LABOR LAW – 3/18

I. Basic Principles
a. State Policy towards labor
i. Security of Tenure (Art. 294) – employee shall not be terminated except for just or authorized cause.
ii. Construction in favor of labor (Art. 4) – in case of doubt, in favor of laborer.

II. Existence of Employer-Employee Relationship; tests

a. Four-Fold Test (Jurisprudence)
1) Selection and Engagement;
2) Payment of Wages;
3) Power of Dismissal;
4) Power of Control.
 Right to control not only as to the result but also as to the means and method.
b. 2-Tiered Test (Francisco v. NLRC)
i. Control Test – putative employer’s power to control the employee with respect to the means and methods by which the work
is to be accomplished.
ii. Economic Reality Test – the proper standard of economic dependence is whether the worker is dependent on the alleged
employer for his continued employment in that lie of business

III. Termination of Employment

a. Termination by Employer
i. Requisites for validity
1. Substantive Due Process
a. Just Causes (Art. 297)
i. Serious Misconduct or Willful Disobedience
1. Serious Misconduct (Requisites)
1) Serious;
2) Related to the performance of duties;
3) Worker is unfit to continue working;
4) Wrongful intent
2. Insubordination or Willful Disobedience of Lawful order (Requisites)
1) Conduct must be willful or intentional
2) Valid company policy
i. Lawful and reasonable
ii. Sufficiently known to the employee
iii. Connected to employee’s duties
ii. Gross and Habitual Neglect of Duties (Requisites)
1. Negligence must be gross and/or habitual in character;
2. Work-related;
3. Render employee unfit to work
 Abandonment – form of neglect of duty.
1) Failed to report for work or absent without valid reason; and
2) Intent to sever employer-employee relationship by overt-act.
iii. Fraud or Willful Breach of Trust and Confidence
1. Fraud (Requisites)
1) Fraud – intentional deception ad used dishonest methods for personal gain
or to damage the employer
2) Work related which Render employee unfit to work.
2. Willful Breach of Trush and Confidence (Requisites)
1) Employee hold position of trust & confidence;
2) Act justifying the loss of trust and confidence;
3) Willful – done intentionally, knowingly and purposely, without justifiable
excuse; and
4) Work related which Render employee unfit to work.
 Position of Trust
i. Managerial positions
ii. Supervisory positions; and
iii. Fiduciary rank-and-file positions
iv. Commission of a Crime or Offense (Requisites)
1. Crime or offense was committed by employer;
2. Committed against:
1) Employer;
2) Immediate member of his employer’s family;
3) Representative.
v. Other Analogous Causes
1. Violation of company rules and regulations
2. Theft of property owned by co-employee;
3. Incompetence, inefficiency or ineptitude;
4. Failure to attain work quota;
5. Bona fide occupational qualification

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 6. Attitude problem is analogous to loss of trust and confidence.
b. Authorized Caused (Art. 298, 299)
i. Business Related (Art. 298)
1. Installation of labor-saving devices
2. Redundancy
3. Retrenchment
4. Closure/ cessation of business operations
1) Not due to serious business losses or financial reverses – separation pay.
2) Due to serious business losses or financial reverses – no separation pay.
5. Common Requisites
1) Good faith
2) Last resort – no other option after resorting to cost-cutting measures
3) 2 written notices served at least 1-month prior termination:
i. Employee
ii. Department of Labor and Employment
4) Fair and reasonable criteria
5) Separation Pay
i. Installation of Labor-saving devices & Redundancy – 1 month
pay or 1 month pay for every year of service whichever is higher.
Fraction of at least 6 months shall be considered a year.
ii. Closure NOT due to serious business losses and Retrenchment – 1
month pay or ½ month pay for ever year of service, which ever is
higher. Fraction of at least 6 months shall be considered a year.
6. Unique Requisites
1) Installation of Labor-Saving Devices
i. Purpose must be valid – to save on cost, enhance efficiency and
other economic reasons.
2) Redundancy (any of the following)
i. Servies of employees are in excess of what is reasonably
demanded;
ii. Position is superfluous;
iii. Duplication of work; or
iv. Cost-cutting measure and to streamline operations.
3) Retrenchment
i. Proof of actual losses or possible imminent losses.
ii. Health Related (Art. 299)
1. Disease as ground for termination
2. Substantive Requisites:
1) Employee is suffering from any disease;
2) Continued employment is:
i. Prohibited by law
ii. Prejudicial o his or co-employees’ health;
3) Medical Certificate issued by Competent Public Health Authority
i. Disease is incurable within a period of 6 months.
ii. Competent public health authority – government doctor whose
medical specialization pertains to the disease being suffered by
the employee.
2. Procedural Due Process
a. Just Cause - Twin Notice Rule
i. First Notice (Notice to Explain)
1. Notice to apprise the employee of the ground for which his dismissal is sought.
2. Containing:
1) Grounds for termination;
2) Directive that the employee is given the opportunity to explain
3) Detailed narration of the facts
i. General description will not suffice.
4) Company rule violated and/or grounds under Art. 297
ii. Hearing
1. Exception:
1) Abandonment (No hearing)
2) Disease (Art. 299)
3) Termination of probationary employee for failure to qualify
4) Termination of project, seasonal, casual or fixed-term.
5) Termination due to retirement
iii. Second Notice (Notice of Termination)
1. Issued after the employee has been given reasonable opportunity to answer and to be
heard.
2. Containing:
1) All circumstances involving the charge;
2) Grounds has been established to justify the severance of employment

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 b. Authorized Cause – Written Notice at least 1 month prior to termination to:
i. Worker; and
ii. Department of Labor and Employment
3. Interplay of Substantive and Procedural Due Process
a. Legal = if done with both Substantive and Procedural;
b. Legal = if done with Substantive but without Procedural;
i. Termination is legal but employee will be awarded Nominal Damages:
1. If based on Just Cause – P30,000. (Agabon v. NLRC)
2. If based on Authorized Cause – P50,000. (Jaka Food Processing Corporation v. Pacot)
c. Illegal = if done without Substantive but with Procedural;
d. Illegal = if done without both Substantive and Procedural.
ii. Preventive Suspension
1. Preventive suspension may be legally imposed upon an errant employee only when his alleged violation is subject of
an investigation and it involves a serious offense.
2. Purpose: prevent employee from causing harm or injury to the company as well as to his fellow employees.
3. Not tantamount to dismissal
4. Preventive suspension should only be for a maximum period of 30 days.
a. During the 30-day preventive suspension, worker is not entitled to wages.
i. Salaries should be paid for improperly-imposed preventive suspension.
b. Preventive Suspension lasting longer than 30 days amount to constructive dismissal.
c. Indefinite preventive suspension amounts to constructive dismissal.
d.
iii. Illegal Dismissal
1. Kinds
a. No just or authorized cause
b. Constructive dismissal – there is constructive dismissal when any or all of the following three exists:
i. Continued employment is impossible, unreasonable or unlikely;
ii. Demotion in rank and/or diminution in pay;
iii. Discrimination, insensibility or disdain by an employer becomes unbearable to the employee.
2. Reliefs from illegal dismissal
a. Reliefs under Labor Code (Art. 294)
i. Reinstatement without loss of seniority rights;
1. (Art. 229) – reinstatement of an employee whose dismissal is declared illegal by the
Labor Arbiter. This form of reinstatement is self-executory and must be implemented
even during the pendency of the appeal by the employer.
2. Maybe actual or in payroll.
ii. Full backwages;
1. If Reinstatement is ordered – backwages should be reckoned from the time the
compensation was withheld up to the time or reinstatement.
2. If Separation Pay is ordered – backwages should be computed from the time of illegal
dismissal until the finality of decision.
3. If employment is for a definite period – fixed term employee is entitled only to the
payment of his salaries corresponding to the unexpired portion.
4. If illegally dismissed employee has reached the optional retirement age of 60 years, his
backeages should only cover the time when he was illegally dismissed up to the time
when he reached 60 years of age.
5. If employee has reached 65 years of age or beyond, backwages should be computed
only up to said age.
1) Jurisprudence – 71 years old na nung natapos sa SC, backwages eh up to
compulsory retirement age of 65.
6. Reinstatement without Backwages
1) Dismissal is harsh penalty;
2) Employer acted in good faith;
3) No evidence of dismissal.
7. Reinstatement with limited Backwages
1) Employer’s acts were mitigated with good faith.
iii. Other monetary benefits.
b. Other reliefs
i. Separation Pay in lieu of Reinstatement
1. Separation pay should be awarded in the following situations:
1) Doctrine of Strained Relations – when continued relationship between the
employer and the employee is no longer viable due to the strained relations
and antagonism between them.
2) Reinstatement is impossible, impracticable, not feasible or unwarranted and
hardly in the best interest of the parties.
3) Employee prays for separation pray in his complaint and not reinstatement.
4) Reinstatement is moot and academic
i. Death of employee
ii. Insolvency of employer
iii. Establishment closed

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 2. Amount: at least 1 month salary or 1 month salary for every year of service, whichever
is higher, a fraction of at least 6 months is considered 1 whole year. Plus, allowances
received on a regular basis.
3. Separation pay, as a substitute remedy, is only proper for reinstatement but not for
backwages.
ii. Nominal Damages
1. Dismissal with just or authorized cause but no procedural due process
iii. Moral and Exemplary Damages and Attorney’s fees
iv. Legal Interest
iv. Money claims arising from employer-employee relationship
1. Labor Arbiter (Art. 224)
a. Money claims below P5,000 with claim for Reinstatement;
b. Money claims exceeding P5,000.
2. Regional Director (Art. 129)
a. Money claims below P5,000 without any claim for Reinstatement.
3. Secretary of Labor and Employment (Art. 128)
a. Enforcement of Labor Standards
v. Floating Status; when not deemed dismissed (Art. 301)
1. Floating status must not exceed 6 months; floating status beyond 6 months amounts to illegal/constructive dismissal.
2. Employee placed on floating status is not entitled to any salary during the 6-month period.
3. Complaint filed before the lapse of 6-month period of floating status is premature, the employee not having been
deemed constructively dismissed.
4. No procedural due process is required before an employee is placed under floating status since there is no
termination yet.
b. Termination by Employee (Art. 300)
i. With notice to the employer (Voluntary Resignation)
1. Employee may terminate employment relationship without just cause by serving notice to the employer.
2. Requisites:
a. Written notice (resignation letter);
b. Service of notice to employer at least 1 month in advance;
c. Written acceptance by the employer. (mandatory)
3. Failure to comply with the requirement of service of notice at least 1 month does not make his resignation void –
employee will only be liable for damages.
ii. Without notice to the employer (Involuntary Resignation)
1. Employee may terminate employment without serving notice for the following just causes:
a. Serious insult on the honor and person of the employee;
b. Inhuman and unbearable treatment;
c. Commission of a crime or offense;
d. Other analogous causes.
c. Retirement (Art. 302)
i. Coverage
1. Covered employees:
a. All employees in private sector;
b. Part-time employees;
c. Employees of service and other job contractors;
d. Kasambahay;
e. Underground mine workers;
f. Employees of government-owned and/or controlled corporations organized under Corporation Code.
2. Excluded
a. Employees of the government covered by Civil Service law
b. Employees of Retail, Service and Agricultural establishment regularly employing not more than 10
employees.
ii. Retirement Age
1. Under Article 302
a. Optional Retirement – 60 years old
b. Compulsory Retirement – 65 years old
2. Under Retirement Plan
a. Optional and compulsory retirement schemes come into play only in the absence of a retirement plan.
b. If there is retirement plan providing for an earlier or older age of retirement (but not beyond 65), the same
shall be controlling
3. Underground Mine Workers (R.A. 8558)
a. Optional – 50 years old
b. Compulsory – 60 years old
iii. Minimum years of service
1. 5 years is the minimum period.
2. Employee and employer can stipulate a different period but not higher than 5 years.
iv. Amount
1. ½ month salary for every year of service, a fraction of at least 6 months being considered as 1 year.
a. This will only applicable if:
i. No CBA or other applicable employment contract; or
ii. There is a CBA or employment contract but benefits are below the requirements of the law.

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IV. Labor-Only Contracting & Legitimate Subcontracting; elements
a. Elements (Art. 106)
i.
1. The contractor or subcontractor does not have substantial capital (P5,000,000); OR
2. The contractor or subcontractor does not have investments in the form of tools, equipment, machineries, supervision
and work premises;
AND
3. The contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly
related to the main business operation of the principal;
OR
ii. The contractor or subcontractor does not exercise the right to control over the performance of the work of the employees.
b. Trilateral Relationship
i. Service Contract – between principal and contractor; governed by Civil Code.
ii. Employment Contract – between contractor and its employers; governed by Labor Code.
c. Liabilities
i. The labor-only contractor will be treated as the agent of the principal.
ii. Principal will become the direct employer.
iii. Principal and labor-only contractor will be solidary treated as employer.
iv. Employees will become regular employees of the principal.

V. Rights of employees and of Labor Organization; Membership in Unions

a. Right of Labor Organization (Art. 251)
i. Article 251
1. Right to act as the representative for purposes of collective bargaining;
2. Right to be certified as the exclusive representative;
3. Right to be furnished of financial statements;
4. Right to own property;
5. Right to sue and be sued;
6. Right to undertake all other activities for the benefit of organization.
ii. Check off, Assessment and Agency fees
1. Check off – process whereby the employer, on agreement with the union certified as the Sole Exclusive Bargaining
Agent, or on prior authorization from its employees, deducts union dues or agency fees from the worker’s wages
and remits them to the union.
a. Check off – collection of union dues, special assessments and fees by the SEBA from its members
i. Requirement for validity: execution by the employees of individual written authorization.
b. Agency fees – collection of the SEBA from non-members by covered and included in the collective
bargaining unit who accept the benefits under CBA.
i. No requirement for validity since the law itself allows it.
2. Requisites for validity of Union Dues and Special Assessments
a. Authorization by a written resolution of the majority of all members at a general membership meeting
duly called for the purpose;
b. Secretary’s record of the minutes of meeting of said meeting; and
c. Individual Written Authorization for check-off duly signed by the employees concerned.
3. Limitation on the amount of Agency fees (Art. 259e)
a. Reasonable;
b. Equivalent to the dues and other fees paid by members of the SEBA.
iii. Collective Bargaining
1. Duty to bargain collectively (Arts. 261, 262, 263, 264 and 259)
a. Duty to bargain collectively means the performance of a mutual obligation to meet and convene in good
faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other terms
and conditions of employment.
b. Employer’s duty to bargain exists only with SEBA. Employer cannot bargain with individual workers or
with the minority union.
c. Two Situations: Duty to Bargain Collectively:
i. In the Absence of CBA:
1. First, in accordance with any agreement for a more expeditious manner of collective
bargaining;
2. Second, in its absence, in accordance with the provisions of Labor Code (Art. 261)
ii. When there exists a CBA:
1. When there is a CBA, the duty to bargain collectively shall mean that neither party
shall terminate nor modify such agreement during its lifetime.
2. However, party can serve a written notice to terminate or modify at least 60 days prior
to its expiration. (Freedom Period)
3. Freedom Period – the last 60 days of the 5-year lifetime of the CBA.
1) Parties are allowed to serve notice to terminate, alter or modify the existing
CBA.
2) Also, majority status of the SEBA may be challenged through Petition for
Certification election.

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 2. Collective Bargaining Agreement – refers to the negotiated contract between a duly certified SEBA and the employer
incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and
conditions of employment including mandatory provisions for grievance and arbitration machineries.
a. Mandatory provisions in a CBA
i. Terms and conditions of employment;
ii. Grievance and Arbitration Machineries;
iii. No strike, no lockout clause;
iv. Labor-Management Council;
v. Mandatory under Special Laws:
1. Drug-free workplace policy (R.A. 9165)
2. HIV/AIDS education and information program. (R.A. 8504)
b. Peaceful concerted activities
i. By Labor Organization
1. Strike (Art. 278)
a. Requisites of a valid strike:
i. First requisite: Exclusive Ground
1. Unfair labor practice of the employer
2. Collective bargaining deadlock
ii. Second requisite: Notice of Strike – filed with National Conciliation and Mediation Board –
Department of Labor and Employment.
iii. Third requisite: notice must be Served to the NCMB at least 24 hours prior to the taking of Strike
Vote.
iv. Fourth requisite: Strike Vote must be taken where a majority of the members of the union
obtained by secret ballot.
v. Fifth requisite: Strike Vote Report submitted to NCMB at least seven 7 days before date of strike.
vi. Sixth requisite: Cooling off period
1. 15 days – Unfair labor practice
2. 30 days – collective bargaining deadlock
3. Exception: Union Busting – no cooling off period
 Union Busting (Art. 278c) – dismissal of duly elected union officers and the
existence of the union is threatened.
vii. Seventh requisite: 7 day waiting period or Strike Ban
1. Reckoned after the submission of the strike vote report.
2. Should be fully observed in all case.
2. Picket (Art. 278) – peacefully marching to and fro before an establishment involved in a labor dispute accompanied
by carrying and display of signs, placards and banners.
a. Requisites of strike is not applicable.
c. Membership in Unions
i. Coverage
1. Article 253
a. All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable,
medical or educational institutions.
b. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those without any
definite employers may form labor organizations for their mutual aid and protection.
2. Article IX-B, Sec. 2(5), 1987 Constitution
a. The right to self-organization shall not be denied to government employees. (Government employees have
right to self-organization but does not have the right to strike)
3. Aliens with valid working permit
a. General Rule: prohibited in all forms of trade union activities. (Art. 284)
b. Exception: Aliens may exercise the right to self-organization and join or assist labor unions for purposes of
collective bargaining, provided the following requisites are fulfilled:
i. With valid working permits issued by the DOLE; and
ii. They are nationals of a country which grants the same or similar rights to Filipino workers.
ii. Employees not eligible (Art. 255)
1. Managerial employees – not eligible to join, assist or form any labor organization.
2. Supervisory employees - not be eligible for membership in the collective bargaining unit of the rank-and-file
employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of
their own.
3. Confidential employees – Doctrine of Necessary Implication
a. While Art. 255 of the Labor Code singles out managerial employees as ineligible to join, assist or form any
labor organization, under the doctrine of necessary implication, confidential employees are similarly
disqualified. This doctrine states that what is implied in a statute is as much a part thereof as that which is
expressed.
b. Requisites
i. The confidential relationship must exist between the employees and his supervisor; and
ii. The supervisor must handle the prescribed responsibilities relating to labor relations.
4. Members of the AFP, Policemen, Police Officers, Firemen and Jail Guards are expressly excluded by EO 180, Sec. 4
from the coverage of the EO 180 which provides guidelines for the exercise of the right to organize of government
employees.

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VI. Management Prerogative
a. Discipline - Right to discipline covers the following:
1. Right to discipling
2. Right to dismiss
3. Right to determine who to punish
4. Right to promulgate rules and regulations
5. Right to impose penalty; Proportionality rule
6. Right to choose which penalty to impose; and
7. Right to impose heavier penalty than what the company rules prescribe.
ii. Proportionality Rule – penalty to be imposed must be commensurate to the offense committed.
b. Transfer or employees
i. Kinds – transfer means a movement:
1. From one Position to another of equivalent rank, level, salary without a break in service; or
2. From one Office to another within the same business establishment.
ii. Transfer is valid if there is no demotion in rank or diminution of salary, benefits and other privileges. Transfer should not be
motivated by discrimination or made in bad faith.

iii. Transfer constituting constructive dismissal:

1. Transfer is unreasonable, inconvenient or prejudicial to the employee;
2. Involves demotion in rank or diminution of salaries or other benefits;
3. Clear act of discrimination, insensibility or disdain towards the employee to force him to forego his continued
employment;
iv. Refusal to transfer
1. An employee who refuses to be transferred, when such transfer is valid, is guilty of insubordination or willful
disobedience of a lawful order of an employer under Article 282 of the Labor Code.
2. Refusal to transfer due to parental obligations, additional expenses, inconvenience, hardship and anguish is not
valid. An employee could not validly refuse lawful orders to transfer based on these grounds.
3. Refusal to transfer to overseas assignment is valid.
4. Refusal to transfer consequent to promotion is valid.
5. Transfer to avoid conflict of interest is valid.
6. A transfer from one position to another occasioned by the abolition of the position is valid.
c. Productivity standards
i. The employer has the prerogative to prescribe the standards of productivity which the employees should comply. The
productivity standards may be used by the employer as:
1. Incentive - Employees who surpass the productivity standards or quota are given additional benefits.
2. Disciplinary - Employees may be sanctioned or dismissed for failure to meet quota.
d. Bonus
i. General Rule – Bonus cannot be forced upon the employer.
ii. Exception – when bonus is demandable and enforceable:
1. Ripened into company practice;
2. Granted as an additional compensation which the employer agreed to give without any condition, it is deemed part
of wage.
3. When considered as part of the compensation and therefore demandable and enforceable, the amount is usually
fixed.
 If the amount thereof is dependent upon the realization of profits, the bonus is not demandable and
enforceable.
e. Change of working hours
 Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate and control the time
when workers should report for work and perform their respective functions.
f. Bona fide occupational qualifications
i. Bona fide occupational qualifications – employer has the prerogative to impose certain qualifications.
ii. Meiorin Test (Cited in Yrasuegi v. Philippine Airlines)
1. Under this test, an employer can justify the standard by establishing that:
a. Standard is rationally connected to the performance of the job;
b. Adopted in an honest and good faith belief that it was necessary;
c. Standards was reasonably necessary to the work purpose.
2. Reasonable Business Necessity Rule – Bona fide occupational qualification is valid provided it reflects and inherent
quality reasonably necessary for satisfactory job performance.
g. Post-employment restrictions
i. Non-compete clause is valid
1. The employee and employer are free to stipulate in an employment contract prohibiting the employee within a
certain period from and after the termination of his employment, from:
a. Starting a similar business, profession or trade; or
b. Working in an entity engaged in similar business that might compete with the employer.
2. Requisites to be valid:
a. Reasonable limitations as to: Time, Place; and Trade.
h. Marriage between employees of competitor-employers
i. General Rule: Stipulation against marriage is unlawful. (Art. 134)
ii. Exception: Duncan Association of Detailman-PTGWO and Pedro Tecson v. Glaxo Wellcome Philippines,

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  The prohibition against personal or marital relationships with employees of competitor companies upon Glaxo’s
employees is reasonable under the circumstances because relationships of that nature might compromise the
interests of the company.
VII. Illegal Recruitment of Overseas Filipino Workers
a. Kinds
i. Illegal Recruitment in Overseas Employment
1. When any of the following acts are undertaken by a non-licensee or non-holder of authority:
a. Any act of canvassing, enlisting, contracting, utilizing, hiring or procuring workers, and includes referrals,
contract services, promising or advertising for local employment, whether for profit or not.
2. When any of the following acts which have been declared by law as prohibited are committed by any person,
whether or not a holder of a license or authority:
a. Charge or accept directly amount greater then prescribed or to make worker pay or acknowledge any
amount greater than actually received;
b. False notice or information in relation to recruitment or employment;
c. False notice, testimony, information or document for securing a license or authority;
d. Induce or attempt to induce a worker to quit his employment;
e. Influence or attempt to influence any person or entity not to employ any worker who has not applied
through his agency;
f. Engage in recruitment or placement in jobs harmful to public health or morality or to the dignity of the
Philippines;
g. Failure to submit reports on the status of employment, placement vacancies and other matters required by
SOLE.
h. Substitute or alter employment contracts approved by DOLE;
i. For an officer or agent of a recruitment or placement agency to become an officer or member of a travel
agency;
j. To withhold or deny travel documents;
k. Failure to actually deploy without valid reason;
l. Failure to reimburse expenses in cases where deployment does not actually take place without the
worker’s fault; and
m. Allow non-Filipino citizen to manage a licensed recruitment/manning agency.
3. Additional Prohibited acts under R.A. 10022
a. Granting a loan with an interest exceeding 8% per annum.
b. Imposition of a compulsory arrangement forcing worker to avail a loan only from designated institutions;
c. Refusal to condo or renegotiate a loan after the employment contract has been prematurely terminated;
d. Imposition of a compulsory arrangement whereby worker is required to undergo health examinations
only from specifically designated medical clinics;
e. Imposition of a compulsory arrangement whereby worker is required to undergo training, seminar or
schooling from specifically designated institutions;
f. For a suspended recruitment agency to engage in any kind of recruitment activity;
g. For recruitment agency to pass on the OFW or deduct from his salary payment of the cost of insurance
fees.
b. Types
i. Simple
1. Elements:
a. Offender has no valid license or authority;
b. Offender undertakes any recruitment and placement activity or any prohibited practices enumerated
under the law;
c. Number of recruiter/s and/or victim/s should not be more than 2 persons.
ii. Economic Sabotage
1. Syndicate – illegal recruitment committed by at least 3 recruiters.
2. Large scale – illegal recruitment committed against at least 3 persons.

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VIII. Remedies (Labor Standards violation)
General Table of Jurisdiction (Chan)

NLRC BLR DOLE VA NCMB

Supreme Court Rule 45 Supreme Court Rule 45 Supreme Court Rule 45 Supreme Court Rule 45
Court of Appeals Rule Court of Appeals Rule Court of Appeals Rule Court of Appeals Rule
65 65 65 43
Motion for Motion for Motion for Motion for
Reconsideration Reconsideration Reconsideration Reconsideration
Appeal to NLRC Appeal to BLR Appeal to DOLE Automatic Elevation to No appeal or certiorari
Secretary Voluntary Arbitrator (NCMB is not a quasi-
judicial body)
Labor Arbiter Med-Arbiter or DOLE DOLE Director or Grievance Machinery NCMB Conciliator-
Regional Director Med-Arbiter Mediator

a. Labor Arbiter
i. Jurisdiction of Labor Arbiter
1. Article 224
a. Unfair Labor Practice;
b. Termination Disputes;
c. Claims involving wages, rates of pay, hours of work and other terms and conditions of employment;
d. Damages arising from employee-employer relationship
e. Claims involving legality of strikes and lockouts
f. Claims arising from employee-employer relations involving an amount exceeding P5,000, whether or not
accompanied with a claim for reinstatement.
i. If not exceeding P5,000 and no claim for reinstatement – Regional Director
2. Article 124
a. Dispute involving wage distortion in unorganized establishment
i. If organized establishment – Voluntary Arbitrator
3. Article 233
a. Enforcement of compromise agreements
4. Violation of CBA
a. Grievance Machinery
i. Simple violation of CBA
b. Labor Arbiter
i. Gross violation of CBA
ii. Violation pertains to economic provision
ii. Jurisdiction is lodged with Regular Court (Regional Trial Court)
1. Claims for damages from breach of a non-compete clause and other post-employment prohibition;
2. Claims for payment of cash advances, car, appliance and other loans of employees;
3. Dismissal of corporate officers
b. National Labor Relations Commission
i. Exclusive Original Jurisdiction of the NLRC:
1. Petition for injunction in ordinary labor disputes;
2. Petition for injunction in strikes or lockouts;
3. Cases where labor disputes is likely to cause strike or lockout in an industry indispensable to national interest,
certified to it by SOLE for compulsory arbitration;
4. Petition for extraordinary remedies from orders or resolution of Labor Arbiters.
ii. Exclusive Appellate Jurisdiction
1. All cases decided by the Labor Arbiter;
2. Cases decided by DOLE Regional Directors involving money claims;
3. Contempt cases decided by Labor Arbiters.
c. Bureau of Labor Relations (Art. 232)
i. Exclusive Original Jurisdiction of BLR
1. Inter-union disputes
2. Intra-union disputes
3. Other related labor relations disputes
d. Dole Regional Directors
i. Exclusive Original Jurisdiction of Regional Directors
1. Visitorial (inspection) cases of any entity under recruitment and placement;
2. Visitorial cases involving unions;
3. Occupational safety and health violations;
4. Money claims not exceeding P5,000 and with no claim for reinstatement;
5. Union registration related cases;
6. CBA related cases
e. Secretary of Labor and Employment
i. Exclusive Original Jurisdiction of SOLE
1. Petition to assume jurisdiction over labor disputes affecting industries indispensable to the national interest;

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 2. Petition to certify national interest cases to the NLRC for compulsory arbitration;
3. Petition to suspend effects of termination;
a. Grounds:
i. The termination may cause serious labor dispute; and/or
ii. Termination is in implementation of a mass lay-off.
4. Administrative Intervention for Dispute Avoidance cases;
5. Voluntary Arbitration cases;
6. Contempt cases.
f. Grievance Machinery (Art. 273)
i. Grievable issue is any question raised by either the employer or the union regarding:
1. Interpretation or application of the CBA;
2. Interpretation or enforcement of company personnel policies;
3. Any claim by either party that the other is violating any provision in CBA or Company personnel policies.
g. Voluntary Arbitration
i. Exclusive Original Jurisdiction of VA
1. Unresolved grievances;
2. Violations of CBA which is not gross;
3. Other labor disputes upon agreement of the parties;
4. National interest cases;
5. Wage distortion involving organized establishment.
h. Prescription of Actions
i. Money Claims – 3 years (Art. 306)
ii. Illegal Dismissal cases – 4 years (Art. 1146 of the Civil Code)
iii. Unfair Labor Practice (criminal complaint) – 1 year from commission of acts (Art. 305, par. 2)
iv. Illegal Recruitment Cases
1. Simple illegal recruitment – 5 years
2. Economic Sabotage – 20 years.

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