FUNDAMENTAL PRINCIPLES

What is the principle of co-determination?

The principle of co-determination refers to the right of workers to participate in the policy and decision-
making processes directly affecting their rights and benefits. This does not interfere with management
prerogative, as this does not mean that workers should approve management policies or decisions. (PAL
v. NLRC, 1993)

RECRUITMENT AND PLACEMENT

What are the elements of illegal recruitment in large scale?

Three elements must concur: (LR3)
1. Offender has no valid license or authority in recruitment and placement of workers
2. Offender undertakes any of the “recruitment and placement" activities under Article 13(b), LC, or
any of the prohibited practices enumerated under Article 34, LC or Sec. 6 of R.A. 8042
3. Offender committed the same against 3 or more persons, individually or as a group (People v.
Cagalingan, 2016)

NOTE: Under RA 8042, as amended, illegal recruitment can be committed by a licensed recruiter
or holder of authority if it undertakes any of the prohibited activities under Sec. 6 of RA 8042.
(Sto. Tomas v. Salac, 2012)

When do foreign laws apply to OFW contracts?

As a general rule, Philippine laws apply to even overseas employment contracts consistent with the
Constitution’s full protection of labor. Even if the OFW has his employment abroad, it does not strip him
of his rights to security of tenure, humane conditions of work and a living wage.

As an exception, the parties may agree that foreign law shall govern the employment contract. To fall
under this exception, all of the ff. requisites must be met: (EPCP)
1. Expressly stipulated in the contract that a specific foreign law shall govern;
2. The foreign law must be proven;
3. The foreign law stipulated must not be contrary to law, morals, good customs, public order, or
public policy of the Philippines; and
4. That the overseas employment contract must be processed through the POEA. (IPAMS v. De Vera,
2016)

What wage rates apply to PWDs?

1. Qualified Individual with Disability – 100% of the applicable minimum wage (Sec. 5, RA 7277); an
individual with a disability who, with or without reasonable accommodations, can perform the
essential functions of the employment position that such individual holds or desires (Sec. 4, RA
7277)
 2. Qualified Individual with Disability hired as an apprentice or learner – not less than 75% of the
applicable minimum wage (RA 7277)
3. Handicapped Workers – not less than 75% of the applicable minimum wage (Art. 80, LC); are
those whose earning capacity is impaired by age or physical or mental deficiency or injury (Art.
78, LC)

LABOR STANDARDS

What are the rest periods the Kasambahay is entitled to?

Daily rest period – an aggregate daily rest period of 8 hours (sec. 20, RA 10361)
Weekly rest period – at least 24 consecutive hours of rest in a week. The employer and the kasambahay
shall agree in writing on the schedule of the weekly rest day but the preference of the kasambahay, when
based on religious grounds, shall be respected (sec. 21, RA 10361)

In addition to setting the minimum wage, can the Regional Tripartite Wages and Productivity Board
(RTWPB) provide additional exemptions?
Yes. The list of exemptible industries in the NWPC Guidelines No. 001-95 is not exclusive. Section 2 of the
said guidelines gives the RTWPBs the power to exempt additional establishments with the minimum wage
as long as they comply with the rules of the NWPC. (NWPC and RTWPB vs. APL and the TNMR, 2014)

What are the methods of fixing the minimum wage rates?

1. Floor-Wage method which involves the fixing of a determinate amount to be added to the
prevailing statutory minimum wage rates.
2. Salary-Cap or Salary-Ceiling method where the wage adjustment is to be applied to employees
receiving a certain denominated salary ceiling.

The distinction between the 2 methods is best shown by way of illustration. Under the floor wage method,
it would be sufficient if the Wage Order simply set P15.00 as the amount to be added to the prevailing
statutory minimum wage rates; while in the salary ceiling method, it would be sufficient if the Wage Order
states a specific salary, such as P250.00, and only those earning below it shall be entitled to the wage
increase.

POST-EMPLOYMENT

Is fixed-term employment similar to probationary employment?

(DEL CASTILLO) The fixed-term character of employment essentially refers to the period agreed upon
between the employer and the employee; employment exists only for the duration of the term and ends
on its own when the term expires. In a sense. employment on probationary Status also refers to a period
because of the technical meaning “probation" caries in Philippine labor law a maximum period of six
months or in the academe, a period of three years for those engaged in teaching jobs. Their similarity
ends there, however, because of the overriding meaning that being "on probation" connotes, i.e., a
process of testing and observing the character or abilities of a person who Is new to a role or Job. (Colegio
del Santissimo Rosario vs. Rojo. 2013)

What are the duties of a school in employing teachers on probationary status?

(DEL CASTILLO) For teachers on probationary employment, in which case a fixed term contract is not
specifically used for the fixed term it offers, it is Incumbent upon the school to have not only set
reasonable standards to be followed by said teachers in determining qualification for regular employment,
the same must have also been communicated to the teachers at the start of the probationary period. or
at the very least, at the start of the period when they were to be applied. These terms. in addition to those
expressly provided by the Labor Code.

What Is the amount of "substantial capital" required under the new Rules?
According to sec. 3(1) of D.O. 174-17,
1. In the case of corporations, partnerships or cooperatives — paid-up capital stocks/shares of at
least PS Million; Of
2. In the case of single proprietorship – a net worth of at least P5 Million.

Do all independent contracting arrangements contemplate a trilateral relationship?

Jurisprudence has recognized another kind of independent contractor: individuals with unique skills and
talents that set them apart from ordinary employees There is no relationship in this case because the
independent contractor himself or herself perform' the work the principal. In other words, the
relationship is bilateral. (Fuji Television, Inc v Espiritu. 2014)

NOTE D.O. No. 174, Series of 2017 applies only to trilateral relationship which characterizes contracting
or subcontracting arrangement.

What are the elements of valid dismissal based on a willful breach of trust?
The elements are: (ABEC)
1. There must be an act, omission. or concealment;
2. The act, omission or concealment involves a breach of legal duty. trust. or confidence justly
reposed;
3. It must be committed against the employer or his/her representative: and
4. It must be in connection with the employees' work. (D O No. 147-15)

What if the payment of nominal damages becomes impossible, unjust, or too burdensome?
In instances where the payment of nominal damages becomes impossible, unjust or too burdensome,
modification becomes necessary in order to harmonize the disposition with the prevailing circumstances.

In the determination of the amount of nominal damages, several factors are taken into account (ANC-TB)
1. the authorized cause invoked (whether it was a retrenchment or a closure or cessation of
operation or the establishment due to serious business losses or financial reverses or 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
status as borne by the records
4. the employer's grant of other termination benefits 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. (PNCC Skyway Corp Secretary or Labora Employment, 2017)

During the duration of the 30-day notice under Art. 298 (Closure of Establishment and Reduction of
Personnel), can an employer choose to not require employees to report for work?
Yes, an employer may opt not to require the dismissed employees to report for work during the 3-day
notice period. It is within the employers prerogative and discretion to retain the services of its employees
for 1 month and to continue paying their salaries and benefits corresponding to that period even when
there is no more work to be done. (PNCC Skyway Corp. v. Secretary, 2016)

NOTE: In another case (involving PNCC Skyway Corp. also), the Court held that neither the payment of
employees' salaries for the one-month period nor the employees alleged actual knowledge of the
amendment of the agreement between PNCC and the government (which caused the cessation of
operations) was sufficient to replace the formal and written notice required by the law. In this case, the
Court held that giving the notice merely three days before the actual cessation defeats the very purpose
of the required notice. (PNCC Skyway v. Secretary, 2017)

Can an unjustified reduction of working days constitute illegal dismissal?

Yes, when an employer committed illegal reduction of work hours. the employer may be held liable for
constructive dismissal. An employer's unilateral and arbitrary reduction of the work day scheme
significantly reduces employees' salaries thereby rendering it liable for constructive dismissal. (Intec Cebu
v. CA, 2016)

What are the other reliefs that are not provided in the Labor Code but are granted in illegal dismissal
cases?
The following reliefs that are awarded in illegal dismissal cases. other than those granted under Article
294:

1. Award of separation pay in lieu of reinstatement. (Starlight Plastic Industrial Corporation v. NLRC,
1989)
2. Award of penalty in the form of nominal damages in case of termination due to just or authorized
cause but without observance or procedural due process. (Agabon, 2004)
3. Award of damages and attorney's fees. (Suaro v. BPI, 1989)
4. Award of financial assistance in cases where the employee's dismissal is declared legal but
because of long years of service, and other considerations, financial assistance is awarded. (PLDT
v. NLRC, 1988)
5. Imposition of legal interest on separation pay. back wages and other monetary awards. (Chan,
2017)
What is the rule on Early Retirement Plans?
A retirement plan giving the employer the option to retire its employees below the ages provided by law
must be assented to and accepted by the latter. otherwise. Its adhesive imposition will amount to a
deprivation of property without due process of law. (Cercado v. Uniprom, 2010)

What is Anti Age Discrimination In Employment Act?

It is the law which prohibits and penalizes discrimination in employment on account of age The game law
provides for exceptions wherein an employer is allowed to set age limitations in employment if:
a. Age is a bona fide occupational qualification reasonably necessary in the normal operation of a
particular business or where the differentiation is based on reasonable factors other than age;
b. The intent is to observe the terms of a bona fide seniority system that is not intended to evade
the purpose of the law;
c. The intent is to observe the terms of a bona tide employee retirement or a voluntary early retirement
plan consistent with the purpose of the law; or
d. The action is duly certified by the Secretary of Labor and Employment in accordance with the purpose
of the law. (Anti-Age Discrimination in Employment Act. Republic Act No 10911)

What are the requisites for a valid quitclaim executed by a local employee and migrant worker?

Local Workers Migrant Workers

(L-FEN) (FB-TESS)
Lack of fraud or deceit Fixed amount as full and final compensation
Entered into Freely and voluntarily The Benefits of the OFW and corresponding
Trade-off is Equitable and credible monetary amounts which he is giving up for
Not contrary to law, public order, public policy, the compromised amount
morals, good customs nor prejudicial to a third A statement that the quitclaim and its nature
person with a right recognized by law. and consequences have been Explained to
(Goodrich Manufacturing Co. v. Ativo, 2010) him in a language or dialect he understands
A statement that the quitclaim has been
signed knowingly and voluntarily and consent
was without Threat or other undue influence
B by two (2) witnesses who can attest to the
execution
Subscribed and sworn to.
(EDI-Staffbuilders Internarional, Inc. vs.
National Labor Relations Connission, 2007)

Is theft of company property a serious misconduct?

(DEL CASTILLO) YES. Jurisprudence has classified theft of company property as a serious misconduct and
denied the award of separation pay to the erring employee. The employee in this case attempted to steal
the property of her long-time employer. (Reno Foods v. Nagkakaisang Lakas ng Manggagawa-Katipunan,
March 15, 2010)
MANAGEMENT PREROGATIVE

What is covered by the employer's exercise of its management prerogative?

Management is free to regulate, according to its own discretion and judgment, all aspects of employment
including hiring , work assignments, working methods, time, place and manner of processes, to be
followed, supervision of workers, working regulations, transfer of employees, work supervision, lay off of
and discipline, dismissal and recall of workers. (Inutan v. Nepar Contracting and Allied Services, 2015)

What are the limitations on the exercise of management prerogative?

Management prerogatives are not absolute but are subject to legal limits, collective bargaining
agreements and the general principles of fair play and justice. (The Orchard Golf and Country Club v.
Francisco, 2013)

LABOR RELATIONS

Are ambulant, intermittent and itinerant workers the only workers who may form and join a workers'
association?
No. The last sentence of Art 253 broadens the coverage or workers who can form or join a workers'
association and is not exclusive to ambulant. intermittent and itinerant workers. The right to self-
organization is not limited to unionism. Workers may also form or join an association for mutual aid and
protection and for other legitimate purposes.

Right to self-organization includes tight to form a union, workers' association rid labor management
councils. While every labor union is a labor organization, not every labor organization is a labor union.
Collective bargaining is not the end-goal of employee representation but employee participation.
(Samahan ng mga Manggaggwa sa Hann 2015)

Must the charter certificate of a tabor organization be certified under oath to be considered a legitimate
labor organization?
(DEL CASTILLO) No. The labor organization’s charter certificate need not be certified under oath in order
for it to be considered a legitimate labor organization. Only the additional documents (list of officers,
constitution and by-laws) are required to be certified under oath. (Samahan ng mga Manggagawa sa
Charter Chemical v. Charter Chemical, 2011)

Should the pendency of a petition tot the cancellation of registration bar the conduct of the certification
election?
(DEL CASTILLO) NO. the pendency of the cancellation of union registration brought against the labor
organization applying for the certification election should not prevent the conduct of the certification
election The rationale for this is that at the time the union filed its petition certificate. it stilt had the legal
personality to perform such act absent an order directing cancellation. (Legend International Resorts Lt, v
Kilusang Manggagawa ng Legenda, 2011)
Is failure to keep membership representing 20% of the appropriate bargaining unit throughout its
lifetime a ground for cancellation of union registration?
NO. Article 240 of the Labor Code (as renumbered) merely requires a 20% minimum membership during
the application for union registration, It does not mandate that a union must maintain the 20% minimum
membership requirement all throughout its existence. (Mariwasa Ceramics, Inc. v Secretary, Department
of Labor and Employment, 2009)

What is the rule on non-interference in the disposal of wages and allowable deductions?
No employer shall limit or interfere with the freedom of the employee to dispose his/her wages except:
except:
1. When the deductions are authorized by law including deductions tor Insurance premiums
advanced by the employer in behalf of the employee as well as union dues where the right to
check-off has been recognized by the employer or authorized in wrong by the employee
himself/herself; or
2. When the deductions are with written authorization of the employees for payment to a person
and the employer agrees to do so, provided that the latter does not receive any pecuniary benefit,
directly or indirectly from the transaction. (Non-Interference 'n the Disposal or Wages and
Allowable Deductions, Labor Advisory No. 011-14. 2014)

Can a company file a petition for cancellation of union registration of a labor union whose members are
managerial employees?
(DEL CASTILLO) Yes. the company may be considered a party-in-interest and file a petition for cancellation
of union registration where it appears that the union members are managerial employees, and hence,
absolutely prohibited from forming a union. The employer's sole ground for seeking cancellation of
respondent's certificate of registration that its are managerial employees and for this reason, its
registration is thus a patent nullity for being an absolute violation or Article 245 of the Labor Code which
declares that managerial employees are ineligible to join any labor organization — is. in a sense, an
accusation that respondent IS guilty of misrepresentation for registering under the claim that its members
are not managerial employees. (AIM v. AIM Faculty Association, 2017)

Can a member of a union, other than the bargaining agent, be made to pay agency tees in addition to
their respective union dues?
Yes. The bargaining agent which successfully negotiated the CBA with the employer is given the right to
collect a reasonable fee called "agency fee" from its non-members who are employees covered by the
bargaining unit being represented by the bargaining agent - in case they accept the benefits under the
CBA. It is called agency fees because by availing it the benefits of the CBA, they, in effect, recognize and
accept the bargaining union as their “agent" as well. (Labor Code, Art. 259, par. 4)

Does the non-compliance with the procedural requirements for conducting valid strike negate the claim
of good faith on the part of the striking union?
 Yes. The petitioners' disregard of the procedural requirements for conducting valid strike negated their
claim of good faith. For their claim to be upheld. It was not enough for them to believe that their employer
was guilty of ULP for they must also sufficiently show that the strike was undertaken with a modicum of
obeisance to the restrictions on their exercise of the restrictions to their exercise of the right to strike
prior to and during its execution as prescribed by the law. They did not establish their compliance with
the requirements specifically for the holding of the strike vote and the giving of the strike notice.
(Hongkong Shanghai Banking Corporation, et al vs. NLRC, 2016)

PD 1508 requires the submission of disputes before the Barangay Lupong Tagapamayapa prior to the
filing of cases with the courts or other government bodies. May yhis decree be used to defeat a labor
case filed directly with the Labor Arbiter?
Labor disputes are the exception to PD 1508. Under Art. 226 of the Labor Code, motions to dismiss before
the Labor Arbiter are only allowed on grounds of lack of jurisdiction, improper venue and bar by prior
judgment or prescription. Hence, failure to resort to barangay conciliation is not a valid ground to defeat
the labor case.

How is an appeal to the Court of Appeals perfected?

The only mode by which a labor case decided by any of the following labor authorities/tribunals may reach
the Court of Appeals is through a Rule 65 petition for certiorari
1. the DOLE Secretary;
2. the Commission (NLRC); and
3. the Director of the Bureau of Labor Relations (BLR) in cases decided by him in his appellate
jurisdiction (as distinguished from those he decides in his original jurisdiction which are
appealable to the DOLE Secretary)

The remedy of ordinary appeal to the Court pf Appeals is not available from their decisions, orders or
awards. The reason for this rule is that their decisions, orders or awards are final and executory and
therefore not appealable.

The company union filed a Notice of Strike with DOLE Claiming unfair tabor practices. Thereafter, the
Labor Secretary issued a Decision in favor of the union. The company filed a Motion for Reconsideration
while the union submitted a "Partial Appeal." The Labor Secretary declined to rule stating that
voluntary arbitrator's decisions, orders, resolutions, or awards shall not be the subject of motions for
reconsideration. The company 'filed a petition for certiorari under Rule 65 before the Court of Appeals.
Is the remedy proper?
(DEL CASTILLO) Yes, The impending strike in Philtranco, a public transportation company whose business
is imbued with public interest required that the secretary of Labor assume jurisdiction over the case,
which he in fact did. By referring the case to the Labor Secretary, the case fell within the coverage of
Article 263 of the Labor, Code, The Implementing Rules of Book v provide that the decision, order,
resolution or award of the the Voluntary Arbitration shall be final and executory after calendar days from
receipt of the copy of the award and it shall not be subject of a motion for reconsideration. As a rule, the
law requires a motion for reconsideration to enable the public respondent correct his mistakes, if any.
Considering that a decision of the Secretary of Labor is subject of judicial review only through a special
civil action or certiorari and as a rule, cannot be resorted to without the aggrieved party haying having
exhausted administrative remedies through a motion for reconsideration, the aggrieved party, must be
allowed to move for a reconsideration of the same so that he can bring a special civil action for certiorari
before the
Supreme Court. (Philtranco Service Enterprises Inc.; v. Philtranco Workers Union Association of Genuine
Labor Organizations, 2014)

Is there a need to issue a return-to-work order after the Issuance of an assumption of jurisdiction order?
No. The moment the Secretary of Labor assumes jurisdiction over a labor dispute in an industry
indispensable to national interest, such assumption shall have the effect of automatically enjoining the
intended or impending strike. It was not even necessary for the Secretary of Labor to issue another order
directing them to return to work. (Telefunken Semiconductors Union CA, 2000)

When does a Motion to Reduce Bond operate as a toll in the running of the period to perfect an appeal?
The filing of a motion to reduce appeal bond shall have the effect of stopping the period to perfect an
appeal and shall be entertained by the NLRC subject to the following conditions:
t. The motion to reduce bond shall be based on meritorious grounds; and
2. A reasonable amount (which the Court has determined to be 10%) in relation to the monetary award is
posted by the appellant. (McBumie v. Ganzon, 2013)

Can the employer invoke financial difficulties as a ground to reduce bond?

No. The right to appeal is neither a natural right nor a component of due process. and it must be exercised
in the manner prescribed by law. Financial difficulties may not be invoked as a valid ground to reduce
bond. At any rate. it was not substantiated by proof. (Turks Shawarma v. Pajaron, 2017)

What is multi-employer bargaining?

Multi-employer bargaining is collective bargaining that involves multiple employer enterprises. It can
happen only when legitimate labor unions who are incumbent exclusive bargaining agents and their
counterpart employers agree in writing to participate and negotiate in multi-employer bargaining. In one
case, three sister companies that had a common human resource department and constantly rotated their
workers were considered as one and the same entity for the purpose of determining the appropriate
bargaining unit. The Court ruled that the DOLE correctly applied the concept of multi-employer
bargaining. (Erson Ang Lee Doing Business as Super Lamination v. SMSLS-NAFLU-KMU, 2016)

What is the status of a CBA which was negotiated by the former bargaining agent during the pendency
of certification election proceedings, before it was defeated in the certification election?
A CBA entered into at a time when the petition for certification election had already been filed by a
challenger and was then pending resolution cannot be deemed permanent, precluding the
commencement of negotiations by another union with the management. This interim agreement must
be recognized and given effect on a temporary basis so as not to deprive the workers of the favorable
terms of the agreement. If as a result of the certification election, a union other than union which executed
the interim IS certified as the exclusive bargaining representative, such union may adopt the interim
collective bargaining agreement or negotiate with management for a new collective bargaining
agreement. (SONEOCO Workers Free Labor Union v. URC, 2016)

Does a "no-strike, no-lock-out clause" apply to ULP?

No. A no-strike. no-lock-our clause does not apply to a strike based on the employer's bad faith bargaining
as it is a ULP strike. Even if the CBA contains a broad definition of grievance. which includes all disputes
absent any express stipulation that even ULP shall be submitted to voluntary arbitration. The phrase all
disputes should be construed as limited to the areas of conflict traditionally within the jurisdiction of
Voluntary Arbitrators, ie., disputes relating to contract. Interpretation, contract-implementation or
interpretation or enforcement of company personnel policies. (Guagua Colleges v. Guagua National
Colleges Faculty Labor Union, 2016)

What is the purpose of labor legislation?

The purpose of labor legislation is to give life into the Constitutional mandate of providing protection to
labor (Section 3 Article Xlll, 1987 Constitution) by promoting full employment, ensuring equal work
opportunities regardless of sex, race or creed, regulating the relations between workers and employers
and assuring that the rights of workers to self-organization, collective bargaining, security of tenure, and
just and humane conditions of work are amply protected.

May a vice president of a corporation file a case for illegal dismissal against the corporation before the
Labor Arbiter?
Yes, if he is not designated as a corporate officer in the constitution and by-laws of the corporation. Under
Section 25 of the Corporation Code, there are three corporate officers, the president, treasurer and
secretary of the corporation and such other officers as may be designated as corporate officers in the
constitution and by — laws of the corporation. (Matling Industrial and Commercial Corporation v. Ricardo
Coros, G.R. No. 157802, October 13, 2010)

Article 18 of the Labor Code imposes a ban on direct hiring. Explain the reason for such ban and who
are exempted from the ban?
The reason behind Article 18 is that it is a form of protection for the Filipino workers, so that they will not
fall prey to unscrupulous and abusive foreign employers who might victimize them in the absence of
government regulation. However, there are exemptions to this ban on direct hiring of Filipino overseas
workers, to wit: 1) Members of the diplomatic corps; 2) International organizations; 3) Such other
employers as may be allowed by the Secretary of Labor; and 4) Name hire — a worker who is able to
secure an overseas employment opportunity without the assistance or participation of a recruitment
agency.

May an overseas worker refuse to remit his earnings to his dependents and deposit the same in the
country where he works to gain more interests? Explain.
No, an OFW cannot refuse to remit his earnings to his dependents. That is prohibited under the law which
considers mandatory for all Filipino workers abroad to remit a portion of their foreign exchange earnings
to their families, dependents, and/or beneficiaries in the country in accordance with rules and regulations
prescribed by the Secretary of Labor. (Article 22 of the Labor Code)

Who has jurisdiction over money claims of OFW's?

The Labor Arbiters of the National Labor Relations Commission (NLRC) shall have original and exclusive
jurisdiction to hear and decide, within ninety (90) calendar days after filing of the complaint, the claims
arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral, exemplary and other forms of
damages. (Section 10, R.A. No. 8042)

Distinguish license from authority.

A license is a document issued by the Department of Labor and Employment (DOLE) authorizing a person
or entity to operate a private fee-charging employment agency, while an authority is a document issued
by the DOLE authorizing a person or association to engage in recruitment and placement activities as a
private recruitment entity without charging directly or indirectly the employees or their employers.
(People v. Gasacao, G.R. No. 168445, November 11, 2005)

When is illegal recruitment deemed an economic sabotage?

Illegal recruitment when committed by a syndicate or in large scale shall be considered as offense
involving economic sabotage. Illegal recruitment is deemed committed in large scale if committed against
three or more persons individually or as a group. Illegal recruitment is deemed committed by a syndicate
when it is carried out by a group of three or more persons conspiring or confederating with one another.
(Section 6, R.A. No. 8042) (People v. Gasacao, C.R. No. 168445, November 11, 2005)

Rev. Adam, a non-resident Australian, seeks entry to the country to work as Dean of a Sectarian
University. You are with the Department of Labor and Employment (DOLE).
What permit, if any, can the DOLE issue so that Adam can assume the deanship? Discuss fully.
As a general rule, foreigners may not be employed in certain nationalized business, like educational
institutions. Moreover, the Anti-Dummy Law prohibits the employment of aliens in entities engaged in
business whose exercise or enjoyment is reserved only to Filipinos or to corporations or associations
whose capital should be at least 60% Filipino owned. However, under the constitution (Art. XIV, Sec. 4),
this will not apply to educational institutions, established by religious groups and mission boards.

Distinguish overtime pay from overnight pay.

Overtime pay means the additional compensation for work performed beyond 8 hours. Premium pay on
the other hand, means the additional compensation required by fry work performed within 8 hours on
non-working days, such as rest days and special days.

Are seamen entitled to overtime pay?

The correct criterion in determining whether or not sailors are entitled to pay is not. therefore, whether
they were on board and cannot leave ship beyond the regular eight working hours a day, but whether
they actually rendered service in excess of said number of hours. (Legahi v. NLRC, G.R. No. 122240,
November 18, 1999)

Jaybee is a rank and file employee who was asked by his boss to report for wort last August 21, 2018
which happened to be a Tuesday, Jaybee's rest day. That day was also the celebration of Eidul Adha
and Ninoy Aquino Day. How much would be Jaybee's gross pay for that day? Explain.
Jaybee's gross pay for that day is 250% of his daily income. The day was a regular holiday, applying Article
94, Labor Code, he is entitled to 200% income. It was also a special holiday (Ninoy Aquino Day) and falling
on his rest day. Therefore, he is also entitled to 50% premium pay (Article 93(c), Labor Code).

Is an employee who resigns from work entitled to service incentive pay?

Yes. The employee entitled to service incentive leave does not use or commute the same, he is entitled
upon his resignation or separation from work to the commutation of hts acoued service incentive leave.
An employee who has served for one year is entitled to it He may use it as leave days or he may collect
its monetary value. To limit the award to three years, as the solicitor general recommends, is to unduly
restrict such right (Auto Bus Transport Systems. Inc v. Bautista, G.R. No. 156367, May 16, 2005)

Distinguish supplements from facilities.

Supplements constitute extra remuneration or special privileges, or benefits given to or received by the
laborers over and above their ordinary earnings or wages. Facilities, on the other hand, are items of
expense necessary for the laborers and his family's existence and subsistence so that by express provision
of law, they form part of the wage and when furnished by the employer they are deductible from his
salary since if they are not so furnished, the laborer would spend and pay for them just the same.

May a company practice beneficial to the employees be legally withheld by the employer?
A company practice favorable to the employees had indeed been established and the payments made
pursuant thereto, ripened into benefits enjoyed by them. And any benefit and supplement being enjoyed
by the employees cannot be reduced, diminished, discontinued or eliminated by the employer, by virtue
of Art. 100 of the Labor Code, which prohibit the diminution by the employer of the employees' existing
benefits. (Sevilla Trading Co. v. Semana, G.R. No. 152456, April 28, 2004)

State the requisites for valid deductions from deposits or wages.

Where the employer is engaged in a trade, occupation or business where the practice of making
deductions or requiring deposits is recognized to ans•wer for the reimbursement of toss or damage to
tools, materials, or equipment supplied by the employer to the employee. the employer may make wage
deductions or require the employees to make deposits from which deductions shall be made. subject to
the following conditions: a) That the employee concerned is clearly shown to be responsible for the loss
or damage: b) That the employee is given reasonable opportunity to show cause why deduction should
not be made; c) That the amount of such deduction is fair and reasonable and shall not exceed the actual
loss or damage; and d) That the deduction from the wages of the employee does not exceed twenty
percent (20%) of the employee's wages in a week.
May the DOLE Regional Office exercise the visitorial and enforcement power even when the individual
claim exceeds P5000.00?
If the amount involved does not exceed P5,000.OO, the Regional Director undeniably has jurisdiction. But
even if the amount of the claim exceeds P5,OOO.OO, the Regional Director may still take cognizance of
the case if this is in accordance with his enforcement powers vested in him by Article 128 of the Labor
Code, as amended, that is to say, he may still direct his labor regulations officers or industrial safety
engineers to inspect the employer's premises and examine his records; and if the officers should find that
there have been violations of labor standards provisions, the Regional Director may, after due notice and
hearing, order compliance by the employer therewith and issue a writ of execution to the appropriate
authority for the enforcement thereof.

Josefina is an unwed mother with 3 children from different fathers In 2014. she became a member of
the Social Security System (SSS). That same year, she suffered a miscarriage of baby out of wedlock
from the father of her third child She wants to claim maternity benefits under the she entitled to claim?
Luisa is entitled to claim maternity benefit provided she has paid at least three monthly contributions
within the 12-month period immediately preceding the semester of her childbirth or miscarriage. She
must also give notification of her pregnancy through her employer if employed, or to the SSS if separated,
voluntary or self-employed member.

Arman was working as a medical representative of REX Pharmaceutical Company when he met and fell
in love with Baby, a marketing strategist for Alpha Drug Company, a competitor of REX. On several
occasions, the management of REX called Arman's attention to the stipulation in his employment
contract that requires him to disclose —any relationship by consanguinity or affinity with co-employees
or employees of competing companies in light of a possible conflict of interest. A seeks your advice on
the validity of the company policy. What would be your advice?
I would advise Arman that REX has a right to guard its trade secrets, manufacturing formulas, marketing
strategies and other confidential programs and information from competitors, especially so that it and
Alpha Drug Company are rival companies in the highly competitive pharmaceutical industry. The
prohibition against personal or marital relationships with employees of competitor companies upon REX's
employees is reasonable under the circumstances because. relationships of that nature might
compromise the interests of the company. In laying down the assailed company policy, REX only aims to
protect its interests against the possibility that a competitor company will gain access to its secrets and
procedures. (Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., G.R. No.
162994, September 17, 2004)

Discuss the provisions of law on the hours of a working child.

A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a
week provided that the work shall not be more than four (4) hours at any given day. A child fifteen (15)
years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day, and
in no case beyond forty (40) hours a week. No child below fifteen (15) years of age shall be allowed to
work between eight o'clock in the evening and six o'clock in the morning of the following day and no child
fifteen (15) years of age but below eighteen (18) years shall be allowed to work between ten o'clock in
the evening and six o'clock in the moming of the following day (Section 3,
R.A. No. 9231)

Who is a night worker?

A night worker is any employed person whose work requires performance of a substantial number of
hours of night work which exceeds a specified limit This limit shall be fixed by the Secretary of Labor after
consulting the workers' representatives/labor organizations and employers. This shall apply to all persons,
who shall be employed or permitted or suffered to work at night, except those employed in agriculture,
stock raising, fishing, maritime transport and inland navigation, during a period of not less than seven (7)
consecutive hours, including the interval from midnight to five o'clock in the morning, to be determined
by the Secretary of Labor and Employment. after consulting the workers' representatives/labor
organizations and employers. (Art. 154, Labor Code)

What is the purpose of privileged communication in the Labor Code?

Unformation and statements made at conciliation proceedings shall be treated as privileged
communication and shall not be used as evidence in the Commission. Conciliators and similar officials
shall not testify in any court or body regarding any matters taken up at conciliation proceedings conducted
by them. The reason for the privilege is to allow people to speak with candor to spouse or professional
counselor, even though it may hinder a criminal prosecution. Under the Article 233 of the Labor Code,
matters which the parties may have revealed or may have learned from each other during mediation and
conciliation proceedings shall not be used as evidence before the proceedings in the Labor Arbiter or the
National Labor Relations Commission, or any Court or tribunal.

Cyrus would like to register the union that he and his friends established to protect their interests
against their employer. Where would the register the union?
Applications for registration of independent labor unions, chartered locals, workers' associations shall be
filed with the Regional Office where the applicant principally operates. It shall be processed by the Labor
Relations Division at the Regional Office in accordance with Sections 2-A, 2-C. and 2-E of Rule Ill.
Applications for registration of federations, national unions or workers' associations operating in more
than one region shall be filed with the Bureau or the Regional Offices but shall be processed by the Bureau
in accordance with Sections 2-B and 2-D of Rule Ill. (Department Order No. 40-03, Rule Ill, Sections 1 and
2)

What is a yellow dog contract?

A yellow dog contract is an undertaking by the employees that as a condition for employment they will
not join, assist, form or even attempt to foster a union for the duration of their employment with the
employer. This is a void undertaking. In Article 259 (b), ULP committed when an employer requires as a
condition of employment that a person or an employee shall not join a labor organization or shall
withdraw from one to which he belongs. This is known as a yellow dog contract.

Explain the concept of run-away shop.

A run-away shop is an industrial plant moved by its owners from one location to another to escape union
labor regulations or state laws, but the term is also used to describe a plant removed to a new location in
order to discriminate against employees at the old plant because of their union activities. It is one wherein
the employer moves its business to another location or it temporarily closes its business for anti-union
purposes. Therefore, it is a clear act of unfair labor practice.

Differentiate "surface bargaining" from "blue-sky bargaining”.

Surface bargaining is defined as going through the motions of negotiating without any legal intent to reach
an agreement while blue-sky bargaining is the act of making exaggerated or unreasonable proposals.

What are the requirements for valid termination of employment for violation of union security clause?
The employer may validly dismiss an employee who violated the terms and conditions of the union
security clause, but the employer must see to it that: a) The agreement is expressed in a clear and
unequivocal way so as not to leave room for interpretation because it is a limitation to the exercise of the
right to self-organization. Any doubt must be resolved against the existence of a clised-shop agreement.
b) The agreement can only have prospective application. c) The right of every employee to due process
must be observed. Thus, dismissal from service of the employee is not automatic upon the request of the
union and d) The agreement cannot be applied to employees who are already members of the rival union
or to the employees who do not join unions pursuant to their religious beliefs.

Distinguish between a "closed shop" clause and a "maintenance of membership" clause.

Closed shop is an agreement whereby an employer binds himself to hire only members of the contracting
union who must continue to remain members of the union in good standing for the duration of the
agreement as a condition for continued employment. While maintenance of membership clause does not
require non-members to join the union but provides that those who do join must maintain their
membership for the duration of the union contract, under penalty of dismissal.

Explain the Contract Bar Rule.

It means that the existence of the CBA (a contract between the employer and the union) bars the filing of
a petition for certification election except during the freedom period No petition questioning the majority
status of the incumbent bargaining agent shall be entertained and no certification election shall be
conducted by the Department of Labor and Employment outside of the sixty-day period immediately
before the date of expiry of such five-year term of the Collective Bargaining Agreement.

May the substitute union repudiate the existing CBA?

The substitutionary doctrine provides that the employees cannot revoke the validly executed collective
bargaining contract with their employer by the simple expedient of changing their bargaining agent. And
it is in the light of this that the phrase “said new agent would have to respect said contract" must be
understood. It only means that the employees, through their new bargaining agent, cannot renege on
their collective bargaining contract, except of course to negotiate with management for the shortening
thereof.
Explain: a) The Globe Doctrine b) The Community of Interest Rule.
A) The Globe Doctrine was enunciated in the case In Re: Globe Machine and Stamping Company which
says that in determining the proper bargaining unit the express will or desire of the employees shall be
considered, they should be allowed to determine for themselves what union to join or form. The best way
to determine their preference is through a referendum.

b) The Community of Interest Rule simply states that the community or affinity of employees' interest,
such as substantial similarity of work and duties, or similarity of compensation and working conditions in
a unit is the determining factor whether or not these employees belong to one bargaining unit.

a) What issues or disputes may be the under the Labor Code? b) Can a dispute falling within the
exclusive jurisdiction of the Labor Arbiter be submitted to voluntary arbitration? Why or why not? c)
Can a dispute falling within the jurisdiction of a voluntary arbitrator be submitted to compulsory
arbitration? Why or why not?
a) The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive jurisdiction
to hear and decide all unresolved grievances arising from the interpretation or implementation of the
Collective Bargaining Agreement and those arising from the interpretation or enforcement of company
personnel policies which remain unresolved after seven calendar days. The Voluntary Arbitrator or panel
of Voluntary Arbitrators shall have exclusive and original jurisdiction, to hear and decide wage distortion
issues arising from the application of any wage orders in organized establishments, as well as unresolved
grievances arising from the interpretation and implementation of the productivity incentive programs
under RA 6971.
b) Yes, the Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties,
shall also hear and decide all other labor disputes including unfair labor practices and bargaining
deadlocks, provided that the agreement between the Union and the Company states in unequivocal
language that [the parties conform to the submission of these disputes to voluntary arbitration. This is
intended to speed up the resolution of these issues.
c) No, because the jurisdiction of the compulsory arbitrators are mandated by law and the
agreement of the parties are not allowed to expand the jurisdiction of the compulsory arbitrators like the
labor arbiters.

What is picketing?
Picketing is the marching to and fro at the employers premises, usually accompanied by the display of
placards and other signs making known the facts involved in a labor dispute. (llaw at Buklod ng
Manggagawa vs. NLRC, G.R. No. 91980, June 27, 1991)

Explain the concept of improved offer balloting.

In case of a strike, the regional branch of the Board shall, at its own initiative or upon the request of any
affected party, conduct a referendum by secret balloting on the improved offer of the employer on or
before the 30th day of strike. 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 thereupon re-admit
them upon the signing of the agreement. (Section 12, Rule XXII, Department Order No. 40-03)
Explain the concept of full backwaqes.
Under Article 294 of the Labor Code, an employee who is unjustly dismissed is entitled to reinstatement,
without loss of seniority rights and other privileges. and to the payment of his full backwages, inclusive of
allowances, and other benefits or their monetary equivalent, computed from the time his compensation
was withheld from him (which, as a rule, is from the time of his illegal dismissal) up to the time of his
actual reinstatement. If he is not reinstated, the full backwages shall be up to the finality of judgment.

Cite four (4) instances when an illegally dismissed employee may be awarded separation pay in lieu of
reinstatement.
The following are the instances when an illegally dismissed employee may be awarded separation pay in
lieu of reinstatement: 1. Old age (Espejo v. NLRC, G.R. No. 112678, March 29, 1996) 2. The position no
longer exists (Tanduay Distillery Labor Union, et al. v. NLRC and Tanduay Distillery, Inc., G.R. No. 73352,
December 6, 1994) 3. The establishment is taken over by another company (Callanta v. Camation
Philippines, Inc. and NLRC, G.R. No. 70615, October 28, 1986) 4. Insolvency of the employer (Electruck
Asia, Inc. v. Meris, et al.. G.R. No. 147031, July 27, 2004) 5. Closure of business (Philtread Tire & Rubber
Corporation v. Vicente, G.R. No. 142759, November 10. 2004) and 6. Strained Relations (Cabatulan v. Buat,
et al., G.R. No. 147142, February 14, 2005).