LABOR LAW 1

Midterms Coverage
Atty. Anatoly N. Estrella

I. Fundamental Principles and Concepts

A. Legal Basis
1. Labor Code PD No. 442 as amended (Articles 3, 4, 172, 218, 261, 283 (a)(c)(d)(h)(i)
a. History of PD No. 442
1. Asuncion Bros. & Co., Inc. vs. CIR, 163 SCRA 596, 1988
b. Applicability
1. Coverage – Agricultural vs. Non-Agricultural, Section 25 of R.A. No. 8550
a. FEU vs. Trajano, 152 SCRA 725, 1987
b. Chiang Kai Shek School vs. CA, 172 CRA 389, 1989
2. Exceptions
a. government employees
b. GOCC with charters
c. GOCC without original charters
d. SAFDC-Aquaculture Department vs. NLRC, 206 SCRA 283, 1992
2. Civil Code (Articles 19, 1700, 1701, 1702 and 1703)
a. Brewmaster International vs. NFLU, 271 SCRA 275, 1997
3. Other Sources of Philippine Labor Laws
a. P.D. No. 851
b. R.A. No. 7610
c. R.A. No. 7277
d. R.A. No. 7699
e. R.A. No. 7877
f. R.A. No. 8282 as amended by R.A. 10022
g. R.A. No. 8282
h. R.A. No. 8291
i. P.D. No. 807
j. E.O. No. 180
k. E.O. No. 292
l. R.A. No. 6657
m. R.A. No. 6971
n. R.A. No. 7305
o. R.A. No. 7686
p. R.A. No. 7875
q. R.A. No. 7883
r. R.A. No. 8187
s. R.A. No. 8759
t. R.A. No. 8972
u. R.A. No. 9178
v. R.A. No. 9262
w. R.A. No. 9433
x. R.A. No. 9679
y. R.A. No. 10361
4. Implementing Rules of the Labor Code
B. Constitutional Provisions
 1. Article II, Sections 9, 10, 18, 20
a. Gregorio Araneta University Foundation vs. NLRC, 155 SCRA 301, 1987.
b. Fuentes vs. NLRC, 266 SCRA 24, 1997
2. Article III, Sections 4, 8, 10, 16, 18(2)
a. Philippine Blooming Mills Employees Organization vs. Philippine Blooming Mills
Co., Inc., 51 SCRA 1989, 1973
3. Article XIII, Sections 2, 3, 13, 14
a. Calalang vs. Williams, 70 Phil. 726, 1940.
b. Philippine Airlines, Inc. vs. Santos, Jr., 218 SCRA 415 (1993),
c. Cuadra vs. NLRC, 207 SCRA 279 (1992),
d. Sta. Rita vs. Court of Appeals, 247 SCRA 484 (1995),
e. Serrano vs. Gallant Maritime Services, Inc., G.R. No. 167614, March 24, 2009,
f. Sibal vs. Notre Dame of Greater Manila, 182 SCRA 538, 1990,
g. Manila Electric Company vs. Lim, G.R. No. 184769, October 5, 2010,
C. Concepts
1. Definition of Labor
2. Distinction between Labor Legislation and Social Legislation
3. Purpose of Labor Legislation
4. Classification of Labor Laws
5. Relationship Between Labor Standards Law and Labor Relations Law
6. Police Power as Basis for Enactment of Labor and Social Legislation
a. People vs. Pomar, 46 Phil. 440, 1924.
b. Philippine Association of Service Exporters, Inc. vs. Drilon, 163 SCRA 386, 1988.
c. CMS Estate, Inc. vs. SSS, 132 SCRA 108, 1984.
7. Welfare State Concept
a. Alalayan vs. National Power Corporation, 24 SCRA 172, 1968.
8. Concept of Laissez Faire
a. Employers Confederation of the Philippines vs. NWPC, 201 SCRA 759, 1991.
9. Compassionate Policy
a. Chua vs. NLRC, 206 SCRA 65, 1992,
b. Dolores vs. NLRC, 205 SCRA 348, 1992,
10. Management Prerogative
a. Chu vs. NLRC, 232 SCRA 764, 1994,
b. Cruz vs. Medina, 177 SCRA 565, 1989,
c. San Miguel Corporation vs. Ubaldo, 218 SCRA 293, 1993.
d. Businessday Information Systems and Services, Inc. vs. NLRC, 229 SCRA 9, 1993
e. GTE Directories Corporation vs. Sanchez, 197 SCRA 452, 1991.
11. Employer-Employee Relationship
12. Definition of Employer
13. Definition of Employee
14. Distinction between Worker and Laborer
15. Classification of Workers
a. As to applicability
b. As to training and employment of Special Workers
c. As to management employees
d. As to payment by results
e. As to minimum wage rates
f. As to working conditions of special groups of employees
 g. As to labor relations
h. As to status of employment
i. As to special groups of employees
16. Test of Employer-Employee Relationship
a. Four-Fold Test
1. Villuga vs. NLRC, 225 SCRA 537
2. SSS vs. CA, 348 SCRA 1, 2000
3. Air Material Wing Savings and Loan Association, Inc. vs. NLRC, 233 SCRA
592, 1994.
4. Hydro Resources Contractors Corp vs. Pagalilauan, 172 SCRA 399, 1989
b. Control Test
1. Vallum Security Services vs. NLRC, 224 SCRA 781, 1993
2. Ruga vs. NLRC, 181 SCRA 266, 1990
3. Corporal, Sr. vs. NLRC, 341 SCRA 658, 2000
4. Cosmopolitan Funeral Homes, Inc. vs. Maalat, 187 SCRA 448, 1989
5. Makati Haberdashery, Inc. vs. NLRC, 179 SCRA 448, 1989
c. Existing Economic Conditions
1. Sevilla vs. CA, 160 SCRA 171, 1988
2. Flores vs. Nuestro, 160 SCRA 568, 1988
3. Montilla vs. NLRC, 228 SCRA 538, 1993
d. Two-Tiered Test
1. Francisco vs. NLRC, G.R. No. 170087, August 31, 2006
2. Pan Pacific Industrial Sales, Co., Inc. vs. NLRC, 194 SCRA 633, 1991
3. Sevilla vs. CA, 160 SCRA 171, 1988
e. Applicability to Cooperatives and Their Employees
1. Republic vs. Asiapro Cooperative, G.R. No. 172101, November 23, 2007,
2. Dole Philippines, Inc. vs. Esteva, G.R. No. 161115, November 30, 2006,
3. Cooperative Rural Bank of Davao City vs. Ferrer-Calleja, 165 SCRA 725, 1988,
4. Republic vs. Asiapro Cooperative, G.R. No. 172101, November 23, 2007,
5. Dole Philippines, Inc. vs. Esteva, G.R. No. 161115, November 30, 2006
f. Involuntary Servitude
1. Philippine Village Hotel vs. NLRC, 230 SCRA 423, 1994.
g. No Employer-Employee Relationship
1. Mafinco Trading Corp vs. Ople, 70 SCRA 129, 1993
2. Rhoene-Poulenc vs. NLRC, 217 SCRA 249, 1993
3. Shipside, Inc. vs. NLRC, 118 SCRA 99, 1982
4. Neri vs. NLRC, 224 SCRA 717, 1993
5. La Suerte vs. Director of BLR, 123 SCRA 679, 1983
6. Coca-Cola Bottlers Philippines, Inc. vs. Dela Cruz, G.R. No. 184977,
December 7, 2009
7. Villavilla vs. Court of Appeals, 212 SCRA 488, 1992
8. Besa vs. Trajano, 146 SCRA 501, 1986
9. Singer Sewing Machine Co. vs. Drilon, 193 SCRA 270, 1991
10. Great Pacific Life Assurance Corporation vs. Judico, G.R. No. 73887,
December 21, 1989
11. Tongko vs. The Manufacturers Life Insurance Co, G.R. No. 167622, June 29,
2010
12. Bernarte vs. PBA, G.R. No. 192084, September 4, 2011
 13. Sonza vs. ABS-CBN Broadcasting Corp., 431 SCRA 583, 2004.
14. Orozco vs. CA, G.R. No. 155207, August 13, 2008
15. Coca-Cola Bottlers [Phils], Inc. vs. Climaco, G.R. No. 146881, February 5,
2007,
16. Filamer Christian Institute vs. IAC, 212 SCRA 637, 1992.
h. Construction in Favor of Labor
1. PLDT vs. NLRC, 276 SCRA 1, 1997
2. Chartered Bank Employees Association vs. Ople, 138 SCRA 273, 1985
3. Eastern Shipping Lines vs. POEA, 166 SCRA 533, 1988
4. Republic vs. Peralta, 150 SCRA 37, 1987
5. Bonifacio vs. GSIS, 146 SCRA 276, 1986
i. No Work, No Pay Principle
j. Last In, First Out Rule
k. One Union One Company Policy
l. Probationary Employment

II. RECRUITMENT AND PLACEMENT

A. Illegal Recruitment
1. Elements
2. Prohibited Activities (Article 34, Labor Code)
3. Types of Illegal Recruitment
4. Illegal Recruitment vs. Estafa
5. Liability of local recruitment agency and foreign employer
a. Solidary Liability
b. Theory of Imputed Knowledge
6. Termination of Contract of Migrant worker with just or valid cause
7. Ban on direct hiring
B. Regulation of Recruitment and Placement Activities
1. Suspension or cancellation of license or authority
2. Regulatory and visitorial powers of the Department of Labor and Employment
(DOLE) Secretary
3. Prohibited activities