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Notes: Labor Law 2016-2017 (Shalinis)

Non-compliance of requirements for

strikes/lockouts will render the strikes/lockouts
COVERAGE : ARTICLES 278-306 illegal.

1. Bivero vs CA 344 scra 268 In illegal strikes, union officers will lose
their jobs or any worker who knowingly
Unionized worker is dismissed participated in the illegal strike or has
Who has jurisdiction over this case? committed illegal acts. There should be a
>labor arbiter has jurisdiction over termination proof of commission of the illegal acts
disputes Art 224(a)(2) before the employee loses his job.
>the unionized worker has also the option to file the
complaint in grievance machinery or voluntary. In Pari Delicto applies when union
strikes and employers do lockouts.

Three elements: Case 2: Lapanday Workers Union v. NLRC, 248
a. Stoppage of Work (Temporary) SCRA 95
b. Concerted action of employees
c. Labor Dispute SC: In construing the requirements for
strikes and lock-outs non-compliance of
Article 278 Strikes, Picketing and Lockouts requirements will render the strikes illegal.
(*focus on par. C-G : Requirements for Strikes
and Lockouts) Case 3: SM Corp. v. NLRC, 403 SCRA 418

Inter-dispute Two or more unions are Issue: CBA had No Strike / No Lockout
involved. clause
Intra-Inter Union Disputes not a ground SC: No strike provision bars only economic
for strikes strikes, not strikes grounded on ULP. Still
there should be grievance and arbitrary
In Collective Bargaining Deadlocks notice procedure.
strike or of lockout should be filed with the
Ministry at least 30 days before the
intended date thereof. In cases of Unfair Case 4: Sarmiento v. Judge Duico, 162 SCRA 676
Labor Practice (ULP), the period of notice
shall be 15 days. SC: Defiance to return to work order is a
ground for dismissal and is equivalent to loss of
Strikes should happen after the cooling-off employment.
period. (15 days)

Case 1: Capitol Medical Center v. NLRC, 457 SCRA Case 5: Stanford Marketing v. Julian, 423 SCRA
235 633

Additional requirement was given: 24 hours SC: Even if the rule is for the determination
before the conduct of strikes/lockout vote, of union officers in illegal strike, employers
union/employer must give 24-hr notice to must follow procedural requirements for
NCMB. dismissing them.

Case 6: St. Scholasticas College v. Torres, 210

Article 279 Prohibited Activities SCRA 565

Prescription of commission or non- Issue: Jurisdiction over an Illegal Strike

commission of certain acts Case, questions on the validity of strikes/lockouts
SC: Petition for assumption of jurisdiction of
Par. E Rally obstructing the gate the Secretary of Labor depends on whether
Picketing going to and fro the petition for assumption is included in the
employers premises allegation for illegal strike. SOL can still
assume jurisdiction even when questions re
Union CANNOT commit acts of violence. validity of strikes/lockouts are raised.
Employers have the prerogative to dismiss
Case 7: MSF Tire and Rubber v. CA, 311 SCRA workers provided that dismissal must be
784 with due process.

Issue: Innocent Bystander Rule in Strikes

SC: If other businesses are affected by the Remedies of Unjust Dismissal
Strike (ex. Malls), they can go to the regular
courts to enjoin the obstruction provided 1. Reinstatement
that theres no EER between the strikers Allow reinstatement to a
and mall tenants. substantially equivalent position
with equivalent wage, privileges and
benefits. (In case the worker cannot
General Rule: be reinstated to former position)

There should be no Strikes/Lockouts in 2. In lieu of reinstatement, payment of

Hospitals or Medical Clinics. Protection of separation pay which is equivalent to a 1
life is a top priority. If inevitable, skeletal month pay for every year of service.
force must take charge.

Case 8: Globe McKay v. NLRC, 206 SCRA 701

Article 284 Prohibition against Aliens;
Exceptions Full back wages with Allowances

Aliens are prohibited from engaging in Case 9: Bustamante v. NLRC, 265 SCRA 61 (EN
union activities except when they are BANC)
workers and have valid permits issued by
DOLE. Rule on Reciprocity applies. Employee was unjustly dismissed and got a
new job. He is still entitled to a full back wages.
Article 286 Tenants (Agrarian Reform)

Article 287 Penalizing of prohibited activities Article 295 ENDO is inapplicable because
in Art. 279 Labor Law allows contractors to operate.

Article 289 Examination of Union Financial

Records There is a regular employment if the work is
necessary and desirable for unindefinite period.
Article 292 Prescribed due process in
dismissal of workers
Case 10: Phil. Village Hotel v. NLRC, 230 SCRA 43
(b) Substantive requirements (due process
requirement > 298) Case 11: Brent School v. Zamora, 181 SCRA 702
(c) Regular workers can be union members
(f) Voluntary Arbitration Fund SC: As long as the worker is aware of the
(h) In cases when no legit labor terms of employment and voluntarily
organizations exist accepts such, the
employment for a specific period is valid.

LAW ON DISMISSAL Case 12: Rowell Industrial Corp. v. CA, 517 SCRA
- This law applies to all works.
Seasonal Employment
Article 294 (Read together with Article 292
(e)) Case 13: Mercado v. NLRC, 201 SCRA 332

Basis is security of tenure. Case 14: Hacienda Fatima v. National Federation

Workers have the right not to be dismissed of Sugarcane Workers, 396 SCRA 518
except for just and authorized reasons. This
applies to regular workers only. Employment should be for one season.
Case 15: Abasolo v. NLRC, 346 SCRA 293
Seasonal employment is for one season only,
if the worker has to work for two-or more Actual hearing need not be conducted but
seasons, it will be a regular employment. there should be opportunity to be heard.

If theres no due process, whats the remedy

Case 16: UST v. NLRC, 182 SCRA 371 (EN BANC) of the worker? Violation of due process is
subject to nominal damages.
SC: Part-time employees can never become
regular employees (ex. Part-time teachers)
Case 20: Agabon v. NLRC, 442 SCRA 573
Atty. Plagata: For teachers the probationary
period is three years and full-time teachers 30k > Nominal Damages
should have a load of at least 18 units.
Case 21: Jaka Food Prcessing v. PA Co., 454 SRA

PROBATIONARY EMPLOYMENT Nominal damages of 50k

Requirement of due process
Dismissal should be made before the Worker should observe due process as well.
probationary period ends.
If dismissal has no just cause, it is
tantamount to denial of due process. Thus,
Art. 297 - Just Causes dismissal is illegal.

Willful Disobedience - Insubordination

Elements: Case 22: IRRI v. NLRC, 221 SCRA 760

1. Willful Disobedience
2. There is a lawful Order Moral turpitude in just causes of dismissal.
3. In connection with work
4. Serious Misconduct Articles 298-299
Corresponding payment of separation pay -
Abandonment how is it computed?
1. Intent to leave work without
returning. 1. Labor-Saving device ex. Computers
2. Overt act that indicates the intent (reason for laying-off of employees)
to leave work without returning. 2. Redundancy Duplication of works.
3. Retrenchment Reduction of personnel
Willful Breach of Trust to prevent or reduce losses. Losses are
1. Managerial Trust imposed is either actual or imminent.
greater. 4. Closing/Cessation Losses should be
2. Rank-and-File Actual Breach proven.

Case 17: Cadiz v. Brent Hospital, G.R. No. 187417 RETRENCHMENT

Issue: Does immorality constitute just

cause? Case 23: Guerrero v. NLRC, 261 SCRA 301

Case 18: Leus v. St. Scholasticas College, G.R. No. SC: Retrenchment must be done as a last
187226, 1/28/15 resort to cut down losses.

SC: Immorality is not a just cause. Procedure: Management Prerogative

Case 19: Escobia v. NLRC 1. Written notice must be given to

2. There should be a report Case 28: Escubin v. NLRC
submitted to DOLE
3. There should be payment of Security guards of Basilan
separation pay. Dismissal is because of disobedience. (b)
Acts of Employer

Constructive Dismissal is illegal.
Does not involve serious business losses.
Still warrants payment of separation pay. Nominal Damages is given to an employee if theres
no just cause and no due process when he was
Case 24: McAdams Metal Engineering Workers
Union v. McAdams Metal Engineering, 414 SCRA
411 Article 301 Suspension of Operations

SC: Cessation is allowed even if the business Suspension of operations should not exceed
is not undergoing business losses because it six months, if exceeds six months it is
is a management prerogative. equivalent ot a constructive dismissal.

Case 25: North Davao Mining v. NLRC, 254 SCRA Case 29: Soliman Security Services v. CA, 384
721 SCRA 514

SC: If employer is undergoing serious

economic losses, theres no need of payment of RETIREMENT
separation pay.
But if the employer wants to pay, its their This is another cause for cessation of
prerogative. employment.

Retirement is different for mining

Case 26: National Federation of Labor v. NLRC, employees.
327 SCRA 158

SC: Patalon Coconut something was Case 30: Escohale Shoe Cmpany v. NLRC, 193
subjected to Agrarian Reform. There was SCRA 678
dismissal of workers. Court ruled that
separation pay is not due because the When the case was pending, worker
employer has no fault for the closure. The reached the retirement age. He is entitled to
closure was due to operation of law retirement pay plus separation pay (in lieu
compulsory acquisition of CARP. of reinstatement).

However, if land was voluntarily offered,

workers should be paid separation pay. Case 31: Callanta v. Carnation Phil. 145 SCRA
Article 299 Disease
Prescriptive Period 4 years Article 1146 of
Disease is suffered by employee and such is the Civil Code
certified by an expert, and it cannot be Illegal dismissal is a violation to the right of
cured for less than six months. security of tenure.
Article 300 Constructive Dismissal

Case 27: Chiang Kai She v. CA, 437 SCRA 171 Service Incentive Leave
Prescriptive Period from demand is made
Cessation from work for payment. Demand should be made
Teacher was on leave when an imposition of before accrual of payment.
a condition was made.