Updates on Labor

Law and
Jurisprudence
Resource Speaker:

Atty. Apollo X.C.S.

Sangalang

Why study Labor Law?

Because our employment system is highly
regulated.
Because employees are favored by our laws.
Because you need to be sure that you are getting
the right kind of legal advice.
Because you dont want to get your business or
company into trouble, especially if you have no or
little access to expert legal help.
Because you want to deal with employees and
their unions in the most effective way.

Disclaimer
This seminar will not make you instant lawyers
or experts in Labor Law.
This is not a comprehensive study of the entire
field of Labor Law.
The study of Labor Law is not a one-time
course or undertaking.
This seminar needs focus and attention from
participants, with some amount of interest in
law in general, and Labor Law in particular.

What is Labor Law?

It is the field of law that defines the
relationship between employer and their
employees, as well as certain third parties,
in connection with employment.
It establishes the rights of each parties
And determines their duties and
obligations.
It also defines the role of government.

Where do you find

Labor Law?
Constitution
Decisions of the Supreme Court (Jurisprudence)
Civil Code and Revised Penal Code
Special statutes that are not yet codified
American jurisprudence
LABOR CODE
Labor regulations.

Where do you find

Labor Law?
Bible:
You have six days each week for your ordinary
work, but on the seventh day you must stop
working. This gives your ox and your donkey a
chance to rest. It also allows your slaves and the
foreigners living among you to be refreshed.
(Exodus 23:12 NLT)
Do not rob or defraud your neighbor. Do not
make your hired workers wait until the next day
to receive their pay. (Leviticus 19:13 NLT)

Classification of Labor
Law
Labor Relations
Labor Standards and Social Legislation
Terms and Conditions of Employment

The Labor Code

The Labor Code (Presidential Decree No.
442, as amended) revolutionized our
employment system on May 1, 1974.
What is a code?
What does the Labor Code contain?
What does it exclude?
What has it done to Labor Law in general?

Parts of the Labor Code

Book 1: Pre-Employment (with the Preliminary
Title)
Book 2: Human Resources Development Program
Book 3: Conditions of Employment
Book 4: Health, Safety and Social Welfare Benefits
Book 5: Labor Relations
Book 6: Post Employment
Book 7: Transitory and Final Provisions

Who are covered by

Labor Law?
Labor Law applies only if an employeremployee relationship exist.
It applies to employers and their
employees, as well as to certain third
parties.
Third Parties:
Recruitment agencies in overseas contract
workers cases.
Indirect employer in job contracting
arrangements.

Who are EXEMPTED

from Labor Law?
No employer-employee relationship:
The Principal and his Agent.
The Capitalist Partner and his Industrial
Partner.
The Project Owner and his Contractor.

Rule No. 1: Labor Law applies only when

there is an employer-employee
relationship.
Exception to the Rule: Non-employment
related.

Test of Employment
Four-fold Test (or the 4 Elements):
SELECTION AND PLACEMENT
PAYMENT OF WAGES
POWER OF DISMISSAL
POWER OF CONTROL
What is Management Prerogative?

Control Test
The power of one party to determine, not
only the end result of the work, but also the
manner of doing the work is the POWER OF
CONTROL.
Only an employer has the power of control
over his employees.
Illustrations:
Job contracting arrangements.
Independent contracting arrangements.

Classification of
Employees
Based on Employer: Civil Service and non-Civil
Service (including Private and Employees of GOCCs).
Based on Security of Tenure: Regular and NonRegular.
Based on Function: Rank-and-file and Non-rank-andfile (including Managerial, Confidential & Supervisory).
Based on Nature: Agricultural and Non-Agricultural.
Based on Time and Motion: Field Personnel, PieceRate, Task-based, Domestic & Personal Assistants, etc.

Labor Standards
The minimum requirements of law with respect to
hours of work, rates of pay, and other terms and
conditions of employment is Labor Standards.
Constitutional Right to Humane Conditions of Work
and to a Living Wage.
Rule It is prohibited to have terms and
conditions of employment lower than what
the law provides.
What are the consequences of non-compliance with
Labor Standards?

Labor Standards
Updates
Download from the Bureau of Working Conditions
website:

Handbook
of
Workers
Statutory
Monetary
Benefits,
2012
Edition
(updated as of January 10, 2012)
Other government websites:

www.dole.gov.ph (DOLE website & portal)

www.nwpc.dole.gov.ph (Minimum wage)
www.bwc.dole.gov.ph (Labor standards)
www.oshc.dole.gov.ph (Health & safety)

Labor Standards
Updates
Download from the National
Productivity Commission website:

Wages

and

Wage Order No. NCR-17 (issued May

17, 2012, but effective on June 3, 2012 with
second tranche on November 1, 2012)
Other government websites:

www.dole.gov.ph (DOLE website & portal)

www.nwpc.dole.gov.ph (Minimum wage)
www.bwc.dole.gov.ph (Labor standards)
www.oshc.dole.gov.ph (Health & safety)

Labor Standards
Benefits
1. Minimum Wage
2. Holiday Pay

7. Service Incentive Leave

8. Maternity Leave

3. Premium Pay 9. Paternity Leave

4. Overtime Pay 10. Parental Leave
5. Night Shift Pay

11. Leave for VAWC

6. Service Charge Share

Women

12. Special Leave for

Labor Standards
Benefits
13. 13th Month Pay
14. Separation Pay
15. Retirement Pay
16. Employee Compensation (ECC) Benefits*
17. PhilHEALTH Benefits*
18. SSS Benefits*
19. PagIBIG Benefits*

Minimum Wage Law

(RA 6727)
National Wages and Productivity Commission (NWPC).
Regional Tripartite Wage and Productivity Boards.
Wage Order by Region and by Sector: Non-Agriculture,
Agriculture
(Plantation/Non-Plantation),
Cottage/Handicraft, Service/Retail, depending on number
of workers or capitalization or gross sales.
Penalty for Violation:
Imprisonment of 2 to 4 years (without probation benefits); or
Fine of P25,000 to P100,000; or both.
Plus DOUBLE INDEMNITY for the workers.

Minimum Wage (NCR)

Wage Order No. NCR-17
2012)

(May 17,

June 3, 2012:
Old COLA Integration to Basic Wage: P22 + P404
= New Basic Wage: P426
New COLA: P20
New Minimum Wage: P426 + P20 = P446

November 1, 2012:
Add P10 to New COLA: P30 + P426 = P456

Minimum Wage (NCR)

Rule:
Basic Wage: P426 effective June 3, 2012
Add: P20/P30 COLA effective June 3/November 1.
(MW: P446/P456)

Exception:
Basic Wage: P389. Add Effective COLA (P20/P30)
= Minimum Wage: P409/P419.
Sector: Agriculture, Private Hospitals with bed
capacity of 100 or less; Retail/Service Establishments
employing 15 workers or less; and Manufacturing
Establishments employing 9 workers or less in NCR.

Minimum Wage
(Region IV-A)
Rule: Wage Order No. IVA-15 (effective May 15, 2012)

Concept of Floor Wage: P255

Minimum Wage Increase Ranges: P2 to P18 (May 15, 2012)
3 Areas: Growth Corridor Areas (GCA), Emerging Growth Areas
(EGA), and Resource Based Areas (RBA) where the old MW ranges
from P165 to P253.
On May 15, 2012, the MW became P183 to P255.
Continuous increase in MW in tranches for 5 years until all Areas
reach the Floor Wage of P255.
For Establishments where MW is already above 255, a Conditional
Temporary Productivity Allowance (CTPA) of P12.50 was granted
across Areas.
For the Sugar Industry, the MW became a uniform or singular rate
of P285 plus the CTPA of P12.50.

Minimum Wage
Other Exceptions:
Civil Service (Government) under Civil Service Law.
Househelpers, including family drivers and workers
in the personal service of another under RA 7655
(P800/P650/P550). (Recently, Kasambahay Law
gave
househelpers
a
minimum
wage
of
PhP2,500.00
Barangay Micro Business Enterprises (BMBEs)
under DTI and LGU guidelines.
Distressed Establishments, but only for a period
not exceeding 1 year under NWPC guidelines.

Minimum Wage
More Exceptions:
Reduced working hours, i.e Underemployed or
those working less than 8-hours of work per day.
Reduced working days, i.e. Shortened workweek.
Workers paid be results i.e. They should be paid
not less than the minimum wage rate
proportionate to the number of working hours
they actually rendered.
Apprentices, Learners, and (unqualified) Disabled
Workers: 75% of minimum wage.

Rules on Wages
What is Wage Distortion?
What is Across-the-Board Wage Increase?

What is the Rule on Payment of Wages?

Paid in legal currency at or near the workplace.
Frequency: 2x/month not exceeding 16 days
interval.

What is the Rule on Wage Deduction?

Mandatory.
Non-mandatory: Written Authorization.

Hours of Work:
Who are covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Domestic helpers and persons in the personal service
of another;
Workers paid by results;
Field personnel and those whose time and performance
are unsupervised; and
Dependent family members of the Employer.

Who are the

Managerial Employees?
Principal Duty Management of the
establishment in which they are employed,
or a department or division thereof.
They customarily direct the work of 2 or
more employees.
They have authority to hire/fire, or their
suggestions on this matter are given weight.
They exercise Management Prerogative on
behalf of the Employer.

The Managerial Staff

Primary duty Perform work directly related
to management policies.
They customarily exercise discretion and
independent judgment.
They regularly assist managerial
employees.
They do not devote more than 20% of their
work time to activities not related to all the
above.

Normal Hours of Work

Shall not exceed 8 hours/day.
Rationale.
Broken time or workday is lawful.
Shortening of work week is lawful.

What are Hours Worked?

All time during which is required to be on
duty or at a prescribed work place.
All the time during which an employee is
permitted or suffered to work.

Principles to Determine
Hours Worked
All hours required, whether spent in
productive labor or involve physical or
mental exertion, are hours worked.
The rule on rest period.
The rule on work interruptions.

Other Rules on Work Hours

Waiting time compensable if integral part of
work.
On call compensable if time cannot be used
for personal.
Travel time if part of work, yes. Home to
work, no. Travel away from home, only if it
cuts across employees workday.
Attendance to seminar No if voluntary,
outside of work hours, no productive work
done.

Other Rules
Power interruptions yes, if less than 20
minutes. No if more, and employee leave
premises.
Union matters no, unless CBA provides
otherwise.
Attendance at hearings not compensable.
Strike participation NO.

Meal Periods
Required not less than 60 minutes
but not compensable.
Shortening to less than 60 minutes
yes, but must be paid.

Overtime Pay
Overtime Pay refers to the additional compensation
for work performed beyond 8 hours per day.
Rule: Overtime work is not permitted.
Exceptions:
When there is an emergency or urgent situation.
When completion or continuation after work hours is
necessary to prevent prejudice to business or operations.

Rate: 125% of regular hourly rate on ordinary working

days. 130% for overtime work on Rest Day
COLA not included in computation.

Overtime Pay:
Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised; and
Dependent family members of the Employer.

When Is Overtime Work

Valid & Must Be Paid?
Even if without prior permission:
The work performed was necessary.
The work benefited the Employer.
Employee could not abandon his work at
the end of normal working hours because
there is no replacement.

Undertime Not Offset

By Overtime
Undertime work on any day shall not be
offset by overtime work on any other day.
Permission granted by the Employer for the
Employee to go on leave on some other day
shall not exempt him from the payment of
additional compensation for overtime work
rendered.
Valid overtime work is always subject to
Overtime Pay.

15-Minute Break
Masters, treat your slaves
the SAME WAY. Dont
threaten them; remember,
you both have the same
Master in Heaven, and he
has no favorites.
(EPHESIANS 6:9 NLT)

Holiday Pay
Holiday Pay refers to the payment of
regular daily wage for any unworked
Regular Holiday at the rate of 100%.
If the Employee is allowed or required to
work on a Regular Holiday, he is entitled to
200% of his daily wage rate (Basic Wage +
COLA).
If 2 Regular Holidays fall on the same day
and the Employee is allowed or required to
work on such day, he is entitled to 300%.

Holiday Pay:
Who are Covered?
All employees in all establishments, for profit or not,
including daily-paid workers.
Exceptions

Government employees subject to Civil Service Law;

Managerial employees and managerial staff;
Househelpers and persons in the personal service of another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised;
Dependent family members of the Employer; and
Retail/Service Establishment regularly employing less
than 10 workers.

Rules on Holiday
Payment
Employees are entitled when they are present or on leave
with pay on the preceding workday.
Employees are NOT entitled if absent or on leave without
pay on the preceding workday, unless they work on such
Regular Holiday, in which case they are entitled to 200%.
When preceding day is non-work day or rest day, the
Employee is entitled, if he worked on the day before such
non-work day or rest day.
In case of successive Regular Holidays i.e. Holy Week, the
Employee shall NOT be entitled to the successive Regular
Holidays if he is absent or on leave without pay on the
preceding work day (Wednesday), unless he worked on the
first Holiday.

Holiday Pay Rules

continued
Seasonal workers may not be paid during off season.
Those without regular working days are entitled.
When company is on temporary or periodic
shutdown not due to business reverses, the
employee is entitled.
But when shutdown is due to business reverses, the
employee is not entitled.
If a Regular Holiday falls on the same day, the
Employee shall still be paid 100% for each days or a
total of 200%.

What are the Regular Holidays?

EO 292, as amended by RA 9849.
12 Regular Holidays: New Years Day,
Maundy Thursday, Good Friday, Araw ng
Kagitingan, Labor Day, Independence Day,
National Heroes Day, Eidl Fitr, Eidl Adha,
Bonifacio Day, Christmas Day, Rizal Day.
4 Muslim Holidays observed in ARMM (for
both Muslims and Non-Muslims) and
applicable to all Muslims outside ARMM.

What are Special Days?

EO 292, as amended by RA 9849.
3 Special Days: Ninoy Aquino Day, All Saints
Day, and Last Day of the Year.
The President or Congress may proclaim other
days as Special Day.
Unworked Special Day is NOT paid.
Work performed on a Special Day is paid 130%.
Special Work Day, on the other hand, is treated
as an ordinary work day.

What are Weekly Rest Days?

It is the duty of the Employer to provide a Rest
Day of not less than 24 hours after 6 consecutive
working days.
Old law: Rest Day is Sunday.
New law: Rest Day is any day.
Employer determines the Rest Day of the
Employee, subject to agreement and rules of
DOLE.
Employees are given preference based on
religion.

Premium Pay
(Rest Day/Special Day Pay)

Rule: Work on Rest Day (and Special Day) is not

permitted.
Exceptions (Rest Day):
When there is an emergency or urgent situation.
When work is necessary to prevent prejudice to
business or operations.

Rate: 130% of regular hourly rate on ordinary

working days. 150% if Rest Day and Special Day fall
on the same day.
COLA not included in the computation (unlike in
Holiday Pay).

Premium Pay:
Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised;
Dependent family members of the Employer.

Night Shift Differential Pay

NSD Pay refers to the the additional
compensation for each hour of work
performed between 10PM and 6AM.
Rate: 110% of the regular hourly wage rate.

Night Shift Differential Pay:

Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Field personnel and other employees whose time and
performance are unsupervised;
Workers paid by results;
Dependent family members of the Employer; and
Retail/ Service Establishment employing not more
than 5 workers.

Service Incentive Leave

The Employee is entitled to 5 days of leave with pay
for every one year of service; provided that he has
served for 1 year already.
If Employer grants vacation leave with pay of at least
5 days every year, then this is already compliance
with SIL.
Commutable to cash and becomes SIL Pay.
Part-time employees are also entitled to full service
incentive leave.
No Labor Code provisions on vacation leave or sick
leave.

Service Incentive Leave:

Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Field personnel and other employees whose time and
performance are unsupervised;
Workers paid by results;
Dependent family members of the Employer; and
Retail/ Service Establishment employing less than 10
workers.

Service Charges
Employees are entitled to a share from the Service Charge
being collected by the Employer from his customers.
Rank-and-file employees share: 85%
Managements share: 15%.
Rank-and-file employees shall receive equal share.
If abolished, the share of the Rank-and-file employees shall
be considered integrated to their wages.
If the Employer doesnt collect Service Charge, the pooled
tips shall be treated the same way as Service Charge.

Retirement Pay
Retirement age: 60 to 65 years old.
Employee must also have worked for at least 5
years for the Employer.
Rate: Equivalent to 22.5 days salary for every
year of service payable by Employer.
Distinct from the Retirement Benefits from SSS.
Excluded: Government employees; and Retail/
Service/ Agricultural Establishments employing
not more than 10 workers.

Separation Pay
Employees terminated by the Employer on the
basis of Authorized Causes are entitled to
Separation Pay.
Rate: 1 Month or Month Salary for every year
of service: Retrenchment, Closure of Business,
Serious Disease.
Rate: 1 Month or 1 Month Salary for every year of
service: Labor-saving device, Redundancy, and
Impossible Reinstatement.
Regular Allowance is included in the computation.

13th Month Pay

Rank-and-file employees are entitled to 13th
month pay; provided they worked for at
least 1 month.
Rate: 1/12 of the total basic salary earned
by an Employee in a year.
Excluded: Government employees,
Househelpers, Employees paid based on
results, and Managerial employees.

Maternity Leave
All pregnant female workers are entitled to
Maternity Leave subject to SSS Law.
60 days of the average daily salary credit for
normal birth or miscarriage.
78 days of the average daily salary credit for
ceasarian section delivery.
Requirements: Membership in the SSS with at
least 3 months contributions prior to delivery
or miscarriage.

Paternity Leave
All married male workers are entitled to
Paternity Leave of 7 calendar days with pay
for the first 4 deliveries (or miscarriage) of
his lawful wife whom he is cohabiting with.
Paternity Leave is Not convertible to cash.

Parental Leave for Solo Parents

Parental Leave shall mean leave benefits
granted to a solo parent to enable him or her to
perform parental duties and responsibilities
where physical presence is required.
The solo parent is entitled to 7 days leave with
pay.
Parental Leave is Not convertible to cash.
Requirements: At least 1 year of service and
DSWD Solo Parents ID.

Leave for Victims of VAWC

Female employees who are certified as victims
under the Anti-Violence Against Women and
their Children Act of 2004 are entitled to 10
days of leave with pay to enable her to attend to
medical and legal concerns.
VAWC Leave is Not convertible to cash.
Requirements: Certification from the barangay,
prosecutor, or clerk of court that a VAWC case
involving the victim female employee is
pending.

Special Leave for Women

Female employees who has undergone
surgery due to gynecological disorders are
entitled to 2 months leave with pay to enable
her to attend to medical and legal concerns.
Special Leave is Not convertible to cash.
Requirements: Certification from physician,
and employment service of at least 6 months
within the 12 month period prior to surgery.

Employees Compensation
Program
The ECP is designed to provide a
compensation package to Employees and
their dependents in case of work-related
sickness, injury, disability or death.
Benefits: Loss of income benefit; Medical
benefit; Rehabilitation services; Carers
allowance; and Death benefits.
Workers in the formal sector are covered
starting on day 1 of their employment.

PhilHEALTH Benefits
The National Health Insurance Program,
which is administered by PhilHEALTH,
provides financial assistance to memberEmployees when they get hospitalized.
All employees are required to be members.
Benefits: Inpatient hospital care; and
outpatient care based on a Schedule of
Benefits.

Social Security Benefits

The Social Security Program provides a package of
benefits in the event of death, disability, sickness,
maternity, and old age. It provides replacement
for income lost during these contingencies.
All employees in the private sector are
mandatorily covered, including househelpers
earning at least P1,000/ month salary.
Benefits: Sickness, Maternity, Disability,
Retirement, Death & Funeral, based on a Schedule
of Benefits.

Loan and
Miscellaneous Benefits
Socialized loans for emergency, housing and other
purposes are available to employees who are
qualified members of the SSS and PagIBIG Fund.
The duty of the Employer is to deduct and remit
the Employees contributions as well as his
required contributions to SSS, PhilHEALTH, ECC,
and PagIBIG.
Failure on the part of the Employer to remit the
mandatory contributions has serious
consequences.

Occupational Safety and

Health Standards
Every covered Employer is required to keep and
maintain his workplace free from work hazards
that are causing or likely to cause physical harm
to the workers or damage to property.
The Occupational Safety and Health Standards,
as amended, is the body of rules and regulations
that protect every worker against the dangers of
injury, sickness or death through safe and
healthful working conditions.

Special Protection
Children.
Physically-impaired.
Women.
Househelpers.
Homeworkers and the informal sector.
Filipino professionals and labor versusaliens.

Company-initiated
Benefits
Employers are not prohibited from, and in
fact encouraged to, provide terms and
conditions of employment that are better or
higher than Labor Standards.
Higher than Labor Standards Benefits are
either initiated by the Employer, on its own,
by request of the Employees, or by demand
of their Union or Association.

Non-diminution of
Benefits
The reduction or elimination of benefits
provided under the law, agreement or
voluntary practice is prohibited.

When does an act become

a practice?
If done for a long period of time (ex. Three
years).
The act is done consistently and
intentionally.
The act should NOT be a product of
erroneous interpretation of law.

Exceptions to Rule on
Non-diminution
If circumstances no longer justify
grant of benefits (Dislocation pay,
relocation allowance, per diem,
supplements, etc.)
Rule on grant of bonus
management prerogative, but not if
given as a salary supplement and
without conditions.

Labor Relations
Right to Security of Tenure.
Right to Just Share in the Fruits of
Production.
Right to Self-Organization.
Right to Bargain Collectively.
Right to Strike and Other Peaceful
Concerted Action.
Right Against Unfair Labor Practices.

Labor Relations
Updates
2011 NLRC Rules of Procedure. (Effective
August 2011)
DOLE Department Order No. 18-A Rules
Implementing Article 106 to 109 of the
Labor Code, As Amended. (Effective
December 2011)
The Rules of Procedure of the Single Entry
Approach (SEnA) (Effective March 2011)

Role of Government
Policy-Maker
Regulator
Program Administrator
Inspector
Conciliator and Mediator
Arbitrator or Arbiter or Adjudicator
Enforcer

What is a Labor
Organization?
Definition any union or association of
employees which exist in whole or in part
for the purpose of (a) collective bargaining
or (b) for dealing with employers concerning
terms and conditions of employment.

What is a legitimate
labor organization?
Definition one which is duly registered
with the Department of Labor and
Employment.

What distinguishes a
legitimate labor organization?
Right to represent its members for purposes of
collective bargaining.
Right to be certified as exclusive representative of
all employees in bargaining unit for purposes of col.
Bargaining
To be furnished financial records
To sue and be sued in its registered name
To own property
To undertake programs to benefit the org/members

Requirements for
Registration
Registration fee
Names of officers, their addresses, the
address of the org., minutes of org. meeting
and list of workers who participated.
Names of all members who comprise 20% of
all employees in the bargaining unit where it
seeks to operate.
Annual financial records.
Copies of constitution and by-laws

Purpose of registration
requirements
To prevent fraud
To protect members from unscrupulous or
fly by night unions.

Is the requirement for union

registration a violation of
the freedom to associate?
- Any group of employees may organize into a
union, even without registration.
- But registration is condition sine qua non for the
exercise of privileges.
- A group may not register but they cannot avail of
the rights of legitimate unions.
- Registration is an exercise of police powers by
the state because union is invested with public
interest.

Critical requirements to be
able to register
Membership must be at least 20% of all the
employees in the bargaining unit.

What is a bargaining
unit?
It is a group or cluster of jobs or positions
that supports the labor organization which
is applying for registration.
Test whether the bargaining unit is
appropriate-if it will best assure to all
employees the exercise of their collective
bargaining rights.

What is an employer
unit?
Refers to a case where there is only 1
bargaining unit for all the employees of the
company.
Purpose why the employer unit is
encouraged by the state.

Another way of organizing

as a labor union
Affiliation as a chapter of an existing labor
federation or a national union.
What is a labor federation or national
union?

Duty of an employer when

workers organize
Self-organization is a constitutional right.
Therefore, the company must respect the
right of employees to organize.

Penalty for infringing on

the right to unionize
Unfair labor practice is a prohibited act.
It is considered a criminal offense.
Penalty includes imprisonment and
payment of fine.

What happens when a union

is organized/registered?
It becomes entitled to the privileges of a
legitimate labor organization.
But it is not automatically a bargaining
agent or majority representative.
To be a bargaining agent, it needs to be
certified that it is the exclusive bargaining
agent.

What is needed to be Certified

as a Bargaining Agent?
It must win a certification election; or,
It is voluntarily recognized by the employer;
or,
It is selected by the employees through a
consent election.

What is a Certification
Election (CE)?
It is a process by which the members of a
bargaining unit chooses one among
contending unions to be its exclusive
bargaining agent.
Non-adversarial
Fact-Finding
Administered by DOLE

Important things related to

CE
Who can participate in
Certification Election?
Role of Employer in a Certification
Election: Neutral Observer.

When a union fights in a CE

and loses, does it mean that it
does not have any more duty
to its members?
It continues to represent its members but it
does not have the right to engage in collective
bargaining.

What is the importance of

being a bargaining agent?
A bargaining agent possesses the right, by
law, to demand from the employer that it
negotiates with it (union) terms and
conditions of employment, including wages,
hours of work, and rates of pay.

Product of Bargaining
A collective bargaining agreement or CBA, if
the union is able to have an agreement with
the employer about its proposed terms and
conditions of employment.

Recourse of Union in the

event of failed negotiations
It can engage in strike.
It can engage in other concerted activities.
All of which are protected by law if no
criminal act attends the holding of said
actions.

Win-Win Labor
Relations
1.

Master the Basic Principles of Labor Relations.

2.

Observe the Golden Rule of Human Relations.

3.

Documentation, Documentation,
Documentation!

4.

Write Clearly.

5.

Consult the Experts.

6.

Use Best Practices.

7.

Be Open-minded.

8.

Negotiate, Negotiate, Negotiate!

Thank You!
Do not twist JUSTICE in legal
matters by favoring the poor
or being partial to the rich
and powerful. Always judge
people fairly. (LEVITICUS
19:15 NLT)