LABREV REVIEWER

Title III
BUREAU OF LABOR RELATIONS
Art. 226. Bureau of Labor Relations. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the Department of Labor, shall
have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on all inter-union and intra-union conflicts, and all
disputes, grievances or problems arising from or affecting labor-management relations in all workplaces, whether agricultural or non-agricultural, except those
arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary
arbitration.
The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. (As amended by Section 14,
Republic Act No. 6715, March 21, 1989).

E.O. 126 transferred the conciliation, mediation and voluntary arbitration functions of the BLR to the NCMB
The principal task of the BLR inter-union and intra-union conflicts, registration and cancellation of registration of labor organizations, particularly those
involving federations, national unions or industry unions.
INTRA-UNION DISPUTES is a controversy between and among union members. (Ex. Any violation of the rights and conditions of union membership,
violation of or disagreement over any provision of the unions constitution and by-laws or disputes arising from chartering or affiliation of unions)
INTER-UNION DISPUTES is a controversy between and among legitimate labor unions. It may involve representation questions for purposes of
collective bargaining or to any other conflict or dispute between legitimate labor unions.
EFFECT OF PENDENCY OF INTER-UNION/INTRA-UNION DISPUTES:
o On the rights and obligations of the parties remain the same as that prior to the filing of the petition and continue to remain until the finality of the
decision
o On a petition for certification election not a prejudicial question and it is not a ground for suspension or dismissal of the petition for certification election
RELATED LABOR RELATIONS DISPUTES any conflict between a labor union and the employer or any individual, entity or group that is not a labor
organization or workers association. (Ex. Cancellation of union registration and interpleader)
NATIONAL CONCILIATION AND MEDIATION BOARD composed of an administrator and 2 deputy administrators and as many conciliators-mediators
as the needs of the public service requires. Their functions:
o Formulate policies, programs, standards, procedures, manuals of operation and guidelines pertaining to effective mediation and conciliation of labor
disputes
o Perform preventive mediation and conciliation functions
o Coordinate and maintain linkages with other sectors or institutions and other government authorities concerned on matters relative to the prevention and
settlement of labor disputes
o Formulate policies, plans, programs, standards, procedures, manuals of operation and guidelines pertaining to the promotion of cooperative and non-
adversarial schemes, grievance handling, voluntary arbitration and other voluntary modes of dispute settlement;
o Administer the voluntary arbitration program; maintain/update a list of voluntary arbitrators; compile arbitration awards and decisions;
o Provide counselling and preventive mediation assistance particularly in the administration of collective agreements
o Monitor and exercise technical supervision over the Board programs being implemented in the regional offices; and
o Perform such other functions as may be provided by law or assigned by the Secretary of Labor and Employment

Art. 227. Compromise agreements. Any compromise settlement, including those involving labor standard laws, voluntarily agreed upon by the parties with the
assistance of the Bureau or the regional office of the Department of Labor, shall be final and binding upon the parties. The National Labor Relations Commission
or any court, shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the
settlement was obtained through fraud, misrepresentation, or coercion.

COMPROMISE a contract whereby the parties by making reciprocal concessions, avoid a litigation or put an end to one already commenced
A compromise is conclusive and binding even if it is not judicially approved.
Dire necessity is not an acceptable ground for annulling a compromise especially when there is no showing that the employee had been forced to enter
into such compromise
However, if the consideration for the compromise was very much less than the amount which the employee was entitled, it may be set aside for being
contrary to law, morals or public policy.
Compromise through a lawyer or representative is conclusive or binding only:
1. When the client has expressed his consent to compromise; or
2. When the lawyer or representative is equipped with a SPA
Without such express consent or SPA, any compromise entered into by a lawyer or representative will not bind the party concerned, unless the latter
signs or avails of the benefits under the compromise agreement
Compromise on a final judgment valid
Remedy of the compromise is violated:
o In case of violation of a compromise agreement:
1. File the necessary action or motion to enforce the compromise; or
2. Regard the compromise as rescinded and insist upon his original demand
o In case of violation of a compromise judgment:
1. File a motion for execution, in case of non-compliance;
2. File an action to annul the compromise judgment on the ground of mistake, fraud, violence, intimidation, undue influence, or falsity in the
execution of the compromise embodied in the judgment; or
3. File a petition for relief from judgment under Rule 38 of the RoC, on the ground that the judgment was obtained through fraud, mistake, or
excusable negligence
Reduction of Attys Fees not a bar to approval of compromise
A quitclaim executed in favor of a company by an employee amounts to a valid and binding compromise agreement

Art. 228. (REPEALED by BP130)

Art. 229. Issuance of subpoenas. The Bureau shall have the power to require the appearance of any person or the production of any paper, document or
matter relevant to a labor dispute under its jurisdiction, either at the request of any interested party or at its own initiative.

Power granted to the BLR to issue subpoena extends only to matters relevant tot the labor dispute under its jurisdiction

Art. 230. Appointment of bureau personnel. The Secretary of Labor and Employment may appoint, in addition to the present personnel of the Bureau and the
Industrial Relations Divisions, such number of examiners and other assistants as may be necessary to carry out the purpose of the Code. (As amended by
Section 15, Republic Act No. 6715, March 21, 1989)

Art. 231. Registry of unions and file of collective bargaining agreements. The Bureau shall keep a registry of legitimate labor organizations. The Bureau
shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders
and decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the Secretary of Labor and
Employment, provided that no specific information submitted in confidence shall be disclosed unless authorized by the Secretary, or when it is at issue in any
judicial litigation, or when public interest or national security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the Bureau or the Regional
Offices of the Department of Labor and Employment for registration, accompanied with verified proofs of its posting in two conspicuous places in the place of
work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for registration of such
Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional Offices shall furnish the Bureau with a copy of the Collective
Bargaining Agreement within five (5) days from its submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand pesos
(P1,000.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for the effective and efficient
administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the Secretary of Labor and
Employment, Regional Directors and the Commission. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

Registration of CBA:
o Purpose: to put notice on the existence of such agreement in order to promote its stable and undisturbed administration. If a CBA is not registered,
certification election is open at any time.
o Legal effect of registration registration is not essential to its validity. However, it will not bar the holding of a C.E.
o Registration Procedure should be filed with the Regional Office of the DOLE which issued the unions certificate of registration or certificate of
creation of chartered local. If the certificate of creation of the chartered local was issued by the BLR, the application shall be filed with the R.O. of the
DOLE which has jurisdiction over the place where it principally operates. Application for registration of multi-employer CBA shall be filed with the BLR
o The CBA should be registered within 30 days from execution
o The application shall be accompanied by 2 copies of the ff documents:
CBA
Statement that the CBA was posted in at least two (2) conspicuous places in the establishment for at least 5 days before its ratification; and
Statement that the CBA was ratified by the majority of the employees in the bargaining unit
o Posting of CBA 5 days prior to its ratification, in at least 2 conspicuous places in the establishment. (mandatory requirement). If not posted, the
application shall be disapproved
Remedy from denial of CBA registration:
o Re-Filing if the application for registration was denied for failure to complete the registration requirements within the 10-day period from notice
o Appeal if the application is denied on other grounds, the remedy is to appeal within 10 days from receipt to:
BLR if the order of denial was issued by the R.O. of the DOLE
Office of the Secretary of Labor and Employment if the order of denial was issued by the BLR

Art. 232. Prohibition on certification election. The Bureau 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 parties except under Articles 253, 253-A and 256 of this Code. (As
amended by Section 15, Republic Act No. 6715, March 21, 1989)

CONTRACT-BAR PRINCIPLE the existence of a duly registered CBA will bar the holding of a C.E.
o The purpose is to promote stability and fairness in CBA
o If there is a duly registered CBA, a petition for C.E. can only be entertained within the 60-day period prior to the expiration of the 5-year term of the
CBA.
o If no petition for certification for C.E. is filed within the 60-day period prior to the expiration of the term of the CBA, the employer shall continue to
recognize the majority status of the incumbent collective bargaining agent.
EXCEPTION TO THE CONTRACT-BAR PRINCIPLE:
o Those entered into with a labor organization which has not been certified as the sole and exclusive collective bargaining representative but merely
accorded voluntary recognition by the management despite the existence of another labor organization seeking recognition
o Those which are not duly registered with the BLR or the appropriate regional office of the DOLE
o Those which are incomplete, specifically those which do not provide for economic benefits to employees
o Those hastily entered into prior to or during the 60 day period.
o Those which can no longer foster industrial peace and stability because of schism in the union.
EFFECT OF AUTOMATIC RENEWAL CLAUSE a CBA which provides for automatic renewal in the absence of notice by one of the contracting parties
of intention to alter, modify or terminate it prior to a specified period preceding the termination will operate as a bar to a C.E.. However, this rule does not
apply where a contesting union has given a timely notice to the employee or has seasonably filed a petition for certification election prior to the specified
date for automatic renewal.

Art. 233. Privileged communication. Information and statements made at conciliation proceedings shall be treated as privileged communication and shall not
be used as evidence in the Commission. Conciliators and similar officials shall not testify in any court or body regarding any matters taken up at conciliation
proceedings conducted by them.

Title IV
LABOR ORGANIZATIONS
Chapter I
REGISTRATION AND CANCELLATION

Art. 234. Requirements of registration. Any applicant labor organization, association or group of unions or workers shall acquire legal personality and shall be
entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements.
1. Fifty pesos (P50.00) registration fee;
2. The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of
the workers who participated in such meetings;
3. The names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate; (As
amended by Executive Order No. 111, December 24, 1986)
4. If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
5. Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who
participated in it. (As amended by Batas Pambansa Bilang 130, August 21, 1981)

LABOR ORGANIZATION a 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 employment.
WORKERS ASSOCIATION is intended not for collective bargaining purposes but only for the mutual aid and protection of its members and for
other legitimate purposes.
SIGNIFICANCE OF REGISTRATION:
o To act as representative of its members for the purpose of collective bargaining
o To be certified as the exclusive representative of all employees in an appropriate collective bargaining unit for purposes of collective
bargaining
o To be furnished with the employers annual audited financial statements, including the balance sheet and the profit and loss statement, upon
written request, provided that it is the duly recognized or certified collective bargaining representative of the employees in the bargaining unit;
o To own property, real or personal, for the benefit of the labor organization and its members
o To sue and be sued in its registered name
o To undertake all other activities designed to benefit the organization and its members, including cooperative, housing welfare and other
projects not contrary to law; and
o To be exempted from taxes, duties and other assessments on income and properties, including grants, endowments, gifts, donations and
contributions from fraternal and similar organization, local or foreign, which are actually, directly and exclusively used for lawful purposes.
Purpose of Registration to protect both labor and public against abuses, fraud or imposters who pose as organizers, although not truly accredited
agents of the union they purport to represent.
Constitutionality The law requiring the registration of labor organizations is not unconstitutional because it is a valid exercise of the police power,
considering that the activities in which labor organizations are engaged directly affect the public interest. Registration is merely a condition sine qua
non for the acquisition of legal personality.
Legal Personality of Labor Organizations
o A labor organization acquires legal personality and attains the status of legitimacy only upon the issuance in its name of a Certificate of
Registration.
o However, an unregistered labor organization can acquire legal personality and attain the status of legitimacy by affiliating with a duly registered
Federation or National Union, in which case, it becomes a Chartered Local, and its legal personality commences on the date of issuance of the
Certificate of Creation of Chartered Local
o A Chartered Local need not be independently registered. The intent of the law in imposing lesser requirements in the case of a chartered local of
a federation or national union is to encourage the affiliation of a local union with a federation or national union in order to increase the local
unions bargaining powers respecting terms and conditions of labor.
Effect of incorporation with the SEC does not make a labor union a legitimate labor organization. Merely gives it juridical personality before the
regular courts.
INDEPENDENT UNION a labor organization operating at the enterprise level whose legal personality is derived through independent registration.
o To register an independent union, an application for registration should be filed with the R.O. of the DOLE where it principally operates.
o Supported by the following:
1. Name of the applicant labor union, its principal address, the names of its officers and their respective addresses, approximate number of its
employees in the bargaining unit where it seeks to operate and a statement that it is not reports as a chartered local of any federation or national
union.
2. Minutes of the organizational meetings and list of workers who participated in such meetings;
3. Names of all its members compromising atleast 20 percent of the employees in the bargaining unit
4. Annual financial reports if the applicant has been in existence for one or more years. (Can be dispensed with if the labor org has not collected any
amount from the members, in which case, a statement to this effect shall be included in the application
5. Constitution and By-laws, minutes of its adoption or ratification and the list of the members who participated in it. (the list of ratifying members shall
be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting).
WORKERS ASSOCIATION an organization of workers created for the mutual aid and protection of its members for any legitimate purpose other than
collective bargaining
o To register a workers association, an application for registration should be filed with the R.O. of the DOLE where it principally operates.
o Supported by the following:
1. Name of the applicant association, its principal address, the names of its officers and their respective addresses
2. Minutes of the organizational meetings and list of workers who participated in such meetings;
3. Constitution and By-Laws which must be attached the names of ratifying members, the minutes of adoption or ratification of the constitution and by-
laws and the date when the ratification was made, unless ratification was done in the organizational meeting, in which case such fact shall be
reflected in the minutes of the organizational meeting
o Application for registration of workers association operating in one region shall further be accompanied by a Resolution of Membership of each member
association, duly approved by its board of directors
CHANGE OF NAME OF LABOR ORGANIZATIONS a notice of change of name shall be filed with the BLR or the R.O. of the DOLE where the labor
organizations certificate of registration or certificate of creation of a chartered local was issued.
o Accompanied by the ff:
1. Proof of approval or ratification of change of name; and
2. Amended constitution and by-laws
o The change of name does not affect its legal personality. All rights and obligations under its old name shall continue to be exercised by the labor
organization under its new name.
MERGER process where a labor organization absorbs another resulting in the cessation of the absorbed labor organizations existence and the
continued existence of the absorbing labor organization
CONSOLIDATION refers to the creation or formulation of a new union arising from unification of two or more unions.
In case of merger or consolidation, a notice of merger or consolidation shall be filed with:
o R.O. of the DOLE that issued the Certificate of Registration in case of independent labor unions and workers association
o R.O. of the DOLE that issued the Certificate of Creation of Chartered Local in case of chartered locals
o BLR in case of federations or national unions
Supporting Documents for MERGER: Notice shall be accompanied by the ff:
1. Minutes of merger convention or general membership meeting of all the merging labor organizations, and list of their respective members who
approved the same; and
2. Amended constitution and by-laws and minutes of its ratification, unless ratification transpired during the merger convention, which fact shall be
indicated accordingly.
Supporting Documents for CONSOLIDATION: Notice shall be accompanied by the ff:
1. Minutes of consolidation convention or general membership meeting of all the merging labor organizations, and list of their respective members who
approved the same; and
2. Amended constitution and by-laws and minutes of its ratification, unless ratification transpired during the consolidation convention, which fact shall
be indicated accordingly.
Effect of merger the legal existence of the absorbed labor organization ceases, while the legal existence of the absorbing labor organization subsists. (A
+ B = A or B)
Effect of consolidation the legal existence of the consolidating labor organization shall cease and a new labor organization is created. (A + B = C)
REMEDY re-filing of application if denial be due to failure to submit the complete requirements within the prescribed period.

Art. 235. Action on application. The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be, and attested to by its
president.

Significance of the 30-day period this ensures that any action taken by the BLR is made in the consonance with the mandate of the Labor Code. The
mere filing of the requisite documents and papers does not automatically oblige the BLR to issue a certificate of registration. The BLR is duty bound to
further check if the registration requirements under Art. 234 have been sedulously complied with.
Application for registration and all its supporting documents requires:
1. Certified under oath by the Secretary or Treasurer of the organization; and
2. Attested to by the President
Both requirements must be strictly complied with. Omission is fatal.
The Mandatory attestation requirement also applies to notice of change of name, notice of merger and notice of consolidation and all their supporting
documents
Purpose of Certification and Attestation measures against the commission of fraud. It is intended to assure the employer that the union it is dealing
with is a bona fide organization one which has not submitted false statement to the BLR.
Remedies:
o Mandamus if the legal requirements for registration are complied with
o Petition for Cancellation of Registration - for grounds provided for in Art. 239
o The remedy of certiorari is not available because the act of approving an application for registration of a labor org is not a judicial function but a
ministerial duty

Art. 236. Denial of registration; appeal. The decision of the Labor Relations Division in the regional office denying registration may be appealed by the
applicant union to the Bureau within ten (10) days from receipt of notice thereof.

Grounds for Denial of Registration:
1. Falsification or serious irregularities in the application for registration or its supporting documents
2. Non-compliance with the requirements for registration, particularly the certification and attestation requirements, or
3. Failure to complete the registration requirements within 30 days from notice
Remedy from Denial of Registration:
o Appeal if the application for registration is denied on grounds other than failure to submit the complete requirements, the remedy us to appeal the
order of denial within 10 days from receipt to the:
BLR if the order of denial was issued by the R.O. of the DOLE (An order or decision by the BLR in the exercise of its appellant jurisdiction is not
appealable to the Sec. of Labor and Employment)
Office of the Sec. of Labor and Employment if the order of denial was issued by the BLR

Art. 237. Additional requirements for federations or national unions. Subject to Article 238 (deleted phrase), if the applicant for registration is a federation or
a national union, it shall, in addition to the requirements of the preceding Articles, submit the following:
1. Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining agent in the establishment
or industry in which it operates, supporting the registration of such applicant federation or national union; and
2. The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved.

FEDERATION or NATIONAL UNION a labor organization with at least 10 affiliates or chartered locals, each of which must be a duly recognized or
certified collective bargaining agent
Registration of Federation or National Union filed with the BLR supported by the ff documents:
a) Statement indicating the name of the applicant federation or national union, its principal address, the names of its officers and their respective
addresses;
b) Minutes of the organizational meetings and the list of workers who participated in such meetings;
c) Annual financial reports if the applicant has been in existence for one or more years; (Can be dispensed with if federation or national union has
not collected any amount from the members, in which case, a statement to this effect shall be included in the application)
d) Constitution and by-laws, minutes of its adoption or ratification and the list of the members who participated in it. (the list of ratifying members
shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting).
e) Resolution of affiliation of at least 10 legitimate labor organization, whether independent or chartered locals, each of which must be a recognized
or certified bargaining representative on the establishment where it seeks to operate; and
f) Names and addresses of the companies where the affiliates operates and list of all members in each company involved.
Composition of a Federation or National Union:
1. Affiliates independently registered union, hence, they have a legal personality of their own, separate and distinct from that of their mother
union
2. Chartered Locals are not independently registered unions their legal personality is derived from their mother union or federation, upon
issuance of a certificate of creation of chartered local
3. Combination of both
Principal-Agent nature of relationship between federation and local union. The local union or affiliate is the principal, while the federation is the
agent. Thus, in collective bargaining, the principal is the local union, while the federation is the agent.
Creation of a chartered local by submitting to the R.O. of the DOLE two copies of the ff:
1. Charter Certificate issued by the federation or national union indicating the creation or establishment of the local/chapter
2. Names of the local/chapters officers, their addresses, and the principal office of the local/chapter
3. Constitution and by-laws of the local/chapter (can be dispensed with if the constitution and by-laws of the local/chapter is the same as that of the
federation or national union, in which case, the said fact shall be indicated accordingly)
The aforesaid docs should be certified under oath by the Secretary or Treasurer of the local/chapter and attested by its president.
Affiliation of an Independent Union with a federation or national union:
1. Approval of the majority of the union members in a general membership meeting duly called for the purpose; and
2. Resolution of affiliation from the board of directors of the union
Legal effect of affiliation with the federation it becomes subject to the laws of the federation. Under this principle, a federation can investigate
and expel members of the local union on the basis of the federations constitution and by-laws.
An independent union which affiliates with a federation or national union does not lose its legal personality.
The mere fact that the name of the federation is appended to the name of the affiliate union does not mean that the federation absorbed the affiliate.
Report of Affiliation affiliation of an independently registered labor union with a federation or national union shall be reported to the R.O. of the
DOLE that issued its certificate of registration. The Report of Affiliation shall be accompanied by the ff docs:
1. Resolution of the labor unions board of directors approving the affiliation
2. Minutes of the general membership meeting approving the affiliation
3. Total number of members comprising the labor union and the names of members who approved the affiliation;
4. Certificate of affiliation issued by the federation in favour of the independently registered labor union; and
5. Written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.
Disaffiliation A local union has the right to disaffiliate from its mother federation. The right of a local union to disaffiliate from the mother federation
is primarily dependent upon the constitution and by-laws of the federation. In the absence of provisions in the federations constitution preventing
disaffiliation, a local union may sever its relationship with its parent. However, the decision to disaffiliate must be approved by the majority of the
union members.
Proper time for disaffiliation:
o GR: a labor union may disaffiliate from the mother union only during the 60-day freedom period immediately preceding the expiration of the CBA
o E: disaffiliation may be carried out before the onset of the freedom period, if there is a substantial shift of allegiance on the part of the majority of
the members of the union.
Effect of Disaffiliation:
o On the relationship between the local union and the federation disaffiliation severs the relationship between the local union and the mother
federation. It divests the federation of any and all power to act in representation of the local union.
o On the CBA Disaffiliation does not disturb the enforceability and administration of the CBA executed by and between an employer and the
federation. The reason is because the local union continues to represent the employees notwithstanding the disaffiliation
o On the legal personality of the local union An independent union that disaffiliates from its mother federation does not lose its legal personality
if because it has its own registration. A chartered local that disaffiliates from its mother federation loses its legal personality because it has no
registration of its own, hence it must register itself in order to retain its legal personality.

Art. 238. Cancellation of registration; appeal. The certificate of registration of any legitimate labor organization, whether national or local, shall be cancelled by
the Bureau if it has reason to believe, after due hearing, that the said labor organization no longer meets one or more of the requirements herein prescribed.
[The Bureau upon approval of this Code shall immediately institute cancellation proceedings and take such other steps as may be necessary to restructure all
existing registered labor organizations in accordance with the objective envisioned above.] (Repealed by Executive Order No. 111, December 24, 1986)

Administrative Cancellation of Registration The certificate of registration of a labor organization may be cancelled administratively for failure to submit
to the R.O. of the DOLE of the BLR which issued its certificate of registration or certificate of creation of chartered local the ff docs:
1. Any amendment to its constitution and by-laws and the minutes of adoption or ratification of such amendments. (submit within 30 days from adoption
or ratification)
2. Annual financial reports (submit within 30 days after the close of each fiscal year or calendar year)
3. Updated list of newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds (submit within 30
days after each regular or special election of officers or from the occurrence of any change on the officers or agents of the labor organization or
workers association)
4. Updated list of individual members (submit within 30 days after the close of each fiscal year)
5. Updated list of its chartered locals and affiliates or members organizations, CBA executed and their effectivity period, including an updated list of
authorized representatives, agents or signatories in different regions of the country, in case of federations or national unions.
However, no Certificate of registration shall be administratively cancelled due to non-compliance with the reportorial requirements unless:
1. Non-compliance is for a continuous period of 5 years
2. The procedural rules were complied with; and
3. The labor organization concerned has not responded to any of the notices sent or the notices were returned unclaimed.

Art. 239. Grounds for cancellation of union registration. The following shall constitute grounds for cancellation of union registration:
Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto, the
minutes of ratification and the list of members who took part in the ratification;
Failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from adoption or ratification of the constitution and by-
laws or amendments thereto;
Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, the list of voters, or failure
to submit these documents together with the list of the newly elected/appointed officers and their postal addresses within thirty (30) days from
election;
Failure to submit the annual financial report to the Bureau within thirty (30) days after the closing of every fiscal year and misrepresentation, false
entries or fraud in the preparation of the financial report itself;
Acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging in any activity prohibited by law;
Entering into collective bargaining agreements which provide terms and conditions of employment below minimum standards established by law;
Asking for or accepting attorneys fees or negotiation fees from employers;
Other than for mandatory activities under this Code, checking off special assessments or any other fees without duly signed individual written
authorizations of the members;
Failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau; and
Failure to comply with requirements under Articles 237 and 238.

Grounds for Cancellation of Union Registration
o Fraudulent acts (misrepresentation, false statement or fraud in connection with the ff)
1. Adoption or ratification of the constitution and by-laws or amendments thereto, the minutes of ratification and the list of members who took part in
the ratification
2. Election of officers, minutes of the election of officers and the list of votes; and
3. Preparation of financial reports.
o Unlawful acts
1. Acting as a labor contractor or engaging in the cabo system.
o Cabo refers to a person or group of persons or to a labor group which, under the guise of a labor organization, supplies workers to an
employer, with or without any monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible
independent contractor.
2. Entering into a CBA with terms and conditions of employment below the minimum standards set by law
3. Asking for or accepting attorney;s fees or negotiation fees from employees;
4. Checking-off special assessments or other fees without individual written check-off authorization, except for mandatory activities under the Labor
Code; and
5. Violation of Art. 241 of the Labor Code regarding rights and conditions of membership in a labor organization.
o Non-Compliance with Certain Requirements
1. Failure to submit its constitution and by-laws or amendments thereto, the minutes of ratification and the list of members who took part in the
ratification, within 30 days from adoption or ratification
2. Failure to submit the list of newly elected/appointed officers and their postal addresses, list of voters and minutes of the election of officers, within
30 days from election
3. Failure to submit annual financial report within 30 days after the closing of every fiscal year
4. Failure to submit list of individual members once a year or whenever required; or
5. Failure to comply with any of the requirements prescribed under Art. 234 and 237 of the Labor Code.
Cancellation Procedure only through a petition for cancellation of registration, except in those cases where administrative cancellation is proper.
Collateral attack is not allowed even in a petition for certification election. Only direct action.
Proper Party
GR: Any party-in-interest can file a petition for cancellation of registration of a labor organization
E: If the ground for cancellation is based on a violation of Art. 241 of the Labor Code, only members of the labor organization or workers association
concerned can file the petition for cancellation.
Form of Petition under oath and shall contain, among others, the following:
a) Name and address and other personal circumstances of the complainant/petitioner
b) Name, address and other personal circumstances of the respondent
c) Nature of the complaint/petition
d) Facts and circumstances surrounding the complaint/petition
e) Cause of action or specific violation committed
f) Statement that the administrative remedies provided for in the constitution and by-laws have been exhausted or such remedies are not readily
available to the complainant/petitioner through no fault of his own or compliance with such administrative remedies does not apply to
complainant/petitioner
g) Reliefs prayed for
h) Certificate of non-forum shopping
i) Other relevant matters
Venue: (petition for cancellation)
o In case of independent union, chartered local or workers association R.O. of the DOLE that issued its certificate of registration or certificate of
creation of chartered local
o In case of national unions, industry unions, or trade unions BLR
Appeal for cancellation of registration within 10 days
o BLR if the case was decided by the Regional Director of the DOLE
o Secretary of Labor and Employment if the case was decided by the BLR in the exercise of its original (not appellate) jurisdiction
Finality of Decision Rendered on Appeal
o If rendered by the Secretary of Labor and Employment on appeal are final and executory
o If rendered by the BLR in the exercise of its appellate jurisdiction are final and executory, hence, they are not appealable to the Sec.. of Labor
and employment
Effect of Cancellation Proceedings
o During the pendency of cancellation proceedings, the labor organization whose registration is sought to be cancelled, continues to enjoy all the
rights accorded to a legitimiate labor organization. Only a final order of cancellation can strip a legitimate labor organization of its rights. Thus, a
labor organization can still file a petition for certification despite pendency of a petition for cancellation of registration of its registration
o If the registration is cancelled during the pendency of a case, the labor organization may still continue to be a party to the case without need of
substitution

Art. 240. Equity of the incumbent. All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the
grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates.

Art. 240 merely proclaims the right of a federation or national union to maintain their existing affiliates regardless of the nature of the industry and location
of their affiliates.

Chapter II
RIGHTS AND CONDITIONS OF MEMBERSHIP

Art. 241. Rights and conditions of membership in a labor organization. The following are the rights and conditions of membership in a labor organization:
1. No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or
oppressive fine and forfeiture be imposed;
2. The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the
constitution and by-laws of the organization;
3. The members shall directly elect their officers, including those of the national union or federation, to which they or their union is affiliated, by secret
ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other than membership in good
standing in subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with
a list of the newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds, within thirty (30)
calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization; (As amended by
Section 16, Republic Act No. 6715, March 21, 1989)
4. The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the
organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of directors of
the organization may make the decision in behalf of the general membership;
5. No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive organization or who
is engaged directly or indirectly in any subversive activity;
6. No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any
position in the union;
7. No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursement of its
money or funds unless he is duly authorized pursuant to its constitution and by-laws;
8. Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection
and entered into the record of the organization to be kept and maintained for the purpose;
9. The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or
those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose;
10. Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be
evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record
or receipt shall form part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial report to the
Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever comes earlier:
Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this
Code: Provided, further, that failure of any labor organization to comply with the periodic financial reports required by law and such rules and
regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation of union registration of
such labor organization; (As amended by Section 16, Republic Act No. 6715, March 21, 1989)
11. The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically
provided for in its constitution and by-laws, or in a written resolution duly authorized by a majority of all the members at a general membership
meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the
Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolutions shall be a ground for impeachment or
expulsion from the organization;
12. The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection,
management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to the organization and to
its members a true and correct account of all moneys received and paid by him since he assumed office or since the last day on which he rendered
such account, and of all bonds, securities and other properties of the organization entrusted to his custody or under his control. The rendering of
such account shall be made:
1. At least once a year within thirty (30) days after the close of its fiscal year;
2. At such other times as may be required by a resolution of the majority of the members of the organization; and
3. Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.
13. The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member
thereof during office hours;
14. No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution
of a majority of all the members in a general membership meeting duly called for the purpose. The secretary of the organization shall record the
minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of
such assessment or fees. The record shall be attested to by the president.
15. Other than for mandatory activities under the Code, no special assessments, attorneys fees, negotiation fees or any other extraordinary fees may be
checked off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should
specifically state the amount, purpose and beneficiary of the deduction; and
16. It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, collective
bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of officers from office,
whichever is appropriate. At least thirty percent (30%) of the members of a union or any member or members specially concerned may report such
violation to the Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction of ordinary
courts.

Rights of Union Members:
o Right to resign from the union may be restricted by a closed-shop agreement or other union security arrangement between the union and
management, in which case, the employee concerned must keep his union membership until the freedom period.
o Right to fair dealing fiduciary in nature and arises out of two factors: one is the degree of dependence of the individual employee on the labor
organization; the other, a corollary of the first, is the comprehensive power vested in the union with respect to the individual
o Right to Information
Union officers are duty bound to inform the members on the provisions of the constitution and by-laws of the union, the CBA, the prevailing labor
relations system and all their rights and obligations under existing laws
Union members are entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the
constitution and by-laws of the organization
The book of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member
during office hours
o Right to Determine Major Union Policies Union members have the right to determine by secret ballot, after due deliberation, any question of major
policy affecting the entire membership, unless the nature of the organization or force majeure renders such secret balloting impractical, in which
case, the board of directors of the organization may make the decision in behalf of the general membership
o Right to Elect Union Officers including those of the national union or federation to which their union is affiliated
o Right to Seek Investigation of Irregularities any union member who invokes his right cannot be considered to have committed misconduct,
negligence or disloyalty, and it is unlawful to expel such member from the union
Conditions of Union Membership
o Non-membership in Subversive organization (already repealed)
o No arbitrary or excessive initiation fees
o No levy of Special assessment Without Written Resolution
Requisites for a valid levy of Special assessment
1. There must be a written resolution by the majority of all the union members
2. The written resolution must be passed in a general membership meeting duly called for the purpose
3. The minutes of the meeting, including the list of all members represent, the votes cast, and the purpose of the special assessment should be
recorded by the secretary of the labor organization
4. The record shall be attested to by the president of the labor organization
Strict compliance with the foregoing requirements is required. Substantial compliance will not suffice. Thus:
o A special assessment based merely on the minutes of the meeting is null and void, because the law requires a written resolution
o A special assessment based on a written resolution obtained in a local membership meeting is also null and void because the law requires a
general membership meeting
o No check off without individual written authorization only mandatory activities which does not require individual written authorization duly signed
by the employee
The individual check-off authorization should specifically state the amount, purpose and beneficiary of the deduction
Mandatory activities are labor relations seminars and labor education activities
Compulsory arbitration of a collective bargaining deadlock is not a mandatory activity. It is a judicial process of settling labor disputes.
The right of an incumbent collective bargaining agent to check-off union dues and agency fees subsists during the pendency of a
petition for certification election or other inter-union or intra-union disputes or other related labor relations disputes
Withdrawal of check-off authorization need not be done separately or individually
Check-off Authorization is not required for agency fees Art. 248
Union Officers
o Qualifications of union officers:
1. He must be an employee of the company where the union operates
2. He must be member in good standing in the subject labor organization
3. He has not been convicted of a crime involving moral turpitude or if convicted, he has been granted absolute pardon
Election of Union Officers
The members of the union shall directly elect their officers, including the officers of the national union or federation to which the union is affiliated by
secret ballot at intervals of 5 years
Unlike a certification election where all members of the collective bargaining unit are qualified to vote, only union members are qualified to vote in an
election of union officers.
Submission of the employees names with the BLR as qualified members of the union is not a condition sine qua non to enable said members to vote
in the election of union officers
Remedy if officers do not call for election of new officers petition by at least 30% of the members of the labor organization
Election Protest 5 day period for filing a protest in a certification election does not apply to a protest in an election of union officers. If a winning
candidate is disqualified, it does not necessarily mean that the candidate who obtained second highest number of votes should be declared as the
winner
Election attended by irregularities is invalid.
1. Elections were conducted without prior notice to all voting members or were held on dates different from those stated in the notice
2. The elections were conducted in defiance of the TRO that was issued by the Med-Arbiter
3. The elections were conducted without any ground rules or guidelines,
4. There was no committee on election to oversee the election
5. The purported election was not done by secret ballot
Expulsion/Impeachment of Union Officers:
1. Violation of the rights and conditions of membership in a labor organization as set forth in Article 241 of the Labor Code
2. Commission of irregularities in the approval of the resolution regarding compensation of union officers
3. Membership in another labor organization
4. Culpable violation of the constitution and by-laws of the union.
If the DOLE is confronted with a petition for expulsion or impeachment of union officers, it should decided the case on its merits.
Union Funds shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly
authorized by written resolution adopted by the majority of the members at a general membership meeting duly called for the purpose.
Accounting of Union Funds
o Atleast once a year within 30 days after the close of its fiscal year
o At such other times as may be required by a written resolution of the majority of the members of the organization; and
o Upon vacating his office
o The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor and Employment
Request for Examination of Books of Accounts request for examination of the books of accounts of the union may be filed with the following agencies
by any union members with the written consent of at least 20% of the total union membership. The request for examination of books of account shall not be
treated as an intra-union dispute, in the absence of allegation that a violation of Art. 241 of the Labor Code has been committed. Hence the appointment of
an Audit Examiner is not appealable.
Action for Accounting/Audit of Union Funds shall be heard and resolved by the Med-Arbiter
o The rule is that a petition for accounting/audit of union funds shall be supported by the written consent of at least 30 % of the total union
membership. However, the 30% requirement is not mandatory.
Appeal a decision denying or dismissing the petition for audit/accounting of union funds may be appealed within 10 days to the
o BLR - if the decision was rendered by the Regional Director of the DOLE
o Sec. of Labor and Employment if he decision was rendered by the BLR in the exercise of its original (not appellate) jurisdiction
o The decision granting the petition for audit is interlocutory, hence, not appealable.
Prescription of Action 3 years from the date of the submission of the annual financial report to the DOLE or from the date the same should have been
submitted as required by law, whichever comes earlier.

Chapter III
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
1. To act as the representative of its members for the purpose of collective bargaining;
2. To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining;
3. To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance sheet and the profit and
loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union has been duly recognized by the employer or
certified as the sole and exclusive bargaining representative of the employees in the bargaining unit, or within sixty (60) calendar days before the
expiration of the existing collective bargaining agreement, or during the collective bargaining negotiation;
4. To own property, real or personal, for the use and benefit of the labor organization and its members;
5. To sue and be sued in its registered name; and
6. To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and other projects not
contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal and similar organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn only
by a special law expressly repealing this provision. (As amended by Section 17, Republic Act No. 6715, March 21, 1989)

The right to act as Collective Bargaining Representative a labor organization that is not legitimate, i.e. not registered with the DOLE, cannot act as
the collective bargaining representative because it has no legal personality. However, during the pendency of the registration proceedings, a labor
organization can already participate in a certification election.
The right to request for audited financial statements. The labor organization concerned can avail of this right:
o After it has been accorded recognition by the employer or after it has been certified as the collective bargaining representative;
o During the freedom period
o During the collective bargaining negotiations
o A suit filed by a legitimate labor organization should be brought in its own registered name and not in the name of its president.
o The legal capacity of a labor union to sue cannot be raised for the first time on appeal
The right to tax exemption

Title V
COVERAGE

Art. 243. Coverage and employees right to self-organization. All persons employed in commercial, industrial and agricultural enterprises and in religious,
charitable, medical, or educational institutions, whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and
those without any definite employers may form labor organizations for their mutual aid and protection. (As amended by Batas Pambansa Bilang 70, May 1, 1980)

The right of an employee to self-organization carries with it the right to:
a) Choose which union he would join;
b) Cancel his union membership any time; and
c) Abstain from joining a union
o The right to cancel union membership and the right to abstain from joining a labor union is not absolute. It cannot be exercised, as a general rule, where a
labor union and an employer have agreed on a closed shop arrangement by virtue of which the employer is bound to employ only members of the
contracting union in order to keep their jobs.
Basic types of organizations
1. Labor Organization (Labor Union) is an association of employees created for the purpose of collective bargaining or dealing with employers
concerning terms and conditions of employments
2. Workers Association organization of employees created not for collective bargaining purpose, but for the mutual aid and protection of its members
or for any other legitimate purpose other than collective bargaining.
Kinds of Labor Unions:
a) National Union or Federation mother labor organization with at least 10 locals/chapters or affiliates
b) Local Union labor organization at the enterprise level
c) Chartered Local labor organization without an independent registration whose legal personality is derived from its mother union or federation,
upon issuance of a Certificate of Creation of Chartered Local
d) Affiliate an independently registered union attached to a national union or federation
e) Independent Union a labor organization operating at the enterprise level that acquired legal personality through independent registration and is
not affiliated with a national union or federation
f) Industrial Union labor organization composed of workers in a particular industry
g) Craft Union a labor org composed of workers engaged in a particular trade or occupation of a kind that requires skill and training (Ex. Union of
airplaine pilots or union of flight attendants)
h) Company-Type Union a labor organization composed of employees in the same company
i) Company Union a labor organization, the formation, function or administration of which has been assisted by any act defined as ULP.
Employee Status essential element for eligibility for membership in a labor organization.
Employees eligible for membership in a labor organization
o Only rank-and-file and supervisory employees in commercial, industrial and agricultural enterprises and in religious, charitable, medical or
educational institutions, whether operating for profit or not, can form or join a union for collective bargaining purposes
o Security guards may also form or join a labor union
o Alien employees with valid working permits may also 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 DFA.
o An employee is eligible to join a labor union on the first day of his employment
o All employees, including ambulant, intermittent, self-employed, rural workers and those without any definite employers may form or join a workers
association for their mutual iad and protection.
o Managerial employees, although disqualified from forming or joining a labor organization, may organize their own association for their mutual aid and
protection but not for collective bargaining purposes.

Art. 244. Right of employees in the public service. Employees of government corporations established under the Corporation Code shall have the right to
organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes
not contrary to law. (As amended by Executive Order No. 111, December 24, 1986)

3 types of employees in the public service:
1. Employees of branches, subdivisions, instrumentalities and agencies of the Government
2. Employees of GOCCs with original charters
3. Employees of GOCCS under the Corporation Law
Government employees cannot form or join a labor organization, but they can form or join an employees association of heir own choosing for the
furtherance and protection of their interest.
High level employees whose functions are normally considered as policy making or managerial or whose duties are of a highly confidential nature cannot
join the organization of rank-and-file government employees. They must form their own association
While government employees are guaranteed the right to self-organization, they are not accorded the right to strike
Employees of GOCCs with original charters cannot form or join a labor organization. Neither can they strike nor can they bargain collectively
Employees of GOCCs established under the Corporation Law enjoy the same rights and obligations as employees of private establishments

Art. 245. Ineligibility of managerial employees to join any labor organization; right of supervisory employees. 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 rank-and-file employees but
may join, assist or form separate labor organizations of their own. (As amended by Section 18, Republic Act No. 6715, March 21, 1989)

Managerial Employees is one who is vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend,
lay-off, recall, discharge, assign or discipline employees
The managerial status of an employee is determined not by the nomenclature or title of the job but by the nature of the employees functions
Characteristics of Managerial Rank:
1. Not subject to the rigid observance of regular office hours
2. Work requires the consistent exercise of discretion and judgment in the performance
3. Output produced or the result accomplished cannot be standardized in relation to a given period of time
4. Manages a customarily recognized department or subdivision of the establishment, customarily and regularly directing the work of other employees
therein
5. Has the authority to hire or discharge other employees or his suggestions and recommendations as to hiring and discharging, advancement and
promotion or other change of status of other employees are given particular weight; and
6. As a rule, neither paid hourly wages nor subject to maximum hours of worl
Examples of Managerial Positions: captain of a vessel, major patron, minor patron, chief mate and chief engineer of a vessel, department managers and
assistant managers, farm administrator, route manager, accounting manager and personnel officer
Right of Managerial Employees to Self-Organization only workers association
Supervisory Employees are those who, in the interest of the employer, effectively recommend the laying down and execution of management policies
and/or hiring, transfer, suspension, lay-off, recall, discharge, assignment or discipline of employees.
To qualify as supervisory employees, the power to recommend should be effective and the exercise of such authority should not be merely routinary or
clerical nature, but should require the use of independent judgment
Supervisory employees are accorded the right to form or join a labor organization. However, they are not eligible for membership in a labor organization of
rank and file employees they should form their own separate organization.
The mere affiliation of both the supervisors union and the rank-and-file union with the same federation is not per se objectionable. Affiliation of both the
supervisory union and the rank-and-file union with the same federation will be disallowed only:
o When the rank-and-file employees are directly under the authority of the supervisory employees; and
o When the national federation is actively involved in union activities in the company
In the absence of the foregoing conditions, the supervisors union and the rank-and-file union in the same company may validly affiliate with the same
federation
A labor organization composed of a mixture of rank-and-file and supervisory employees is no labor organization at all.
However, the mere fact that a supervisor organizes and joins a labor organization or rank-and-file employees does not make the organization illegal. The
most that can be done under the situation is to disqualify the supervisor from joining the union.
Rank and File Employees all employees who are neither managerial nor supervisory are rank-and-file employees.
Confidential Employees those who: (a) assist or act in a confidential capacity, (b) to persons who formulate, determine and effectuate management
policies in the field of labor relations. The confidential relationship must exist between the employee and his supervisor and the supervisor must handle the
prescribed responsibilities relating to labor relations.
Right of Confidential Employees to self-organization is the same as that of managerial employees.
Cooperative an organization composed primarily of small producers and of consumers who voluntarily join together to form business enterprises which
they themselves own, control, and patronize.
Employees of cooperatives who are themselves members of the cooperative have no right to form or join a labor organization because they are co-owners
of the cooperative.

Art. 246. Non-abridgment of right to self-organization. It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with
employees and workers in their exercise of the right to self-organization. Such right shall include the right to form, join, or assist labor organizations for the
purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose for their mutual
aid and protection, subject to the provisions of Article 264 of this Code. (As amended by Batas Pambansa Bilang 70, May 1, 1980)

Title VI
UNFAIR LABOR PRACTICES
Chapter I
CONCEPT

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof. Unfair labor practices violate the constitutional right of workers and
employees to self-organization, are inimical to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise
deal with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and stable labor-management
relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which
shall be subject to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor and Employment of the powers vested in them by Articles 263 and 264 of this Code, the
civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, exemplary and other forms of damages, attorneys fees and
other affirmative relief, shall be under the jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases
involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time they are submitted for decision.
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that an unfair labor practice was committed, having been first obtained
in the preceding paragraph. During the pendency of such administrative proceeding, the running of the period of prescription of the criminal offense herein
penalized shall be considered interrupted: Provided, however, that the final judgment in the administrative proceedings shall not be binding in the criminal case
nor be considered as evidence of guilt but merely as proof of compliance of the requirements therein set forth. (As amended by Batas Pambansa Bilang 70, May
1, 1980 and later further amended by Section 19, Republic Act No. 6715, March 21, 1989)

Unfair Labor Practice those acts listed in Article 248 and 249 of the Labor Code
ULP are acts that transgress the right of employees to self-organization.
It can be committed only against an employee who exercises or has exercised his right to self-organization. It cannot be committed against an employee
who is not connected with any labor organization.
ULP cannot be committed against managerial employees because managerial employees are not accorded the right to form or join a labor organization
Degree of Proof to Establish ULP substantial evidence which may be direct or circumstantial.
In determining whether or not a ULP has been committed, the employers motive should be taken into account
The existence of a valid cause for dismissal will negate the charge of ULP because the idea of dismissal by ULP is incompatible with dismissal for just
cause.
The criminal aspect of ULP cannot be prosecuted during the pendency of the administrative proceedings. Only when there is a final judgment in the
administrative proceedings declaring the ULP has been committed, can the criminal prosecution be commenced. Nevertheless, the final judgment in the
administrative proceedings is not binding in the criminal case. It cannot be considered as an evidence of guilt but merely as proof of compliance with the
procedural requirements for the filing of the criminal case.
Criminal liability is imposed only upon officers and agents of corporations, associations or partnerships and officers, members of governing boards,
representatives or agents or members of labor organizations who have actually participated in, authorized or ratified the ULP.
An ULP charge can be the subject of a compromise or amicable settlement. If the ULP charge is settled through compromise, the criminal aspect can no
longer prosper
Acts Not Constitutive of ULP
1. Dismissal of an Employee Pursuant to a closed-shop agreement
2. Dismissal of employee responsible for the loss of the goods consigned to another
3. Dismissal by reason of retrenchment
4. Closure of a department due to losses
5. Dismissal of a supervisor for organizing a labor union composed of men under his supervision
6. Failure to comply with a reinstatement order because of a government directive
7. Refusal to hire security guards who do not post a bond
8. Refusal to extend a CBA benefit due to an honest mistake or error in the interpretation of a CBA without malice or bad faith
9. Reduction of Working Days
10. Exercising the option to retire employees
11. Filing of a petition for cancellation of union registration it will amount to ULP only if it is established by substantial evidence that the filing of the
petition for cancellation of union registration was aimed to oppress the union
12. Exacting a promise from the strikers not to destroy company property
13. Requiring returning strikers to fill up forms

Chapter II
UNFAIR LABOR PRACTICES OF EMPLOYERS

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:
1. To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
2. To require as a condition of employment that a person or an employee shall not join a labor organization or shall withdraw from one to which he
belongs;
3. To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the exercise
of their rights to self-organization;
4. To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of financial or
other support to it or its organizers or supporters;
5. To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in
any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective
bargaining agent as a condition for employment, except those employees who are already members of another union at the time of the signing of the
collective bargaining agreement. Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent
may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such
non-union members accept the benefits under the collective bargaining agreement: Provided, that the individual authorization required under Article
242, paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent;
6. To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code;
7. To violate the duty to bargain collectively as prescribed by this Code;
8. To pay negotiation or attorneys fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other
dispute; or
9. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations, associations or partnerships who have actually
participated in, authorized or ratified unfair labor practices shall be held criminally liable. (As amended by Batas Pambansa Bilang 130, August 21, 1981)

INTERFERENCE IN THE RIGHT TO SELF-ORGANIZATION
o Test of Interference whether the employer has engaged in conduct which it may reasonably be said tends to hinder the free exercise of the
employees right to self-organization. It is not necessary that there be direct evidence, it is enough that there is a reasonable inference that anti-union
conduct of the employer had an adverse effect on self-organization and collective bargaining.
Subjecting employees to a series of questioning regarding their membership in the union or their union activities, in such a way as to hamper the
exercise of free choice on the part, constitutes interference in the right to self-organization.
o Totality of Conduct Doctrine the culpability of an employers remarks are to be evaluated not only on the basis of their implicit implications, but
should be appraised against the background of and in conjunction with collateral circumstances.
Yellow Dog Contract is an agreement which requires as a condition of employment, that a person or employee:
a.) Declare that he is not a member of a labor organization
b.) Refrain from joining a labor organization
c.) Withdraw his membership in a labor organization
d.) Quit his employment upon joining a labor organization
o A YDC is an ULP, hence it is null and void for being contrary to law and public policy
Contracting out services or functions performed by union members becomes ULP only when it interferes with, restrains or coerces employees in
the exercise of their right to self-organization
Organizing, Assisting or Supporting a Labor Organization ULP, including the giving of financial or other support to it or its organizers or supporters
o Company union or company-dominated union a labor organization, the formation or administration of which has been initiated or assisted by the
employer
o Company-type union is a kind of labor organization composed of employees in the same company
o The fact that a particular union is company-dominated may be indicated by the ff circumstances: several employees were forced by the officers of the
company into joining a union; no union member had been dismissed by the company despite the alleged retrenchment policy which resulted in the
dismissal of other employees who are officers and members of another union; and that after dismissing the members of the other union on the ground
of retrenchment, the company engaged the services of several labourers
o A complaint for ULP charging that one or more unions participating in the certification election are being aided or controlled by the employer may be
considered a pre-judicial question in a certification election proceeding. The reason for this is to prevent the selection of a company-dominated union
o Disestablishment is an order requiring an employer to withdraw its recognition of a company-dominated union as the employees collective
bargaining agent and a bona fide and sufficient communication to the employees of such withdrawal of recognition
Dismissal or Discrimination because of Testimony mere giving of testimony is not ULP. To constitute ULP, the testimony should relate to matters
involving the exercise of the right to self-organization such as testimony in another ULP case or in a certification election proceeding. Although Art. 248(f)
of the LC seems to refer only to the discharge of the employee who has given or is about to give testimony against the employer, the said provision equally
applies to the dismissal of an employee whose brother has given or is about to give testimony against an employer.
Violation of the Duty to Bargain Collectively
o Duty to Bargain Collectively means the performance of a mutual obligation to meet and convene promptly and expeditiously in good faith for the
purpose of negotiating an agreement with respect to wages, hours of work and all other terms and conditions of employment including proposals for
adjusting any grievances or questions arising under such agreement and executing a contract incorporating such agreement if requested by either
party, but such duty does not compel any party to make any concession.
o When there is a CBA, the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime.
o Essential Elements of the Duty to Bargain Collectively
The foremost element of the duty to bargain collectively is EMPLOYER-EMPLOYEE RELATIONSHIP.
If the relationship of Er-Ee exists, the duty to bargain collectively will arise only if the labor organization which seeks to collectively bargain with
the employer represents the majority of the employees in the bargaining unit. Without proof of majority representation, the employer can validly
refuse to collectively bargain, and such refusal cannot constitute ULP.
Negotiating or attempting to negotiate with individual employees in connection with changes in the CBA is a violation of the duty to bargain
collectively because an employer is bound to bargain, not individually but collectively and only with the certified collective bargaining agent of the
employees.
Paying Negotiation Fees or Attys Fees to the Union as part of the settlement of any issue in collective bargaining is ULP
Violation of CBA must be gross in character to constitute ULP
o Gross Violation flagrant and/or malicious refusal to comply with the economic provisions of the CBA
Discrimination this is present when one is denied privileges given to the other under identical or similar conditions.
o Discrimination per se is not ULP. It becomes ULP only when it is intended to encourage or discourage membership in any labor organization.
o An employer can discriminate in favour of a union, even if it were not company dominated because discriminatory acts can be committed against a
union itself.
Union Security Agreements art. 248 (e)
o Types of Union Security Agreements:
a.) Closed Shop an arrangement whereby the employer binds himself to hire only members of the contracting union who must continue to remain
members in good standing to keep their jobs
b.) Union Shop an arrangement whereby an employer is allowed to hire non-members of the contracting union on condition that they should join the
contracting union within a specified period of time and must continue to remain members in good standing to keep their jobs.
c.) Maintenance of Membership an arrangement which requires those who are members of the contracting union at the time the execution of the CBA
to maintain their membership in good standing during the lifetime of the CBA as a condition of continued employment.
d.) Agency Shop an arrangement which does not require union membership but only support from the employees within the bargaining unit in the form
of agency fees, as a condition of continued employment
e.) Preferential Hiring an arrangement whereby the members of the contracting union are given preference in engagement, all circumstances being
equal, and for them to main their membership in good standing during the lifetime of the CBA as a condition of continued employment
o Limitations of a closed shop agreement:
a.) Employees who are already members of another union at the time of the signing of the CBA
b.) Employees whom the union refused admission to membership without any reasonable ground therefor; and
c.) Employees who are members of religious sects which prohibit their members from joining a labor organization
o Construction of closed shop agreement and union shop agreements STRICTLY CONSTRUED and any doubt should be resolved against its
existence. The same principle applies to maintenance of membership agreement
o A union security arrangement is binding even if the employees are not aware of such agreement
o ENFORCEMENT to justify the dismissal of an employee pursuant to a closed shop stipulation, the validity of said stipulation must first be shown. A
closed shop agreement which compels all employees to join the union is not valid.
o Agency Shop applies only to non-union members who belong to the collective bargaining unit. It can be enforced only if and when the non-union
members covered by the bargaining unit accepts the benefits under the CBA. Individual check-off authorization is not required to check-off agency fees.

Chapter III
UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

Art. 249. Unfair labor practices of labor organizations. It shall be unfair labor practice for a labor organization, its officers, agents or representatives:
1. To restrain or coerce employees in the exercise of their right to self-organization. However, a labor organization shall have the right to prescribe its
own rules with respect to the acquisition or retention of membership;
2. To cause or attempt to cause an employer to discriminate against an employee, including discrimination against an employee with respect to whom
membership in such organization has been denied or to terminate an employee on any ground other than the usual terms and conditions under
which membership or continuation of membership is made available to other members;
3. To violate the duty, or refuse to bargain collectively with the employer, provided it is the representative of the employees;
4. To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value, in the nature of an
exaction, for services which are not performed or not to be performed, including the demand for fee for union negotiations;
5. To ask for or accept negotiation or attorneys fees from employers as part of the settlement of any issue in collective bargaining or any other dispute;
or
6. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing boards, representatives or agents or members of labor
associations or organizations who have actually participated in, authorized or ratified unfair labor practices shall be held criminally liable. (As amended by
Batas Pambansa Bilang 130, August 21, 1981)

Violation of the Duty to Bargain Collectively
o If there is a pending representation issue, it is ULP on the part of a labor organization to stage a strike to compel the management to sit down with it for
collective bargaining
Featherbedding act of causing or attempting to cause an employer to pay or deliver any money or other things of value for services which were not
performed or not to be performed

Title VII
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

Art. 250. Procedure in collective bargaining. The following procedures shall be observed in collective bargaining:
1. When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its proposals. The other party
shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;
2. Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later than ten (10)
calendar days from the date of request.
3. If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to
conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the
duty of the parties to participate fully and promptly in the conciliation meetings the Board may call;
4. During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early settlement of
the disputes; and
5. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. (As amended by
Section 20, Republic Act No. 6715, March 21, 1989)

Collective Bargaining one of the democratic frameworks under the LC designed to stabilize the relation between labor and management and to create
a climate of sound and stable industrial peace.
Collective Bargaining Process technically starts when the employees within an appropriate bargaining unit organize themselves into a labor
organization. After obtaining registration with the DOLE, the labor organization either requests the employer for voluntary recognition or files a petition for
C.E. If accorded voluntary recognition, or if certified by the DOLE as the sole and exclusive bargaining agent of the employees within the bargaining unit,
the labor organization serves its WRITTEN proposals to the employer, after which the employer submits its written counterproposals within 10 days from
receipt of the proposals (failure of an employer to reply or submit a counterproposal within 10 calendar days is not tantamount to refusal to bargain. The
10-day period set by law is merely procedural and non-compliance is not ULP. If the employer does not submit any reply, it cannot be construed as an
implied acceptance of the proposal. Failure of refusal to make counterproposal if considered in relation to the entire bargaining process, may only indicate
bad faith). Collective bargaining negotiations then follow
o Jurisdictional Preconditions of Collective Bargaining:
a.) Proof of majority representation on the part of the labor organization
b.) Voluntary recognition by the employer or certification of the labor organization as the collective bargaining representative of the employees covered
by the bargaining unit; and
c.) Demand to bargain under Art. 250 (a) of the LC
Multi- Employer Bargaining legitimate labor organizations and employers may agree in writing to come together for collective bargaining purposes
under the following conditions:
a.) The legitimate labor organization must be incumbent exclusive bargaining agents;
b.) The employers must have counterpart legitimate labor organizations who are incumbent bargaining agents; and
c.) The legitimate labor organizations of employer units must consent to multi-employer bargaining.
o Each employer or concerned labor org shall express in writing its willingness or unwillingness to participate in multi-employer bargaining, addressed
to its exclusive bargaining agent or employer.
o Pre-requisites of Multi-emplyer Bargaining LLO who desire to collectively negotiate with employers shall execute among themselves a written
agreement containing the ff:
a.) Names of the labor unions who desire to avail of multi-employer bargaining;
b.) Names of each labor union in the employer unit;
c.) Statement that each of the labor unions are the incumbent exclusive bargaining agents of their resprective employer units;
d.) Duration of the CBA, if any, between each labor organization and their respective employers
o Procedure
LLO who desire to bargain with multi-employers shall send a written notice to each employer concerned. The written notice shall be accompanied
by any of the ff docs:
a. Written agreement among the labor organizations as regards their desire for multi-employer bargaining; or
b. Certificates of registration of the federation, national union or industry union
Employers who desire to engage in multi-employer bargaining shall send to each of their counterpart legitimate labor unions a written noticed
indicating the ff:
a. Names of employers who desire to avail of multi-employer bargaining;
b. Their corresponding LLO;
c. Statement that each corresponding LLO is an exclusive bargaining agent;
d. The duration of the current CBA, if any, of each employer with the counterpart LLO.
Remedies in Case of Deadlock
o Deadlock situation between the labor and management of the company where there is failure in the collective bargaining negotiationgs resulting in a
stalemate.
o Remedies:
Call upon the NCMB to assist them in arriving at an amicable settlement ( the NCMB is empowered to issue subpoenas to compel the attendance of
the parties to the conciliation meetings)
Submit the matter for compulsory arbitration by filing a complaint with the NLRC
Submit the matter for resolution by a voluntary arbitrator
Declare a strice or lockout

Art. 251. Duty to bargain collectively in the absence of collective bargaining agreements. In the absence of an agreement or other voluntary arrangement
providing for a more expeditious manner of collective bargaining, it shall be the duty of employer and the representatives of the employees to bargain collectively
in accordance with the provisions of this Code.

The Duty to Bargain Collectively A Mutual Obligation a duty on the part of the employees to comply with certain requirements before they could be
recognized and the corresponding obligation on the part of the employer to engage in negotiations for the betterment of workers.
The employer is not under obligation to initiate the collective bargaining negotiations
Essential elements of the Duty to Bargain Collective
o The duty to bargain collectively arises only when the union which seeks to represent the collective bargaining unit is:
a. A legitimate labor organization;
b. Composed of employees of the supposed employer; and
c. Chosen or designated by the majority of the employees within the bargaining unit as their collective bargaining representative.
o Union must be a LLO
o Union must be composed of employees
o Union must be recognized or certified as bargaining agent
o No duty to bargain with minority

Art. 252. Meaning of duty to bargain collectively. The duty to bargain collectively means the performance of a mutual obligation to meet and convene promptly
and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other terms and conditions of
employment including proposals for adjusting any grievances or questions arising under such agreement and executing a contract incorporating such
agreements if requested by either party but such duty does not compel any party to agree to a proposal or to make any concession.

The duty to bargain collectively does not impose upon the employer the obligation to initiate contract negotiation. Neither does it compel the parties to
agree to a proposal or to make any concession, much less to reach an agreement.
Proposals, if unacceptable, should be matched with counterproposals
To offer with union a contract saying take it or leave it is not in consonance with GF bargaining.
Feigning negotiations through empty gestures is not bargaining in GF.
The Philosophy of Collective Responsibility an employer who bargains in GF is entitled to rely on the promises and agreements of the union
representatives with whom he must deal under the compulsion of law and contract

Art. 253. Duty to bargain collectively when there exists a collective bargaining agreement. When there is a collective bargaining agreement, the duty to
bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However, either party can serve a written
notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both parties to keep the status quo and to
continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the
parties.

The duty to bargain after execution of CBA it is a continuous process. This does not mean, however, that either party can ask for modification of the
CBA at any time during its effectivity
The continuous process of collective bargaining simply means that the parties, during the term of the agreements, are mutually obliged to meet and confer
promptly and expeditiously and in GF for the purposes of adjusting any grievance or question arising under the CBA.
After the execution of the CBA, the duty to bargain collectively obliges the parties:
a. Not to terminate or modify the CBA during its lifetime
b. To ask for modification of the CBA only during the 60-day period prior to its expiration date; and
c. To observe the terms and conditions of the CBA during the 60-day period and until a new agreement is reached.
The Freedom Period is the 60-day period prior to the expiration of the CBA.
Hold-Over Principle in the absence of a new CBA, the parties must maintain the status quo and must continue in full force and effect the terms and
conditions of the existing agreement until a new agreement is reached.

Art. 253-A. Terms of a collective bargaining agreement. Any Collective Bargaining Agreement that the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of five (5) years. No petition questioning the majority status of the incumbent bargaining agent shall be
entertained and no certification election shall be conducted by the Department of Labor and Employment outside of the sixty-day period immediately before the
date of expiry of such five-year term of the Collective Bargaining Agreement. All other provisions of the Collective Bargaining Agreement shall be renegotiated
not later than three (3) years after its execution. Any agreement on such other provisions of the Collective Bargaining Agreement entered into within six (6)
months from the date of expiry of the term of such other provisions as fixed in such Collective Bargaining Agreement, shall retroact to the day immediately
following such date. If any such agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a
deadlock in the renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code. (As amended by Section 21,
Republic Act No. 6715, March 21, 1989)

Collective Bargaining Agreement a contract by and between an employer and the collective bargaining representative of the employees within an
appropriate bargaining unit, concerning wages, hours of work, and all other terms and conditions of employment.
The primary purpose of a CBA is the stabilization of labor-management relations in order to create a climate of a sound and stable industrial peace.
Coverage of a CBA binding on all employees covered by the collective bargaining unit whether they be union members or not.
A CBA is not an ordinary contract but one impressed with public interest. As such, it must be construed liberally rather than narrowly and technically.
The term of a CBA, insofar as the representation aspect is concerned, is 5 years reckoned from the date of its effectivity. This means that during the 5
year period, the majority status of the incumbent collective bargaining agent cannot be challenged except during the last 60-days of the 5-year period
Except the representation status of the incumbent bargaining agent, all provisions of the CBA, whether economic or non-economic, may be renegotiated
not later than 3 years after its execution.
Effectivity of the Renegotiated CBA will depend upon the ff situations:
a. If the parties are able to come to an agreement within 6 months from expiry of the 3
rd
year of the CBA, the effectivity of the renegotiated agreement
shall retroact to the day immediately following the expiry of the 3
rd
year.
b. If the agreement was arrived at after 6 months of negotiations, the parties not anybody else are given the discretion to fix the effectivity thereof
c. If 6 months have elapsed na dthe negotiations result in a deadlock, and to resolve the impasse, the matter is submitted for arbitration, the effectivity
of the renegotiated CBA shall be the date when the arbitrator renders his final decision.
The CBA will be deemed ratified if it is approved by the majority of the employees covered by the bargaining unit. Without ratification, the CBA cannot be
registered.
Ratification of a CBA does not validate a void election of union officers because what the membership ratified were the terms of the new CBA and not the
issue of union leadership
Under exceptional conditions, the parties can agree to suspend their CBA (10 year suspension of CBA Valid) p. 295

Art. 254. Injunction prohibited. No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued
by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code. (As amended by Batas Pambansa Bilang 227, June 1, 1982)

No-Injunction Policy injunctions may be issued only in cases of extreme necessity based on legal grounds clearly established, after due considerations
or hearing and when all efforts at conciliation are exhausted
When injunction in Labor Disputes May issue:
a. In case of actual or threatened commission of any prohibited or unlawful acts, or when necessary to require the performance of a particular act,
which if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favour of
such party, or
b. In case of a labor dispute causing or likely to cause a strike or lockout in an industry indispensible to the national interest.
Who may issue injunction in labor disputes:
a. NLRC in ordinary disputes or in cases arising from any violation of Art. 264
b. Sec. of Labor and Employment in labor disputes causing or likely to case a strike or lockout in an industry indispensable to the national interest.
Ordinary courts cannot issue injunction in cases involving or growing out of a labor dispute. Thus, a civil court cannot issue an injunction to restrain
the execution of a final and executor judgment of the NLRC
Labor Arbiters can also issue injunctions on matters covered by Art. 264

Art. 255. Exclusive bargaining representation and workers participation in policy and decision-making. The labor organization designated or selected by
the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the employees in such unit for the purpose of
collective bargaining. However, an individual employee or group of employees shall have the right at any time to present grievances to their employer.
Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the Secretary of Labor and
Employment may promulgate, to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes
will directly affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management councils: Provided, That the
representatives of the workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment.

The right of employees to participate in policy and decision-making processes extends only to matters that directly affect their rights, benefits and welfare.
This right can be exercised through a labor-management council to be formed jointly by the employer and the employees.
In unionized establishments, the employees representatives to the council shall be nominated by the exclusive bargaining representative.
In non-unionized establishments, the employers representative shall be elected directly by the employees at large.
Collective Bargaining Unit refers to a group of employees sharing mutual interests within a given employer unit, compromised 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.
Appropriate Collective Bargaining Unit group of employees of a given employer, comprised of all or less than all of the entire body of employees,
which the collective interest of all the employees, consistent with equity to the employer, indicate to be the best suited to serve the reciprocal rights and
duties of the parties under the collective bargaining provisions of law.
o A bargaining unit to be considered appropriate must effect a grouping of employees who have substantial, mutual interests in wages, hours of work,
working conditions and other subjects of collective bargaining.
o A bargaining unit composed of a mixture of rank-and-file and supervisory employees is not an appropriate bargaining unit.
o A bargaining unit composed of employees with entirely different working conditions, hours of work, rates of pay, categories of positions and
employment status, is not an appropriate bargaining unit.
o The basic test of a bargaining units acceptability is whether or not it is fundamentally the combination which will best assure to all
employees the exercise of their collective bargaining rights. The fundamental factors are:
a. Will of the employees
b. Affinity and unity of employees interest, such as substantial similarity of work and duties or similarity of compensation and working conditions
c. Prior collective bargaining history and
d. Similarity of employment statuts
Globe Doctrine the express will or desire of the employees may be considered in determining the appropriate collective bargaining unit.
The doctrine sanctions the holding of a series of elections, not for the purpose of determining the collective bargaining agent but for the specific
purpose of permitting the employees in each of the several categories to select the group which each chooses as a collective bargaining unit.
Community of Interest Rule the proper bargaining unit may be fixed on the basis of the affinity and unity of the employees interest, such as
substantial similarity of work and duties or similarity of compensation and working conditions.
Prior Collective Bargaining History a factor that may be considered in fixing the bargaining unit but it is not a decisive factor.
Prior collective bargaining history may be disregarded where the circumstances had been so altered or where the reciprocal relationship of the
employer and the particular bargaining agent has been so changed that the past mutual experience can no longer be considered as a reliable guid
to the present determination of the bargaining unit.
Similarity of Employment Status Rule this rule requires that temporary, seasonal or probationary employees be grouped as one category and be
treated separately from permanent employees.
One Company-One Union Policy the labor code discourages the proliferation of unions in an establishment
The general policy is one company-one union unless circumstances otherwise require. The policy is anchored on the greater mutal benefits which
the parties could derive
The One-company-one union policy, however, yields to certain exceptions:
a. When supervisory employees organize themselves into a bargaining unit separate and distinct from the bargaining unit of rank-and-file employee
b. Where the employer unit has to give way to other bargaining units, like the craft unit, plant unit or subdivision thereof
c. When a certain class of employees are excluded from the coverage of the bargaining unit.
Two corporations cannot be treated as a single bargaining unit even if their business are related. The reason is because the two companies are
distinct entities with separate juridical personality.
The collective bargaining agent may be determined through the ff modes:
a. Voluntary recognition
b. Certification Election
c. Run-off election
Voluntary recognition process by which a legitimate labor organization is acknowledged by the employer as the exclusive collective bargaining agent in
a bargaining unit. VR is proper only in unorganized establishments with only one legitimate labor organization operating within the bargaining unit
o In case of VR, it is required of the employer and the union to submit, within 30 days from recognition, a Notice of Voluntary Recognition to the
Regional Office of the DOLE which issued the unions certificate of registration or certificate of creation of a chartered local
o The notice of VR shall be accompanied by the ff docs:
1. Joint statement under oath attesting to the fact of voluntary recognition
2. Certificate of posting of the joint statement of voluntary recognition for 15 consecutive days in 2 conspicuous places of the establishment or
bargaining unit where the union seeks to operate.
3. Statement on the approximate number of employees in the bargaining unit, accompanied by the names of those who support the VR comprising
at least a majority of the members of the bargaining unit
4. Statement that the labor union is the only LLO operating within the bargaining unit.
This shall be certified under oath by the employer and president of the recognized union.
o The fact of VR shall be recorded in the roster of legitimate labor unions by the Labor Relations Division of the R.O. of the DOLE.
o From the time of recording of VR, the recognized labor union shall enjoy the rights, privileges and obligations of an existing bargaining unit
o Entry of VR shall bar the filing of a petition for C.E. by any labor organization for a period of one (1) year from the date of entry of VR. Upon
expiration of the one-year period, any LLO may file a petition for CE in the same bargaining unit, unless a CBA between the employer and the
voluntarily recognized union was executed and registered with the DOLE.
Certification Election process of determining through secret ballot the sole and exclusive collective bargaining representative of the employees in an
appropriate bargaining unit. It can be done through an order from the DOLE or by agreement of the parties, in which case, it is called consent election.
Run-Off Election If none of the contenders in a CE (with at least 3 choices) obtains a majority of the valid votes cast, the labor unions receiving the 2
highest number of votes shall be subjected to an election to determine which of them should be the collective bargaining representative
o Conditions for Holding a Run-Off Election:
a. The CE should have at least 3 choices
b. None of the choices obtained a majority of the valid votes cast
c. The total number of votes for ALL contending UNIONS is at least 50 % of the number of votes cast
d. There are no challenged ballots, which can materially alter the result,
Only the 2 labor unions receiving the highest number of votes can participate in a run-off election. No Union shall not be a choice in a run-off
election
A collective bargaining agent represents not only the union members but also the non-union members within the bargaining unit
Substitutionary Doctrine - employees cannot revoke a valid executed CBA by the simple expedient of changing their bargaining agent. The new
bargaining agent is obliged to respect the CBA, although it could negotiate for the shortening of the life of the said agreement.



Art. 256. Representation issue in organized establishments. In organized establishments, when a verified petition questioning the majority status of the
incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the expiration of the collective bargaining
agreement, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by the written consent of at least twenty-
five percent (25%) of all the employees in the bargaining unit to ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at
least a majority of all eligible voters in the unit must have cast their votes. The labor union receiving the majority of the valid votes cast shall be certified as the
exclusive bargaining agent of all the workers in the unit. When an election which provides for three or more choices results in no choice receiving a majority of
the valid votes cast, a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided, that the total number of
votes for all contending unions is at least fifty percent (50%) of the number of votes cast.
At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for
certification election is filed.

Purpose of Certification Election to ascertain the wishes of the majority of the employees in the bargaining unit on whether to be represented by a
labor organization and which labor organization
Significance of CE fairest and most effective way of determining which labor organization can truly represent the working force in the appropriate
bargaining unit.
Nature of Certification Proceedings is not a litigation in the sense. It is an investigation of non-adversary, fact-finding character in which the Med-
Arbiter plays the part of a disinterested investigator seeking merely to ascertain the desires of employees as to the matter of their representation, especially
so where the petition for CE and the claim of majority representation are uncontested. However, the moment two rival unions claim representation, a
certification proceeding becomes adversarial, hence, it has to be decided according to a lawful evidence
Venue of Certification Proceedings RO of the DOLE which issued the petitioning unions certificate of registration or certificate of creation of chartered
local.
Who may File a Petition for CE:
GR: Only a LEGITIMATE labor organization can file
E: The employer can file a petition for CE when it is requested by a legitimate labor organization to bargain collectively.
Proper Time for Filing a Petition for CE
In the absence of a CBA, or if the CBA has not been duly registered in accordance with Art. 231, a petition for CE may be filed at any time
If there is a duly registered CBA, a petition for CE can be filed only during the freedom period
Form and Contents of Petition
The petition shall be in WRITING and VERIFIED by the president of the petitioning union. It shall contain the following allegations:
a. Name and address of the petitioner and its affiliation, the date and number of its registration and number of its certificate of registration. If the petition
is file by a federation or national union, the date and number of the certificate of registration or certificate of creation of chartered local;
b. Name, address and nature of the employers business;
c. Description of the bargaining unit;
d. Appropriate number of employees in the bargaining unit;
e. Names and address of other legitimate unions in the bargaining unit;
f. Statement indicating any of the following circumstances
i. That the bargaining unit is organized or that there is no registered CBA covering the employees in the bargaining unit
ii. If there exists a duly registered collective bargaining agreement, that the petition is filed within the 60-day freedom period of such agreement;
iii. If another union has been previously recognized voluntarily or certified in a valid CE, consent election, run-off election, that the petition is filed
outside the one-year period from entry of voluntary recognition or conduct of CE, consent election, run-off election and that no appeal is
pending thereon
g. Signatures of atleast 25% of all employees in an appropriate bargaining unit, if the establishment is organized; and
h. Other relevant facts.
The absence of an express allegation that the members constitute a proper bargaining unit is not fatal in a certification proceeding because a
certification proceeding is not a litigation but a mere investigation which is non-adversarial and fact-finding in character
Intervention
Labor unions with substantial interest in the CE have the right to intervene and take part in the certification proceedings
In an ORGANIZED ESTABLISHMENT, the motion for intervention should be done during the freedom period. In UNORGANIZED
ESTABLISHMENT, the motion for intervention may be filed at any time prior to the decision of the Med-Arbiter
The incumbent collective bargaining agent automatically becomes a forced intervenor in a petition for CE.
The form and contents of a motion for intervention shall be the same as that of a petition for CE, however, it need not be supported by the written
consent of 25% of the employees within the bargaining unit.
The By-Stander Principle the employer is a mere by-stander because the proceeding is the sole concern of workers.
o Exceptions to the by-stander principle:
a. When the employer files a petition for CE pursuant to Art 258 because it was requested to bargain collectively. However, after the filing of the
petition, the role of the employer ceases. He reverts back to his role as a mere by-stander
b. When the employer invokes certain valid defences, in which case, it becomes imperative to let the employer participate in the proceedings in order
that his interest could amply be protected
o Employers Defenses:
a. Lack of Er-Ee relationship
b. Lack of legal personality on the part of the petitioning union;
a. If it is not registered with the DOLE or
b. If its registration has been cancelled by virtue of a final judgment
- The mere pendency of the cancellation proceedings does not disqualify a labor organization from filing a petition for CE. During the
pendency of the cancellation proceedings, the legal personality of the labor organization subsists.
c. Lack of 25% written consent;
- A petition for CE in an organized establishment should be supported by the written consent of atleast 25% of all the employees in the
bargaining unit
- Organized establishment refers to an enterprise where there exists a recognized or certified sole and exclusive bargaining agent.
- If the petition for CE is supported by the written consent of 25% of the employees in the bargaining unit, it is mandatory on the part of the
Med-Arbiter to order a CE..
- Failure to submit the 25% written consent is a ground for dismissal (merely discretionary on the part of the Med-Arbiter); no longer
strictly construed
- Effect of withdrawal of consent:
If the withdrawal or retraction of consent was made BEFORE the filing of the petition for CE, the Med-Arbiter may not order the
holding of a CE
If the withdrawal or retraction of consent was made AFTER the filing of the petition for CE, the Med-Arbiter can still order the
holding of a CE
d. Inappropriate bargaining unit;
a. If it fragments the employer unit
b. If the composition thereof is a mixture of rank-and-file and supervisory employees, or a mixture of supervisory and managerial
employees.
c. If it is composed of managerial employees, or
d. If it is composed of members of a cooperative
e. Contract-bar rule
- If there is a duly registered CBA, no petition questioning the majority status of the incumbent bargaining agent shall be entertained and no CE
shall be conducted outside of the 60 day period immediately before the expiry of the 5 year term of the CBA
f. Voluntary recognition bar rule
- Voluntary recognition duly entered in the roster of LLO shall bar the filing of a petition for CE for a period of 1 year from the date of entry of
voluntary recognition
g. Election-bar rule
- No petition for CE may be filed within 1 year from the date of a valid CE, consent election or run-off election
- In case of appeal, the running of the one-year period is suspended until the decision on the appeal has become final and executor.
- An election is valid if at least a majority of all eligible voters in the bargaining unit have cast their votes.
h. Negotiation-bar rule
- No representation question may be entertained if, within the one-year period from the date of entry of voluntary recognition, certification election
or run-off election, the duly recognized or certified union has commenced negotiations with the employer in accordance with Art. 250
i. Deadlock- bar rule
- No representation question may be entertained if, before the filing of a petition for CE, a bargaining deadlock to which an incumbent or certified
bargaining agent is a party, had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout
Questions Pertaining to Validity of Registration
- The ff questions cannot be raised in a motion to dismiss the petition for certification election:
a. Validity of the registration of the CBA, or
b. Validity of the unions registration (this may arise either because the union failed to comply with the mandatory requirements for registration, such as
the attestation requirements or because the registration was obtained by means of fraud or misrepresentation)
- The remedy is to file an independent petition for cancellation of registration with the Regional Director of the DOLE
Effect of ULP Charge will not affect the holding of a CE. However, a complaint for ULP charging a labor organization to be company-dominated will bar
a CE.
Conduct of Certification Election:
- Qualified Voters all that is needed is to belong to the bargaining unit.
o Probationary employees are eligible to vote as long as they are covered by the collective bargaining unit
o Strikers are eligible to vote in a certification election unless, in the meantime, they are declared to have lost their employee status
o An employee who has been dismissed from work but has contested the legality of dismissal shall be considered a qualified voter, unless his
dismissal was declared valid in a final judgment at the time of the holding of the certification election
o Members of the Iglesia ni Kristo sect are qualified to vote in a certification election
- Segregation of votes - in case of disagreement over the voters list or over the eligibility of voters, all contested voters shall be allowed to vote. However,
their ballots shall be segregated and sealed in individual employees.
Notice of Election the election officer shall cause the posting of notice of election at least 10 days before the actual date of the election in two most
conspicuous places in the company premises. The notice shall contain:
a. The date and time of the election
b. The names of all contending unions
c. The description of the bargaining unit and list of eligible and challenged votes.
- One day deficiency in giving notice of election will not suffice to nullify a certification election if a substantial number of employees had in fact voted
accordingly on the election day
Challenging of Votes:
a. is not an employee of the company; or
b. is not a member of the appropriate bargaining unit which petitioner seeks to represent.
- When a vote is properly challenged, the Election Officer shall place the ballot in an envelope and seal the same in the presence of the voter and the
representative of the contending unions and employer
Election Protest
- Any party-in-interest may file a protest based on the conduct or mechanics of the election. Protests not so raised are deemed waived.
- A labor organization which did not take part in the CE cannot file a protest.
- The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, arguments and evidence therefor, within 5 days after the close
of the election proceedings. ( the phrase close of the election proceedings refers to that period from closing of the polls to the counting and tabulation of
votes)
Failure of Election when less than a majority of all eligible voters have cast their votes. Failure of election shall not bar the filing of a motion for the
immediate holding of another certification/consent election within 6 months from the declaration of failure of election
Proclamation: The Med-Arbiter shall proclaim the union which obtained the majority of the valid votes cast if the following conditions are met:
a. No protest has been filed, or if one was filed, the same was not perfected within the 5-day period for perfection of the protest
b. No challenge or eligibility issue was raised, or if one was raised, the resolution of the same will not materially change the result
Direct Certification no longer allowed as a method of selecting the exclusive bargaining agent.

Art. 257. Petitions in unorganized establishments. In any establishment where there is no certified bargaining agent, a certification election shall automatically
be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization.

Unorganized establishment a firm or company where there is no certified or recognized collective bargaining agent for a particular bargaining unit
A company where there is a certified bargaining agent for the rank-and-file employees but none for the supervisors, would still be considered as
unorganized establishment with respect to the supervisory employee
The mere filing of a petition for CE by a LLO is enough to order the holding of a certification election

Art. 258. When an employer may file petition. When requested to bargain collectively, an employer may petition the Bureau for an election. If there is no
existing certified collective bargaining agreement in the unit, the Bureau shall, after hearing, order a certification election.
All certification cases shall be decided within twenty (20) working days.
The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the Secretary of Labor.

2 options available to the employer if a LLO requests him to bargain collectively:
a. Voluntary recognize the representation status of the labor organization, or
b. File a petition for certification election

Art. 259. Appeal from certification election orders. Any party to an election may appeal the order or results of the election as determined by the Med-Arbiter
directly to the Secretary of Labor and Employment on the ground that the rules and regulations or parts thereof established by the Secretary of Labor and
Employment for the conduct of the election have been violated. Such appeal shall be decided within fifteen (15) calendar days. (As amended by Section 25,
Republic Act No. 6715, March 21, 1989)

Remedy from a decision in a petition for CE
o Unorganized establishments
- An order DISMISSING a petition for CE in an unorganized establishment may be appealed to the Office of the Secretary of Labor and Employment
within 10 days from receipt thereof
- An order GRANTING a petition for CE in an unorganized establishment is not appealable.
- However, under certain exceptional situations, appeal may be resorted to if the Med-Arbiter orders the holding of a certification election despite the:
a. Lack of Er-Ee relationship with the members of the bargaining unit
b. Lack of legal personality on the part of the petitioning union either because it is not listed in the registry of legitimate unions or because its
registration has been cancelled
c. Improper composition of the bargaining unit
o Organized Establishments
- The order dismissing or granting the petition for CE may be appealed to the Office of the Secretary of Labor and Employment within 10 days from
receipt
o Form of Appeal shall be under oath and shall consist or a memorandum of appeal, specifically stating the grounds for appeal and supporting
arguments and evidence
o Where to File Appeals RO of the DOLE where the petition originated
o Effect of Appeal The filing of appeal stays the holding of CE.

Title VII-A
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

Art. 260. Grievance machinery and voluntary arbitration. The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the
mutual observance of its terms and conditions. They shall establish a machinery for the adjustment and resolution of grievances arising from the interpretation or
implementation of their Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its submission shall automatically be
referred to voluntary arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or
include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably from the listing of qualified
Voluntary Arbitrators duly accredited by the Board. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall
designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, pursuant to the selection procedure agreed upon in the Collective
Bargaining Agreement, which shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described
above.

Grievance a dispute or controversy between an employer and the collective bargaining agent, individual employee or group of employees, arising from
interpretation or implementation of the CBA or interpretation or enforcement of company personnel policies.
Grievance Machinery where the grievances are processed
- If the CBA does not provide for a grievance machinery, the parties are required to create, within 10 days from signing of the CBA, a grievance committee
to be composed of at least 2 representatives from the member of the bargaining unit and at least 2 from the employer.
Grievance Procedure unless a different procedure is prescribed in the CBA, the following procedures shall be observed:
a. An employee shall present his grievance or complaint orally or in writing to the shop steward. Upon receipt thereof, the shop steward shall verify the
facts and determine whether or not the grievance is valid
b. If the grievance is valid, the shop steward shall immediately bring the complaint to the employees immediate supervisor. The shop steward, the
employee and his immediate supervisor shall exert efforts to settle the grievance at their level.
c. If no settlement is reached, the grievance shall be referred to the grievance committee which shall have 10 days to decide the case.
- Where the issue involves or arises from the interpretation or implementation in the CBA or from any order etc and such issue cannot be resolved at
the level of the shop steward or he supervisor, the same may be referred immediately to the grievance committee.
Grievance Handling part of the collective bargaining process. Collective bargaining does not end with the execution of the collective bargaining
agreement. It is a continuous process
Voluntary Arbitration a system whereby the parties agree to refer their dispute to an impartial third person for a final and binding resolution
Compulsory Arbitration the third is appointed by the government.

Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement
and those arising from the interpretation or enforcement of company personnel policies referred to in the immediately preceding article. Accordingly, violations of
a Collective Bargaining Agreement, except those which are gross in character, shall no longer be treated as unfair labor practice and shall be resolved as
grievances under the Collective Bargaining Agreement. For purposes of this article, gross violations of Collective Bargaining Agreement shall mean flagrant
and/or malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not entertain disputes, grievances or matters
under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall immediately dispose and refer the same to the
Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining Agreement.

Voluntary Arbitrator a person accredited as such by the NCMB or any person chosen or designated by the parties in the CBA or one chosen with or
without the assistance of the NCMB pursuant to a selection procedure agreed upon in the CBA, or any official who may be authorized by the Secretary of
Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute, whose function is to resolve
the disputes submitted to it by the parties
The parties can choose a Labor Arbiter to act as voluntary arbitrator.
Jurisdiction of Voluntary Arbitrators (Original and Exclusive Jurisdiction)
a. Unresolved grievance arising from interpretation or implementation of a CBA
b. Unresolved grievance arising from interpretation or enforcement of company personnel policies
c. Disputes arising from wage distortion caused by the application any wag order in organized establishments; and
d. Disputes arising from interpretation and implementation of the productivity incentive programs under RA 6971
Jurisdictional Proconditions in order a voluntary arbitrator can acquire jurisdiction:
a. The dispute has been brought to the grievance machinery for resolution
b. The grievance machinery failed to resolve the dispute; and
c. The parties agree to submit the dispute for voluntary arbitration.
Jurisdiction over Termination Disputes
GR: disputes over the validity of dismissal or severance of employment do not fall within the jurisdiction of voluntary arbitrator. They fall within the original and
exclusive jurisdiction of the Labor Arbitrator
E: If the disputes over the validity of dismissal or severance of employment pertains to interpretation or implementation of a collective bargaining agreement or
company personnel policy. (Voluntary Arbitrators shall have jurisdiction)
Where the dispute is just in the interpretation, implementation or enforcement stage, it may be referred to the grievance machinery set up in the CBA or to
voluntary arbitration. Where there was already actual termination (violation of rights) , it is already cognizable by the Labor Arbitrator.
Termination of employment resulting from enforcement of disciplinary rules and regulations do not fall within the jurisdiction of voluntary arbitrators. They
fall within the original and exclusive jurisdiction of the LA.
Disciplinary rules and regulations are different from personnel policies in the sense that personnel policies are non-punitive, while disciplinary rules and
regulations are punitive in character, dealing, as it does with employee discipline.
Personnel policies guiding principles stated in broad, long-range terms that express the philosophy or beliefs of an organizations top authority
regarding personnel matters.

Art. 262. Jurisdiction over other labor disputes. The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and
decide all other labor disputes including unfair labor practices and bargaining deadlocks.

all other labor disputes may include termination disputes, provided that the agreement between the parties states in unequivocal language that the
parties conform to the submission of termination disputes to voluntary arbitration. It is not sufficient to merely say that the parties to the CBA agree on the
principle that all disputes should first be submitted to a Voluntary Arbitrator. There is need for an EXPRESS STIPULATION in the CBA that termination
disputes should be resolved by a Voluntary Arbitrator or Panel of Voluntary Arbitrators, considering that termination disputes fall within a special class of
disputes that are generally within the exclusive original jurisdiction of Labor Arbiters
Agreement of the Parties is Necessary to Confer Jurisdiction to the Voluntary Arbitrator.

Art. 262-A. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the power to hold hearings, receive evidences and take whatever
action is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a voluntary settlement between parties.
All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause or upon agreement by the
parties.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrator or panel of Voluntary Arbitrators to render an award or decision within
twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain the facts and the law on which it is based. It shall be final and
executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties.
Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides, in case
of the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators, for any reason, may issue a writ of execution requiring either the sheriff
of the Commission or regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision, order or
award.

Scope of Arbitration Awards the power and authority of voluntary arbitrators to decide a case is limited to those matters which have been submitted to
them for arbitration. They may grant any remedy or relief which they may deem just and equitable, provided that it is within the scope of the submission
agreement
Decisions or awards of Voluntary Arbitrators are appealable to the CA under Rule 43 of the RoC.
The voluntary arbitrator has the power to issue writ of execution and may require the sheriff of the NLRC or the regular courts or any public official whom
the parties may designate in the submission agreement, to execute the arbitration award.
In the absence of the voluntary arbitrator or in case of his incapacity, the motion for issuance of writ of execution may be filed with the Labor Arbitrator in
the region having jurisdiction over the work place.

Art. 262-B. Cost of voluntary arbitration and Voluntary Arbitrators fee. The parties to a Collective Bargaining Agreement shall provide therein a
proportionate sharing scheme on the cost of voluntary arbitration including the Voluntary Arbitrators fee. The fixing of fee of Voluntary Arbitrators, whether
shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:
1. Nature of the case;
2. Time consumed in hearing the case;
3. Professional standing of the Voluntary Arbitrator;
4. Capacity to pay of the parties; and
5. Fees provided for in the Revised Rules of Court.

- Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary arbitrators fee shall be shared equally by the parties. If their
funds are insufficient, they may avail of the subsidy under the Special Voluntary Arbitrators Fund.

















































Title VIII
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES
Chapter I
STRIKES AND LOCKOUTS
Art. 263. Strikes, picketing and lockouts.
a) It is the policy of the State to encourage free trade unionism and free collective bargaining.
b) Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for their mutual benefit and protection. The right
of legitimate labor organizations to strike and picket and of employers to lockout, consistent with the national interest, shall continue to be recognized
and respected. However, no labor union may strike and no employer may declare a lockout on grounds involving inter-union and intra-union
disputes.
c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of
lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and
in the absence of a duly certified or recognized bargaining agent, the notice of strike may be filed by any legitimate labor organization in behalf of its
members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws,
which may constitute union busting, where the existence of the union is threatened, the 15-day cooling-off period shall not apply and the union may
take action immediately.
d) The notice must be in accordance with such implementing rules and regulations as the Minister of Labor and Employment may promulgate.
e) During the cooling-off period, it shall be the duty of the Ministry to exert all efforts at mediation and conciliation to effect a voluntary settlement.
Should the dispute remain unsettled until the lapse of the requisite number of days from the mandatory filing of the notice, the labor union may strike
or the employer may declare a lockout.
f) A decision to declare a strike must be approved by a majority of the total union membership in the bargaining unit concerned, obtained by secret
ballot in meetings or referenda called for that purpose. A decision to declare a lockout must be approved by a majority of the board of directors of the
corporation or association or of the partners in a partnership, obtained by secret ballot in a meeting called for that purpose. The decision shall be
valid for the duration of the dispute based on substantially the same grounds considered when the strike or lockout vote was taken. The Ministry
may, at its own initiative or upon the request of any affected party, supervise the conduct of the secret balloting. In every case, the union or the
employer shall furnish the Ministry the results of the voting at least seven days before the intended strike or lockout, subject to the cooling-off period
herein provided.
g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the
Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in
the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees
shall immediately return-to-work and the employer shall immediately resume operations and readmit all workers under the same terms and
conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law
enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.
In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals,
clinics and similar medical institutions shall, to every extent possible, be avoided, and all serious efforts, not only by labor and management but
government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise,
however legitimate, by labor of its right to strike and by management to lockout. In labor disputes adversely affecting the continued operation of such
hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal
workforce of medical and other health personnel, whose movement and services shall be unhampered and unrestricted, as are necessary to insure
the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In
such cases, therefore, the Secretary of Labor and Employment may immediately assume, within twenty four (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same or certify it to the Commission for compulsory arbitration. For this purpose, the
contending parties are strictly enjoined to comply with such orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and
Employment or the Commission, under pain of immediate disciplinary action, including dismissal or loss of employment status or payment by the
locking-out employer of backwages, damages and other affirmative relief, even criminal prosecution against either or both of them.
The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the industries that, in his opinion, are
indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or
terminate the same.
h) Before or at any stage of the compulsory arbitration process, the parties may opt to submit their dispute to voluntary arbitration.
i) The Secretary of Labor and Employment, the Commission or the voluntary arbitrator shall decide or resolve the dispute, as the case may be. The
decision of the President, the Secretary of Labor and Employment, the Commission or the voluntary arbitrator shall be final and executory ten (10)
calendar days after receipt thereof by the parties.

Right to Engage in Concerted Activities for purposes of Collective Bargaining or for their Mutual Benefit and Protection
Common types of these concerted activities: a. strikes; b. picketing; and c. boycotts
Strike any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute
To constitute a strike:
a) Temporary; and
b) The result of a labor dispute
Labor Dispute any controversy or matter concerning terms and 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 employees.
o Mass resignation of employees in protest of the dismissal of an employee is not a strike because the stoppage of work is not temporary. Mass
resignation evidently intends to permanently cut-off the employment relation
o The refusal on the part of employees to work for the purpose of joining a mass demonstration to protest police abuses does not constitute a stike
because the stoppage of work, though temporary, is not the result of a labor dispute.



2 GENERAL Kinds of Strike:
a) Unfair Labor Strike is a concerted activity staged as a result of the employers unfair labor practice. To be considered an unfair labor practice
strike, it is not necessary that the employer should actually commit an ULP. It is enough that the strikers believed in GF that the employer has
committed an ULP.
b) Economic Strike a concerted activity staged to force wage or other concessions from the employer which he is not required by law to grant. A
strike initially economic in character may subsequently turn into an ULP strike if in the process, the employer commits ULP against the strikers.

Forms of Strike (As to the manner of execution):
a) Walk-out is a form of strike where the employees leave their workplace and establish themselves outside the plant and refuse access to the
owners and other employees who want to work
b) Sit-down a form of strike where the strikers establish themselves within the plant, stop its production and refuse access to the owners and other
employees who want to work
c) Slowdown form of strike where the strikers merely retard production.
d) Mass Leave form of strike where the strikers take time-off from work simultaneously.
e) Wildcat a strike staged without the sanction or authorization of the union. (A wildcat is illegal)

Form of strike (as to the employer against whom it is directed):
a) Primary Strike this is directed against the employer because of a labor dispute with him.
b) Secondary Strike this is directed against the employer connected by product or employment with alleged unfair labor conditions or practices. (Ex.
If a manufacturer engages in ULP, a strike by the employees of its distributors in protest of such ULP)
c) Sympathy Strike strike staged to make common cause with other strikers in other establishments or companies, without the existence of any
dispute between the striking employees and their employer. In a sympathy strike, there need not be a connection of product or employment. The
connection of products or employment with the primary labor dispute is the distinguishing factor between a secondary strike and a sympathy strike.
(Held to be illegal)
d) General Strike directed against all the employer, participated in by the workmen irrespective of the employers for whom they are working.
e) Particular Strike this is directed solely against the strikers employer.

Requisites of a Valid Strike:
a) It should be staged by a certified or duly recognized collective bargaining representative or in the absence thereof, by a legitimate labor organization;
b) It should be declared only on grounds specified by law; and
c) It should comply with the requirements prescribed by law
o Under the rules, only a certified or duly recognized collective bargaining representative can declare a strike, be it an economic strike or an unfair
labor strike. In the absence of a certified or duly recognized collective bargaining representative, a strike can be declared by a LLO in the
establishment, but only on grounds of ULP. Therefore, employees of establishments where there is no union cannot strike
o Legal Grounds for Declaring a strike:
1. Collective Bargaining Deadlock (CBD defined as a situation between the labor and management of the company where there is
failure in the collective bargaining negotiations resulting in stalemate. There is deadlock when there is a complete blocking or stoppage
resulting from the action of equal and opposed forces)
2. ULP (those that are enumerated under Art. 248 and 249)
- A strike declared on grounds other than ULP or collective bargaining deadlock is ILLEGAL.
o Legal Requirements of a Strike: (MANDATORY)
1. Notice of Strike;
2. Strike Vote; and
3. Strike Vote report

Notice of Strike should be filed with the Regional Branch of the NCMB and served to the company, at least:
a) 30 days before the intended date of strike if the ground for strike is based on collective bargaining deadlock; or
b) 15 days before the intended date of strike if the ground for strike is based on ULP
- The purpose of the notice of strike is to provide an opportunity for mediation and conciliation
Cooling-off period span of time allotted by law for the parties to settle their disputes in a peaceful manner before declaring a strike. The duration of the
cooling-off period are as follows:
a) 30 days from the filing of the notice of strike if the ground for strike is based on collective bargaining deadlock
b) 15 days from the filing of the notice of strike if the ground for strike is based on ULP.
o Observance of the cooling-off period is MANDATORY, hence, the union cannot strike before the lapse of the cooling-off period. If the union strike
without observing the cooling-off period, the strike is illegal.
o However, in case of ULP involving the dismissal from employment of a union officer duly elected in accordance with the constitution and by-laws
which may constitute union busting and the existence of the union is threatened, the 15-day cooling off period need not be observed and the
union may strike AFTER the STRIKE VOTE is conducted and the results thereof submitted to the appropriate regional branch of the NCMB.
Strike Vote The decision to declare a strike must be approved by the majority of the total union membership in the bargaining unit concerned, through
secret ballot in a meeting or referendum called for the purpose.
o The conduct of the secret balloting MAY be supervised by the regional branch of the NCMB at its own initiative or upon the request of any affected party.
o The notice of meeting or referendum should be submitted to the regional branch of the NCMB at least 24 hours before the holding of the meeting or
referendum.
o The purpose of the strike vote is to ensure that the intended strike is a majority decision
o The decision to declare a strike shall be valid for the duration of the dispute based on substantially the same grounds considered when the strike vote was
taken.
The union should report to the regional branch of the NCMB the results of the voting at least 7 days before the intended strike
The Seven-Day Strike Ban is the 7-day period reckoned from the submission of the strike vote report. During this period the union is forbidden to strike.
Observance of the 7-day strike ban is MANDATORY.
Should the dispute remain unsettled after the lapse of the cooling-off period and the 7-day strike ban, the union may go on STRIKE.
Strike in Medical Institutions discouraged. Should a strike be declared, the striking union must provide and maintain an EFFECTIVE SKELETAL
WORKFORCE of medical and health personnel whose movement and services shall be unhampered and unrestricted. The Secretary of Labor and
Employment may immediately assume jurisdiction over the dispute or certify the same for compulsory arbitration within 24 hours from knowledge of the
occurrence of the strike.
Return-to-Work Order If a return-to-work order is issued by the Secretary of Labor and Employment, the strikers are bound to immediately comply with
it even if a motion for reconsideration has been filed. The reason is because a RTW ORDER is IMMEDIATELY EXECUTORY. This is not a matter of option
but of obligation. Strikers who defy a RTW order may be declared to have lost their employment status
Employment Status of Strikers
o A strike is not a renunciation of employment relation. While out on strike, it is not considered that the strikers have abandoned their employment but
rather have only ceased from their labor. The mere participation of a worker in a LAWFUL strike is not a ground for termination of his employment,
even if a replacement had been hired by the employer during such lawful strike.
o However, union officers who knowingly participate in an illegal strike, and any striker, whether union officer or not, who knowingly participates in the
commission of illegal acts during a strike may be declared to have lost their employment status.

Reinstatement of Strikers:
GR: The striking employees are entitled to reinstatement, regardless of whether or not the strike was the consequence of the employers ULP.
E: (the following strikers are not entitled to reinstatements)
1. Union officers who knowingly participate in an illegal strike
2. Union officers or members who knowingly participate in the commission of illegal acts during the strike; and
3. Strikers who defy a return-to-work order

Wages During Strike
- a fair days wage for a fair days labor strikers are not entitled to their wages during the period of the strike even if the strike is legal.
- However, backwages may be awarded:
a. When the supposed strikers did not strike but were practically locked out; and
b. Where the strikers voluntarily and unconditionally offered to return to work, but the employer refused to accept the offer without justifiable reason.

Legality of Strike usually dependent on the purpose sought to be attained and the means employed therefor. Thus:
a. If the purpose is lawful and he means employed are lawful, the strike is LEGAL
b. If declared for both a legal and illegal purpose, the strike is ILLEGAL in its entirety.
c. If the purpose is lawful but the means employed are unlawful, the strike is ILLEGAL.
o A strike may be valid at its inception because its objective or purpose is lawful, but it becomes illegal where the means employed are illegal.
o The legality of a strike does not depend upon the reasonableness of the demands. Similarly, the mere fact that the demands of the union were
rejected does not make the strike illegal
o A strike staged in GF under the belief that the management committed ULP is not illegal. A strike does not automatically carry the stigma of
illegality even if no ULP was actually committed by the employer. It suffices if such a belief in GF is entertained by labor as the inducing factor for
staging a strike. Mere unsubstantiated claim of GF is not enough it should be supported by factual basis.
o However, if no notice of strike was filed and no strike vote was conducted, the strike will be declared illegal even if the union acted in GF and on the
belief that the company was committing an ULP.

The following strikes have been held to be illegal:
a. Strikes staged on grounds other than those prescribed by law. should only be (a) collective bargaining deadlock and (b) ULP
b. Strike staged without complying with any of the legal requirements of a strike should comply with (a) notice of strike, (b) strike vote and (c) strike
vote report
c. Strike declared before the lapse of the cooling-off period or the 7-day strike ban both must be complied with, otherwise, the strike would be illegal
d. Strike declared after the Secretary of Labor and Employment has assumed jurisdiction over the dispute or certified the same for compulsory
arbitration
e. Strike carried out with the use of force, violence, physical injuries, sabotage and unnecessary obscene language (the mere fact that the violent
incidents were not reported to the police does not negate the fact that violence was committed during the strike)
f. Strike declared after the notice of strike has been converted into preventive mediation
g. Strike staged in violation of the no-strike stipulation of a CBA
h. Strike staged without giving the employer ample time to consider and act on the demands of the union
i. Strike without exhausting or availing of the grievance machinery under the CBA
j. Strike staged without first resorting to pacific means provided by law
k. Strike declared to correct wage distortion illegal because the strike is not the remedy prescribed by law to correct wage distortion
l. Strike staged to compel an employer to negotiate a CBA during the pendency of a petition for certification election. illegal because during the
pendency of a certification election proceeding, the duty to bargain collectively does not exist
m. Strike staged by a minority union to compel the employer to bargain with it despite the existence of a certified bargaining agent illegal because no
labor dispute can exist between an employer and a minority union
n. Strike declared for trivial, unjust or unreasonable purpose
o. Strike on a simple violation of the CBA
p. Strike on grounds involving inter-union or intra-union disputes
q. Strike declared without first having bargaining collectively

Sanctions for illegal strike
o Current Doctrine the present rule is than an illegal strike does not automatically warrant the wholesale dismissal of strikers
o Only the ff strikers can be penalized with loss of employment status:
a. Union officers who knowingly participate in an illegal strike; and
b. Union officers or members who knowingly participate in the commission of illegal acts during a strike.
o Art. 264(a) of the LC provides that any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly
participates in the commission of illegal acts during a strike MAY be declared to have lost his employment status. The law, in using the word may,
grants the employer option of declaring a union officer who participated in an illegal strike and any strikers who committed illegal acts during the
strike as having lost their employment status.
The jurisdiction to decide the legality of strikes and lockouts is vested in the Labor Arbiter, not in the Secretary of Labor and Employment.

Liability for Damages Arising from an Illegal Strike
o In order to hold the union and the strikers liable for damages, the best evidence obtainable must be presented
o Actual or compensatory damages cannot be presumed, but must be duly proved with reasonable degree of certainty.
o The local union and not the mother federation is liable for damages resulting from an illegal strike. The reason is because the local union is the
principal and the other federation is a mere agent of the local.

Injunction against Strikers
GR: A strike cannot be enjoined even if it may appear to be illegal because strike is a weapon that the law grants the employees for their protection and
advancement of their interest.
E: A strike may be enjoined:
a. If declared against an industry indispensable to national interest, in which case, the Secretary of Labor and Employment may assume jurisdiction
or certify the dispute for compulsory arbitration. Such assumption or certification has the effect of automatically enjoining the strike.
b. If staged by employees who are not accorded the right to strike, like managerial employees or employees of GOCC with original charters
c. If staged because of an intra-union or inter-union dispute.

Innocent Bystander Doctrine The right to strike and picket may be regulated at the instance of 3
rd
parties or innocent bystanders if it appears that the
inevitable result of its exercise is to create an impression that a labor dispute to which they have no connection or interest exists between them and the
picketing union or constitute an invasion of their rights. Under this situation, courts are empowered to confine or localize the sphere of communication or
the demonstration to the parties to the labor dispute, including those with related interest, and to insulate establishments or persons with no industrial
connection or having interest totally foreign to the context of the dispute.
o An innocent bystander who seeks to enjoin a strike, must satisfy the courts that aside from the grounds specified in Rule 58 of the RoC, it is entirely
different from, without any connection whatsoever to, either party to the dispute and, therefore, its interests are totally foreign to the context thereof

Picketing marching to and fro before the premises of an establishment involved in a dispute, generally accompanied by the carrying and display of a
sign, placard or banner bearing statements in connection with the dispute.
o If peacefully carried out, it cannot be curtailed even in the absence of Er-Ee relationship because peaceful picketing is part of the freedom of speech
guaranteed by the Constitution.
o The right to picket may be regulated at the instance of 3
rd
parties or innocent by-standers if it appears that the inevitable result of the exercise is to
create an impression that a labor dispute, with which they have no connection or interest, exists between them and the picketing union or constitutes
an invasion of their rights.
Injunction against picketing
GR: Picketing cannot be enjoined because it is part of the freedom of speech guaranteed by the Constitution
E:
a. If necessary to protect the rights of 3
rd
parties or innocent bystanders
b. If the picketing is carried out through the use of illegal means
c. If the picketing is carried out through the use of violence and other illegal acts

Boycott combination formed for the purpose of restricting the market of an individual or group of individuals.
Forms of Boycott:
a. Primary Boycott one which is applied directly alone to the offending person by withdrawing from him all business relations on the part of the
organization that initiated the boycott
b. Secondary Boycott a combination to exercise coercive pressure upon the customers of an employer, actual or prospective, in order to cause
them to withhold or withdraw patronage from him through fear of loss or damage to themselves should they deal with them. (ILLEGAL)

Lockout temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.
To constitute a lockout, the refusal to furnish work must be:
a. Temporary; and
b. The result of a labor dispute
o The refusal of an employer to accept the offer of the strikers to return to work pending resolution of the legality of the strike does not constitute
lockout. A strike cannot be converted into a lockout by the mere expedient of filing a notice of offer to work during the pendency of the labor dispute.
o LOCKOUT vs. SHUTDOWN In a lockout the plant continues to operate, whereas in a shutdown, the plant ceases to operate. A shutdown is the
wilful act of the employer himself following a complete lockout as contrasted to the compulsory stoppage of operations as a result of a strike and
lockout.
o All shutdowns are lockouts but not all lockouts constitute shutdowns.

Requisites of a Valid Lockout:
a. It should be declared only on grounds specified by law; and
b. It should comply with the requirements prescribed by law

Legal Grounds for Declaring a Lockout:
a. Collective Bargaining Deadlock
b. ULP

Legal Requirements of a Lockout: (MANDATORY)
a. Notice of Lockout;
b. Lockout Vote; and
c. Lockout Vote report

Notice of Lockout should be filed with the Regional Branch of the NCMB and served to the union, at least:
a. 30 days before the intended date of lockout if the ground for lockout is based on collective bargaining deadlock; or
b. 15 days before the intended date of lockout if the ground for lockout is based on ULP

Cooling-off period span of time allotted by law for the parties to settle their disputes in a peaceful manner before declaring a lockout. The duration of the
cooling-off period are as follows:
c) 30 days from the filing of the notice of strike if the ground for strike is based on collective bargaining deadlock
d) 15 days from the filing of the notice of lockout if the ground for lockout is based on ULP.

Lockout Vote The decision to declare a lockout must be approved by the majority of the Board of Directors, in case of a corporation, or he partners, in
case of a partnership, through secret ballot in a meeting called for the purpose.
o The decision to declare a lockout shall be valid for the duration of the dispute based on substantially the same grounds considered when the lockout
vote was taken.
o The employer shall furnish the regional branch of the NCMB the notice of meeting at least 24 hours before the holding of such meeting. The regional
branch of the NCMB may supervise the conduct of the secret balloting, at its own initiative or upon the request of any affected party.
o Lockout Vote Report must be submitted by the employer to the regional branch of the NCMB the results of the voting at least 7 days before the
intended lockout
7-day Lockout Ban is the 7-day period reckoned from the submission of the lockout vote report. During this period, the employer is forbidden to lockout.
Observance is mandatory.
Declaration of Lockout should the dispute remain unsettled after the lapse of the cooling-off period and the 7-day lockout ban, the employer may
lockout. Notwithstanding the declaration of lockouts, the NCMB shall continue mediating and conciliating.
Lockout in Medical Institutions discouraged. Should a strike be declared, the employer must provide and maintain an EFFECTIVE SKELETAL
WORKFORCE of medical and health personnel whose movement and services shall be unhampered and unrestricted. The Secretary of Labor and
Employment may immediately assume jurisdiction over the dispute or certify the same for compulsory arbitration within 24 hours from knowledge of the
occurrence of the strike.

Illegal Lockout:
a. Lockout on grounds other than those prescribed by law
b. Lockout without complying with any of the legal requirements
c. Lockout before the lapse of the cooling-off period or the 7-day lockout ban
d. Lockout declared after the Secretary of Labor and Employment has assumed jurisdiction over the dispute or certified the same for compulsory
arbitration
e. Lockout declared without first having bargaining collectively
Sanction for Illegal Lockouts Backwages

National Interest Disputes
- Recommendation of the Undersecretary of Labor and Employment is not a condition for the Secretary of Labor and Employment to assume
jurisdiction over a labor dispute
- The Sec of Labor and Employment can assume jurisdiction over a labor dispute or certify the same to the NLRC even if there is no actual strike or
lockout
- The power of the Sec of Labor and Employment to assume jurisdiction over a labor dispute or to certify the same for compulsory arbitration does not
constitute undue delegation of legislative power. Neither does it constitute interference with the workers right to strike it merely regulates the right
to strike when in the exercise of such right, national interests will be affected.
- Extent of Authority:
o If the Sec of Labor and Employment assumes jurisdiction over a labor dispute, his authority encompasses only the issues in the dispute.
o He cannot rule on the legality of the strike because original and exclusive jurisdiction to decide the legality of strikes is vested in the Labor
Arbiter.
o Neither can the Sec of Labor and Employment restrain the employer from taking disciplinary action against the strikers
o To enjoin an employer from taking disciplinary action against erring strikers would constitute an unlawful deprivation of property and denial of
due process because it would prevent an employer from seeking redress for the huge property losses suffered as a result of the unions illegal
mass action.(p 399 read)

Industries Indispensable to the National Interest
- No definition given by law
- It rather gives the Sec of Labor and Employment or the President of the Philippines the unlimited discretion to determine what industries may be
considered as indispensable to the national interest
- Once declared by them, such declaration cannot be reviewed by the courts.
- Following industries have been held to be indispensable to the national interest:
a. Airline Company
b. Educational Institutions
c. Drug Company
d. Medical Institutions
e. Export-Oriented Enterprise
f. Tire Manufacturing Company
g. Mining Company
h. Brokerage Firm

Enforcement of Assumption/Certification orders
- Assumption or certification orders are immediately executor and are to be strictly complied with by the parties even during the pendency of a motion
for reconsideration or a petition questioning its validity.
- Once an assumption or certification order is issued, the strikers workers must, therefore cease and desist from any and all acts that tend to
undermine the authority of the Sec of Labor and Employment, regardless of their motives or validity of their claims
Effect of Defiance of Assumption/Certification orders
- An assumption or certification order automatically carries with it a return-to-work order even if the directive to return to work is not expressly stated in
the Order.
- If the strikers do not return to work, an illegal act is committed because of Art. 264(a)
- The moment a worker defies an assumption or certification order he is deemed to have abandoned his employment.
The liability for staging an illegal strike should be distinguished from the liability for defying an assumption or certification order. In an illegal strike, loss of
employment status is imposed only upon the union officers who knowingly participated in the strike and to union officers or members who knowingly
committed illegal acts during the strike. In the case of defiance of assumption or certification orders, loss of employment status is imposed upon ALL
STRIKERS, (whether union officers or plain union members) who defy the assumption or certification order, regardless of the legality of the strike.

Art. 264. Prohibited activities.
a) No labor organization or employer shall declare a strike or lockout without first having bargained collectively in accordance with Title VII of this Book
or without first having filed the notice required in the preceding Article or without the necessary strike or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister or after certification or submission of the
dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full
backwages. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the
commission of illegal acts during a strike may be declared to have lost his employment status: Provided, That mere participation of a worker in a
lawful strike shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the employer during
such lawful strike.
b) No person shall obstruct, impede, or interfere with, by force, violence, coercion, threats or intimidation, any peaceful picketing by employees during
any labor controversy or in the exercise of the right to self-organization or collective bargaining, or shall aid or abet such obstruction or interference.
c) No employer shall use or employ any strike-breaker, nor shall any person be employed as a strike-breaker.
d) No public official or employee, including officers and personnel of the New Armed Forces of the Philippines or the Integrated National Police, or
armed person, shall bring in, introduce or escort in any manner, any individual who seeks to replace strikers in entering or leaving the premises of a
strike area, or work in place of the strikers. The police force shall keep out of the picket lines unless actual violence or other criminal acts occur
therein: Provided, That nothing herein shall be interpreted to prevent any public officer from taking any measure necessary to maintain peace and
order, protect life and property, and/or enforce the law and legal order. (As amended by Executive Order No. 111, December 24, 1986)
e) No person engaged in picketing shall commit any act of violence, coercion or intimidation or obstruct the free ingress to or egress from the
employers premises for lawful purposes, or obstruct public thoroughfares. (As amended by Batas Pambansa Bilang 227, June 1, 1982)

Limitations on the Right to Strike or Lockout: A strike or lockout cannot be declared:
a. Without first having bargained collectively
b. Without first having filed the notice of strike/lockout
c. Without the necessary strike or lockout vote first having been obtained and reported to the DOLE
d. After the Secretary of Labor and Employment assumes of jurisdiction or certifies the dispute to compulsory or voluntary arbitration; or
e. During the pendency of cases involving the same grounds for the strike or lockout

Limitations on the Right to Picket
a. Committing any act of violence, coercion or intimidation
b. Obstructing the free ingress to and egress from the employers premises; and
c. Obstructing public thoroughfares
o Removal of Illegal Blockade Obstructions in public properties, such as streets, sidewalks, alleys, may be summarily removed by the local
governments, through their respective law enforcement authorities without consulting with the DOLE, because these obstruction are
considered as nuisances per se. They cannot be summarily demolished by law enforcement authorities
o Guidelines on Removal of Illegal Blockades at Factory Gates p. 409

Employment of Strike, Breakers Prohibited
o Strike-Breaker a person who obstructs, impedes, or interferes with by force, violence, coercion, threats or intimation any peaceful picketing by
employees during any labor controversy affecting wages, hours or conditions of work or in the exercise of the right to self-organization or collective
bargaining
o Employment of strike-breakers is prohibited under Art. 264(c)
Escorting of Replacements Art. 264(d)
o What is prohibited is the escorting of individuals in entering or leaving the strike area to replace the striking employees. (Ex. If the persons escorted
are non-striking employees, no violation is committed because non-striking employees have the right to enter the company premises and work and
they will work not as replacements but as non-striking employees.
o Likewise, Art. 264(d) is not violated if the escorting of replacements was done beyond the premises of the strike area. What the law prohibits is the
escorting of replacements within the strike area
o Strike Area refers to the establishment, warehouses, depots, plants, or offices, sites or premises used as runaway shops and the immediate
vicinity actually used by the picketing strikers in moving to and fro before all points of entrance to and exist from said establishment

Role of Police Personnel in Labor Disputes
o The PNP may be called upon to perform the limited role of enforcing the laws and legal orders of duly constituted authorities and maintaining peace
and order to protect life and property during strikes, lockouts and other labor disputes
o The peace keeping personnel should not be stationed in the picket or confrontation line, but in such place as their presence may deter the
commission of criminal acts from either side
o They should maintain themselves at a distance of 50 meters from the picket line, except, if the 50-meter radius includes a public thoroughfare, in
which case, they may station themselves in such public thoroughfare for the purpose of insuring the free flow of traffic.

Service of Lawful Orders or Writs is the primary concern of the representative of the DOLE, sheriff or representative of the government agency issuing
the order. The role of police personnel is only supportive. Only when specifically stated and requested in the order or writ should police personnel enforce
such orders or writs

Remedies:
o For violation of Art. 264(a), the remedy is to file with the Arbitration Branch of the NLRC a petition to declare the strike or lockout illegal
o For violation of Art. 264(b),(c),(d) and (e), the remedy is to file a petition for injunction with the NLRC
o In addition, criminal action may be filed for any violation of Art 264, the penalties of which are set forth in Art 272 of the Labor Code
Guidelines for the Conduct of INP/AFP Personnel During Strikes, Lockouts and Labor Disputes in General p. 412

Art. 265. Improved offer balloting. In an effort to settle a strike, the Department of Labor and Employment shall conduct a referendum by secret ballot on the
improved offer of the employer on or before the 30th day of the strike. When at least a majority of the union members vote to accept the improved offer the
striking workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the agreement.
In case of a lockout, the Department of Labor and Employment shall also conduct a referendum by secret balloting on the reduced offer of the union on or before
the 30th day of the lockout. When at least a majority of the board of directors or trustees or the partners holding the controlling interest in the case of a
partnership vote to accept the reduced offer, the workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the
agreement. (Incorporated by Section 28, Republic Act No. 6715, March 21, 1989)

Referendum on Improved Offer
o Improved offer balloting is a referendum conducted by the DOLE wherein the strikers vote by secret ballot on whether to accept the improved
offer of management
Referendum on Reduced Offer
o Reduced offer balloting is a referendum conducted by the DOLE wherein the board of directors or trustees or the partners holding the controlling
interest in the case of a partnership, vote by secret ballot on whether to accept the reduced offer of the strikers.

Art. 266. Requirement for arrest and detention. Except on grounds of national security and public peace or in case of commission of a crime, no union
members or union organizers may be arrested or detained for union activities without previous consultations with the Secretary of Labor.

Arrest or Detention of Union Officers/Members
o As a General Rule, union officers, members or organizers cannot be arrested or detained for union activities without previous consultation with the
Secretary of Labor and Employment
o Consultation, however, is not necessary if the arrest is made:
a. On grounds of national security and public peace; or
b. In case of commission of a crime
Filing of Criminal Cases
o Before filing a criminal case relating to or arising out of a labor dispute, clearance must first be obtained from the DOLE or the Office of the
President. An injunction order issued in a labor case is considered as compliance with the clearance requirements
o Ministry Circular no. 15 p. 418
o Ministry Circular No. 9 p. 420
o Department Circular no. 16 p 421

Chapter II
ASSISTANCE TO LABOR ORGANIZATIONS
Art. 267. Assistance by the Department of Labor. The Department of Labor, at the initiative of the Secretary of Labor, shall extend special assistance to the
organization, for purposes of collective bargaining, of the most underprivileged workers who, for reasons of occupation, organizational structure or insufficient
incomes, are not normally covered by major labor organizations or federations.

Art. 268. Assistance by the Institute of Labor and Manpower Studies. The Institute of Labor and Manpower Studies shall render technical and other forms of
assistance to labor organizations and employer organizations in the field of labor education, especially pertaining to collective bargaining, arbitration, labor
standards and the Labor Code of the Philippines in general.

Labor Education
o It is the duty of every LLO to implement a labor education program for its members on their rights and responsibilities as unionists and as employees
o It is mandatory for every labor organization to conduct seminars and similar activities on existing labor laws, collective agreements, company rules
and regulations and other relevant matters. The union seminars and similar activities may be conducted independently or in cooperation with the
DOLE or other labor educational institutions

Chapter III
FOREIGN ACTIVITIES
Art. 269. Prohibition against aliens; exceptions. All aliens, natural or juridical, as well as foreign organizations are strictly prohibited from engaging directly or
indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine labor unions and recognized international labor centers:
Provided, however, That aliens working in the country with valid permits issued by the Department of Labor and Employment, may exercise the right to self-
organization and join or assist labor organizations of their own choosing for purposes of collective bargaining: Provided, further, That said aliens are nationals of
a country which grants the same or similar rights to Filipino workers. (As amended by Section 29, Republic Act No. 6715, March 21, 1989)

Trade Union Activities of Aliens
o Aliens and foreign organizations are prohibited from engaging in all forms of trade union activities.
o However, alien employees with valid working permits issued by the DOLE may exercise the right to self-organization and join or assist labor
organizations, if they are nationals of a country which grants the same or similar rights to Filipino workers, as certified by the DGA
Trade Union Activities:
a. Organization, formation and administration of labor organizations;
b. Negotiation and administration of CBA;
c. All forms of concerted union action;
d. Organizing, managing or assisting union conventions, meetings, rallies, referenda, teach-ins, seminars, conferences and institutes;
e. Any form of participation or involvement in representation proceedings, representation elections, consent elections, union elections; and
f. Other activities or actions analogous to the foregoing

Art. 270. Regulation of foreign assistance.
a) No foreign individual, organization or entity may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly, to
any labor organization, group of workers or any auxiliary thereof, such as cooperatives, credit unions and institutions engaged in research, education
or communication, in relation to trade union activities, without prior permission by the Secretary of Labor.
"Trade union activities" shall mean:
1. organization, formation and administration of labor organization;
2. negotiation and administration of collective bargaining agreements;
3. all forms of concerted union action;
4. organizing, managing, or assisting union conventions, meetings, rallies, referenda, teach-ins, seminars, conferences and institutes;
5. any form of participation or involvement in representation proceedings, representation elections, consent elections, union elections; and
6. other activities or actions analogous to the foregoing.
b) This prohibition shall equally apply to foreign donations, grants or other forms of assistance, in cash or in kind, given directly or indirectly to any
employer or employers organization to support any activity or activities affecting trade unions.
c) The Secretary of Labor shall promulgate rules and regulations to regulate and control the giving and receiving of such donations, grants, or other
forms of assistance, including the mandatory reporting of the amounts of the donations or grants, the specific recipients thereof, the projects or
activities proposed to be supported, and their duration.

Prior permission from the Secretary of Labor is required before a foreign individual, organization or entity can give donations, grants, or other forms of
assistance, in cash or in kind to any labor organization or any auxiliary thereof
LLO should make a disclosure of donations, donors and their purposes in their annual financial reports.

Art. 271. Applicability to farm tenants and rural workers. The provisions of this Title pertaining to foreign organizations and activities shall be deemed
applicable likewise to all organizations of farm tenants, rural workers, and the like: Provided, That in appropriate cases, the Secretary of Agrarian Reform shall
exercise the powers and responsibilities vested by this Title in the Secretary of Labor.

The regulatory functions with respect to foreign assistance for farm tenants and rural workers shall be exercised by the Secretary of Agrarian Reform

Chapter IV
PENALTIES FOR VIOLATION
Art. 272. Penalties.
a) Any person violating any of the provisions of Article 264 of this Code shall be punished by a fine of not less than one thousand pesos (P1,000.00)
nor more than ten thousand pesos (P10,000.00) and/or imprisonment for not less than three months nor more than three (3) years, or both such fine
and imprisonment, at the discretion of the court. Prosecution under this provision shall preclude prosecution for the same act under the Revised
Penal Code, and vice versa.
b) Upon the recommendation of the Minister of Labor and Employment and the Minister of National Defense, foreigners who violate the provisions of
this Title shall be subject to immediate and summary deportation by the Commission on Immigration and Deportation and shall be permanently
barred from re-entering the country without the special permission of the President of the Philippines. (As amended by Section 16, Batas Pambansa
Bilang 130 and Section 7, Batas Pambansa Bilang 227)

Art. 272 of the LC penalizes the following violations of Art. 264 of the LC:
a. Declaring a strike or lockout without first having bargained collectively;
b. Declaring a strike or lockout without complying with the legal requirements;
c. Declaring a strike or lockout after an assumption or certification order has been issued or after the dispute has been submitted to compulsory or
voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout;
d. Obstructing or interfering with by force, violence, coercion, threats or intimidation any peaceful picketing during any labor controversy or aiding or
abetting such obstruction or interference;
e. Using or employing strike-breakers;
f. Bringing in, introducing or escorting on the part of an armed person, public officer, personnel of the AFP or PNP, any person who seeks to replace
strikers, in entering or leaving the premises of a strike area;
g. Committing acts of violence, coercion or intimidation while engaged in picketing;
h. Obstructing the free ingress to and egress from the employers premises while engaged in picketing; and
i. Obstructing public throroughfares.



TITLE IX
SPECIAL PROVISIONS

Art. 273. Study of labor-management relations. The Secretary of Labor shall have the power and it shall be his duty to inquire into:
1. the existing relations between employers and employees in the Philippines;
2. the growth of associations of employees and the effect of such associations upon employer-employee relations;
3. the extent and results of the methods of collective bargaining in the determination of terms and conditions of employment;
4. the methods which have been tried by employers and associations of employees for maintaining mutually satisfactory relations;
5. desirable industrial practices which have been developed through collective bargaining and other voluntary arrangements;
6. the possible ways of increasing the usefulness and efficiency of collective bargaining for settling differences;
7. the possibilities for the adoption of practical and effective methods of labor-management cooperation;
8. any other aspects of employer-employee relations concerning the promotion of harmony and understanding between the parties; and
9. the relevance of labor laws and labor relations to national development.
The Secretary of Labor shall also inquire into the causes of industrial unrest and take all the necessary steps within his power as may be
prescribed by law to alleviate the same, and shall from time to time recommend the enactment of such remedial legislation as in his
judgment may be desirable for the maintenance and promotion of industrial peace.

Art. 274. Visitorial power. The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to inquire into the
financial activities of legitimate labor organizations upon the filing of a complaint under oath and duly supported by the written consent of at least
twenty percent (20%) of the total membership of the labor organization concerned and to examine their books of accounts and other records to
determine compliance or non-compliance with the law and to prosecute any violations of the law and the union constitution and by-laws: Provided,
That such inquiry or examination shall not be conducted during the sixty (60)-day freedom period nor within the thirty (30) days immediately
preceding the date of election of union officials.(As amended by Section 31, Republic Act No. 6715, March 21, 1989)

Requisites for the Exercise of the Visitorial Power Under Art. 274 only when there is a VERIFIED COMPLAINT duly supported by the WRITTEN
CONSENT of at least TWENTY (20%) per cent of the total membership of the labor organization concerned.
Limitation:
1. During the 60 day freedom period
2. Within 30 days immediately preceding the date of election of union officers.
Venue:
o Independent labor unions, chartered locals and workers association RO of the DOLE that issued its certificate of registration of creation of
chartered local
o Federations or national union and trade union centers BLR

Art. 275. Tripartism and tripartite conferences.
1. Tripartism in labor relations is hereby declared a State policy. Towards this end, workers and employers shall, as far as practicable, be
represented in decision and policy-making bodies of the government.
2. The Secretary of Labor and Employment or his duly authorized representatives may, from time to time, call a national, regional, or
industrial tripartite conference of representatives of government, workers and employers for the consideration and adoption of voluntary
codes of principles designed to promote industrial peace based on social justice or to align labor movement relations with established
priorities in economic and social development. In calling such conference, the Secretary of Labor and Employment may consult with
accredited representatives of workers and employers.

Art. 276. Government employees. The terms and conditions of employment of all government employees, including employees of government-owned
and controlled corporations, shall be governed by the Civil Service Law, rules and regulations. Their salaries shall be standardized by the National
Assembly as provided for in the New Constitution. However, there shall be no reduction of existing wages, benefits and other terms and conditions of
employment being enjoyed by them at the time of the adoption of this Code.

Government employees and employees of GOCCs with original charter, can neither bargain collectively nor declare a strike to seek improvement of
the terms and conditions of their employment
If government employees would want to seek improvement of the terms and conditions of their employment, the proper recourse would be either
petition the Congress to enact a law or negotiate with the appropriate government agencies regarding matters that are not fixed by law
Governing Law Civil Service Law

Art. 277. Miscellaneous provisions.
1. 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 undertakings.
2. Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and
authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker
whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the
latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with
company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken
by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint
with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or
authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the
termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor
and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a
mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)
3. Any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be considered as an employee
for purposes of membership in any labor union. (As amended by Section 33, Republic Act No. 6715)
4. No docket fee shall be assessed in labor standards disputes. In all other disputes, docket fees may be assessed against the filing party,
provided that in bargaining deadlock, such fees shall be shared equally by the negotiating parties.
5. The Minister of Labor and Employment and the Minister of the Budget shall cause to be created or reclassified in accordance with law
such positions as may be necessary to carry out the objectives of this Code and cause the upgrading of the salaries of the personnel
involved in the Labor Relations System of the Ministry. Funds needed for this purpose shall be provided out of the Special Activities Fund
appropriated by Batas Pambansa Blg. 80 and from annual appropriations thereafter.
6. A special Voluntary Arbitration Fund is hereby established in the Board to subsidize the cost of voluntary arbitration in cases involving
the interpretation and implementation of the Collective Bargaining Agreement, including the Arbitrators fees, and for such other related
purposes to promote and develop voluntary arbitration. The Board shall administer the Special Voluntary Arbitration Fund in accordance
with the guidelines it may adopt upon the recommendation of the Council, which guidelines shall be subject to the approval of the
Secretary of Labor and Employment. Continuing funds needed for this purpose in the initial yearly amount of fifteen million pesos
(P15,000,000.00) shall be provided in the 1989 annual general appropriations acts.
The amount of subsidy in appropriate cases shall be determined by the Board in accordance with established guidelines issued by it
upon the recommendation of the Council.
The Fund shall also be utilized for the operation of the Council, the training and education of Voluntary Arbitrators, and the Voluntary
Arbitration Program.
7. The Ministry shall help promote and gradually develop, with the agreement of labor organizations and employers, labor-management
cooperation programs at appropriate levels of the enterprise based on the shared responsibility and mutual respect in order to ensure
industrial peace and improvement in productivity, working conditions and the quality of working life.
8. In establishments where no legitimate labor organization exists, labor-management committees may be formed voluntarily by workers and
employers for the purpose of promoting industrial peace. The Department of Labor and Employment shall endeavor to enlighten and
educate the workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of
this Code.
9. To ensure speedy labor justice, the periods provided in this Code within which decisions or resolutions of labor relations cases or
matters should be rendered shall be mandatory. For this purpose, a case or matter shall be deemed submitted for decision or resolution
upon the filing of the last pleading or memorandum required by the rules of the Commission or by the Commission itself, or the Labor
Arbiter, or the Director of the Bureau of Labor Relations or Med-Arbiter, or the Regional Director.
Upon expiration of the corresponding period, a certification stating why a decision or resolution has not been rendered within the said
period shall be issued forthwith by the Chairman of the Commission, the Executive Labor Arbiter, or the Director of the Bureau of Labor
Relations or Med-Arbiter, or the Regional Director, as the case may be, and a copy thereof served upon the parties.
Despite the expiration of the applicable mandatory period, the aforesaid officials shall, without prejudice to any liability which may have
been incurred as a consequence thereof, see to it that the case or matter shall be decided or resolved without any further delay.

Fees which a labor union may collect from its members:
a) Reasonable membership fees
b) Union dues, assessments and fines
c) Contributions for labor education and research
d) Funds for mutual aid, death, hospitalization benefits
e) Welfare funds
f) Strike fund
g) Fund for credit and cooperative undertakings
Procedural requirement employees should be informed of the charges against him and be given the opportunity to be heard before he is deprived of his
employment. This applies to all types of employees.
Concept of Due Process opportunity to be heard
o Due process seeks to safeguard is not the lack of previous notice but the denial of opportunity to be heard (to explain ones side)
o There is no denial of opportunity to be heard:
1. If the employee was not able to fully air his position through his own fault, inaction or negligence
2. If the employee was notified and repeatedly invited for further investigation but he ignored them
3. If the employee chose not to give his side of the case
4. If the employee refused to receive the notice to explain
Standard due process:
1. A written notice served on the employee specifying his wrongful acts or omissions and giving him reasonable opportunity within which to explain his
side. This notice is not a mere technicality but a requirement of due process
2. A hearing or conference during which the employee is given the opportunity to respond to the charge, present his evidence, or rebut the evidence
presented against him with the assistance of counsel, if he so desires
3. A written notice to the employee of the disciplinary action imposed against him, indicating the factual basis for the imposition of the disciplinary
penalty
The law mandates an employer to furnish the employee a WRITTEN NOTICE SPECIFYING HIS WRONGFUL ACTS OR OMISSION.
The following instances are when formal investigation and hearing is not necessary:
a) When the ground for termination does not relate to a blameworthy act or omission on the part of the employee (Economic reasons)
b) When the employee admits his responsibility for the misconduct
The written notice of disciplinary action stating the reasons therefor, should be issued and served to the employees last known address.
Preventive suspension 30 days, if his continued employment poses a serious and imminent threat to the life and property of the employer or co-
employees. Preventive suspension is not a penalty but a mere preliminary step in an administrative investigation.
Effect of Dismissal without due process. (with just or valid cause)
o The current doctrine BELATED DUE PROCESS RULE
o Agabon vs. NLRC the lack of statutory due process does not nullify the dismissal or render it illegal, much less ineffectual
Degree of Proof Substantial evidence
Effect of acquittal or conviction in a criminal case not necessary
Effect of conviction upon a final judgment declaring the dismissal to be illegal render the dismissal legal because the conviction of the employees in the
criminal case in effect affirmed the existence of a valid ground for his dismissal, thereby removing the justification for the administrative decision declaring
the dismissal unjust and illegal
Power of the Sec. of Labor and employment to suspend the effect of the termination of employment: (requisites)
1. There must be a labor dispute involving termination of employment
2. The dispute has been brought before the appropriate official of the DOLE
3. There must be a prima facie finding on the part of the appropriate official of the DOLE before whom such dispute is pending, that the termination of
employment may cause a serious labor dispute or is in the implementation of a mass lay-off

BOOK SIX: POST EMPLOYMENT
Title I : TERMINATION OF EMPLOYMENT

Art. 278. Coverage. The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not.

Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or
when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and
other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his
compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

Security of tenure is an act of social justice
Security of tenure is principally intended to protect employees who are holding regular employment. However, this does not mean that non-regular
employees are not entitled to security of tenure. They are also entitled, however, in a qualified manner.
Probationary employees are also entitled to security of tenure. They cannot be dismissed except for just or authorized cause.
Even managerial employees
As well as casual employees who have rendered at least 1 year of service
Extent of the right not only against arbitrary or unjust dismissal but also against other personnel actions such as transfer and demotion
Managerial Prerogatives inherent rights in the management of business enterprises:
1. To choose whom to hire
2. To promote employees ( Promotion advancement from one position to another with an increase in duties and responsibilities and usually
accompanied by an increase in salary) (employee right to refuse promotion)
3. To transfer employees ( Transfer movement of one employee from one position to another position of equivalent rank, level or salary, without
break in service)(if the employee refused may be validly dismiss on the ground of insubordination or wilful disobedience)(the right to transfer
cannot be used as a sanction for union activities nor can it be used as a pretext to get rid of an unwanted employee nor be used as a subterfuge for
demotion)
4. To reduce personnel for economic reasons (installation of labour-saving devices, redundancy and retrenchment)
5. To reduce working hours/days
6. To change working hours as long as it is done in GF
7. To abolish a department or section
8. To reorganize and abolish positions
9. To spin-off a portion of its business
10. To close down its business
11. To transfer business ownership
o Unless expressly assumed, labor contracts are not enforceable against a transferee/buyer of a business enterprise, labor contracts being in
personam
o The buyer/transferee is under no legal duty to absorb the employees of the seller
o However, if the transfer was done in BF, the liability should be shared by both transferor and transferee.
12. To discipline employees
o The disciplinary prerogative of the employer cannot be nullified by arguing that the employer is the accuser, prosecutor and judge at the same
time.
Disciplinary penalties: warning, reprimand, suspension, demotion or dismissal from service.
1. Warning caution for the erring employee to refrain from committing the same offense in the future under pain of a more severe penalty. (usually
imposed for first offenders who commit a minor offense)
2. Reprimand a bit more severe than warning in the sense that it is accompanied by censure, rebuke, or sharp scolding
3. Suspension temporary separation of an employee from services. This is usually imposed for less serious offenses or for minor offenses that
lighter sanctions failed to rectify.
4. Demotion transfer of an employee to a lower rank or position with corresponding reduction in salary
5. Dismissal highest penalty. Severs employment ties and could well be the economic death sentence of an employee. An employee cannot be
dismissed except for the most serious causes.
Determination of Appropriate Penalty: surrounding circumstances of each case:
1. Nature of the offense
- Serious offenses necessarily deserve the supreme penalty of dismissal
2. Position of the employee
- Managerial employees and other employees occupying positions of trust and confidence are subject to stricter norm of discipline
3. Degree of damage
4. Past record of the employee
- Past offenses of similar character are relevant for purposes of determining the appropriate penalty for the present offense.
5. Length of service of employees


Illegal Dismissal termination of employment that is expressly prohibited by law.
a. To dismiss an employee who has filed a complaint or instituted a proceeding under Title II of the Labor Code (on wages) or has testified or is about
to testify in such proceeding
b. To dismiss a female employee for the purpose of preventing her from enjoying the benefits granted by the Labor Code
c. To dismiss a female employee on account of her pregnancy or while on leave due to her pregnancy
d. To dismiss a female employee upon returning to her work for fear that she may again be pregnant.
e. To dismiss an employee for having given or being about to give testimony under the Labor Code
f. To dismiss an employee who was called upon by the State to fulfil a military or civic duty during the fulfilment of such duty. (Art. 286)
Unjust dismissal a dismissal is unjust if the service of an employee are terminated without the just cause specified in Art. 282 of the Labor Code. In a
broad sense, illegal dismissal includes unjust dismissal.
Illustrative cases of Illegal/Unjust Dismissal:
a. Dismissal of minor or unimportant infractions
b. Dismissal for filing of a complaint for violation of the Minimum Wage Law
c. Dismissal for an offense instigated by the employer
d. Dismissal due to the union activities of the employees brother
e. Dismissal due to union activities
f. Dismissal for soliciting signatures to form a union
g. Dismissal for refusing to join the union favoured by the employer
Remedy for Illegal or Unjust Dismissal to file a complaint for illegal dismissal with the LABOR ARBITER. A petition for injunction is not the proper
remedy because it is not itself a cause of action but merely a provisional remedy.
Reliefs for Unjust or Illegal Dismissal:
o Migrant workers:
Full reimbursement of his placement fee with 12% per annum; or
Salaries for the unexpired portion of his employment contract, or 3 months salary for every year of the unexpired term, whichever is less.
The choice of which amount to award an illegally dismissed migrant or overseas worker comes into play only when the employment
contract has a term of at least 1 year or more.
o Locally Employed workers:
Reinstatement without loss of seniority rights and other privileges
Backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was
withheld from him up to the time of his actual reinstatement
Moral and exemplary damages, if the dismissal was tainted with malice or bad faith
Separation pay, under certain conditions
Reinstatement a relief separate and distinct from backwages. Backwages may be awarded without ordering reinstatement, while in other cases,
reinstatement may be ordered without awarding backwages. Simply stated, reinstatement restores the lost position while backwages restores the lost
income.
Reinstatement refers to restoration to a state from which one has been removed or separated. It is the return to the position from which he was
removed.
o An employer cannot be ordered to reinstate an employee to a position which he never occupied.
o An employee who is ordered reinstated may be required to undergo physical or medical examination in order to determine his fitness to work, but
such physical or medical examination should not be used as a precondition for reinstatement.
o The phrase without loss of seniority rights means that upon reinstatement, the employee is to be treated in matters involving rank, position, and
continuity of employment as though he has not been absent from work.
o Alternative relief if reinstatement is no longer possible
If the position no longer exist, substantially equivalent position
Same principle if the position is already occupied.
If a substantially equivalent position is not available when the employer has closed down its business etc, the relief available to the employee
is separation pay equivalent to at least 1 month salary for every year of service plus backwages, if warranted.
When the reinstatement of the illegally dismissed employee is rendered unfeasible because he has reached the retirement age of 60, the relief
of separation pay is not available. The employee concerned would only be entitled to backwages up to the time when he reached the
retirement age.
o Propriety of reinstatement the relief of reinstatement is available only to employees who are unjustly or illegally dismissed.
o Effect of Employment elsewhere an unjustly dismissed employee cannot be denied the right to reinstatement simply because he has obtained
employment elsewhere.
o Circumstances that preclude reinstatement
a) Transfer of business ownership
b) Business reverses
c) Abolition of position
d) Closure of Business
e) Incapacity of the Employee
f) Attainment of Retirement age
g) Conviction in criminal case
h) Laches
i) Prescription 4 years
j) When the complaint merely prays for separation pay
k) Strained relations
o Doctrine of Strained Relations
GR: the matter of strained relations should be raised and proved before the Labor Arbiter unless the strained relations arose after the
filing of the case. Strained relation may also be raised during the execution proceedings as a supervening event which would render
execution unjust and inequitable.
E: It should not be applied indiscriminately since every labor dispute almost invariably results in strained relations.
o Remedy for refusal to comply with a reinstatement order motion for issuance of writ of execution. If still does not comply with the issuance of a
writ of execution contempt proceedings.
Backwages a form of relief that restores the income that was lost by reason of unlawful dismissal. It is not the principal cause of action in an illegal
dismissal case. It is merely one of the reliefs extended.
o Backwages vs. Unpaid wages
Backwages refers to the compensation which an employee would have earned had he not been unjustly dismissed
Unpaid wages compensation for services already rendered but withheld by the employer.
o Amount of backwages that may be awarded
Not all the time FULL BACKWAGES. The LA and the NLRC have the discretion to determine how much backwages should be awarded taking
into account the facts and circumstances of each case
A dismissal could be illegal or unjust:
o On grounds specified prohibited by law
o Without any cause whatsoever
o Without just cause
o Full backwages
If the employee was dismissed on grounds specifically prohibited by law (Art. 118, 137, 248(f), and 286).
If the employee was dismissed without any cause whatsoever
o Limited backwages:
If dismissal is without just cause, as when the penalty of dismissal was found to be too harsh or excessive, full backwages shall not be
awarded.
Limited backwages may also be awarded if there is delay in filing the complaint for illegal dismissal.
o No Backwages:
Good faith on the part of the employer
Cessation of employment brought about neither by dismissal nor abandonment
Cessation of employment due to the employees refusal to work
o Determination of Amount due the employee:
Deduction of earning elsewhere Doctrine earnings obtained by the employee elsewhere should be deducted from the backwages
awarded to the employee pursuant to the principle that employees should not be permitted to enrich themselves at the expense of their
employer and also because of the laws abhorrence for double compensation
Mercury Drug Doctrine Backwages due an illegally dismissed employee is fixed at a certain amount (usually 3 years, where the case is not
terminated sooner) without deduction or qualification.
Bustamente Doctrine backwages to be awarded to an illegally dismissed employee, should not, as a general rule, be diminished or
reduced by the earnings derived by him elsewhere during the period of his illegally dismissed. (currently followed)
o Computation of backwages of irregular workers determined by what these workers would have normally earned had they not been dismissed,
using as basis for that purpose that wages actually earned by other irregular workers doing the same king of work who have not been dismissed.
o Circumstances that forestall the running of backwages:
a. Death
b. Physical or mental incapacity
c. Attainment of retirement age
d. Permanent closure of establishment
e. Temporary closure of establishment
f. Confinement in prison
g. Re-employment of the dismissed employee
o Other Benefits: entitlement to his full backwages, inclusive of allowances and to his other benefits or their monetary equivalent. The phrase other
benefits would include the following:
a. Transportation and emergency allowances
b. Vacation leave or service incentive leave
c. 13
th
month pay
The phrase other benefits does not include the following:
a. Facilities that are to be used only during official tour of duty and not for private or personal purpose such as uniforms
b. Benefits that are enjoyable only if approved by the employer, such as free trip passes
Separation pay is a sort of an aid given to an employee upon his separation from services so that he may have something on which to fall back when he
loses his means of livelihood. It is an amount designed to provide him with the wherewithal during the period that he is looking for employment.
o Separation pay and backwages are reliefs that are distict from each other, hence, both can be awarded simultaneously. BACKWAGES is specifically
designed to restore income that was lost by reason of unjust dismissal. On the other hand, SEPARATION PAY is intended to provide the employee
money during the period in which he will be looking for another employment.
o PURPOSE to give the employee a leeway to tide him and his family over in the meantime that he goes job-hunting.
o When separation pay is proper:
a. Redundancy
b. Installation of labor-saving devices
c. Retrechment
d. Closure of establishment not due to serious business losses
e. Disesase
f. Lay-off/suspension of operations for more than 6 months.
o Exceptional circumstances which an employee found to be unjustly dismissed is entitled to separation pay:
a. If the reinstatement of the employee has been rendered impossible by supervening events (closure of establishment, sale or transfer of
business ownership, abolition of position, reduction of personnel or physical incapacity of the employee)
b. If the reinstatement of the employee is no longer feasible (relationship is severely strained or when there is no substantially equivalent
position available

o Employee was dismissed for a just and valid cause:
GR: no entitlement to separation pay
E: separation pay may be awarded as a measure of social justice even if the dismissal is found to be valid and justified, but only in those instances
where the employee was validly dismissed for a cause other than serious misconduct or offenses reflecting on his moral character
- An employee who resigns from his employment is not entitled to separation pay, except when it is stipulated in the employment contract, CBA or
established employer practice or policy
- An employee who retires from his employment is not entitled to separation pay he is entitled only to retirement pay
- RETIREMENT is the result of a bilateral act of the parties, a voluntary agreement between the employer and the employees whereby the latter
after reaching a certain age agrees and/or consents to sever his employment with the former.
- DISMISSAL refers to the unilateral act of the employer in terminating the services of an employee
Damages must be proved. Reliefs prescribed not by the labor code but by the civil code.
Relief when there is neither dismissal nor abandonment only reinstatement.
Liability of Corporate Officers
GR: Corporate officers cannot be held personally or solidarily liable with the corporation for backwages, damages or other money claims of employees,
even if they were impleaded in the complaint
E:
a. If the corporate officer acted in bad faith
b. If the corporation is no longer existing and unable to satisfy the judgment in favour of the employee, in which case, the officers should be held liable
for acting on behalf of the corporation.
- Usually, solidary liability is imposed upon the highest and most ranking officer of the corporation
- Solidary liability does not extend to the Vice President, unless the Vice President happens to be the highest ranking officer, as when the
President of the Corporation is the complainant himself.

Art. 280. Regular and casual employment. The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement
of the parties, an 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 business or trade 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 seasonal in nature and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least
one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is
employed and his employment shall continue while such activity exists.

The law generally considers an employment as REGULAR when the activities performed by the employee are USUALLY NECESSARY OR DESIRABLE
IN THE USUAL BUSINESS OR TRADE OF THE EMPLOYER, contrary agreements notwithstanding.
Art. 280 not a test of Er-Ee relationship
4-fold test to establish the existence of Er-Ee relationship:
a. Selection and engagement of the employee
b. Payment of wages
c. Power of dismissal
d. Power to control the employees conduct
Classification of Employment
a. Regular or permanent
b. Non-regular or temporary
c. Casual
Regular or permanent employment where the employee has been engaged to perform activities that are usually necessary or desirable in the usual
business or trade of the employer.
o As to WON an employment is regular should be determined neither by the employment contract nor by the nomenclature given to it by the employer,
but by the nature of the job.
o The primary standard in determining whether an employment is regular or not, is the reasonable connection between the particular activity performed
by the employee in relation to the usual business or trade of the employer. (USUALLY NECESSARY OR DESIRABLE to the main business)
Non-regular or temporary employment
a. Project employment
b. Seasonal employment
c. Fixed-term employment
o Though the activities performed by the employee are usually necessary or desirable in the usual business or trade of the employer, but the law does
not consider them a regular employment because the engagement of the employee is only for a limited period
o Project employment a job that is confined to a specific project or undertaking, the completion or termination of which has been determined at the time of
the engagement of the employee, regardless of the number of years that it would take to finish the undertaking. (may be more than a year)
The specific project or undertaking under Art 280 of the Labor Code contemplates:
a. An activity which is not commonly or habitually performed; or
b. A type of work which is done on a daily basis but only for a specific duration of time until completion
The term project could refer to one or the other of at least 2 distinguishing types of activities:
1. A project could refer to a particular job or undertaking that is WITHIN the regular or usual business of the employer, but which is distinct
and separate and identifiable as such, from the other undertakings of the company. (i.e. particular construction job)
2. The project could also refer to a particular job or undertaking that is NOT WITHIN the regular business of the employer.
Length of service is not controlling test of project employment. The test of project employment is WON the engagement of the employee 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.
In project employment, the duration of employment is co-terminus with the work to which the employee was assigned.
o Seasonal Employment is a job that is limited to the duration of a particular season.
The employment of seasonal employees is co-terminus with the duration of the season
However, if the same employees are repeatedly engaged every season, they become regular employees in which case, they cannot be
terminated without just cause.
o Fixed-term employment
As a general proposition, temporary employment is not limited to those by nature seasonal or for specific projects with pre-determined dates of
completion.
It also includes those to which the parties by free choice have assigned a specific date of termination
If it is for a fixed period, the determining factor is not the activity that the employee is called upon to perform but the day certain agreed upon
by the parties.
A DAY CERTAIN means that which must necessarily come, although it may not be known when
That the duties of an employee entail activities which are usually necessary or desirable in the usual business or trade of the employer the
conclusion does not necessarily follow that the employee and employer should be forbidden to stipulate any period of time for the performance
of these activities.
Employment contracts for a fixed period cannot be said to be in circumvention of security of tenure:
a. If the 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 without any other circumstances vitiating consent; or
b. If it satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no moral dominance
whatever being exercised by the former on the latter.
Casual Employment a job wherein the activities performed by the employees are not usually necessary or desirable in the usual business or trade of
the employer
o Casual means occasional, coming without regularity.
o A casual employee who has rendered at least one (1) year of service, whether such service is continuous or broken, is considered a regular
employee with respect to the activity in which he is employed.
o The regular status attaches to the casual to the casual employee on the day immediately after the end of the first year of service
o Art. 106 applies to employees hired through a contractor, while Art. 280 applies to employees directly hired by an employer
DO 19 Guidelines Governing the employment of workers in the construction industry p. 529

Art. 281. Probationary employment. Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis
may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the
employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a
regular employee.

Probationary employment is a situation where the employee upon his engagement is made to undergo a trial period during which the employer
determines his fitness to qualify for regular employment, based on reasonable standards made known to him at the time of engagement.
The employment contract or appointment paper should expressly and specifically state that the engagement of the employee is on probationary basis,
otherwise, the employment cannot be considered as probationary.
The purpose of probationary employment is to allow the employer to test the working habits and other personal traits of the employee with respect to his
fitness for regularization in the company
It is the prerogative of an employer to place new employees on probation
Duration of Probationary Employment of Ordinary Employees:
GR: The probationary period of employment of ordinary employees is limited to 6 months.
E:
1. Where the parties to an employment contract or collective bargaining agreement agree on a longer period;
2. When a longer probationary period is established by company policy; or
3. When a longer period is required by the nature of work.
Where the work for which the employee has been engaged is LEARNABLE or APPRENTICEABLE in accordance with the standards prescribed by the
DOLE, the period of probationary employment shall be limited to the authorized learnership or apprenticeship period. This means that upon graduation or
upon completion of the learning period, an apprentice or learner may not be put under probationary employment in the same company in which they are
trained. In another company, however, they may be placed on probationary status for 6 months.
Period of apprenticeship shall not exceed 6 months. Learnership period shall not exceed 3 months
Duration of Probationary Employment of teachers
1. For elementary and secondary level 3 consecutive school years of satisfactory service;
2. For tertiary and graduate level 6 consecutive semesters of satisfactory service;
3. For tertiary level on trimester basis 9 consecutive trimesters of satisfactory service
- With regard to teaching or academic personnel, only those employed on full-time basis can acquire regular or permanent status. Part-time teaching
are not eligible for regular or permanent employment even if they have satisfactorily completed the required number of years, semesters or
trimesters of probationary employment
Extension of Probationary Employment should be done on or before the expiration of the prescribed period otherwise the employee will automatically
become a regular employee by operation of law.
Termination of Probationary Employment:
a. Any of the causes enumerated in Art. 282, 283, and 284 of the Labor Code; or
b. Failure to qualify as a regular employee in accordance with reasonable standards made known by the employer at the time of his engagement.
- It is not necessary that the entire probationary period be exhausted before the employment could be terminated. Termination of probationary
employment may be done even before the expiration of the probationary period.
Limitations on the Right to terminate a Probationary Employment:
a. It must be exercised in accordance with the specific requirements of the contract
b. The dissatisfaction of the employer must be real and in good faith, not feigned so as to circumvent the contract or the law; and
c. There must be no unlawful discrimination in the dismissal
Policy Instruction no. 11 : Probationary Employment p. 545

Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his
work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
4. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly
authorized representatives; and
5. Other causes analogous to the foregoing.

Serious Misconduct
o Misconduct improper or wrong conduct. It is the transgression of some established and definite rule of action, a forbidden act, a dereliction of
duty, wilful in character, and implies a wrongful intent and not a mere error of judgment.
o To constitute a just cause for dismissal, the misconduct must be:
a. Serious; and
b. Related to or in connection with the employees work
o If the misconduct is not serious, it will merely warrant a penalty lesser than dismissal.
o Examples of Serious Misconduct:
a. Assaulting an agent of a person in authority committed
by a security guard
b. Assaulting a co-employee
c. Drunken and disorderly and pugnacious behaviour
d. Fighting within company premises
e. Quarreling
f. Disrespect to company officials
g. Challenging a superior to a fight
h. Destroying employers property and assaulting the
House Officer
i. Uttering obscene, insulting or offensive words against a
superior
j. Making perjurious statement to favour a fellow
employee
k. Making false accusation against co-employees
l. Making unfounded accusation against the employer
m. Falsification of time cards
n. Making false reports
o. Fraudulent weighing of cargo.
p. Taking out customers property
q. Immorality on the part of a teacher
r. Instigating labor unrest
Willful Disobedience intentional defiance. Failure to yield obedience to all reasonable rules, orders and instructions of his employer
o Requisites:
a. The disobedience must be wilful or intentional
b. The order must be reasonable and lawful
c. The order must be known to the employee; and
d. The order must pertain to or must be in connection with the duties which the employer had been engaged to discharge.
o Illustrative cases of wilful disobedience:
a. Refusal to obey a transfer order
b. Refusal to comply with an order requiring that food requirements should be bought from a single source
c. Repeated disregard by a bank employee of an office order against temporary overdrafts and drawings against uncollected deposits
Gross and Habitual Neglect of Duty
o Damage to employer is not essential
o Must be both gross and habitual
o Gross means glaringly noticeable usually because of inexcusable badness or objectionableness
o Habitual connotes more than just a single or isolated act
o The reason for authorizing the termination of an employee on the ground of gross and habitual neglect of duty is because of the reciprocal
obligations entailed in an Er-Ee relationship.
o Neglect not the same as negligence
Neglect indicates as a purely objective fact that a person has not done that which it was his duty to do it does not indicate the reason for
this failure
Negligence it indicates a particular reason why the man has failed to do his duty, namely because he has not kept the performance of the
duty in his mind as he ought to have done
A man can neglect his duty either intentionally or negligently
o Illustrative Cases:
a. Prolonged absences
b. Delivering newly approved credit cards on 5 occasions to a person hardly known to the employee
c. Repeated and numerous infractions in the handling of monies
d. Repeated anomalous transactions
Fraud knowingly misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment
o Requisites:
a. Committed against the employer; and
b. In connection with the employees work
Willful Breach of Trust a breach is wilful if it is done intentionally, knowingly and purposely, without justifiable excuse, as distinguished from an act done
carelessly, thoughtlessly, heedlessly or inadvertently.
o Requisites:
a. Willful; and
b. Related to the performance of the employees functions
o The basic premise for the dismissal on the ground of wilful breach of trust is that the employee concerned holds a position of trust and confidence
and it is the breach of this trust that results in the employers loss of confidence in the employee.
o For dismissal on the ground of loss of confidence to be warranted, there should be some basis therefor
o Guidelines for the application of the doctrine of loss of confidence:
a. Loss of confidence should not be simulated
b. It should not be used as a subterfuge for causes which are improper, illegal or unjustified
c. It may not be arbitrarily asserted in the face of overwhelming evidence to the contrary; and
d. It must be genuine, not a mere afterthought to justify earlier action taken in bad faith
o Positions of Trust and Confidence
a. Bank teller
b. Cashier
c. Credit and Collection Supervisor
d. District Sales Supervisor
e. Salesman
f. Vice President for Marketing
g. General Manager
h. Warehouseman
i. Miner
j. Teachers
o Illustrative Cases:
a. Engaging in business competitive with that of the employer
b. Rendering services to a business rival
c. Using a chit already paid by one customer as a means to pocket the payment of another customer
d. Using double or fictitious requisition slips as a means to withdraw company materials
e. Failure to return service firearm
f. Failure to return cash bond for an unreasonable length of time
g. Formenting distrust and discontent in the company
h. Pilferage
i. Theft of company property
j. Qualified theft
k. Violation by a bank cashier of Section 83 of the General Banking Act regarding loans to bank officers and directors
l. Concealment by a bank manager of the true balance of customers account
m. Repeated and numerous infractions by a bank teller in handling of funds
n. Misappropriation of company funds
o. Repeated incurrence of cash shortage
p. Engaging in an anomalous scheme to cover up past due account
Commission of a crime ground for dismissal if it is committed by an employee against the person of the:
a. Employer
b. Immediate member of his family
c. Authorized representative of the employer
o Prior conviction is not required mere commission is enough
Analogous Causes the offense must have an element similar to those found in the specific just cause enumerated under Art. 282 of the LC.
o Conviction of a crime involving moral turpitude is NOT analogous to commission of a crime by the employee
o Illustrative examples of analogous causes
a. Gross inefficiency
b. Inflicting or attempting to inflict bodily injury on the job site on company time
c. Unreasonable behaviour, quarrelsome, bossy and very difficult to deal with
Other Valid Causes for Dismissal
a. Violation of company rules and regulations
1. Violation of the rule against sleeping while on duty
2. Violation of the rule prohibiting drinking liquor on company time in company premises and engaging in an adulterous act of sexual
intercourse
3. Violation of safety rules
4. Violation of rule against abseentism
5. Violation of aircraft parking procedure
6. Violation of the rule prohibiting pilots from drinking liquor prior to a flight
7. Violation of the rule acquiring that the ticket booth of the theatre should be closed at all times as a precaution against holdups
b. Breach of union security arrangements closed shop, union shop, maintenance of membership etc.
Limitations (breach of union security arrangement):
1. Employees who are already members of another union at the time of the signing of the CBA cannot be dismissed for refusing to join the
contracting union
2. Employees who refuse to join the contracting union because of prohibition imposed by their religion cannot likewise be dismissed
3. If it was the contracting union itself who refused to accept the employee as its member, the union cannot validly ask for the dismissal of
the employee
4. If the employee resigns from the contracting union during the freedom period, the union cannot validly ask for the dismissal of the
employee.
c. Participation in an illegal strike union officer
d. Commission of illegal acts during a strike - union officer or worker
e. Defiance of return-to-work order in a strike all employees who defies; and
f. Sexual harassment committed by an employer, employee, manager, supervisor or agent of the employer who, having authority, influence or moral
ascendancy over another, demands, requests or otherwise requires any sexual favour from another, regardless of whether the demand, request or
requirement is accepted.
o In a work-related or employment environment, sexual harassment is committed:
a. When sexual favour is made as a condition for hiring, re-employment or continued employment of an employee; or
b. When sexual favour is made as a condition for granting favourable terms, conditions, promotions, compensation or privileges;
c. When refusal to grant the sexual favour results in limiting, segregating or classifying the employee which in any way would discriminate,
deprive, or diminish employment opportunities or otherwise adversely affect said employee;
d. When sexual advances impair the employees rights or privileges under existing labor laws; or
e. When the sexual advances result in an intimidating, hostile, or offensive environment for the employee.
o Sexual harassment in a workplace is not about a man taking advantage of a woman by reason of sexual desire; it is about power being
exercised by a superior officer over his women subordinates
Additional causes for terminating school personnel:
a. Gross inefficiency and incompetence in the performance of his duties such as, but not limited to habitual and inexcusable absences and tardiness
from his classes, wilful abandonment of employment or assignment
b. Negligence in keeping school or student records, or tampering with or falsification of the same
c. Conviction of a crime, or an attempt on or a criminal cat against the life of any school official, personnel, or student or upon the property or interest of
the school.
d. Notoriously undesirable
e. Disgraceful or immoral conduct
f. Selling tickets or the collecting of any contribution except membership fees of pupils and students in the Red Cross, Girl/Boy Scouts
g. Closure or cessation of the educational program or course or the school itself
h. Other causes
RA 7877 An act declaring sexual harassment unlawful in the employment, education or training environment, and for other purposes p. 588

Art. 283. Closure of establishment and reduction of personnel. The employer may also terminate the employment of any employee due to the
installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or
undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the
Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-
saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at
least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation
of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one
(1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.

Economic Justifications for terminating an employee
a. Installation of labor saving devices
b. Redundancy excess man power
c. Retrenchment to prevent losses; and
d. Closing or cessation of operation of the establishment not due to serious losses
Installation of Labor Saving Devices to be conceded is the employers right to follow economic policies that would insure profit to itself and for this
purpose to mechanize or modernize its business even if in the process, it results in the dismissal of a number of employees
Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise..
o A position is redundant where it is superfluous and superfluity of a position may be the outcome of a number of factors, such as overhiring of
workers, decreased volume of business or dropping of a particular product line or service activity previously manufactured or undertaken by the
enterprise.
o Redundancy does not necessarily refer to duplication of work
o Requisites of a Valid Redundancy Program:
1. Good faith in abolishing the redundant positions;
2. Fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished;
3. Written notice served on both the employees and the DOLE at least 1 month prior to the intended date of termination; and
4. Payment of separation pay
o The employers good faith in implementing a redundancy program is not necessarily destroyed by the engagement of an independent contractor to
replace the services of the terminated employees.
Retrenchment reduction of personnel due to actual or anticipated losses, lack of work or reduction in the volume of business.
o an employer can adopt retrenchment measures even before the anticipated losses are actually sustained
o Four Standards of Retrechment
a. The expected losses should be substantial and not merely de minimis in extent
b. The substantial loss apprehended must be reasonably imminent, as such imminence can be perceived objectively and in good faith by the
employer
c. It must be reasonably necessary and likely to effectively prevent the expected losses. It must be resorted to as a measure of last resort, after
less drastic means have been tried and found wanting or insufficient
d. The alleged losses already realized and the expected imminent losses sought to be forestalled, must be proved by sufficient and convincing
evidence.
o Requisites of Valid Retrenchment
a. That the retrenchment is reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis but
substantial, serious, actual and real or if only expected, are reasonably imminent as perceived objectively and in good faith by the employer.
b. That the employer exercises its prerogative to retrench employees in good faith for the advancement of its interest and not to defeat or
circumvent the employees right to security of tenure
c. That the employer used fair and reasonable criteria in ascertaining who would be dismissed and who would be retained among the employees,
such as: (1) less preferred status, (2) efficiency, (3) seniority, (4) physical fitness, (5) age and (6) financial hardship of certain workers
d. That the employer served written notice both to the employee and the DOLE at least one month prior to the intended date of retrenchment;
and
e. That the employer pays the retrenched employees separation pay.
Closure of Establishment
o The closure contemplated in Art. 283 is permanent closure. If the closure is temporary, the legal effect thereof is governed by Art 286
o The closure may be total or partial (by department or section)

o Requisites of Valid Closure:
a. The closure of business must be bona fide in character;
b. A written notice must be served upon the employees and the DOLE at least 1 month before the intended date of closure
c. The employer must giver separation pay to the employees, if the closure was not due to serious business losses
o Relocation of plant may amount to closure
Procedural Requirements:
o The employer should serve a written notice at least 1 month in advance to the: (2 notices)
a. Affected employees and
b. DOLE
Amount of separation pay employees terminated on the ff grounds are entitled to separation pay at least 1 month pay or the following amount,
whichever is higher:
a. One (1) month pay for every year of service in case of:
1. Installation of labor-saving devices; or
2. Redundancy
b. One-half (1/2) month pay for every year of service in case of:
1. Retrenchment to prevent losses; or
2. Closure of establishment not due to serious business losses
o No separation pay in case of closure of establishment due to serious business losses
The phrase for every year of service means actual service. It excludes the years when the employee did not render any service to the employer. In
computing the length of service, a fraction of at least 6 months shall be considered as one whole year
In the case of salesmen paid on commission basis, the average commissions earned during the past year of employment should be used as basis in
computing the separation pay
With regard to seasonal employees, their separation pay should be computed at one-half of their respective average monthly pay during the last season
multiplied by the number of years they actually rendered service, provided that they worked for at least 6 months during a given year.

Art. 284. Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any
disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided,
That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is
greater, a fraction of at least six (6) months being considered as one (1) whole year.

Conditions for Terminating an Employment Due to Illness
a. That the continued employment of the sick employee is prohibited by law or is prejudicial to his health or to the health of his co-employees; and
b. That there is a certification from a competent or at such a stage that it cannot be cured within a period of 6 months even with proper medical
treatment.
o If employer dismissed without public health certificate, dismissal is ILLEGAL.
o Entitlement to separation pay equivalent to at least 1 month salary or to month salary for every year of service, whichever is greater.

Art. 285. Termination by employee.
a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least
one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.
b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and person of the employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his representative;
3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the
immediate members of his family; and
4. Other causes analogous to any of the foregoing.

Termination of Employment by the EMPLOYEE:
a. Voluntary resignation
b. Constructive resignation (abandonment of employment); and
c. Involuntary resignation (constructive dismissal)
Voluntary Resignation formal renouncement or relinquishment of an office
o It is the voluntary act severing an employment relation at the initiative of the employee who finds himself in a situation where he believes that
personal reasons cannot be sacrificed in favour of the exigency of service that he has no other choice but to dissociate himself from his employment
o It must be unconditional and with the intent to operate as such
o Intent to relinquish the job can be inferred from the wordings of the letter or memorandum
o Intent to relinquish the job can also be inferred from the actuations of the employee
o The voluntariness of resignation is not negated by the fact that the resignation was brought about by the threat of the employer to file criminal action
for estafa against the employee who has misappropriated company funds
o Resignation as alternative to dismissal does not negate the voluntariness of resignation
o ONE MONTH NOTICE otherwise can be held liable for damages. The employer cannot compel the employee to render service during the period
because that would amount to involuntary servitude
o Purpose of the One-month notice to find a replacement
o Waiver of the One-month notice may be given by the employer. The 30 day period may be disregarded by the employer.
o Resignation once accepted and being the sole act of the employee, may not be withdrawn without the consent of the employer. If employer does not
accept the withdrawal of resignation, the recourse is to REAPPLY.
o An employee who voluntarily resigns from his employment is not entitled to separation pay, except when it is stipulated in the employment contract,
collective bargaining agreement or if sanctioned by established employer practice or policy.
Constructive resignation (Abandonment of Employment) is the deliberate, unjustified refusal of an employee to resume his work.
o It is a voluntary act of the employee akin to voluntary resignation, the only difference is that in abandonment of employment the employee just quits
his employment without notice.
o Elements of Abandonment of Employment
a. Absence without notice, permission or justifiable reason and
b. Intent to sever the employment relationship,
o Intent to abandon can be inferred from the following:
a. Failure of the employee to comply with notices or directives for him to report for work;
b. Failure to report for work within a reasonable time after expiration of leave of absence without pay
c. Failure to report for work despite disapproval of application for indefinite leave of absence
d. Prolonged absences without justifiable reason.
o Intent to abandon is negated by the immediate filing of a complaint for illegal dismissal
o However, the rule that immediate filing of complaint for illegal dismissal negates abandonment does not apply where the complaint does not pray for
reinstatement but only for separation pay
o Write a memo ordering the employee to report for work
o Second notice at his last address
o Abandonment
o Abandonment vs. Absence without Leave (AWOL)
Abandonment of employment no intention to return to work
Absence without leave intention to return to work
Involuntary Resignation (constructive dismissal) a situation where an employee is constrained to quit his job because continued employment is
rendered impossible, unreasonable or unlikely; when there is a demotion in rank, diminution in pay or when a clear discrimination, insensibility or disdain
by an employer because unbearable to the employee.
o Serious Insult upon the honor and the person of the employee
Demotion without just cause
Forced to remain without work or assignment, for period of 6 months
o Inhuman and unbearable treatment
o Commission of a crime against the employee or the immediate members of his family.
o ONE MONTH NOTICE NOT REQUIRED
o Relief for Constructive Dismissal separation pay plus indemnity in the form of nominal damages or backwages, the amount of which will depend
upon the discretion of the LA or the NLRC. Reinstatement is not a proper relief because of strained relations.

Art. 286. When employment not deemed terminated. The bona-fide suspension of the operation of a business or undertaking for a period not
exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer
shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1)
month from the resumption of operations of his employer or from his relief from the military or civic duty.

Suspension of Business Operations
o Must be in good faith
o If done in bad faith, as when it is done to discourage employees from exercising their right to self-organization, the employment relationship will be
deemed uninterrupted
o Suspension of operation or lay-off of personnel is usually resorted to when there is lack of work, lack of materials, reduction in volume of business,
losses in business operations, repair and cleaning of machinery or year-end inventory
o Lay-off differs from dismissal in that dismissal implies permanent separation from service, while lay-off implies temporary separation.
o When the lay-off or suspension of operations does not exceed 6 months, the employment status of an employee is not terminated but merely
suspended
o However, if exceeds 6 months, constructive dismissal ensues. The affected employees are entitled to separation pay unless the failure of the
employer to resume operations was impelled by serious business losses, in which case, the affected employees are not entitled to separation pay
Temporary off-detail/Floating status of a security guard is a form of lay-off
o Must be only for 6 months
Fulfillment of a Military or Civic Duty
o An employee who is called upon to perform a mandatory military or civic duty does not forfeit his job his employment is merely suspended for the
duration of such civic or military duty even if such duty exceeds 6 months.
o Must signify desire to resume his work not later than 1 month from his relief from military or civic duty

Title II
RETIREMENT FROM THE SERVICE

Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other
applicable employment contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective
bargaining agreement and other agreements: Provided, however, That an employees retirement benefits under any collective bargaining and other
agreements shall not be less than those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the
age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least
five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one whole year.
Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th
month pay and the cash equivalent of not more than five (5) days of service incentive leaves.
Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage
of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal provisions under Article 288 of this Code.

Retirement withdrawal from office, public station, business, occupation or public duty
Retirement vs. Resignation
o Retirement a bilateral act of the employer and employee in putting an end to the employment relations upon reaching a certain age or after
rendering a certain number of years of service
o Resignation unilateral act of an employee in terminating his employment relations with his employer for personal reasons.
Retirement vs. Dismissal
o Retirement bilateral act of the employer and employee whereby the latter after reaching a certain age agrees or consents to sever his employment
with the former
o Dismissal unilateral act of an employer in terminating the services of an employee for cause.
Retirement law may be given retroactive effect
o RA 7641 which amended Art 287 of the LC effective Jan. 7, 1993, may be given retroactive effect under the following conditions:
a. The claimant for retirement benefits was still an employee at the time the statute took effect; and
b. The claimant complies with the requirements for eligibility under the statute for such retirement benefits. The conditions for eligibility for
retirement must be met at the time of retirement at which juncture the right to retirement benefits vests upon him
Coverage of Art. 287 of the Labor Code
o All employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid,
are covered by the retirement provision of the Labor Code, except the following:
1. Domestic helper and persons in the personal service of another
2. Employees of retail establishments regularly employing not more than 10 employees
3. Employees of service establishments regularly employing not more than 10 employees
4. Employees of agricultural establishments or operations regularly employing not more than 10 employees.
Types of retirement under the LC:
1. Optional
2. Compulsory
Optional Retirement
o If there is no retirement plan or contract
For ordinary employees at least 60 years old
For underground mining employees at least 50 years old
The option in this particular situation can be exercised only by the EMPLOYEE.
However, in order to be entitled to retirement pay, it is necessary that the employee should have served in the establishment for at least 5
years
o If there is a retirement plan or contract,
The optional retirement age is that established in the retirement plan, CBA or other employment contract
The option can be exercised by either the employee or the employer
o Basis of Optional Retirement need not always be based on age. Length of service may also be used as criterion for retirement.
Compulsory retirement
o For ordinary employees, the compulsory retirement age is 65 years old
o For underground mining employees, 60 years old
Retirement Pay
o If there is a retirement plan or contract that stated in that contract. However, if the retirement benefits under the retirement plan, CBA or
individual employment contract or are less than that provided for in the LC, the employer shall pay the difference.
If the retirement fund comes from the contribution of both the employer and the employee, the employers total contribution should not be less
than the total retirement benefits to which the employee would have been entitled had there been no such retirement fund
o If there is no retirement plan or contract the retirement pay is month salary for every year of service, a fraction of at least 6 months being
considered as 1 whole year.
This translates to 22.5 for every year of service because it is composed of the following:
a. 15 days salary based on the employees latest salary rate
b. Cash equivalent of not more than 5 days of service incentive leave
c. 1/12 of the 13
th
month pay due the employee
Computation of Length of Service should be on actual service.
PAG-IBIG Fund Coverage as Substitute Retirement Plan should be more than or at least equal to the retirement benefits under Art. 287, as amended by
RA 7641
Extension of Services After Retirement upon retirement of an employee, whether optional or compulsory, his services may be continued or extended
on a case-to-case basis upon agreement of the employer and the employee. It is a privilege only an employer can grant
Taxability of Retirement Pay RR 12-86, pensions, retirement and separation pay constitute compensation subject to withholding, except the following:
- Retirement benefits received by official and employees of private firms under a reasonable private benefit plan maintained by the employer, if the
following requisites are met:
1. The benefit plan must be approved by the BIR
2. The retiring official or employee must have been in the service of the same employer for at least 10 years and is not less than 50 years of age
at the time of retirement; and
3. The retiring official shall not have previously availed of the privilege under the retirement benefit plan of the same or another employer.
Criminal Liability
o Fine of not less than 1000 nor more than 10000
o Imprisonment of not less than 3 months nor more than 3 years
o Both