Labor Relations Course Outline-3

UNIVERSITY OF SAN AGUSTIN
SCHOOL OF LAW
COURSE SYLLABUS
Course Title: Labor Relations

No. of Units: 3
Semester/ SY: Second Semester 2015-2016
Instructor: Atty. Rommel C. Bellones
I. COURSE DESCRIPTION AND OBJECTIVES
Course Description
The course is one of the topics under Social Legislation and one of the two major fields in
Labor Law. It primarily deals with the study of the mechanisms and processes involved in
collective negotiation and post-employment. The course will briefly review the employer-
employee relationship and the different status of employment. The review involves the
visualization of labor relations law as a process from the identification of the bargaining
unit and the excluded members, the establishment of legitimate labor organizations, unfair
labor practices, and certification of the collective bargaining agent, the collective bargaining
process, execution and administration, including the use of strikes, towards the goal of
achieving industrial peace. The topics will be discussed according to the labor relations
process. The topic on post-employment will be discussed as the last topic for the semester
Course Coverage
In this course we will examine, among others:
- The identification of the bargaining unit and its members;

- The formation of labor organizations;
- The various unfair labor practices;
- The collective bargaining process;
- The conduct of strikes;
- The due process clause as applied in the termination of employees;
- How an Agustinian lawyer will ensure compliance with labor relations law and the
due process clause in the termination of employees as tools for achieving industrial
peace.
Course Objectives
At the end of the semester, you will have acquired, among others:
- A full understanding of the bargaining unit;
- A full understanding of the processes involved in collective bargaining and

compliance with the due process clause towards the achievement of industrial
peace;
- A complete set of knowledge and values that will aid you in understanding labor
standards law, including:
Problem-solving skills;
Active, empathic listening;
Writing skills;
Discussion and conversation skills;
Reflection and self-awareness;
Mindfulness; and
Labor Relations Law, SY 2017-2018, Second Semester 1
Atty. Rommel C. Bellones
Selflessness.
Course Methodology
Our class will employ a variety of teaching methods:
- Discussion method;
- Graded recitation;
- Analysis of applicable case law;
- Problem solving based on hypothetical cases;
II. COURSE REQUIREMENTS AND GRADING SYSTEM
Course Requirements
(1) Weekly graded recitations;

(2) Oral revalida of proposed solutions to hypothetical cases;
(3) Quizzes;
(4) Prelim examination;
(5) Mid-term examination; and
(6) Final examination.
Basis for Grading
Class Performance 10%

Prelim examination 30%
Mid-term examination 30%
Final examination 30%
Total 100%
III. COURSE POLICIES
Class Rules
(1) This class is meant to be a safe space for everyone. Create and hold the space.
(2) Be at all class sessions on time.
(3) For those times that you are late or absent, be fully responsible for getting the full
value of the class session that you have missed.
(4) Be fully engaged in the class sessions. Come to class having done the readings and
assignments and ready to discuss.
(5) Laptops, tablets, cell phones, and other electronic devices will not be used during
class. Keep them on silent mode or turn them off for the duration of the class, and
keep them out of sight.
(6) You may take down notes during the class lecture or discussion but you are not
allowed to open your books/reviewers.
(7) THINK and ask questions.
(8) Keep an open mind, open ears, and an open heart.
(9) Respect the opinion of others.

IV. COURSE OUTLINE
I. Fundamental Principles and Policies
A. Constitutional provisions
1. Article II, Secs. 9, 10, 11, 13, 14, 18, 20.
2. Article III, Secs. 1, 4, 7, 8, 10, 16, 18(2).
3. Article XIII, Secs. 1, 2, 3, 13, 14.
B. Labor Code
1. Article 3
2. Article 4
3. Article 166
4. Article 211
5. Article 212
6. Article 255
7. Article 277
II. Employer-Employee Relationship
1. Existence of Employer-Employee Relationship

a) Control Test
b) Economic Reality Test
c) Two-Tier Test
2. Status of Employment (Art. 280)
a) Regular
b) Project
c) Seasonal
d) Casual
e) Probationary
3. Labor Relations Law
a) Coverage of the right to self-organization: Art. 252. -256;
1. QUALIFIED TO FORM, ASSIST, JOIN UNIONS
1.1. RANK-AND-FILE employees of Commercial, industrial, agricultural

enterprises and Religious, charitable, medical or educational
institutions whether profit or non-profit.
1.2. SUPERVISORY EMPLOYEES
1.3. SECURITY PERSONNEL/CONFIDENTIAL/TECHNICAL
1.4. GOVERNMENT EMPLOYEES except AFP and PNP personnel
1.5. EMPLOYEES OF GOCCs
1.6. ALIENS WITH EMPLOYMENT PERMITS, subject to reciprocity
2. DISQUALIFIED
2.1. MANAGERIAL EMPLOYEES are ineligible to joint, assist or form any

labor organization. Under the DOCTRINE OF NECESSARY
IMPLICATION, members of the managerial staff are under the same
prohibition.
2.2. SUPERVISORY EMPLOYEES cannot join the union of rank-and-file
employees.
2.3. CONFIDENTIAL EMPLOYEES who have access to confidential data
and information relating to labor relations matters are also
disqualified to join the union of rank-and-filers, although they may
form their own union.
2.4. RELIGIOUS OBJECTORS
2.5. MEMBER-EMPLOYEES OF COOPERATIVES
2.6. EMPLOYEES EXCLUDED FROM BARGAINING UNIT
b) LABOR ORGANIZATIONS: Art. 239-248
1. Requirements of registration;
2. Additional requirements for federations or national unions;
3. Grounds for cancellation of union registration;
4. Procedure for registration and its cancellation of registration, appeal;
5. Equity of the incumbent
c) RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS, Article 250
1. Right to represent members for Collective Bargaining

2. Right to be certified as Collective Bargaining Agent
3. Right to be furnished Audited Financial Statements
4. Right to own property
5. Right to sue and be sued
6. Right to organize and operate cooperatives, housing, welfare, and other
projects, etc.
d) RIGHTS AND CONDITIONS OF MEMBERSHIP, Article 249
1. FINANCIAL RIGHTS
1. No arbitrary or excessive fees, fines, etc,

2. No unauthorized special assessments
3. No check-off except for dues and mandatory activities
4. Right to be Issued receipts for payments 1.2*1.5. No unauthorized
collection or disbursement of funds 1.2.1.6. Officers are only entitled to
salaries/expenses duly authorized under the Constitution or majority of
members
2. RIGHT TO INFORMATION
1. Recording of income and expenditures

2. Accounting of all organizational funds
3. Inspection of Books of Accounts/Financial Records
4. Information on rights/duties of members under the Union Constitution
and By-laws, CBA, labor laws and jurisprudence.
3. POLITICAL RIGHTS
1. Direct election of officers every FIVE (5) years

2. Participate by secret ballot in policy-making
3. Right against admission of subversives and engaging in subversive
activity
4. Right against election of persons convicted of crimes involving moral
turpitude to elective administrative posts.
e) UNFAIR LABOR PRACTICE (ULP) Art. 257-259

1. ELEMENTS
a. Existence of an employer-employee relationship
b. Act complained of must be expressly mentioned and defined In the
Labor Code as a ULP
2. ULP COMITTED BY EMPLOYER

a. Interfere, restrain coerce right of employees to organize
b. Require person NOT to join union or WITHDRAW from one
c. Contract out services rendered by union members
d. Initiate, dominate, assist a union
e. Discrimination to encourage/discourage union membership
f. Dismiss employee for giving testimony
g. Violate duty to bargain collectively
h. Pay negotiation/attorney's fees as part of settlement
i. Flagrant violation with terms and conditions of CBA
3. ULP COMMITTED BY UNION
a. Restrain and coerce employees to organize

b. Cause employer to discriminate
c. Violate duty to bargain collectively
d. Cause employee to pay for services not rendered
e. Ask for negotiation/attorneys fees as part of settlement
f. Flagrant violation of CBA
4. UNION SECURITY ARRANGEMENTS
a. CLOSED SHOP: only members OF THE BARGAINING AGENT can be hired

and they must remain union members as a condition of continued
employment.
b. UNION SHOP: Once hired, a person must become a member of the
bargaining agent and must remain so during the period of the CBA for
continued employment.
c. MODIFIED UNION SHOP: employees who are not members of the
bargaining union upon execution of the CBA are not required to join the
union; only those hired after are required.
d. AGENCY SHOP: non-members are not required to join the bargaining
union but they should pay an AGENCY FEE to the union as a condition for
continued employment.
e. MAINTENANCE OF MEMBERSHIP: requires members of the bargaining
union to maintain their membership therein for continued employment.
Non-union members are not required to join.
f. PREFERENTIAL HIRING AGREEMENT: preference in hiring is given to
members of the bargaining union who are thereafter required to maintain
their membership for continued employment.
F) Collective Bargaining

BARGAINING UNIT
A group of employees of a gjven employer comprised of all or less than of the

entire body of employees, consistent with equity to the employer, indicated to be
best suited to serve the reciprocal rights and duties of the parties under the
collective bargaining provisions of the law. There can only be ONE EXCLUSIVE
BARGAINING AGENT in a bargaining unit even if there are more than one union
therein. The PRINCIPLES OR FACTORS In determining the appropriate bargaining
may be:
1. SUBSTANTIAL MUTUAL INTERESTS: similarity of employment status, duties and

responsibilities, similar compensation scheme and working conditions.
2. GLOBE DOCTRINE: will or desire of the employees to be joined together in one
bargaining unit.
3. COLLECTIVE BARGAINING HISTORY: prior collective bargaining history or
affinity of the employees.
4. EMPLOYMENT STATUS: category or kind of employment.
KINDS OF BARGAINING
1. Single-enterprise bargaining involves negotiation between one certified labor

union and one employer;
2. Multi-employer bargaining involves negotiation between and among several
certified labor unions and employers;
REQUISITES OF COLLECTIVE BARGAINING
1. Employer-employee relationship
2. Proof of majority status of the
3. Demand to Bargain Collectively
DETERMINATION OF MAJORITY STATUS
1. VOLUNTARY RECOGNITION: In UNORGANIZED ESTABLISHMENTS, when

there is only one legitimate labor organization in the bargaining unit.
2. CERTIFICATION, RUN-OFF, CONSENT ELECTION: In ORGANIZED

ESTABLISHMENTS, when the majority status of the incumbent bargaining
agent is challenged; or In UNORGANIZED ESTABLISHMENTS, when a
petition is filed by a union or the employer.
CERTIFICATION ELECTION (
CONCEPT: Non-adversary fact-finding process/investigation to determine

the will of the employees if they wish to have a collecting bargaining
agent/representative in the appropriate bargaining unit for the purpose of collective
bargaining. All employees, whether probationary or permanent, regular or
otherwise may be allowed to participate, subject to the exclusion-inclusion
proceedings. The employer is simply a bystander in certification election
proceedings.
REQUISITES FOR PETITIONS
In ORGANIZED ESTABLISHMENTS: Verified petition questioning the majority

status of the incumbent bargaining agent filed by at least TWENTY-FIVE (25%) PER
CENT of all the employees in the bargaining unit/during the FREEDOM PERIOD
(SIXTY [60] DAYS prior to expiration of term of CBA)). If no petition is filed during
this period, the employer shall continue to recognize the majority status of the
bargaining union.
In UNORGANIZED ESTABLISHMENTS: A certification election shall be

conducted upon filing the petition by the union or the employer in case there is a
demand for collective bargaining unless there is voluntary recognition.
ELECTION BAN
1. CONTRACT BAR RULE: when there is still a valid and binding CBA, except during
the Freedom Period.
2. CERTIFICATION YEAR RULE: within ONE (1) YEAR from the date of the issuance
of the final certification election result.
3. DEADLOCK BAR RULE: where on-going CBA negotiations result in a deadlock
that has been' submitted for conciliation or mediation or has become the subject
of a notice of strike or lockout.
RUN-OFF ELECTION: when there are three or more choices in the

certification election (including NO UNION) and none gets the majority vote, a run-
off shall be held within five (5) days between the two (2) unions receiving the
highest votes, provided that the total number of votes for all the contending unions
is at least FIFTY (50%) PERCENT of the total votes cast.
CONSENT ELECTION: By agreement between two or more contending

unions within the bargaining unit to determine who has the majority status even
outside of the Freedom Period.
COLLECTIVE BARGAINING PROPER
CONCEPT: The duty to bargain collectively involves:
1. The performance of the mutual obligation TO MEET AND CONVENE promptly,

expeditiously and in good faith.
2. To NEGOTIATE an agreement with respect wages, hour% of work and all other
terms and conditions of employment, including proposals for grievance machinery.
3. However, this duty does not compel any party to agree to a proposal or to make
concessions.
MANDATORY SUBJECTS OF BARGAINING: wages, work hours/days, vacations/holidays,
bonuses, retirement, seniority, layoffs/transfers, workloads, operating/disciplinary rules
and regulations, union security arrangements.
COMMON STIPULATIONS AND CLAUSES IN A CBA

1. Title;
2. Description of the parties;
3. Preliminary statement of principles;
4. Description of bargaining unit;
5. Exclusionary clause;
6. Check off of union dues, agency fees and other assessments;
7. Statement of management prerogatives;
8. Union commitment;
9. Economic and other fringe benefits;
10. Grievance Machinery;
11. Voluntary Arbitration;
12. No-strike, No-lockout clause;
13. Family planning, health and safety, cooperative, recreation and sports;
14. Waiver and completeness of Agreement;
15. Duration and effectivity of agreement.
Collective Bargaining Process
1. Preliminary Process
2. Negotiation Process
3. Execution Process
4. Publication Process
5. Ratification Process
6. Registration Process
7. Administration Process

8. Interpretation and application process
SUBSTITUTIONARY DOCTRINE: employees cannot revoke the validity of the executed CBA
by the simple expediency of changing their collective bargaining agent. New bargaining
agent must respect existing CBA although it may negotiate with the employer for the
shortening of the term thereof.
WILEY DOCTRINE: loss of personality by a legal/valid merger or consolidation of a

corporation with an existing CBA with the union does not automatically terminate all the
rights of the covered employees.
ABSORPTION DOCTRINE: accretion doctrine applies when there is absorption and

integration by one entity of one or more establishments having the same kind and line of
business and having their respective collective bargaining agreements with different labor
union existing therein; the duty to bargain which originally devolves upon the selling party
is transferred to the buying entity.
AUTOMATIC RENEWAL CLAUSE

It shall be the duty of both parties to keep the status quo and to continue in full force
and effect the terms and conditions of the existing agreement during the 60-day period
and/or until a new agreement is reached by the parties. (Art. 253)
RETROACTIVITY OF CBA
Any agreement on such other provisions of the Collective Bargaining Agreement
entered into within six (6) months from the date of expiry of the term of such other
provisions as fixed in such Collective Bargaining Agreement, shall retroact to the day
immediately following such date. If any such agreement is entered into beyond six months,
the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the
renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights
under this Code. (Art. 253-A)
The retroactivity provision under Art. 253-A applies only in cases where the CBA is
voluntarily concluded by and between the parties and not through arbitral awards. In
Meralco vs. Quisumbing [G.R. No. 127598] August 1, 2000, the Supreme Court held that the
arbitral award should retroact to the first day after the six-month period following the
expiration of the last day of the CBA.
SUSPENSION OF CBA
In the case of Rivera vs. Espiritu, G.R. No. 135547, January 23, 2002, the Supreme
Court held as valid the agreement between PAL and the PALEA to suspend the CBA for a
period of ten (10) years subject to certain safeguards. The Supreme Court held, In the
instant case, it was PALEA, as the exclusive bargaining agent of PALs ground employees, that
voluntarily entered into the CBA with PAL. It was als PALEA that voluntarily opted for the
10-year suspension of the CBA. Either case was the unions exercise of its right to collective
bargaining. The right to free collective bargaining, after all, includes the right to suspend it.
xxx xxx In sum, we are of the view that the PAL-PALEA agreement dated September
27, 1998, is a valid exercise of the freedom to contract. Under the principle of inviolability of
contracts guaranteed by the Constitution, the contract must be upheld.
g) STRIKES/PICKETING, LOCKOUTS
1. CONCEPTS
1.1. A STRIKE is any temporary stoppage of work by the concerted action of the
employees as a result of a labor dispute. It includes slowdowns, mass leaves, sit-downs,
attempts to damage or sabotage the employer's operations, equipment and facilities,
and other similar activities.

1.2. PICKETING is peaceably marching to and fro before an establishment to publicly
make known the existence of a labor dispute usually by the display of placards, banners
and other propaganda materials and activities.
1.3. LOCKOUT means the temporary refusal of an employer to furnish work as a resuIt
of a labor dispute.
1.4. INDUSTRIAL/LABOR DISPUTE includes any controversy or matter concerning

terms and conditions of employment or the association or representation of persons in
negotiating the fixing, maintaining, changing or arranging the terms and conditions of
employment, regardless of whether the disputants stand in the proximate relationship
of employer and employee.
1.5. INTER-UNION DISPUTE is a dispute between two or more unions seeking to

represent the employees in a bargaining unit.
1.6. INTRA-UNION DISPUTE is one involving the internal affairs of the union such as
accounting of funds, disloyalty of members, etc.
1.7. "NO STRIKE, NO LOCKOUT CLAUSE": a standard provision in the CBA that
prohibits resort to strike/lockout as a means to resolve a controversy. The
prohibition applies only to an economic strike and not to a ULP strike.
1.8. NOTICE OF STRIKE refers to the notification filed a duly registered labor union
with the appropriate NCMB Regional Branch informing the latter of the formers
intention to go on strike because of deadlock in collective bargaining or the commission
of ULP by the employer. A copy of the notice must be duly served on the employer by
personal service or by registered mail. However, if the notice is sent by Registered Mail,
the cooling-off period shall begin from the date of receipt by the employer of the notice.
1.9. COOLING-OFF PERIOD refers to period designed by the law to afford the parties the
opportunity to amicably resolve this dispute with the assistance of the NCMB. The
period may either be THIRTY (30) DAYS in case of ECONOMIC STRIKE, or FIFTEEN (15)
DAYS for a ULP. STRIKE. The cooling-off period is dispensed with if the ground for the
strike is UNION BUSTING or DISMISSAL OF UNION OFFICERS.
1.10. STRIKE VOTE/LOCKOUT VOTE refers to the approval of the decision to

strike/lockout by a majority of the total union membership in the bargaining unit or the
Board of Directors of the employer corporation, concerned obtained by secret ballot.
1.11. STRIKE BAN is the period of SEVEN (7) DAYS after the report of the strike vote
result to the NCMB/DOLE within which the strike cannot be staged in all kinds of strike.
If the strike vote is held arid the result^ thereof is submitted during the cooling-off
period, the 7-day ban shall be reckoned from the expiration of the cooling-off period.
The purpose of the strike ban is to enable the NCMB/DOLE the opportunity to verify
whether or not the projected strike was approved by the majority o the union members.
1.12. STRIKE AREA means the establishment, warehouse, depots, plants or office,
including the sites or premises used as run-away shops of the employer struck against
as well as the immediate vicinity actually used by picketing-strikers in moving to and fro
before all points of entrance or exit from said establishments
1.13. IMPROVED/REDUCED OFFER BALLOTING: referendum by secret ballot on the

improved offer of the employer or reduced offer by the union conducted by the NCMB
on or before the 30th day of the strike.
1.14. PREVENTIVE MEDIATION CASE is a potential labor dispute that is the subject of a
formal or informal request for conciliation and mediation and mediation assistance
sought by either or both parties or upon the initiative of the NCMB to avoid the
occurrence of an actual labor dispute.
1.15. ASSUMPTION/CERTIFICATION ORDER; Under Article 263[g] of the Labor Code,

when in the opinion of the Secretary of DOLE, the labor dispute causes or will likely cause
a strike or lockout in an industry indispensable to the national interest, he is empowered
to do either of two things:
1.15.1. Assume jurisdiction over the labor dispute and decide it himself;
1.15.2. Certify the labor dispute to the NLRC for compulsory/arbitration
(CERTIFIED CASE)
1.16 RETURN-TO-WORK ORDER is the consequence of an

Assumption/Certification Order where the striking workers are directed to return to
work, and the employer to accept them back, under the same terms and conditions
prevailing before the dispute. If no strike has been staged yet, the Impending strike or
lockout is automatically enjoined. Defiance of the
ASSUMPTION/CERTIFICATION/RETURN-TO- WORIK ORDER will render the
strike/lockout illegal.
2. REQUISITES OF A VALID STRIKE
2.1 Strike must be based on a valid and factual ground
2.1.1. Collective Bargaining Deadlock
2.1.2. Unfair Labor Practice (ULP)
2.1.3. Conduct of Strike Vote
2.1.4. Submlsslon of Strike Vote Report/Result
2.1.5. Observance of 15-Day or 30- Day Cooling-Off Period
2.1.6. Observance of 7-Day Strike Ban
3. ILLEGAL STRIKE
3.1. Failure to comply with requirements/requisites
3.2. Based oh non-strikeable issues/unlawful purpose
3.3. Issues have already been submitted for arbitration
3.4. Commission of prohibited acts

3.5. Notice of Strike has already been converted to Preventive Mediation
3.6. Violation of "NO STRIKE, NO LOCKOUT clause of the CBA, except ULP
3.7. Defiance of Assumption/Certiflcation/Injunctlon Order
4. PROHIBITED ACTS AND PRACTICES

4.1. Declaring a strike/lockout on grounds involving inter-union or Intra-union
disputes, or on issues brought to voluntary or compulsory arbitration.
4.2. Declaring a strike/lockout without first having bargained collectively or without

first having filed the required notice of strike or without the strike or lockout vote.
4.3. Strike in defiance of Return-to-Work Order or after assumption of jurisdiction or

certification of dispute to NLRC.
^
4.4. Obstructing, impeding or interfering with by force, violence, coercion, threats or
intimidation, or abetting any such obstruction or interference, any peaceful picketing or
exercise of the right to self-organization or collective bargaining.
4.5. Employing a strikebreaker or being employed as such.
4.6. No public official or employee including officers and personnel of the AFP and PNP
shall bring in. Introduce or escort in any manner any individual who seeks to replace
strikers in entering or leaving the strike area; or, to work In place of the strikers.
4.7. Stationary pickets or permanent blockades
4.8. Violence, coercion and Intimidation employed by a striker/picketer
4.9. Obstruction of free jngress or egress from the employers premises.
4.10. Obstruction of public thoroughfares.
5. EFFECTS OF PARTICIPATION IN AN ILLEGAL STRIKE; any union officer who knowingly

participates in an illegal strike and any worker who knowingly participates in the
commission of illegal acts during the strike may be declared to have lost their employment
status. However in case of DEFIANCE of a (retum-to-work order, it is immaterial whether the
violator is a union officer or an ordinary member.
6. SUSPENSION OF EFFECTS OF TERMINATION: Under Article 277 [b] of the Labor Code,
the DOLE Secretary may suspend the effects of termination of employees pending the
resolution of dispute in the event of a prima facie finding by the appropriate official before
whom such is dispute is pending, that the termination may cause a serious labor dispute or
Is In the Implementation of a mass lay-off.
7. STRIKES IN HOSPITALS, CLINICS ETC.
7.1. It shall be the duty of the striking union or locking-out employer to provide and
maintain an effective skeletal workforce of medical and other health personnel whose
movement shall and services shall be unhampered and unrestricted, as are necessary to
insure the proper and adequate protection of the life and health of the patients, most
especially emergency cases, during the strike or lockout.
7.2. The DOLE Secretary shall either assume jurisdiction or certify the labor dispute to
the NLRC within TWENTY-FOUR (24) HOURS from knowledge of the occurrence of such
strike or lockout.
8. CONCERTED ACTIVITIES AND STRIKES BY GOVERNMENT EMPLOYEES

8.1. Government employees are not allowed declare any strike for the purpose of
changing the terms and conditions of employment. Negotiation is not also allowed on
those matters that require appropriation of funds, those fixed by law, and those
involving the exercise of management prerogatives.
8.2. Employees of GOCCs organized under the Corporation Code shall have the right to
organize and bargain collectively with their respective employers. All other employees
in the Civil Service shall have the right to form associations for purpose not contrary to
law. .
SUGGESTED READINGS IN STRIKES
ECONOMIC STRIKE one staged by workers to force wage or other economic concessions
from the employer which he is not required by law to grant. 1
Since the possibility of disagreement over terms and conditions of employment is

implicit in the process of collective bargaining, the Supreme Court has held in certain cases
that the validity of an economic strike cannot be made to depend upon the capacity of the
employer to grant the strikers demands, given the absence of any compulsion on the part of
the employer to agree to the proposals or to make any concessions.
- Caltex vs. Phil. Labor Corp. 93 Phil. 295

- Central Vegetable Oil Co. vs. Phil Oil Industry Workers Union 91 Phil 378
- Lakas ng mga Mangagawang Mkabayan vs. Marcelo Ent. 118 SCRA 422
Requirements for Validity:
1. Compliance with Duty to Bargain
- Divine Word University of Tacloban vs. SOLE G.R. No. 91915, Sept. 11, 1992
- Insurefco Paper Pulp vs. Insular Sugar Ref Corp. 95 Phil 761
- Almeda vs. CIR 97 Phil. 306
2. Notice of Strike
- Maria Cristina Fert. Vs. Tandayag 83 SCRA 56
3. Strike Vote and Cooling Off- period
- National Federation of Sugar Workers vs. Ovejera 114 SCRA 354

- Lapanday Wokers Union vs. NLRC G.R. No. 95494-97 September 7, 1995
- Industrial Timber Corp. vs. NLRC G.R. No. 107302 & 306 June 10, 1997
4. Contractual Restrictions
- Manila Oriental Sawmill Company vs. CIR 91 Phil 28

- Liberal Labor Union of the Phil. vs. Phil. Can Company 91 Phil 72
- Phil. Metal Foundries vs. CIR G.R. No. L-34948, May 15, 1979
STRIKERS RIGHTS in Economic Strikes
1. Non-abandonment of Demands
- Consolidated Labor Association vs Marsman Company, 11 SCRA 589

- Bisaya Land Transportation Co. vs. CIR 102 Phil 438
2. Protection against Discrimination

1
Consolidated Labor Association vs Marsman Company, 11 SCRA 589
- Insular Life Assurance Company-NATU vs. Insular Life Assurance Co. 37 SCRA
244
3. Reinstatement
4. Backwages
- Economic strikers are not entitled to backwages (PHILMAROA vs. CIR 102 Phil
373)
- Exception (in case there is discrimination) Talisay-Silay Milling Co. vs. CIR 106
Phil. 1081
UNFAIR LABOR PRACTICE STRIKE a concerted activity of employees, an unfair labor

practice is resorted to as a deliberate measure to compel the employer to cease and desist
from committing any of the unfair labor practice acts as enumerated and defined under Art.
248 of the Labor Code.
Economic and ULP Strikes: The Need for Distinction
While the law requires prior notice for both economic and unfair labor practice
strikes, the different periods on notice obviously would make the distinction between one
and the other still necessary, compliance with the notice periods being considered
mandatory.

- FEATI University Faculty Club vs. Feati University 58 SCRA 395
In other situations, a strike initiated as an economic one may be transformed into an

unfair labor practice strike on account of discriminatory acts of the employer against
returning or reinstated strikers, which may lead to the continuation or resumption of
the strike. The point of transformation is crucial because while economic strikers are
generally entitled only to discriminatory acts against them could conceivably lead to the
award of affirmative reliefs like backwages.

- Talisay-Silay Milling Co. vs. CIR 106 Phil. 1081
Requirements for Validity:
1. Notice of Strike the filing of a notice of strike is a mandatory requirement

noncompliance with which would render the strike illegal for which the strike
leaders may be declared to have forfeited their employment.
- Pepsi Cola Labor Union vs. NLRC 114 SCRA 930
2. Strike Vote and Cooling Off- period

- First City Interlink Trans. Co. vs. SOLE G.R. No. 106316 May 5, 1997
3. Absence of a Pending Case - no strike shall be declared during the pendency of cases
involving the same grounds for the strike.
- Luzon Marine Department Union vs. Arsenio Roldan 86 Phil 507
CONTRACTUAL RESTRICTIONS applies only to economic strikes

- Philippine Metal Foundries Inc., vs. CIR 90 SCRA 135
- Master Iron Labor Union vs. NLRC G.R. No. 92009 Feb. 17, 1993
Exception:
- GOP Workers Union vs. CIR 93 SCRA 118
Good Faith Rule
The commission of an unfair labor practice on the part of the employer is both a legal
and factual issue, the existence of a factual basis for an unfair labor practice strike is
generally determined only after a litigious hearing.
- Shell Oil Workers Union vs. Shell 39 SCRA 276

- PHILMAROA vs. CIR 102 Phil 373
- Ferrer vs. CIR 17 SCRA 353
- Cebu Portland Cement Company vs. Cebu Workers Union 25 SCRA 504
- Philippine Metal Foundries Inc., vs. CIR 90 SCRA 135
- Pepsi Cola Labor Union vs. NLRC 114 SCRA 930
- Islama Machine Works Corp. vs. NLRC G.R. No. 100167 March 2, 1995
STRIKERS RIGHTS in ULP Strikes
1. Protection against Discrimination
- Talisay-Silay Milling Co. vs. CIR 106 Phil. 1081

- Cromwell Commercial Employees and Laborers Union vs. CIR 13 SCRA 358
2. Reinstatement
Mere participation of workers in a lawful strike shall not constitute sufficient

ground for the termination of their employment even if the replacements had been
hired by the employer during such lawful strike.
- Philippine Steam Navigation Co. vs. PMROG 15 SCRA 174

- Insular Life Assurance Co. vs. Insular Life Assurance Co. 37 SCRA 244
3. Backwages
Two categories of employees involved:
i) those directly and adversely affected by the employers ULP
ii) those who voluntarily joined the strike in protest against the employers ULP
- UPEE (NLU) vs. Philippine Education Co. 91 Phil 93
- Cromwell Commercial Employees and Laborers Union vs. CIR 13 SCRA 358
UNION RECOGNITION STRIKE - one calculated to compel the employer to recognize one
union over another as the employees bargaining representative with the end in view of
collective bargaining, notwithstanding the striking unions doubtful majority status to merit
voluntary recognition or lack of formal certification as the EBR in the BU. Present law
categorically prohibits strikes for union recognition.
A strike declared by a labor organization designated or selected by the majority of

the employees to be their EBR to compel the employer to bargain collectively with would
obviously be a protected union activity and should not be confused with a strike for union
recognition.

- Philippine Steam Navigation Co. vs. PMROG 15 SCRA 174
- Peoples Industrial and Commercial Employees and Workers Organization vs.
PICC 112 SCRA 440
- Caltex Filipino Managers and Supervisors Association vs. CIR 44 SCRA 351
EFFECT OF CHANGE IN BARGAINING REPRESENTATIVE
While the new bargaining agent must respect the collective bargaining agreement, it
is not bound by the no-strike clause of the CBA, since it is a personal undertaking of the
deposed collective bargaining representative.
- Benguet Consolidated vs. BCI Employees 23 SCRA 465

- Manila Oriental Sawmill vs. CIR 91 Phil 28
SPONTANEOUS RECALCITRANCE OF EMPLOYEES
- Diwa ng Pagkakaisa vs. Filtex International Corp. 43 SCRA 217
MASS DEMONSTRATION
- Philippine Blooming Mills Employees Org. vs. PBM 51 SCRA 189
LABOR DISPUTES CERTIFICATION
- International Pharmaceuticals Inc. vs. SOLE G.R. No. 92981-83 January 9, 1992
- St. Scholasticas College vs. Toress G.R. No. 100158 June 2, 1992
- RCPI vs. Philippine Communications and Electronics Workers Federation 58
SCRA 762
- Jackbilt Concrete Block Company, Inc. vs. Norton and Harrison Co. 71 SCRA 44
- Allied Banking Corp. vs. NLRC G.R. No. 116128 July 12, 1996
SANCTIONS FOR ILLEGAL STRIKE
Objective Test There should be compliance with such objectively verifiable requirements.
Unlawful Means Test A strike for a lawful purpose and complying with the pertinent
procedural requirements may still be declared illegal if unlawful means are employed in the
prosecution thereof.
1. Forfeiture of employment
Union officers may be dismissed not only for their knowing participation in an illegal
strike, but also for their commission of illegal acts in the course of a strike, whether legal
or illegal, but union members may only be dismissed for their participation in the
commission of illegal acts during a strike, whether legal or illegal.
- Lapanday Workers Union vs NLRC G.R. Nos. 95494-97, Sept. 7, 1995
Where the strike is illegal, the SOLE cannot enjoin the employer from taking
retaliatory action for the strike, including the dismissal of union leaders. The SOLE
exceeded his jurisdiction when he restrained PAL from taking disciplinary action against
its guilty employees, for, under the LC, all that the SOLE may enjoin is the holding of the
strike, but not the companys right to take action against union officers who participated
in the illegal strike and committed illegal acts.
- PAL vs. SOLE G.R. No. 88210, Jan. 23, 1991

Pepsi Cola Labor Union vs. NLRC 114 SCRA 930
The commission of unlawful acts in the course of a strike is also a ground for forfeiture
of the employment of the strikers. However, where the identity of those who committed
those illegal acts during the strike, had not been adequately established, no sufficient
evidence could be found to pin down the respondents as having committed illegal acts
during the strike that could warrant a loss of their employment status.
- Islama Machine Works Corp. vs. NLRC G.R. No. 100167 March 2, 1995
Where acts of violence are sporadic and not pervasive by design and policy,
responsibility therefor is individual and not collective.
- FEATI University vs. Bautista 18 SCRA 1191
2. Damages
- Liwayway Publications vs. Permanent Concrete Workers Union 108 SCRA 161
3. Union Deregistration
- National Union of Bank Employees vs. MOLE 110 SCRA 274
4. Criminal Liability
- PAFLU vs. CFI of Rizal 120 SCRA 1
OTHER REFERENCES
1. A union member may not be held responsible for the unions illegal strike on the
sole basis of such membership or on account of his having voted affirmatively for the
holding of the strike later declared illegal. ESSO Phils. vs. Malayang Manggagawa sa
ESSO 75 SCRA 73
2. Striking professors do not lose their status as employees by going on strike and the
may be reinstated even if their teaching contracts had expired. FEATI Univ. vs.
Bautista 18 SCRA 1191
3. GOOD FAITH STRIKE. A strike is not illegal if the strikers believed in good faith that
the employer has committed an unfair labor practice. Pepsi Cola Labor Union vs.
NLRC 114 SCRA 930
4. Where the workers declared a strike on the good faith belief that the Company had
committed unfair labor practices, the strike is legal and the workers do forfeit their
employment. Ferrer vs. CIR 17 SCRA 353
5. A strike without prior notice and in disregard of the no-strike clause of the CBA is
not illegal where it was declared in protest against the dismissal of the union
president for his union activities. Phil. Metal Foundries vs. CIR 90 SCRA 135
6. It is legal to stipulate in a CBA that in case of unfair labor practice, no strike or

lockout will be held until the grievance is resolved. GOP Workers vs. CIR 93 SCRA
118.
h) SECURITY OF TENURE

1.1. MANAGEMENT PREROGATIVES: These are the collective rights of the
employer In the employment relationship.
1.1.1. REGULATE EMPLOYMENT: The employer is free to regulate all aspects

of employment (prescribe working methods, time, place, manner and other
aspects of work) according to his own judgment and discretion, the hiring,
firing, transfer, demotion and promotion is traditionally a management
prerogative subject only to the limitations established by: LAW, COLLECTIVE
BARGAINING AGREEMENT, and GENERAL PRINCIPLES OF FAIR PLAY AND
JUSTICE.
1.1.2. DISCIPLINE / DISMISSAL OF EMPLOYEES: Discipline of employees is a

basic management right and prerogative. The employer cannot be compelled
to maintain in his employ undeserving or undesirable employees. The
employer may demand observance of reasonable company rules and
regulations and provide appropriate penalties for violation thereof.
1.2. REQUIREMENTS FOR VALID DISMISSAL: A regular employer may not be

dismissed except for just or authorized cause and after due process.
1.3. JUST CAUSES (ARTICLE 282)
1.3.1. SERIOUS MISCONDUCT
1.3.1.1. Intentional violation of an established or defined rule of action
1.3.1.2. grave and aggravated in character
1.3.1.3. work-connected
1.3.2. WILLFUL DISOBEDIENCE
1.3.2.1. willful or intentional misconduct characterized by a wrongful or

perverse attitude
1.3.2.2. order violated is iteasonabie and lawful and made known to the
employee
1.3.2.3. order must pertain or relate to duties of the employee
1.3.3. GROSS AND HABITUAL NEGLECT OF DUTIES
1.3.3.1. NEGLIGENCE MUST BE BOTH "GROSS" (utter disregard or

want of slight care of the consequences without exerting effort to
avoid them) and HABITUAL" (implies repetitive acts) However
habituality may be disregarded where there is grave or actual loss
or prejudice suffered by the employer.
1.3.3.2. EXCESSIVE ABSENCES or ABANDONMENT is a genre of

neglect of duties.
1.3.3.3. FAILURE TO ATTAIN WORK/PRODUCTION QUOTAS may also

constitute gross and habitual neglect of duties.

1.3.4. FRAUD OR WILLFUL BREACH OF TRUST/CONFIDENCE
1.3.4.1. FRAUD is malicious non-performance of one's obligation. It

connotes bad faith and an intentional act to cause damage or prejudice to
the employer thereby breaching the employer's trust and confidence in
the employee.
1.3.4.2. The basic premise for this ground is that the employee occupies a
position imbued with trust and confidence as when the employee handles
cash or property of the employer. Ordinarily, a rank-and-file employee's
position is not reposed with trust and confidence similar to a supervisor
or managerial employee. However, it is the nature of the employee's work
and the scope or special character of his duties and not his designation
that determines whether or not the position is imbued with trust and
confidence.
1.3.4.3. To be a valid ground for dismissal, the loss of trust and confidence
should not be simulated; it should not be used as a subterfuge for causes
which are improper. Illegal or unjustified; it should not be arbitrarily
asserted in the face of overwhelming evidence to the contrary; and, the
loss must be genuine, not a mere afterthought to justify earlier actions
taken in bad faith.
1.3.4.4. Proof beyond reasonable doubt Is not required to Justify
dismissals for loss of trust and confidence. B: is sufficient that there Is
some basis or reasonable ground to believe If not entertain the moral
conviction that the employee concerned is responsible for misconduct
and his participation therein renders him unworthy of the trust and
confidence demanded by his position.
1.3.5. COMMISSION OF CRIME
1.3.5.1. To justify dismissal, the crime or felony must have been

committed against the employer, an immediate member of his family, or
the employer's duly authorized representative.
1.3.5.2. Criminal conviction is not necessary to provide just cause for

dismissal.
1.3.6. ANALOGOUS CAUSES: These are normally causes that have similar
connotations as the specific causes mentioned above. i.e. sexual
harassment; immorality, etc. ' '
1.4. AUTHORIZED CAUSES (ARTICLE 283, 284. 287)

.
1.4.1. INSTALLATION OF LABOR-SAVING DEVICES
1.4.1.1. It Is the employer's prerogative to use the most efficient

equipment and technology to remain competitive, streamline operations
or adopt new methods and methodology to remain competitive or
maximize profits.
1.4.1.2. Business losses or reverses, whether actual or imminent, are not
necessary to justify termination of employment due to installation of
labor-saving devices.
1.4.2. REDUNDANCY
1.4.2.1. Redundancy exists where the services of an employee are in
excess of what is reasonably demanded by the actual requirements of the
enterprises. The stress is on the POSITION and not on the PERSON
OCCUPYING" the position. The characterization of the service / position
of the employee as redundant is an exercise of business judgment by the
employer over which labor tribunals must generally recognized and
uphold.
1.4.2.2. Redundancy does not require the existence or proof of business

losses. It may be availed of by the employer as a cost-cutting measure and
to streamline operations.
1.4.3. RETRENCHMENT
1.4.3.1. Retrenchment or lay-off is reduction of personnel in response to

adverse economic losses. Retrenchment is the only authorized cause
requiring proof of actual or imminent losses for dismissal.
1.4.3.2. TO PREVENT LOSSES" means that retrenchment is resorted to

before the anticipated losses are actually sustained or realized. Not every
asserted possibility of loss is sufficient legal warrant for the reduction of
personnel. AUDITED FINANCIAL STATEMENTS must properly establish
the actual or imminent losses.
1.4.3.3. The standards for valid retrenchment are: the losses should be
substantial and not merely de minimis in extent; the substantial loss
apprehended must be reasonably imminent, with a certain degree of
urgency to reduce personnel; retrenchment is reasonably necessary and
likely to prevent the expected losses and the reduction of personnel must be
resorted to onty after the employer has taken prior or parallel measures to
forestall losses; and proof of actual or imminent losses.
1.4.4. CLOSURE OR CESSATION OF OPERATIONS

1.4.4.1. The employer may close down or cease his business operations
even if he is not suffering from financial losses or reverses. This move is
purely a business judgment because no one can be compelled to do
something against his will.
1.4.4.2. The prerogative to close down or cease operations extends to

closing or abolishing a department or section of the employer's
establishment or operations.
1.4.5. DISEASE: The conditions for dismissal under this provision are:
1.4.5.1. The employee is suffering from a disease that makes his continued
employment either prohibited by law or prejudicial to his health or to the
health of his co-workers.
1.4.5.2. CERTIFICATION by a competent PUBLIC HEALTH AUTHORITY
that the disease is of such nature or at such stage that it cannot be cured
within a period of SIX (6) MONTHS even with prior medical treatment.

1.4.5.3. Payment of SEPARATION 'PAY In the amount equivalent to one-
half (1/2) month salary for every year of service
1.4.6. RETIREMENT (RA 7641)
1.4.6.1. The Private Retirement Law applies to all employees in the private
sector regardless of their position, designation or status and irrespective
of the method by which their wages are paid except employees of retail,
service and agricultural establishments or operations employing not
more than TEN (10) employees.
1.4.6.2. The MINIMUM SERVICE REQUIREMENT is at least FIVE YEARS

including authorized absences and vacations, regular holidays and
mandatory fulfillment of a military or civic duty.
1.4.6.3. OPTIONAL RETIREMENT is at SIXTY (60) YEARS of age.

COMPULSORY RETIREMENT AGE is SIXTY-FIVE (65) YEARS.
1.4.6.4. The components of ONE-HALF MONTH SALARY are;

1.4.6.4.1. FIFTEEN (15) DAYS pay;
1.4.6.4.2. Cash Equivalent of FIVE (5) DAYS Service Incentive Leave
1.4.6.4.3. ONE-TWELFTH (1/12) of the 13th Month Pay

1.4.6.4.4. All other benefits under the employment contract or
voluntary employer policy/practice.
1.5. SUSPENSION OFOPERATIONS (ARTICLE 286)

1.5.1. BONA FIDE suspension of operations (partial or full) or the "temporary
lay-off" of employees for a period not exceeding SIX (6) MONTHS. The
suspension is bona fide if not resorted to for the purpose of defeating the
rights of the employees under the law, i.e. union-busting. The suspension may
be LESS but never MORE than six months.
1.5.2. The principle of "no work, no pay" applies during the suspension.
However, at the end of the six-month period, the employer must either re-
open and recall the employees or pay them the appropriate separation pay
for the "constructive dismissal". ,
1.5.3. In the event of stoppage or suspension of operations of the employer
because of the latter's fault, the employer shall be liable, for the payment of
the wages and benefits of the employees during the period.
1.6. DUE PROCESS
1.6.1. DISMISSAL FOR JUST CAUSE
1.6.1.1. TWO-NOTICE RULE (charges and grounds for dismissal)
1.6:1.2. ADMINISTRATIVE HEARING / INVESTIGATION
1.6.2. DISMISSAL FOR AUTHORIZED CAUSES

1.6.2.1. AT LEAST THIRTY (30) DAYS WRITTEN NOTICE TO BOTH THE
DOLE AND THE AFFECTED EMPLOYEES
1.7. PREVENTIVE SUSPENSION
1.7.1. The employer may place the employee under preventive suspension for
a period not exceeding THIRTY (30) DAYS pending resolution of the
administrative charges against him if the continued presence of the employee
In the company premises poses a serious and imminent threat to the life or
property of the employer or his co-employee.
1.7.2. Preventive Suspension is NOT a penalty but a preliminary step in an
administrative investigation. Subjecting an employee to preventive
suspension does not by itself signify that the employer has adjudged the
employee guilty of the charges against him.
1.7.3. As a rule, the employee under preventive suspension is not entitled to
wages under the principle of "no work, no pay" unless there is a company
policy/practice or CBA provision mandating payment of his wages.
1.8. CONSTRUCTIVE DISMSSAL / RESIGNATION
1.8.1. "FORCED RESIGNATION" or the act of "quitting" because continued

employment is rendered impossible, unreasonable or unlikely as in the case
of demotion in rank or diminution in pay or privileges and benefits, or
illegal/invalid transfers/reassignments. A "VOLUNTARY RESIGNATION" is not
constructive dismissal.
1.8.2. "FLOATING/RESERVE STATUS" is the temporary "off-detail' of security

guards pending posting or reassignment not to exceed SIX (6) MONTHS.
Thereafter, the employee is considered constructively dismissed if he is not
given a new assignment or posting.
1.8.3. Bona fide suspension of operations under Article 286 exceeding

six (6) months results in constructive dismissal.
1.9. RELIEFS (ARTICLE 279)

1.9.1. REINSTATEMENT
1.9.1.1. An employee who is unjustly dismissed shall be entitled bo

reinstatement without loss of seniority rights and other privileges.
Reinstatement is the restoration of the employee to his employment
status prior to dismissal.
1.9.1.2. "REINSTATEMENT PENDING APPEAL": In the event of an order of

reinstatement by the Labor Arbiter after a finding of illegal dismissal, the
employer, even during the pendency of an appeal, shall reinstate the
employee to his work under the same terms and conditions prevailing
prior to his dismissal (ACTUAL REINSTATEMENT); or reinstate him in the
payroll without requiring the employee to report: for work (PAYROLL
REINSTATEMENT). The OPTION to reinstate either actually or in the
payroll belongs to the employer. Upon receipt of the order to reinstate and
without need for the issuance of a writ of execution, the employer is
obliged to officially inform the Labor Arbiter and the employee the option
chosen.

1.9.2. BACKWAGES
1.9.2.1. The illegally dismissed employee is entitled to his FULL

BACKWAGES, inclusive of allowances and to his other benefits or their
monetary equivalent from the time his compensation was withheld from
him until his actual reinstatement.
1.9.2.2. The SALARY RATE prevailing at the time of dismissal shall be the
basis for the computation of backwages. In case of appeal, the employer is
required to put an APPEAL BOND equivalent to the monetary judgment to
answer for the award for backwages, other money claims, except damages
and attorney's fees.
1.9.3. SEPARATION PAY
1.9.3.1. Separation Pay may be ordered IN LIEU OF REINSTATEMENT at

the rate of ONE-MONTH PAY for every year of service using the salary
prevailing at the time the reinstatement is ordered, when such
reinstatement is no longer feasible for certain reasons, /.e. strained
relations, position no longer exists, length of time etc.
1.9.3.2. In termination of employment for authorized causes, the amount
of separation is ONE MONTH PAY or at least ONE (1) MONTH PAY for
every year of service in INSTALLATION OF LABOR SAVING DEVICES or
REDUNDANCY; ONE MONTH PAY or at least ONE-HALF MONTH (1/2) PAY
for every year of service In RETRENCHMENT TO PREVENT LOSSES and
CLOSURE AND OR CESSATION OF OPERATIONS.
1.9.3.3. The employer is not obliged to pay separation pay in case of

retrenchment or closure or cessation of operations due to losses.
1.9.4. DAMAGES: The legal basis for damages as a consequence of illegal

dismissal is the CIVIL CODE not the Labor Code. Damages may be awarded in
cases of dismissals attended by malice or bad faith, or when the acts of the
employer are oppressive to labor.
1.9.5. FINANCIAL ASSISTANCE; This is an equitable award given to an
employee who was valid I y dismissed for cause out of compassion taking
into account the employee's length of service, gravity of the offense and other
equitable considerations. However, the award is improper if the employee
was dismissed for serious misconduct, dishonesty, fraud or willful breach of
trust and confidence.
1.10. LIABILITY OF OFFICERS / DIRECTORS: As general rule, officers and

directors of a company are not answerable in their personal capacity for
backwages and other related monetary claims unless they acted in bad faith in
effecting the employees dismissal or if the corporation has been dissolved.
i) Jurisdiction, Reliefs and Remedies
1. NATIONAL LABOR RELATIONS COMMISSION (NLRC)

1.1. LABOR ARBITER

1.1.1. Unfair Labor Practice (ULP)
1.1.2. Termination Disputes
1.1.3. Legality of Strikes under Article 264
1.1.4. Money claims arising from employer-employee relationship domestic

help / house helpers:
1.1.4.1. Small claims less than P 5,000, accompanied by a claim for

reinstatement;
l.1.4.2. Claims over P 5,000.00, whether or not accompanied with a claim

for reinstatement;
1.1.4.3. Claims for damages;
1.2. Commission Proper
1.2.1. Appellate Jurisdiction
1.2.1.1. Decisions of the Labor Arbiters: Grounds:
1.2.1.1.1. prima facie evidence of abuse of discretion on the part of

the Labor Arbiter
1.2.1.1.2. decision was secured through fraud/coercion including
graft & corruption
1.2.1.1.3. decision was made purely on questions of law
1.2.1.1.4. serious errors in the findings of facts are raised which
would cause grave or irreparable damage/injury to the
appellant
1.2.1.2. Decisions of the Regional Director in small claims under Artide

129 of the Labor Code 1.2.2. Injunction in Strikes (Article 218[e]): Issue
TRO or Injunction to restrain the commission of prohibited acts under
Article 264 of th4e Labor Code during strikes, lock-outs and other
concerted activities
1.2.3. Certified Cases: Resolve all matters involved In the controversy or

dispute certified to the NLRC by the DOLE Secretary pursuant to Article
263[g] of the Labor Code.
1.2.4. Promulgate Internal Rules and Regulations and such other rules and
regulations as may be necessary to carry out the purposes of the Labor Code.
2. REGIONAL OFFICE/DIRECTOR OF DOLE
2.1. Visitorial / Enforcement Power (Article t28)
2.1.1. Conduct Routine/Complaint Inspection

2.1.2. Issue Compliance Orders for L^bor Standards Violation
2.1.3. Enforce Occupational Health and Safety Standards
2.2. Small Claims (Article 129); Power to resolve by summary proceedings small
claims not exceeding P 5,000.00 arising from employer-employee relationship/
including domestics/househelpers, when the worker/employee no longer prays
for reinstatement.
2.3. Registration/Cancellation Proceedings
2.4. Med-Arbiter
2.4.1. Certification Elections

2.4.2. Inter-union/Intra-union Disputes
3. NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)
3.1. Notice of Strike
3.2. Preventive Mediation

4. BUREAU OF LABOR RELATIONS (BLR)
4.1. Registration/Cancellation Proceedings filed directly with It. In this case, the
BLR's decision is appealable to the DOLE Secretary.
4.2. Appellate Jurisdiction over decisions of the DOLE Regional Office in
registration/cancellation proceedings. The decision of the BLR in the exercise of
its appellate jurisdiction is no longer appealable to the DOLE Secretary, but to the
Court of Appeals by Certiorari proceedings.
5. PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION (POEA)
5.1. Suspension/Cancellation of License

5.2. Civil aspect of Illegal Recruitment; the criminal aspect is prosecuted before
the regular courts.
6. VOLUNTARY ARBITRATION
6.1. Grievance Machinery
6.2. Voluntary Arbitrator
7. EMPLOYEES COMPENSATION PROGRAM
7.1. STREET PERIL PRINCIPLE: Also known as the "going and coming rule";
injuries suffered by an employee on his way to work or going home are generally
not compensable under workmen's compensation, in the absence of special
circumstances, subject to the following exceptions:
7.1.1. Direct Premises Rule: Injuries are sustained while still within the work
premises;
7.1.2. Proximity Rule: Injuries are sustained when the employee is about to
enter or leave the work premises through the exclusive or usual means of
Ingress/egress;
7.1.3. Special Errand Rule: Injuries sustained while the employee is on special
errand;
7.1.4. Extra-Premises Rule: Injuries are sustained on board the means of
transportation supplied by the employer as an incident to employment;
7.2. BUNKHOUSE PRINCIPLE: When the employee is required to stay in the

premises or quarters supplied by the employer, injuries sustained by the
employee therein are compensable regardless of the time the injuries were
sustained.
7.3. WORK-CONNECTED PRINCIPLE: Injuries sustained by an innocent or non-

culpable employee in course of an assault by a co-employee or a third, person are
compensable when there is reasonable connection between the injury and a
cause set in motion by the nature of employment/ or some other condition,
obligation or incident therein and not by some other agency.
7.4. CONSEQUENTIAL INJURIES RULE; The natural/logical injuries arising from

a previous compensable injury are likewise compensable.
7.5. PERSONAL DOCTRINE; Injuries sustained within the work premises during
lunch/meal break is compensable as having arisen in the course of employment
even if technically, the interval is outside regular work hours because the
employee is not entitled to wages at this time and he is not under the control of
the employer as he can use said period of time at his pleasure.
7.6. INCREASED RISK THEORY; a disease is compensable if it is work-connecte'd

and the working conditions to which the employee is exposed increase the risk of
contracting the same.
7.7. NOTORIOUS NEGLIGENCE RULE: Injuries/death sustained by the employee

due to the employee's deliberate act of disregarding his own personal safety are
not compensable.
8. MISCELLANEOUS CONCERNS
8.1. TERMINATION DISPUTES remain under the original and exclusive

jurisdiction of the Labor Arbiter. Termination disputes need not go through the
Grievance Machinery or Voluntary Arbitration unless so desired by the parties.
8.2. PRESCRIPTIVE PERIODS:
8.2.1. Illegal dismissal: four (4) years

8.2.2. Money Claims: three (3) years
8.2.3. Unfair Labor Practice: (One (1) year
8.2.4. Formal Protest in Certification Elections Five (5) days from close of
election proceedings, only on grounds raised during the balloting.
8.2.5. Election Protest (Union Officers): five (5) days from dose of election
proceedings
8.3. TECHNICAL RULES OF EVIDENCE/PROCEDURE are generally not binding in
labor law determinations. The underlying principle is the ascertainment of truth
behind the controversy. Summary proceedings are desired. For good cause
shown, evidence may be presented at any stage of the proceeding, even on
appeal/MR in the interest of justice.
8.4. SUBMISSION OF POSITION PAPERS is generally sufficient for. the

requirement of due process. Full-blown/adversarial proceedings are not
essential for the resolution of the controversy before labor tribunals.
8.5. EXHAUSTION OF ADMINISTRATIVE REMEDIES: Appeal/Review of

decisions of the DOLE Secretary, NLRC, BLR, VA is generally to the Court of
Appeals by Certiorari proceedings under Rule 65. It is a condition precedent that
the appropriate MOTION FOR RECONSIDERATION is first filed before judicial
resort. The decision of the Court of Appeals may be raised to the Supreme. Court
on Appeal by Certiorari under Rule 45.
8.6. APPEAL BOND: Normally, an Appeal Bond equivalent to the amount of the
monetary judgment is required for appeals to the next level of administrative
determination/adjudication. In the NLRC, it is required that there shall be a
certification from the surety, the appellant and counsel that the Appeal Bond is
genuine and shall remain valid and subsisting until the final


Labor Relations Course Outline-3

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Labor Relations Course Outline-3

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UNIVERSITY OF SAN AGUSTIN

Course Title: Labor Relations

I. COURSE DESCRIPTION AND OBJECTIVES

In this course we will examine, among others:

- The identification of the bargaining unit and its members;

- A full understanding of the bargaining unit;

- A full understanding of the processes involved in collective bargaining and

Our class will employ a variety of teaching methods:

II. COURSE REQUIREMENTS AND GRADING SYSTEM

(1) Weekly graded recitations;

Basis for Grading

Class Performance 10%

III. COURSE POLICIES

(2) Be at all class sessions on time.

(7) THINK and ask questions.

(8) Keep an open mind, open ears, and an open heart.

(9) Respect the opinion of others.

Labor Relations Law, SY 2017-2018, Second Semester 2

I. Fundamental Principles and Policies

II. Employer-Employee Relationship

1. Existence of Employer-Employee Relationship

2. Status of Employment (Art. 280)

3. Labor Relations Law

a) Coverage of the right to self-organization: Art. 252. -256;

1. QUALIFIED TO FORM, ASSIST, JOIN UNIONS

1.1. RANK-AND-FILE employees of Commercial, industrial, agricultural

2.1. MANAGERIAL EMPLOYEES are ineligible to joint, assist or form any

b) LABOR ORGANIZATIONS: Art. 239-248

c) RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS, Article 250

1. Right to represent members for Collective Bargaining

d) RIGHTS AND CONDITIONS OF MEMBERSHIP, Article 249

1. No arbitrary or excessive fees, fines, etc,

1. Recording of income and expenditures

1. Direct election of officers every FIVE (5) years

e) UNFAIR LABOR PRACTICE (ULP) Art. 257-259

2. ULP COMITTED BY EMPLOYER

3. ULP COMMITTED BY UNION

a. Restrain and coerce employees to organize

4. UNION SECURITY ARRANGEMENTS

a. CLOSED SHOP: only members OF THE BARGAINING AGENT can be hired

Labor Relations Law, SY 2017-2018, Second Semester 5

A group of employees of a gjven employer comprised of all or less than of the

1. SUBSTANTIAL MUTUAL INTERESTS: similarity of employment status, duties and

1. Single-enterprise bargaining involves negotiation between one certified labor

REQUISITES OF COLLECTIVE BARGAINING

DETERMINATION OF MAJORITY STATUS

1. VOLUNTARY RECOGNITION: In UNORGANIZED ESTABLISHMENTS, when

2. CERTIFICATION, RUN-OFF, CONSENT ELECTION: In ORGANIZED

CONCEPT: Non-adversary fact-finding process/investigation to determine

REQUISITES FOR PETITIONS

In ORGANIZED ESTABLISHMENTS: Verified petition questioning the majority

In UNORGANIZED ESTABLISHMENTS: A certification election shall be

RUN-OFF ELECTION: when there are three or more choices in the

CONSENT ELECTION: By agreement between two or more contending

COLLECTIVE BARGAINING PROPER

CONCEPT: The duty to bargain collectively involves:

1. The performance of the mutual obligation TO MEET AND CONVENE promptly,

COMMON STIPULATIONS AND CLAUSES IN A CBA

Collective Bargaining Process

Labor Relations Law, SY 2017-2018, Second Semester 7

WILEY DOCTRINE: loss of personality by a legal/valid merger or consolidation of a

ABSORPTION DOCTRINE: accretion doctrine applies when there is absorption and

AUTOMATIC RENEWAL CLAUSE

Labor Relations Law, SY 2017-2018, Second Semester 8