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The Basic Policy of the Labor Code (social

economic goals)
1. Protection to labor;
2. Promote full employment;
3. Ensure equal work opportunities regardless of
race or creed, and
4. Regulate the relations between workers and
Both sectors (employees and employers) need
each other.They are interdependent one is
inutile without the other.
The basic policy is to balance or to
coordinate the rights
and interests of both workers and
Rights of Workers Under Art. 3 of the Labor
1. Self-organization;
2. Collective bargaining;
3. Security of tenure; and
4. Just and humane conditions of work
Labor - is understood as physical toil although it
does not necessarily exclude the application of
skill, thus there is skilled and unskilled labor.
Distinction: Labor law and social legislation
Labor laws- directly affect employment
Social legislation- governs effects of Employment.
- are social legislation
- not all SL are Labor Laws

Management Rights / Prerogative except as

limited by special laws, an employer is free to
regulate, according to his own discretion and
judgment, all aspects of employment, including
work assignments, working methods, time, place
manner of work, tools to be used, processes to be
followed, supervision of workers, working
transfer of employees, work supervision, lay-off of
workers and the discipline, dismissal and recall of
Art. 4. Construction in favor of labor.
All doubts in the implementation and
interpretation of the provisions of this
Code,including its implementing rules and
regulations,shall be resolved in favor of labor.
The Supreme Court adopts the liberal approach
which favors the exercise of labor rights.
The labor law is liberally construed in favor of the
workers and strictly construed against the
Reason for according greater protection to
In the matter of employments bargaining, there is
no doubt that the employer stands on higher
footing than the employee.
Those who have less in life should have more in

Management Rights
It should not be supposed that every labor dispute
will be
automatically decided in favor of labor.
Management has also its own rights which are
entitled to respect and enforcement in the interest
of simple fair play.
The law, in protecting the rights of the laborer,
authorizes neither oppression nor self-destruction
of the employer.
Right to Return of Investments (ROI) the
employer has the right to recover his investments
to make profit. The Constitution provides that the
State shall regulate the relations between workers
employers, recognizing the right of labor to its just
share... and the right of enterprises to reasonable
returns on investments, and to expansion and
The Right to Prescribe Rules employers have
right to make reasonable rules and regulations for
government of their employees, and when
employees, with knowledge of an established rule,
enter the service, the rule becomes part of the
contract of employment.
The Right to Select Employees an employer
has a

right to select his employees and to decide when

engage them. The State has no right to interfere
in a
private employment; it cannot interfere with the
liberty of contract with respect to labor except in
exercise of the police power. If the employer can
compel the employee to work against the latter's
this is servitude. If the employee can compel the
employer to give him work against the employer's
will, this is oppression.
Right to Transfer or Discharge Employees
employer has the perfect right to transfer, reduce
lay off personnel in order to minimize expenses
to insure the stability of the business, and even to
close the business, provided the transfer or
is not abused but is done in good faith and is due
causes beyond control. To hold otherwise would
oppressive and inhuman.
Art. 58. Definition of Terms.
Apprenticeship practical training on the job
supplemented by related theoretical instruction.

Apprentice is a worker who is covered by a

apprenticeship agreement with an individual
employer or any of the entities recognized under
this Chapter.
Apprenticeable occupation any trade, form of
employment or occupation which requires more
than three (3) months of practical training on the
job supplemented by related
theoretical instruction.
Art. 59. Qualifications of apprentice.
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for
appropriate tests; and
(c) Possess the ability to comprehend and follow
and written instructions.
Art. 60. Employment of apprentices.
Only employers in the highly technical industries
may employ apprentices and only in
apprenticeable occupations approved by the
Secretary of Labor and Employment.
Art. 61. Contents of apprenticeship agreements.
Apprenticeship agreements, including the wage
rates of
apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The
period of apprenticeship shall not exceed six
months. Apprenticeship agreements providing
for wage rates below the legal minimum wage,
which in no case shall start below 75 percent of

the applicable minimum wage, may be entered

into only in accordance with apprenticeship
programs duly approved by the Secretary of Labor
and Employment. The Department shall develop
standard model programs of apprenticeship.
Art. 67. Exhaustion of administrative remedies.
No person shall institute any action for the
enforcement of any apprenticeship agreement or
damages for breach of any such agreement,
unless he has exhausted all available
administrative remedies.
Four-Fold Test in Determining EmployerEmployee
1. the selection and engagement of the employee
2. the payment of wages
3. the power of dismissal
4. the employer's power to control with respect to
means and methods by which the work is to be
accomplished (Brotherhood vs. Zamora)
B. Economic Relations Test a subordinate /
alternative test. Existing economic conditions
between the parties are used to determine
EER exists.
1. payment of PAG-IBIG Fund contributions

2. payment / remittance of contributions to the


Insurance Fund
3. deduction of withholding tax
4. deduction / remittance of SSS contributions