified applicant s may not be barred by unreasonable rules. Salunga v. Court of Industrial Relati ons, 21 SCRA 216 (1967) Employee resigned from the union. The union requested th e company to enforce the closed shop provision of the CBA. Company deferred acti on and informed the employee of the possible effects of his resignation from the union. Employee tried to revoke his resignation from the union but this denied by the union. Company finally granted the request of the union and terminated th e employee. Employee complained of illegal dismissal. Held: Labor unions are not entitled to arbitrarily exclude qualified applicants for membership and a close d shop provision will not justify the employer in discharging, or a union in ins isting upon the discharge of, an employee whom the union thus refuses to admit t o membership, without any reasonable ground thereof. Having been dismissed from service owing to unfair labor practice on the part on the part of the union, pet itioner is entitled to reinstatement as member of the union and to his former or substantially equivalent position in the company, without prejudice to his seni ority and/or rights and privileges, and with back pay. Manila Mandarin Employees Union v. NLRC, 154 SCRA 369 (1987) Union security clauses are also governed by law and by principles of justice, fair play, and legality. Union security clause s cannot be used by union officials against an employer, much less their own mem bers, except with a high sense of responsibility, QuickTime and a fairness, prude nce TIFF (Uncompressed) decompressor and judiciousness. are needed to see this picture. Featherbedding employee practices which create or spread employment by unnecessa rily maintaining or increasing the number of employees used, or the amount of ti me consumed, to work on a particular job It may take the form of minimum crew re gulations on the railroad, make work rules such as the setting of and prompt des truction of unneeded bogus type in the newspaper industry, stand by pay for musi cians when a radio station broadcasts music from phonograph records or productio n ceilings for work on the assembly lines or at the construction site III. RIGHT TO COLLECTIVE BARGAINING A. DUTY TO BARGAIN COLLECTIVELY Art. 250. Pr ocedure in collective bargaining. Art. 251. Duty to bargain collectively in the absence of collective bargaining agreements. Art. 252. Meaning of duty to bargai n collectively. Art. 253. Duty to bargain collectively when there exists a colle ctive bargaining agreement. Art. 253-A. Terms of a collective bargaining agreeme nt. Art. 254. Injunction prohibited. Art. 231. Registry of unions and file of co llective bargaining agreements. Collective Bargaining Agreement a contract execu ted upon request of either the employer or the exclusive bargaining representati ve of the employees incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and conditions of employment , including proposals for adjusting any grievance or questions under the agreeme nt Parties to Collective Bargaining 1. Employer 2. Employees, represented by bar gaining agent the exclusive Refusal To Bargain [Art. 249(c)] A union violates its duty to bargain collective ly by entering negotiations with a fixed purpose of not reaching an agreement or signing a contract. Featherbedding And Make Work Arrangements [Art. 249 (d)] Jurisdictional Requirements 1. Status of majority representation of the employee s representative. 2. Proof of majority representation 3. Demand to bargain under

art. 250 (a) (Kiok Loy v. NLRC, 141 SCRA 179) The duty of the employer to bargai n collectively arises only after the union requests the employer to bargain. If there is no demand, the employer cannot be in default. When there is a legitimat e representation issue, Page 51 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 there is no duty to bargain collectively on the part of the employer [Lakas ng M anggagawang Makabayan v. Marcelo Enterprises, 118 SCRA 425 (1982)] Commencement of Bargaining During Certification Year within 12 months after the determination and certification of the employees exclusive bargaining representative. Bargaini ng Procedure The parties may agree on the bargaining procedure. If there is a pr ocedure agreed upon, the Labor Code Procedure applies suppletorily. Bargaining P rocedure under the Labor Code (Art. 250) (ANNEX G) Duty to Bargain Collectively When There Is No Collective Bargaining Agreement 1. the performance of a mutual (employer and the exclusive bargaining agent) obligation to meet and convene, 2. promptly and expeditiously in good faith 3. for the purpose of negotiating an a greement with respect to wages, hours of work and all other terms and conditions of employment, including proposals for adjusting any grievances or questions ar ising under such agreement, and 4. Executing a contract incorporating such agree ments. The duty does not compel any party to agree to a proposal or to make any concession. The CBA remains in full force and effect during the 60 day period an d until a new agreement is reached. Duty to Bargain Collectively when there is a Collective Bargaining Agreement When there is a CBA, the duty to bargain also m eans that neither party shall terminate nor modify such agreement during its lif etime. But 60 days before the CBA expires, either party may notify the other in writing that it wants to terminate or modify the agreement. th are - Violation of 4 Forms of 7 ULP needed to see this picture. the Duty to B argain Collectively 1. Failure or refusal to meet and convene 2. Evading the man datory subjects of bargaining 3. Bad faith in bargaining 4. Gross violation of t he CBA QuickTime and a TIFF (Uncompressed) decompressor Kiok Loy v. NLRC, 141 SCRA 179 (1986) The union gave the employer copies of its proposed CBA and requested the company to make counter-proposals. The company di d not reply. The union again wrote the company but this was also ignored. Held: It is unfair labor practice for an employer to refuse to meet and convene prompt ly and expeditiously in good faith for the purpose of negotiating an agreement f or wages, hours of work and other terms of employment. A companys refusal to make counter-proposal if considered in relation to the entire bargaining process, ma y indicate bad faith and this is especially true where the Unions request for a c ounter proposal is left unanswered. We agree with the pronouncement that it is n ot obligatory upon either side of a labor controversy to precipitately accept or agree to the proposals of the other. But an erring party should not be tolerate d and allowed with impunity to resort to schemes feigning negotiations by going through empty gestures. Evading the Mandatory Subjects Mandatory Subjects 1. Wag es 2. Hours of Work 3. Other Terms and Conditions of Employment Where the subjec t of the dispute is a mandatory bargaining subject, either party may bargain to an impasse as long as he bargains in good faith. Where the subject is nonmandato ry, a party may not insist on bargaining to the point of impasse. His insistence may be construed as evasion of the duty to bargain. Bargaining in Bad Faith The re is no per test of good faith in bargaining. The good faith or bad faith is an inference to be drawn from the facts and is largely a matter for the NLRBs exper tise. The charge of bad faith should be raised while the bargaining is in progre ss. Samahang Manggagawa sa Top Form Manufacturing-United Workers of the Philippi nes v. NLRC, GR No. 13856, 07 September 1998 With the execution of the CBA, bad faith can no longer be imputed upon any of the parties thereto. All provisions i n the CBA are supposed to have been jointly and voluntarily incorporated therein by the parties. This is not a case where private respondent Page 52 of 83 Failure or Refusal to Meet and Convene

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 exhibited an indifferent attitude towards collective bargaining because the nego tiations were not the unilateral activity of petitioner union. The CBA is good e nough that private respondent exerted reasonable effort of good faith bargaining. Lakas ng Manggagawang Makabayan v. Marcelo Enterprises, GR Nos. L-38258, 38260, 19 November 1982 It is also evident from the records that the charge of bargaini ng in bad faith imputed to the respondent companies, is hardly credible. In fact , such charge is valid as only against the complainant LAKAS. The parties had a total of 5 conferences for purposes of collective bargaining. It is worth consid ering that the first strike of Sept. 4 1967 was staged less than a week after th e 4th CBA conference and without any benefit of any previous strike notice. In t his connection, it must be stated that the notice of strike filed on June 13, 19 67 could not have been the strike notice for the first strike because it was alr eady withdrawn on July 14, 1967. Thus, from these stated facts can be seen that the first strike was held while the parties were in the process of negotiating. The companys refusal to accede to the demands of LAKAS appears to be justified si nce there is no showing that these companies were in the same state of financial and economic affairs. There is reason to believe that the first strike was stag ed only for the purpose of compelling the respondent companies to accede to the inflexible demands of the complainant LAKAS. Registration of Collective Bargaini ng Agreements Where to file With the Regional Office which issued the certificat e of registration/certificate of creation of chartered local. If the certificate of creation of the chartered local was issued by the bureau, the agreement shal l be filed with the Regional Office which has jurisdiction over the place where it principally operates Multi-employer collective bargaining agreements shall be filed with the Bureau. When to file within 30 days from execution of the CBA. R equirements for registration The application for CBA registration shall be accom panied by the original and 2 duplicate copies of the following documents. 1. CBA 2. A statement that the CBA was posted in at least QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. 2 conspicuous places in the establishment concerned for at least 5 days before i ts ratification. 3. Statement that the CBA was ratified by the majority of the e mployees in the bargaining unit. The following documents must be certified under oath by the representative of the employer and the labor union. No other docume nt shall be required in the registration of the CBA. Procedure 1. The Regional O ffice or the Bureau shall act on the applications within 5 days form receipt of the application. 2. The Regional Office or Bureau may within 5 days from receipt of the application, a. approve the application and issue the certificate of reg istration or b. deny the application for failure to comply with the requirements . c. If the supporting documents are not complete, or are not verified under oat h, the Regional Office or the Bureau shall notify the applicants in writing of t he requirements needed to complete the registration. o If the applicant fails to complete the requirements within 10 days from receipt of notice, application is denied without prejudice. o The denial shall be in writing, stating in clear te rms the reason therefore and served upon the applicant union and employer within 24 hours from issuance. 3. The denial by the Regional Office of the registratio n of single enterprise collective bargaining agreements may be appealed to the B ureau while the denial by the Bureau of the registration of multi-employer colle ctive bargaining agreements may be appealed to the Office of the Secretary, both within 10 days from receipt of the notice of denial. 4. The memorandum of appea l is filed with the Regional Office or the Bureau, as the case may be. 5. The me morandum of appeal and the entire records of the application shall be transmitte d to the Bureau or the Office of the Secretary within 24 hours from receipt of t he memorandum of appeal. 6. Bureau or the Office of the Secretary shall resolve within the same period and in the same manner as that prescribed for inter/intra -union disputes. Page 53 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Duration of CBA 1. Representation Aspect: 5 years Refers to the identity and maj ority status of the union that negotiated the CBA as the exclusive bargaining re presentative. 2. All other provisions should be renegotiated not later than 3 ye ars from effectivity. Refers to the rest of CBA, economic as well as non-economi c other than representational. Hold Over Principle The CBA shall be in full forc e and effect until the parties reach a new agreement. New Pacific Timber & Suppl y Company Inc. v. NLRC, 328 SCRA 404 (2000) It is clear from the above provision of law (Art. 253) that until a new CBA has been executed by and between the par ties, they are duty-bound to keep the status quo and to continue in full force a nd effect the terms and conditions of the existing agreement. The law does not p rovide for any exception nor qualification as to which of the economic provision s of the existing agreement are to retain force and effect, therefore, it must b e understood as encompassing all the terms and conditions in the said agreement. It is the duty of both parties to continue in full force and effect the terms a nd conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties. To rule otherwise would be to create a gap during which no agement would govern, from the time the old contract expired to the time a new agreement shall have been entered into. Rules on Effectivity and Retroactivity of New CBA (Apply Only to Provisions Other than Representation al) I. CBA as a Result of Negotiations A. With Previous CBA 1. Effectivity of ne w CBA entered into within 6 months after the expiration of the old CBA: QuickTim e and a TIFF date following the retroact to the(Uncompressed) decompressor expiry date. are needed to see this picture. 2. Effectivity of new CBA entered into af ter 6 months following the expiration of the old CBA: GR: effective on the date agreed upon by the parties. If there is no agreement, the arbitral award will re troact to the day after the end of the 6-month period after the expiry of the ol d CBA. B. New and First-Ever CBA (No previous CBA) effective on date agreed upon by the parties II. Arbitral Awards A. With Previous CBA 1. Arbitral award final within 6 months from old CBA: retroact to the date following the expiry of the old CBA. 2. Arbitral award final after 6 months following the expiration of the old CBA: General Rule: the agreement between the parties. If there is no agreeme nt, retroact to the st 1 day following the 6-month period B. New and First-Ever CBA (No previous CBA) Labor Secretarys discretion will be followed. B. BARGAINING AGENT & CERTIFICATION ELECTION PROCEEDINGS Art. 255. Exclusive bargaining repre sentation and workers participation in policy and decisionmaking. Art. 256. Repre sentation issue in organized establishments. Art. 257. Petitions in unorganized establishments. Art. 258. When an employer may file petition. Art. 259. Appeal f rom certification election orders. Bargaining Unit a group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupation al or geographical grouping within such employer unit Certification Election/Con sent Election The process of determining through secret ballot the sole and excl usive representative of the employees in an appropriate unit for purposes of col lective bargaining or negotiation. A certification election is ordered by the De partment, while a consent election is voluntarily agreed upon by the parties, wi th or without the intervention by the Department. Organized Establishment an ent erprise where there exists a recognized or certified sole and exclusive bargaini ng agent Run-off Election an election between the labor unions receiving the 2 h ighest number of votes in a certification or consent election with 3 or more cho ices, where such a certified or consent results in Page 54 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 none of the 3 or more choices receiving the majority of the valid votes cast; pr ovided that the total number of votes for all contending unions is at least 50% of the number if votes cast Voluntary Recognition process by which a legitimate labor union is recognized by the employer as the exclusive bargaining representa tive or agent in a bargaining unit, reported with the Regional Office in accorda nce with Rule VII, section 2 of these Rules. 3 Methods to Determine the Bargaini ng Union 1. Voluntary Recognition 2. Certification Election 3. Consent Election Voluntary Recognition When to file In unorganized establishments with only one l egitimate labor organization, the employer may voluntarily recognize the represe ntation status of the union. Within 30 days from such recognition, the employer and union shall submit a notice of voluntary recognition. Where to file Regional Office which issued the recognized labor unions certificate of registration or c ertificate of creation of a chartered local. Requirements for Voluntary Recognit ion The notice of voluntary recognition shall be accompanied by the original cop y and 2 duplicate copies of the following documents: 1. A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition. 2. Certificate of posting of the joint statement of voluntary recognition for 15 c onsecutive days in at least 2 conspicuous places in the establishment or bargain ing unit where the union seeks to operate. 3. Approximate number of employees in the bargaining unit, accompanied by the names of those who support QuickTime and a the voluntary recognition TIFF (Uncompressed) decompressor are a majority of comprising at leastneeded to see this picture.the members of the bargaining unit . 4. A statement that the labor union is the only legitimate labor organization operating within the bargaining unit. These documents shall be certified under o ath by the employers representative and president of he recognized labor union. E ffects of recording of fact of Voluntary Recognition 1. The recognized labor uni on shall enjoy the rights, privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit. 2. A petition for certificati on election cannot be filed for 1 year from the date of entry of the voluntary r ecognition. Certification Election Who may file 1. any legitimate labor organiza tion 2. employer, when requested to bargain collectively Where to file Regional Office which issued the certificate of registration/certificate of creation. Whe n to file Anytime, except: 1. When voluntary recognition has been entered, or a valid certification, consent or run-off election has been conducted within 1 yea r prior to the filing. 2. negotiations in good faith with the employer 3. bargai ning deadlock had been submitted to conciliation or arbitration or had become th e subject of a valid notice of strike or lockout. 4. Registered CBA may file onl y within 60 days prior to the expiration of the CBA. Grounds for Denying Petitio n 1. the petitioner is not listed in the Departments registry of legitimate labor unions or that its legal personality has been revoked or cancelled with finalit y in accordance with Rule XIV of these Rules; Page 55 of 83 Procedure: Voluntary Recognition 1. If notice of voluntary recognition is suffic ient in form, number and substance, and there is no other registered labor union operating within the bargaining unit, the Regional Office shall record the fact of voluntary recognition within 10 days from receipt of notice. 2. Where notice of voluntary recognition is insufficient, the Regional Office shall notify the labor union of its findings and advise it to comply with the necessary requireme nts. If the employer or union failed to complete the requirements for voluntary recognition within 30 days from receipt of advisory, the Regional Office shall r eturn.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 2. the petition was filed before or after the freedom period of a duly registere d collective bargaining agreement; provided that the sixty-day period based on t he original collective bargaining agreement shall not be affected by any amendme nt, extension or renewal of the collective bargaining agreement; (Contract Bar) 3. the petition was filed within 1 year from entry of voluntary recognition or a valid certification, consent or run-off election and no appeal on the results o f the certification, consent or run-off election is pending; (12-month Bar/Certi fication year bar) 4. a duly certified union has commenced and sustained negotia tions with the employer in accordance with Article 250 of the Labor Code within the one-year period referred to in Section 14.c of this Rule, or there exists a bargaining deadlock which had been submitted to conciliation or arbitration or h ad become the subject of a valid notice of strike or lockout to which an incumbe nt or certified bargaining agent is a party; (Negotiation Bar) 5. in case of an organized establishment, failure to submit the 25% support requirement for the f iling of the petition for certification election. Procedure: Petition for Certif ication Election (ANNEX H) Procedure: Conduct of Certification Election (ANNEX I ) Preliminary Conference The Med-Arbiter shall conduct a preliminary conference and hearing within 10 days from the receipt of the petition to determine the fol lowing: a. the bargaining unit to be represented; b. contending labor unions; c. possibility of consent elections; d. existence of any of the bars to certificat ion election; and e. such other matters as may be relevant for the final disposi tion of the case In case the contending unions agree to a consent QuickTime and a election, the Med-Arbiter shall not issue a formal TIFF (Uncompressed) decompre ssor are the see this picture. order calling for needed to conduct of certificat ion election, but shall enter the fact of the agreement in the minutes of the he aring. Order/Decision on the Petition within 10 days from the date of the last h earing, the Med-Arbiter shall issue a formal order granting or denying the petit ion. In organized establishments, no order or decision shall be issued during th e freedom period. The order granting the petition shall state the following: a. Name of the employer or establishment b. Description of the bargaining unit c. S tatement that none of the grounds for dismissal exists d. Names of contending la bor unions e. Directive upon the employer and the contending union(s) to submit within 10 days from receipt of the order, the certified list of employees in the bargaining unit. Prohibited Grounds for Denial of Petition (must be heard and r esolved by the Regional Director in an independent petition for cancellation of registration: 1. validity of petitioning unions certificate of registration 2. le gal personality as a labor organization 3. validity of registration 4. execution of CBAs Appeal a. order granting conduct of certification election in unorganiz ed establishments NOT appealable b. all others appealed to the DOLE Sec. within 10 days from receipt thereof. Pre-election Conference Within twenty-four (24) ho urs from receipt of the assignment for the conduct of a certification election, the Election Officer shall cause the issuance of notice of pre-election conferen ce upon the contending unions and the employer. Must be scheduled within 10 days from receipt of the assignment. Must be completed within 30 days from the last hearing. Purpose of Pre-election Conference The pre-election conference shall se t the mechanics for the election and determine the following: 1. date, time and place of the election, not be later than forty-five (45) days from the date of t he first pre-election conference on a regular working day within the employers pr emises, unless circumstances require otherwise 2. list of eligible and challenge d voters 3. number and location of polling places or booths and the number of ba llots to be prepared with appropriate translations, if necessary Page 56 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 4. name of watchers or representatives and their alternates for each of the part ies during election 5. mechanics and guidelines of the election Consent Election In case the contending unions agree to a consent election, the Med-Arbiter shal l not issue a formal order calling for the conduct of certification election, bu t shall enter the fact of the agreement in the minutes of the hearing. The minut es of the hearing shall be signed by the parties and attested to by the Med-Arbi ter. The Med-Arbiter shall, immediately thereafter, forward the records of the p etition to the Regional Director or his/her authorized representative for the de termination of the Election Officer by the contending unions through raffle. The first pre-election conference shall be scheduled within ten (10) days from the date of entry of agreement to conduct consent election. (See Annex H) Effect of failure to appear during the pre-election conference considered as a waiver to b e present and to question or object to any of the agreements reached in said pre -election conference However, the non-appearing party or the employer still has the right to be furnished notices of subsequent pre-election conferences and to attend the same Qualification of Voters All employees who are members of the app ropriate bargaining unit at the time of the issuance of the order granting the c onduct of a certification election shall be eligible to vote. An employee who ha s been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for t he conduct of a certification election shall be considered a qualified voter o u nless his/her dismissal was declared valid in a final judgment at the time of th e conduct of the certification election. Inclusion-Exclusionare needed to see th is picture. of Voters In case of disagreement over the voters list or over the el igibility of voters, all contested voters shall be allowed to vote. But their vo tes shall be segregated and sealed in individual envelopes. Posting of Notices o f Election 1. at least 10 days before the actual date of the election QuickTime and a TIFF (Uncompressed) decompressor 2. in 2 most conspicuous places in the company premises Contents of the Notice 1 . the date and time of the election 2. names of all contending unions 3. the des cription of the bargaining unit and the list of eligible and challenged voters T he posting of the notice of election, the information required to be included th erein and the duration of posting cannot be waived by the contending unions or t he employer. Challenging of Votes An authorized representative of any of the con tending unions and employer Before it is deposited in the ballot box Grounds: a. that there is no employer-employee relationship between the voter and the compa ny; b. that the voter is not a member of the appropriate bargaining unit which p etitioner seeks to represent. Procedure in Challenging of Votes 1. The Election Officer shall place the ballot in an envelope. sealed in the presence of the vot er and the representatives of the contending unions and employer. indicate on th e envelope the voters name, the union or employer challenging the voter, and the ground for the challenge. envelope shall be signed by the Election Officer and t he representatives of the contending unions and employer. 2. The Election Office r shall note all challenges in the minutes of the election and shall be responsi ble for consolidating all envelopes containing the challenged votes. 3. The enve lopes shall be opened and the question of eligibility shall be passed upon only if the number of segregated voters will materially alter the results of the elec tion. Protest Any party-in-interest may file a protest based on the conduct or m echanics of the election. Protests shall be recorded in the minutes of the elect ion proceedings. Protests not so raised are deemed waived. The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, Page 57 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 arguments and evidence, within five (5) days after the close of the election pro ceedings. If not recorded in the minutes and formalized within the prescribed pe riod, the protest shall be deemed dropped. Canvassing of Votes Counted and tabul ated by the Election Officer in the presence of the representatives of the conte nding unions. Each representative entitled to a copy of the minutes of the elect ion proceedings and results of the election. The ballots and the tally sheets sh all be i. sealed in an envelope ii. signed by the Election Officer and the repre sentatives of the contending unions iii. transmitted to the Med-Arbiter, togethe r with the minutes and results of the election, within 24 hours from the complet ion of the canvass Where the election is conducted in more than one region, cons olidation of results shall be made within 15 days from the conduct thereof. Cond uct of Election and Canvass of Votes The election precincts shall open and close on the date and time agreed upon during the preelection conference. The opening and canvass shall proceed immediately after the precincts have closed. Failure of any party or the employer or his/her/their representative to appear during th e election proceedings shall be considered a waiver to be present and to questio n the conduct thereof. Certification of Exclusive Bargaining Agent The union whi ch obtained a majority of the valid votes cast shall be certified as the sole an d exclusive bargaining agent of all the employees in the appropriate bargaining unit within 5 days from the day of the election, provided no protest is recorded in the minutes of the election. Failure of Election Where the number ofQuickTim ecast in a certification votes and a TIFF (Uncompressed) decompressor are is less this picture. or consent electionneeded to seethan the majority of the number o f eligible voters and there are no material challenged votes. A failure of elect ion shall not bar the filing of a motion for the immediate holding of another ce rtification or consent election within 6 months from date of declaration of fail ure of election. Action on the motion for the immediate holding of another certi fication or consent election Within 24 hours from receipt of the motion, the Ele ction Officer shall immediately schedule the conduct of another certification or consent election within 15 days from receipt of the motion and cause the postin g of the notice of certification election at least 10 days prior to the schedule d date of election in 2 most conspicuous places in the establishment. The same g uidelines and list of voters shall be used in the election. Proclamation and Cer tification of the Result of the Election Within twenty-four (24) hours from fina l canvass of votes. There being a valid election. the Election Officer shall tra nsmit the records of the case to the Med-Arbiter Med-arbiter shall issue an orde r proclaiming the results of the election and certifying the union which obtaine d a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit, under any of the following conditions: a. no pro test was filed or, even if one was filed, the same was not perfected within the fiveday period for perfection of the protest; b. no challenge or eligibility iss ue was raised or, even if one was raised, the resolution of the same will not ma terially change the results of the elections. The winning union shall have the r ights, privileges and obligations of a duly certified collective bargaining agen t from the time the certification is issued. Run-off Election When an election w hich provides for 3 or more choices results in none of the choices (unions or no union choice) receiving a majority of the valid votes cast, the Election Officer shall motu propio conduct a run-off election within 10 days from the close of th e election proceedings between the labor unions receiving the two highest number of votes. Provided, that the total number of votes for all contending unions is at least 50% of the number of votes cast. And there are no objections or challe nges which if sustained can materially alter the results, No Union shall not be a choice in the run-off election. Page 58 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Notice of run-off elections shall be posted by the Election Officer at least fiv e (5) days before the actual date of run-off election. C. BARS TO CERTIFICATION ELECTION Art. 232. Prohibition on certification election Grounds for denying pet ition for certification election 1. Deadlock Bar 2. Contract Bar 3. 12-month bar /certification year bar 4. Negotiation Bar Contract Bar While a valid and regist ered CBA is subsisting, the BLR is not allowed to hold an election contesting th e majority status of the incumbent union. When contract bar rule not applied 1. CBA is not registered 2. CBA deregistered 3. CBA is incomplete in itself 4. CBA does not foster industrial peace 5. CBA was concluded in violation of an order e njoining the parties from entering into a CBA until the issue of representation is resolved 6. Petition is filed during the 60-day freedom period Deadlock Bar A petition for certification election cannot be entertained if, before the filing of the petition for certification election, a bargaining deadlock to which an i ncumbent or certified bargaining agent is a party, had been submitted to concili ation or arbitration or had become the subject of a valid notice of strike or lo ckout. Negotiation Bar A petition for certification election cannot be filed if the duly certified union has commenced and sustained negotiations in good faith with the employer in accordance with Art. 250 of the Labor Code within 1 year pr ior to the filing of the petition for certification election. are needed to Certification Year Rule Bar see this picture. No petition for cert ification election may be filed within one year from the date of a valid certifi cation, consent, or run-off election or from the date of voluntary recognition. QuickTime and a TIFF (Uncompressed) decompressor The 12 month prohibition presupposes that there was an actual conduct of electio n, i.e. ballots were cats and there was a counting of votes. In a case where the re was no certification election conducted precisely because the first petition was dismissed on the ground that it did not include all the employees who should be properly included in the collective bargaining unit, the certification year bar does not apply. Capitol Medical Center Alliance, etc. v. Laguesma, GR No. 11 8915, 04 February 1997 But in one case the winning union failed to conclude a CB A with the employer within one year, hence another union filed a petition for ce rtification election. Although filed outside the 12-month bar, the petition was nonetheless dismissed, and the court upheld the dismissal and explained that ord inarily, a bargaining agent who failed to secure a CBA within 12 months could be suspected as a tool of management and should deserve to be replaced. But if cir cumstances show that the reason for not having concluded a CBA was not the unions fault, such union should not be blamed, and a certification election should not be authorized even though no CBA has been concluded despite passage of 12 month s. The situation takes the nature of a deadlock bar. Certification year rule will not apply if in fact there was a failure of election because less than majority of the CBU members voted. Another petition for certification election may be fil ed within 6 months. Certification year rule will apply even if the No union choice won. (Samahang Manggagawa sa Permex v. Secretary of Labor, GR No. 107792, 02 Ma rch 1998) D. ADMINISTRATION IF AGREEMENT; GRIEVANCE AND VOLUNTARY ARBITRATION Ar t. 260. Grievance machinery and voluntary arbitration. Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators Art. 262. Jurisdiction over other labor disputes Art. 277. Miscellaneous provisions. (f) A special Volu ntary Arbitration Fund is hereby established in the Board to subsidize the cost of voluntary arbitration in cases involving the interpretation and implementatio n of the Collective Bargaining Agreement, including the Arbitrators fees, and for such other related purposes to promote and develop voluntary arbitration. The B oard shall administer the Special Voluntary Arbitration Fund in Page 59 of 83 R. Transport Corp v. Laguesma, GR No. 106830, 16 November 1993

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 accordance with the guidelines it may adopt upon the recommendation of the Counc il, which guidelines shall be subject to the approval of the Secretary of Labor and Employment. Continuing funds needed for this purpose in the initial yearly a mount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989 an nual general appropriations acts. The amount of subsidy in appropriate cases sha ll be determined by the Board in accordance with established guidelines issued b y it upon the recommendation of the Council. The Fund shall also be utilized for the operation of the Council, the training and education of Voluntary Arbitrato rs, and the Voluntary Arbitration Program. (g) The Ministry shall help promote a nd gradually develop, with the agreement of labor organizations and employers, l abor-management cooperation programs at appropriate levels of the enterprise bas ed on the shared responsibility and mutual respect in order to ensure industrial peace and improvement in productivity, working conditions and the quality of wo rking life. (h) In establishments where no legitimate labor organization exists, labor-management committees may be formed voluntarily by workers and employers for the purpose of promoting industrial peace. The Department of Labor and Emplo yment shall endeavor to enlighten and educate the workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of this Code. Establishment of Grievance Machinery 1. Agreement by the parties 2. Grievance committee shall be created within 10 days from the signing of the CBA. Grievance committee shall be composed of at least 2 representatives each from the members of the bargaining unit and the employer, unless otherwise agreed upon by the parties. o Representatives of the employers designated by the union. are needed see this picture. Disputes under GrievancetoMachinery 1. interpretati on or implementation of the CBA 2. interpretation or enforcement of company pers onnel policies QuickTime and a TIFF (Uncompressed) decompressor 1. Grievances arising from the implementation or interpretation of CBAs. 2. Aris ing from interpretation or enforcement of company personnel policies 3. Wage dis tortion issues arising from the application of any wage orders in organized esta blishments 4. Arising from interpretation and implementation of the productivity incentive programs under RA 6971 Any other labor disputes upon agreement by the parties. The parties may choose to submit the dispute to voluntary arbitration proceedings before or at stage of the compulsory arbitration proceedings. Powers of the Voluntary Arbitrators 1. hold hearings 2. receive evidence 3. take whate ver action is necessary to resolve the dispute. The voluntary arbitrator may con ciliate or mediate to aid the parties in reaching a voluntary settlement. Proced ure: Voluntary Arbitration All parties to the dispute shall be entitled to atten d the arbitration proceedings. The attendance of any third party or the exclusio n of any witness from the proceedings shall be determined by the voluntary arbit rator or panel of voluntary arbitrators. Hearing may be adjourned for cause or u pon agreement by the parties. It shall be mandatory for the voluntary arbitrator to render an award or decision within 20 calendar days from the date of submiss ion for resolution unless the parties agree otherwise. o Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award within the prescribed period, shall upon complaint of a party, be sufficient ground fo r the Board to discipline said voluntary arbitrator, pursuant to the guidelines issued by the Secretary. o In cases that the recommended sanction is de-listing, it shall be unlawful for the voluntary arbitrator to refuse or fail to turn ove r to the board, for its further disposition, the records of the case within 10 c alendar days from demand thereof. Decision final and executory after 10 calendar days from receipt of the copy by the parties. No MR allowed. Page 60 of 83 Procedure in handling grievances (ANNEX J) Jurisdiction of Voluntary Arbitrators

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 The voluntary arbitrator or labor arbitrator (if there voluntary arbitrator is a bsence or incapacitated) may issue a writ of execution upon motion of any intere sted party. Voluntary arbitrator shall turn over the records of the case to the regional branch of the Board within 10 days upon satisfaction of the final award . E. LABOR MANAGEMENT COOPERATION SCHEMES Creation of Labor Management and Other Councils The Department shall promote the formation of labor-management council s in organized and unorganized councils. Purpose of the Labor-Management Council s To enable the workers to participate in policy and decision-making processes i n the establishment, insofar as said processes will directly affect their rights , benefits and welfare. Not covered by the Labor-Management Councils 1. Those co vered by CBAs 2. Traditional areas of bargaining Services to be rendered by the Department in line with the said policy 1. Conduct awareness campaigns 2. Assist the parties in setting up labor-management structures, functions and procedures 3. Provide process facilitators upon request of the parties 4. Monitor the acti vities of labor-management structures as may be necessary and conduct studies on best practices aimed at promoting harmonious labor-management relations. Select ion of employees representatives to the council 1. Organized establishments: Nomi nated by the exclusive bargaining representatives 2. Where there is no legitimat e labor organization: by the employees at large. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. Concerted Action an activity undertaken by two or more employees, by one on beha lf of others Strike any temporary stoppage of work by the concerted action of th e employees as a result of an industrial or labor dispute Lockout temporary refu sal of any employer to furnish work as a result of an industrial or labor disput e Internal union dispute includes all disputes or grievances arising from any vi olation of or disagreement over any provision of the constitution and by laws of a union, including any violation of the rights and conditions of union membersh ip provided for in this Code Strike-breaker any person who obstructs, impedes, o r interferes with by force, violence, coercion, threats, or intimidation any pea ceful picketing affecting wages, hours or conditions of work or in the exercise of the right of self-organization or collective bargaining Strike Area establish ment, warehouses, depots, plants or offices, including the sites or premises use d as runaway shops, of the employer struck against, as well as the immediate vic inity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said establishment Characteristics of a Strike 1. There must be an employer-employee relationship. 2. Existence of a dispute. 3. E mployment relation is deemed to continue although in a state of belligerent susp ension. 4. There is temporary work stoppage. 5. Work stoppage is done through co ncerted action. 6. The striking group is a legitimate labor organization. In cas e of bargaining deadlock, it must be the employees sole bargaining representative . Grounds for lockout 1. Collective Bargaining Deadlock 2. Unfair Labor Practice violations of CBA must be gross to be considered as ULP Conversion Doctrine A s trike may start as economic and, as it progresses, becomes ULP, or vice-versa. IV. STRIKES, LOCKOUTS AND CONCERTED ACTIONS Art. 263. Strikes, picketing and loc kouts Art. 264. Prohibited activities Art. 265. Improved offer balloting. Page 61 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 When strike or lockout cannot be declared 1. Violations of CBA which are not gro ss. 2. Grounds involving inter/intra union disputes 3. When there is no notice o f strike or lockout or without the strike or lockout vote 4. After assumption of jurisdiction by the Secretary 5. After certification or submission of dispute t o compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for strike or lockout. Who may declare a strike or lockout 1. A ny legitimate labor organization 2. Any certified or duly recognized bargaining representative 3. Employer If there is certified or duly recognized bargaining r epresentative, any legitimate labor organization may declare a strike but only o n grounds of unfair labor practice. Notice of strike or lockout 1. In case of ba rgaining deadlocks: at least 30 days before the intended date of strike 2. In ca se of unfair labor practice: at least 15 days before the intended date of strike 3. In case of ULP involving the dismissal of a union officer which may constitu te union-busting: union may take action immediately after the strike vote and th e submission of the results of the strike vote to the regional branch of the Boa rd Contents of the notice of strike or lockout 1. Names and addresses of employe r 2. Union involved 3. Nature of industry to which the employer belongs 4. Numbe r of union members 5. Workers in the bargaining unit 6. Other relevant data 7. I n case of bargaining deadlocks: the unresolved issues, written proposals of the union, counterproposals of the employer and proof of request for conference to s ettle differences 8. In case of unfair labor practice: the acts complained of, a nd the efforts taken to resolve QuickTime and a the dispute TIFF (Uncompressed) d ecompressor are needed to see this picture. parties to submit the dispute to voluntary arbitration. The regional branch of t he Board may, upon agreement of the parties, treat a notice as a preventive medi ation case. During the proceedings, the parties shall not do any act which may d isrupt or impede the early settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good faith and to participate fully and promptly in the conciliation meetings called by the regional branch of the Boar d. A notice, upon agreement of the parties, may be referred to alternative modes of dispute resolution, including voluntary arbitration. Preventive Mediation Th e regional branch may treat the notice as preventive mediation case upon agreeme nt of the parties. Strike or lockout vote 1. approved by majority of total union membership or by majority of the BOD or partners 2. by a secret ballot 3. in a meeting called for that purpose The regional branch may supervise the conduct of the secret balloting at its own initiative or upon request of any party. Notice of the meeting must be given at least 24 hours before such meeting, and the res ults of the voting must be given at least 7 days before the intended strike or l ockout to the regional branch of the Board. This is subject to the cooling-off p eriod. Lapanday Workers Union, et. al. v. NLRC, 248 SCRA 96 (1995) The result of the strike (or lockout voting) should be reported to the NCMB at least 7 days be fore the intended strike or lockout, subject to the cooling off period. This mea ns that after the strike vote is taken and the result reported to NCMB, seven da ys must pass before the union can actually commence the strike. This seven-day r eporting period is intended to give the Dept. of Labor and Employment an opportu nity to verify whether the projected strike really carries the imprimatur of the majority of the union members. Samahan ng Manggagawa in Moldex Products, et. al . v. NLRC, et.al. GR No. 119467, 01 February 2000 A strike tagged without the su bmission of the result of the strike vote is illegal. Page 62 of 83 Board shall inform the concerned party in case notice does not conform with the requirements. Action on notice of strike or lockout Upon receipt of the notice, the regional branch of the Board shall exert all efforts at mediation and concil iation to enable the parties to settle the dispute amicably. It shall also encou rage the

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 When labor may strike or when the employer may lock out its workers If the dispu te remain unsettled after the lapse of the requisite number of days from the fil ing of the notice of strike or lockout and of the results of the election. The r egional branch of the Board shall continue mediating and conciliating. Prohibite d activities during strikes and lockouts 1. strike or lock-out without first hav ing bargained collectively strike or lock-out without the necessary notice being filed with the DOLE 2. strike or lock-out without the necessary vote first havi ng been obtained and reported to the DOLE 3. strike or lock-out after DOLE has a ssumed jurisdiction or the President or after certification or submission of dis pute to the compulsory arbitration/voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout 4. knowingly parti cipating in illegal strike or knowingly participates in the commission of illega l acts during a strike ground for termination of employment 5. obstruct, impede, or interfere with by force, violence, coercion, threats, or intimidation any pe aceful picketing by employees during any labor controversy or shall abeit or aid such obstruction or interference 6. employment or use of any strikebreaker/ emp loyed as a strike breaker 7. bringing in, introducing, or escorting by any publi c officer or employee, including officers and personnel of the AFP or PNP, or an y armed person in any manner of any individual who seeks to replace strikers in entering or leaving the premises of a strike area or work in place of strikers 8 . commit any act of violence, coercion or intimidation while engaged in picketin g or obstruct the ingress or egress from the employer s premises for lawful purp oses or obstruct public thoroughfares (must be pervasive and widespread/consiste ntly and deliberately QuickTime and a resorted to as a matter of policy) TIFF (Un compressed) decompressor are needed to see this picture. When at least a majority of the union members vote to accept the improved offer, the striking workers shall immediately return to work and the employer shall th ereupon re-admit them upon the signing of the agreement. 2. In case of lockout T he regional branch of the Board shall also conduct a referendum by secret ballot ing on the reduced offer of the union. th on or before the 30 day of the lockout . When at least a majority of the board of directors or trustees or the partners holding the controlling interest in the case of partnership vote to accept the reduced offer, the workers shall immediately return to work and the employer sha ll thereupon readmit them upon the signing of the agreement. Injunction GR: No c ourt or entity shall enjoin any picketing, strike or lockout. Exceptions: 1. Whe n prohibited or unlawful acts are being or about to be committed that will cause grave or irreparable damage to the complaining party. 2. National Interest Assu mption of Jurisdiction by DOLE Secretary 1. Discretionary In his opinion there e xists a labor dispute causing or likely to cause a strike or lockout in an INDUS TRY INDISPENSABLE TO THE NATIONAL INTEREST may certify the same to the commissio n for COMPULSORY ARBITRATION Effect: AUTOMATICALLY ENJOINS the intended on impen ding strike or lockout but if one has already taken place, all striking or locke d out employees SHALL IMMEDIATELY RETURN TO WORK and the employer shall immediat ely resume operations and re-admit all workers under the same terms and conditio ns prevailing before the strike or lock-out 2. Mandatory: (within 24 hours) In l abor disputes adversely affecting the continued operation of HOSPITALS, CLINICS, OR MEDICAL INSTITUTIONS May assume jurisdiction or certify it to the NLRC for c ompulsory arbitration Duty of striking union or locking out employer to provide and maintain an effective Page 63 of 83 Improved Offer Balloting 1. In case of strike Regional branch of the Board shall , conduct a referendum by secret balloting on the improved offer of the employer . on or before the 30th day of strike. at its own initiative or upon the request of any affected party.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 SKELETAL WORKFORCE of medical and other health personnel, where movement and ser vice shall be unhampered and unrestricted as are necessary to insure the proper and adequate protection of the life and health of its patients most especially e mergency cases for the duration of the strike or lock-out Power of the President under Art. 263(g) 1. may determine the industries, which are in his opinion ind ispensable to national interest 2. may intervene at any time and assume jurisdic tion over any such labor dispute in order to settler or terminate the same Decis ion of the President, DOLE Secretary is final and executory after receipt thereo f by the parties. Sarmiento v. Tuico, 162 SCRA 676 (1988) The return-to-work ord er not so much confers a right as it imposes a duty. While as a right it may be waived, it must be discharged as a duty even against the workers will. Returning to work in this situation is not a matter of option or voluntariness but of obli gation. If the stoppage of work will be unfruitful not only to bith the employer and the employees, more particularly if the national economy will suffer becaus e if the resultant reduction in our export earnings and our dollar reserves, not to mntion possible cancellation of the contracts of the company with foreign ex porters, the labor dispute may properly be certified to the National Labor Relat ions Commission, to avoid such a development, with the return-to-work order foll owing as a mater of course under the law. Where the return to work order is issu ed pending the determination of the legality of the strike, it is not correct to say that it may be enforced only if he strike is legal and may be disregarded i f illegal. Precisely, the purpose of the return to work order is to maintain the status quo while the determination is being made. The discretion to assume juri sdiction may be exercised by TIFF (Uncompressed) decompressor Labor and the Quic kTime and a of Secretary are needed to Employment without the see this picture. o f prior notice necessity of hearing given to any of the parties disputants (Magn olia Poultry Employees Union, et.al. v. Sanchez GR. Nos. 76227-28, 05 November 1 986) Consequences of Illegal Strike Good-Faith Doctrine A strike may be consider ed legal when the union believed that the respondent company committed unfair la bor acts and the circumstances warranted such belief in good faith although subs equently such allegation of unfair labor practices are found out as not true. (P eoples Industrial and Commercial Employees and Workers Organization (FFW) v. Peop les Industrial and Commercial Corp. GR No. 37687 15 March 1982) Rule on Wages of Strikers GR: Strikers are not entitled to their wages during the period of a str ike, even if the strike is legal. Exceptions: 1. In case of a ULP STRIKE, in the discretion of the authority deciding the case. 2. Where the strikers voluntaril y and unconditionally offered to return to work, but the employer refused to acc ept the offer [e.g. of an unconditional offer: we will return tomorrow and NOT willin g to return provided] o They are entitled to backwages from the date the offer w as made. 3. Where there is RETURN-TO-WORK ORDER and the employees are discrimina ted against. o They are entitled to backwages from the date of discrimination. R ule on Reinstatement of Striking Workers GR: Striking employees are entitled to reinstatement, regardless of whether or not the strike was the consequence of th e employers ULP. Exceptions: The following strikers are NOT entitled to reinstate ment: 1. union officers who knowingly participate in an illegal strike. 2. any s triker/union member who knowingly participates in the commission of illegal acts during the strike. Sarmiento v. Tuico, 162 SCRA 676 (1988) The return-to-work o rder should benefit only those workers who comply with it and, regardless of the outcome of the compulsory arbitration proceedings, are entitled to be paid for the work they have actually performed. Conversely, those workers who refuse to o bey said order and instead wage a strike are not entitled to be paid for work no t done or to reinstatement to the positions they have abandoned by their refusal to return thereto as ordered. St. Scholasticas College v. Torres, GR No. Page 64 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 100158, 19 June 1992 A return to work order is immediately effective and executo ry notwithstanding the filing of a motion for reconsideration. It must be strict ly complied with even during the pendency of any petition questioning its validi ty. The respective liabilities of striking union officers and members who failed to immediately comply with the return-to-work order is outlined in Art. 264 of the Labor Code which provides that any declaration of a strike or lockout after the Secretary of Labor and Employment has assumed jurisdiction over the labor di spute is considered an illegal act. Any worker or union office who knowingly par ticipates in a strike defying a return-to-work order may, consequently be declare d to have lost his employment status. Batangas Laguna Tayabas Bus Company v. NLRC , GR No. 101858, 21 August 1992 But to justify dismissal, the defiance of the re turnto-work order must be proved. In one case the Court said that the mere fact that the majority of the strikers were able to return to work does not necessari ly mean that the rest deliberately defied the return to work order or that they had been sufficiently notified thereof. As the Solicitor General correctly adds, some of them may have left Metro Manila and did not have enough time to return during the period given by the period given by petitioner. Gold City Integrated Port Services, Inc. v. NLRC, 245 SCRA 627 (1995) Art. 264 makes a distinction be tween workers and union officers who participate in a strike. An ordinary striki ng worker cannot be terminated for mere participation in an illegal strike. Ther e must be proof that he committed illegal acts during a strike. A union officer, on the other hand, may be terminated from work when he knowingly participates i n an illegal strike, or when he commits an illegal act during a strike. - A prob ationary employee is considered regular after 6 months, becomes regular. May be terminated only for just / authorized causes Test to determine regular employmen t Universal Robina Corporation v. Catapang, GR No. 164736. October 14, 2005 The primary standard of determining regular employment is the reasonable connection between the particular activity performed by the employee to the usual trade or business of the employer. The test is whether the former is usually necessary or desirable in the usual business or trade of the employer. Also, the performance of a job for at least a year is sufficient evidence of the jobs necessity if not indispensability to the business. This is the rule even if its performance is n ot continuous and merely intermittent. The employment is considered regular, but only with respect to such activity and while such activity exists. The practice of entering into employment contracts which would prevent the workers from beco ming regular should be struck down as contrary to public policy and morals. Casu al Employment Activity performed is not usually necessary or desirable in the us ual business or trade of the employer, not project and not seasonal Except: if h e has rendered at least 1 year of service, whether such service is continuous or broken, he is considered a REGULAR employee with respect to the activity in whi ch he is employed and his employment shall continue while such activity exists. Despite the distinction between regular and casual employment, every employee sh all be entitled to the same rights and privileges, and shall be subject to the s ame duties as may be granted by law to regular employees during the period of th eir actual employment. Fixed-Term Employment Period is agreed upon knowingly and voluntarily by the parties without force, duress, or improper pressure exerted on the employee. Brent case: fixed-term employment repealed by LC. But the Civil Code, a general law, allows fixedterm employment Employee hired on a fixed-term is regular if job is necessary and desirable to business of employer. (Philips Semiconductor v. Fadriquela, GR No. 141717, April 2004) Page 65 of 83 V. POST-EMPLOYMENT A. REGULAR, CASUAL, QuickTime and a PROBATIONARY EMPLOYMENT TI FF (Uncompressed) decompressor are needed to see this picture. Art. 280. Regular and casual employment Art. 281. Probationary employment Regula r Employment Engaged to perform tasks usually necessary and desirable to the bus

iness of the employer Regular employment does not mean permanent employment

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Project Employment One whose employment has been fixed for a specific project or undertaking the completion of which has been determined at the time of engageme nt of the employee; the period is not the determining factor, so that even if th e period is more than 1 year, employee does not necessarily become regular Marag uinot v. NLRC, 284 SCRA 539 (1998) Repeated hiring on a project to project basis is considered necessary and desirable to the business of the employer. Thus, em ployee is regular. FilSystems v. Puente, GR No. 153832, 18 March 2005 Repeated h iring does not necessarily mean regular employment. Day Certain Rule project emplo yment ends on a certain date does not end on an exact date, but on the completio n of the project. Phil. Global Communication case: usual and desirable does not matter because employer hires without intent of making them regular. Regularizat ion is not a management prerogative. It is a mandate of law. (PAL v. Pascua, 15 August 2003) Nature of employment determines regular employment. Art. 280 does n ot apply to OFWs. (LC does not apply to migrant workers, RA 8042 does.) Poseidon Fishing case: if engaged in deep-sea fishing, locally-hired employees, 280 appl ies Probationary Employment GR: Not to exceed 6 months Exceptions: a. covered by an apprenticeship agreement stipulating a longer period b. voluntary agreement of parties (especially when nature of work requires a longer period) c. the empl oyer gives the employee a second chance to pass the standards set Termination of Probationary Employment a. just / authorized causes b. when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to employee at the time of his engagement If allowed to work after the probationary period, he shall be considered a REGULAR employee QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. After lapse of probationary period (6 months), the employee becomes regular. (Vo yeur Visage, 2005) Probationary employee may be dismissed before end of the prob ationary period. Aberdeen Court, Inc. v. Agustin, GR No. 149371, 13 April 2005 T here is probationary employment where the employee, upon his engagement, is made to undergo a trial period during which the employer determines his fitness to q ualify for regular employment, based on reasonable standards made known to him a t the time of engagement. The services of an employee who has been engaged on pr obationary basis may be terminated only for a just cause, when he fails to quali fy as a regular employee in accordance with the reasonable standards prescribed by the employer. In all cases of probationary employment, the employer shall mak e known to the employee the standards under which he will qualify as a regular e mployee at the time of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee. Mariwasa Manufactu ring, Inc. v. Leogardo, Jr., 26 January 1989 Issue: May the employer and the emp loyee validly agree to extend the probationary period beyond six months? Held: Y ES. Such an extension may be lawfully agreed upon, despite the seeming restricti ve language of Article 281. A voluntary agreement extending the original probati onary period to give the employee a second chance to pass the probation standard s constitutes a lawful exception to the statutory limit. UST v. NLRC, 15 Februar y 1990 Issue: For private school teachers, what are the legal requirements for a cquisition of permanent employment? Held: (1) The teacher is a full-time teacher ; (2) the teacher must have rendered three consecutive years of service; and (3) such service must have been satisfactory. Seasonal Employment Page 66 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Work or services to be performed is seasonal in nature and the employment is for the duration of the season Hacienda Fatima v. National Federation of Sugarcane Workers-Food and General Trade, GR No. 149440, 28 January 2003 The fact that sea sonal workers do not work continuously for one (1) whole year but only for the d uration of the season does not detract from considering them in regular employme nt since in a litany of cases, the Court has already settled that seasonal worke rs who are called to work from time to time and are temporarily laid off during off-season are not separated from service in said period, but merely considered on leave until re-employed. Workers who have performed the same tasks every seas on for several years are considered regular employees for their respective tasks . B. SECURITY OF TENURE Art. 279. Security of tenure Applies to all establishmen t or undertakings whether for profit or not Project employees have no security o f tenure. (see how full backwages are computed) Full backwages are computed from the time wages are withheld up to the time the employee is actually reinstated. In the case of project employees, you cannot demand wages for the time when the re is no project. Thus, 279 does not apply to project employees. C. JUST CAUSES, AUTHORIZED CAUSES, CONSTRUCTIVE DISMISSAL Art. 282. employer Just Causes for Te rmination by Serious Misconduct Improper or wrong conduct; the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, willful in character, and implies wrongful intent and not mere error in ju dgment. To be serious within the meaning and intendment of the law, the miscondu ct must be of such grave and aggravated character and not merely trivial or unim portant (Villamor Golf Club v. Pehid, 04 October 2005) Elements of Serious Misco nduct 1. serious; 2. relate to the performance of the employees duties; 3. employ ee has become unfit to continue working for the employer (Phil. Aeolus v NLRC, 2 000) Elements of Willful Disobedience 1. employees assailed conduct was willful o r intentional, the willfulness being characterized by a wrongful and perverse at titude; 2. the order violated must have been reasonable, lawful, made known to t he employee and must pertain to the duties which he has been engaged to discharg e (Micro Sales Operation Network v. NLRC,11 October 2005) Gross and Habitual Neg lect GROSS and HABITUAL must concur together. Implies a want or absence of or fa ilure to exercise slight care or diligence, or the entire absence of care. It ev inces a thoughtless disregard of consequences without exerting any effort to avo id them. Previous infractions by the employee should have been acted upon approp riately by the employer before terminating the former. Fraud or Willful Breach o f Trust Can be committed only by confidential and managerial employees - confide ntial employees charged with custody and protection of employers property like a cashier (this is different from the confidential employees in labor relations) A c riminal case need not be actually filed. Commission of acts constituting a crime is sufficient. Analogous Cases; Examples violation of safety rules gross ineffi ciency wrongful acts of employee against the company violation of code of discip line Page 67 of 83 Grounds: (SoMe WiD GAN FWeT CO) 1. Serious Misconduct or Willful Disobedience by the employee of the lawful orders of his employer or representative in connecti on with his work (work-related) QuickTime 2. Gross And habitual Neglect and a the employee of by TIFF (Uncompressed) decompressor are needed to see this picture. his duties 3. Fraud or Willful breach by employee of the Trust reposed in him b y his employer or duly authorized representative (not mere suspicion) 4. Commiss ion of a Crime or offense by the employee against the person of his employer or any immediate member of his family or duly authorized representative 5. Other an alogous cases

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 failure to heed an order not to join an illegal picket immorality sexual harassm ent Art. 283. Authorized Causes for Termination Grounds: 1. Introduction of labo r-saving devices 2. Redundancy 3. Retrenchment 4. Closure of business as a resul t of grave financial loss 5. Closure not due to losses Redundancy Redundancy exi sts where the services of an employee are in excess of what is reasonably demand ed by the actual requirements of the enterprise. A position has become superfluo us as an outcome of a number of factors such as overhiring of workers, decreased volume of business, dropping of a particular product line or service activity p reviously manufactured or undertaken by the enterprise (thus it only requires su perfluity not duplication of work) The redundancy SHOULD NOT have been created b y the EMPLOYER. Validity of a Redundancy Program DAP v. CA, GR No. 165811, 14 De cember 2005 The employer must comply with the following requisites to ensure the validity of the redundancy program: 1. a written notice served on both the empl oyees and the Department of Labor and Employment (DOLE) at least one month prior to the intended date of retrenchment 2. payment of separation pay equivalent to at least one month pay or at least one month pay for every year of service, whi chever is higher 3. good faith in abolishing the redundant positions 4. fair and reasonable criteria in ascertaining what positions are to be declared redundant and QuickTime and a accordingly abolished TIFF (Uncompressed) decompressor are needed to see this picture. 2. The substantial loss apprehended must be reasonably imminent. 3. It be reason ably necessary and likely to effectively prevent the expected losses. The employ er should have taken other measures prior or parallel to retrenchment to foresta ll losses. 4. The alleged losses if already realized, and the expected imminent losses must be proved by sufficient and convincing evidence. (Oriental Petroleum & Minerals Corp. v Fuentes, 14 October 2005) Difference between redundancy and retrenchment: In redundancy, company has no financial problems; in retrenchment, company suffers from financial problems. Closure Not Due to Losses In cases of closure not due to losses, it must NOT be in BAD FAITH. If the dismissal is base d on a just cause under Article 282 but the employer failed to comply with the n otice requirement, the sanction to be imposed upon him should be tempered becaus e the dismissal process was, in effect, initiated by an act imputable to the emp loyee. If the dismissal is based on an authorized cause under Article 283 but th e employer failed to comply with the notice requirement, the sanction should be stiffer because the dismissal process was initiated by the employers exercise of his management prerogative Constructive Dismissal 1. No formal dismissal 2. The employee is placed in a situation by the employer such that his continued employ ment has become UNBEARABLE. Veterans Security Agency v. Vargas, GR No. 159293. 1 6 December 2005 Constructive dismissal exists when an act of clear discriminatio n, insensibility or disdain on the part of the employer has become so unbearable as to leave an employee with no choice but to forego continued employment. Aban donment, as a just and valid cause for termination, requires a deliberate and un justified refusal of an employee to resume his work, coupled with a clear absenc e of any intention of returning to his or her work. Abandonment is incompatible with constructive dismissal. Retrenchment Resorted primarily to avoid or minimize business losses. Standards to Justify Retrenchment 1. The losses expected should be substantial and not mer ely de minimis in extent. Page 68 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Article 286 applies only when there is a bona fide suspension of the employers op eration of a business or undertaking for a period not exceeding 6 months. In sec urity agency parlance, being placed off detail or on floating status means waiting to be posted. It is the inherent prerogative of an employer to transfer and reassig n its employees to meet the requirements of its business. Be that as it may, the prerogative of the management to transfer its employees must be exercised witho ut grave abuse of discretion. The exercise of the prerogative should not defeat an employee s right to security of tenure. The employers privilege to transfer it s employees to different workstations cannot be used as a subterfuge to rid itse lf of an undesirable worker. Art. 284. Disease as ground for termination Disease as Ground for Termination When his continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees There is a certi fication by a competent public health authority that the disease is of such natu re or at such stage that it cannot be cured within a period of 6 months even wit h proper medical treatment The requirement for a medical certificate cannot be d ispensed with; otherwise, it would sanction the unilateral and arbitrary determi nation by the employer of the gravity or extent of the employees illness and thus defeat the public policy on the protection of labor. (Manly Express v. Payong, 25 October 2005) Art. 285. Termination by employee Termination without Just Caus e 1. at least 1 month prior notice 2. employee may be held liable for damages fo r failure to give notice Termination with Just Cause 1. Grounds a. serious insul t on the honor and person of QuickTime and a employee by the employer or his TIFF (Uncompressed) decompressor are needed to see this picture. representative b. i nhumane and unbearable treatment accorded to the employee c. commission of a cri me against person of the employee or any of the immediate members of his family d. other causes analogous to the foregoing 2. Notice not necessary Resigning emp loyee not entitled to separation pay, unless company policy gives it. No Separat ion Pay in resignation; Exceptions; Waivers and Quitclaims, when valid Candido A lfaro v. CA, et al., GR No. 140812, 28 August 2001 Generally, separation pay nee d not be paid to an employee who voluntarily resigns. However, an employer who a grees to expend such benefit as an incident of the resignation should not be all owed to renege in the performance of such commitment. Not all waivers and quitcl aims are invalid as against public policy. If the agreement was voluntarily ente red into and represented a reasonable settlement, it is binding on the parties a nd may not later be disowned, simply because of a change of mind. Art. 286. When employment not deemed terminated The bona-fide suspension of the operation of a business or undertaking for a period not exceeding 6 months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer o r from his relief from the military or civic duty. Temporary Lay-off Must not ex ceed 6 months. Options of employer (i.e. security agency) in case of pull out by client: 1. retrenchment must give notice 1 month before retrenchment; pay separ ation pay 2. closure must comply with 1 month advanced notice; no need to pay se paration pay Abandonment means the deliberate, unjustified refusal of an employe e to resume his/her employment Two elements must be proved 1. the intention to a bandon 2. an overt act from which it may be inferred that the employee has no mo re intent to resume his/her work Page 69 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 This is negated by immediate filing of an action for ILLEGAL DISMISSAL. Employme nt Not Deemed Terminated a. bona fide suspension of the operation of a business/ undertaking for a period of not more than 6 months b. fulfillment by the employe e of a military or civic duty Employer shall reinstate the employee to his forme r position without loss of seniority rights IF employee indicates his desire to resume his work not later than 1 month from resumption of operations of his empl oyer or his relief from the military or civic duty Preventive Suspension justifi ed where the employees continued employment poses a serious and imminent threat t o the life or property of the employer or of his co-workers (there is a REASONAB LE POSSIBILITY of the employee posing such a threat) must not exceed 1 month It is only for the purpose of investigating the offense to determine whether he is to be dismissed or not. IT IS NOT A PENALTY. if more than 1 month, the employee must be actually reinstated or reinstated in the payroll officers liable only if with malice and bad faith Floating Status It is legal, such as in the case of s ecurity guards who have no assignment. Such a status should not exceed six-month s; if it does, it amounts to a dismissal. D. DUE PROCESS Art. 277. Miscellaneous Provisions (b) Subject to the constitutional right of workers to security of te nure and their right to be protected against dismissal except for a just and aut horized cause and without prejudice to the requirement of notice under Article 2 83 of this Code, the employer QuickTime and a shall furnish the worker whose empl oyment is sought TIFF (Uncompressed) decompressor are written to be terminated a needed to see this picture. containing a notice statement of the causes for ter mination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordanc e with company rules and regulations promulgated pursuant to guidelines set by t he Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legal ity of his dismissal by filing a complaint with the regional branch of the Natio nal Labor Relations Commission. The burden of proving that the termination was f or a valid or authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pe nding resolution of the dispute in the event of a prima facie finding by the app ropriate official of the Department of Labor and Employment before whom such dis pute is pending that the termination may cause a serious labor dispute or is in implementation of a mass layoff. In cases of dismissal, employer has the burden of proof to show that the dismissal falls under the just and authorized causes. (Tolentino v. PLDT, GR No. 160404, 08 June 2005) Due process refers to the proce ss to be followed; burden of proof refers to the amount of proof to be adduced I n money claims, the burden of proof as to the amount to be paid the employee res ts upon the employer since he is in custody of documents that would be able to p rove the amount due, such as the payroll. In cases of just and authorized causes , due process must be observed. Due Process Requirements under Art. 277 (b) Auth orized Causes Just Causes (282) (283) Twin Notice (Before and One notice only Af ter Investigation - notice to employee1 month before - notice of the charge inst allation of LSD, - notice that employee retrenchment, or is guilty (after closur e investigation) - 1 month advanced Investigation notice to DOLE Non-compliance with due process requirements Before the Agabon case, the doctrine in Serrano v. NLRC (GR No. 117040, 27 January 2000) was followed. It states that termination due to authorized cause without giving the notice required under the Labor Code is not a violation of due process. It is valid although declared irregular / ine ffectual. He shall however be entitled to SEPARATION PAY AND BACKWAGES. Agabon v . NLRC, 17 November 2004 modifies Serrano Dismissal for an authorized or just ca use, w/o procedural due process is not an illegal dismissal Page 70 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 which warrants backwages; employee entitled only to nominal damages. The Court i nterpreted Art. 279 to the effect that termination is illegal only if it is not for any of the justified or authorized causes provided by law. Payment of backwa ges and other benefits, including reinstatement, is justified only if the employ ee was unjustly dismissed. The Court decided to follow Wenphil that where the di smissal is for a just cause, the lack of statutory due process should not nullif y the dismissal or render it illegal. However, the employer should indemnify the employee for the violation of his rights. The indemnity should be stiffer than that provided in Wenphil to discourage the abhorrent practice of dismiss now, pay later. The indemnity should be in the form of nominal damages, which is adjudica ted in order that a right of plaintiff, which has been violated by the defendant , may be vindicated. Jaka Food Processing v. Pacot, 28 March 2005 If the dismiss al is based on a just cause under Article 282 but the employer failed to comply with the notice requirement, the sanction to be imposed upon him should be tempe red because the dismissal process was, in effect, initiated by an act imputable to the employee. On the other hand, if the dismissal is based on an authorized c ause under Article 283 but the employer failed to comply with the notice require ment, the sanction should be stiffer because the dismissal process was initiated by the employers exercise of his management prerogative. SC distinguished betwee n non-compliance of due process requirements in just and authorized causes. Auth orized causes Php 50,000 nominal damages Just causes Php 30,000 nominal damages (because in just causes, employee is being dismissed due to his fault) Industria l Timber Corp. v. Ababon, 30 March 2006 Factors to be taken into account in the determination of the amount of nominal damages in dismissal cases: 1. the author ized cause invoked, whether it was a retrenchment or a closure or cessation of Q uickTime and a operation of the (Uncompressed) decompressor establishment due to serious TIFF are business losses needed to see this picture. reverses or or fina ncial otherwise 2. the number of employees to be awarded 3. the capacity of the employers to satisfy the awards, taken into account their prevailing financial s tatus as borne by the records 4. the employer s grant of other termination benef its in favor of the employees 5. whether there was a bona fide attempt to comply with the notice requirements as opposed to giving no notice at all. SC reduced the nominal damages from Php 30,000 to Php 10,000. Agabon not given retroactive effect The principle in law giving retroactive effect where the subsequent law i s corrective in character does not necessarily apply to judicial decisions. Unle ss the SC provides otherwise, the ruling would have no retroactive effect. E. RE LIEFS FOR ILLEGAL DISMISSAL 1. Backwages + Reinstatement without loss of seniori ty rights, or if reinstatement impossible 2. Backwages + Separation Pay Where re instatement is ordered, but the position is already filled up, the dismissed emp loyee must still be reinstated if it is still possible. Cases where reinstatemen t is impossible 1. Doctrine of Strained Relations (applies to confidential and m anagerial employees only) 2. In case of position has been abolished (applies to both managerial and rank and file) Moral and exemplary damages may also be award ed. Computation of Separation Pay Installation of labor1 month pay or 1 month sa ving devices pay for every year of service whichever is Redundancy higher. 1 mon th pay for every year is always higher if the employee has served for more than 1 year. 1 month pay or at least 1/2 month pay for every year of service whicheve r is higher Retrenchment to prevent losses Closures or cessation of operations of establishm ents or undertaking NOT due to serious business losses or financial reverses Dis ease Closures or cessation of operations due to serious business losses or finan cial reverses no separation pay Page 71 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 * a fraction of at least 6 months is considered 1 year If the retrenchment is la ter declared illegal, separation pay of 1 month for every year shall be paid. Su ch computation is because the retrenchment was illegal and the employee was enti tled to reinstatement. Reinstatement; payment of backwages Triad Security & Alli ed Services, Inc, et al. v Ortega, GR No. 160871, 06 February 2006 An order of r einstatement by the labor arbiter is not the same as actual reinstatement of a d ismissed or separated employee. Thus, until the employer continuously fails to a ctually implement the reinstatement aspect of the decision of the labor arbiter, their obligation to the illegally dismissed employee, insofar as accrued backwa ges and other benefits are concerned, continues to accumulate. It is only when t he illegally dismissed employee receives the separation pay (in case of strained relations) that it could be claimed with certainty that the EER has formally ce ased thereby precluding the possibility of reinstatement. In the meantime, the i llegally dismissed employees entitlement to backwages, 13th month pay, and other benefits subsists. Until the payment of separation pay is carried out, the emplo yer should not be allowed to remain unpunished for the delay, if not outright re fusal, to immediately execute the reinstatement aspect of the labor arbiters deci sion. Further, the employer cannot refuse to reinstate the illegally dismissed e mployee by claiming that the latter had already found a job elsewhere. Minimum w age earners are left with no choice after they are illegally dismissed from thei r employment, but to seek new employment in order to earn a decent living. Surel y, we could not fault them for their perseverance in looking for and eventually securing new employment opportunities instead of remaining idle and awaiting the outcome of the case. Reliefs of local workers vs. migrant workers Art. 279, LC Sec. 10, RA 8042 (local workers) (migrant workers) QuickTime and a TIFF (Uncompre ssed) reimbursement of Reinstatement Full decompressor are needed to see this pi cture. his placement fee with interest of 12% per annum Full backwages from the Salaries for the time his compensation unexpired portion of his was withheld fro m him employment contract or up to the time of his for 3 months for every actual reinstatement year of the unexpired term, whichever is less * without valid, ju st, or authorized cause The option of three months for every year is available onl y if the employment is for at least one year. If the contract is shorter, the sa lary to be paid should be that for the unexpired portion. (Marsaman Manning Agen cy v. NLRC, 25 August 1999) F. RETIREMENT Art. 287. Retirement (as amended by th e Retirement Pay Law RA 7641) Exempted: retail, service, agricultural establishm ents operations employing not more than employees 10 Kinds 1. OPTIONAL 60 years old / 5 years in service (includes authorized absence s/vacations/regular holidays/mandatory military or civic service). This depends on the stipulations in the CBA, company retirement plan, or employment contract. 2. COMPULSARY 65 years old/ regardless or years of service (company not bound t o dismiss employee) Benefits 1/2 month salary per year of service which shall in clude: 1. 15-day basic wage, plus th 2. 1/12 of the 13 month pay, plus 3. 5-day Service incentive leave pay plus 4. other benefits as maybe agreed upon by emplo yer and employee (a fraction of at least 6 months considered as 1 year) Minimum benefits to be received = (no. 1 + no. 2 + no. 3) x years of service If CBA / re tirement plan has no prohibition, an employee can get pay under the law, CBA, an d the retirement plan. If what is provided in the CBA is lower that what is prov ided for in law, the employee is entitled to the higher amount. VI. DISPUTE SETTLEMENT A. JURISDICTIONS OF THE DIFFERENT AGENCIES Bureau of Labo r Relations Original jurisdiction: appeal to DOLE Secretary Page 72 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Appellate jurisdiction: decision shall be immediately executory upon issuance of entry of final judgment; can be reviewed by the CA in a petition for certiorari under Rule 65 Jurisdiction 1. Inter-union conflicts 2. Intra-union conflicts 3. All disputes, grievances or problems arising from or affecting labor-management relations in all workplaces EXCEPT those arising from the implementation or int erpretation of the CBA which shall be the subject of grievance procedure and/or voluntary arbitration 4. Complaint involving federations, national unions, indus try unions, its officers or member organizations Compromise Agreements If volunt arily agreed upon by the parties with the assistance of the BLR or the regional office of DOLE final and binding upon the parties The only time NLRC or any cour ts can assume jurisdiction over issues involved therein: a. in case of non-compl iance thereof b. if there is prima facie evidence that the settlement was obtain ed through fraud, misrepresentation or coercion Power to Issue Subpoena When rel evant to a labor dispute under its jurisdiction either at the request of any int erested party or at its own initiative Privileged Communication Information and statements made at conciliation meetings shall NOT be used as evidence in the NL RC Conciliators and similar officials shall not testify in any court or body reg arding any matters taken up at conciliation proceeding conducted by them Appeal within 10 days to the DOLE Secretary Grounds: a. grave abuse of discretion Quick Time and a b. gross incompetence decompressor TIFF (Uncompressed) are needed to see this picture. Held: No. Unlike the NLRC which is explicitly vested with the jurisdiction over claims for actual, moral, exemplary and other forms of damages, the BLR is not s pecifically empowered to adjudicate claims of such nature arising from intra-uni on or inter-union disputes. As long as the agreement is voluntarily entered into and has a reasonable award, it is valid. It must be approved by the LA (NLRC Ru les) At the DOLE Secretarys level, the Secretary must approve. On appeal, the NLR C must approve the agreement. An offer to settle is not proof that something is due to the employee. Mindoro Lumber and Hardware v. Eduardo D. Bacay, et. al., 0 8 June 2005 Article 277 of the labor code states that any compromise settlement, including those involving labor standard laws, voluntarily agreed upon by the p arties with the assistance of the Bureau or the regional office of the Departmen t of Labor shall be final and binding upon the parties. A, a member of a labor uni on and a party to a labor dispute executed a compromise settlement. He appeared before the Office of the Regional Director to file said compromise settlement to gether with a motion to dismiss the case. Issue: Is the compromise settlement in compliance with Article 277? Held: The assistance of the BLR or the regional of fice of the DOLE in the execution of a compromise settlement is a basic requirem ent. Without it, there can be no valid compromise settlement. Mere appearance be fore BLR or the regional office of the DOLE to file the already executed comprom ise settlement is not the assistance required by the law. As such, the compromise settlement executed by A cannot qualify as a valid compromise settlement. Jurisdic tion of Labor Arbiters 1. ULP (priority resolved within 30 cal days from submiss ion for decision) 2. termination disputes 3. claims for wages, rates of pay, hou rs of work and other terms and conditions of employment 4. claims for actual, mo ral, exemplary and other forms of damages arising from employeremployee relation ship Page 73 of 83 Marino, Jr., et. al. v. Gamilla, et. al., 31 January 2005 Issue: Does the bureau of labor relations have jurisdiction over claims for actual, moral, exemplary a nd other forms of damages arising from intra-union or inter-union disputes?

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 5. cases arising from prohibited activities during strikes, including questions involving the legality of strikes and lockouts 6. all other claims arising from employer-employee relationship involving an amount exceeding P5000 regardless of whether accompanied by a claim for reinstatement except ECC, SSS, Medicare, & m aternity benefits 7. Wage distortion cases in unorganized establishments 8. All monetary claims of OFWs arising from EER or by virtue of any law or contract inv olving Filipino workers for overseas deployment, including claims for actual, mo ral, exemplary and other forms of damages (RA 8042) 9. Enforcement of compromise agreements when there is non-compliance by any of the parties pursuant to Art. 227 of the Code (Sec. 1, Rule V, 2005 NLRC Rules) Cooperatives Termination of me mbers of cooperatives is not cognizable by the LA (members are not employees) LA has jurisdiction over illegal dismissal cases involving employees of cooperativ es LA does NOT have jurisdiction over Intra-corporate disputes Cases involving c orporate officers (bec. they are not employees) BUT in Prudential Bank v. Reyes (G.R. No. 141093, 20 February 2001), it was held that an employee who rose from the ranks is a regular employee and not a mere corporate officer Cases involving GOCCs with original charters Cases involving entities immune from suit (except when the entity performs proprietary functions) Local water districts (since the y are quasi-public corporations) Actions based on tort (Tolosa v. NLRC, 10 April 2003 Claim of a seaman for damages is under torts, regular court has jurisdicti on.) Jurisdiction of the NLRC 1. Original Jurisdiction QuickTime and disputes to enjoin a. Injunction in ordinary labor a TIFF (Uncompressed) decompressor needed or restrain are any to see this picture. or threatened actual commission of any or all prohibited or unlawful acts or to require the performance of a particula r act in any labor dispute which, if not restrained or performed forthwith , may cause grave or irreparable damage to any party b. Injunction in strikes or lock outs under Art. 264 Certified labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, certified to i t by the DOLE Secretary for compulsory arbitration 2. Exclusive Appellate Jurisd iction a. All cases decided by the LAs, including contempt cases b. Cases decide d by the DOLE Regional Directors or his duly authorized hearing officers involvi ng recovery of wages, simple money claims and other benefits not exceeding Php 5 ,000 and not accompanied by a claim for reinstatement OCULAR INSPECTION by Labor Arbiter & NLRC at any time during working hours Jurisdiction of the POEA Cancel lation / Suspension of License of Authority to recruit of Recruitment Agencies ( until phase out within 5 years as provided in RA 8042) Disciplinary Action again st OFWs Appeal to Secretary of DOLE within 10 calendar days cancellation/ revoca tion/ supervision of license or authority Appeal to NLRC within 10 calendar days 1. violation of overseas employment contracts 2. disciplinary cases filed again st overseas contract workers Jurisdiction of DOLE Regional Directors 1. visitori al power (Art. 128) 2. claims not exceeding Php 5,000 (Art. 129) 3. violation of the constitution & by-laws and rights & conditions membership 4. inter-union an d intra-union disputes involving independent unions and chartered locals Jurisdi ction of the NCMB conciliation, mediation, and voluntary arbitration cases (SEE ANNEX L) B. PROCEDURE Art. 221. Technical rules not binding and prior resort to amicable settlement Art. 222. Appearances and Fees The rules of evidence prevail ing in courts of law or equity shall not be controlling. It is the spirit and in tention of this Code which shall be used as reasonable means to ascertain the fa cts in each case Page 74 of 83 c.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Without regard to technicalities of law and procedure all in the interest of due process Parties may be represented by legal counsel but it shall be the duty of the Chairman, any presiding Commissioner or any labor arbiter to exercise compe te control of the proceedings at all stages GR: The only way to acquire jurisdic tion is to serve summons Voluntary appearance of the lawyer amounts to voluntary submission to the jurisdiction of the LA. (Santos v. NLRC, GR No. 101699, 13 Ma rch 1996) Payment of docket fees is not required in labor standards claims under Art. 277(d). EXCEPT: in case of bargaining deadlock, the fees are shared by the parties Failure to implead a substitute party is not a fatal defect. (Chu v. Pa sajo, 13 April 2003) Sec. 3, Rule V of the NLRC Rules allows parties to submit p osition papers with attachments and they can be made basis of the LAs decision. H olding of trial on the merits is discretionary on the part of the LA. Due proces s in Art. 277(b) (termination disputes) end line is hearing with representative of own choice Due process in Art. 221 opportunity to be heard It is wrong to app ly opportunity be heard in due process under Art. 277(b). Verification and Certi fication of Non-Forum Shopping are required BUT Art. 221 can be invoked. NLRC Ru les provide that before deciding, LA must inform parties that the case has been submitted for decision. If this is not complied with, decision is still valid be cause of Art. 221. Art. 218(c) cannot be invoked to support a faulty decision of the LA. The provision refers to a power of the NLRC and not the LA. C. APPEALS Art. 223. Appeal Art. 224. Execution of decisions, orders or awards are needed Appeal of LAs Decision to see this picture. Appeal from the decision o f the Labor Arbiter is brought by ordinary appeal to the NLRC within 10 calendar days from receipt by the party of the decision. From the decision of the NLRC, there is no appeal. QuickTime and a TIFF (Uncompressed) decompressor The only way to elevate the case to the CA is by way of the special civil action of certiorari under Rule 65 of the Rules of Civil Procedure. From the ruling of the Court of the Appeals, it may be elevated to the SC by way of ordinary appea l under Rule 45 of the Rules of Civil Procedure. (St. Martin Funeral Home vs. NL RC, et al., GR No. 130866, 16 September 1998) Grounds 1. prima facie evidence of abuse of discretion on the part of LA 2. the decision, order or award was secur ed through fraud or coercion including graft and corruption 3. pure questions of law 4. raised serious errors in the findings of facts which could cause grave o r irreparable damage or injury to the appellant 5. additional Requirement: in ca se of judgment involving a monetary award-employer (appellant) may perfect the a ppeal only upon the posting of a cash or surety bond issued by a reputable bondi ng company duly accredited by the NLRC in the amount equivalent to the monetary award in the judgment appealed from Requisites for Perfection of Appeal 1. filed within the reglementary period 2. Memorandum of Appeal under oath 3. appeal fee 4. cash, property, or surety bond, if judgment involves monetary award 5. proof of service to the adverse party Procedure 1. File Memorandum of Appeal within 1 0 calendar days, counted from receipt of decision 2. Other party can file an Ans wer within 20 calendar days from receipt of Appeal 3. NLRC decides 4. NLRC decis ion becomes final and executory 10 days after it is rendered Appeal Involving Mo netary Award No monetary award, no appeal bond required If LAs decision does not provide for a computation of the monetary award, no appeal bond is required to b e filed. Bond should be posted within the 10-day period for filing of appeal If no bond is filed, appeal is not perfected Remedy in case of failure to post bond , remedy is to file a motion to dismiss Motion to Reduce Bond Page 75 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Motion to reduce bond does not toll the running of the period to perfect appeal In order to effectively stop the running of the period within which to perfect t he appeal, the motion to reduce bond must comply with the requisites that: 1. fi led within the reglementary period 2. based on meritorious grounds 3. a reasonab le amount of bond in relation to the monetary award should be posted together wi th said motion A substantial monetary award, even if it runs into millions, does not necessarily give the employerappellant a meritorious case and does not automa tically warrant a reduction of the appeal bond. (Calabash Garments v. NLRC, GR N o. 110827, 08 August 1996) Partial payment of the bond is deemed substantial com pliance with the rules while the motion to reduce bond is still pending with the NLRC. [Rosewood Processing v. NLRC, 352 Phil 1013 (1998)] But the partial payme nt must be made within the reglementary period. An appellant cannot invoke finan cial difficulties as a ground in support of a Motion to Reduce Bond. Suffice it to say that the law does not require outright payment of the total monetary awar d, but only the posting of a bond to ensure that the award will be eventually pa id should the appeal fail. (Times Transportation v. NLRC, GR No. 16378, 16 Febru ary 2005) Enforcement Any law enforcement agency may be deputized by the DOLE Se cretary or the NLRC Issuance of writ of execution on a judgment within 5 years f rom date it becomes final and executory motu proprio or in motion of any interes ted party Reinstatement Pending Appeal If reinstatement is ordered in an illegal dismissal case, it is immediately executory even pending appeal Self-executing TIFF (Uncompressed)needa for a writ of with QuickTime and no decompressor are nee ded to see this picture. execution Either admitted back to work under the same t erms and conditions prevailing prior to his dismissal or separation or merely re instated in the payroll (at the option of the employer, i.e. confidential employ ee, but the choice must be communicated to the employee by the employer) Posting of a bond shall not stay the execution of reinstatement The unjustified refusal of the employer to reinstate an illegally dismissed employee entitles the emplo yee to payment of his salaries. If despite several writs of execution, the emplo yer still refuses to reinstate the employee, the remedy is not the grant of addi tional backwages to serve as damages but to file a motion to cite the employer f or contempt. (Christian Literature Crusade v. NLRC, 171 SCRA 712, 10 April 1989) LA upheld the validity of the dismissal; NLRC reversed. CA held that dismissal was valid. HELD: The employer is liable to pay for the salary of the employee pr eviously ordered reinstated by the NLRC although later on, the dismissal of the employee was held not to be illegal. (Roquero v. PAL, G.R. No. 152329, 22 April 2003) If the former position is already filled up, the employee ordered reinstat ed under Article 223 should be admitted back to work in a substantially equivale nt position. (Medina v. Consolidated Broadcasting System, 222 SCRA 707) Appeal o f Voluntary Arbitrators Decision Appealable by ordinary appeal under Rule 43 of t he Rules of Civil Procedure directly to the Court of Appeals. From the CA, the c ase may be elevated to the Supreme Court by way of ordinary appeal under the sam e Rule 45. (Luzon Development Bank v. Association of Luzon Development Bank Empl oyees, et al., GR No. 120319, 06 October 1995) Appeal of BLRs Decision 1. Denial of application for registration of a union Denial by the Regional Office, appeal to the BLR Denial is originally made by the BLR, appeal may be had to the DOLE Secretary 2. Cancellation of registration of a union Cancellation by the Regiona l Office, appeal to the BLR. Cancellation by the BLR in a petition filed directl y, appeal to DOLE Secretary by ordinary appeal 3. Decision of the BLR rendered i n its original jurisdiction may be appealed to the DOLE Secretary whose decision thereon may only be elevated to the CA by way of certiorari under Rule 65. 4. D ecision of the BLR rendered in its appellate jurisdiction may not be appealed to the DOLE Secretary but may be elevated directly to the CA by way of certiorari under Rule 65. (Abbott Page 76 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Laboratories Philippines, Inc. vs. Abbott Laboratories Employees Union, et al., GR No. 131374, 26 January 2000) Appeal of Regional Directors Decision under Art. 129 Appeal to NLRC Summary Decision of the Voluntary Arbiter appeal to CA under Rule 43 (Luzon Devt Bank) Decision of the DOLE and other attached agencies (inclu ding NLRC) should be brought to the CA under Rule 65 (St. Martin Funeral Homes) Decision of the DOLE Secretary certiorari to the CA under Rule 65 (NAFLU v. Lagu esma) Order of the Med-Arbiter in CE in organized establishments not appealable under DO 40-03 (2003). Thus, the recourse is certiorari under Rule 65. Decisions of the BLR in its appellate certiorari under Rule 65 (UST Employees Union v. Bit onio) Certiorari is not a substitute for lost appeal. 10 days to perfect appeal by filing a Memorandum of Appeal Property bond is now allowed. [UERM-Memorial Me dical Center v. NLRC, 269 SCRA 70 (1997)] Appeal bond must be strictly complied with. NLRC cannot resuscitate a lost appeal. Only 1 MR is allowed. LA cannot ent ertain an MR or a petition for relief of judgment After the decision has become final and executory, the writ of execution is NOT appealable. To stay writ of ex ecution, ask for an injunction under Art. 218(e) Period to appeal cannot be exte nded BUT in a number of cases, SC entertained appeals filed out of time under th e interest of justice rule (esp. if the appellants are the employees). Doctrine of supervening event (i.e. closure of company) requires payment of separation pa y and full backwages up to the time of the closure of the company. are needed to see this (RPA) Reinstatement Pending Appeal picture. 1. Decision o f the LA 2. Independent right 3. Payroll reinstatement 4. Receipt of LAs decision QuickTime and a TIFF (Uncompressed) decompressor NLRC cannot order a refund of benefits or salaries. Rationale: for the employee to earn after all he won in the LA level Time to reckon reinstatement is the dat e of receipt of LAs decision; not NLRC decision Relief of the employer is to ask for an injunction under Art. 218(e) If the employee is confidential, only payrol l reinstatement is required. VII. PENAL PROVISIONS AND LIABILITIES Penalties for Violations of the Provisions of the Labor Code Fine of Php 1,000 to Php 10,000, or imprisonment for 3 months to 3 years, or both at the discretion of the court. Persons liable if an offens e is committed by a juridical person The penalty shall be imposed upon the guilt y officer or officers of such corporation, trust, firm, partnership, association or entity. Prescriptive period of offenses penalized by the Labor Code GR: 3 ye ars from the time the cause of action accrued Exception: ULP cases prescribe wit hin 1 year from accrual of such unfair labor practice Even if NLRC reverses LA decision, the employee is still entitled to the benefit of RPA. SOCIAL LEGISLATION THIRTEENTH-MONTH PAY (PD 851) Page 77 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 All employers are required to pay all their rankand-file employees a 13th month pay not later than December 24 of every year. Such employees are entitled to the benefit regardless of their designation or employment status and irrespective o f the method by which their wages are paid, provided that they have worked for a t least 1 mo. during a calendar year. 13th Month Pay 1/12th of the basic salary of an employee within a calendar year Basic Salary includes all remunerations or earnings paid by an employer to an employee for services rendered but does not include cost of living allowances (COLA), profit-sharing payments and all allowa nces and monetary benefits (e.g. unused VL and sick leave credits, OT premium, n ight differential and holiday pay) which are not considered or integrated as par t of the regular or basic salary of the employee. However, the above should be i ncluded in the computation if by individual or collective agreement, company pra ctice or policy. Exempted Employees: 1. Government and any of its political subd ivisions, including GOCCs, except those corporations operating essentially as pr ivate subsidiaries of the Government; 2. Employers already paying their employee s 13th month pay or more in a calendar year or its equivalent at the time of iss uance of PD 851 Its equivalent includes Christmas bonus, mid-year bonus, cash bonu ses and other payments amounting to not less than 1/12 of the basic salary but s hall not include cash and stock dividends, COLA and all other allowances regular ly enjoyed by the Eee as well as non-monetary benefits. 3. Employers of household helpers and persons in the personal service of another in relation to such work ers 4. Employers of those who are paid on commission, boundary, or task basis, a nd those who are paid a fixed amount for performance of a specific work, irrespe ctive of QuickTime and aconsumed in the the time performance TIFF (Uncompressed) this picture. thereof, to see decompressor where the EXCEPT are needed workers a re paid on a piece-rate basis, in which case the employer shall grant the requir ed 13th month pay to such workers. Piece Rate employees who are paid a standard amount for every piece or unit of work produced that is more or less regularly r eplicated, without regard to the time spent in producing the same. 13th Month Pa y for Certain Types of Employees 1. Employees paid by results entitled to 13th m onth pay 2. Those with Multiple Employers entitled to the 13th month pay from al l their private employers regardless of their total earnings from each or all of their employers 3. Private School Teachers entitled regardless of the number of months they teach or are paid within a year, if they have rendered service for at least 1 month within a year. th Month Pay of Resigned or Separated 13 Employee entitled to the benefit in pro portion to the length of time he worked during the year, reckoned from the time he started working during the calendar year up to the time of his resignation or termination from the service May be demanded by the employee upon the cessation of EER. Non-inclusion in Regu lar Wage benefit need not be credited as part of regular wage of employees for p urposes of determining OT pay and premium pays, fringe benefits as well as contr ibutions to the state insurance fund, Social Security, Medicare, and private ret irement plans ANTI-SEXUAL HARASSMENT ACT OF 1995 (RA 7877) Where Committed working, education, training environment (WET) Who Commits 1. employer 2. employee 3. manager 4. su pervisor 5. agent of the employer 6. teacher 7. instructor 8. professor 9. coach 10. trainor 11. any other person having authority, influence or moral ascendanc y over another How Committed Person liable demands, requests, or otherwise requi res any sexual favor from the other, regardless of whether the demand, request o r requirement for submission is accepted by the object of said Act Page 78 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 Work-Related/Employment Environment, Sexual Harassment Committed When 1. The sex ual favor is made as a condition a. in hiring or in the employment, reemployment or continued employment of said individual b. in granting said individual favor able compensation, terms, conditions, promotions or privileges c. the refusal to grant the sexual favor results in limiting, segregating or classifying the empl oyee which in any way would discriminate, deprive or diminish employment opportu nities or otherwise adversely affect said employee 2. The above acts would impai r the employees rights or privileges under existing labor laws 3. The above acts would result in an intimidating, hostile or offensive environment for the employ ee Duty of Employer 1. Promulgate appropriate rules and regulations prescribing the procedure for investigation of sexual harassment cases as well as guidelines on proper decorum in the workplace 2. Create a committee on decorum and investi gation of cases on sexual harassment. Liability of Employer / Head of Office Sol idarily liable for damages arising from the acts of sexual harassment committed in the employment, education or training environment if the employer is informed of such acts by the offended party and no immediate action is taken Prescriptio n: 3 years All government employees can form, join or assist employees organizati ons of their own choosing for the furtherance and protection of their interests. They can also form, in conjunction with appropriate government authorities, lab or-management committees, work councils, and other forms of workers participation schemes for the same objectives (2) Who are Ineligible to Join Organization of R ank & File Government Employees High-level employees whose functions are normall y considered as policy-making or managerial or whose duties are of a highly conf idential nature (3) Protection of Right to Organize They shall not be discriminat ed against in respect of their employment by reason of their membership or parti cipation in employees organizations. Their employment shall not be subject to the condition that they shall not join or shall relinquish their membership therein (5) Non-Interference of Government Authorities Government authorities shall not interfere in the establishment, functioning or administration of government empl oyees organizations through acts designed to place such organizations under the control of government authority (6) Place of Registration CSC and DOLE (7) Proced ure for the Registration of Employees Organizations 1. File application with BLR or Regional Office, which shall transmit the application to the BLR within 3 day s from receipt 2. BLR shall process the application in accordance with the Labor Code (7) 3. Upon approval, a registration certificate will be issued, recognizin g it as a legitimate employees organization with the right to represent its membe rs and undertake activities to further and defend its interests 4. The certifica tes of registration shall be jointly approved by the Chairman of the CSC and Sec retary of DOLE (8) Appropriate Organizational Unit It is the employers unit consi sting of rank-and-file employees unless circumstances otherwise require. (9) Sole and Exclusive Representative of Employees EXECUTIVE ORDER NO. 180 Guidelines for the exercise of the right to organize of government employees, creating a public sector labor-management council, and for other purposes. Coverage It applies to all government employees--employees of a ll branches, subdivisions, instrumentalities, and QuickTime and a agencies of the government, including GOCCs with TIFF (Uncompressed) decompressor original char ters (1) are needed to see this picture. Excluded from Coverage Members of the Ar med Forces of the Philippines, including police officers, policemen, firemen and jail guards (4) Right to Organize Page 79 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 It is the duly registered employees organization having the support of the majori ty of the employees in the appropriate organizational unit (10) Voluntary Recogni tion A duly registered employees organization shall be accorded voluntary recogni tion upon a showing that no other employees organization is registered or is seek ing registration, based on records of the BLR, and that the said organization ha s the majority support of the R&F employees in the organizational unit (11) Certi fication Election Where there are 2 or more duly registered employees organizatio ns in the appropriate organizational unit, the BLR shall, upon petition, order t he conduct of a certification election and shall certify the winner as the exclu sive representative of the R&F employees in said organization unit (12) Subject o f Negotiation Terms and conditions of employment or improvements thereof, except those that are fixed by law, may be the subject of negotiations between duly re cognized employees organizations and appropriate government authorities (13) Pea ceful Concerted Activities and Strikes The Civil Service laws and rules governin g concerted activities and strikes in the government service shall be observed, subject to any legislation that may be enacted by Congress. (14) Public Sector La bor-Management Council It is the body charged with implementing and administerin g EO 180. Composition of Council 1. Chairman, CSC - Chairman 2. Secretary, DOLE Vice-Chairman 3. Secretary, - DOF - Member 4. Secretary, DOJ Member 5. Secretary , Department of Budget Management Member (15) Bautista v. CA, GR No. 123375, 28 F ebruary 2005 The SC affirmed its ruling in Association of Court of Appeals Emplo yees v Ferrer-Calleja (GR No. 94716, 15 Nov. 1991), where it ruled that the BLR has the jurisdiction to call for and supervise the conduct of certification elec tions in the public sector. The Court stated that there is no constitutional obj ection to DOLE handling the certification process considering its expertise, mac hinery and experience in this particular activity. EO 180 requires organizations of government employees to register with both DOEL and CSC. This ambivalence no twithstanding, the CSC has no facilities, personnel and experience in the conduc t of certification elections. BLR has to do the job. SALIENT PROVISIONS OF THE SSS LAW & GSIS LAW (ANNEX O) NATIONAL HEALTH INSURANCE ACT OF 1995 (RA 7875) General Objectives 1. provide al l citizens of the Philippines with the mechanism to gain financial access to hea lth services; 2. create the National Health Insurance Program to serve as the me ans to help the people pay for health care services; 3. prioritize and accelerat e the provision of health services to all Filipinos, especially that segment of the population who cannot afford such services; and 4. establish the Philippine Health Insurance Corporation that will administer the Program at central and loc al levels BENEFICIARY - Any person entitled to health care benefits under this A ct. and Settlement of Disputes QuickTime and a TIFF (Uncompressed) decompressor are labor this picture. The Civil Service andneeded to seelaws and procedures, whenever a pplicable, shall be followed in the resolution of complaints, grievances and cas es involving government employees. In case any dispute remains unresolved after exhausting all the available remedies under existing laws and procedures, the pa rties may jointly refer the dispute to the Council, for appropriate action. (16) CAPITATION - A payment mechanism where a fixed rate, whether per person, family, household or group, is negotiated with a health care provider who shall be resp onsible for delivering or arranging for the delivery of health services required by the covered person under the conditions of a health care provider contract. CONTRIBUTION - The amount paid by or in behalf of a member to the Program for co verage, based on salaries or wages in the case of formal sector employees, and o n household earnings and assets, in the case of the self-employed, or on the oth

er Page 80 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 criteria as may be defined by the Corporation in accordance with the guiding pri nciples set of this Act. DEPENDENT - The legal dependents of a member are: 1. th e legitimate spouse who is not a member 2. the unmarried and unemployed legitima te, legitimated, illegitimate, acknowledged children as appearing in the birth c ertificate; legally adopted or stepchildren below 21 years of age 3. children wh o are 21 years old and above who are suffering from congenital disability, eithe r physical or mental, or any disability acquired that renders them totally depen dent on the member for support 4. the parents who are 60 years old or above whos e monthly income is below an amount to be determined by the Corporation in accor dance with the guiding principles set forth of this Act. EMPLOYEE - Any person w ho performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there i s an employer-employee relationship. EMPLOYER - A natural or juridical person wh o employs the services of an employee. ENROLLMENT - The process to be determined by the Corporation in order to enlist individuals as members or dependents cove red by the Program. MEMBER - Any person whose premiums have been regularly paid to the National Health Insurance Program. He may be a paying member, an indigent member or a pensioner/retiree member. MEDICARE - The health insurance program c urrently being implemented by the Philippine Medical Care Commission. It consist s of: a. Program I, which covers members of the SSS and GSIS including their leg al dependents; and b. Program II, which is intended for those not covered under the Program I are INSURANCE NATIONAL HEALTH needed to see this picture. PROGRAM The compulsory health insurance program of the government as established in this Act, which sh all provide universal health insurance coverage and ensure affordable, acceptabl e, available and accessible health care services for all citizens of the Philipp ines. QuickTime and a TIFF (Uncompressed) decompressor PENSIONER - An SSS or GSIS member who receives pensions therefrom. RETIREE - A m ember of the Program who has reached the age of retirement or who was retired on account of disability. SELF-EMPLOYED - a person who works for himself and is th erefore both employee and employer at the same time. THE NATIONAL HEALTH INSURAN CE PROGRAM Purpose 1. To provide health insurance coverage and ensure affordable , acceptable, available and accessible health care services for all citizens of the Philippines 2. To serve as the means for the healthy to help pay for the car e of the sick and for those who can afford medical care to subsidize those who c annot. (5) Establishment 1. Include sustainable system of funds constitution, col lection, management and disbursement for financing the availment of a basic mini mum package and other supplementary packages of health insurance benefits by a p rogressively expanding proportion of the population. 2. Limited to paying for th e utilization of health services by covered beneficiaries or to purchasing healt h services in behalf of such beneficiaries. 3. Prohibited from providing health care directly, from buying and dispensing drugs and pharmaceuticals, from employ ing physicians and other professionals for the purpose of directly rendering car e, and from owning or investing in health care facilities. (5) Coverage All citiz ens of the Philippines (6) Enrollment 1. Beneficiaries shall be enrolled in order for them to be placed under coverage that entitles them to avail of benefits. 2 . Enrollment process includes the identification of beneficiaries, issuance of a ppropriate documentation specifying eligibility to benefits, and indicating how membership was obtained or is being maintained. 3. Enrollment shall proceed in a ccordance with these specific policies: Page 81 of 83

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 a. all persons currently eligible for benefits under Medicare Program I, includi ng SSS and GSIS members, retirees, pensioners and their dependents, shall immedi ately and automatically be made members of the National Health Insurance Program ; b. all persons eligible for benefits through health insurance plans establishe d by local governments as part of Program II of Medicare or in accordance with t he provisions of this Act, including indigent members, shall also be enrolled in the Program. c. all persons eligible for benefits as members of local health in surance plans shall also be deemed to have enrolled in the Program. Enrollment o f persons who have no current health insurance coverage shall be given priority by the corporation; and d. all persons eligible for benefits as members of other government initiated health insurance programs, community-based health care org anizations, cooperatives, or private non-profit health insurance plans shall be enrolled in the Program upon accreditation by the Corporation (7) Benefit Package 1. Inpatient hospital care: a. room and board; b. services of health care profe ssionals; c. diagnostic, laboratory, and other medical examination services; d. use of surgical or medical equipment and facilities; e. prescription drugs and b iologicals; subject to the limitations stated in Section 37 of this act f. inpat ient education packages 2. Outpatient care: a. services of health care professio nals; b. diagnostic, laboratory and other medical examination services; c. perso nal preventive services; and d. prescription drugs and biologicals; subject to t he limitations described in Section 37 of this QuickTime and a Act TIFF (Uncompre ssed) decompressor are needed to see this picture. 3. drug and alcohol abuse or dependency treatment; 4. cosmetic surgery; 5. home and rehabilitation services; 6. optometric services; 7. normal obstetrical deliv ery; and 8. cost-ineffective procedures which shall be defined by the Corporatio n. (11) ENTITLEMENT TO BENEFITS A. Requisites: 1. A member whose premium contribu tions for at least 3 months have been paid within the 6 months prior to the firs t day of his or his dependents availment; 2. He can show that he contributes wi th sufficient regularity; and 3. He is not currently subject to legal penalties B. Monthly contributions need not be paid by the following to be entitled to ben efits: 1. Retirees and pensioners of the SSS and GSIS prior to the effectivity o f this Act 2. Members who reach the age of retirement and have paid at least 120 monthly contributions; and 3. Enrolled indigents (11) GRIEVANCE SYSTEM Members, dependents, or health care providers of the Program who believe they have been a ggrieved by any decision of the implementors of the Program, may seek redress of the grievance in accordance with the provisions of this Article. Grounds for Gr ievances 1. any violation of the rights of patients; 2. a willful neglect of dut ies of Program implementors that results in the loss or nonenjoyment of benefits by members or their dependents; 3. unjustifiable delay in actions on claims; 4. delay in the processing of claims that extends beyond the period agreed upon; a nd 5. any other act or neglect that tends to undermine or defeat the purposes of this Act. (40) Grievance and Appeal Procedure A. Who may file complaint 1. Membe r, 2. Dependent, or 3. Health care provider B. Procedure 1. A complaint for grie vance must be filed with the Local Health Office (LHO) Page 82 of 83 3. Emergency and transfer services 4. Other health care services (10) Excluded Pe rsonal Health Service 1. non-prescription drugs and devices; 2. outpatient psych otherapy and counseling for mental disorders;

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200 7 2. LHO shall rule on the complaint within 90 calendar days from receipt 3. Appea ls from LHO decisions must be filed with the Board within 30 days from receipt o f notice of dismissal or disallowance by the Office C. LHO has NO jurisdiction o ver any issue involving: 1. suspension or revocation of accreditation 2. imposit ion of fines, or 3. imposition of charges on members or their dependents in case of revocation of their entitlement. D. All decisions by the Board as to entitle ment to benefits of members or to payments of health care providers shall be con sidered final and executory E. Hearing Procedures of Grievance and Appeal Review Committee (GARC) 1. Upon the filing of the complaint, GARC may dismiss the case outright due to lack of verification, failure to state the cause of action, or any other valid ground for dismissal of the complaint after consultation with th e Board; or require the respondent to file a verified answer within 5 days from service of summons. 2. Should the defendant fail to answer the complaint within the reglamentary five-day period, GARC, motu proprio or upon motion of the compl ainant, shall render the judgment. 3. After an answer is filed and the issues ar e joined, GARC shall require the parties to submit, within 10 days from receipt of the order, the affidavits of the witnesses and other evidence on the factual issues defined therein, together with a brief statement of their positions setti ng forth the law and the facts relied upon by them. In the event GARC finds, upo n consideration of the pleadings, the affidavits and other evidence, and positio n statements submitted by the parties, that a judgment may be rendered thereon w ithout need (Uncompressed) decompressor of QuickTime and a hearing, it may a form al TIFF are needed to see this picture. proceed to render judgment not later 10 days from the submission of the position statements of the parties 4. In cases w here GARC deems it necessary to hold a hearing to clarify specific factual matte rs before rendering judgment, it shall set the case for hearing for the purpose. At such hearing, witnesses whose affidavits were previously submitted may be as ked clarificatory questions by the proponent and by the Committee and may be cro ssexamined by the adverse party. The hearing shall be terminated within 15 days, and the case decided by the Committee within15 days from such termination. 5. T he decision of GARC shall become final and executory 15 days after notice thereo f 6. Such decision is appealable to the Board by filing the appellant s memorand um of appeal within 15)days from receipt of the copy of the judgment appealed fr om. The appellees shall be given15 days from notice to file the appellee s memor andum after which the Board shall decide the appeal within 30 days from the subm ittal of the said pleadings. 7. The decision of the Board shall also become fina l and executory 15 days Such decision is reviewable by the Supreme Court on pure ly questions of law (41) Page 83 of 83

ANNEX A: Requirements for Registration a. b. c. Federation / National Union In addition to a, b, c, e and f of the requirements for Independent Union: a. Resolution of affiliation of at least 10 LLOs whether i ndependent union or chartered locals(all duly recognized Collective Bargaining a gents) b. Names and addresses of the companies where the affiliates operate plus list all members in each company involved d. Chartered Local a. A charter certificate issued by the federation or national un ion indicating the creation or establishment of the local/chapter; b. The names of the local/chapters officers, their addresses, and the principal office of the local/chapter; and c. The local/chapters constitution and by-laws, provided that where the local/chapters constitution and by-laws is the same as that of the fede ration or national union, this fact shall be indicated accordingly. Independent Labor Organization a. Registration Fee b. Name of the applicant unio n, its principal address, names and addresses of its officers, approximate numbe r of employees in the bargaining unit where it seeks to operate, with a statemen t that it is not reported as a chartered local of any federation or national uni on; c. Minutes of the organizational meeting; list of workers who participated i n the meetings d. Names of all its members comprising at least 20% of all the em ployees in the bargaining unit e. Annual financial report if the applicant has b een in existence for one or more years, unless it has not collected any amount f rom the member, in which case a statement to this effect shall be included f. Co nstitution and by-laws (CBL), minutes of its adoption and ratification, and the list of the members who participated in it; (list of ratifying members may be di spensed with where the CBL was ratified or adopted during the organizational mee ting factual circumstance of the ratification shall be recorded in the meeting) QuickTime and a Labor organizations operating within an identified industry may a lso apply for registration as a federation or national union within the specifie d industry by submitting to the Bureau the same set of documents e. Application for registration of a workers association operating in more than one region shall be accompanied, in addition to the requirements in the preceding subsection, by a resolution of membership of each member. Workers Association Registration fee Name of the applicant association, its princ ipal address, the name of its officers and their respective addresses, Minutes o f the organizational meetings, and names of individual members who attended such meetings Financial reports of the applicant association if it has been in exist ence for one or more years, unless it has not collected any amount from the memb ers, in which case a statement to this effect shall be included in the applicati on Constitution and By-laws with names of ratifying members, the minutes of adop tion or ratification of the CBL and the date when ratification was made, unless ratification was done in the meeting, in which case such fact shall be reflected in the minutes Must submit 2 copies. Certified under oath by the Secretary or the Treasurer of the local/chapter and attested by its President. (DO 40-B-03) TIFF (Uncompressed) decompressor are needed to see this picture. all required documents shall be certified under oath by the Secretary or Treasur er & attested by the President 1 original copy and 2 duplicates copies of all do cuments accompanying the application or notice shall be submitted to the Regiona l Office or the Bureau

ANNEX B: Requirements in Case of Merger / Consolidation / Affiliation WHERE TO FILE Affiliation Report of affiliation shall be filed with the Regional Office that i ssued its certificate of registration a. b. Merger Notice of merger of the independent labor unions, chartered locals and wo rkers association shall be filed with the Regional Office that issued the certifi cate of registration Notice of merger of federation shall be filed and recorded with the Bureau Consolidation a. Notice of consolidation of the independent labor unions, charte red locals and workers association shall be filed with the Regional Office that i ssued the certificate of registration of consolidation of federation shall be fi led b. Notice recorded with the Bureau a. minutes of consolidation convention of all the consolidating labor organizations, with the list of their respective me mbers who approved the same b. amended constitution and by-laws, minutes of its ratification transpired in the consolidation convention or in the same general m embership meetings, which fact shall be indicated accordingly REQUIREMENTS a. Resolution of the labor unions board of directors approving the affiliation b. minutes of the general membership meeting approving the affiliation c. total nu mber of members and names of members who approved the affiliation d. certificate of affiliation issued by the federation in favor of the independently registere d labor union e. written notice to the employer concerned if the affiliating uni on is the incumbent bargaining agent a. minutes of merger convention or general membership meetings of all the mergin g labor organizations with the list of their respective members who approved the same b. amended constitution and by-laws and minutes of its ratification, unles s transpired in the convention, which fact shall be indicated QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX C: Procedure for Registration of Labor Organization Where to file Regional Office labor union Bureau (Action within 10 days from receipt of application) Approval - Issuance of certificate of registration Denial Ground: Failure to comply with requirements Regional Office in case of applications for registration of independent unions. Applications for registration of federations, national unions or workers associat ion operating in more that one region shall be filed with the Bureau or Regional Offices but shall be processed by the Bureau. A duly-registered federation or n ational union may directly create a chartered local by submitting the required d ocuments (See Annex A) to the Regional Office. (DO 40-B-03) DENIAL BY: If the documents submitted are incomplete or do not contain the required certifi cation and attestation, The Regional Office should notify the applicant in writi ng within 5 days from receipt of application. The applicant must be given 30 day s from notice to complete the requirements If applicant fails to complete the re quirements within 30 days, the application shall be denied. Regional Office (transmit records within 24 hours from receipt of Memo of Appeal ) APPEAL BY MEMO OF APPEAL WITHIN 10 DAYS FROM RECEIPT OF NOTICE Bureau (transmit records within 24 hours from receipt of Memo of Appeal) Bureau (decision within 20 QuickTime and a TIFF (Uncompressed) decompressor days from receipt of are needed to see this picture. records) GROUNDS: 1. Grave abuse of discretion; 2. Violation of rules as amended Secretary of DOLE (decision within 20 days from receipt of records) Supreme Court Rule 65 Supreme Court Rule 65

ANNEX D: Procedure for Cancellation of Registration of Labor Organizations Any party-in-interest may commence a petition for cancellation Members of labor organization for actions involving violations of Art. 241 File independent complaint or petition for cancellation based on the grounds Regional Director in case of independent labor union, chartered local and worker s association Bureau Director in case of federations, national or industry unions and trade un ion centers GROUNDS: a. Misrepresentation, false statement or fraud in connection with the a doption or ratification of the constitution and by-laws or amendments thereto, t he minutes of ratification, the list of members who took part in the ratificatio n of the constitution and by-laws or amendments thereto, the minutes of ratifica tion, the list of members who took part in the ratification; b. Failure to submi t the documents mentioned in the preceding paragraph within thirty (30) days fro m adoption or ratification of the constitution and by-laws or amendments thereto ; c. Misrepresentation, false statements or fraud in connection with the electio n of officers, minutes of the election of officers, the list of voters, failure to submit these documents together with the list of the newly elected or appoint ed officers and their postal address within thirty (30) days from election; d. F ailure to submit the QuickTime and a annual TIFF (Uncompressed) decompressor fina ncial reportare needed to see this picture. to the Bureau within thirty (30) day s after the close of every fiscal year and misrepresentation, false entries or f raud in the preparation of the financial report; e. Notice and Due Process f. Resolved by Regional Director like the procedure of Inter/Intra-Union Disputes ( Rule XI) g. h. i. j. k. Acting as a labor contractor or engaging in the "cabo" system, or otherwise enga ging in any activity prohibited by law; Entering into collective bargaining agre ements which provide for terms and conditions of employment below minimum standa rds established by law; Commission of any of the acts enumerated under Article 2 41 of the Labor Code; provided that no petition for cancellation based on this g round may be granted unless supported by at least thirty (30%) percent of all th e members of the respondent labor organization; Asking for or accepting attorney s fees or negotiation fees from the employer; Other than for mandatory activiti es under the Labor Code, checking off special assessments or any other fees with out duly signed individual written authorizations of the members; Failure to sub mit list of individual members to the Bureau once a year or whenever required by the Bureau; Failure to comply with the requirements of registration prescribed

under Rules III and IV

ANNEX E: Cancellation of Registration of Labor Organizations due to Non-Complian ce with the Reportorial Requirements Labor Relations Division of the Regional Office or the Bureau a) on its own init iative b) upon complaint filed by any party-in-interest Conditions for administrative cancellation: (a) Non-compliance is for a continuo us period of five (5) years; (b) The procedures laid down in this Rule were comp lied with; and (c) The labor organization concerned has not responded to any of the notices sent by the Bureau, or its notices were returned unclaimed. Make a report of the labor organizations non-compliance Submit to the Bureau for verification of records Bureau shall send a notice for compliance by registered mail with return card to the labor organization concerned Within 10 days from receipt 30 days from release of notice Comply with the reportorial requirements and submit proof thereof to the Bureau No response from labor organization No response within 30 days from release of 2nd notice Bureau shall cause publication of the notice of cancellation in 2 newspapers of general circulation Bureau may conduct investigation: 1) employers premises; and 2) labor organizatio ns last known address Bureau has verified the dissolution of the labor organization QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. No response w/in 30 days from date of publication Bureau shall: 1) order cancellation of registration 2) cause its de-listing from the roster of legitimate labor organizations

ANNEX F: Elections under Rule 12 Of The Implementing Rules President of the labor organization shall constitute a committee on election Within 60 days before the expiration of the term of the incumbent Committee shall elect its Chairman Committee composed of at least three (3) memb ers who are not running for any position in the election. if there are identifia ble parties within the labor organization, each party shall have equal represent ation in the committee Committee shall exercise its powers 10 days from its constitution 1) set the dat e, time and venue of the election; 2) prescribe the rules on the qualification a nd eligibility of candidates and voters; 3) prepare and post the voters list and the list of qualified candidates; 4) accredit the authorized representatives of the contending parties; 5) supervise the actual conduct of the election and canv ass the votes to ensure the sanctity of the ballot; 6) keep minutes of the proce edings; 7) be the final arbiter of all election protests; 8) proclaim the winner s; and 9) prescribe such other rules as may facilitate the orderly conduct of el ection. at least 30% of the members of the labor organization may file a petition for co nduct of election of union officers with the Regional Office if 1. Terms of offi cers have expired and officer failed to call for election of new officers, or 2. Labor organizations constitution and by-laws do not provide for the manner by wh ich election can be called or conducted. Petition to be heard by Bureau in case of federations, national or industry unions, trade union centers. Formal requirements, processes and periods of disposition of this disposition is the same as those stated in Rule XI of DO 40-03 Inter/Intra Union Dispute. Appo intment of an election officer and procedures and periods in conduct of pre-elec tion conference and election proceedings under Rule IX Conduct of Certification Election will also apply here. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX G: Bargaining Procedure under the Labor Code (Art. 250) Serve written noti ce with statement of proposals upon the other party. Reply not later than 10 days from receipt Reply of other party If differences ar ise on the basis of notice and reply Conference If the dispute is not settled. Board shall intervene, call parties to conciliati on meetings The recognized or certified labor union and its employer may adopt such procedur es and processes they may deem appropriate and necessary for the early terminati on of their negotiations. They shall name their respective representatives to th e negotiation, schedule the number and frequency of meetings, and agree on wages , benefits and other terms and conditions of work for all employees covered in t he bargaining unit. Board shall have the power to issue subpoenas to require attendance to such meet ings. Board shall exert all efforts to settle disputes amicably, encourage parti es to submit case to voluntary arbitrator. Parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX H: PETITION FOR CERTIFICATION ELECTION Who may file? any legitimate labor organization employer, when requested to bargain collectvely Raffle dispensed wi th If there is only 1 Med-arbiter Where to file? with the Regional Office which issued the certificate of registration/certificate of creation When to file? any time, except: a. When voluntary recognition has been entered, or a valid certifi cation, consent or run-off election has been conducted within 1 year prior to th e filing. b. negotiations in good faith with the employer c. bargaining deadlock had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout. d. Registered CBA may file only within 60 d ays prior to the expiration of the CBA. File petition for certification election Raffle Service of notice of preliminary conference Preliminary Conference Must be within 10 days from Receipt of petition Parties agree to a consent election Parties fail to agree on consent election Hearings Forward records of petition to Regional Director/ authorized representa tive may conduct such number of hearings, but hearings should not exceed 15 days from preliminary hearing. within 10 days from last hearing First pre-election conference Must be within 10 days from Date of entry of agree ment Decision If there is no appeal Within 10 days from Receipt of decision, Med-arbiter shall enter The finality of the decision In the records of the case Grounds for Denying Petition a. the petitioner is not listed in the Departments r egistry of legitimate labor unions or that its legal personality has been revoke d or cancelled with finality. b. the petition was filed before or after the free dom period of a duly registered collective bargaining agreement; provided that t he sixty-day period based on the original collective bargaining agreement shall not be affected by any QuickTime and a TIFF (Uncompressed) decompressor amendment , extension or renewal of the collective bargaining agreement; are needed to see this picture. c. the petition was filed within one (1) year from entry of volun tary recognition or a valid certification, consent or run-off election and no ap peal is pending; d. a duly certified union has commenced and sustained negotiati ons with the employer within the one-year period referred to in Section 14.c of this Rule, or the bargaining deadlock existing had been submitted to conciliatio n or arbitration or had become the subject of a valid notice of strike or lockou t. e. in case of an organized establishment, failure to submit the twenty-five p ercent (25%) support requirement for the filing of the petition for certificatio n election.

Decision Unorganized establishment Organized establishment Petition Granted Petition Denied Petition Granted Petition Denied Non-appealable File memorandum of appeal with Regional Office where the petition originated within 10 days from receipt of decision Regional Director to transmit entire records within 24 hours from receipt of app eal to Office of Secretary Reply reply may be filed by any party within 10 days from receipt of memorandum of app eal. Secretary shall have 15 days from receipt of the entire records to decide S ecretary decision final and executory within 10 days from receipt by the parties . No motion for reconsideration shall be entertained. The entire records of the case shall be remanded to the Regional Office for implementation within 48 hours from notice of receipt of decision. Secretarys Decision QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX I: Conduct of Certification Election Receipt of notice of entry of final judgment granting the conduct of certificati on election 24 hours Regional Director shall cause the raffle of the case to an Election Officer 24 hours from receipt of the assignment Failure to appear in th e preelection conference considered a waiver of right to question any agreement in the pre-election conference. But nonappearing party retains the right to be g iven notices of subsequent pre-election conferences Election Officer shall cause the issuance of notice of pre-election conference upon the contending unions an d the employer Pre-election conference Posting of Notices: at least 10 days before election. 2 most conspicuous places in company premises Contents: 1. date and time of election 2. names of all conte nding unions 3. description of the bargaining unit, list of eligible and challen ged voters Must be within 10 days from receipt of the assignment Must be completed within 3 days from date of the first hearing Certification Election Must not be later than 45 days from date of the first pre-election conference Election precincts close the election precincts shall open and close on the date and time agreed upon dur ing the pre-election conference. the opening and canvass shall proceed immediate ly after the precincts have closed. The proclamation must be under any of the ff. conditions: 1. no protest was file d or, even if one was filed, the same was not perfected within the five-day peri od for perfection of the protest. 2. no challenge or eligibility issue was raise d or, even if one was raised, the resolution of the same will not materially cha nge the results of the elections. Canvass of votes Failure of Election when the votes cast is less than the majori ty of the eligible voters, and there are no material challenged QuickTime and a v otes. TIFF (Uncompressed) decompressor are needed to see this picture. Another c ertification or Transmit records of the case to consent election may be Med-arbi ter. Med-arbiter shall held within 6 months. issue an order proclaiming the resu lts of the election.

ANNEX J: Procedure in Handling Grievances Based on DO 40-03 This will apply only in the absence of a provision in the CBA or existing company policy. Present grievance to shop steward Immediate supervisor No settlement Grievance Committee Still unresolved Either party may serve notice upon the othe r of its decision to submit to voluntary arbitration If the party upon whom the notice is served fails or refuses to respond favorable within 7 days from receip t: 1. Designated voluntary arbitrator or panel shall begin voluntary arbitration proceedings, or 2. Board shall call the parties and appoint a voluntary arbitra tor or panel. 10 days Grievance committee decision QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX K: Inter/Intra-Union Dispute & Other Related Labor Relations Disputes File complaint or petition Raffle Raffle is dispensed with if there is only one Medarbiter or Hearing Officer in t he Region Petition shall be transmitted to Medarbiter Within 3 days from receipt Of petiti on Prepare, cause service of notice of preliminary conference upon the party fil ing the petition. Med-arbiter shall cause the service of summons upon the respon dents. Preliminary conference within 10 days from receipt of the complaint or petition Parties agree to amicable settlement No amicable settlement Decision based on the amicable settlement within 5 days from preliminary confere nce. Proceed with stipulation of facts, limitation of issues, clarificatory questioni ng, submission of laws and jurisprudence limited to clarificatory questions by M ed-arbiter deemed submitted for decision after the last hearing or upon expirati on of 25 days from preliminary conference, whichever comes first. (max of 25 day s to conduct hearings) Hearing/s Bureau/Med-arbiter must Decision Decide within 20 days From last hearing QuickTi me and a decompressor Who may file? TIFF (Uncompressed) this picture. Where to fi le? are needed to see 1. Regional Office which issued certificate of registratio n/creation any legitimate labor - complaints involving labor unions with indepen dent registration, chartered organization or its members locals, workers associa tion, its officer/members. any party-in-interest 2. Bureau if the issue involves the entire - involving federations, national unions, industry unions, its membe rship of the labor officers/members. organization, complaint must 3. Regional Di rector be supported by 30% of - petitions for cancellation of registration of la bor unions, petitions for members. deregistration of CBA 4. Med-arbiter - other inter/intra union disputes and other related labor relations disputes

Med-arbiter/ Regional Director Decision Bureau Director Decision Must appeal within 10 days from receipt of decision Bureau Director Office of th e Secretary May call parties to a clarificatory hearing Must decide within 20 da ys From receipt of records Bureau Director Decision Office of DOLE Secretary Final and executory If there is no appeal with 10 days Bureau Director Decision Final and Executory Only 1 MR allowed Office of Secretary Decision Final and Exe cutory Records remanded to the Regional Office or Bureau of origin For implementation w ithin 24 hours From receipt of decision by the parties and finality of decision Execution of Decision Med-arbiter and Regional Director Decision, or Bureau Deci sion, in the exercise of its original jurisdiction automatically stayed pending appeal. Bureau Decision, Office of Secretary Decision in exercise of its appella te jurisdiction immediately executory upon entry of final judgment. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX L: Jurisdiction Supreme Court Court of Appeals Office of the DOLE Secretary BLR Voluntary Arbitration NLRC Strike Subject to Assumption of Jurisdiction assumed Disputes Submitted to Voluntary Arbitrator Grievance Machinery 1. certified Labor Arbiter (217) 1. 1. Federation / National Union / Trade Union Center Registration, revocation and cancellation cases Regional Director (128 / 129) POEA Bureau of Labor Relations 1. 2. 3. 2. 4. Regional Office Med-Arbiter 1. Petition for Certification Election. 2. Complaint s or petitions involving labor unions with independent registration, chartered l ocals, workers associations, its officers or members. 3. 4. 5. 2. 5. 6. 2. Election of Officers CBA Registration Independent Union/Chartered Local Registra tion Revocation and cancellation cases 6. 7. Cancellation / Suspension of License of Authority to recruit of Recruitment Agen cies (until phase out within five years as provided in RA 8042) Disciplinary Act ion against OFWs 7. 3. 8. 9. Other inter/intra-union disputes and related labor relations disputes shall be h eard and resolved by the MedArbiter in the Regional Office. A request for examin ation of books of accounts of independent labor unions, chartered locals and wor kers associations (Art. 274)

8. Actions arising from 241 arising from administration and accounting of union funds ULP 1. Labor Standards Enforcement Termination Cases Enforcement of labor 2. Occ upational Standards with claim Safety and Health exceeding P5,000 per Violations individual 3. Money Claims Damages arising from arising from Labor EER Standard s All other claims Violations NOT arising from EER exceeding P5,000 Violation of per individual AND Compromise w/o claims for Agreements reinstatement Execution of award of NOTE: Voluntary Arbitrator QuickTime and a The P5,000 TIFF (Uncompre ssed) decompressor are needed to see this picture. limit is applicable to the Ov erseas adjudicatory powers of Employment the Regional Director Disputes, i.e. mo ney under Art. 129 and not claims arising from the visitorial and such Wage dist ortion enforcement power cases (where there is under 128. no CBA) Complaints involving federations, national unions, industry unions, its officers or member organizations. 3. A request for examination of books of accounts of f ederations or national unions and trade union centers pursuant to Article 274 4. Disputes concerning interpretation or implementation of CBA Disputes concerning of interpretation or implementation of company personnel policies All others def ined as grievance by CBA Wage distortion cases (where there is CBA)

ANNEX M: Republic Act No. 9347 An Act Rationalizing the Composition and Function s of the National Labor Relations Commission, Amending for this Purpose Article 213, 214, 215 and 216 of P.D. No. 442, as Amended, Otherwise Known as the Labor Code of the Philippines Art. 213. National Labor Relations Commission NLRC shall be attached to the DOLE solely for program and policy coordination only, compos ed of a Chairman and 23 members. 8 members shall be chosen only from the nominee s of the workers and employers organizations respectively. The Chairman and 7 re maining members shall come from the public sector, with the latter to be chosen preferably from among the incumbent labor arbiters. NLRC may sit en banc or in 8 divisions, with 3 members each. En banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of it s divisions and regional branches and formulating policies affecting its adminis tration and operations Divisions when in the exercise of its adjudicatory and al l other powers, functions and duties 1st 6th divisions Luzon & NCR 7th & 8th Vis ayas and Mindanao NLRC sitting en banc may, on temporary or emergency basis, all ow cases within the jurisdiction of any division to be heard and decided by any other division whose docket allows the additional workload and such transfer wil l not expose litigants to unnecessary additional expenses. The divisions of the NLRC shall have exclusive appellate jurisdiction over cases within their respect ive territorial jurisdiction. The concurrence of 2 Commissioners of a division s hall be necessary for the pronouncement of a judgment or resolution. Whenever th e required membership in a division is not complete and the concurrence of 2 Com missioners to arrive at a judgment or resolution cannot be obtained, the Chairma n shall designate such number of additional Commissioners from the other divisio ns as may be necessary. The conclusions QuickTimedivision on any case of a and a TIFF decompressor submitted to it (Uncompressed) this picture. for decision shal l be reached in are needed to see consultation before the case is assigned to a member for the writing of the opinion. It shall be mandatory for the division to meet for purposes of the consultation ordained therein. Art. 214. Headquarters, branches and provincial extension units Offices of 1st 6th Divisions Metro Mani la 7th Division Cebu Cagayan de Oro 8th Division The Commission shall establish as many regional branches as there are regional offices of the DOLE, sub-regiona l branches or provincial extension units. There shall be as many Labor Arbiters as may be necessary for the effective and efficient operation of the NLRC. Art. 215. Appointment and qualifications Chairman and other Commissioners members of the Philippine Bar and must have been engaged in the practice of law in the Phil ippines for at least 15 years, with at least 5 years experience or exposure in t he field of labormanagement relations, and shall preferably be residents of the region where they shall hold office LAs members of the Philippine Bar and must h ave been engaged in the practice of law in the Philippines for at least 10 years , with at least 5 years experience or exposure in the field of labormanagement r elations Term hold office during good behavior until the age of 65 years, unless sooner removed for cause as provided by law or become incapacitated to discharg e duties of their office But the President may extend the services of the Commis sioners and LAs up to the maximum of 70 years upon the recommendation of the Com mission en banc. Chairman, Division Presiding Commissioners and other Commission ers appointed by the President. Appointment to any vacancy in a specific divisio n shall come only from the nominees of the sector which nominated the predecesso r. LAs appointed by the President, upon recommendation of the Commission en banc to a specific arbitration branch, preferably in the region where they are resid ents, and shall be subject to the Civil Service Law, rules and regulations. Prov ided, that the labor arbiters who are presently holding office in the region whe re they are residents shall be deemed appointed thereat. Chairman and the Commis sioners, shall appoint the staff and employees of the Commission, and its region al branches as the needs of the service may require, subject to the Civil Servic e Law, rules and regulations, and upgrade their current

salaries, benefits and other emoluments in accordance with law. Art. 216. Salari es, benefits and other emoluments Chairman and Commissioners shall have the same rank, receive an annual salary equivalent to, and be entitled to the same allow ances, retirement and benefits as, those of the Presiding Justice and Associate Justices of the Court of Appeals, respectively. LAs shall have the same rank, receive an annual salary equivalent to and be enti tled to the same allowances, retirement and other benefits and privileges as tho se of RTC Judges. In no case, however, shall the provision of this Article resul t in the diminution of the existing salaries, allowances and benefits of the afo rementioned officials. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX N: Salient Provisions of 2005 Revised Rules of Procedure of the NLRC Suppl etory Application of the Rules of Court Pertinent provisions of the Rules of Cou rt have a suppletory application in the absence of an applicable provision there to in the interest of expeditious dispensation of labor justice. Appearances A l awyer appearing for a party is presumed authorized to appear for such purpose. A non-lawyer may appear or counsel in the proceedings only under the following co nditions: a. He represents himself as party to the case b. He represents a LLO w hich is a party case, provided that he represents a certification from the BLR o r Regional Office of the DOLE attesting that his organization duly registered an d listed in the roster of legitimate labor organizations, together with a verifi ed certification issued by the secretary and attested by the president of the la bor organization stating that he is duly authorized to represent the organizatio n in the case and a copy of the board resolution granting him such authority c. He represents a member or members of a LLO existing within an employers establish ment which is a party to the case provided that he present a verified certificat ion proving his authority from such member / members and verified certification issued by the secretary and attested by the president of such organization stati ng that the person/s he is representing are members of the organization which is existing in the employers establishment d. He is a duly accredited member of a l egal aid office recognized by the DOJ and the IBP upon presentation of his accre ditation e. He is the owner or president of the corporation which is party to th e case upon presentation of a verified certification of his authority and a boar d resolution of the corporation granting him such authority. Pleadings Prohibite d pleadings: QuickTime and a TIFF (Uncompressed) decompressor a. Motion to are ne eded to see this picture.on grounds of lack dismiss (except of jurisdiction over the subject matter, improper venue, prescription and forumshopping) b. Motion f or a bill of particulars c. Motion for new trial d. Petition for relief from jud gment when filed with the LA e. Petition for certiorari, mandamus or prohibition f. Motion to declare defendant in default g. Motion for reconsideration or appe al from any interlocutory order of the LA Denial of MTD is not appealable Certif icate of Non-Forum Shopping is required Verification lawyer can sign verificatio n but not the certificate of non-forum shopping Venue All cases within the juris diction of the LA to hear and decide may be filed with the Regional Arbitration Branch (RAB) having jurisdiction over the workplace of the complainant. Venue pl ace where the employee is regularly employed at the time the cause of action aro se; whether on temporary detail, assignment or travel. For field, ambulant or it inerant workers, the workplace shall mean the place where they are regularly ass igned or where they are supposed to regularly receive their salaries / wages and report the result of their assignment. If 2 or more RABs have jurisdiction over the workplace of the complainant, the branch that first acquired jurisdiction o ver the case shall exclude the others. Venue of a case may be transferred to ano ther branch upon written agreement of the parties or upon order of the LA or NLR C, upon motion by the proper party in meritorious cases. Cases involving OFWs RA B having jurisdiction over the place where the complainant resides or where the principal office of any of the respondents is situated, at the option of the com plainant. Subject to Art. 263 (g) of the Code, the LA shall dispose of the case assigned to him including any or all incidents thereof in the same proceeding to avoid multiplicity of suits. Submission of Position Paper and Reply When requir ed, the LA should direct the parties to file simultaneously their verified posit ion papers attaching their supporting documents and affidavits within the inexte ndible period of 10 calendar days from the date of the termination of the concil iation conference. A reply may be filed by either party within 10 calendar days from receipt of the position papers. No facts or evidence to prove facts of any cause of action not included in the complaint are allowed to be alleged in the p osition papers. LA shall determine whether there is a need for a hearing or clar ificatory conference and at his discretion, the LA may ask clarificatory questio ns to elicit further information on facts.

LA has full control and shall personally conduct the hearing / clarificatory con ference. Appeals Decisions and orders of the LA are final and executory unless a ppealed to the Commission within 10 calendar days; and in case of orders and res olutions of the Regional director of the DOLE, within 5 days from receipt thereo f. No motion or request for extension of the period to appeal is allowed. Requis ites of perfection of appeal: 1. Appeal must be: a) filed within the reglementar y period provided in Sec.1 of this Rule b) verified by the appellant himself in accordance with the Rules of Court Sec.4, Rule 7 c) in form of a memorandum of a ppeal stating i. the grounds relied upon and arguments in support thereof ii. re lief prayed for, iii. statement of the date appellant received the appealed deci sion, d) in 3 copies e) accompanied by i. proof of payment of required appeal fe e ii. posting of a bond iii. certificate of non-forum shopping iv. proof of serv ice upon other parties In case the decision of the Labor Arbiter or the Regional Director involves a monetary award, an appeal by the employer may be perfected only upon the posting of a bond. Once an appeal is filed, the LA loses jurisdict ion over the case. All pleadings and motions pertaining to the appealed case shall thereafter be addressed to and filed with the Commission. Injunction A preliminary injunction or TRO may be granted by the NLRC through its Divisions when it is established on the basis of the sworn all egations in the petition that the acts complained of involving or arising from a ny labor dispute before the NLRC which if not restrained may cause grave or irre parable damage to any party. After the hearing of the testimony of witnesses and with opportunity for cross examination in support of the allegations of the com plaint or petition under oath, and testimony by way of opposition thereto, and o nly after a finding of fact by the Commission: a. that the prohibited acts have been threatened and will be committed and continued unless restrained; b. that s ubstantial and irreparable injury to petitioners property will follow; c. that as to each item of relief to be granted, greater injury will be inflicted upon res pondents by the granting of relief; d. that the petitioner has no adequate remed y at law; e. that the public officers charged with the duty to protect petitione rs property are unable or unwilling to furnish adequate protection. If the petiti oner shall also allege that unless a TRO shall be issued without notice, a subst antial or irreparable injury to petitioners property will be unavoidable, such a TRO may be issued upon testimony under oath, or by oath, or by affidavits of the petitioners witnesses, if sufficient, if sustained to justify the Commission in the issuance thereof. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

ANNEX O: Salient Features of the SSS Law and GSIS Law Social Security Act of 199 7 (RA 8282) WHO ARE COVERED Government Service Insurance Act of 1997 (RA 8291) 1 . EMPLOYER the national government, its political subdivisions, branches, agenci es or instrumentalities, including GOCCs, and financial institutions with origin al charters, the constitutional commissions and the judiciary 2. EMPLOYEE any pe rson receiving compensation while in service of an employer as defined herein, w hether by election or appointment DEPENDENTS CONDITIONS FOR CHILD TO BE CONSIDERED DEPENDENT BENEFICIARIES 1. PRIMARY 1. EMPLOYER any person, natural or judicial, domestic or foreign who carries on in the Philippines any trade, business, industry undertaking or activity of any kind and uses the services of another person who is under his orders as regards employment 8(c) *EXEMPT EMPLOYER: government and any of its political subdivisio ns, branches and instrumentality, including GOCCs, i.e., those under GSIS 2. EMP LOYEE any person who performs services for an employer who receives compensation for such services, where there is an employeremployee relationship 3. SELF-EMPL OYED considered both employer and employee 1. Legal spouse entitled for support; 2. Child, whether legitimate, legitimated, legally adopted or illegitimate; 3. Parents dependent for support 1. Unmarried; 2. Not gainfully employed; 3. Has no t reached 21 years of age; OR 3. Not over age of majority; OR 4. Incapable of su pporting himself either physically or mentally prior to 21 years of age or age o f majority, as the case may be a. Dependent Spouse until remarriage AND b. Depen dent Legitimate or Legitimated or Legally Adopted and Illegitimate Children a. D ependent Parents b. Absent primary and secondary beneficiaries, any other person designated by member as secondary beneficiary a. Legal, Dependent Spouse until remarriage AND b. Dependent Children 2. SECONDARY a. Dependent Parents AND b. Legitimate descendants subject to restrictions on de pendent children, legitimate descendants 3. OTHERS BENEFITS As to DEATH BENEFITS, if no beneficiary qualifies under the Act, benefits shall be QuickTime and a paid to Legal Heirs in accordance with Law TIFF (Uncompressed) decompressor are needed to Succession of see this picture. 1. Monthly Pension 2 . Dependents Pension 3. Retirement 4. Death 5. Permanent Disability 6. Funeral 7 . Sickness 8. Maternity (ONLY 1ST FOUR DELIVERIES OR MISCARRIAGES) 1. ALL MEMBERS a. Life Insurance b. Retirement c. Disability d. Survivorship e. Separation f. Unemployment 2. JUDICIARY

9. Loan Grant COVERAGE 1. COMPULSORY A. Life Insurance ONLY ALL TAX EXEMPT COMPULSORY for all employees receiving com pensation who have not reached compulsory retirement age, irrespective of employ ment status a. All employees not over sixty (60) years of age and their employers; compulsor y coverage of the employer shall take effect on the first day of his operation a nd that of the employee on the day of his employment b. Self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including, but limited to: all self-employed professionals; partners and single-proprietors of business; actors and actresses, directors, scriptwrite rs and news correspondents not employees; professional athletes, coaches, traine rs and jockeys, and individual farmers and fishermen; upon their registration wi th the SSS c. Domestic helpers sixty years of age and below with a monthly incom e of not less than P1,000 on the date of their employment d. Individual farmers and fishermen under SSS rules and regulations a. Filipinos recruited by foreignbased employers for employment abroad b. Employee separated from employment to m aintain his right to full benefits c. Self-employed who realizes no income for a certain month d. Spouses who devote full time to managing household and family affairs unless specifically mandatorily covered 2. VOLUNTARY *By Arrangement: Any foreign government, international organization or wholly ow ned instrumentality employing workers in the Philippines or employing Filipinos outside the Philippines may enter agreement with Philippines for inclusion of su ch employees in SSS EXCEPT those already covered by their respective civil servi ce retirement system. QuickTime and a TIFF (Uncompressed) decompressor to EXCEPTI ONS are needed1.see this picture. Employment purely casual and not FROM for purp ose occupation, or business COVERAGE employer 2. Service performed on or in conn ection with alien vessel, if employed when such vessel is outside of Philippines 3. Employees of Philippine government or instrumentality or agency thereof 4. S ervice performed in the employ of a foreign government, or international 1. Members of the AFP 2. Members of the PNP 3. Contractual employees, who have n o employer-employee relationship with the agency to serve 4. Members of judiciar y and constitutional commissions: covered by life insurance only

COMPENSATION BASIS OF CLAIM organizations, or wholly owned instrumentality employing workers in the Philippi nes or employing Filipinos outside of the Philippines 5. Services performed by t emporary employees and other employees excluded by SSS regulation; employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of an independent contractor All actual renumeration for e mployment, including the mandated cost-of-living allowance, as well as the cash value of any renumeration paid in any medium other than cash except that part of the renumeration in excess of the maximum salary credit Non-work connected disa bility, sickness, maternity, death and old age and other contingencies resulting in loss of income or financial burden (sec. 2) The basic pay or salary received by an employee, pursuant to his election/appoin tment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay Work-connected exempt fr om liability where permanent disability due to his grave misconduct, habitual in toxication, or willful intention to kill himself or another (sec. 1517) A member separated from the service shall continue to be a member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compen sable under this Act EFFECTS OF SEPARATION FROM EMPLOYMENT 1. Employers contribution on his account ceases 2. Employees obligation to contrib ute also ceases at the end of the month of separation 3. Employee shall be credi ted with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act REPORTING Employer: A. Employer: Report immediate ly to SSS the names, Report to GSIS the names, employment REQUIREMENTS ages, civ il status, occupations, salaries status, positions, salaries of the employee and such other matter as determined by the and dependents of all his covered GSIS e mployees B. Self-employed: Report to SSS within 30 days from the first day of hi s operation, his name, age, civil status, occupation, average monthly net income and his dependents FUNDING 1. Employers contributions 2. Employees/members contrib utions EXEMPTION Property, assets, and revenues of SSS and GSIS are all exempt f rom taxes, and all QuickTime and a FROM TAX/LEGAL ombenefits paid by SSS or GSIS shall likewise be exempt from taxes, assessments, fees, TIFF (Unc pressed) decom pressor d to see this picture. PROCESS/LIEN are needecharges, and duties of all kind DISPUTE Dispute arising from: Any dispute arising under this Act and other 1. Coverage SETTLEMENT laws administered by GSIS 2. Benefits 3. Contributions Ju risdiction: GSIS 4. Penalties 5. Any matters related thereto When decision made: 30 days from receipt of the hearing officers findings and Jurisdiction: Social S ecurity Commission recommendations or 30 days after submission for decision

When decision made: Mandatory period of 20 days from submission of evidence Appe al: CA questions of law and facts SC questions of law only 10 years from accrual of right of action Appeal: CA Rule 43, Section 31 SC Rule 45 PRESCRIPTIVE PERIOD 4 years from date of contingency QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.