LABOR LAW II REVIEWER (PART I)

 SEE ALSO: LABOR LAW II REVIEWER (thelawyalstudent.blogspot.com)

PART I. LABOR IN GENERAL

1. COMPONENTS OF LABOR LAW

        a Labor Standards

        b. Labor Relations

        c. Social Legislations

2. LABOR LAWS VS. SOCIAL LEGISLATION

 

3. BASES OF LABOR LAWS

 

PART II. FUNDAMENTAL PRINCIPLES

1. PRESIDENTIAL DECREE NO. 442

Name of Decree -Labor Code of the Philippines (Art. 1)

The labor code is considered as the charter for human rights and a bill of obligations for every workingman.

 

SCOPE OF LABOR RELATONS

All types of employment, profit or non-profit.

 

CONCEPT OF LABOR RELATIONS

The term denotes all aspects of employer-employee relationship which involve concerted action on the part of the workers. It is usually associated with all the ramifications of unionism, collective bargaining, and negotiation, and concerted activities such as strike, picket, mass leave etc.

 

PURPOSE OF LABOR RELATIONS

It is the object of labor relations to adjust and align the conflicting interest between labor and management and to deter the incubation of industrial dispute which may inevitably lead to convulsive strife or civil war.

 

WHO ARE THE PARTIES IN LABOR RELATIONS CASE?

a.    The active parties;

1.       The employees;

2.      The management;

b.    Passive parties;

3.      The public;

4.      The state.

 

The relations between labor and capital is not merely contractual but so impressed with public interest that labor must yield to the common good.

 

2. RELATED LAWS

 

3. EFFECTIVITY (Art. 2 & 317 (302) LC

Effectivity – Six (6) months after publication. Signed March 1, 1974.

Art. 317 (302). Repealing Clause.

 

4. DECLARATION OF BASIC POLICY (Art. 3)

The state shall:

1.       Afford full protection to labor

2.      Promote full employment

3.      Ensure equal work opportunities regardless of sex, race or creed

4.      Regulate the relations between workers and employees

5.      Ensure the right of workers to;

a.     Self-organization

b.     Collative bargaining

c.      Security of tenure

d.     Just and humane conditions of work.

 

ARTICLE XIII, SECTION 3 OF THE 1987 CONSTITUTION

The State shall:

1.    afford full protection to labor, local and overseas,

2.    organized and unorganized, and promote full employment and

3.    equality of employment opportunities for all.

 

5. CONSTRUCTION (Art. 4) -the labor code shall be construed in favor of labor.

The protection of labor clause under the constitution is not designed to oppress or destroy capital.

The Labor Code mandates capital and labor to not act oppressively against each other or impair the interest or convenience of the public under the principle of non-oppression.

 

6. ADMINISTRATION/APPLICABILITY (Art. 5 & 6)

The administration is primarily lodged under the Department of Labor and Employment.

RULES AND REGULATIONS shall become effective fifteen (15) days after announcement of their adoption in the newspaper of general circulation.

APPLICABILITY -apply to all workers, whether agricultural or non-agricultural, except as may otherwise be provided.

 

7. STAGES OF EMPLOYMENT

 

PART III. EMPLOYERE-EMPLOYEE RELATIONSHIP

 

Art. 219 [212]

EMPLOYEE, DEFINED

(f.) 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 unfair labor practice if he has not obtained any other substantially equivalent and regular employment.

An employee may be:

1.     Indirect employee

2.    Direct employee

EMPLOYER, DEFINED

One who hires the services of another and pays him compensation. Under the labor code, it (e.) 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 employer.

 

5. MANAGEMENT PREROGATIVES

Is the inherent right of the employer to regulate all aspects of employment.

 

There are two limitations to management prerogative, namely:

1.       Good faith

2.      Employee rights.

 

“Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his own discretion and judgement, 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.” (Rural Bank of Cantilan, Inc. v. Julve, G.R. No. 169750, 27 Febuary 2007)

 

“Further, management retains the prerogative, whenever exigencies of the service so require, to change the working hours of its employees.” (Unicorn Safety Glass, Inc. v. Basarte, G.R. no. 154689, 25 November 2004).

 

“The free will of management to conduct its own business affairs to achieve its purpose cannot be denied.” (SCA Hygiene Products Corporation Employees Association-FFW v. SCA Hygiene Products Corporation, G.R. No. 182877, 09 August 2010).

 

“The law must protect not only the welfare of employees, but also the right of employers.” (Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 39 January 2009)

 

LIMITATIONS OF MANAGEMENT PREROGATIVE

“Management Prerogative aree “not magic words uttered by an employer to bring him to a realm where our labor laws cannot reach.” (SPI Technologies, Inc. v. Mapua, G.R. no. 191154, 07 April 2014)

 

“By its very nature, encompassing as it could be, management prerogative must be exercised in good faith and with due regard to rights of labor -verily, with the principles of fair play at heart and justice in mind.” (Unicorn safety glass, Inc. v. Basarte, G.R. No. 154689, 25 November 2004)

 

1.     GOOD FAITH

2.    RIGHTS OF LABOR (EMPLOYEE’S RIGHT)

 

Reference: Management Prerogative – Labor Law PH

 

PART IV. CLASSIFICATION OF EMPLOYEES

1.     SPECIAL GROUP OF EMPLOYEES (BOOK III)

a.     Women

 

b.     Minors

Minimum employable age -no child bellow 15 years age shall be employed.

EXC: except when her works directly under the sole responsibility of his parents or guardian and;

His employment does not interfere with his schooling

No case allowed in employment of persons below 18 years of age in hazardous or deleterious nature.

c.      House helpers

Domestic or household services shall mean service in the employer’s home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer’s household, including services of family drivers.

 

Art. 143. Assignment to Non-household work. No householder shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural workers.

 

Art. 147. Indemnity for unjust termination.

                                                               i.      Fixed contract -cannot be terminated before expiration of the term except for just causes.

1.       Indemnity shall be that already earned plus payment of 25 days.

                                                             ii.      If no term stipulated -employer or house helper may terminate the relationship 5 days before intended termination of service.

 

d.     Homeworkers

Who employs a homeworker?

          Art. 153.

 

2.    SPECIAL WORKERS (BOOK IV)

a.     Apprentices

(a) "Apprenticeship" means practical training on the job supplemented by related theoretical instruction.

 

(b) An "apprentice" is a worker who is covered by a written apprenticeship agreement with an individual employer or any of the entities recognized under this Chapter.

 

QUALIFICATIONS

1.       At least 14 years of age

2.      Possesses vocational aptitude and capacity for appropriate test

3.      Possess the ability to comprehend and follow oral and written instructions

4.      Other qualifications as may be issued by the secretary of labor

EMPLOYMENT OF APPRENTICES is only on highly technical industries.

The period of apprenticeship shall not exceed six months.

Wage or salary rate of not less than 75% of the applicable legal minimum wage.

 

b.     Learners

ART. 73. Learners defined. - Learners are persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed three (3) months.

ART. 74. When learners may be hired. - Learners may be employed when no experienced workers are available, the employment of learners is necessary to prevent curtailment of employment opportunities, and the employment does not create unfair competition in terms of labor costs or impair or lower working standards.

Wage or salary rate of not less than 75% of the applicable legal minimum wage.

c.      Handicapped

ART. 78. Definition. - Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury.

Wage or salary rate of not less than 75% of the applicable legal minimum wage.

ART. 81. Eligibility for apprenticeship. - Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired.

 

3.    KINDS OF EMPLOYMENT (BOOK VI)

a.     Regular

Art. 295. The employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual trade or business of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonable in nature and the employment is for the duration of the season.

b.     Casual

Deemed to be casual if not covered by paragraph of Art. 295.

c.      Project

where the employment has been fixed for a specific project or undertaking the completion

d.     Seasonal

…and the employment is for the duration of the season.

 

e.      Fixed Term

or termination of which has been determined at the time of the engagement of the employee

 

f.        Probationary

Probationary period shall not exceed 6 months from the date the employee started working, unless it is covered by apprenticeship agreement stipulating a longer period.

 

TERMINATED BY

a.     Just cause

b.     When he fails to qualify as a regular employee in accordance with the reasonable standards of the employer.

 

c.      An employee who is allowed to work after a probationary period shall be considered a regular employee.

 

4.    KINDS OF EMPLOYEES (BOOK V)

TYPES OF EMPLOYEES

1.     Managerial employee is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

2.    Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but required th4 use of independent judgement.

3.    All employees not falling within any of the above definitions are considered Rank-and-file employees.

What is controlling is the actual exercise of functions and not the name given to the position.

May a supervisory employee become a managerial employee?

The exercise of independent judgement qualifies a supervisory employee to become a managerial employee. However, if his recommendation is not effective and the same is still subject to the approval of higher management authorities or his authority is not effective and the same is still subject to the approval of higher management authorities or his authority is merely routinary or clerical in nature, no independent judgment is involved. As such, the supervisor remains as such or falls under the category of a rank-and-file employee.

                                                            a.         Religious Objectors

                                                            b.         Cooperatives

c.         Security Guards

 

                                                D.        Confidential Employees

                                                E.         Private Sector Employees

                                                F.         Public Sector Employees

 

 

LABOR RELATIONS - BOOK FIVE

 

PART I          DECLARATION OF POLICY

Art. 211. Declaration of Policy.

  1. It is the policy of the State:
     
    1. To 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;
       
    2. To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development;
       
    3. To foster the free and voluntary organization of a strong and united labor movement;
       
    4. To promote the enlightenment of workers concerning their rights and obligations as union members and as employees;
       
    5. To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes;
       
    6. To ensure a stable but dynamic and just industrial peace; and
       
    7. To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare.
       
  2. To encourage a truly democratic method of regulating the relations between the employers and employees by means of agreements freely entered into through collective bargaining, no court or administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989)

           

 

            PART II                  JURISDICTION

 

PIONEER TEXTURIZING CORP. VS. NLRC,

G.R. NO. 118651, OCTOBER 16, 1997

 

YUPANGCOP COTTON MILLS VS. MENDOZA,

G.R. NO. 139912, MARCH 3, 2005

 

GARCIA VS. PAL, G.R. NO. 164856,

JANUARY 20, 2009

 

ST. MARTIN FUNERAL HOME VS. NLRC,

G.R. NO. 130866, SEPTEMBER 16, 1998

 

                                    1.          Jurisdiction of Labor Arbiter                                             Article 224 LC (217)

2.         Jurisdiction of Secretary of Labor

3          Jurisdiction of Regional Director

 

A.         Visitorial / Enforcement Power                            Article 128 LC

            B.         Recovery of Wages / Money Claims                  Article 129 LC

 

4.         Jurisdiction of Voluntary Arbitrator                                 Articles 273-274 LC

(260-261)

5.         Jurisdiction of the Regular Court

6.         Jurisdiction of Securities and Exchange (SEC)

                                    7.         National Conciliation Mediation Board (NCMB)

                                    8.         Jurisdiction of Bureau of Labor Relations (BLR)                       Articles 232-249 LC

(226-240)

 

PART III                 NATIONAL LABOR RELATION COMMISSION (NLRC)            Articles 220-231 LC

(213-225)

                                    2011 New Rules of Procedure

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