Anda di halaman 1dari 10

LABOR LAW FUNDAMENTALS

REMINDERS 1. What are the kinds of illegal recruitment?


Explain.

1. The following material does not predict bar
questions. It is meant to orient and prepare the Answer: Illegal recruitment is committed in one of two
mind to approach questions in Labor Law, and to ways. R.A. No. 8042 as amended by R.A. No. 10022
thus “think labor law.” provides that illegal recruitment may be committed by a
person who commits any act of canvassing, enlisting,
2. Do not base your answers on logic, political contracting, transporting, utilizing, hiring, or procuring
beliefs or sense of morality. All answers must be workers and includes referring, contract services,
based on a LEGAL PRINCIPLE. Cite a promising or advertising for employment abroad,
constitutional provision (do not quote the whether for profit or not, when undertaken by non-
provision, just state the principle), a statutory licensee or non-holder of authority. Illegal recruitment is
provision, a legal doctrine, or jurisprudence (no also committed by a person who commits any of the
need to cite the case title). prohibited acts under Section 6 of R.A. No. 8042
whether such person is a non-licensee, non-holder,
3. Do not use civil law, criminal law or remedial law licensee or holder of authority. (Section 6, RA No. 8042)
concepts in answering Labor Law questions.
Stick to the Labor Code, labor-related laws, and Illegal recruitment may also be committed by syndicate
principles enumerated in the Bar Syllabus. or in large scale. Illegal recruitment is deemed
committed by a syndicate if carried out by a group of
4. Think long, write short. Please go straight to the three (3) or more persons conspiring or confederating
point and DO NOT use up an entire page for an with one another. It is deemed committed in large scale
answer. TRY YOUR BEST TO LIMIT THE if committed against three (3) or more persons
ANSWER TO NO MORE THAN 3-4 individually or as a group. Illegal recruitment when
SENTENCES. committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage.
5. Make sure the answer is COMPLETE. It is (Sections 2, RA No. 10022)
complete if it has a LEGAL PRINCIPLE AND IT
IS APPLIED TO THE FACTS. To get full points, 2. The Secretary of Labor and Employment may
the answer must be SHORT and COMPLETE. assume jurisdiction over a labor dispute
causing or likely to cause a strike or lockout.
6. Take time to choose the proper words to use in Explain the grounds for the exercise of this
your answer. In the suggested answers below, power and its effects.

the magic words are in bold. Remember that the
examiner is looking for certain words or phrases. Answer: When, in his opinion, there exists a labor
dispute causing or likely to cause a strike or lockout in
YOU WILL PASS THE BAR. TIWALA. an industry indispensable to the national interest, the
Secretary of Labor and Employment may assume
jurisdiction over the dispute and decide it or certify the
same to the Commission for compulsory arbitration.
Such assumption or certification shall have the effect of
automatically enjoining the intended or impending strike
or lockout as specified in the assumption or certification
order. If one has already taken place at the time of
assumption 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 lockout. (Art.
278 (g))

Under the present rules, the following are recognized as


industries indispensable to the national interest:
a. hospital sector
b. electric power industry
c. water supply services, excluding small water
supply services such as bottling and refilling
stations
d. air traffic control and

e. such other industries as maybe recommended
by the National Tripartite Industrial Peace
Council (TIPC) (D.O. No. 40-H-13).

1
continued unless restrained, but no injunction
3. Who are considered beneficiaries under the or temporary restraining order shall be issued
SSS?
 on account of any threat, prohibited or unlawful
act, except against the person or persons,
Answer: Under the SSS, the dependent spouse until he association or organization making the threat or
or she remarries, the dependent legitimate, legitimated committing the prohibited or unlawful act or
or legally adopted, and illegitimate children, who shall actually authorizing or ratifying the same after
be the primary beneficiaries of the member. The actual knowledge thereof;

dependent illegitimate children shall be entitled to fifty
percent (50%) of the share of the legitimate, legitimated b. That substantial and irreparable injury to
or legally adopted children. In the absence of the complainant’s property will follow;

dependent legitimate, legitimated children of the
member, his/her dependent illegitimate children shall be c. That as to each item of relief to be granted,
entitled to one hundred percent (100%) of the benefits. greater injury will be inflicted upon complainant
In their absence, the dependent parents who shall be by the denial of relief than will be inflicted upon
the secondary beneficiaries of the member. In the
defendants by the granting of relief;
 

absence of all the foregoing, any other person
designated by the member as his/her secondary
beneficiary. (Sec. 8(k), R.A. No. 8282) d. That complainant has no adequate remedy at
law; and
 

4. Current law requires all employers to pay their
rank and file employees a 13th month pay on or e. That the public officers charged with the duty to
before December 24 of every year. However, protect complainant’s property are unable or
employers already paying their employees a unwilling to furnish adequate protection.

13th month pay or its equivalent are not required
to pay 13th month pay. What does “its The prohibited activities in relation to strikes and
equivalent” mean here?
 lockouts are provided in Article 274. These are the
following:
Answer: Under applicable rules, the term "its
equivalent" shall include Christmas bonus, mid-year a. No labor organization or employer shall declare
bonus, cash bonuses and other payments amounting to a strike or lockout without first having bargained
not less than 1/12 of the basic salary but shall not collectively in accordance with Title VII of this
include cash and stock dividends, cost of living Book or without first having filed the notice
allowances and all other allowances regularly enjoyed required in the preceding Article or without the
by the employee, as well as non-monetary benefits. necessary strike or lockout vote first having
Where an employer pays less than required 1/12th of been obtained and reported to the Ministry.

the employees basic salary, the employer shall pay the
difference. (Revised Guidelines on the Implementation No strike or lockout shall be declared after
of the 13th Month Pay Law) assumption of jurisdiction by the President or
the Minister or after certification or submission
5. C recalls reading that “(n)o temporary or of the dispute to compulsory or voluntary
permanent injunction or restraining order in any arbitration or during the pendency of cases
case involving or growing out of labor disputes involving the same grounds for the strike or
shall be issued by any court or other entity” but lockout.
forgets the exceptions. Help C recall the
exceptions.
 Any worker whose employment has been
terminated as a consequence of any unlawful
Answer: Under Article 225 (e), the Commission level of lockout shall be entitled to reinstatement with
the NLRC has the power and authority to “enjoin or full backwages. Any union officer who
restrain any actual or threatened commission of any or knowingly participates in an illegal strike and
all prohibited or unlawful acts or to require the any worker or union officer who knowingly
performance of a particular act in any labor dispute participates in the commission of illegal acts
which, if not restrained or performed forthwith, may during a strike may be declared to have lost his
cause grave or irreparable damage to any party or employment status: Provided, That mere
render ineffectual any decision in favor of such party.” A participation of a worker in a lawful strike shall
temporary or permanent injunction in this case may be not constitute sufficient ground for termination
issued only after hearing the testimony of witnesses, of his employment, even if a replacement had
with opportunity for cross-examination, in support of the been hired by the employer during such lawful
allegations of a complaint made under oath, and strike.
testimony in opposition thereto, if offered, and only after
a finding of fact by the Commission, to the effect: b. No person shall obstruct, impede, or interfere
with, by force, violence, coercion, threats or
a. That prohibited or unlawful acts have been intimidation, any peaceful picketing by
threatened and will be committed and will be employees during any labor controversy or in
2
the exercise of the right to self-organization or equivalent to at least one (1) month salary or to one-half
collective bargaining, or shall aid or abet such (1/2) month salary for every year of service, whichever
obstruction or interference.
 is greater, a fraction of at least six (6) months being
considered as one (1) whole year. (Article 299 and
c. No employer shall use or employ any strike- Section 8, Title I, Book 6 of the Rules Implementing the
breaker, nor shall any person be employed as Labor Code)
a strike-breaker.

8. Under the Labor Code, what is “wage distortion”
d. No public official or employee, including officers and how should it be corrected?

and personnel of the New Armed Forces of the
Philippines or the Integrated National Police, or Answer: A wage distortion shall mean a situation where
armed person, shall bring in, introduce or escort an increase in prescribed wage rates results in the
in any manner, any individual who seeks to elimination or severe contraction of intentional
replace strikers in entering or leaving the quantitative differences in wage or salary rates between
premises of a strike area, or work in place of the and among employee groups in an establishment as to
strikers. The police force shall keep out of the effectively obliterate the distinctions embodied in such
picket lines unless actual violence or other wage structure based on skills, length of service, or
criminal acts occur therein: Provided, That other logical bases of differentiation.
nothing herein shall be interpreted to prevent
any public officer from taking any measure Where the application of any prescribed wage increase
necessary to maintain peace and order, protect by virtue of a law or wage order issued by any Regional
life and property, and/or enforce the law and Board results in distortions of the wage structure within
legal order. 
 an establishment, the employer and the union shall
negotiate to correct the distortions. Any dispute arising
from wage distortions shall be resolved through the
e. No person engaged in picketing shall commit grievance procedure under their collective bargaining
any act of violence, coercion or intimidation or agreement and, if it remains unresolved, through
obstruct the free ingress to or egress from the voluntary arbitration. Unless otherwise agreed by the
employer’s premises for lawful purposes, or parties in writing, such dispute shall be decided by the
obstruct public thoroughfares. 
 voluntary arbitrators within ten (10) calendar days from
the time said dispute was referred to voluntary
6. Under the Labor Code, is it possible for an arbitration.
employer to suspend operations without
terminating its workers?
 In cases where there are no collective agreements or
recognized labor unions, the employers and workers
Answer: Yes. The bona-fide suspension of the shall endeavor to correct such distortions. Any dispute
operation of a business or undertaking for a period not arising therefrom shall be settled through the National
exceeding six (6) months, or the fulfillment by the Conciliation and Mediation Board and, if it remains
employee of a military or civic duty shall not terminate unresolved after ten (10) calendar days of conciliation,
employment. In all such cases, the employer shall shall be referred to the appropriate branch of the
reinstate the employee to his former position without National Labor Relations Commission (NLRC). It shall
loss of seniority rights if he indicates his desire to be mandatory for the NLRC to conduct continuous
resume his work not later than one (1) month from the hearings and decide the dispute within twenty (20)
resumption of operations of his employer or from his calendar days from the time said dispute is submitted
relief from the military or civic duty. (Article 301) for compulsory arbitration. (Article 124)

7. The Human Resources Manager asks you if 9. F discovered that his employer, despite having
she can terminate the employment of an deducted amounts from his salaries purporting
employee due to illness and if so, what legal to be SSS contributions, has not been remitting
requirements should she fulfill. How will you any amount to the SSS. F asks you if his
respond?
 employer faces any liability. 


Answer: Yes, the Labor Code allows disease to be a Answer: Yes, under the law, should the employer fail to
ground for termination. An employer may terminate the remit any contribution due prior to the date of
services of an employee who has been found to be contingency, resulting in a reduction of benefits, the
suffering from any disease and whose continued employer shall pay to the SSS damages equivalent to
employment is prohibited by law or is prejudicial to his the difference between the amount of benefit to which
health as well as to the health of his co-employees. The the employee member or his beneficiary is entitled had
employer shall not terminate his employment unless the proper contributions been remitted to the SSS and
there is a certification by competent public health the amount payable on the basis of contributions
authority that the disease is of such nature of at such a actually remitted: Provided, That if the employee
stage that it cannot be cured within a period of six (6) member or his beneficiary is entitled to pension
months even with proper medical treatment. The benefits, damages shall be equivalent to the
employee to be terminated must be paid separation pay accumulated pension due as of the date of settlement
3
of the claim or to the five (5) years' pension, whichever upon in the Collective Bargaining Agreement, which
is higher, including dependents' pension. In addition, the shall act with the same force and effect as if the
employer shall also be liable for the corresponding Arbitrator or panel of Arbitrators has been selected by
unremitted contributions and penalties thereon. (Sec. the parties. (Article 273)
24 R.A. No. 8282)
12. In organized establishments, when a petition for
Any employer who, after deducting the monthly certification election is filed within the 60 day
contributions or loan amortizations from his employee's freedom period (the 60 day period before the
compensation, fails to remit the said deduction to the expiration of the CBA, the written consent of at
SSS within thirty (30) days from the date they became least 25% of all employees in the bargaining
due, shall be presumed to have misappropriated such unit authorizes the Med-Arbiter to automatically
contributions or loan amortizations and shall suffer the order an election by secret ballot. What is
penalties provided in Article 315 of the Revised Penal needed in case the establishment is
Code. (Sec. 28 (h) R.A. No. 8282). unorganized?


10. B is a yaya and is considered a kasambahay, Answer: In any establishment where there is no
being engaged in domestic work within an certified bargaining agent, a certification election shall
employment relationship. She was terminated automatically be conducted by the Med-Arbiter upon the
unjustly and before the expiration of the term of filing of a petition by any legitimate labor organization.
her contract. Where should her case be This includes a national union or federation which has
resolved and what reliefs are available to her? already issued a charter certificate to its local/chapter
participating in the certification election or a
Answer: Under the law, all labor-related disputes shall local/chapter which has been issued a charter certificate
be elevated to the DOLE Regional Office having by the national union or federation. In cases where the
jurisdiction over the workplace of the kasambahay petition was filed by a national union or federation, it
without prejudice to the filing of a civil or criminal action shall not be required to disclose the names of the local
in appropriate cases. The DOLE Regional Office shall chapter's officers and members.
exhaust all conciliation and mediation efforts before a
decision shall be rendered. Ordinary crimes or offenses 13. Under Article 128 of the Labor Code, the duly
committed under the Revised Penal Code and other authorized representative of the Secretary of
special penal laws by either party shall be filed with the Labor and Employment shall have the power to
regular courts. (Sec. 37, R.A. No. 10361) issue compliance orders to give effect to the
labor standards provisions of the Labor Code
When the domestic worker is unjustly dismissed, the and other labor legislation based on the findings
domestic worker shall be paid the compensation of labor employment and enforcement officers
already earned plus the equivalent of fifteen (15) days or industrial safety engineers made in the
work by way of indemnity. (Sec. 32, R.A. No. 10361) course of inspection. Where may an appeal be
filed with respect to this order?

11. Under the law, the Voluntary Arbitrator or panel
of Voluntary Arbitrators shall have original and Answer: An order issued by the duly authorized
exclusive jurisdiction to hear and decide all representative of the Secretary of Labor and
unresolved grievances arising from the Employment under Article 128 of the Labor Code may
interpretation or implementation of the be appealed to the Secretary of Labor and Employment.
Collective Bargaining Agreement and those In case said order involves a monetary award, an
arising from the interpretation or enforcement of appeal by the employer may be perfected only upon the
company personnel policies. They may also posting of a cash or surety bond issued by a reputable
hear and decide all other labor disputes bonding company duly accredited by the Secretary of
including unfair labor practices and bargaining Labor and Employment in the amount equivalent to the
deadlocks if the parties agree. How is the monetary award in the order appealed from. (Article
Voluntary Arbitrator or panel of Voluntary 128)
Arbitrators chosen?

14. Under Article 129 of the Labor Code, the
Answer: Parties to a Collective Bargaining Agreement Regional Director of the Department of Labor
may name and designate in advance a Voluntary and Employment or any duly authorized
Arbitrator or panel of Voluntary Arbitrators, or include in hearing officer of the Department is
the agreement a procedure for the selection of such empowered, through summary proceeding and
Voluntary Arbitrator or panel of Voluntary Arbitrators, after due notice, to hear and decide any matter
preferably from the listing of qualified Voluntary involving the recovery of wages and other
Arbitrators duly accredited by the National Conciliation monetary claims and benefits, including legal
and Mediation Board (NCMB). In case the parties fail to interest, owing to an employee, arising from
select a Voluntary Arbitrator or panel of Voluntary employer-employee relations for as long as (1)
Arbitrators, the NCMB shall designate the Voluntary the complaint does not include a claim for
Arbitrator or panel of Voluntary Arbitrators, as may be reinstatement and (2) the aggregate money
necessary, pursuant to the selection procedure agreed claims of each employee does not exceed Five
4
thousand pesos (P5,000.00). Where is an benefits would be paid. They assured P that he
appeal from the decision of the Regional would eventually be rehired. In connection with
Director of the Department of Labor and this, P wrote three letters to management: the
Employment or duly authorized hearing officer first letter requested an employment extension,
filed? What grounds should the appeal be the second was an unconditional resignation
based on?
 letter, and the third was a proposal as to how
his benefits are to be paid. Thereafter, P
Answer: Any decision or resolution of the Regional reluctantly resigned and issued an
Director or hearing officer under Article 129 of the Labor unconditional resignation letter. Later on,
Code may be appealed, within five (5) calendar days despite repeated attempts to claim his
from receipt of a copy of said decision or resolution, to severance pay, the banks did not heed the
the National Labor Relations Commission. (Article 129) requests.


The appeal may be based on any of the following Is P entitled to severance pay?
grounds:
Answer: No, P is not entitled to severance pay.
a. If there is prima facie evidence of abuse of Severance pay may be granted to an illegally dismissed
discretion on the part of the Labor Arbiter;
 employee in lieu of reinstatement. In this case, P
resigned voluntarily. In order to prove that resignation is
b. If the decision, order or award was secured voluntary, "the acts of the employee before and after the
through fraud or coercion, including graft and alleged resignation must be considered in determining
corruption;
 whether he or she, in fact, intended to sever his or her
employment. P issued 3 letters and his second letter is
an unconditional resignation letter indicating that he was
c. If made purely on questions of law; and

fully aware of the consequences of his voluntary
resignation from the service. He is also no ordinary
d. If serious errors in the findings of facts are employee given his annual salary. P should have made
raised which would cause grave or irreparable sure that the verbal agreement regarding the severance
damage or injury to the appellant. (Article 129 pay was embodied in a written instrument before
and Article 229).
 resigning. Hence, since P was not illegally terminated,
he is not entitled to severance pay. (Reference: Pascua
15. Under Article 82 of the Labor Code, the Title on v. Bank Wise)
Working Conditions and Rest Periods applies to
employees in all establishments and 17. U and B Company formally executed a CBA
undertakings whether for profit or not, but not to which was effective from Nov. 2007 to Oct.
(1) government employees, (2) managerial 2012. In 2009, B Company hired L and C and
employees, (3) field personnel, (4) members of were given higher salaries by Php 1,500.00
the family of the employer who are dependent despite being probationary employees. Later,
on him for support, (5) domestic helpers, (6) U’s President sent a letter to B Company
persons in the personal service of another, and expressing that the CBA was not being
(7) workers who are paid by results as implemented properly pursuant to the
determined by the Secretary of Labor in guidelines and that, if not addressed, might
appropriate regulations. However, there are result in a salary distortion among union
benefits which the Implementing Rules have members. Union alleges that as a
made available only to retail and service consequence, wages of said probationary
establishments with a certain number of employees became equal with the wage rates
workers. What are these benefits and what is of the regular employees, thereby obliterating
the rule set by the Rules? the wage rates distinction based on merit, skills
and length of service. 

Answer: (a) Night shift differential is not available to
employees of retail and service establishments a. Did B Company violate the CBA when it granted
regularly employing not more than 5 workers. (Section the wage increase to probationary employees?
1, Rule II, Book Three) Explain.

(b) Holiday pay and Service Incentive Leave are not
b. Is there a wage distortion? Explain.

available to employees of retail and service
establishments regularly employing not more than 10
workers. (Section 1 (b), Rule IV, Book Three Answer:
and Section 1 (g), Rule V, Book Three) a. No. The B Company did not violate the CBA since
the increase in the wages of the probationary
16. P was an employee V Bank. A merger was employees was due to the increase in the hiring
concluded between V Bank and S Bank. rates at the time these employees were hired in
Management of both banks informed P, who 2009. The setting and implementation of such
earns 2 million pesos a year, that he should various engagement rates were purely an exercise
resign and that his severance pay and other of the B Company’s business prerogative in order
5
to attract or lure the best possible applicants in the against CCC for his reinstatement, and the
market and which the Court will not interfere with, payment of full back wages, accrued salaries
absent any showing that it was exercised in bad and allowances less the amount that were
faith.
 already released to him by the Labor Arbiter
pending appeal. CCC opposed the motion and
b. No, there is no wage distortion. In one case, the argued that its execution of the Asset Purchase
Court held that the compulsory mandate under Agreement (APA) with TTT in 2007 was a
Article 124 to correct "wage distortion" cannot be supervening event that made it impossible to
applied to voluntary and unilateral increases by the reinstate Z to his former position. In the
employer in fixing hiring rates which is inherently a execution proceedings, the NLRC ruled that the
business judgment prerogative. The apparent reinstatement was indeed rendered impossible
increase in L and C’s salaries as compared to the because of the APA, but the backwages should
other company workers who also have the same be computed only until the finality of the SC
salary/pay grade with them does not result in a Resolution in the Illegal Dismissal case on Mar.
wage distortion because they were hired in 2009, 30, 2012. Z went to the Court of Appeals, which
when the hiring rates were relatively higher as modified the NLRC decision by stating that the
compared to those of the previous years. backwages should be computed from the date
(Reference: Phil. Geothermal, Inc. Employees of illegal dismissal until the finality of its
Union V. Chevron Geothermal Phils. Holdings, decision, and separation pay computed from
Inc.) the date of employment until finality of its
decision. CCC argues that it should only be
18. T was hired by PAL as a flight engineer. Union liable for back wages and separation pay only
members went on strike, and when T and other until time the supervening event and legal
striking pilots returned to work, PAL refused to impossibility to reinstate arose that made Z’s
readmit them. They filed a complaint for illegal position non-existent as of 2007.
lockout against PAL. Members and officers of
the Union who participated in the strike in How should Z’s backwages and separation pay
defiance of return-to-work order by the be computed?
Secretary of Labor were declared to have lost
their employment status by the court. Although Answer: As held by the Supreme Court, when there is
T was hired again by PAL, it was made clear to a supervening event that renders reinstatement
him that he was rehired on the condition that his impossible, backwages is computed from the time of
employment would be as a new hire. He dismissal until the finality of the decision ordering
resigned after less than a year. He informed separation pay. When separation pay is ordered after
PAL of his intention of collecting his separation the finality of the decision ordering the reinstatement by
and/or retirement benefits under the CBA. The reason of a supervening event that makes the award of
Retirement Plan requires at least five years of reinstatement no longer possible, as in the case,
continuous service with PAL to be entitled to the backwages is computed from the time of dismissal until
resignation benefit. PAL refused to pay T the finality of the decision ordering separation pay.
separation and/or retirement benefits as stated Further, the employment relationship is terminated only
in the CBA.
 upon the finality of the decision ordering the separation
pay. The finality of the decision cuts-off the employment
Is T entitled to retirement benefits under the relationship and represents the final settlement of the
CBA, and the equity in the retirement fund rights and obligations of the parties against each other.
under the PAL Pilot’s Retirement Benefit Plan? (Reference: Consolidated Distillers of the Far East, Inc.
v. Zaragoza)
Answer: No, T is not entitled to any retirement benefits.
Retirement is the result of a bilateral act of the parties, 20. A is the widow of D, a Filipino seafarer who
a voluntary agreement between the employer and the signed a contract of employment with Starcrest.
employee whereby the latter, after reaching a certain The deceased was employed as chief cook for
age, agrees to sever his or her employment. In this 6 months on board a vessel. During work, he
case, T forfeited his benefits when his employment was experienced constipation and abdominal pains.
terminated for just cause. An employee who knowingly He was taken to a German hospital and was
defies a return-to-work order issued by the Secretary of found with blood in his stool, swollen intestinal
Labor is deemed to have committed an illegal act which walls and lower abdomen. He was then
is a just cause to dismiss the employee. As a new hire, repatriated.

he did not complete the required number of years of
service in order to avail the benefits of the Retirement When he was admitted to St. Luke’s hospital,
Benefits Plan. (Reference: Tolentino v. PAL) he was diagnosed with stage 4 colon cancer.
He was discharged from the hospital but
19. After winning a case for an illegal dismissal underwent chemotherapy one month later
case decided by the Supreme Court and finality under the care of the company designated
of the resolution on March 30, 2012, Z moved physician, who issued a Progress Report where
for the issuance of an alias writ of execution he reported that the illness was deemed not
6
work related. On the basis of the foregoing injury from which PAL seeks compensation have
report, D's chemotherapy treatments were “reasonable causal connection” with the alleged acts of
discontinued. Further, Cancer of the Large unfair labor practice, a claim provided for in Article 217
Bowel (Colon), is not among the occupational of the Labor Code.
diseases listed in the POEA-SEC.
However, the Labor Arbiter was already divested of its
D then filed a complaint with the Labor Arbiter jurisdiction to entertain PAL's claim for damages as
for disability benefits. The LA decided against such issue was deemed included in the issue of legality
D. Pending appeal, D died and he was of strike of which the Secretary of Labor had assumed
substituted by his heirs. jurisdiction, pursuant to the rule against splitting of
jurisdiction. Unfortunately, for PAL's failure to raise the
Is the illness of D work-related? claim during the pendency of the illegal strike case
before the Secretary of Labor, the same is deemed
Answer: No. Work-related illnesses are determined by waived. (Reference: PAL v. Airline Pilots Association of
the following rules: the Philippines).

First, there is work relation if the illness leads to 22. This case involves 3 different illegal dismissal
disability or death as a result of an occupational disease complaints by A, B and C against Better Health
listed under Section 32-A of the POEA- SEC with the Co. The Labor Arbiter found that all 3 were
conditions set therein satisfied; illegally dismissed. The National Labor
Relations Commission affirmed. The Court of
Second, for illnesses not mentioned under Section 32, Appeals reversed holding that there is no
the POEA-SEC creates a disputable presumption in employer-employee relationship between A
favor of the seafarer that these illnesses are work- and EEE Company, and that his complaint
related, and the seafarer must still prove by substantial should have been filed before the Regional Trial
evidence that his/her work conditions caused or, at Court and that EEE Company was justified in
least, increased the risk of contracting the disease. dismissing B and C.


In this case, the afflicted illness of D is not among the A, B and C allege that the Court of Appeals
occupational diseases listed in the POEA-SEC, hence, should have dismissed outright the appeal of
he or his heirs cannot be entitled to disability benefits. EEE Company since the latter failed to post a
Since there is failure on the part of D or his heirs to genuine appeal bond before the NLRC. The
present substantial evidence that would prove Sheriff enforcing the judgement award against
reasonable causation, or at the very least, aggravation the bond was informed that the appeal bond
of D’s work while aboard the vessel, the claim for procured by EEE Company did not appear in
disability benefits must be denied (reference: Seacrest the records of FFF Insurance and GGG
Maritime Management Inc. v. Roderos). Insurance.

21. DOLE declared a strike held by ALPAP as EEE Company, on the other hand, contend that
illegal and declared the loss of employment of there was substantial compliance and that the
its officers. The Court of Appeals affirmed the issue had already been considered moot since
Secretary of Labor resolution and the decision the three were able to garnish and collect the
reached finality.
 amounts allegedly due them.

Eight (8) months after, PAL filed with the Labor The NLRC certified that EEE Company filed a
Arbiter a complaint for damages against ALPAP security deposit in the amount of P6,512,524.84
and its officers and members. It alleged that the under Security Bank check no. 0000045245,72
striking pilots abandoned three (3) PAL aircraft. showing that the premium for the appeal bond
Because of the deliberate and malicious was duly paid and that there was willingness to
abandonment of the said flights, its passengers post it. Also, documents proving that Alpha
were stranded, and rendered PAL liable for Insurance was a legitimate and accredited
violation of its contract of carriage. bonding company was presented by EEE
Company.
The Labor Arbiter, NLRC and CA all held that
PAL’s claim for damages lies with the regular Did EEE Company fail to perfect its appeal with
courts. the CA when it was discovered that their appeal
bond was a forged bond? Explain.
Can PAL claim for damages against ALPAP?
Answer: Yes, EEE Company perfected its appeal.
Answer: No, PAL can no longer claim for damages
against ALPAP. Appeal is not a matter of right. The perfection of an
appeal is jurisdictional. In labor cases, an appeal by an
Labor tribunals have jurisdiction over actions for employer is perfected only by filing a bond equivalent to
damages arising from a labor strike, since the loss and the monetary award. The purpose of requiring an
7
appeal bond is "to guarantee the payment of valid and rank and/or a diminution in pay; or when a clear
legal claims against the employer." It is a measure of discrimination, insensibility or disdain by an employer
financial security granted to an illegally dismissed becomes unbearable to the employee. An employee is
employee since the resolution of the employer's appeal considered to be constructively dismissed from service
may take an indeterminable amount of time. if an act of clear discrimination, insensibility or disdain
by an employer has become so unbearable to the
As decided in other cases, while the procedural rules employee as to leave him or her with no option but to
strictly require the employer to submit a genuine bond, forego with his or her continued employment.
an appeal could still be perfected if there was
substantial compliance with the requirement. In this In this case, DDD College employed means whereby
instance, EEE Company posted a security deposit and the A and B were intentionally placed in situations that
presented proof that GGG Insurance was legitimate. resulted in their being coerced into severing their ties
with the College, thus, resulting in constructive
In addition, despite their failure to collect on the appeal dismissal. Hence, there is constructive dismissal
bond, A, B and C were eventually able to garnish the committed against A and B.
amount from respondents' bank deposits. This fulfills
the purpose of the bond, that is, "to guarantee the 24. A was hired by B on 8 February 2000 and was
payment of valid and legal claims against the employer." assigned to the Alabang, Muntinlupa City
Hence, EEE Company is considered to have branch, while his wife was also hired and
substantially complied with the requirements on the assigned to another branch. A signed an
posting of an appeal bond. (Reference: Malcaba et. al. agreement that they are prohibited from setting
v. Prohealth Pharma Philippines, Inc.) up or be involved in a similar business. Z, which
operates the salon, found out that A was
23. A and B were both hired as pre-school teachers establishing a beauty salon near his place of
of DDD College. A filed a Leave-of-absence work. He then received a notice placing him
(LOA) for the period May to June 2010 as she under preventive suspension and requiring him
was to undergo a fertility check-up in Canada. to appear in an investigation. During the
When she returned to the Philippines, she hearing, A denied that he was establishing the
received a letter from the Directress of DDD salon but admitted that it was owned by his
College requiring her to explain why she should brother-in-law and he just gave funds to the
not be dismissed for taking a leave of absence latter. He also received a second written notice
without approval. When she reported back to containing the justification of his termination. 

the College, she was allegedly barred by from
teaching in her class, entering her classroom, On the other hand, his wife was also notified to
being introduced to her students, preparing explain her involvement and was placed under
teaching aids and materials, and going to other preventive suspension. Both were eventually
offices within the campus. Thus, A alleges that terminated due to loss of confidence. Hence,
all these acts constitute constructive the filing of two separate illegal dismissal
dismissal.
 complaints. The Labor Arbiter dismissed the
complaints. The NLRC, on appeal, affirmed the
On the other hand, B took a LOA without pay dismissal of A’s complaint and held that the
from April to June 2010 to undergo surgical wife’s dismissal is illegal.
operation for scoliosis. She received a letter
from the College advising her to file a LOA (Sick Is there basis for A’s illegal dismissal
Leave) for the entire school year. Otherwise, complaint?
she will be reassigned to a higher-grade level
where the students are more independent Answer: None. A’s illegal dismissal complaint must be
learners. The letter also required her to submit dismissed. Dismissals under the Labor Code have two
a waiver absolving the College from any liability facets: substantive due process and procedural due
in case of any untoward incident that may take process. The requirement of procedural due process
place while in the performance of her teaching was served with the service of first written notice
duties as well as notarized certification of her containing the specific grounds or causes for possible
physician as to her fitness to resume work. She, termination, the conduct of an investigative hearing and
thus, avers that she was constructively the service of the second written notice containing the
dismissed when PET stripped her of her justification for his termination. The substantive due
teaching load and being forced to take a LOA. process aspect was met due to the existence of a valid
cause for terminating his employment since he violated
Were A and B constructively dismissed? their agreement against engaging in a similar business.
Explain. This constitutes serious misconduct or willful
disobedience of the company’s lawful orders, which is a
Answer: Yes, A and B were constructively dismissed by just cause for terminating an employee by the employer.
the DDD College. Constructive dismissal arises when
continued employment is rendered impossible, 25. A was a receptionist at the Manila Bay Hotel
unreasonable or unlikely; when there is a demotion in receiving P50,000 monthly as her salary. She
8
worked overtime for three hours for fourteen
days in the month of October 2017. In CBMI is a corporation engaged in the business
December 2017, she still had not received her of providing janitorial, kitchen, messengerial,
overtime pay totalling P despite demands upon elevator maintenance and allied services to
the hotel management. If A were to seek various entities and has been in existence since
remedy by filing a complaint, what would her 1967. The company's total assets at the time of
cause of action be?
 filing of the complaint before the NLRC in 2010
amounted to Php 84,351,349.00. Among
Where should A file her complaint? CBMI's clients is Philippine Pizza, Inc.-Pizza
Hut (PPI), De La Salle University (DLSU),
Answer: Philippine National Bank (PNB), Smart
a. A’s cause of action is a monetary claim for the Communications, Inc., SM Supermalls, and the
recovery of overtime pay for the month of October. United States (US) Embassy.

b. She should file her complaint before the NLRC. Is CBMI labor-only contractor or independent
The NLRC would have jurisdiction over monetary contractor?
claims of employees; however, the Regional
Director of the DOLE or any of the duly authorized Answer: CBMI is an independent contractor. Job
hearing officers of the Department, is also contracting is not absolutely prohibited. Job contracting
empowered, through summary proceeding and is deemed legitimate and permissible when the
after due notice, to hear and decide any matter contractor has substantial capital or investment and
involving the recovery of wages and other runs a business that is independent and free from
monetary claims and benefits, including legal control by the principal. In this case, CBMI runs a
interest, owing to an employee or person business independent from the PPI. It has control over
employed in domestic or household service or the conduct of A and B based on their contracts, pays
househelper under the Labor Code, arising from their salaries, and maintain the power to discipline them
employer-employee relations, provided that a) when they initiated an investigation over their
such complaint does not include a claim for participation in the theft.
reinstatement, and that b) the aggregate money
claims of each employee or househelper does not 27. B was hired as a warehouse helper by CDE
exceed five thousand pesos (P5,000), otherwise, Company, a domestic corporation engaged in
the NLRC would have jurisdiction over the the business of distribution and sale of
monetary complaint. In the scenario above, the pharmaceutical and consumer products, after
value of A’s monetary claim exceeds that of which he joined a labor union. CDE Company
P5,000, and therefore it should be filed before the bought another drug company, FGH Company,
NLRC and not before the DOLE. wherein it was stated in the Memorandum that
the Management of CDE Company decided to
26. A and B allege that they are regular employees limit CDE Company’s functions to those of a
of PPI assigned at the Marikina branch. When holding company and run FGH Company as the
their contracts expired, they were told that as a main operating company. The Memorandum
precondition for continued employment, they also stated that the Union (to which B belonged)
had to submit a resignation letter, pass through acknowledges Management's decision to
CBMI and after 6 months go on vacation for one transfer all employees of CDE Company to
month. After this, they were assigned at the FGH Company who would have the power to
same branch and performed the same duties select the employees. The Memorandum also
and received the same salary. Their contracts guaranteed the tenure of the employees, the
with CBMI shows that the latter wield and preservation of salaries and benefits, and the
exercise the following powers over them: enjoyment of the same terms and conditions of
"selection and engagement, payment of wages, employment by the affected employees.
dismissal, and control over the employees'
conduct." FGH contracted its logistic services to JKL
Distributors. FGH and JKL agreed that FGH
After A was investigated for his involvement in would provide warehousemen to JKL’s tobacco
an attempted theft by CBMI, he was business which operated in JKL-Libis
preventively suspended and then dismissed. B, Warehouse. B was one of those
on the other hand, claims that after the warehousemen assigned and an ID with the
investigation, she was no longer allowed to FGH logo was given to B. FGH saw to it that its
report for work. Hence, they filed complaints for obligation to provide logistic services to its client
illegal dismissal and argued that their transfer JKL Distributors is carried out with B working as
from PPI to CBMI constituted labor-only warehouseman. However, JKL Distributors
contracting and was a mere scheme by PPI to decided to operate the business by themselves,
prevent heir regularization; and second, that thereby ending their logistic service agreement
they were illegally dismissed without cause and with FGH. This left FGH with no other option but
due process of law. to terminate the employment of those assigned

9
to JKL-Libis Warehouse, including B, who b. redundancy;
received a termination letter from FGH. c. retrenchment to prevent losses;
d. closure and cessation of business; and
B filed a complaint against CDE Company. e. disease / illness.
CDE asserted that it was not B’s employer. Was
there an employer-employee relationship 30. What is the right to self-organization?
between B and CDE Company?
Answer: Workers and employees have the right to
Answer: No, there is no employer-employee form, join or assist unions, organizations or
relationship between B and CDE Company, because B associations, for purposes of collective bargaining and
failed to satisfy the four-fold test (i.e. the selection and negotiation, and for mutual aid and protection. The right
engagement of the employees, the payment of wages, to self-organization also refers to the right to engage in
the power of dismissal, the power to control the peaceful concerted activities or to participate in policy
employee’s conduct). He did not submit any evidence to and decision-making processes affecting their rights
show that CDE Company was still his employer. To and benefits.
analyze each test one by one:

a) The Memorandum shows FGH’s power to THE END


select employees and to decide when to
engage them. ACKNOWLEDGEMENTS:
b) There was no substantial evidence that CDE
was the one paying him wages. UP LAW BAR COMMITTEE Dean Fides Cordero-Tan
Assoc. Dean Concepcion L. Jardaleza
c) The termination letter given by FGH Company,
not CDE Company, shows that FGH Company SUBJECT EXPERTS Atty. Arnold F. De Vera
was the one who terminated B. Prof. Dante Gatmaytan
d) FGH Company, and not CDE Company, had
UP LAW CENTER Atty. Glenda T. Litong
control over B, as FGH saw to it that its TRAINING AND Atty. Renee A. Fopalan
obligation to provide logistic services to its client CONVENTION DIVISON Elisha Danne R. Ponio
is carried out with B working as warehouseman.
Furthermore, B’s new ID no longer had CDE’s LAYOUT Renee Louise M. Co
logo, but FGH’s logo. The court held that in a
business establishment, an ID is to identify the
holder as a bona fide employee of the firm that
issues it.

28. What are the just causes for an employer to


terminate an employee?

Answer: Under Art. 282 of the Labor Code, and


employer may terminate and employee for any of the
following causes:

a. Serious misconduct or willful disobedience by


the employee of the lawful orders of his
employer or representative in connection with
his work;
b. Gross and habitual neglect by the employee of
his duties;
c. Fraud or willful breach by the employee of the
trust reposed in him by his employer or duly
authorized representative;
d. Commission of a crime or offense by the
employee against the person of his employer or
any immediate member of his family or his duly
authorized representatives; and
e. Other causes analogous to the foregoing.

29. Enumerate the authorized causes for


terminating employment.

Answer: Under Art. 283 and 284 of the Labor Code, the
employer may also terminate employment due to the
following:
a. installation of labor-saving devices;

10