Bar Review Institute

University of the Philippines College of Law

LAST MINUTE TIPS IN

LABOR LAW
BAR 2020/2021

I. Basic principles II. Existence of employer-employee

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relationship
Q: What is social justice?

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ANS: Social justice is "neither communism, Q: How may the existence of an
nor despotism, nor atomism, nor anarchy," employer-employee relationship be
but the humanization of laws and the ascertained?
equalization of social and economic forces ANS: Under D.O. 147, Sec. 3, the four-fold

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by the State so that justice in its rational and test must be satisfied, viz:
objectively secular conception may at least 1. Selection and engagement of the
be approximated. Social justice means the employee
promotion of the welfare of all the people, 2. Payment of wages
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the adoption by the Government of
measures calculated to insure economic
stability of all the competent elements of
3. Power of dismissal
4. Power to control the conduct of the
employee — “control test”
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society, through the maintenance of a
proper economic and social equilibrium in Q: What is the control test?
the interrelations of the members of the ANS: Under the control test, an
community, constitutionally, through the employer-employee relationship exists
adoption of measures legally justifiable, or where the person for whom the services are
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extra-constitutionally, through the exercise performed reserves the right to control not
of powers underlying the existence of all only the end achieved, but also the manner
governments on the time-honored principle and means used to achieve that end. [Royale
of salus populi est suprema lex. [Calalang v. Homes Marketing Corporation, G.R. No.
Williams, G.R. No. 47800 (1940)] 195190, July 28, 2014]
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Q: What are the limits of the applicability of III. Termination of employment

social justice?
ANS: The law in protecting the rights of Q: What are the causes for termination of
employees authorizes neither oppression employment?
nor self-destruction of the employer. It ANS:
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should be made clear that when the law tilts 1. Termination by Employer
the scale of justice in favor of labor, it is but a. With just cause (Art. 297)
a recognition of the inherent economic b. With authorized cause (Art.
inequality between labor and management. 298)
Never should the scale be so tilted if the c. Disease (Art. 299)
result is an injustice to the employer. [Phil. 2. Termination by Employee –
Geothermal, Inc. v. NLRC, G.R. No. 106370 Resignation (Art. 300)
(1994)]

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 a. Free and voluntary act to employee must also be given an
relinquish employment opportunity to explain. The second notice
3. Retirement (Art. 302) follows the opportunity to explain, and
a. 60-65 years old with at least 5 serves to explain the action taken by the
years of service employer. [Puncia v. Toyota Shaw/Pasig, Inc.,
b. Computation: 22.5 days per G.R. No. 214399, June 28, 2016]
year of service
Q: What are the authorized causes for
Q: What are the just causes for termination termination by the employer?
by the employer? ANS:

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ANS: The authorized causes for termination by
The just causes for termination by the the employer are: (Art. 298)

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employer are: (Art. 297) 1. Installation of labor saving devices
1. Serious misconduct a. Introduction of machinery,
a. Grave and aggravated in equipment or other device
character done in good faith and for

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b. Must relate to the the purpose of saving on
performance of the costs, enhancement of
employee’s duties efficiency, or similar aim
1. Willful disobedience of the lawful 2. Redundancy
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orders of the employer
a. Willful or intentional
b. Order must be reasonable,
a. Superfluity of positions or
services of employees
b. Positions or services are in
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lawful, and made known to excess of what is reasonably
the employee demanded by the actual
c. Order must pertain to the requirements of the
duties which he has been enterprise to operate in an
engaged to discharge economical and efficient
2. Gross and habitual negligence of manner
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duties 3. Retrenchment
3. Fraud or willful breach of trust a. Reasonably necessary and
reposed in him by the employer likely to prevent business
a. Pertains to certain acts or losses
omission b. Losses must not be de
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b. Employee must be holding a minimis but should be

position of trust and substantial, serious, actual
confidence and real, or reasonably
4. Crime against the employer, imminent
employer’s immediate family, or 4. Closure or cessation of operations
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duly authorized representative a. Decision was made in good

5. Analogous cases faith
5. Disease which is incurable in six
Q: What is the procedure for just cause months (Art. 299)
terminations?
ANS: The twin notice rule applies. The first
notice serves to explain the ground/s
alleged to be the ground of termination. The

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Q: What is the procedure for authorized ANS: Art. XIII, Sec. 3 provides for the
cause terminations? following rights of laborers:
ANS: First, two notices must be given: the 1. Full employment
first notice is given to the employee/s 2. Self-organization, collective
affected, and the second notice is given to bargaining and negotiations, and
the DOLE. Both notices must be given 1 peaceful concerted activities,
month before termination. Second, including the right to strike in
separation pay must be given to the accordance with law
employee/s affected. The computation of 3. Security of tenure
separation pay depends on the cause 4. Humane conditions of work

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invoked. If the cause is due to installation of 5. Living wage
labor saving devices or redundancy, 6. Policy and decision-making

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separation pay is 1 month per year of processes affecting their rights and
service or 1 month pay, whichever is higher. benefits as may be provided by law
If the cause is due to retrenchment or 7. Just share in the fruits of production
closure, separation pay is ½ month per year

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of service or 1 month, whichever is higher. Q: Who may join labor organizations?
However, when closure is due to serious ANS:
financial losses, separation pay may not be GENERAL RULE: All employees shall have
paid by the employer. (Art. 298) the right to self-organization and to form,

IV.
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Requirements
contracting
for labor-only
join or assist labor organizations of their
own choosing for collective bargaining.
(Sec. 3, Art. XIII, 1987 CONST.)
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● Includes government employees
Q: When is there labor-only contracting? (Sec. 2(5), Art. IX-B, Constitution)
ANS: There is “labor-only” contracting EXCEPTIONS: The following cannot form,
where the person supplying workers to an join, or assist labor organizations:
employer does not have substantial capital 1. Managerial employees (Art. 255)
or investment in the form of tools, 2. Confidential employees – those
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equipment, machineries, work premises, whose jobs involve human relations

among others, and the workers recruited information (Tunay na Pagkakaisa ng
and placed by such person are performing Manggagawa sa Asia Brewery v. Asia
activities which are directly related to the Brewery, Inc., G.R. 162025, August 3,
principal business of such employer. In such 2010)
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cases, the person or intermediary shall be 3. Members of cooperatives [Batangas-I

considered merely as an agent of the Electric Cooperative Labor Union v.
employer who shall be responsible to the Romeo A. Young, G.R. No. 62386
workers in the same manner and extent as if (1988)]
the latter were directly employed by him. 4. Employees of international
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(Art. 106) organizations given immunity from

Philippine jurisdiction [International
Catholic Migration Commission v.
V. Rights of employees and of labor Calleja, G.R. No. 85750 (1990)]
organizations; membership in unions 5. Members of the Armed Forces of the
Philippines, Philippine National
Q: What are the rights granted to workers Police, firemen, and jail guards (E.O.
by the 1987 Constitution? No. 180, Section 4)

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SPECIAL RULES: 5. To sue and be sued in its
1. Supervisors – allowed, but must be registered name; and
separate from rank-and-file 6. To undertake all other activities
employees (Art. 255) designed to benefit the
2. Ambulant, intermittent, and organization and its members,
itinerant workers; self-employed including cooperative, housing,
people; rural workers; and those welfare, and other projects not
without any definite employers – contrary to law
allowed to organize not for
collective bargaining but for mutual VI. Management prerogative

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aid and protection and other
legitimate purposes (Samahan ng Q: What is the doctrine of management

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Manggagawa sa Hanjin Shipyard v. prerogative?
Bureau of Labor Relations, G.R. No. ANS: Under the doctrine of management
211145, October 14, 2015). prerogative, every employer has the
3. Aliens – generally not allowed, but inherent right to regulate, according to his

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allowed if they have legal status and own discretion and judgment, all aspects of
the concept of reciprocity is fulfilled employment, including hiring, work
(Art. 284) assignments, working methods, the time,
4. High-level government employees place and manner of work, work
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whose functions are normally
considered as policy-making or
managerial or whose duties are of a
supervision, transfer of employees, lay-off
of workers, and discipline, dismissal, and
recall of employees. The only limitations to
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highly confidential nature – allowed, the exercise of this prerogative are those
but cannot join the organization of imposed by labor laws and the principles of
rank-and-file employees (E.O. No. equity and substantial justice. [Peckson v.
180) Robinson’s Supermarket Corporation, G.R. No.
198534 (2013)]
Q: What are the rights of legitimate labor
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organizations? VII. Illegal recruitment of overseas

ANS: Under Article 251 of the Labor Code: Filipino workers
1. To act as the representative of its
members for the purpose of Q18: What is illegal recruitment?
collective bargaining; ANS: Illegal recruitment means any act of
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2. To be certified as the exclusive canvassing, enlisting, contracting,

representative of all the transporting, utilizing, hiring, or procuring
employees in an appropriate of workers which includes referring,
bargaining unit for purposes of contract services, promising, or advertising
collective bargaining; for employment abroad, whether for profit
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3. To be furnished by the employer, or not, when undertaken by a nonlicensee

upon written request, with its or nonholder of authority. Provided, any
annual audited financial such nonlicensee or nonholder who, in any
statements; manner, offers or promises for a fee
4. To own property, real or employment abroad for two or more
personal, for the use and benefit persons shall be deemed so engaged. It shall
of the labor organization and its likewise include the commission of
members; prohibited acts, whether committed by any

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person, whether a nonlicensee, nonholder, a. Large scale – committed
or licensee (Sec. 6 of R.A. 8042, as amended against three or more persons
by R.A. 10022). Some examples of individually or as a group
prohibited acts in relation to OFWs include: b. Syndicated – committed by a
● Excessive collection of placement fee group of 3 or more persons
● Misrepresentation in relation to conspiring or confederating
recruitment or employment with one another
● Misrepresentation for purposes of
securing a license or authority under VIII. Remedies (labor standards
the Labor Code violations)

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● Inducement of a worker to quit his
present employment for another Q: What is the jurisdiction of the Labor

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unless the transfer liberates a worker Arbiter?
from oppressive terms and ANS: The Labor Arbiter has exclusive
conditions of employment original jurisdiction over the following:
● Influencing or attempting to 1. Unfair labor practice cases;

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influence any person or entity not to 2. Termination disputes;
employ any worker who has not 3. If accompanied with a claim for
applied for employment through his reinstatement, those cases that
agency workers may file involving
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● Engagement in recruitment or
placement of workers in jobs
harmful to public health or morality
wages, rates of pay, hours of
work and other terms and
conditions of employment;
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or to the dignity of the Philippines 4. Claims for actual, moral,
● Contract substitution exemplary and other forms of
● Withholding or denying of worker’s damages arising from the
travel documents before departure employer-employee relations;
for monetary or financial 5. Cases arising from any violation
consideration other than those of Article 264 of the Labor Code,
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authorized by law including questions involving

● Failure to actually deploy without the legality of strikes and
valid reasons lockouts; and
● Failure to reimburse expenses in 6. Except claims for Employees
connection with documentation and Compensation, Social Security,
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processing for purposes of Medicare 167 and maternity

employment, in cases when the benefits, all other claims arising
deployment does not actually take from employer-employee
place without the worker’s fault relations, including those of
persons in domestic or
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Q: What are the types of illegal recruitment household service, involving an

ANS: The types of illegal recruitment are: amount exceeding PHP5,000.00
1. Simple illegal recruitment – involves regardless of whether
less than three victims or recruiters accompanied with a claim for
2. Illegal recruitment involving reinstatement (Art. 224, LC)
economic sabotage (Art. 38) 7. Wage distortion disputes in
unorganized establishments not

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 voluntarily settled by the parties claimant does not seek
(R.A. No. 6727) reinstatement; and d) the aggregate
8. Enforcement of compromise money claim of each claimant does
agreements when there is not exceed P5,000.00; (Art. 129) or
noncompliance by any of the 2. before the Regional Arbitration
parties (Art. 233, LC) Branch of the National Labor
9. Money claims arising out of Relations Commission, in the
employer-employee relationship absence of any of the above
or by virtue of any law or enumerated requisites pursuant to
contract involving Filipino Article 217 of the Labor Code, except

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workers for overseas claims for employees’ compensation,
employment, including claims social security, medicare and

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for actual, moral, exemplary, and maternity benefits (Art. 217(6) )
other forms of damages (R.A.
No. 8042 as amended by R.A. Q: What is the procedure for filing an
No. 10022, Sec. 10) appeal involving labor standards

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10. Contested cases under the violations?
exception clause of Art. 128(b), ANS: The aggrieved party from a decision
Labor Code as amended by R.A. No. of the Secretary of Labor may file one
7730 motion for reconsideration within ten (10)
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Q: What is the procedure for filing a case
involving labor standards violations?
days from receipt thereof. If the motion for
reconsideration is denied, the party may
appeal via Rule 65 to the Court of Appeals
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ANS: If an employer-employee relationship within 60 days from receipt of the denial.
still exists, any aggrieved employee may file Upon denial, the party may proceed via
a complaint, regardless of the amount of Rule 45 to the Supreme Court. [St. Martin
monetary claims, before the DOLE regional Funeral Home v. NLRC, G.R. No. 130866
office, or its provincial field offices, which (1998)]
has territorial jurisdiction over the
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workplace. (Art. 128) Decisions, awards, or orders of the Labor

Arbiter shall be final and executory unless
On the other hand, if an appealed to the National Labor Relations
employer-employee no longer exists, any Commission by any or both parties within
aggrieved employee may file a complaint 10 calendar days from receipt thereof (Art.
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either: 229)

1. before the DOLE regional office,

provided, that the claim involves
recovery of wages and other
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monetary claims and benefits,

including legal interest, provided
further, the following requisites are
present: a) the claim is presented by
an employee, or a person employed
in domestic or household service, or
house helper; b) the claim arise from
employer-employee relations; c) the

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