NOTES ON LABOR LAWS

&
Social Legislations
By: Atty. SONNY G. MATULA
National President, Federation of Free Workers
Former Commissioner, Social Security Commission;
Former Executive Director V, Presidential Anti-Graft
Commission;
Law Lecturer, UPH-College of Law
UM-College of Law and MLQU-School of Law;
UNIVERSITY OF MANILA
NOVEMBER 3, 2015

Dreamers!
The dreamers
of the day
& the
dreamers of
The night

The dreamers of the

Night forget their
dreams after the woke
Up in the morning
The dreamers of the day
Pursue their dreams
with open eyes.

- Lawrence of Arabia

SOURCES OF LABOR LAW EXAMS

Labor Code
Constitution and Other Major Laws
Special Laws
Misc. Principles
Omnibus Implementing rules
12% 2%
9%
5%
72%

Table of Contents

Introduction
Laws & Jurisprudence
International Conventions
Labor Standards and Labor
Relations
Basic Constitutional Rights
Management Prerogative
Social Protection/SSS/ECC
Concluding Remarks

Law & Jurisprudence

Law
Constitution, legislative
acts, administrative
issuances

Jurisprudence
Decisions of the SC

ILO Convention Part of Law of the

land

In the recent case of The Heritage

Hotel Manila vs. National Union of
Hotel, Restaurant and Allied
Industries (G.R.178296, January
12,2011), the court treats ILO
Convention No 87 with high
respect as a binding law.

Sources of Labor Law

Primary;
Secondary; or
Auxiliary.

The primary sources of the

laws

(1) the Constitution

(2) legislation passed by
congress
(3) decisions of the Supreme
Court; (4) implementing rules and
regulations;
(5) decisions of the quasi-judicial
bodies

Secondary sources

(1) opinion of the Labor Secretary

or Justice Secretary; (2) reports,
debates, hearings conducted by
Congress; (3) labor law reviews;
(4) labor law and social legislation
textbooks; (5) opinion of legal
luminaries; and (6) foreign laws
and jurisprudence.

Auxiliary Sources

usages, procedures and

agreements that are common to
particular enterprise and specific
groups of workers (i.e. collective
bargaining agreements,
constitutions and by- laws of
various labor unions and
grievance settlements).

The Constitution is
Supreme

In the hierarchy of laws, the

Constitution is supreme. No branch or
office of the government may exercise
its powers in any manner inconsistent
with the Constitution, regardless of the
existence of any law that supports
such exercise. The Constitution cannot
be trumped by any other law. All laws
must be read in light of the
Constitution. Any law that is
inconsistent with it is a nullity.

A law that was already

declared unconstitutional
remains as such

Thus, when a law or a provision of law

is null because it is inconsistent with
the Constitution, the nullity cannot be
cured by reincorporation or
reenactment of the same or a similar
law or provision. A law or provision of
law that was already declared
unconstitutional remains as such
unless circumstances have so hanged
as to warrant a reverse conclusion.
(Sameer vs Cabiles, August 5, 2014).

A society that cares

Years ago, a young mother was making her way across the hills
of South Wales, carrying her tiny baby in her arms, when she
was overtaken by a blinding blizzard. She never reached her
destination and when the blizzard had subsided her body was
found by searchers beneath a mound of snow. But they
discovered that before her death, she had taken off all her
outer clothing and wrapped it about her baby. When they
unwrapped the child, to their great surprise and joy, they found
he was alive and well. She had mounded her body over his and
given her life for her child, proving the depths of her mother
love. Years later that child, David Lloyd George, grown to
manhood, became prime minister of Great Britain, and, without
doubt, one of Englands greatest statesman.
James S. Hewett, Illustrations Unlimited, Tyndale, 1972, p. 375.

Transformation or
incorporation

Under the 1987 Constitution,

international law can become part
of the sphere of domestic law
either by transformation or
incorporation. The
transformation method requires
that an international law be
transformed into a domestic law
through a constitutional
mechanism such as local

Incorporation

The incorporation method

applies when, by mere
constitutional declaration,
international law is deemed to
have the force of domestic law.
(Pharmaceutical and Health Care
Association of the Philippines v.
Duque III, 535 SCRA 265 [2007])

Pacta Sunt Servanda

The pacta sunt servanda rule is

the cornerstone of the law of
treaties.
Fulfillment of treaty obligations is
essential to stable international
relations and promote trust and
cooperation between
States.Deutsche Bank AG Manila
Branch vs. CIR ( G.R. No. 18850

Social Legislation
Social Legislation is broader than
Labor Laws. It also includes laws
that provide particular kinds of
protection or benefits to society
or segments thereof in furtherance
of social justice -- i.e. Social
Security law, health care law,
agrarian reform law,And the law on
migrant workers.

Bar Question
Is there a distinction between
labour legislation and social
Legislation? (1995)
Labour Laws limited in scope,
deals with rights and duties of
employees and employers
Social legislation more
encompassing

Labour
What is
Labour?

Physical or
mental exertion
Necessary to
Produce goods/
deliver services

Broader concept: Labor may include

the labor force who are employed or
those who are willing work but are
temporarily unemployed.

Social Justice

He who has less

in life should
have more in
law!

- Ramon
Magsaysay

Social Justice
Calalang vs
Williams,
70Phils 726

Humanization Equalization
of laws
S&E forces

Social justice is 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 elements of society thru the maintenance of
proper economic equilibrium in the interrelations of the
members of the community, constitutionally, thru the
adoption of measures legally justifiable, or extraconstitutionally, thru the exercise of the power of the
government, based on the time-honored principle of salus
populi est suprema lex.

The social justice

principles of labor
law outweigh or
render inapplicable
the civil law
doctrine of unjust
enrichment
- Justice Carpio Morales
in an en banc decision (Garcia &

Social justice does

allow oppression to
employer

After all, in the eyes of all fair minded

men (and women), injustice to the
more affluent and fortunate sectors of
society cannot be less condemnable
and reprehensible, and should be
avoided as much as injustice to labor
and the poor, SC said in Federation of
Free Farmers vs. Court of Appeals (107
SCRA 352, 362-3, September 10, 1981)

Labor Standards
Set out
the minimum

Terms,
Conditions &
benefits

Employer
Must
Provide or
Comply with

to which workers are entitled

as a matter of right.

Minimum Standards Workers

are entitled to as a matter of
right:

Minimum wage
Holiday pay
Overtime pay
Night shift
differential
Service charges
Service incentive
leave
Maternity leave

Paternity leave
Parental leave for
solo parent
Leave for victims
against women
and children
13th month pay
Separation pay
Retirement pay

Social security and welfare

lesgislation

Social

security (RA

8282)
Employees
Compensation
Philhealth
Pag-ibig

Labor Relations
define
Status,
rights &
duties

As well as
Institutional
mechanism

That govern
Individual &
Collective
interactions

between employers, employees and

their representatives.

Labor Code
What is
Labor Code?
PD 442, as
amended

Codification into
One volume of 60
pieces of law
8 hr law,
min wage law,
termination law

Labor Code

Preliminary Title
Book 1: Preemployment
Book 2: Human
Resource Devt
Book 3:
Conditions of
Employment

Book 4: Health
Safety and Social
Benefits
Book 5: Labor
Relations
Book 6: Post
Employment
Book 7:
Transitory and
Final Provisions

ILO Core Labor

Standards

the prohibition of slavery

and compulsory labor
(C29; C105),
the elimination of
discrimination
(C100;C111),
the prohibition of
exploitative child labor
(C182),

ILO CONVENTION # 102

(1952)

THE SOCIAL SECURITY (MINIMUM

STANDARDS)
Identifies nine (kinds) of benefits
Medical care - Employment injury
Sickness
- old age
Unemployment- family benefits
Maternity
- survivors benefits
invalidity

Basic
Constitutional
Rights
Article XIII
Section 3
1987 Constition

1.Right to organize;
2.Right to CB & Nego;
3.Peaceful concerted
activities, strike;

4.Security of tenure;
5.Humane condition
of work; 6.living wage;
& 7.participate in
Decision making

Management
Prerogative

In SAMEER OVERSEAS PLACEMENT AGENCY

vs. JOY C. CABILES, August 5, 2014), Justice Leonen said:

Employers have the prerogative

to impose productivity and quality
standards at work. They may also
impose reasonable rules to
ensure that the employees
comply with these
standards.Failure to comply may
be a just cause for their dismissal.

Management
Prerogative
Established
company practice

CBA

Laws

Everything concerning the business

Management
Prerogative
The

authority to hire is
likewise covered and
protected by its
management prerogative.
(J. Peralta, St. Paul College of Qc vs
Spouses Ancheta, September 7, 2011,
GR No 169905)

Right to regulate all

aspects of
employment

(1) hiring
(2) the freedom
to prescribe work
assignments
(3) working
methods, process
to be followed
(4) regulation
regarding
transfer of

(5) supervision of
their work
(6) lay-off and
discipline, and
(7) dismissal and
recall of workers
(J. Peralta, St. Paul
College of Qc vs
Spouses Ancheta,
September 7, 2011, GR
No 169905)

Management Prerogatives emanate

from an owners property right
Managerial

Prerogatives are considered

natural rights that allow employers to
manage their business/employees

Article 428 of the Civil Code provides that:

the owner has the right to enjoy and
dispose of a thing, without other limitations
other than those established by law.

Jurisdiction

Authority to hear and decide

Labor Arbiter of NLRC (Article 217,
PD 442, as amended)
Voluntary Arbitrator (Arts. 261 &
262)
Secretary of Labor (Arts 128, 129 &
263g)
PRC/DECS/CSC

LABOR ARBITER

a. Original and exclusive

jurisdiction to hear and decide the
following cases involving all
workers, whether agricultural or
non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;

Labor Arbiter

3. If accompanied with a claim

for reinstatement, those cases
that workers may file involving
wages, rates of pay, hours of
work and other terms and
conditions of employment;
4. Claims for actual, moral,
exemplary and other forms of
damages arising from employer-

Labor Arbiter

5. Cases arising from any

violation of Article 264 of the
Labor Code, as amended,
including questions involving the
legality of strikes and lockouts;

Labor Arbiter

6. Except claims for employees

compensation not included in the next
succeeding paragraph, social security,
medicare, and maternity benefits, all other
claims arising from employer-employee
relations, including those of persons in
domestic or household service, involving an
amount exceeding Five Thousand Pesos
(P5,000.00), whether or not accompanied
with a claim for reinstatement;

Labor Arbiter

7. Wage distortion disputes in

unorganized establishments not
voluntarily settled by the parties
pursuant to Republic Act No.
6727;
8. Enforcement of compromise
agreements when there is noncompliance by any of the parties
pursuant to Article 227 of the

Labor Arbiter

9. Money claims arising out of employeremployee 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 as provided by Section 10, Republic
Act No. 8042, as amended by Republic Act
No. 10022; and

10. Other cases as may be provided by law.

Commission Proper

1. Cases decided by the Labor Arbiter;

2. Cases decided by the Regional Directors or
hearing officers on small money claims;
3. Cases of national interest certified to by the
Secretary of Labor;
4. Petitions for injunctions or temporary restraining
order under Article 218 (e) of the Labor Code, as
amended; and
5. Petition to annul or modify the order or resolution
(including those issued during execution proceedings)
of the Labor Arbiter.

Jurisdiction of Voluntary Arbitrators

or Panel of Voluntary Arbitrators
(Art. 261-262, Labor Code)

Exclusive and original jurisdiction

to hear and decide all grievances:
Arising from the implementation
or interpretation of the collective
bargaining agreements;
Arising from the interpretation or
enforcement of company
personnel policies;

Voluntary Arbitrator

Wage distortion issues arising from the application of

any wage orders in organized establishments (Par. 4,
Art. 124, RA 6727);
Where the application of any prescribed wage
increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions or wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortion shall be
resolved through the grievance procedure under their
collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such
dispute shall be decided by the voluntary arbitrators
within ten (10) calendar days from the time said

Voluntary Arbitrator

4. Unresolved grievances arising from the interpretation

and implementation of the productivity incentive programs
under RA 6971.
Sec. 9, RA 6971

Sec. 9. Disputes and Grievances Whenever disputes,

grievances, or other matters arise from the interpretation or
implementation of the productivity incentive program, the labormanagement committee shall meet to resolve the dispute, and may
seek the assistance of the National Conciliation and Mediation Board
of the Department of Labor and Employment for such purpose. Any
dispute which remains unresolved within twenty (20) days from the
time of its submission to the labor-management committee shall be
submitted for voluntary arbitration in line with the pertinent
provisions of the Labor Code as amended.
The Productivity incentives program shall include the name(s) if the
voluntary arbitrator or panel of voluntary arbitrators previously
chosen and agreed upon by the labor-management committee.

Voluntary Arbitrator

Concurrent Jurisdiction

Any other labor dispute upon agreement of the party may

be submitted to a voluntary arbitrator or panel of voluntary

arbitrators.
Before or at any stage of the compulsory arbitration process,
the parties may opt to submit to their dispute to voluntary
arbitration.
The NLRC and its Regional Branches as well as the Regional
Directors of the DOLE are prohibited from entertaining
disputes, grievances or matters under the exclusive and
original jurisdiction of the voluntary arbitrator or panel of
voluntary arbitrators. They shall immediately dispose and
refer the same to the appropriate grievance machinery or
voluntary arbitration provided in the collective bargaining

Powers of the Voluntary Arbitrators

or Panel of Voluntary Arbitrators
(Sec. 4, Rule XI, Book V)

To hold hearings;
To receive evidence;
To take whatever action is necessary to
resolve the issue/s subject of the dispute;
To conciliate or mediate to aid the parties in
reaching a voluntary settlement of the
dispute;
To issue a writ of execution to enforce final
decisions, orders, resolutions or awards.

Labor Arbiter on
Termination

The labor arbiter, the appellate court, and the NLRC differed in their
rulings on the matter of jurisdiction.The labor arbiter and the
appellate court agreed withAysonand the unions position.The
labor arbiter assumed jurisdiction and emphasized that when the
union met withLandtexon8 July 1996,Aysonwas no longer an
employee becauseLandtexterminated him effective30 June 1996.
The manifestation of the unions desire to refer the matter to a
third party in accordance with law and the CBA does not deviate
from the fact thatAysonwas already dismissed.On the other hand,
the NLRC sustainedLandtexand WilliamGosposition.The NLRC
asserted that the determination of whetherAysonsdismissal
constitutes a disciplinary action within the scope of the CBA calls
for an interpretation of the CBA.When the union called for a
meeting withLandtex, the union effectively initiated the grievance
procedure. Thus,Aysonscase should have been subjected to
voluntary arbitration.
The SC agreed withAysonand the union and affirm the rulings of
the labor arbiter and the appellate court. (Landtex vs Ayson and
FFW, August 9, 2007)

Termination disputes fall under

the jurisdiction of the labor
arbiter
Article 261 of the Labor Code provides that 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. On the other
hand, a reading of Article 217 in conjunction with Article 262
shows that termination disputes fall under the jurisdiction of
the labor arbiter unless the union and the company agree
that termination disputes should be submitted to voluntary
arbitration. Such agreement should be clear and
unequivocal. Existing law is an intrinsic part of a valid
contract without need for the parties to expressly refer to it.
Thus, the original and exclusive jurisdiction of the labor
arbiter over unfair labor practices, termination disputes, and
claims for damages cannot be arrogated into the powers of
voluntary arbitrators in the absence of an express

Labor Arbiter and Regular

Court

Illegal termination of officers or

other employee of a private
corporation is under LA (Article
217,PD 442, as amended)
Corporate officers is under RTC
(PD 902-A, amended by RA 8799)

Corporate Officers

Section 25 of PD 907-A
enumerates them:
President;
Secretary;
Treasurer
Such other officers in the by laws

Corporate Officers

Conformably with Section 25, a

position must be expressly
mentioned in the By-laws in order
to be considered as corporate
office. Thus, the creation of an
office pursuant to or under a ByLaw enabling provision is not
enough to make a position a
corporate office.xxx (Matling
Industrial & Commercial Corp vs Coros [633

Damages on EE-ER

It is settled under this jurisdiction

that employers claim for
damages arising from employeremployer relationship is outside
the jurisdiction of the regular
court (Article 217 of the Labor
Code as amended; Banez vs Hon.
Valdevilla, G.R. No. 128024, May
9, 2000)

School may adopt its

own standards

As long as the standards fixed are

reasonable and not arbitrary,
courts are not at liberty to set
them aside. Schools cannot be
required to adopt standards which
barely satisfy criteria set for
government recognition. (Mercado,
et al. v. AMA Computer College-Paraaque
City, Inc., G.R. No. 183572, April 13, 2010,
618 SCRA 218, 233).

Not to renew contract

This is a right of the school that

is mandated by law and
jurisprudence. It is the
prerogative of the school to set
high standards of efficiency for its
teachers since quality education
is a mandate of the Constitution.
(J. Peralta, St. Paul College of Qc vs Spouses
Ancheta, September 7, 2011, GR No 169905)

Closure of business is a
management prerogative
Dangan vs NLRC, 127 SCRA 706:
Abolition of a department or section of an
employers establishment for economic
reasons is a managerial prerogative.
Coca Cola vs. NLRC, 194 SCRA 592:
Closure or cessation of an establishment not
due to serious business losses includes
the complete cessation of operations of
only part of companys activities.

Teaching is not only

governed by Labor
Code

In the consideration of employment on

probationary status of teaching
personnel, such is not governed purely
by the Labor Code (Mercado, et al. v. AMA
Computer College-Paraaque City, Inc., G.R. No. 83572, April
13, 2010, 618 SCRA 218, 233)
1

The LC is supplemented with respect

to the period of probation by special
rules found in the Manual of
Regulations for Private Schools. (Magis
Young Achievers' Learning Center v. Manalo, G.R. No.

Written Contract

Before the start of the term, the

institution shall execute a written
contract with its teaching and nonteaching personnel
The contract does not affect tenure of
permanent or part-time employees
Binds them to finish the entire school
term and comply all requirements (Sec
116, Manual, 2008.

Provisionary under the

LC

Art 287. Probationary

employment Probationary
employment shall not exceed six
(6) months from the employee
started working, unless covered
by an apprenticeship agreement
stipulating a longer period. xxx.
An employee who is allowed to
work after a probationary period
shall be considered a regular

PROBATIONARY EMPLOYEE

an employees failure to perform the duties

and responsibilities
which have been clearly made known to him
constitutes a justifiable basis for a
probationary employees non-regularization.
(Abbott Laboratories, Phils., et al vs. Pearlie
Ann F. Alcar [April 22, 2014])

Probationary
Employment under the
Manual (2008)

Section 117. Probationary Period.

xxx

Probationary employment for

academic teaching personnel
shall not be more than six (6)
semesters or nine (9) trimesters
of satisfactory service, as the
case maybe. (Manual, 2008)

Part-time Teachers

Academic personnel who do not

possess minimum qualification
under Sections 35 and 36 of the
Manual are considered part-time
employees
PTs cannot avail of the status &
privileges of a probationary
employee
PTs cannot acquire permanent

Permanent Status

Full-time academic personnel

Satisfactorily qualified
probationary employment
Possess minimum qualifications
Rehired immediately after
probationary employment
(Section 118 of the Manual, 2008)

The state regulates relations

between workers &
employers
SEC 3 (par. 4) , ARTICLE XIII OF THE CONST:
The state shall regulate the relations
between workers and employers,

recognizing the right of labor to its

just share in the fruits of production and

the right of enterprises to reasonable

returns on investments, and to expansion
and growth.

Employment is a property
right
Callanta vs Carnation Phils, 145 SCRA 268:
It is a principle well recognized under
this jurisdiction, that ones employment,
profession, trade or calling is a property
right, and the wrongful interference
therewith is an actionable wrong. The
right is considered to be property right
within the protection of the constitutional
guarantee of due process of law.

Is an OFW has security

of tenure?

Employees are not stripped of

their security of tenure when they
move to work in a different
jurisdiction. With respect to the
rights of overseas Filipino
workers, we follow the principle of
lex loci contractus. (Sameer
Placement Agency vs Joy Cabiles,
August 5, 2015)

Just causes for termination

Article

288 (old 282):

1. Serious misconduct or willful disobedience of lawful

orders
2. Gross and habitual neglect of duties
3. Fraud or willfull breach of trust
4. Commission of a crime
5. Other analogies cases
1. Abandonment
2. Defiance of the AJO of Labor Secretary

Authorized causes for

termination
Article

289 (old 283):

1. Introduction of labor saving device

2. Redundancy
3. Retrenchment
4. Closure
Article 290 (old 284: disease
Article 291 (old 285): Retirement

Gross misconduct
In the case of Molato vs. NLRC, the Supreme
Court ruled:
For misconduct or improper behavior to be a
just cause for dismissal the same must be
related to the performance of the
employees duties and must show that he
has become unfit to continue working for
the employer.

Grossly immoral
Conduct

A teachers act of entering into said

second marriage constitutes grossly
immoral conduct. No doubt, such
actuation demonstratesa lack of that
degree of morality required of him as a
member of the teaching profession.
When he contracted his second
marriage despite the subsistence of
the first, he made a mockery of
marriage, a sacred institution
demanding respect and dignity. (Rene

Is falling in love to a
student an immoral
conduct?

If the two fell in love, despite disparity

in their age and academic levels, this
only lends substance to the truism that
the heart has reasons that of its own
which reason does not know
But, definitely, yielding to this gentle
and universal emotion is not to be so
casually equated with immorality.
(Evelyn Chua-Qua vs Hon Jacobo
Claver, G.R. 49549[August 30,1990)

Marriage between persons despite

differences of ages of 14 years is
not defiance of contemporary norms

The deviation of the

circumstances of their marriage
from the social pattern cannot be
considered as defiance of the
contemporary social norms.
(Evelyn Chua-Qua vs Hon. Jacobo
Clave, G.R. 49549 [August 30,
1990]).

Insubordination
Isabelo vs. NLRC:
In order for insubordination to be a
valid or just cause for dismissal, the
employees assailed conduct must have
been willful or intentional, the
willingness being characterized by a
wrongful and perverse attitude, and the
order violated must have been reasonable,
lawful, made known to the employee and
must pertain to the duties which he had
been engaged to discharge.

Willful dis-obedience

The conduct must be willful or

intentional, willfulness being
characterized by wrongful and
perverse mental attitude (Nissan
Motors vs Angelo, 657 SCRA 520,
529-30)

Refusal to comply due

to pending criminal
complaint

Employer failed to prove that

Montallanas non compliance to
apologize was willfull or
intentional, the dismissal is
illegal (Montallana vs La
Consolacion College Manila, Dec
8, 2014).
Non-compliance to apologize
invoking self-incrimination due

Refusal to submit to drug

test
(2012)

Employees refusal to submit

themselves to drug test is a just
cause for their dismissal
serious misconduct or willful
disobedience by the employee of
the lawful orders of his employer
or representative in connection
with his work (KAKAMPI vs
Kingspoint Express,G.R. 194813,

KAKAMPI vs Kingspoint Express

(April 25, 2012): Define,
willfull disobedience

(1) the employee's assailed conduct

must have been willful, that is,
characterized by a wrongful and
perverse attitude; and
(2) the order violated must have been
reasonable, lawful, made known to the
employee, and must pertain to the
duties which he had been engaged to
discharge. Both elements are present
in this case.

Two (2) Tests in Drug cases

Section 36 of R.A. No. 9165

provides that drug tests shall be
performed only by authorized
drug testing centers.
Moreover, Section 36 also
prescribes that drug testing shall
consist of both
the screening test and
the confirmatory test.
Automotive Engine Rebuilders

Serious business losses

North Davao Mining Dev. Corp. vs
NLRC, 254 SCRA 721:
When the closure is due to
serious business losses, Art 283
does not obligate payment of
separation pay.
One cannot squeeze blood
from a dry stone. Nor water out
of parched land.

Jurisdiction on EE-ER
Relationship
Rep. of Phils.
Represented by
SSS & SSC vs
Asiapro Coop
(Nov 23, 2007):

Q: Question of EE-ER
exclusive with NLRC?

Ans: No. SSC not NLRC

resolves EE-ER
on SS coverage.

e question of the existence of an employee-employer relationship

ot the exclusive jurisdiction of the NLRC. Article 217 (a) (6) of th
or Code exempts from its jurisdiction claims for Social Security, x
Hence, the Social Security Commission has primary jurisdiction o
estion of an existence employee-employer for purposes of deter
ning the coverage of SSS (Sec 5 of SS Law of 1987, R.A. 8282)

No EE-ER stipulation
binding?
Q: Is the no EE-ER
stipulation binding
To parties in contract?

Rep. of Phils.
Represented by
SSS & SSC vs
Asiapro Coop Ans: No. provision must
be struck down as
(Nov 23, 2007):
it circumvents the law
e Service contract in question must be struck down fo
ng contrary to law and public policy since it is apparen
being used by the respondent cooperative merely to
circumvent the compulsory Coverage of its employees
who are also its owners-members,
by the social security law.

Other than the NLRC, can

the Secretary of Labor
Determine EE/ER
Relationship?

Yes! No limitation in the law was

placed upon the power of the DOLE to
determine the existence of an
employer-employee relationship. No
procedure was laid down where the
DOLE would only make a preliminary
finding, that the power was
primarily held by the NLRC (Bombo
Radyo vs Sec of Labor, Regional
Dirctor and Juezan, March 6, 2012)

Bombo Radyo case

Bombo Radyo case recognizes the

validity of the Department of
Labor and Employments (DOLEs)
plenary power under Article
128(b) of the Labor Code, as
amended by Republic Act No.
7730, including its power to
determine the existence of
employer-employee relationship
in the exercise of its Article

DOLE has power to determine

employer-employee
relationship

The DOLE must have the power to

determine whether or not an
employer-employee relationship
exists, and from there to decide
whether or not to issue
compliance orders in accordance
with Art. 128(b) of the Labor
Code, as amended by RA 7730

SOCIAL PROTECTION

LABOR PROTECTION

SOCIAL SECURITY

Centesimus Annus
(1991)

Social Teaching calls for the adoption

of adequate social protection for all
workers (C.A. # 10)
i.e. Unemployment insurance, pension,
health insurance & compensation in
case of accident
as measure to restore dignity of work
and to ensure fair wage levels for the
maintenance of worker and his family
Workers movement has big role in the
adoption of these social protection.

WHAT IS SOCIAL SECURITY?

Social
Security
is
the
protection that society gives
to its members against the
economic
and
social
distresses
caused
by
contingencies
such
as
sickness,
child
birth,

Early forms of social

Support
Societieshave devised ways
to support people who cannot
support themselves
particularly older people,
persons with disabilities,
widows & orphans
Concept of solidarity &
protection

Origin of Social
Protection

The Code of Hammurabi (18th century BC) is

one of the oldest documents to discuss social
protection for widows and orphans
Poor laws of England in the 16th Century
Almshouses for old and sickly
Workhouses for unemployed
Trade unions developed their social insurance
and mutual aid societies in England, Sweden
& Germany in the 18th century
Bismarck created the 1st broad system of
social insurance in Germany in the 19th
century

Social Security obscure

origin

SS can be traced to a bill entitled

Economic and Security Act
introduced during the economic
crisis in 1930s
Passed into law by US Congress
The Social Security Act (1935)
In the Phiippines, Magsaysay
signed into law in 1954 and SSS
started operations in 1957.

FEATURES OF SSS (R.A. 8282)

As a Social Insurance Program:

Coverage is compulsory
Contributions are shared between the
employer and employee
Funds are pooled to pay for the members
benefits
Surplus funds are put on reserve and are
invested
Amount of benefits depends on
contributions paid
There are inter-generation cross-

SSS COVERAGE
Mandatory Coverage
Employees

Workers from the private sector;

not over 60 years of age
Household helpers;
Seafarers deployed by local
manning agencies in foreign
ships
Public utility drivers

Who is an employee?
Under boundary system, a
jeepney driver is an employee of
the jeepney owner. Though the
driver is not paid a fixed wage,
and he remits boundary and
shoulders gas expenses, these
factors themselves do not create
lessor-lessee relationship. Owner
still exercise control and
supervision over the driver.(Jardin

How control exercise

over the driver?

The owner sees to it that his

driver negotiates or follows the
government prescribed route in
accordance with the franchise
given by the LTFRB
In lease, the lessor loses
complete control or possession
over the chattel
In boundary system, the owner

Working scholars not

employees

Students who work for the school

or university in exchange for the
privilege to study free of charge,
provided they are given real
opportunity, including such
facilities as may be reasonably,
necessary to finish their chosen
course under the arrangement
(Sec 14, Rule III, Rules
Implementing the Labor Code).

In civil suit, school is liable

for the act of working
scholars as if it is an
employer
In must be noted that for
purposes of imposing liability
for tortious act, the working
scholar is considered an
employee and the school as
employer (Filamer Christian
Institute v. IAC, 212 SCRA
637)

OFW is entitled to
security of tenure

Overseas workers regardless of

their classifications are entitled to
security of tenure, at least for the
period agreed upon in their
contracts. This means that they
cannot be dismissed before the
end of their contract terms
without due process. If they were
illegally dismissed, the workers
right to security of tenure is

Regular or DomWorker

Linda was employed by Sectarian University

(SU) to cook for the members of areligious
order who teach and live inside the campus.
While performing her assigned task, Linda
accidentally burned herself. Because of the
extent of her injuries, she went on medical
leave. Meanwhile, SU engaged a replacement
cook. Linda filed a complaint for illegal
dismissal,but her employer SU contended
that Linda was not a regular employee but a
domestic househelp. Decide. (4%) (Bar 2014)

Suggested Answer

I will decide in favor of Linda. The

contention of her employer
Sectarian University (SU) is not
correct. Linda is a regular
employee and not a domestic
worker. She is employed by the
SU as a cook in the campus and
not engaged in domestic work
or performing work in or for a
household (R.A. 10361 [c] and

Suggested Answer

In APEX Mining Co., Inc. vs. NLRC

(196 SCRA 25), the Supreme
Court held that a laundrywoman
in staff houses of a company or
within the premises of the
business of the employer, not
actually serving the family of the
employer, is a REGULAR
EMPLOYEE. She is not included in
the definition of domestic

Requisites to validly
dismiss an employee
San Miguel Corp. vs. NLRC:
The requisites to validly dismiss
an employee are:
(1) the dismissal must be
for a cause provided for under
the Labor Code; and
(2) the observance of
notice and hearing prior to
employees dismissal.

2 Notice Rule
Cabalen Management Co., Inc. vs. Jesus Quiambao,
March 14, 2007:
An employee sought to be dismissed must
be served two written notices before the
termination of his employment.
The First notice must apprise him of
the particular acts or ommissions upon which
his dismissal is grounded;
the second, to inform him of the
employers decision to terminate his

Is a verbal appraisal of the charges

against the employee a breach of
the procedural due process? (King of
Kings Transport vs Mamac [June 29,
2007])

A verbal appraisal of the charges

against an employee does not
comply with the first notice
requirement.
In Pepsi Cola Bottling Co. v. NLRC,
(210 SCRA 277) the Court held
that consultations or conferences
are not a substitute for the actual
observance of notice and hearing.

Workers written
explanation does not cure
lack of notice to explain

Also, in Loadstar Shipping Co.,

Inc. v. Mesano, (408 SCRA 478)
the Court, sanctioning the
employer for disregarding the due
process requirements, held that
the employees written
explanation did not excuse the
fact that there was a complete
absence of the first notice.

What is a reasonable
Opportunity?

Reasonable opportunity under the Omnibus

Rules means every kind of assistance that
management must accord to the employees
to enable them to prepare adequately for
their defense.[15]
This should be construed as a period of at
least five (5) calendar days from receipt of
the notice to give the employees an
opportunity to study the accusation against
them, consult a union official or lawyer,
gather data and evidence, and decide on the
defenses they will raise against the
complaint. (King of Kings Transport vs Mamac [June 29,

Reasonable Opportunity?

Detailed narration of facts -- in order to

enable the employees to intelligently prepare
their explanation and defenses, the notice
should contain a detailed narration of the
facts and circumstances that will serve as
basis for the charge against the employees. A
general description of the charge will not
suffice.
Specific company rules -- the notice should
specifically mention which company rules, if
any, are violated and/or which among the
grounds under Art. 282 is being charged
against the employees. (King of Kings vs

The evidence must be clear and

not ambivalent
Maneja vs. NLRC:
"Petitioner has been charged with a very serious offense -dishonesty. This can irreparably wreck her life as an
employee as no employer will take to its bosom a
dishonest employee. Dismissal is the supreme
penalty that can be meted to an employee and its
imposition cannot be justified where evidence is
ambivalent.[2] It must, therefore, be based on a
clear and not on an ambiguous or ambivalent
ground. Any ambiguity or ambivalence on the ground
relied upon by an employer in terminating the services of
an employee denies the latter his full right to contest its
legality. Fairness cannot countenance such
ambiguity or ambivalence

Reliefs for illegally dismissed

employee
-As a penalty to an erring employer, the illegally dismissed
employee is entitled to reinstatement and to full
backwages without any diminution
Bustamante et al vs. NLRC:
"On 21 March 1989, Republic Act No. 6715 took effect,
amending the Labor Code. Article 279 thereof states in
part:
"Article 279. Security of Tenure. An employee who is
unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of
allowances, and to his other benefits or their monetary
equivalent, computed from the time his compensation is
withheld from him up to the time of his actual

The employer has the option to reinstate an

employee who has been declared illegally dismissed,
either physically or in the payroll. The employer
must have to notify the employee of its option
Pioneer Texturizing Corp et al vs. NLRC:
Furthermore, the rule is that all doubts in the
interpretation and implementation of labor
laws should be resolved in favor of labor. In
ruling that an order or award for reinstatement
does not require a writ of execution the Court is
simply adhering and giving meaning to this
rule. Henceforth, we rule that an award or
order for reinstatement is self-executory.

Pioneer Texturizing Corp et al vs. NLRC:

After receipt of the decision or resolution
ordering the employees reinstatement, the
employer has the right to choose whether to readmit the employee to work under the same
terms and conditions prevailing prior to his
dismissal or to reinstate the employee in the
payroll. In either instance, the employer
has to inform the employee of his choice.
The notification is based on practical
considerations for without notice, the
employee has no way of knowing if he has
to report for work or not. (Underscoring and
emphasis supplied).

If the decision declaring an employee to

have been illegally dismissed, is
reversed on appeal, the said employee is
entitled to backwages pending such an
appeal
Noahs Ark Sugar Refinery and/ or A. Louyoco vs, NLRC:
The right to immediate reinstatement, pending appeal to the
NLRC, stems from the constitutional right of a laborer to
security of tenure.xxx.
Assuming that on appeal the finding of illegal dismissal is reversed
and ruled to be valid, the laborer is still entitled to the
compensation he shall have received during the
pendency of the appeal before the NLRC and/or the
Court. The reason is simple: the laborer rendered services
during that period. The same conclusion holds for payroll
reinstatement. In this instance, the employer unilaterally opted
to pay the laborer even if the latter will not perform services for

When is the period for the

computation of backwages and
separation pay supposed to end?
Surima vs, NLRC:
Second, as to the time frame for the computation of
backwages, the provision mentions the period from
withholding of compensation up to actual reinstatement,
which period can be established with facility. However,
there may be an instance when reinstatement is
considered no longer feasible, necessitating award of
separation pay instead. The question now arises: When
is the period for the computation of backwages and
separation pay supposed to end? Gaco vs. NLRC[1]
addressed the question squarely by holding that in such
circumstance, the computation shall be up to the time
of finality of this Courts decision. xxx. (Underscoring

Every union member, unless expressly

excluded themselves, are deemed included
in the complaint filed by their union,
hence, there can be res judicata
Aldovino et al vs. NLRC:
xxx. In Davao Free Workers Front vs. Court of Industrial
Relations, this Court ruled 18 [No. L-29356, 31 October
1976, 60 SCRA 408, pp. 426-427.]
The detail that the number and names of the striking
members of petitioner union were not specified in the
decision nor in the complaint is of no consequence xxx. It is
the function precisely of a labor union such as petitioner to
carry the representation of its members particularly against
employers unfair labor practice against it and its members
and to file an action for their benefit and behalf without
joining them and to avoid the cumbersome procedure of
joining each and every member as a separate party.

Union represents its

members

The right of URFA as a legitimate labor union to represent its

members is expressly guaranteed under Art. 242 of the
Labor Code. 19 [Art. 242. Rights of legitimate labor
organizations.- A legitimate labor organization shall have the
right:

(a) To act as the representative of its members for the

purpose of collective bargaining; xxx

(e) To sue and be sued in its registered name; xxx] This

right, however, does not deprive its individual members
of their concomitant right to file a case in their own
names, nor of their right to withdraw from any case filed
by the union in their behalf. More importantly, the
individual member may seasonably exercise his option to
withdraw from a case filed by his union if he does not
want to be bound thereby

Members who have no

manifes-tation to withdraw,
bound by the decision

In Philippine Land-Sea-Air Labor

Union (PLASLU), Inc. vs. CIR, 20
[93 Phil. 747 (1953)] this court
ruled that only those members of
the petitioning union who did not
signify their intention to withdraw
from the case before its trial and
judgment on the merits are bound
by the outcome of the case.

Quitclaims and releases are not effective

bar to employees claims arising from
unfair labor practice

Lopez Sugar Corp vs. Federation of Free

Workers (FFW, 189 SCRA 179):
Quit claims executed by employee are general
frowned upon as contrary to public policy and
ineffective to bar claims for full measures of
workers legal right.

Quitclaims and releases are not effective

bar to employees claims arising from
unfair labor practice
Golden Farms vs. Ferrer Calleja, 175 SCRA 74:
It has been held that quitclaims are not binding if:
(a)contrary to law, morals and public policy;
(b)where voluntariness is put into issue;
(c ) where it is established that there is an
unwritten agreement entitling the employee to other
renumeration or benefits, for which claim of the
employee may be given due course.

Strained Relationship
must be anchored on hard facts
Sagum vs. Court of Appeals (May 26, 2005):
The SC directed the erring employer to create
an equivalent position and immediately
reinstate petitioner without loss of seniority
rights. The Court ruled that: the existence of
strained relationships is a factual finding and
should be initially raised, argued and proven
before the labor arbiter. Petitioner is correct in
stating that the finding of strained relations
does not have any basis on the record. Indeed
nowhere was the issue raised in private
respondents pleadings before the Labor Arbiter
and the NLRC. It was raised for the first time in

Strained Relationship
must be anchored on hard facts

Sagum vs. Court of Appeals (May 26, 2005):

As a rule, no strained relations should
arise from a valid and legal act of
asserting ones right xxx.

Two Kinds of Regular employees

Rowell Industrial Corp (RIC) vs. CA and Taripe

(March 07, 2007 ):
Thus, there are two kinds of regular employees,
namely:
(1) those who are engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer; and
(2) those who have rendered at least one
year of service, whether continuous or broken,

Continued re-hiring not

basis for regularization of
OFW

The exigencies of their work

necessitate that they be employed on
contractual basis (Gu-muro vs vs
Adorable, G.R. No. 160952, Aug 20,
2004);

For mutual interest of both seafarer and the

employer;
Seafarer cannot stay for long and an
indefinite period of time at sea. (Ravago vs
Esso Eastern Marine, Ltd (G.R. 158324, Mar
14, 2005)

Violation of statutory due

process nominal damages is due
to worker
Genuino vs NLRC, Citibank (Dec 4, 2007):
In Agabon, we explained:

The violation of the petitioners right to

statutory due process by the private respondent
warrants the payment of indemnity in the form of
nominal damages. The amount of such damages is
addressed to the sound discretion of the court,
taking into account the relevant circumstances.
Considering the prevailing circumstances in the
case at bar, we deem it proper to fix it at
P30,000.00. We believe this form of damages
would serve to deter employers from future
violations of the statutory due process rights of

Nominal damages

Abbott

Laboratories, Phils., Cecille A. Terrible, Edwin D. Feist, Maria Olivia T.

Yabut-Misa, Teresita C. Bernardo, and Allan G. Alamazar Vs. Pearlie Ann
F. Alcar

The rule is that when a valid cause

for
termination
exists,
the
procedural infirmity attending the
termination
only
warrants
the
payment of nominal damages. This
was the principle laid down in the
landmark cases of Agabon v. NLRC
and
Jaka
Food
Processing
Corporation v. Pacot

Whether worker may collect their wages during

the period between the Labor Arbiters order of
reinstatement pending appeal and the NLRC
decision overturning that of the Labor Arbiter ?

In Garcia & Dumago vs PAL (G.R. 164856, Jan 20, 2009,

En Banc), the SC reaffirms the prevailing principle that

even if the order of reinstatement of the Labor Arbiter

is reversed on appeal, it is obligatory on the part of
the employer to reinstate and pay the wages of the
dismissed employee during the period of appeal until
reversal by the higher court.[21] It settles the view that
the Labor Arbiter's order of reinstatement is
immediately executory and the employer has to either
re-admit them to work under the same terms and
conditions prevailing prior to their dismissal, or to
reinstate them in the payroll, and that failing to
exercise the options in the alternative, employer must
pay the employees salaries.[22]

[21]

Gross violation of CBA

It must be remembered that a CBA is entered

into in order to foster stability and mutual
cooperation between labor and capital.

An employer should not be allowed to

rescind unilaterally its CBA with the duly
certified bargaining agent it had previously
contracted with, and decide to bargain anew
with a different group if there is no legitimate
reason for doing so and without first following
the proper procedure. (Employees Union
of Bayer Philippines FFW vs Bayer Phil
162943, Dec 6, 2010)

RTW immediately executory

Univ. of San Augustine Empl. Union-FFW vs CA & USA
(March 28, 2006):
Article 263(g) of the Labor Code, supra, is explicit that if a strike
has already taken place at the time of assumption of jurisdiction
or certification, all striking or locked out employees shall
immediately return to work and the employer shall immediately
resume operations and readmit all workers under the same
terms and conditions prevailing before the strike or lock-out. xxx
On the other hand, the tenor of these ponencias[1][18] indicates
an almost instantaneous or automatic compliance for a striker to
return to work once an AJO has been duly served.
[1][18] Union of Filipro Employees vs. Nestle Philippines, Inc., G.R. Nos. 8871012, December 19, 1990, 192 SCRA 396; St. Scholasticas College vs. Torres, G.R.
No. 100158, June 29, 1992, 210 SCRA 565; Telefunken Semiconductors
Employees Union-FFW vs. Court of Appeals, G.R. Nos. 143013-14, December 18,
2000, 348 SCRA 565; Grand Boulevard Hotel vs. Genuine Labor Organization of

RTW of AJO: Urgent

matter & Executory in
Character

Instructive is the ruling of this Court in

Philippine Airlines Employees Association v.
Philippine Airlines, Inc.[26]:
The very nature of a return-to-work order
issued in a certified case lends itself to no
other construction. The certification attests
to the urgency of the matter, affecting as it
does an industry indispensable to the
national interest. The order is issued in the
exercise of the courts compulsory power of
arbitration, and therefore must be obeyed
until set aside. x x x.
[26]

148 Phil. 386, 392 (1971).

ULP under NLRC

Indeed, in Silva v. National Labor Relations

Commission (G.R. No. 110226, June 19, 1997,
274 SCRA 159). The SC explained the
correlations of Article 248 (1) and Article 261
of the Labor Code to mean that for a ULP
case to be cognizable by the Labor Arbiter,
and for the NLRC to exercise appellate
jurisdiction thereon, the allegations in the
complaint must show prima facie the
concurrence of two things, namely:
(1) gross violation of the CBA; and
(2) the violation pertains to the economic
provisions of the CBA

EUBP-FFW vs Bayer
Phils
(December 6, 2010)

When an employer proceeds to

negotiate with a splinter union
despite the existence of its valid
CBA with the duly certified and
exclusive bargaining agent, the
former indubitably abandons its
recognition of the latter and
terminates the entire CBA.

Neither Party Shall

Terminate CBA during its
lifetime

Where there is a collective

bargaining agreement, the
duty to bargain collectively
shall also mean that neither
party shall terminate or
modify such agreement
during its lifetime (Article 253
of the Labor Code)

Rules on Prescription

Tamayo vs Baterbonia, 165 SCRA 94:

1. Offenses penalized under the Labor Code,
and the rules and regulations shall prescribed in
3 years (Art 296);
2. All ULP shall be filed within one (1)
year, otherwise forever barred (Art 296);
and
3. All monetary claims shall be filed within
3 years (Art 297).

How about Illegal dismissal?

The SC said in Callanta vs Carnation
Phils, 145 SCRA 268, inter alia:
IIlegal dismissal case does not fall as an
offense under the Labor Code, but under
Art. 1146 of the Civil Code as an injury
to the rights of the plaintiff which under
the Codes statute of limitations
prescribed in four (4) years.

SSS COVERAGE
Mandatory Coverage:
Self-Employed Individuals

Professionals licensed under the

Professional Regulatory Commission
(doctors, lawyers, accountants, etc.)
Single Proprietors and Business
Owners
Farmers and Fisher folk
Professionals in the entertainment
and sports fields who are not under
an employer-employee contract

SSS COVERAGE
Mandatory Coverage:

Employers
Local and foreign
companies doing
business in the
Philippines

Voluntary Coverage:
Employees separated from Employment
Former private sector employees or former selfemployed members
Overseas Filipino Workers (OFWs)
A former employee or self-employed member who
has an existing SSS number is no longer required to
register again as an OFW-member
Non-Working Spouses
The legal spouse of a currently employed and
actively paying SSS member
Employees of International Organizations and foreign
embassies in the Philippines
Filipinos hired by foreign institutions may be
voluntarily covered under an administrative
agreement

EFFECTIVITY OF
COVERAGE
Employer
On the first day of operation with at least
one (1) employee
Employee

Self-employed

On the first day of employment.

-

Upon first payment of contribution

OFW

Upon first payment of contribution

NWS

Upon first payment of contribution

Separated Member On the month the member resumed

payment of contribution

Social Security PROGRAM

Social Security Benefits
Sickness It is daily cash allowance granted to a person
who is unable to work due to sickness or injury.
Maternity It is a daily cash allowance granted to a
female member who is unable to work due to
childbirth or miscarriage .
Disability It is a cash benefit granted to a member
who suffered partial or total permanent disability.

Retirement It is a cash benefit paid to a member

who can no longer work due to old age.
Death It is a cash benefit paid to the beneficiaries
of a deceased member, either as monthly pension
or lump sum amount.
Funeral Grant It is a cash grant given to whoever
pays for the burial expenses of a deceased member
or pensioner.

Do we have
unemployment
insurance?

Yes, but only in the public sector

(GSIS)
None, in the private sector (SSS)

UNEMPLOYMENT BENEFIT IN GSIS

LAW

The Unemployment benefit is paid when

a permanent government employee who
has paid the required 12 months
integrated contributions under RA 8291
is involuntarily separated from the
service as a result of the abolition of his
office or position usually resulting from
reorganization.

How much is the unemployment benefit?

Unemployment benefit are in the form of monthly cash
payments equivalent to 50% of the average monthly
compensation (AMC). The duration of the benefit depends on
the length of service and ranges from 2 months to a maximum
of 6 months. Unemployment benefits shall be paid in
accordance with the following schedule
Benefit Duration
Contributions Made
1 year but less than 3 years

2 months

3 or more years, but less than 6 years

3 months

6 or more years, but less than 9 years

4 months

9 or more years, but less than 11 years 5 months

11 or more years, but less than 15 years 6 months

Bar Question (2014)

Don Luis, a widower, lived alone in a house
with a large garden. One day, he noticed that
the plants in his garden needed trimming. He
remembered that Lando, a 17-year old outof-school youth, had contacted him in church
the other day looking for work. He contacted
Lando who immediately attended to Don
Luiss garden and finished the job in three
days. (4%)
Is there an employer-employee relationship
between Don Luis and Lando?
Does Don Luis need to register Lando with
the Social Security System(SSS)

XIII.

Suggested Answer

No. There is no employee-employer

relation between Don Luis and Lando as
the work of Lando in the garden is only
for three days. Though Lando performed
domestic work, the same is one
occasionally or sporadically and not on
an occupational basis. Such is excluded
in domestic work as employment
(Section 4 [c] of R.A. 10361)
No. As there is no employee-employer
relationship between them as shown

EC PROGRAM
Employees Compensation Benefits for work-related
sickness or injury resulting in disability or death
Income cash benefit for:

Temporary total disability or sickness an

income cash benefit equivalent to 90% of the average
daily salary credit not to exceed P200, payable for a
period not to exceed 120 days (for sickness) and 240
days (for disability).

Permanent total disability this benefit is a

monthly pension for life plus 10% for each of the five
dependent children starting from the youngest.

Permanent partial disability

Death and funeral grant

Survivorship Pension
Dycaico vs SSS et.al, November 30, 2005:
The SSS denied the petitioners application for survivors
pension on the sole ground that she was not the legal
spouse of Bonifacio as of the date of his retirement, hence,
she could not be considered as his primary beneficiary
under Section 12 of Rep. Act No. 8282. Is SSS correct?
The SC holds that the proviso as of the date of retirement
in section 12-B(d) of Rep. Act No. 8282, which qualifies the
term primary beneficiaries, is unconstitutional for it violates
the due process and equal protection clauses of the
Constitution.

SS pension vested right

Dycaico vs SSS et.al, November 30, 2005:
A pension plan when employee participation is
mandatory, the prevailing view is that employees
have contractual or vested rights in the pension
where the pension is part of the terms of
employment. Thus, it was ruled that a vested right
to benefits that is protected by due process clause
and retirees enjoy a protected property interest
whenever they acquire a right to immediate
payment under existing law.

REPUBLIC ACT NO. 7699

PORTABILITY LAW
All creditable services or periods of contributions made
continuously or in the aggregate of a worker under either the
GSIS or SSS shall be added up and considered for purposes of
eligibility and computation of benefits.
All services rendered or contributions paid by a member
personally and those that were paid by the employers to either
SSS or GSIS shall be considered in the computation of benefits
which may be claimed from SSS or GSIS. However, the amount
of benefits to be paid by one System shall be in proportion to the
services rendered / periods of contributions made to that
System.

Bar Question (2014)

XIV
Luisito has been working with Lima Land for
20 years. Wanting to work in the public
sector, Luisito applied with and was offered a
job at Livecor. Before accepting the offer, he
wanted to consult you whether the payments
that he and Lima Land had made to the
Social Security System (SSS) can be
transferred or credited to the Government
Service Insurance System (GSIS). What would
you advice? (4%)

Suggested Anwer

Section 3 of Republic Act No. 7699 reads:

SEC 3.Xxx, a covered worker who transfer(s)
employment from one sector to another or is
employed in both sectors, shall have his
creditable services or contributions in both
systems credited to his service or
contribution record in each of the Systems
and shall be totalized for purposes of oldage, disability, survivorship, and other
benefits in case the covered employee does
not qualify for such benefits in either or both
Systems without totalization xxx

Suggested Answer

His 20 years of service which is

equivalent to 240 months of
contributions is more than
enough to qualify him to retire
under the SSS Law. The SSS Law
only requires a minimum of 120
months of contribution(Sec 12-B ,
RA 8282).

Is a biological mom entitled

to EC benefits after
adoption?

The ECC denied petitioners claim on

the ground that she is no longer the
deceaseds legitimate parent, as
required by the implementing rules. As
held by the ECC, the adoption decree
severed the relation between John and
petitioner, effectively divesting her of
the status of a legitimate parent, and,
consequently, that of being a
secondary beneficiary.

Is a biological mom entitled

to EC benefits after
adoption?

Yes! the term parents in the phrase

dependent parents in Article 167 (j)
of the Labor Code is used and ought to
be taken in its general sense and
cannot be unduly limited to legitimate
parents as what the ECC did. The
phrase dependent parents should,
therefore, include all parents, whether
legitimate or illegitimate and whether
by nature or by adoption. (Bernadina
Bartolome vs SSS & Scanmar Maritime

Retrenchment or
Redundancy (Bar
2014)

IX. Luisa Court is a popular chain of motels. It

employs over 30 Chambermaids who, among
others, help clean and maintain the rooms.
These chambermaids are part of the union
rank-and-file employees which has an
existing collective bargaining agreement
(CBA) with the company. While the CBA was
in force, Luisa Court decided to abolish the
position of chambermaids and outsource the
cleaning of the rooms to Malinis Janitorial
Services, a bona fide independent contractor
which has invested in substantial equipment
and sufficient manpower

Redundancy or
retrenchment (Bar
2014)

The chambermaids filed a case of

illegal dismissal against Luisa
Court. In response, the company
argued that the decision to
outsource resulted from the new
managements Labor Law
directive to streamline operations
and save on costs. If you were the
Labor Arbiter assigned to the
case, how would you decide?

Suggested Answer

I will declare the termination of

Chambermaids illegal. Under Article
248 [c]of the Labor Code, it is
unlawful for the employer to contract
out service or functions being
performed by union member when
such will interfere with restrain and
coerce employees in the exercise of
their right to self-organization (see
Eugene Arabit and FFW vs Jardine
Pacific Finance, April 21, 2014).

Redundancy/Retrenchme
nt

Eugene S. Arabit and Federation of

Free Workers. Vs. Jardine Pacific
Finance, Inc. G.R. No. 188190. April 21,
2014

The SC has already ruled before

that retrenchment and
redundancy are two different
concepts; they are not
synonymous; thus, they should

Redundancy

Redundancy exists where the services of an

employee are in excess of what is reasonably
demanded by the actual requirements of the
enterprise. A position is redundant where it is
superfluous, and superfluity of a position or
positions may be the outcome of a number of
factors, such as over hiring of workers,
decreased volume of business, or dropping
of a particular product line or service
activity previously manufactured or
undertaken by the enterprise

Retrenchment

Retrenchment, on the other hand, is used

interchangeably with the term lay-off. It is
the termination of employment initiated by
the employer through no fault of the
employees and without prejudice to the
latter, resorted to by management during
periods of business recession, industrial
depression, or seasonal fluctuations, or
during lulls occasioned by lack of orders,
shortage of materials, conversion of the plant
for a new production program or the
introduction of new methods or more efficient
machinery, or of automation.

Muchas Gracias!

Thank you!