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Labor Relations

University of the Cordilleras College of Law

Constitutional Mandates on
Labor, Labor Law
Labor Legislation, Social

What is Labor?
As an act: Exertion by human beings of
physical or mental efforts, or both, towards
the production of goods and services.
As a sector of society: That sector or group
in a society, which derives its livelihood
chiefly from rendition of work or services in
exchange for compensation under
managerial direction (Mendoza, 2001).
Refers to workers, whether agricultural or

Constitutional Mandates on
The State shall protect and promote the interests of the
Filipino Laborer:
Art. II, Sec. 9. The State shall promote a just and
dynamic social order that will ensure the prosperity and
independence of the nation and free the people from
poverty through policies that provide adequate social
services, promote full employment, a rising standard of
living and improved quality of life for all.
Art. II, Sec. 18. The State affirms labor as a primary
social economic force. It shall protect the rights, of
workers and promote their welfare.

Constitutional Mandates on
The State shall protect and promote the interests of the
Filipino Laborer:
Art. XII, Sec. 12. The State shall promote the preferential
use of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them

Art XIII, Sec. 14. The State shall protect women by

providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them
to realize their full potential in the service of the nation.

Art. XV, Sec. 8. The State shall, from time to time, review to
upgrade the pensions and other benefits due to retirees of

Constitutional Mandates on
Rights of Workers
Art. Ill, Sec. 8. The right of the people, including
those employed in the public and private sectors,
to form unions, associations, or societies for
purposes not contrary to law, shall not be abridged.
(formation of labor organizations)
Art. Ill, Sec. 18(2). No involuntary servitude in
any form shall exist except as a punishment for a
crime whereof the party shall have been duly

Constitutional Mandates on
Protection to Labor Clause
Art. XIII, Sec. 3 The State shall afford full protection to
labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization,

collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision-making process affecting their rights and
benefits as may be provided by law.

Participation in Policy and

Decision Making Processes
Phrase included in the 1987 constitution to
highlight workers participation in policymaking;
Added in the Labor Code

Article 217, Declaration of Policy

Article 261, Exclusive Bargaining Representation
and Workers Participation in Policy and DecisionMaking

Constitutional Mandates on
Protection to Labor Clause
Art. XIII, Sec. 3 , cont.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in
the fruits of production' and the right of enterprises to
reasonable returns of investments, and to expansion and

Commit Art. XIII, Sec. 3 to

Defines rights of workers under Labor Standards and
Labor Relations:

Under Labor Standards

Security of Tenure;
Living wage;
Share in the fruits of
production; and
Humane conditions of

Under Labor Relations

Collective bargaining
and negotiations
Peaceful concerted
activities, including
Participation in policy
and decision-making

Social, Labor and Welfare

Constitutional provisions on labor are not self-executory, hence
the need for Social Legislation, Labor Legislation and Welfare
Social Legislation - Laws that provide particular kinds of
protection or benefits to society or segments thereof in
furtherance of social justice.
Labor Legislation - Statutes, regulations and jurisprudence
governing the relations between capital and labor. It provides
for certain employment standards and a legal framework for
negotiating, adjusting and administering those standards and
other incidents of employment.
Welfare Legislation - Provides for the minimum economic
security, of the worker and his family in case, of loss of earnings
due to death, old age, disability, dismissal, injury or disease.

Social Legislation and Labor

Legislation, Distinguished

Labor Legislation

Social Legislation

Effect to

Directly affects

Governs the effects of



Designed to meet the daily

needs of workers

Involves long range benefits


Covers employment for

profit or gain

Covers employment for

profit and non-profit

Effect to Employee

Affects work of employee

Affects life of employee


Benefits are paid by the

workers employer

Benefits are paid by

government agencies

Social legislation encompasses labor legislation, thus is broader in

scope than the latter. All labor laws are social legislations but not all
social legislations are labor laws.

Labor Law, defined.

The law governing the rights and duties of
employers and employees with respect to Labor
Standards and Labor Relations.
Labor Standards Law deals with the minimum
standards as to wages, hours of work and other
terms and conditions of employment that
employers must provide their employees.
Labor Relations Law defines the status, rights
and duties as well as the institutional mechanisms
that govern the individual and collective
interactions between employers, employees and
their representatives.

The Philippine Labor Code, and

Other Laws

Presidential Decree No. 442

Deals with Labor Standards and Labor Relations
Became effective November 1, 1974

Special Laws:
a. Laws on Social Security (SSS Law, GSIS Law, Limited Portability Law (RA
b. National Health Insurance Act
c. Paternity Leave Act
d. Retirement Pay Law
e. Home Mutual Development Fund Law
f. Anti-Sexual Harassment Act
g. Anti-Child Labor Act
h. 13th Month Pay Law
i. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. No. 8042, as
amended by RA 10151)
j. Expanded Comprehensive Agrarian Reform Law
k. Magna Carta for Public Health Workers

The Philippine Labor Code, and

Other Laws

Labor-related provisions in Other Laws

Civil Code
a. Art. 1700. The relation between capital and labor are not
merely contractual. They are so impressed with public interest
that labor contracts must yield to the common good. Therefore,
such contracts are subject to the special laws on labor unions,
collective bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar subjects.
b. Art. 1701. Neither capital nor labor shall act oppressively against the
other, or impair the interest or convenience of the public.
c. Art. 1702. In case of doubt, all labor legislations and all labor
contracts shall be construed in favor of the safety and decent
living for the laborer.
d. Art. 1703. No contract which practically amounts to involuntary
servitude, under any guise whatsoever, shall be valid.

The Philippine Labor Code, and

Other Laws

Labor-related provisions in Other Laws

Revised Penal Code

a. Art. 289. Formation, maintenance and prohibition of
combination of capital or labor through violence or threats.
The penalty of arresto mayor and a fine not exceeding
300 pesos shall be imposed upon any person who, for the
purpose of organizing, maintaining or preventing coalitions
of capital or labor, strike of laborers or lock-out of
employees, shall employ violence or threats in such a
degree as to compel or force the laborers or employers in
the free and legal exercise of their industry or work, if the
act shall not constitute a more serious offense in
accordance with the provisions of this Code.

The Aim and Basis of Labor


Attainment of Social Justice

Balance the interest of labor and capital
(eliminate oppression)
Labor is afforded a greater measure of protection
There is greater supply of labor than demand for
their services;
Those who have less in life should have more in law;
The need for employment by labor comes from vital,
and even desperate necessity (survival);

Basic Principles
Preliminary Discussions on
the Labor Code

What are the basic principles in

the constitution and labor-related
laws on protection to labor?

The state shall afford full protection to labor,

promote full employment, equal work
opportunities without bias or discrimination,
regulate the relations of employers and
employees, and assure workers rights (refer to
protection to labor clause Art. XIII, Sec. 3, 1987
Const. & Art. 3, Labor Code);
The relation of capital and labor are impressed
with public interest, hence employment
contracts are not ordinary contracts (Art. 1700,

What are the basic principles in

the constitution and labor-related
laws on protection to labor?

In case of doubt or ambiguity, labor laws and rules

are to be construed in favor of labor (Art. 4, Labor
Code, Art. 1702, Civil Code)
IF THERE IS DOUBT as to the meaning of the legal and
contractual provision, the above-mentioned applies.
be applied in accordance with its express terms. (Meralco
v. NLRC, GR No. 78763, July 12, 1989).
The law also recognizes that management has rights
which are also entitled to respect and enforcement in the
interest of fair play (St. Luke's Medical Center Employee's
Assoc, v. NLRC, GR No. 162053, March 7, 2007).

Why the preference for labor

over capital?
Comes from acknowledgement that capital
wields more power than labor;
(Sanchez v. Harry Lyons Construction Inc.,
GR No. L-2779, October 18, 1950).

There is greater supply than demand for labor;

Those who have less in life should have more in law;
The need for employment by labor comes from vital,
and even desperate necessity (survival)

To whom does the Labor Code

General Rule: The Code applies to all workers, whether agricultural or
non-agricultural, including employees in a government corporation
incorporated under the corporation code;
1. Government employees;
2. Employees of government Corporations created by special or
original charter;
3. Foreign governments;
4. International Agencies, employees of intergovernmental or
international organizations;
5. Corporate officers/Intra-corporate disputes which fall under PD 902A and now fall under the jurisdiction of, the Regular Courts pursuant
to the Securities Regulation Code; and
6. Local water districts except where NLRC jurisdiction is invoked.

Government employees;
Employees of government Corporations created by special or original
charter (Juco v. NLRC, GR No. 98107, August 18, 1997);
Foreign governments (JUSMAG-Philippines v. NLRC, GR No. 108813,
December 15, 1994);
International Agencies (Lasco v. UNRFNRE, GR Nos. 109095-109107,
February 23, 1995), employees of intergovernmental or international
organizations (SEAFDEC-AQD v. NLRC, GR No. 86773, February 14, 1992);
Corporate officers / Intra-corporate disputes which fall under PD 902-A
and now fall under the jurisdiction of, the Regular Courts pursuant to the
Securities Regulation Code (Nacpil v. IBC, GR No. 144767, March 21,
2002); and
Local water districts (Tanjay Water District v. Gabaton, GR Nos. 63742 and
84300, 17 April 1989) except where NLRC jurisdiction is invoked
(Zamboanga City Water District v. Buat, GR No. 104389, May 27, 1994).

Protection to labor should not

come at the expense of
oppressing capital!

Law recognizes management rights. The

employer has the right to

Conduct business;
Prescribe rules;
Select and hire employees;
Transfer or discharge employees;
Discipline of employees, and
Return of investment and expansion of business.

Management Prerogatives

Rural Bank of Cantilan . v. Julve, GR No. 169750, February

27, 2007.
Under the doctrine of management prerogative, every employer
has the inherent right to regulate, according to his own discretion
and judgment, all aspects of employment, including hiring, work"
assignments, working methods, the time, place and manner of
work, work supervision, transfer of employees, lay-off of workers,
and discipline, dismissal, and recall of employees

Mendoza v. Rural Bank of Lucban, GR No. 155421, July 7,

Management prerogatives, however, are subject to limitations
provided by
contract or collective bargaining agreements and
general principles of fair play and justice

Viewpoints on Labor
The Whys and Hows

State Policy on Labor


Article 217, Labor Code

Promote and emphasize the primacy of free collective
bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or
industrial disputes;
Promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social
justice and development;
Foster the free and voluntary organization of a strong and
united labor movement;
Promote the enlightenment of workers concerning their
rights and obligations as union members and as employees;

State Policy on Labor


Article 217, Labor Code

Provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
Ensure a stable but dynamic and just industrial peace;
Ensure the participation of workers in decision and
policy-making processes affecting their rights, duties and
Prohibit courts or administrative agencies or officials
from setting or fixing wages, rates of pay, hours of work
or other terms and conditions of employment, except as
otherwise provided under the Labor Code.


Social Justice


Industrial Peace and

Collective Interaction,


Labor Organization/Workers

Terms and Conditions of

Addressing Grievances

Self Organization


Employees Rights
and Duties

Employers Rights
and Duties

Self Organization
Workers organize as a union or some other
form of association (registered or
Effect of registration with the State:
Acquisition of legally demandable rights,
e.g. right to demand collective bargaining
Organization must have rules and
mechanisms that respect member rights
No employer influence or interference (See
Article 261, Labor Code)

Why Workers Organize

Self Advancement
Job Security
Upholding the rule of law over arbitrary
exercise of power by capital
Provide employees a sense of participation
in the enterprise

Self Organization

There can be many labor organizations in

the workplace, but
Only one recognized representative for workers in
Collective Bargaining
Selected by the workers themselves by way of
election (with or without intervention of the

Who may exercise right to selforganization

All persons employed in commercial,
industrial and in religious, charitable,
medical or educational institutions (profit or
Includes the right to

Labor organizations of their own choosing

Collective Bargaining

Presentation of proposals and counter-proposals

by the parties
If capital and labor agree on substantially all
points, a labor contract is forged (Collective
Bargaining Agreement)
If both parties do not agree on material points,
this results in a deadlock
Parties are obliged to avoid or break the impasse
Failure to resolve a deadlock may result in work

Collective Bargaining
While a legal right, strike or lockout is not an ideal
solution to compel a party to agree to a proposal
Considered as measures of last resort
Strikes and lockouts are heavily regulated

Manner of implementation
Violation of established rules will merit sanctions
(admin, civil and criminal)

Parties are allowed to introduce means and

methods that will expedite bargaining
Subject to compliance to legal standards

Collective Bargaining

Parties are primarily responsible for dealing

with problems arising out of their relations
(Inter-party relationship)
Voluntary modes of settling disputes are preferred
over compulsory processes
Grievance machinery: In-house problem solving
State steps in only when
Parties fail to agree
Rights are violated

States Intervention

SSS Employees Association vs. CA, 175 SCRA 686: The

principle behind labor unionism in private industry is that
industrial peace cannot be secured through compulsion by law.
Relations between private employers and their employees rest
on an essentially voluntary basis. the terms and conditions
of employment in the unionized private sector are settled
through the process of collective bargaining

But, when dispute

transgresses legal
boundaries, the injuctive
powers of the state may
be invoked, especially
when national interest is


Employer: Includes any

person acting in the
interest of an employer,
directly or indirectly.
The term shall not
include any labor
organization or any of
its officers or agents
except when acting as
an employer.


Employee: Includes any person

in the employ of an employer.
The term shall not be limited to
the employees of a particular
employer, unless the Labor Code
so explicitly states. It shall
include any individual whose
work has ceased as a result of or
in connection with any current
labor dispute or because of any
unfair labor practice if he has
not obtained any other
substantially equivalent and
regular employment.

Categories of employees
Managerial employees
Supervisory employees
Rank-and-file employees

Existence of Er-Ee Relationship

is Vital in Labor Relations
If there is no such relationship, there is no
basis for exercising the right of selforganization for purposes of collective
Note also that Labor Arbiters cannot
exercise jurisdiction where Er-Ee
Relationship does not exist. (subj. to


Four-Fold Test

the selection and engagement of the employee;

the payment of wages;
the power of dismissal; and
the power to control the employees conduct, or the socalled control test.

Two-tiered test of employment relation ship

1. Control test the employers power to direct the employee
(the manner, means and methods) by which work is
2. Economic reality test economic reality of the relationship;
the question of economic dependency of the worker on his
employer. (Read Orozco vs. CA, GR 155207, April 29, 2005)

Existence of Er-Ee Relationship

in the following instances:

A stipulation stating expressly that there is no Er-Ee

relationship is not controlling (Chavez vs. NLRC, GR No.
146530, Jan. 2005)
Jeepney and taxi drivers (Paguio Transport Corp. vs. NLRC
GR No. 119500, August 1998)
Bus, auto-calesa drivers (R. Transport Corp. vs. Ejandra,
GR No. 148508, May 2004)
Fishermen (Ruga vs. NLRC, Jan. 1990)
Lawyers, doctors, nurses, dentists, public relations
practioners, other professionals
Employees of cooperatives
Insurance agents (salaried)

No Er-Ee Relationship in the

following instances:
Commission salesmen
Agents of prinicipal (who are not employees
in other respects)
Working scholars (See Section 14, Rule X,
Book III, IRR, Labor Code)
Visiting Physicians
Independent contractors


Labor disputes: Includes any controversy or matter

concerning terms or conditions of employment or
the association or representation of persons in
negotiating, fixing, maintaining changing or
arranging the terms and conditions of employment,
regardless of whether the disputants stand in the
proximate relation of employer and employee.

Labor Disputes

Nature: arises from Er-Ee relationship,

regardless of whether the disputants stand in
the proximate relation of employer and
SMCEU-PTGWO vs. Bersamira & SMC, GR No. 87700,
June 1990)
Involves issue of SMCs exclusion of temporary,
probationary & contractual employees in scope of CBA
with union

Subject Matter
Terms and conditions of employment
Association or Representation of persons

Labor Disputes, Kinds

Working Conditions

Relations Disputes

Organizational rights/ULP
Contract administration
Personnel policy
Employment tenure disputes

Resolving Labor Disputes

Grievance procedure CBA-prescribed, in-house
mechanism for addressing complaints.
Conciliation involves third person who meets with
both parties and, by assuaging hurt feelings and
cooling tempers, aids in reaching agreement.
Mediation third person offers suggested solutions to
Arbitration dispute is submitted to impartial third
person who renders decision based on evidence, law
and jurisprudence. Decision is enforceable.

Voluntary by agreement of parties

Compulsory directed by law. Primarily done by labor arbiters
of the NLRC

Resolving Labor Disputes

Enforcement/Compliance Order dispute
arises from concern uncovered by the exercise
of enforcement/visitorial power of SOLE, or
adjudicatory powers of the DOLE Regional
Directors (Articles 128, 129, Labor Code)
In case of labor disputes that may affect an
industry indispensable to the national interest,
the following apply:

Assumption of jurisdiction by DOLE

Certification to the NLRC for compulsory arbitration

The National Labor

Relations Commission
Jurisdiction, Case Flow,
Appeals, Cases

The National Labor Relations

Precursor: Court of Industrial Relations
NLRC was created by the Labor Code

attached to the DOLE

Under EO 204, s. 2005, DOLE exercises
administrative supervision over the commission
Under RA 9347, several changes to the
composition of the divisions, rank equivalence,
and reverted to the old version of NLRCs
attachment to DOLE (program and policy
Equal representation from workers, employers &
public sector

Jurisdiction of Labor

Original and exclusive jurisdiction to hear and

decide the following cases involving all workers,
whether agricultural or non-agricultural (Art. 223,
LC, Rule V Section 1, 2011 NLRC Rules):
1. Unfair labor practice cases; ULP Means "Unfair labor
practice" means any unfair labor practice as expressly
defined by the Code (Art. 218(K), Art. 254, Art. 255).
2. Termination disputes;
3. If accompanied with a claim for Reinstatement, those
cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of

The National Labor Relations

NLRC exercises adjudicatory powers and
other functions through its divisions (not the
individual commissioners);
En banc decisions pertain only to

Promulgation of rules governing hearing and

disposition of cases in the divisions (e.g., 2011
NLRC Rules);
Recommending Labor Arbiters to the President
Allowing a division to hear and decide a case
under the jurisdiction of another division

Jurisdiction of Labor



Claims for actual, moral, exemplary and other forms of

Damages arising from the employer-employee relations;
Cases arising from any Violation of Article 270 of this
Code, including questions involving the legality of strikes
and lockouts; and
Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other
Claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement (Article 223, Labor Code,
as amended).

Jurisdiction of Labor




Original and exclusive jurisdiction over money claims arising

out of employer-employee relationship or by virtue of any law
or contract, involving Filipino workers for Overseas deployment,
including claims for actual, moral, exemplary and other forms
of damages (Section 10, Republic Act No. 8042, as amended by
Republic Act No. 10022).
Wage distortion disputes in unorganized establishments not
voluntarily settled by the parties pursuant to Republic Act No.
Enforcement of compromise agreements when there is noncompliance by any of the parties or if there is prima facie
evidence that the settlement was obtained through fraud,
misrepresentation or coercion (Article 233, Labor Code, as
Other cases as may be provided by law.

The jurisdiction of labor arbiters, as well as of the NLRC, is
limited to disputes arising from an employer-employee
relationship which can only be resolved by reference to the
Labor Code, other labor statutes, or their collective
bargaining agreement. U-Bix's complaint was one to collect
sum of money based on civil laws on obligations and
contract, not to enforce rights under the Labor Code, other
labor statutes, or the collective bargaining agreement. (UBix Corporation, et al. vs. Valerie Anne H. Hollero, G.R. No.
177647, October 31, 2008)
The jurisdiction of labor courts extends only to cases where
an employer-employee relationship exists. (Jaguar
Security & Investigation Agency vs. Rodolfo Sales, et. al.,
G.R. No. 162420, April 22, 2008)


Exception to the rule that Er-Ee relationship

is necessary for Labor Arbiters to acquire
The jurisdiction of Labor Arbiters is not limited to
claims arising from Employer-Employee
relationships under Sec. 10 of RA 8042, which
cover money claims arising out of an employeremployee relationship or by virtue of any law or
contract involving Filipino workers for overseas
deployment, including claims fordamages.
Santiago vs. CF Sharp Crew Management, Inc. (GR
No. 162419, July 2007)

Corporate Officers
Nacpil vs. IBC (GR No. 144767, March 21,
2002) Officers designated by the board are
corporate officers
Prudential Bank and Trust Company (GR
No. 141093, Feb. 20, 2001) - One rising from
the ranks is not a mere corporate officer
Rural Bank of Coron vs. Cortes, (GR No.
164888, Dec. 6, 2006) A corporate officer
who is also an employee may file an illegal
dismissal case with the labor arbiter.

See also
Okol vs. Slimmers World International (GR No.
160146, December 11, 2009)
Gomez vs. PNOC Development and
Management Corporation (GR No. 174044,
November 27, 2009)
Atty. Virgilio R. Garcia vs. Eastern
Telecommunications Philippines (GR No.
173115, April 16, 2009)
Renato Real vs. Sangu Philippines, Inc. et
al., G.R. No. 168757, 1/19/2011


Case may be filed in the RAB having

jurisdiction over the workplace of complainant
or petitioner
Where two or more RABs have jurisdiction,
venue resides in the RAB which first acquired it
No objection to venue before the filing of
position papers, issue is deemed waived
May be by written agreement, or by motion for
meritorious cases
Option of the worker

Case Flow, RAB



File Complaint

Submit Position

Receive, docket and

subscribe complaint
Raffle and assign
Set case for

Evaluate pleadings
and evidence
Issue Order
submitting case for
Prepare decision


Issue Order


promulgate and
release decision

2011 NLRC Rules of

Significant changes from 2005 Rules (as discussed by Atty. Ruben Del
1. Service of Notices, Resolutions, Orders and Decisions by
Private Courier (Section 4, Rule III). Under the 2005 Rules,
service of notices such as summons, notice of conference,
resolutions, orders and decisions is made through the NLRCs
messenger or sent by registered mail only. In the 2011 Rules, service
can be done by private courier also.
2. Authority of the Labor Arbitration Associate to Conduct
Conciliation and Mediation Conference (Section 8a, Rule V).
The 2005 Rules state that the Labor Arbiter shall personally preside
over and take full control of the proceedings. The 2011 Rules state
that the Labor Arbiter may be assisted by the Labor Arbitration
Associate in the conduct of the proceedings.

2011 NLRC Rules of

3. Re-filing of a Dismissed Complaint Due to Non-Appearance of Complainant (Seafarer) (Section 10, Rule
V). Under both the 2005 and 2011 NLRC Rules, the Labor Arbiter can dismiss the complaint if the
seafarer fails to appear, despite due notice, during the two (2) settings for mandatory conciliation and
mediation conference. The dismissal however is without prejudice which means that the seafarer can refile his complaint.
However, under the 2005 NLRC Rules, the seafarer cannot re-file the case after it has been dismissed for
the 2nd time on the ground of non-appearance during the mandatory conferences.
This limitation of 2nd time is not present under the 2011 NLRC Rules. It would appear that the seafarer
can keep filing a new case despite dismissals of his previous cases due to non-appearance at the
mandatory conferences.
4. Failure to Attend Mandatory Conferences by Respondents (Manning Agents)
In case of non-appearance by the respondent (manning agent) during the first scheduled conference, the
second conference as scheduled in the summons shall proceed. However, if the respondent (manning
agent) still fails to appear at the second conference despite being duly served with summons, he/she
shall be considered to have waived his/her right to file position paper.
The above was not in the 2005 NLRC Rules and is new in the 2011 NLRC Rules.
It is thus important to ensure attendance at the mandatory conferences.

2011 NLRC Rules of

5. Remedy of the Respondents (Manning Agents) When Declared To Have Waived Their Right to File Position Paper
(Section 20, Rule V)
In instances where a party is declared to have waived his/her right to file position paper, the 2011 NLRC Rules have
provided a remedy. The 2011 NLRC Rules states: A party declared to have waived his/her right to file position paper
may, at any time after notice thereof and before a case is submitted for decision, file a motion under oath to set aside
the order of waiver upon proper showing that failure to appear during the hearings was due to justifiable and
meritorious grounds. If said motion is granted, the manning agents can now file the necessary Position Paper.
6. Limited Period to Conduct Hearing or Clarificatory Conference (Section 14a, Rule V)
The concept of hearing or clarificatory conference referred to in this rule is independent of and different from the
mediation or conciliation hearing wherein the seafarer and the manning agents are encouraged to enter into an
amicable settlement. The clarificatory hearing is conducted after the submission of the position papers
Briefly stated, a clarificatory hearing is rarely held and it is discretionary on the part of the Labor Arbiter. As the term
connotes, its purpose is to ask the parties clarificatory questions to further elicit facts or information which will include
obtaining relevant documentary evidence from any party or witness. .
The hearing or clarificatory conference shall be terminated within thirty (30) calendar days from the date of the initial
clarificatory conference. The period now is shorter as it was ninety (90) calendar days under the 2005 NLRC Rules.
In any event, under both the 2005 and 2011 Rules, cases involving overseas Filipino workers (including seafarers) the
mandatory conciliation and mediation conferences and clarificatory conferences must be terminated within sixty (60)
days from the acquisition of jurisdiction by the Labor Arbiter over the person of the respondents.

2011 NLRC Rules of

7. Procedure for Recovery of Amount Paid to the Seafarer During Execution Proceedings (Section 14, Rule
By way of brief background, if the case is lost in the Labor Arbiter level, the manning agents/principals
can file an appeal before the Commission level to assail the Labor Arbiters decision. If the appeal is
dismissed, the remedy of the manning agents is to file a Motion for Reconsideration. The denial of the
motion will render the Labor Arbiters decision final and executory. Consequently, at this stage, manning
agents and their principals are required to pay the seafarer based on said final award.
In the meantime, the case can still continue because the manning agents has the remedy of elevating
the matter to the Court of Appeals and eventually, to the Supreme Court.
In some cases, the Court of Appeals and/or the Supreme Court would either reverse (the seafarer is not
entitled at all to his claim) or modify (the judgment award is reduced) the decision of the NLRC.
In case of reversal or modification by the Court of Appeals or Supreme Court of the Labor Arbiters
decision, the next recourse of the manning agents is to recover the amount it has previously paid to the
The present 2011 NLRC Rules of Procedure explicitly provides for the steps on how to recover the said
amount from the seafarer. Under the 2011 NLRC Rules the Labor Arbiters of the NLRC can issue orders of
restitution to enable the manning agents to recover the amount they previously paid to the claimants as
a result of the reversed or modified decisions of the NLRC. This provision was not present under the 2005
NLRC Rules.

2011 NLRC Rules of

8. Extraordinary Remedy Available to the Manning Agents/Principals Other Than Appeal (Rule XII)
One of, if not, the most critical stage in NLRC proceedings is during execution of the judgment award. It is at this point that the seafarer can now
collect from the manning agents or the bonding company the amount mentioned in the Labor Arbiters decision.
The writ of execution is the basic document which would empower the NLRC Sheriff to collect the judgment award from manning agent which is
the losing party. Under the 2005 NLRC Rules of Procedure, once the writ is issued, the manning agents are already helpless to stop the NLRC
Sheriff from enforcing the judgment award unless of course, and this is very rare, the Court of Appeals issues a Temporary Restraining Order
and/or Writ of Injunction.
The 2011 NLRC Rules of Procedure provides for a specific remedy. It is not in the form of an appeal but a verified petition with the NLRC
Commission the purpose of which is to annul or modify the order of the Labor Arbiter issuing the writ of execution.
The immediate effect of the filing of the said verified Petition is that the NLRC Sheriff cannot, in the meantime, enforce the writ of execution or
the NLRC Sheriff, in laymans term, cannot collect the amount stated in the decision
from the manning agents or from the bonding company.
Please note that the mere filing of the verified Petition will prevent the bank of either the manning agents or the bonding company from
releasing the garnished amount to the seafarer within fifteen (15) calendar days from the filing of the Petition. Of course, the period can be
longer if the NLRC issues a Temporary Restraining Order or Writ of Preliminary Injunction which has a lifetime of twenty (20) or sixty (60) days,
respectively. It can also go beyond said period if the NLRC issues a final injunction.
However, the Temporary Restraining Order or the Writ of Preliminary Injunction only becomes effective upon posting by the manning agents of a
cash bond, not surety bond, amounting to Php50,000.00 or a higher amount as may be required by the NLRC.
Important Note: While the extraordinary remedy described above can be availed of during execution proceedings, Rule XII of the 2011 NLRC
Rules can be availed of by any party aggrieved by an order or resolution of the Labor Arbiter. It is thus not confined to just execution
proceedings but on all orders or resolutions of the Labor Arbiter. For example, if the manning agent files a Motion to Dismiss on the ground that
the seafarer has already been paid his disability benefits and it is denied by the Labor Arbiter, the manning agent can avail of the extraordinary
remedy under Rule XII of the 2011 NLRC Rules.
The above are the currently perceived significant changes but we are continually reviewing the 2011 NLRC Rules and will report on any other
significant developments in subsequent updates.

2011 NLRC Rules, amendments

En Banc Resolution 11-12 amended the 2011 NLRC Rules

of Procedure.
Venue: When venue is not objected to before the first
scheduled mandatory conference, such issue or objection
will be deemed waived. (Rule IV, Section 1, par. c)
Confidentiality of Commission Records: access to
pleadings and other documents filed by parties to a case
are restricted. Reports, drafts of decisions, records of
deliberations, and other documents involving private
rights are made confidential. Nevertheless, decisions,
resolutions and orders of the NLRC are open to the parties
and their counsel or authorized representative during
office hours. (Rule XIII, Section 8)

2011 NLRC Rules, amendments

RULE V, SECTION 11. AMENDMENT OF COMPLAINT/PETITION. An amended complaint or petition may be filed before the Labor
Arbiter at any time before the filing of position paper, with proof of service of a copy thereof to the opposing party/ies. If the
amendment of the complaint or petition involves impleading additional respondent/s, service of another summons in accordance
with Section 3 hereof is necessary to acquire jurisdiction over the person of the said respondent/s.
RULE V, SECTION 20. DEATH OF PARTIES. In case a complainant dies during the pendency of the proceedings, he/she may be
substituted by his/her heirs. If it is the individual respondent, the provision of Section 20, Rule 3 of the Rules of Court shall apply.
RULE XI, SECTION 5. EFFECT OF A MOTION TO LIFT ENTRY OF JUDGMENT. In case a motion to lift Entry of Judgment is filed, the
execution proceedings shall not be suspended and the records of the case shall not be elevated to the Commission unless ordered
RULE XI, SECTION 11 EXECUTION IN CASE OF DEATH OF PARTY. Where a party dies after the entry of judgment or issuance of
certificate of finality, execution thereon may issue or one already issued may be enforced in accordance with the applicable
provisions of the Rules of Court. The sheriff shall submit to the Commission or Labor Arbiter a report before and after the sale.
Proceeds of the sale should be deposited with the Cashier for proper disposition by the Commission or Labor Arbiter.
The foregoing provisions provide mechanisms to: a) amend complaints b) substitute heirs in case of death of a party and c)
execute judgments.
The amendments also clarify certain ambiguities in the rules. For instance, the amended rules specify the reckoning point of the
five (5) year effectivity of the writ of execution, which is the date of entry of judgment or issuance of certificate of finality. (Rule XI,
Section 7)
In respect of execution of monetary judgments, the amended rules state the manner by which a losing party may voluntarily
tender payment. The amended rules also enumerate the order of funds and properties against which the judgment may be
enforced in the event the losing party refuses or fails to pay. Notably, the prevailing party may even file a motion for the issuance
of a break open order with the Commission or the Labor Arbiter if the losing party prevents the sheriff from entering the place
where the property subject of execution is kept. (Rule XI, Section 9 and 10)
The amended rules introduced a new provision, which would have a significant effect during execution proceedings. It
contemplates a situation where a case is elevated to the Court of Appeals and subsequently to the Supreme Court. The new
provision states that a total or partial reversal of judgment by the Court of Appeals has the effect of suspending the execution
insofar as the reversal is concerned even during the pendency of a motion for reconsideration on such judgment. Where the
judgment of the Court of Appeals is reversed by the Supreme Court, execution proceedings shall commence upon presentation of
a certified true copy of the decision and entry of judgment. (Section 17, Rule XI)

Doctrine of Forum Non

Manila Hotel Corporation vs. NLRC (GR No.
120077, October 13, 2000) The NLRC has no
jurisdiction when the main aspects of the case
transpired in foreign jurisdictions and the only link
that the Philippines has with the case is that the
employee is a Filipino citizen.
PNB vs. Cabansag (GR No. 157010, June 21,
2005) when the employee is directly hired in a
foreign country but nonetheless secures a (POEA)
employment certificate, she is an OFW and thus
the case falls under the jurisdiction of the labor

Counter claims of
Banez vs. Valdevilla (GR No. 128024,
May 9, 2000) Art. 217 (now 223) is
comprehensive enough to include claims for
all forms of damages arising from Er-Ee
relations, including Ers claims for actual
damages against a dismissed Ee.
Domondon vs. NLRC (GR No. 154376,
Sept. 30, 2005)

NLRC, Jurisdiction

Two kinds
Original Jurisdiction
Injunction in ordinary labor disputes
Injunction in strikes and lockouts under Article 270,
Certified labor disputes in industries indispensable to
the national interest, where work stoppage is likely
or has already occured

Exclusive Appellate Jurisdiction

Cases decided by the labor arbiters
Cases decided by DOLE regional directors under
Article 129

Labor Arbiters & NLRC,

distinction of jurisdictions
NLRC has exclusive appellate jurisdiction on
all cases decided by the labor arbiters.
NLRC does not have original jurisdiction on
the cases over which labor arbiters have
original and exclusive jurisdiction.
If the labor arbiter does not exercise original
and exclusive jurisdiction over a case, the
NLRC has no appellate jurisdiction over it.


Labor Arbiters decisions ordinary appeal

to the NLRC, w/in 10 calendar days from
receipt. NLRCs decision on appeal is
elevated to the CA by way of special civil
action (Rule 65), and then under ordinary
appeal (Rule 45) to the SC

Grounds of Appeal
Prima facie evidence of abuse of discretion
on the part of the labor arbiter
Decision, order or award was secured
through fraud or coercion, including graft
and corruption
Purely on questions of law
Serious errors in the findings of facts which
would cause grave or irreparable damage or
injury to appellant

Perfection of Appeal,
Filed within reglementary period (ten days
from receipt of decision by party seeking
Under oath
Appeal fee
Posting of cash or surety bond (where
judgment involves monetary award)
Proof of service to adverse party


Note the following:

Labor arbiter loses jurisdiction upon perfection of
Lack of verification is not fatal nor jurisdictional
Appeal is still valid despite failure to pay docket
fee, but refusal to pay despite directive is fatal
Raising new issues or changing theory on appeal
is not allowed.

Reinstatement Order

Reinstatement is immediately executory even

pending appeal
Pioneer Texturizing Corporation vs. NLRC
employer is duty-bound to inform employee
of reinstatement
An employer may not stay execution of
reinstatement, even when he has posted a
Roquero vs. PAL (GR No. 152329, April
2003) - Labor arbiter has ministerial duty to
implement reinstatement order

Reinstatement by
Actual reinstatement of the employee to his
work under the same terms and conditions
prior to dismissal or separation, or
Reinstatement in the payroll of the
company, without requiring actual return to

Bureau of Labor



Pursuant to E.O. 126, the National Conciliation and

Mediation Board (NCMB) has absorbed the conciliation,
mediation and voluntary arbitration functions of the
The BLR functions, as it now stands are confined
largely to union matters, collective bargaining and
labor education.
Jurisdiction over labor-management problems or
disputes is also exercised by other offices such as the
DOLE regional offices, the Office of the Secretary of
Labor, NLRC, POEA, OWWA, SSS-ECC, the regional
wage and productivity boards, NWPC, and even the
regular courts over intra-corporate disputes.

Exclusive and Original

Jurisdiction of the BLR

To act on its own initiative or upon the

request of either or both parties on all:
INTRA-union conflicts;
INTER-union conflicts; and
OTHER RELATED Labor Relations Disputes

Other Related Labor Relations

Disputes (Sec. 2, Rule XI D.O. 4003)

Shall include any conflict between a labor

organization and the employer or any
individual, entity, or group that is NOT a
labor organization or workers association.
This includes:
Cancellation of registration of unions and
workers associations; and
A petition for interpleader.

EO 251, S. 1987
removed from the jurisdiction of the BLR
all labor-management disputes. The effect
of E.O. 251 is to transfer to the NCMB the
mediation, conciliation, and arbitration
functions of the BLR.
The parties may, by agreement, settle their
differences by submitting their case to a
voluntary arbitrator rather than taking the
case to the BLR.

EO 251, S. 1987

This category of labor relations disputes as the

name suggests is related to inter/intra union
disputes to differentiate it from other labormanagement disputes, such as those under
Article 128: Visitorial and enforcement power
Article 129: recovery of wages, simple money claims
and other benefits
Article 223: Jurisdiction of the LA and NLRC
Article 267: Jurisdiction of VA
Article 270(g): Secretary of Labor, on possibility of
strikes and lockouts

Functions and Authority of BLR

under the 1987 Administrative

Sec. 16. Bureau of Labor Relations The BLR shall:

Set policies, standards, and procedures on the
registration and supervision of legitimate labor union
activities including denial, cancellation, and revocation
of labor union permits;
Set policies, standards and procedures relating to
collective bargaining agreements, and the examination
of financial records of accounts of labor organization to
determine compliance with relevant laws;
Provide proper orientation to workers on their schemes
and projects for improvement of the standards of living
of workers and their families.

Union Disputes
Intra-Union Disputes refer to any conflict between
and among union members, including grievances
arising from any violation of the rights and conditions
of membership, violation of or disagreement over any
provision of the unions constitution and by-laws, or
disputes arising from chartering or affiliation.
Inter-Union Disputes refer to any conflict between
and among legitimate labor organizations involving
representation questions for purposes of collective
bargaining or to any other conflict or dispute between
legitimate labor organizations based on any violations
of their rights as labor organizations.

Coverage of Inter/Intra-Union
Disputes (Sec. 1 Rule XI, D.O. 4003)

Cancellation of registration of a labor organization

filed by its members or by any other labor
Conduct of election of union and workers association
officers/nullification of election of union and workers
association officers;
Audit/accounts examination of union or workers
association funds;
De-registration of CBA;
Validity/invalidity of union affiliation or disaffiliation;
Validity/invalidity of acceptance/non-acceptance for
union membership;

Coverage of Inter/Intra-Union
Disputes (Sec. 1 Rule XI, D.O. 4003)

Validity/invalidity of
impeachment/expulsion of union and
workers association officers;
Validity/invalidity of voluntary recognition;
Opposition to application for union and
CBA registration;
Violations of or disagreements over any
provision in a union or workers
association constitution and by-laws;

Coverage of Inter/Intra-Union
Disputes (Sec. 1 Rule XI, D.O. 4003)

Disagreements over chartering or registration of

labor organizations and CBAs;
Violations of the rights and conditions of union or
workers association membership;
Violations of the rights of legitimate labor
organizations, except interpretation of CBAs; and
Such other disputes or conflicts involving the
rights to self-organization, union membership, and
collective bargaining

Between and among legitimate labor organizations; and

Between and among members of a union or workers

Special Requirements as to the

Filing of Cases

Involving Entire Membership

The complaint must be signed by at least 30% of
the entire membership of the union; and
It must also show exhaustion of administrative

Special Requirements as to the

Filing of Cases

Involving a Member Only

In such case, only the affected member may file
the complaint. Redress must first be sough
within the union itself in accordance with its
constitution and by-laws EXCEPT under any of
the following circumstances:
Futility of intra-union remedies;
Improper expulsion procedure;
Undue delay in appeal as to constitute substantial
The action is for damages;

Special Requirements as to the

Filing of Cases

Involving a Member Only

In such case, only the affected member may file the
complaint. Redress must first be sough within the union
itself in accordance with its constitution and by-laws
EXCEPT under any of the following circumstances:
Lack of jurisdiction of the investigating body;
Action of the administrative agency is patently illegal, arbitrary,
and oppressive;
Issue is purely a question of law;
Where the administrative agency had already prejudged the
case; and
Where the administrative agency was practically given the
opportunity to act on the case but did not.

Effects of Filing or Pendency of

Inter/Intra-Union Dispute and other
Labor Relations Disputes (Sec. 3, Rule
XI, D.O. 40-03)

The rights, relationships and obligations of

the part-litigants against each other and
other parties-in-interest prior to the institution of
the petition shall continue to remain during
the pendency of the petition and until the
date of finality of the decision rendered
therein. Thereafter, the rights, relationships
and obligations of the party litigants against
each other and other parties-in-interest shall be
governed by the decision so ordered.

Modes of Appeal in Intra/InterUnion Disputes (Rule XI, D.O.


How: Formal


Under Oath
Consist of a memorandum of appeal
Based on either of the following grounds:
Grave abuse of discretion
Gross violation of the rules
With supporting arguments and evidence

To whom

Within ten days from receipt of decision

Bureau of Labor Relations if the case originated from MedArbiter/Regional Director; Secretary of DOLE in case
originated from BLR

Where filed

Regional office or to the BLR where the complaint

originated (records transmitted to the BLR or Sec. within 24
hours from receipt of the memorandum on appeal

Summary of Rules on Inter/Intra

Union Disputes
For grounds under Section 1: any LLO members thereof
specially concerned
For grounds under Section 2: any party-in-interest
RO that issued its certificate of registration or
certificate of creation of chartered local if it involves
labor unions with independent registration, chartered
locals, workers association, its officers or members.
Directly with the BLR if it involves a federation/national
union/industry union, its officers or members

Effects of Filing or Pendency of

Inter/Intra-Union Dispute and other
Labor Relations Disputes (Sec. 3, Rule
XI, D.O. 40-03)

The filing or pendency of any inter/intraunion disputes is not a prejudicial

question to any petition for
certification election and shall not be a
ground for the dismissal of a petition
for certification election or suspension
of proceedings for certification election.

Summary of Rules on Inter/Intra

Union Disputes
Formal requirements
In writing
Verified under oath
Name, address and other personal circumstances of the complainant
or petitioner
Name, address and other personal circumstances of the respondent or
person charged
Nature of complaint or petition
Facts and circumstances surrounding complaint or petition
Causes of action
Statement on exhaustion of Administrative Remedies
Reliefs prayed for
Certification of non-forum shopping
Other relevant matters

Administrative functions of BLR

Regulation and registration of labor unions
Keeping of registry of labor unions
Maintenance of a file of CBAs
Maintenance of a file of all settlements or final
decisions of the SC, CA, NLRC and other
agencies on labor disputes

BLR has no jurisdiction over implementation or

interpretation of CBAs, which shall be subject of
grievance procedure and/or Voluntary

Compromise Agreements

Purpose: Parties agree to

Avoid litigation, or
Put an end to one already in place

How: making reciprocal concessions


Substantial requirements
Voluntary, devoid of coercion
Not contrary to law, morals, public policy

Formal requirements
In writing
Signed in the presence of person before whom case is filed

Compromise Agreements

When effected:
At any stage of the proceedings, even when there
is already a final & executory judgment
EXCEPT when judgment is in process of execution

Validity: Valid and binding on both parties,

with or without DOLE assistance

If done without DOLE assistance

In case of non-compliance with agreement
Prima facie evidence of fraud, misrepresentation,

Compromise Agreements

Options when agreement is violated:

Enforce compliance
Regard as rescinded, revert to original demand

Quitclaim: A formal renunciation or

relinquishing of a claim
Usually integral in compromise agreements

Compromise Agreements

Mindoro Lumber vs. Baay,, GR No. 158753,
June 2005
Veloso and Liguaton vs. DOLE, Noahs Ark Sugar
Carriers, GR No. 87297, Aug. 1991
JAG & Haggar Jeans vs. NLRC, GR No. 105710,
Feb. 1995
Magbanua vs. Uy, GR No.161003, May 2005

Registration and
Labor Organizations

Definitions (Article 218)

"Labor organization" means any union or association of
employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with
employers concerning terms and conditions of

"Legitimate labor organization" means any labor

organization duly registered with the Department of
Labor and Employment, and includes any branch or
local thereof.

"Bargaining representative" means a legitimate labor

organization whether or not employed by the employer.

Definitions (DO 40-03)

"Chartered Local" refers to a labor organization in the

private sector operating at the enterprise level that acquired
legal personality through the issuance of a charter
certificate by a duly registered federation or national union,
and reported to the Regional Office in accordance with Rule
III, Section 2-E of these Rules.
"Exclusive Bargaining Representative" refers to a legitimate
labor union duly recognized or certified as the sole and
exclusive bargaining representative or agent of all the
employees in a bargaining unit.
"Independent Union" refers to a labor organization operating
at the enterprise level that acquired legal personality
through independent registration under Article 234 of the
Labor Code and Rule III, Section 2-A of these Rules.

Definitions (DO 40-03)

"Labor Organization" refers to any union or association of

employees in the private sector which exists in whole or in
part for the purpose of collective bargaining, mutual aid,
interest, cooperation, protection, or other lawful purposes.
"Labor Relations Division" refers to the (1) Labor
Organization and CBA Registration Unit and (2) MedArbitration Unit in the Regional Office. The Labor
Organization and CBA Registration Unit is in charge of
processing the applications for registration of independent
unions, chartered locals, workers associations and
collective bargaining agreements, maintaining said
records and all other reports and incidents pertaining to
labor organizations and workers' associations.

Definitions (DO 40-03)

"Legitimate Labor Organization" refers to any

labor organization in the private sector
registered or reported with the DOLE in
accordance with Rules III and IV of these Rules.
"Legitimate Workers' Association" refers to an
association of workers organized for mutual aid
and protection of its members or for any
legitimate purpose other than collective
bargaining registered with the DOLE in
accordance with Rule III, Sections 2-C and 2-D
of these Rules.

Two-Fold Purpose of Labor


Dealing with the Employer interaction

between employers and employees

Other terms and conditions of employment

Applies even without registration

Two-Fold Purpose of Labor


Collective Bargaining is a right acquired

through registration, and recognition or
certification as the exclusive bargaining

Classifications of LOs

At the National Level

National Union/Federation
Industry Union
Trade Union Center
Company Union

Enterprise Level
Independent Labor Union

RA 9481
Amended Articles 240, 244, 245, 261, 262 &

Changes to Labor Code Re:

Registration of Labor

20% membership of employees in bargaining

unit required only for independent unions
Chapters acquire legal personality (for
purposes of certification election) upon
receiving their charter certificate
Grounds of cancellation revised. Some grounds
were removed as they were not promotive of
self organization rights
Petition for Certification Election will continue
to be heard despite petition to cancel

Changes to Labor Code Re:

Registration of Labor

Cancellation may be effected by vote of

two-thirds of membership, with application
to cancel submitted to DOLE by the
organizations board
Reportorial requirements
Supervisors Union and Rank and File Unions
may join same Federation
Commingling of supervisors and rank & file
employees no longer a ground for

Changes to Labor Code Re:

Registration of Labor

PCEs filed by a federation on behalf of its

chapter need not identify the chapters
officers and members
Employer cannot oppose a petition for
certification election; he is considered a

Registration of Labor
Legal personality
Enjoy the rights given to legitimate labor

Petition for certification election

Bargaining rights
Right to strike

Non-registered unions are not illegitimate or


Registration of Labor

Union registration refers to the process of

determining whether the application for
registration of a labor union organized for
collective bargaining complies with the
documentary requirements prescribed
under Rule 3 and 4 of DOLE Department
Order No. 4003and the rules
implementing Book V of the Labor Code, as

Registration of Labor

All labor unions whose members are employed in

commercial, industrial and agricultural enterprises, and
employees of government-owned and controlled
corporations without original charters established under
the Corporation Code, including religious, charitable,
medical or educational institutions whether operating for
profit or not which exist in whole and in part for collective
Alien employees with valid working permits issued by
DOLE may exercise their right to self-organization and join
or assist labor unions for purposes of collective bargaining
if they are nationals of a country which grants the same or
similar rights to Filipino workers, as certified by the
Department of Foreign Affairs.

Requirements, Local or

Duly accomplished and notarized Application Form;

Charter certificate issued by the federation or
national union indicating the creation or
establishment of the local/chapter;
The names of the local/chapters officers, their
addresses and principal office of the local/chapter;
The local/chapters constitution and by-laws,
provided that where the local/chapters constitution
and by-laws is the same as that of the federation or
national union, this fact shall be indicated

Independent LO
Duly accomplished and notarized
Application Form;
Minutes of Organizational Meeting and
Attendance Sheet
List of Members
Financial Report if in existence for at least
one (1) year

Independent LO
If less than 1 year, and has not collected
any amount, a certification to this effect.
Constitution and by-laws accompanied by
the names and signatures of ratifying
Minutes of adoption or ratification of the
constitution and by-laws, date/s when
ratification was made and list of ratifying

Independent LO
Minutes of adoption or ratification is not
required if it is done simultaneously with the
organizational meeting including the date/s
when ratification was made and list of
ratifying members.
Statement that it is not reported as a
chartered local or any federation.
List of members comprising at least 20% of
the employees of the bargaining unit.

The independent unions act of entering into
an agreement of affiliation with a federation
or national union, or
A chartered locals act of maintaining its
ties to a federation or national union despite
its subsequent independent registration

Requirements of Affiliation

Report of affiliation of independently

registered labor union;
Resolution of LU board approving affiliation
Total number of members, and names of those
approving affiliation
Certificate of affiliation
Written notice to the employer concerned if the
affiliating union is the bargaining agent

Chartering vs. Independent



How obtained

Registration on its
Through charter
own accord under Art. certificate issued by

Effect of disaffiliation

Retains legal

Loses legal

Revocation of Charter
May only occur on the grounds of disloyalty
or such grounds specified in the constitution
& by-laws;
Effected by serving a verified notice to the
local/chapter, copy the BLR

revocation of legal personality, except if local

chapter has acquired independent registration.
If covered by CBA, local chapter may be given
opportunity to register independently

BLR Action

Act on all applications within 30 days from

filing, provided all documents and papers
required have been submitted;
When DOLE refuses to register a labor
organization which has complied with the
requirements, mandamus is the proper remedy
Approval Order and Certificate of Registration
Disapproval Decision which states clearly
reasons for denial

Cancellation of
BLR has jurisdiction
Only for grounds in Article 245
Petition for cancellation will not suspend
PCE proceedings
Union may still seek just and equitable
remedies in appropriate courts

Grounds for Cancellation

Misrepresentation, false statements or fraud
in connection with the adoption or
ratification of the constitution and by-laws
or amendments thereto, minutes of
ratification and list of members who took
Misrepresentation, false statements or fraud
in connection with the election of officers,
minutes of the election of officers and list of
Voluntary dissolution by members

Grounds for Cancellation

Ten grounds in Article 245 prior to RA 9481
have been reduced to three
Examples of removed grounds

Failure to submit reportorial requirements

Illegal strike
Engaging in cabo system

Voluntary Dissolution
May be done by members themselves
2/3 of general membership votes during a
meeting called for the purpose of dissolving
Application to cancel registration submitted
by the board, attested by the president

Rights & Conditions of

Membership, LO

Article 247

Arbitrary or excessive initiation fees

Full and detailed reports
Direct election of officers
Determination of major policy affecting entire
membership of organization
Exclusion of subversive persons from membership
Exclusion of convicted member as union officer
Collection or disbursement only by authorized
Receipts for all payments

Rights & Conditions of

Membership, LO

Article 247
i. Funds for authorized use only
j. Ban on unauthorized compensation on officers
k. True and correct accounting of funds
l. Inspection of records of organization
m. No unauthorized special levy or assessment of
n. Check off
o. Information on the Constitution and by-laws

Rights & Conditions of

Membership, LO

Article 247can be best grouped into four

basic classifications
1. Political rights right to vote and be voted for
2. Deliberation and decision-making. Right to
participate in deliberations on major policy
questions and decide by secret ballot
3. Money matters
4. Information
1. Constitution and By-laws
2. Collective Bargaining Agreement
3. Labor Laws

Violation of Rights of Union

Members, Consequences
Cancellation of union registration, OR
Expulsion from office of a union officer.
30% of all members (if affecting entire
membership) must concur re filing of
complaint with the BLR
Only affected member/members may file a
complaint pertaining to a violation of which
they are affected

Relationship of the Union and

its Members

Ang Malayang Manggagawa ng Ang Tibay

Enterprises, et al. vs. Ang Tibay, et al., G.R.
No. L-8259, December 1957:
The relationship of the union and the members is
governed by their mutual agreement, the terms
and conditions of which are set forth in the union
constitution and by laws and binding on the
members as well as the organization itself

Prohibited as members
Non-employees (247(c))
Subversives (247(e))
What about persons convicted of crimes
involving moral turpitude?

Allowed as members, not eligible for election as

officer (247(f))

The labor organization cannot compel employees
to become members of their labor organization if
they are already members of a RIVAL UNION
The persons mentioned in Art 247[e]
(SUBVERSIVES) of the Labor Code are prohibited
from becoming a member of a labor organization
whose religion forbids membership in labor
organization could not be compelled into union
membership (Victoriano v. Elizalde Rope Workers
Union, L-25246 September 1974)

Who are entitled to vote?

Tancino vs. Pura Ferrer-Calleja, G.R. 78131,

Jan. 1988
Only members of the union have the eligibility to
take part in the election of union officers.
Eligibility to vote may be determined through the
use of the applicable payroll period and the status
of the employees during the applicable period.
This pertains to the payroll of the month next
preceding the labor dispute, in case of regular
employees and the payroll period at or near the
peak of operation, in case of employees in
seasonal industries.

Requirements for Levy of Special

Assessments or Extraordinary Fees
Written resolution;
Approved by a majority of all members; and
Approval obtained at a general membership
meeting duly called for that purpose.
Secretary of the organization shall record
the minutes of the meeting, which shall be
attested to by the President.

list of all members present

votes cast; and
purpose of the assessment or fees

Strict Compliance Enjoined

(Palacol et aa. v Ferrer-Galleja, et al, GR No.

85222, February 6, 1990) - Substantial
compliance with the aforementioned
procedure is not enough the requirements
must be strictly complied with


A method of deducting from an employees

pay at prescribed period, the amounts due
to the union for fees, fines or assessments

Nature and Purpose

of Check-off

Union dues are the lifeblood of the union. All

unions are authorized to collect reasonable
membership fees, union dues, assessments
and fines and other contributions for labor
education and research, mutual death and
hospitalization benefits, welfare fund, strike
fund and credit and cooperative

(Art. 283 [a])

Requirements With Regard to

Check-offs (Art 241 [O])
General Rule: NO special assessment,
attorneys fees, registration fees or any
other extraordinary fees may be checked off
from any amount due an employee without
an individual written authorization duly
signed by the employee
The Authorization should specifically state

Amount; and
Purpose and the beneficiary of the deduction

For mandatory activities provided under the
Code; and
When non-members of the union avail of
the benefits of the CBA:

Said non-members may be assessed union dues

equivalent to that paid by members;
Only by a board resolution approved by majority
of the members in a general meeting called for
the purpose

Check Off

Eduardo J. Marino, Jr. et al. vs. Gil Y. Gamilla,

et al., G.R. No. 149763, July 7, 2009: The
individual written authorization duly signed
by the employee is an additional requirement
in order that a special assessment may be
validly checked-off. In case of check-off
another requisite is necessary in addition to
the requirements for special assessment,
enumerated above and this is, individual
written authorization for check-off duly signed
by the employee concerned.

Jurisdiction over Check-Off


Being an intra-union conflict, the Regional

Director of DOLE has jurisdiction over check
off disputes.

Union Dues

Regular monthly contributions paid by the

members to the union in exchange for the
benefits given to them by the CBA and to
finance the activities of the union in
representing them.

Agency Fees
Dues equivalent to union dues charged from
the non-union members who were benefited
by the CBA provisions.
The relationship between the non-union
employees and the Union that is the
bargaining representative is that of principal
Since the union was able to secure better
terms and conditions of employment for all
employees, it is proper that they be
compensated for their representation

Requisites for Assessing Agency

The employee is part of the bargaining unit,
He is not a member of the union; and
He partook of the benefits of the CBA
Written authorization is not necessary for

Union Dues vs. Agency

Union Dues

Agency Fees

Applies to Union Members

Applies to Non Members of the


Paid by reason of their


Paid by reason of the benefits

they enjoyed under the CBA

Written authorization is required

for dues to be deducted from
salaries (Check-Off)

Written authorization is NOT


Agency Fees not


v. San Miguel Brewery Inc.,

GR No. 18170, August 31, 1963
Agency Fee cannot be imposed on employees
already in the service and are members of
another union. If a closed shop agreement
cannot be applied to them, neither may an
agency fee, as a lesser form of union security,
be imposed to them.
Payment by non-union members of agency fees
does not amount to an unjust enrichment
basically because the purpose of such dues is to
avoid discrimination between union and nonunion members.

Coverage of CBA to Include EmployeeMembers of Another Union

Members of a rival union are NOT
Considered Free Riders
When the union bids to be the bargaining
agent, it voluntarily assumes the
responsibility of representing all
employees in the appropriate bargaining



Rights of A Legitimate Labor

Undertake activities for benefit of members;
Sue and be sued;
Exclusive representative of all employees;
Represent union members;
Be furnished audited financial statements
by employers;
Own properties; and
Be exempted from taxes.



Constitution and by-laws, or amendments

thereto, minutes of ratification, and the
list of members who took part in the
ratification of the constitution and by-laws
or amendments thereto;
List of officers, minutes of the election of
officers and list of voters within 30 days
from election;



Annual financial report within 30 days after the

close of every fiscal year; and
List of members at least once a year or
whenever required by the Bureau


to comply with the above-mentioned

requirements shall not be a ground for
cancellation of union registration
Erring officers or members to be suspended,
expelled from membership, or otherwise

Title Five:Coverage
Art. 249: Coverage and
Employees Right to SelfOrganization

Constitutional Basis of the

Right to Self-Organization
Art. III, Sec. 8. The right of the people,
including those employed in the public or
private sectors, to form unions,
associations, or societies for purposes not
contrary to law shall not be abridged.
Art. XIII, Sec. 3. The State shall guarantee
the rights of all workers to self-organization,
collective bargaining and negotiations, and
peaceful concerted activities including the
right to strike in accordance with law.

Right to Self-Organization,
To form, join and assist labor
organizations for the purpose of
collective bargaining through
representatives of their own choosing;
To engage in lawful concerted activities
for the same purpose or for their mutual
aid and protection (Art. 252)

Right to SelfOrganization,Coverage
All persons employed in commercial,
industrial and agricultural enterprises and in
religious, charitable, medical, or educational
Ambulant, intermittent and itinerant
workers, self-employed people, rural
workers and those without definite
Employers may form labor organizations for
their mutual aid and protection.

Right to SelfOrganization,Coverage

Art. 250 : Rights of Employees in the public

Employees of government corporations
established under the Corporation Code shall
have the right to organize and bargain collectively
with their respective ERs.
All other EEs in the civil service shall have the
right to form associations for the purposes not
contrary to law.

Right to SelfOrganization,Coverage

Art. 251 :
Managerial employees are not eligible to join,
assist, or form any labor organization.
Supervisory employees shall not be eligible for
membership in a labor organization of the rankand-file EEs but may join, assist or form separate
labor organizations of their own.

1. Reys Hair Salon refused to bargain with
the union of the barbershop composed of
eight barbers on the ground that the shop
was a service establishment and the number
of the barbers was less than ten. Is the
contention tenable?
No. The law does not fix the minimum
number of employees for the exercise of the
right to self-organization and the right
extends to all types of establishments.

2. Faculty members of a non-profit school
converted their club into a labor union. Is this
Yes. Even employees in non-profit or
religious organizations are entitled to
exercise this right.

3. Is a religious sects directive to its
congregation not to join a labor union a bar
for members to form their own union?
The right of the members of a sect not to
join a labor union for being contrary to their
religious beliefs does not bar the members
of that sect from forming their own union.
(Kapatiran vs. Calleja)

Supervisory Employees
Those, who, in the interest of the ER, effectively
recommend such managerial actions if in the
exercise of such authority is not merely
routinary or clerical in nature but requires the
use of independent judgment. (Art. 218)
The criterion which determines whether a
particular employee is within the definition of a
statute is the character of the work
performed rather than the title or
nomenclature of position held. (NSRC vs.

Supervisory Employees

If the recommendation of the teacher area supervisor is

subject to evaluation, review and final approval of the
principal, is the teacher a supervisory employee? No.
This is merely ineffective or clerical recommendation.
( Laguna Colleges vs. CIR )
Supervisors were given the job of either to assist the
foreman if the effective dispatch of manpower and
equipment or execute and coordinate work plans
emanating from his supervisors. Are these supervisors
supervisory personnel? No. They only execute approved
and established policies leaving little or no discretion at
all whether to implement the said policies or not.
(Southern Philippines Federation vs. Calleja)

Non-Abridgement of the Right

to Organize

Art. 252 speaks of the illegality of the

following acts with respect to the exercise
to the right of self-organization

Undue interfere with employees and the workers
in their exercise of self-organization right

Non-Abridgement of the Right

to Organize

Alexander Reyes vs. Cresenciano Trejano , GR

No. 84433, June 1992. The right to self-organization
includes the right not to form or join a union
Airtime Specialists vs. Ferrer- Calleja, (180 SCRA
179). The intendment of the law is to grant to bonafide employees of a bargaining unit, whether
members of a labor organization or not, the right to
vote in certification elections
However, by virtue of the operation or enforcement of
a closed shop clause in a CBA, an employee may be
compelled under pain of dismissal, to become a
member of a labor union.

Non-Abridgement of the Right

to Organize
May an ER impose as condition for
employment that the applicant shall not join
a labor organization or shall withdraw from
the one he belongs to?
No. Such a condition partakes of the nature
of a yellow dog contract and constitutes
an unfair labor practice. It is interference
with the individuals right to selforganization.

Non-Abridgement of the Right

to Organize

SPFL v. Calleja, 179 SCRA 127, GR No.

80882, April 1989. The right to selforganization must be upheld in the absence
of express provision of law to the contrary. It
cannot be curtailed by a Collective
Bargaining Agreement

Labor Code Provisions on Unfair

Labor Practices
Art. 253 concept of ULP and procedure for
Art. 254 ULP by employers
Art. 255 ULP by labor organizations
Art. 267 CBA violations which are gross in
Art. 270(c) union busting involving
dismissal of union officers which threatens
existence of union

Elements of Unfair Labor

Concurrence of BOTH
1. There should exist an employer-employee
relationship between the offended party
and offender
2. Act complained of must be EXPRESSLY
mentioned and defined in the Labor Code

ULP of Employers
Interference, restraint, coercion of
employees in the exercise of their right to
self organization;
Yellow dog contract
Contracting out services or functions
performed by union members, that
interfere, restrain or coerce employees in
the exercise of their right
Company union

Company Union
Initiate, dominate, assist or otherwise
interfere with the formation or
administration of any labor organization
Includes giving of financial or other support
to it or its organizers or supporters

ULP of Employers

Wages, hours of work, terms and conditions of
Except with respect to Union Security Clauses

Dismissal or prejudice or discrimination by

reason of testimony
Violation of duty to bargain
Payment of Negotiation or Attorneys Fees
to the Union, its officers or agents
Violate CBA

ULPs of Labor

Restraint or coercion of employees in the

exercise of their right
Causing or attempting to cause employer to
discriminate against an employee
Violate duty, or refuse to bargain collectively
with employer
Causing or attempting to cause employer to
pay or deliver any money or other things of
value for services which are not performed,
including demand for union negotiation fees

ULPs of Labor
Ask for or accept negotiation or attorneys
fees from employers as part of settlement
of any issue in collective bargaining or any
other dispute
Violation of a CBA

Criminal Liability for ULPs

Only officers or agents of corporations,
associations or partnerships who actually
participated in, authorized or ratified ULPs
to be held criminally liable
On the part of the Union, its officers,
members of governing boards,
representatives or agents

Totality of Conduct

Expressions of opinion by an employer,

though innocent in themselves, may be
constitutive of ULP because of the
circumstances under which they are
uttered, the history of the employers labor
relations or anti-union bias or because of
their connection with an established
collateral plan of coercion or interference.

Union Security Clause

Stipulation in the CBA where management
recognizes membership of employees in the
union which negotiated said agreement
should be maintained or continued as a
condition of employment or retention of
Purpose is to safeguard and ensure
continued existence of the union

Union Security Clause,

Closed shop
Maintenance of membership agreement
Union shop agreement
Modified union shop
Exclusive Bargaining Agreement
Bargaining for members only agreement
Agency shop agreement
Preferential hiring agreement

Legal Principles Pertinent to

Union Security Clause

Employer must still afford employee due


Collective bargaining and

administration of

Collective Bargaining
A democratic framework to stabilize Er-Ee
relations, to create a climate of sound and
stable industrial peace
A mutual responsibility & legal obligation of
the employer and the union
Collective bargaining denotes negotiations
looking forward to a collective agreement,
however, it is a continuous process.

Collective Bargaining,
Negotiation of wages, hours & terms,
conditions of employment
Execution of written contract embodying
Negotiation of issues arising out of
interpretation or application of agreement
Negotiation of terms of new contract, or
proposed modifications.

Collective Bargaining,

System of collective bargaining consists of:

Negotiation of contracts (legislative phase)
Administration of contract (executive phase)
Interpretation or application (judicial phase)

Collective Bargaining, Process

(Article 256, 257, Labor Code)
Party seeking negotiation
serves written notice &
statement of proposals

Engaged Party makes reply

thereto within 10 calendar
days from receipt of notice

Conciliation proceedings
by NCMB to resolve
dispute, either motu
proprio or upon request

Request for conference

within 10 calendar days to
address differences in

Collective Bargaining
A contract
executed upon request of either the
employer or the exclusive bargaining
Incorporating all agreements reached
during negotiations

With respect to wages, hours of work and other

terms and conditions of employment
Including proposals for adjusting any grievance or
questions under such agreement

Collective Bargaining
It is more than a contract; it is a
generalized code to govern a myriad
cases which the draftsmen cannot wholly
anticipate. It covers the whole
employment relationship and prescribes
the rights and duties of the parties. It is
a system of industrial self-government
with the grievance machinery at the very
heart of the system.

Collective Bargaining,
Employer Where there is no
relationship, there
is no duty to

Where there is no
duty to bargain,
refusal to bargain
violates no right.


Collective Bargaining,

Bargaining Representative
Refers to the Legitimate Labor Organization
selected or designated by the employes. Does
not refer to its officers.
How selected is discussed under Articles 261-265
of Labor Code

Selection or Designation of
Exclusive Bargaining Agent
Manifestation of workers participatory right
PAL vs. NLRC (GR No. 85985, Aug. 1993) The
CBA may not be interpreted as cession of
employees right to participate in the deliberation
of matters which may affect their rights and
the formulation of policies relative thereto.
May be exercised by a Labor-Management
Council, aside from or instead of a union (dealing
with the employer vs. collective bargaining)
Does not preclude the exercise of an individual
employees right to raise his own grievance.

Collective Bargaining Unit

That group of jobs and jobholders
represented by the recognized or certified
union when it bargains with the employer.
May comprise all of the supervisors or,
separately, all the rank-and-file population
of the company.
The law favors having only one grouping
per category (following the united-westand, divided we fall logic), but does not
prohibit sub-groups that are appropriate.

CBU, Under DO 40-03

Refers to a group of employees sharing

mutual interests within a given
employer unit, comprised of all or less
than all of the entire body of employees in
the employer unit or any specific
occupational or geographical grouping
within such employer unit.

What is Appropriateness?
BLRs primary function, considering all
legally relevant factors.
Bargaining Unit may be determined
following the four recognized modes:

1. Substantial Mutual Interests principle or

community or mutuality of interests rule
2. Will of the Employees (Globe Doctrine)
3. Collective Bargaining History
4. Employment Status

Substantial Mutual Interests

Employees sought to be represented must
have substantial mutual interests in
terms of employment and working
Characterized by similarity of employment
status, same duties and responsibilities and
substantially similar compensation and
working conditions.

Substantial Mutual Interests


There must be a logical basis for the formation

of a bargaining unit.
Adherence to the adage Strength in Numbers
Geographical location can be completely
disregarded if communal or mutual interests of
the employees are not sacrificed.
However, if employers in two plants are clearly
distinct, each group of employees in the plants
are treated as separate units (Diatagon vs.

Cases, Substantial Mutual

SMC Employees Union vs. Confesor, (GR No.
111262, Sep. 1996)
Philtranco Service Enterprises vs. BLR, (GR
No. 85343, Jun. 1989)
SMC vs. Laguesma (GR No. 100485, Sep.
SMC Supervisors and Exempt Employees
Union vs. Laguesma (GR No. 110399, Aug.

Cases, Substantial Mutual


St. James School of Quezon City vs.

Samahang Manggagawa sa St. James
School of Quezon City (GR No. 151326, Nov.
23, 2005)

Globe Doctrine
Globe Machine and Stamping Co., 3 N.L.R.B. 294
A petitioning union claimed that there were three
separate bargaining units in the plant, whereas an
intervening union argued for treating the plant as one
overall unit.
The US NLR Board found that either arrangement
would result in appropriate bargaining units, and
concluded that the question was so evenly balanced
that the determining factor should be the desire of
the employees themselves.

Globe Doctrine
Globe Machine and Stamping Co., 3 N.L.R.B. 294
Each of the three separate units was given the
opportunity to vote for the petitioning union (and
representation as a separate unit), the intervening
union (and representation as an overall unit), or no
The Globe procedure thereby allows employees
"to determine the scope of a unit by allowing them
to cast a vote for each of several potential units
which the Board has determined are appropriate."

Globe Doctrine
US Case: Globe Machine & Stamping Co. (3
NLRB 294, 1937)
In defining the appropriate bargaining
unit, the determining factor is the
desire of the workers themselves.
Consequently, a certification election
should be held separately to choose
which representative union will be
chosen by the workers.

Collective Bargaining
Prior collective bargaining history and
affinity of employees should be considered
in determining the appropriate bargaining
The existence of a prior collective
bargaining history is neither decisive nor
conclusive in the determination of what
constitutes an appropriate bargaining unit
(see SMC vs. Laguesma, NAFTU vs. Mainit
Lumber Devt. Company Workers Union)

CB History vs. Mutuality of


NAFTU vs. Mainit SC applied mutuality of

interest among workers in sawmill division
and logging division, despite the history of
divisions being treated as separate units
and geographical distance (see also SMC vs.

Employment Status
Casual employees and those employed on
day-to-day basis must be considered
separate because there is no mutuality of
interest (Philippine Land-Air-Sea Labor
Union vs. CIR, GR No. L-14656, Nov. 1960)
Confidential employees cannot be allowed
to be included in rank-and-file bargaining
Belyca Corporation vs. Ferrer-Calleja (GR
No. 77395, Nov. 1988)

Selection of Bargaining
Certification Election
Consent Election
Voluntary Recognition

Certification Election

Process of determining by secret ballot

the sole and exclusive bargaining agent
of the employees in an appropriate
bargaining unit, for purposes of
collective bargaining.

Certification Election

No longer necessary under the following

Voluntary recognition of the employer
Employees designate the union as the bargaining

Certification Election,

Organized establishments
Petition questioning the majority status of the
incumbent bargaining agent is filed with the
DOLE during the 60-day freedom period
Verification of Petition necessary
Support of at least 25% of all employees in
bargaining unit

In unorganized establishments, certification

election shall be automatically conducted
upon the filing of a petition by a legitimate
labor organization

Party Filing Certification


Legitimate labor organization, or

Employer, when requested by a labor
organization to bargain and status of
organization is in doubt.
Note: Art. 264-A Employer is a bystander in
petitions of certification election. Employers
participation limited to:
Being notified or informed of petitions of such
Submitting list of employees to Med-Arbiter during
pre-election conference

Petition for Certification


May be filed at any time in the absence of a

CBA, except:
Certification year-bar rule
Bargaining deadlock bar rule
Contract bar rule

Petition for Certification


Certification year-bar rule A certification

election may not be filed within one year
from the date of a valid certification,
consent or run-off election, or one year from
the date of voluntary recognition.

Petition for Certification


Bargaining deadlock-bar rule.

Before the filing of a petition for certification
election, the duly recognized or certified union
has commenced negotiations with the employer
within the one-year period from the date of a valid
certification, consent or run-off election or
voluntary recognition.
A bargaining deadlock to which an incumbent or
certified bargaining agent is a party had been
submitted to conciliation or arbitration or become
the subject of a valid notice of strike or lockout.

Cases, Bargaining Deadlock

Kaisahan ng Manggagawang Pilipino
(Kampil-Katipunan) vs. Trajano (GR No.
75810, Sept. 1991)
Capitol Medical Center Alliance of
Concerned Employees-USFW vs. Laguesma
(GR No. 118915, Feb. 1997)

Contract Bar Rule

The BLR shall not entertain any petition for

certification election or any other action
which may disturb the administration of
duly registered existing collective
bargaining agreements affecting the


60-day Freedom Period

CBA is not registered with the BLR
CBA contains provisions lower than statutory
Falsified, fraudulent or misrepresented documents
Incomplete CBA
Collective bargaining and negotiations entered
into prior to the 60-day freedom period
Internal strife in the union resulting in an industrial
dispute which does not foster industrial peace.

Petition for Certification Election,

Other Grounds for Dismissal
Petitioner is not listed in DOLEs registry of
legitimate labor organizations, or whose
registration is revoke or cancelled with
Petition filed outside of freedom period,
provided that the 60 day period based on
the original CBA shall not be affected by
any amendment, extension or renewal of
the CBA
Failure to submit 25% support requirement
for filing of petition

Consent Election

Voluntarily agreed upon by the parties with

or without the intervention of the DOLE

Distinction, Certification Election

vs. Consent Election
Certification Election to determine the sole
and exclusive bargaining agent of all the
employees in an appropriate bargaining unit
for the purpose of collective bargaining;
Consent Election to determine the issue of
majority representation of all workers in the
appropriate collective bargaining unit mainly
for the purpose of determining the
administrator of the CBA; not for the purpose
of determining the bargaining agent for
purposes of collective bargaining.

Voluntary Recognition
Process whereby the employer recognizes a
labor organization as the exclusive
bargaining representative of the employees
in the appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
Available only in unorganized


What is Certification Election?

Certification election is a process of determining through secret ballot the sole and exclusive bargaining agent (SEBA) of all
the employees in an appropriate bargaining unit for the purpose of collective bargaining.
2.Where does a union file a petition for certification election (PCE)?
A PCE is filed at the Regional Office which issued the certificate of petitioning unions certificate of registration/certificate of
creation of chartered local.
3.What are the requirements in filing a PCE?
Among the important requirements are the following:
a)A statement indicating any of the following:
That the bargaining unit is unorganized or that there is no registered CBA covering the employees in the bargaining unit;
If there exists a duly registered CBA, that the petition is filed within the sixty-day freedom period of such agreement;
If another union had been previously recognized voluntarily or certified in a valid certification, consent or run-off election,
that the petition is filed outside the one-year period from entry of voluntary recognition or conduct of certification or runoff election and no appeal is pending thereon.
b)In an organized establishment, the signature of at least twenty-five (25%) percent of all employees in the appropriate
bargaining unit shall be attached to the petition at the time of its filing (Section 4, Rule VIII, of the Department Order No.
4.What happens after receipt of the PCE?
The petition will be raffled to the Med-Arbiter for preliminary conference to determine, among others, the bargaining unit
to be represented, the contending unions, and the possibility of consent election.
5.What happens upon approval of the conduct of certification election by the Mediator-Arbiter?
The PCE will be endorsed to an election officer for the conduct of pre-election conference wherein the date, time and place
of election will be identified, the list of challenged and eligible voters will be made, as well as the number and location of
polling places.


6.May a PCE be denied?

Yes, a PCE may be denied if:
a)it was filed before or after the freedom period of a registered CBA;
b)the petitioner union is not listed in the DOLE Registry of legitimate labor organization;
c)the legal personality of the petitioner-union has been revoked or cancelled with finality.
7.Who will conduct the CE?
The DOLE Regional Office through the election officer conducts the certification election.
8.How is the SEBA determined?
The union that garners majority of the valid votes cast in a valid certification election shall
be certified as the SEBA.
9.May election protest be entertained?
Yes, but protest should have been first recorded in the minutes of the election proceedings.
10.What happens if the petitioner union fails to garner the majority of the valid
votes cast?
There will be no SEBA, but another PCE may be filed one year thereafter.

10.What happens if the petitioner union fails to garner the majority of the valid votes cast?
There will be no SEBA, but another PCE may be filed one year thereafter.
11.What are the requisites for certification election in organized establishments?
Certification election in organized establishments requires that:
a)a petition questioning the majority status of the incumbent bargaining agent is filed before the DOLE within the 60day freedom period;
b)such petition is verified; and
c)the petition is supported by the written consent of at least twenty-five percent (25%) of all employees in the
bargaining unit.
12.What is the requirement for certification election in unorganized establishments?
Certification election in unorganized establishments shall automatically be conducted upon the filing of a petition for
certification election by an independent union or a federation in behalf of the chartered local or the local/chapter
13.May an employer file a PCE?
Yes, the employer may file a PCE if it is requested to bargain collectively.
14.May an employer extend voluntary recognition to a legitimate labor organization without filing a PCE?
Yes, management may voluntarily recognize a union if there is no other union in the company and if other
requirements are complied with (Sec. 2, Rule 7 of D.O. 40-03).
15.What is the role of employer in certification election?
The employer shall not be considered a party to a petition for certification election, whether it is filed by an employer
or a legitimate labor organization, and shall have no right to oppose it. Its participation shall be limited only to being
notified or informed of petition for certification election and submitting the certified list of employees or where
necessary, the payrolls (Employer as Bystander Rule).

Collective Bargaining
A negotiated contract between a legitimate
labor organization and the employer
concerning wages, hours of work and all
other terms and conditions of employment
in a bargaining unit
Deemed as the law between the parties
during its lifetime
Provisions are construed liberally

Legal Principles Applicable to

A proposal not embodied in the CBA is not part thereof
Minutes of CBA negotiation have no effect if not
incorporated in the CBA
Making a promise during the CBA negotiation is not
considered bad faith
Adamant stance resulting in impasse is not bad faith
No terms and conditions may be imposed by the DOLE
or any other agency which the law and the parties did
not intend to reflect in the CBA
Signing bonus is not demandable under the law
Allegations of bad faith are erased with the signing of
the CBA

Collective Bargaining, Kinds

Single Enterprise
Between on certified labor union and one employer

Multi-Employer Bargaining
Between and among several certified labor unions
and employers
Only LLOs that are the SEBA may participate and
Only employers with counterpart LLOs which are
incumbent bargaining agents may participate
Employers must consent to multi-enterprise
bargaining may participate

Duty to Bargain

Where there is yet no CBA:

Compliance to Article 256, LC
Er and union must MEET, CONVENE and CONFER
for collective bargaining purposes
Requisites of collective bargaining must be
complied with
Er-Ee relationship
Majority status of bargaining union
Demand to negotiate

Advantage where the negotiations have no

precedent CBA: Clean slate, unencumbered by
previous agreements

Duty to Bargain

Where there exists a CBA

Neither party shall terminate nor modify such
agreement during its lifetime.
Parties may serve notice to terminate or modify
agreement during freedom period
Parties to keep the status quo during freedom
period until new agreement is reached.

Requisites in Relation to

Posting of CBA
Posted in two conspicuous places in the work
premises, at least five days prior to ratification
Mandatory requirement; non-compliance will
result in ineffectiveness of CBA (ATU vs. Trajano,
Employer responsible for posting (ALU vs. FerrerCalleja, May 1989)

Ratification by Majority of Employees in

Bargaining Unit
Registration of CBA

Refusal to Negotiate
Ignoring all notices for negotiation and
requests for counter-proposals
Refusing to bargain anew on economic
terms of the CBA, using flimsy excuses such
as questioning union
Not serving an answer
All the above are indications of bad faith

Refusal to Negotiate
Employer who violates the duty to bargain
collectively loses its statutory right to
negotiate or renegotiate terms and
conditions of the draft CBA; and may
impose the adoption of the proposals of the
union as the CBA

General Milling Corporation vs. CA,

Kiok Loy vs. NLRC
Divine Word University of Tacloban vs. SOLE

Lifetime of a CBA
Representation aspect 5 years, meaning
no petition questioning the majority status
of the incumbent agent shall be entertained
Economic and non-economic provisions
except representation renegotiated not later
than three years after its execution

Retroactivity of CBA

New CBA concluded by negotiation

The CBA or other provisions of such agreement
entered into within 6 months from expiration of
term shall retroact to the day immediately
following date of expiration
If entered into beyond 6 months, parties shall
agree on effectivity

CBA concluded through arbitral award

LMG Chemicals Corporation vs. Secretary of
DOLE, (GR No. 127422, April 2001)

Breaking the Deadlock

Conciliation and Mediation with NCMB,
Declaration of Strike or Lockout
Referral to conciliation or voluntary

Grievance and
Voluntary Arbitration


Any question by Er or union regarding

interpretation or application of the CBA, or
company personnel policies, or
Any claim by either party that the other party is
violating the CBA or company personnel policies.

Complaint or dissatisfaction arising from the

interpretation or implementation of CBA and
those arising from interpretation or
enforcement of personnel policies.

Grievance Machinery

Refers to mechanism for the adjustment

and resolution of grievances arising from
the interpretation or implementation of a
CBA and those arising from the
interpretation and enforcement of company
personnel policies.

Grievance Procedure
Internal rules of procedure established by
the parties in their CBA with voluntary
arbitration as the terminal step.
Refers to the system of grievance
settlement at the plant level as provided in
the CBA.
Consists of successive steps starting at
complainant and his immediate supervisor,
up to the level of top union and company

Grievance Procedure
All grievances submitted to the grievance
machinery that are not settled in seven
calendar days from submission shall be
referred to Voluntary Arbitration prescribed
in the CBA
Voluntary Arbitrators shall be named and
designated in advance, or include a
procedure for selection of VAs.
In case parties fail to select VA, NCMB shall

Voluntary Arbitration
Mode of settling labor-management
Parties select a competent, trained and
impartial third person
Decision based on merits of the case
Decision is final and executory

Voluntary Arbitration vs.

Voluntary Arbitration

Courts of Law

Proceedings may be Informal

Proceedings are Formal

Precedents set by other

arbitration not obligatory on VAs

Doctrine of Stare Decisis

Rules on evidence are not

imposed, hence arbitrator
determines what is admissible

Rules on evidence outline points

of admissibility of evidence

Arbitrators are highly specialized

Judges considered as generalists

Arbitrable Disputes

Contract-negotiation disputes
Terms and conditions of contracts
Collective bargaining issues
Known as arbitration of interest

Contract interpretation disputes

Arises out of existing CBAs
Known as arbitration of grievance or rights

Interplay of Jurisdiction, Labor

Arbiters vs. Voluntary Arbitrators
Jurisdiction of LA Article 223
Jurisdiction of VA- Article 267, 268
Interpretation or implementation of CBA are
disposed of by LAs by referring the matter
to the grievance machinery, of which the
terminal step is voluntary arbitration
Under Article 268, VAs may, upon voluntary
agreement of the parties hear and decide
ALL other labor disputes including ULP and
bargaining deadlocks

Interplay of Jurisdiction, Labor

Arbiters vs. Voluntary Arbitrators

Termination disputes may fall within the

jurisdiction of VAs, provided that the parties
had agreed in unequivocal language that
the termination dispute would be referred to
the grievance machinery and voluntary

San Jose vs. NLRC & Ocean Terminal
Services (GR 121227, Aug. 1998)
San Miguel Corporation vs. NLRC
Sanyo Philippines Workers Union vs.
Canizares, GR No. 101619, July 1992

Voluntary Arbitrator
Any person accredited by NCMB as such, or
Any person named or designated in the CBA
as such, or
One appointed by the NCMB in case either
party refuses to submit to voluntary

Note that VAs are not part of DOLE or any

government agency. His authority to render
arbitral awards are vested by law.

Enforcement of VAs

Article 268-A: Upon motion of any interested

party, the VA may issue a writ of execution
requiring the sheriff of the NLRC or regular
courts or public officials whom the parties
may designate in the submission agreement

Strikes, Lockouts and


Concerted Activities
People planning and acting together
One undertaken by two or more employees,
or by one on behalf of others.

Temporary stoppage of work by the
concerted action of the employees as a
result of an industrial or labor dispute.
Consists not only of concerted work
stoppages but also sitdowns, mass leaves,
slowdowns, attempts to damage, destroy or
sabotage plant equipment or facilities and
similar activities.

Cessation of work by employee in an effort
to get more favorable terms for
Concerted refusal by employees to do any
work for their employer, or work at their
customary rate of speed until the object of
strike is attained by employers concession

Characteristics of Strikes
Established relationship between strikers
and persons against whom the strike is
Relationship must be of employer-employe
Existence of dispute between the parties
and the utilization by labor of the weapon of
concerted refusal to work as a means of
persuading or coercing compliance to

Characteristics of Strikes
Even though work cessation is by
belligerent suspension, Employment
relation still continues
Work stoppage is temporary
Concerted action by employees
Striking group is a LLO, and in the case of
bargaining deadlock, the sole bargaining


Temporary stoppage of work by reason of

refusal of an employer to furnish work as a
result of an industrial or labor dispute

An employers means of protecting his
bargaining position
Employer must show that his act is primarily
defensive, and not an act of hostility to
collective bargaining or of discriminaiton.

Valid Lockouts
To forestall threatened acts of sabotage
(Rizal Cement Workers Union vs. Madrigal
In anticipation of a threatened strike where
motivated by economic considerations
In response to unprotected strike or walkout
In response to a whipsaw strike


A right given to workers to peacefully march

to and from before an establishment
involved in a labor dispute accompanied by
the carrying and display of signs, placards
and banners intended to inform the public
about the dispute.

Picketing Allowed by Law

Included in the constitutional guarantee

to engage in concerted activities for purposes of
collective bargaining for their mutual benefit and
Freedom of speech principle

Can be performed by persons even in the

absence of Er-Ee relationship

Right to peaceful picketing should be
exercised with due respect to the right of
others; coercion, intimidation or acts of
violence are strictly prohibited
Picketers cannot rightfully prevent
employees of another company which is not
their employer from entering or leaving
their rented premises (innocent bystander)

Kinds of Strikes

General occur over a whole community,
province, state or country. An extended form of
sympathetic strike; many workers stop working to
put pressure on government or paralyze economic
& social systems
Local or Particular applies only in a particular
enterprise or locality

Kinds of Strikes

Nature of the Act

Sitdown Strike Possession, trespass and
prevention of access and operation
Slowdown reduction of production output
Partial or quickie strike intermittent,
unannounced work stoppage; used
interchangeably with wildcat strike

Kinds of Strikes

Employee Interest
Primary Strike declared by employees who have a
direct and immediate interest in the subject of the
dispute between them and the Er
Secondary Strike Coercive measure adopted by
workers against an employer connected by product
or employment with alleged unfair labor conditions or
Sympathetic Strike striking employees have no
demands or grievances of their own, but strike to
directly or indirectly aid others without direct relation
to the advancement of the interest of the strikers.

Kinds of Strikes
Economic Strike one intended to force
wage and other concessions from the
employer, which he is not required by law to
Unfair Labor Practice Strike called against
the ULP of the employer, usually for the
purpose of making him desist from further
committing such practices. Called for
mutual protection, and for the
discontinuance of employer abuses.

Avoidance of Strikes
Parties must first exhaust measures or
remedies that will avoid the strike, akin to the
doctrine of Exhaustion of Administrative
Only when non-disruptive alternatives have
proved unsuccessful may strikes be deemed
Jumping the gun on the grievance
procedure/voluntary arbitration of a dispute
will mean that the strike is PREMATURE, thus

Avoidance of Strikes
Once an issue has been submitted for
conciliation, mediation or compromise, the
employees cannot resort to a strike.
Discussions during conciliation proceedings
are confidential and treated as privileged
Parties can enter into compromise
agreements to avoid a strike, which
compromise shall be immediately final and

Labor Code Provisions

Protecting the Right to Strike
Art. 260 Not subject to labor injunction or
restraining order
Art. 254 No discrimination against striker
in the exercise of the right
Art. 270(a) Preservation of employment
Art. 270(c) Prohibition on Strike-breakers

Strikes, Mandatory
First requisite: Valid and factual ground
(1) CBA Deadlock; and
(2) Unfair labor practice (ULP).
Second Requisite: Notice (of Strike or
(1) CBA Deadlock - 30 days from intended
date of strike
(2) Unfair labor practice (ULP) 15 days.

Strikes, Mandatory
Third requisite: Notice to NCMB-DOLE at least
24 hours priot to the taking of the strike or
lockout vote (secret ballot)
Decision to conduct vote
Date, time and place
Fourth Requisite: Strike or Lockout Vote
Majority approval required
Must be implemented even in cases of

Strikes, Mandatory
Fifth requisite: Strike/Lockout Vote Report
Submitted at least seven days prior to strike/lockout
If report submitted during cooling off period, seven day
waiting period begins on the day following the cooling
off period
If for union busting, cooling period may be dispensed
Sixth Requisite: Cooling Off Period
Reckoned from filing of notice of strike/lockout
30 days for deadlock, 15 for ULP
If strike is for union-busting, period is dispensed with

Strikes, Mandatory
Seventh requisite: Waiting period
Seven days from submission of strike vote

Nota Bene: Strike Rules






Failure to comply with requisites will render the strike or

lockout illegal.
A strike or lockout based on non-strikeable issues is
A strike or lockout is illegal if the issues involved are
already subject of compulsory or voluntary arbitration or
conciliation or the steps in grievance machinery are not
A strike or lockout is illegal if unlawful means were
employed or prohibited acts or practices were committed
(e.g., Use of force, violence, threats, coercion, etc.;
Barricades, blockades and obstructions of ingress to
[entrance] or egress from [exit] the company premises).
A strike or lockout is illegal if the notice of strike or notice
of lockout is already converted into a preventive
mediation case.

Nota Bene: Strike Rules





A strike or lockout is illegal if staged in violation of the

No-Strike, No-Lockout clause in the collective
bargaining agreement.
A strike or lockout is illegal if staged in violation of a
temporary restraining order or an injunction or
assumption or certification order.
A strike is illegal if staged by a minority union.
A strike or lockout is illegal if conducted for unlawful
purpose/s (e.g.: Strike to compel dismissal of employee
or to compel the employer to recognize the union or
the so-called Union-Recognition Strike)
The local union and not the federation is liable to pay
damages in case of illegal strike.

Preventive Mediation

The NCMB has the authority to convert a notice of strike

filed by the union into a preventive mediation case if it finds
that the real issues raised therein are non-strikeable in
NCMB has duty to exert all efforts at mediation and
conciliation to enable parties to settle the dispute amicably
and in line with the state policy of favoring voluntary modes
of settling labor disputes.
Once a notice of strike/lockout is converted into a preventive
mediation case, it will be dropped from the docket of notices
of strikes/lockouts.
Once dropped therefrom, a strike/lockout can no longer be
legally staged based on the same notice. The conversion
has the effect of dismissing the notice.

Illegal Strikes

Those that are expressly prohibited by law

Does not comply with statutory requirements
Declared for an unlawful purpose
Employs unlawful means
In violation of an existing injunction
In violation of assumption or certification order
Violation of no-strike, no-lockout clause
Minority union calls strike
Strike by a non-registered union
Premature strike

Assumption of Jurisdiction
Occurs when labor dispute that caused or
may cause strike is in an industry
indispensable to the national interest
DOLE Secretary assumes jurisdiction and

May decide the case, or

Certify the same to the NLRC for compulsory

The power of assumption of jurisdiction over

labor disputes in these industries is in the
nature of the POLICE POWER measure

Effects of Assumption
Automatically enjoins intended or impending
strike or lockout
All striking or locked out employees shall
return to work immediately

Note that striking employees are not considered to

have abandoned their employment, but only ceased
from their labor

Employer shall resume operations and admit

all workers under same conditions pre-strike
No Motion for Reconsideration will stay the
assumption order

Wages to be paid during

No work, no pay rule applied

ULP strike
Unconditional and voluntary offer to return to
work is refused by employer
Employees are discriminated against despite a
Non-participating employees were locked out by
Reinstatement no longer possible

Prohibited Activities

Article 270 - Note prohibitions on:

Labor Organizations
Third Persons
Public Officials or Employees

Return to Work Order

Enjoins striking workers to RETURN TO
Defiance of RTWO is considered an illegal
Strike becomes illegal
Defiant strikers may be sanctioned with
disciplinary measures, e.g. dismissal or loss
of employment status or criminal

Improved Offer Balloting

NCMB shall conduct a referendum by secret
ballot on or before 30th day of the strike;
If majority of union members accept offer

Striking workers shall return to work immediately

Employer readmits striking workers upon signing
of agreement

Initiated when EMPLOYER makes an offer

that is, in his opinion, better than his
previous stance in the labor dispute

Reduced Offer Balloting

NCMB shall conduct a referendum by secret

ballot on or before 30th day of the lockout;
If majority of board members, trustees or
directors accept offer
Locked out workers shall return to work
Employer readmits workers upon signing of

Initiated when STRIKERS make an offer that

is, in their opinion, more acceptable than
their previous stance in the labor dispute

Post Employment
Security of Tenure
Termination of Employment

Security of Tenure
Defined: The constitutional right granted
the employee that the employer shall not
terminate the services of an employee
except for JUST CAUSE, or when
It extends to regular (rank and file,
managerial) as well as non-regular
employment (probationary, seasonal,
Applies as protection from unwarranted and
unconsented demotion and transfer

Kinds and Forms of Employment

Article 286


Other forms
Fixed Period

Regular Employment
Employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of
the employer
One year of service has been rendered,
whether continuous or broken, with respect
to the activity in which he is employed

Determining Regular
Nature of Work Test Whether or not there is
reasonable connection between the particular
activity performed by the employee in relation
to the usual business or trade of the employer
Period of Service Test Employees length of
service is at least one year, whether
continuous or broken
Probationary Employee Test Whether or not
the employee is allowed to work after the
lapse of the probationary period.

Casual Employment
Employee has been engaged to perform
activities which are not necessary or
desirable in the usual trade or business of
the employer
Once a casual employee has rendered at
least one year of service, his status
becomes REGULAR
The purpose of this rule is to honor the
constitutional guarantee of security of
tenure and right to self-organization

Project Employment

Employee has been engaged for a SPECIFIC

project or undertaking
the completion or termination of the project has
been determined at the time of engagement of
the employee
REGULAR STATUS vested when
Continuous re-hiring of project employees even after
the cessation of a project for the same tasks or nature
of tasks
Tasks performed by project employee are vital,
necessary and indispensable to the usual business or
trade of the employer

Project Employees

Exodus International Construction Corporation, et al. v.

Guillermo Biscocho, et al., G.R. No. 166109, Feb. 2011:
Two types of employees in the construction industry:
Project employees or those employed in connection with a
particular construction project or phase thereof and such
employment is coterminous with each project or phase of the
project to which they are assigned.
Non-project employees or those employed without reference to any
particular construction project or phase of a project; when one
project is completed, employees are automatically transferred to
the next project awarded to employer. There was no employment
agreement given employees which clearly spelled out the duration
of their employment and the specific work to be performed and
there is no proof that they were made aware of these terms and
conditions of their employment at the time of hiring.

Fixed Period Employment

Employment is for a pre-determined period
established at the time of engagement
Validity of Fixed Period Employment:

1. fixed period of employment was knowingly and voluntarily

agreed upon by the parties without any force, duress, or
improper pressure being brought to bear upon the
employee and absent any other circumstances vitiating
his consent; or
2. It satisfactorily appears that the employer and the
employee dealt with each other on more or less equal
terms with no moral dominance exercised by the former or
the latter. (Lynvil Fishing Enterprises, Inc. vs. Andres
G. Ariola, et al., G.R. No. 181974, Feb. 2012)

Probationary Employment

Management Prerogatives
Our laws recognize and respect the exercise by management of
certain rights and prerogatives. For this reason, courts often
decline to interfere in legitimate business decisions of
employers. In fact, labor laws discourage interference in
employers judgment concerning the conduct of their business.
(Philippine Industrial Security Agency Corporation vs. Aguinaldo,
G. R. No. 149974, June 15, 2005; Mendoza vs. Rural Bank of
Lucban, G.R. No. 155421, July 7, 2004).
An employer can regulate, generally without restraint,
according to its own discretion and judgment, every aspect of
its business. (Deles, Jr. vs. NLRC, G. R. No. 121348, March 9,
This privilege is inherent in the right of employers to control and
manage their enterprise effectively. (Mendoza vs. Rural Bank of
Lucban, G.R. No. 155421, 07 July 2004).

Extent of management

regulate and control all aspects of employment in their

business organizations. Such aspects of employment
include hiring, work assignments, working methods,
time, place and manner of work, tools to be used,
processes to be followed, supervision of workers,
working regulations, transfer of employees, work
supervision, lay-off of workers and the discipline,
dismissal and recall of workers. (Philippine Airlines,
Inc. vs. NLRC, G. R. No. 115785, Aug. 4, 2000).
Management retains the prerogative to change the
working hours of its employees. (Sime Darby
Pilipinas, Inc. vs. NLRC, G.R. No. 119205, 15 April 1998,
289 SCRA 86).

Extent of Management

Extent of management
A transfer means a movement (1) from one position to
another of equivalent rank, level or salary, without a break
in the service; or (2) from one office to another within the
same business establishment. (Sentinel Security Agency,
Inc. vs. NLRC, G. R. No. 122468, Sept. 3, 1998).
Prerogative of management to transfer an employee from
one office to another within the business establishment
upheld, provided

1. There is no demotion in rank or diminution of salary, benefits, and

other privileges, and;
2. Action is not motivated by discrimination, made in bad faith, or
effected as a form of punishment or demotion without sufficient
cause. (Mendoza vs. Rural Bank of Lucban, G. R. No. 155421, July
7, 2004; Benguet Electric Cooperative vs. Fianza, G. R. No.
158606, March 9, 2004).

Transfer, tests

Must be exercised without grave abuse of discretion

Basic elements of justice and fair play adhered to.
Employer must be able to show that the transfer is
not unreasonable, inconvenient or prejudicial to the
employee, otherwise, the employees transfer is
tantamount to constructive dismissal. (The
Philippine American Life and General
Insurance Co. vs. Gramaje, G. R. No. 156963,
Nov. 11, 2004; Globe Telecom, Inc. vs.
Florendo-Flores, G. R. No. 150092, Sept. 27,


William Endeliseo Barroga vs. Data Center

College of the Philippines, et al., G.R. No.
174158, June 2011
Constructive dismissal is quitting because continued
employment is rendered impossible, unreasonable or
unlikely, or because of a demotion in rank or a
diminution of pay. It exists when there is a clear act of
discrimination, insensibility or disdain by an employer
which becomes unbearable for the employee to
continue his employment.
It is management prerogative for employers to transfer
employees on just and valid grounds such as genuine
business necessity, e.g. financial constraints

No vested right in position