Sb Labor Law 2019

LABOR STANDARDS GENERAL PROVISIONS 1. Applicability of Philippine laws overseas employment contracts.

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General Rule: Philippine laws apply to overseas employment contracts. Exceptions: When the parties agree that a foreign law shall govern the employment contract; provided the following requisites are present: a. It is expressly stipulated in the overseas employment (OE) contract that a specific foreign law shall govern; b. The foreign law must be proven before the courts; c. The foreign law must not be contrary to law, morals, good customs, public order, or public policy of the Philippines; and d. The OE contract must be processed through the POEA (IPAMS v. Arriola, 2016). PRE-EMPLOYMENT 2. Reliefs for illegally dismissed OFWs. a. Unpaid salaries for the unexpired portion of the employment contract; and b. Full reimbursement of placement fees and the unauthorized deductions made with interest at 12% per annum (R.A. No. 8042, as amended, Sec. 10, par. (5)). Liability of corporate officers and directors If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners, as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the monetary claims and damages (R.A. No. 8042, as amended, Sec. 10, par. (2)). 3. Alien Employment Permit (AEP). All foreign nationals who intend to engage in gainful employment in the Philippines shall apply for AEP (D.O. No. 186-17, Sec. 1). Exemptions from AEP a. Members of the diplomatic service and foreign government officials; b. Officers and staff of international organizations of which the Philippines is a member, and their legitimate spouses; c. Owners and representatives of foreign principals accredited with POEA, who come to the Philippines to interview Filipino applicants;

d. Foreign nationals who come to teach, present and/or conduct research studies in universities and colleges; e. Permanent resident foreign nationals and resident visa holders; f. Refugees and stateless persons; g. Those granted exemption by law (D.O. No. 186-17, Sec. 2). Note: Without an AEP, any employment relationship contemplated by the parties is void for being contrary to law and has no force and effect from the beginning. The Employment Agreement is void and could not be the source of a right or obligation (Mcburnie v. Ganzon, 2013). 4. Recruitment and Placement (CETCHUPCRAP). Any act of Canvassing, Enlisting, Transporting, Contracting, Hiring, Utilizing or Procuring workers, and includes Contract services, Referrals, Advertising or Promising for employment, locally or abroad, whether for profit or not; Provided, That any person or entity which, in any manner, offers or promises for a fee employment to two (2) or more persons shall be deemed engaged in recruitment and placement (Art. 13(b)). 5. Reprocessing. A prohibited activity on recruitment and placement which pertains to the act of reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA (R.A. No. 8042, Sec. 6, as amended). 6. Illegal recruitment as economic sabotage. Illegal recruitment is considered a crime of economic sabotage when committed: a. By a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction, enterprise or scheme which is an act of illegal recruitment. b. In large scale if committed against three (3) or more persons individually or as a group (R.A. 8042, Sec. 6, as amended). 7. Illegal Recruitment and Estafa. A person who commits illegal recruitment may be charged and convicted separately of illegal recruitment under the Labor Code and estafa under par. 2(a) of Art. 315 of the Revised Penal Code. The offense of illegal recruitment is malum prohibitum while estafa is malum in se. Conviction for estafa does not bar a conviction for illegal recruitment. It follows that one's acquittal of the estafa will not necessarily result in the acquittal of illegal

POLITICAL LAW COMMITTEE Atty. Joyrich M. Golangco Adviser, KRISTINA CABUGAO Subject Chair, VICTOR KENNER GALANG, MISHAEL OCCIANO, NATE QUIJANO, JUZMEND ABRIAM, BEA PATRICIA DANGAZO Members EXECUTIVE COMMITTEE MARY CYRIELL C. SUMANQUI Over-all Chairperson, ERICA MAE C. VISTA Chairperson for Academics, BEN REI E. BARBERO Chairperson for Hotel Operations, JHELSEA LOUISE B. DIMAANO Vice Chairperson for Secretariat, EARL JUSTIN M. YAMBAO Vice Chairperson for Operations, MA. ANGELICA B. DE LEON Vice Chairperson for Finance, ARRA OLMAYA J. BADANGAN Vice Chairperson for Audit, JORDAN N. CHAVEZ Vice Chairperson for EDP, HANZ DARRYL D.TIU Vice Chairperson for Logistics, and DOHN ALFRED E. AQUILIZAN Vice Chairperson for Membership ADMINISTRATIVE STAFF CAMILLE VICTORIA D. DELA CRUZ, JOSE RONILO V. DITCHING JR., PAULO O. HERNANDEZ, ZENNIA S. TURRECHA, NESTOR J. PORLUCAS, JR. ROGER P. CUARESMA, GABRIELLE ANNE S. ENDONA, JOELLE MAE J. GARCIA, MICAH REGINA A. GONZALES, MA. CONSOLODA V. BEN, RAPH KEVIN L. SANTOS, CHRISTINE GRACE S. PANAHON, CHEYENNE HOPE DUMLAO, CORINA R. TAMPUS, MARION PATRICIA L. RODRIGUEZ, CHRISTIAN ERNEST C. BIAGTAN, ELIZABETH MARINO, AIRA MARIELLE GERONIMO, KENNETH ALDWIN M. QUEJADA

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recruitment in large scale, and vice versa (People v. Daud, 2014). LABOR STANDARDS 8. Stipulation against marriage. It shall be unlawful for an employer to: a. Require as a condition for employment or continuation of employment that a woman employee shall not get married; b. Stipulate expressly or tacitly that upon getting married a woman employee shall be deemed resigned or separated; and c. Actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage (Art. 134). 9. Employment of Minors. General Rule: Children below fifteen years of age shall not be employed. Exceptions: a. When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/ her family are employed; and b. Where the child’s employment or participation in public entertainment or information through cinema, theater, radio, television or other forms of media is essential (R.A. No. 9231, Sec. 2). 10. Qualified Disabled Person. A qualified disabled person is an employee who can perform, with or without reasonable accommodations, the essential functions of her employment. A qualified disabled employee shall be subject to the same terms and conditions and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person (R.A. No. 7277, Sec. 5). 11. Conditions for entitlement to paternity leave. a. He is an employee at the time of the delivery of his child; b. He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage; c. He has applied for paternity leave with his employer; and d. His wife has given birth or suffered a miscarriage (Revised IRR of R.A. No. 8187 for the Private Sector, Sec. 3). 12. Principle of Non-Diminution of Benefits. The employer cannot reduce, diminish, discontinue or eliminate any benefit or supplement being enjoyed by or granted to its employees (Philippine Journalists Inc. v. Journalist Employees Union, 2013). There is diminution of benefits when it is shown that: (1) the grant or benefit is founded on a policy or has ripened into a practice over

a long period; (2) the practice is consistent and deliberate; (3) the practice is not due to error in the construction or application of a doubtful or difficult question of law; and (4) the diminution or discontinuance is done unilaterally by the employer (TSPIC Corp v. TSPIC Employees Union, 2008). 13. Bonus; when demandable and enforceable. Generally, a bonus is not a demandable and enforceable obligation. For a bonus to be enforceable: a. It must have been promised by the employer and expressly agreed upon by the parties; or b. It must have had a fixed amount and had been a long and regular practice on the part of the employer (American Wire and Cable Daily Rated Employees Union v. American Wire and Cable Co. Inc., 2005). Requirement for the grant of bonus to ripen into a company practice To be considered a regular practice, the giving of the bonus: (1) should have been done over a long period of time, and (2) must be shown to have been consistent and deliberate (Eastern Telecommunications Phils. v. Eastern Telecoms Employees Union, 2012). 14. Requisites of Wage Distortion: a. An existing hierarchy of positions with corresponding salary rates; b. A significant change in the salary rate of a lower pay class without a concomitant increase in the salary rate of a higher one; c. The elimination of the distinction between the two levels; and d. The existence of the distortion in the same region of the country (Bankard Employees Union-Workers Alliance Trade Unions v. NLRC, 2004). 15. “Non-Chargeability Clause” or “Stop Lock” Gate. An allowance previously granted to an employee under the CBA cannot be credited to similar form of benefit that may thereafter be ordained by the government through legislation (Marcopper Mining Corp. v. NLRC, 1996). 16. Escalator Clause. A provision in union or business contracts for automatic adjustment of wages or prices in proportion to changes in an external standard, such as the US cost of living index (Encyclopaedia Britannica). 17. Coverage of 13th month pay. All employers are required to pay their rank and file employees thirteenth-month pay, regardless of the nature of their employment and irrespective of the methods

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by which their wages are paid, provided they worked for at least one (1) month during a calendar year. The following employers are not covered by PD 851: a. The government and any of its political subdivisions, except those corporations operating essentially as private subsidiaries of the government; b. Employers who are already paying their employees thirteenth- month pay or more in a calendar year or its equivalent at the time of the issuance of PD 851; c. Persons in the personal service of another in relation to such workers; and d. Employers of those who are paid on purely commission, boundary or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except those workers who are paid on piece-rate basis, in which case their employer shall grant them thirteenth-month pay (2018 Handbook on Worker’s Statutory Monetary Benefits, p. 38-40). Note: A domestic worker or Kasambahay is entitled to 13th Month pay (R.A. No. 10361, otherwise known as “Domestic Workers Act”). 18. Service Incentive Leave. Every covered employee has rendered at least 1 year of service (whether continuous or broken) shall be entitled to a yearly SIL of 5 days with pay (Art. 95). Exceptions: a. Government employees; b. Managerial employees; c. Officers or members of a managerial staff; d. Persons in the personal service of another; e. Field personnel; f. Those already enjoying this benefit; g. Those enjoying vacation leave with pay at least 5 days; h. Those employed in establishments regularly employing less than 10 employees; (2018 Handbook on Workers’ Statutory Benefit) Note: Kasambahay are now entitled to 5-day SIL with pay (R.A. No. 10361). Curious Animal Doctrine The employee may choose to either use his leave credits or commute it to its monetary equivalent if not exhausted at the end of the year. The rule on commutation does not apply to Kasambahays (AutoBus Transport Inc. vs. Bautista, 2005). 19. Emergency Overtime Work. The instances when an employer may be required to perform overtime work:

a. Country is at war or when any other national or local emergency has been declared; b. Necessary to prevent loss of life or property or in case of imminent danger to public safety; c. Urgent work to be performed on machines in order to avoid serious loss or damage to the employer; d. Necessary to prevent loss or damage to perishable goods; and e. Necessary to prevent serious obstruction or prejudice to the business or operations of the employer (Art. 89). 20. CBA Credibility v. Wage Order. The intention of the parties, whether or not to equate benefits under a CBA with those granted by law, must prevail and must be given effect (Filipinas Golf and Country Club, Inc. v. NLRC, 1989). 21. Successive Holiday Pay. Where there are two (2) successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be paid for both holidays if he/she absents himself/herself from work on the day immediately preceding the first holiday, unless he/she works on the first holiday, in which case he/she is entitled to his/her holiday pay on the second holiday (2018 Handbook on Workers’ Statutory Monetary Benefit). 22. Summary of Rates. a. Holiday pay i. If unworked: 100% of the minimum wage rate ii. If worked on a regular holiday: 200% of the minimum wage rate iii. If worked on Araw ng Kagitingan which falls on the same day as Maundy Thursday or Good Friday: 300% b. Premium pay i. Rest days or on special days: 30% of the daily basic rate ii. Rest day which is also a special day: Plus 50% of the daily basic rate of 100% iii. Regular holiday: 30% of the regular holiday rate of 200% based on his/her daily basic wage rate c. Overtime pay i. Ordinary working days: 25% of the hourly rate ii. Scheduled rest day OR a special day: 30% of the hourly rate on said days; iii. Special day which falls on a scheduled rest day: 30% of the hourly rate on said days iv. Regular holiday: 30% of the hourly rate on said days v. Regular holiday which falls on a scheduled rest day: 30% of the hourly rate on said days

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d. Night differential pay: 10% of an employee’s regular wage for each hour of work performed from 10 p.m. to 6 a.m (2018 Handbook on Worker’s Statutory Monetary Benefits). 23. Worker’s preference in case of bankruptcy. In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first preference as regards their wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before claims of the government (Art. 110). The right to preference given to workers cannot exist in any effective way prior to the time of its presentation in distribution proceedings. To hold Art. 110 to be applicable also to extrajudicial proceedings would be putting the worker in a better position than the State which could only assert its own prior preference in case of a judicial proceeding (Development Bank of the Philippines v. NLRC, 1995). 24. Sexual Harassment. The gravamen of the offense of sexual harassment is not the violation of sexuality but the abuse of power by the superior (PH Aeolus Automotive Corp. v. NLRC, 2000). To fall within the ambit of sexual harassment, it is not necessary that the demand, request or requirement for sexual favor be articulated in a categorical oral or written statement – it may be discerned with equal certitude from the acts of the superior. It is not even essential that the demand, request or requirement be made as a condition for continued employment or for promotion – it is enough that the acts result in creating an intimidating, hostile or offensive environment for the employee (Domingo v. Rayala, 2008). 25. Rights of Homeworkers. a. Right to self-organization (to form/join/assist organizations of their choice) (D.O. No. 05-92, Sec. 3); b. Right against unauthorized deductions – no employer, contractor or subcontractor shall make any deductions, in case of loss or damage to materials, from the homeworker’s earnings unless under the following conditions: i. The homeworker is clearly shown to be responsible; ii. The homeworker is given reasonable opportunity to show cause; iii. The amount of the deduction is fair and reasonable and shall not exceed the actual loss or damage; and iv. The amount deducted does not exceed 20% of the homeworker’s

earnings in a week (D.O. No. 05-92, Sec. 8); c. Payment for Homework – Immediately upon receipt of the finished goods or articles, the employer shall pay for the work performed less corresponding homeworkers’ share of SSS, MEDICARE, and ECC premium contributions which shall be remitted by the employer to the SSS with the employers’ share; (D.O. No. 05-92, Sec. 6); d. Right to minimum wage – right to receive not less than the prescribed minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed eight (8) hours a day, or a proportion thereof (2018 Handbook on Worker’s Statutory Monetary Benefits). SOCIAL WELFARE LEGISLATION 26. SSS Coverage. I. Compulsory: a. Employees: i. All private sector employees, who are not over 60 years of age (R.A. No. 8282, Sec. 9(a)); ii. Household helper or kasambahay, who is not over 60 years of age (R.A. No. 8282, Sec. 9(a)); iii. A Filipino seafarer (SSS Guidebook (2017), p. 4); and iv. All employees of a foreign government, international organization, which entered into an agreement with the Philippine government for the inclusion of such employees in the SSS (R.A. No. 8282, Sec. 8, par. (j)(4)). b. Employers: i. Any person who carries on in the Philippines any trade, business, industry, undertaking, and uses the services of another person, except the Government (R.A. No. 8282, Sec. 8, par. (c)); ii. Social, civic, professional, charitable, and other non-profit organizations which hire the services of employees (SSS Guidebook (2017), p. 4); iii. Any foreign government, international organization, or their wholly owned instrumentality which entered into an agreement with the SSS for the coverage of its Filipino employees (R.A. No. 8282, Sec. 8, par. (j)(4)); and iv. A household employer who engages and controls the services of a domestic worker (R.A. No. 10361, Sec. 3, (e)).

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II. Voluntary: a. Non-working spouses who devote full time to managing the household and family affairs (R.A. No. 8282, Sec. 9(b)); b. Persons separated from employment (R.A. No. 8282, Sec. 11) c. Self–employed, who realizes no income for a certain month (R.A. No. 8282, Sec. 11-A); and d. OFWs (R.A. No. 8282, Sec. 9(c)) 27. GSIS Coverage. a. All government personnel who have not reached the mandatory retirement age of 65 years (R.A. 8291, Sec. 3). b. An employee who is already beyond the mandatory retirement age of 65 and under the following situations: i. An elective official who at the time of election to public office is below 65 years of age and will be 65 years or more at the end of his term of office; ii. Appointive officials who, before reaching the mandatory age of 65, are appointed to government position by the President and shall remain in government service at age beyond 65 (IRR of R.A. No. 8291, Rule II, Sec. 2.2). c. Contractual employees, provided they are receiving fixed monthly compensation and rendering the required number of working hours for the month (IRR of R.A. 8291, Rule II, Sec. 2.3). DISABILITY BENEFITS 28. Disability Benefits under the Labor Code; State Insurance Fund (SIF). A state insurance fund is built up by the contributions of employers based on the salaries of their employees. The sick worker simply files a claim with a new neutral Employees' Compensation Commission which then determines on the basis of the employee's supporting papers and medical evidence whether or not compensation may be paid (Sarmiento v. ECC, 1989). 29. Limited Liability Doctrine. The SIF shall be liable for compensation to the employee or his dependents except when the disability or death was occasioned by: a. Willful intention to injure or kill himself or another; b. Intoxication; c. Notorious negligence; or d. Instances otherwise provided by the Labor Code (Art. 178). 30. Going & Coming out rule. General Rule: Going and Coming Rule – in the absence of special circumstances, an employee injured in, going to or coming from,

his place of work is excluded from the benefits of workmen’s compensation acts. Exceptions: The injury is compensable: a. When the injury is sustained when the employee is proceeding to or from his work in the premises of the employer; b. Ingress-Egress/Proximity Rule – where the employee is about to enter or about to leave the premises of his employer by way of the exclusive or customary means of ingress and egress; c. Special Errand Rule – where the employee is charged, while on his way to or from his place of employment or at his home, or during his employment with some duty or special errand connected with his employment; or d. Extra Premises Rule/The Shuttle Bus Rule – where the employer, as an incident to the employment, provides the means of transportation to and from the place of employment (Iloilo Dock & Engineering Co. v. WCC, 1968). 31. Disability Benefits under the POEA-SEC; When disability or death compensable. For an occupational disease and the resulting disability or death to be compensable, all of the following conditions must be satisfied: a. The seafarer's work must involve the risks described herein; b. The disease was contracted as a result of the seafarer's exposure to the described risks; c. The disease was contracted within a period of exposure and under such other factors necessary to contract it; and d. There was no notorious negligence on the part of the seafarer (Romana v. Magsaysay Maritime Corporation, 2017, Covered Case). 32. Referral to third physician; Failure to follow the procedure renders the rating issued by the company-designated physician conclusive. If the physician appointed by the seafarer disagrees with the assessment of the company-designated physician, the parties may agree to jointly refer the matter to a third doctor, whose decision shall be binding between them. The failure to follow this procedure is fatal and renders conclusive the disability rating issued by the companydesignated physician (Oriental Shipmanagement Co., Inc. v. Ocangas, 2017, Covered Case).

LABOR RELATIONS 33. Who may not form, join, or assist labor union: a. Employees of international organizations with immunities such as UN, IRRI, and International Catholic Migration Commission (ICMC v. Calleja, 1990);

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b. Members of the AFP, including police officers, policemen, firemen and jail guards (E.O. 180, Sec. 4); c. Managerial employees: i. Whose functions are normally considered as policy-making or managerial; and ii. Whose duties are of a highly confidential or highly technical in nature; d. Confidential employees (Metrolab Industries, Inc. v. Roldan-Confesor, 1996); e. High-level or managerial government employees (E.O. 180, Sec. 3); f. Aliens without valid working permits; or aliens with valid working permits but are nationals of a country which do not allow Filipinos to exercise the right of selforganization and to join or assist labor organizations (D.O. No. 9 (1997), Rule II, Sec. 2); g. Non-Employees (Rosario Bros., Inc. v. Ople, 1984); h. Government employees, including government-owned and controlled corporations with original charter (Arizala v. CA, 1990). However they can form a worker’s association; i. Employees of cooperatives who are its members (Benguet Elec. Coop. v. FerrerCalleja1989). However, they may form a worker’s association (NEECO Employees’ Ass’n. v. NLRC, 2000); and j. Subversives or those engaged in subversive (Art. 250 (e)). Confidential employees are those who by reason of their positions or nature of work are required to assist or act in a fiduciary manner to managerial employees and hence, are likewise privy to sensitive and highly confidential records (Metrolab Industries, Inc. v. Roldan-Confesor, 1996). For confidential employees to be disqualified, the two criteria must concur: a. The confidential relationship must exist between the employees and his supervisor; and b. The supervisor must handle the prescribed responsibilities relating to labor relations bargaining (SMCS v. Laguesma, 1997). 34. Consequences of Disaffiliation of a Union from a Federation/National Union. a. As to legal personality – registered independent union retains it while a chartered local loses its legal personality unless it obtains an independent registration; b. The CBA continues to bind the members of the new or disaffiliated and independent union up to the CBA’s expiration date; and c. The contract of agency between the affiliate and the federation/national union

is terminated. The Federation is divested of any and all powers to act in representation of the union (Volkschel Labor Union v. BLR, 1985). 35. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. The inclusion as union members of employees outside the bargaining unit shall not be a ground for cancellation of the registration of the union. The said employees are automatically deemed removed from the list of membership of the said union (Art. 256). Note: Supervisor’s union and the rank-andfile union operating within the same establishment may join the same federation or national union (Art. 255). 36. Jurisdictional Preconditions for Collective Bargaining. a. Possession of the status of majority representation; b. Proof of majority representation; and c. Demand to bargain (Kiok Loy v. NLRC, 1986). 37. Certification Election. It is the process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or negotiation (D.O. 4003, Rule I, Sec 1(h)). Who may file a Petition for Certification Election: a. Any legitimate labor organization (LLO) including a national union or federation that has issued a charter certificate to its local/chapter or the local/chapter itself; or b. An employer, when requested to bargain collectively in a bargaining unit where no registered collective bargaining agreement exists (D.O. No. 40-I-15, Rule VIII, Sec. 1). When to file a Petition for Certification Election (PCE): a. Unorganized establishment – at any time by an LLO; b. Organized establishment: i. No registered CBA – PCE may be filed at any time by an LLO; ii. With registered CBA A. Contract bar rule - while a valid and registered CBA of a fixed duration is subsisting, the BLR is not allowed to hold an election contesting the majority status of the incumbent union during its 5year term of representation except during the 60-day period immediately prior to the expiration of the 5 year term; B. Certification year bar rule - no

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petition for certification election may be filed within 1 year from the date of a valid certification, consent, or run-off election or from the date of voluntary recognition. The same ban applies if “no union” won in the previous election; C. Deadlock bar rule - petition for certification election can only be entertained if there is no pending bargaining deadlock submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout. The principal purpose is to ensure stability in the relationship of the workers and the management (NACUSIPTUCP v. Dir. Trajano, 1992); D. Negotiation bar rule - a petition for certification election cannot be entertained if, before the filing of the petition for certification election, the duly recognized or certified union has commenced negotiations with the employer in accordance with Art. 261 of the Labor Code within the 1 year period referred to in the certification year rule (D.O. 4003). 38. Exceptions to the Contract Bar Rule. The existence of a collective bargaining agreement will not bar certification election in the following instances: a. During the 60-day freedom period immediately prior to the expiry date of a CBA; b. When the CBA is not registered with the BLR or any of the DOLE Regional Office (RO); c. When the CBA, although registered, contains provisions lower than the standards fixed by law or illegal per se clauses; d. When the documents supporting the CBA’s registration are falsified, fraudulent or tainted with misrepresentation; e. When the CBA is not complete as it does not contain any of the mandatory provisions which the law requires; f. When the CBA was extended during its term as when it was negotiated and entered into prior to the 60-day freedom period. (CHAN, Bar Reviewer on Labor Law, 2019, p. 425). 39. Run-off v. Re-run Election. When Run-off election is conducted: A run-off election between the labor unions receiving the 2 highest number of votes shall be conducted when all the following concur:

a. A valid election took place because majority of the CBU members voted; b. The election is with three (3) or more choices (e.g. Union One, Union Two, and No Union); c. The election results in none of the three (3) choices receiving the majority of the valid votes cast; d. Provided that the total number of votes for all contending unions is at least 50% of the number of votes cast; and e. There must be no unresolved challenged votes or election protest which if sustained can materially alter the results (IRR of the LABOR CODE, Book V, Rule I, Sec. 1(ss)). Note: “No Union” shall not be a choice in the run-off election. When to conduct Re-Run Election: a. Tie between 2 contending unions, including “no union” and 1 of the unions; or b. Failure of election has been declared by the election officer and/or affirmed by the Mediator-Arbiter (IRR of the LABOR CODE, Rule I, Sec. 1(tt)). 40. Automatic Renewal Clause. The CBA shall remain effective and enforceable even after the expiration of the period fixed by the parties as long as no new agreement is reached by them (Art. 264). Automatic Renewal Clause pertains only to Economic Provisions The Automatic Renewal Clause under Art. 264 pertains only to the economic provisions of the CBA and does not include the representational aspect of the CBA. An existing CBA cannot constitute a bar to a filing of a petition for certification election. When there is a representational issue, the status quo provision in so far as the need to await the creation of a new agreement will not apply (PICOP Resources, Inc. v. Dequilla, 2011). 41. Unfair Labor Practices of Employers. a. To interfere with, restrain or coerce employees in the exercise of their right to self-organization; b. 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 (Yellow-Dog Contract); c. 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; d. To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of

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financial or other support to it or its organizers or supporters; e. 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. f. To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code; g. To violate the duty to bargain collectively as prescribed by the Labor Code; h. To pay negotiation or attorney’s 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 i. To grossly violate a CBA (Art. 259). 42. Boulwarism. - occurs when the employer directly bargains with the employee disregarding the union. The aim was to deal with the union through the employees, rather than with the employees through the union. Employer submits its proposals and adopts a “take it or leave it” stand (AZUCENA, The Labor Code with Comments and Cases, 2016, p. 420). 43. Closed-Shop Agreement. - It is an agreement whereby an employer binds himself to hire only members of the contracting union, who must continue to remain members in good standing to keep their jobs (2 AZUCENA, at 347). 44. Union Shop Agreement. - Non-members may be hired but to retain employment, they must become union members after a certain period. The requirement applies to present and future employees (2 AZUCENA, at 346). 45. Workpooling Scheme; Multi-employer Bargaining. Sister companies under the work-pooling scheme may be considered as a single bargaining unit. If circumstances show that sister companies are engaged in a workpooling scheme, they may be considered as one and the same entity for the purpose of determining the appropriate bargaining unit in a certification election. The basic test for determining the appropriate bargaining unit is the application of a standard whereby a unit is deemed appropriate if it affects a grouping of employees who have substantial, mutual interests in wages, hours, working conditions, and other subjects of collective bargaining. Geographical location can be completely disregarded if the communal or mutual interests of the employees are not sacrificed. There was communal interest among the rank-and-file employees of sister companies if there is a finding that they were constantly

rotated to all companies, and that they performed the same or similar duties whenever rotated (Ang Lee v. Samahang Manggagawa ng Super Lamination, 2016). 46. Grounds for a Valid Strike. a. Unfair labor practice (political); or b. Collective bargaining deadlock (economic). Collective Bargaining Deadlock refers to a situation where there is a failure in the collective bargaining negotiations between the collective bargaining agent and the employer resulting in an impasse or stalemate (NCMB Primer on Strike, Picketing and Lockout). Requisites for a Valid Strike a. Based on a valid and factual ground; b. Notice of strike filed with the NCMB at least 15 days (in case of ULP), or 30 days (in case of collective bargaining deadlock) before the intended date of strike; provided that in case of union busting, the cooling off period may be dispensed with; c. Notice of conduct of strike vote served on the NCMB at least 24 hours prior to conduct of the strike vote; d. Conduct of strike vote by secret ballot where majority of the union members approve the same; e. Strike vote report submitted to the NCMB which shall be the reckoning point of the 7-day strike ban; f. 7-day strike ban before conduct of strike (Art. 278); 47. Illegal Strike; Effects. a. As to union officers— Officers are liable for resulting damages. Those who knowingly participate in an illegal strike may lose employment by reason thereof. b. As to members of the union— They are civilly liable for personally authorizing or participating in unlawful acts during the strike and they may lose employment by reason thereof. 48. Conclusive Arbitration Clause; Effect of non-compliance. For failing to exhaust all the steps in the grievance machinery and arbitration proceedings provided in the Collective Bargaining Agreement, the notice of strike should have been dismissed by the NLRC and private respondent union ordered to proceed with the grievance and arbitration proceedings (San Miguel Corp. v. NLRC, 1999). 49. Union officers who induce their members not to render overtime work, committing work slowdown, may be dismissed from employment. A slowdown need not be carefully planned and be participated in by a large

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number of workers. The essence of this kind of strike is that the workers do not quit their work but simply reduce the rate of work in order to restrict the output or delay the production of the employer. It has been held that while a cessation of work by the concerted action of a large number of employees may more easily accomplish the object of the work stoppage than if it is by one person, there is, in fact no fundamental difference in the principle involved as far as the number of persons involved is concerned, and thus, if the act is the same, and the purpose to be accomplished is the same, there is a strike, whether one or more than one have ceased to work (Ramirez v. Polyson Industries, 2016). 50. Assumption of Jurisdiction over Labor Dispute by SOLE. Nature of Assumption of Jurisdiction The authority of the SOLE to assume jurisdiction in national interest cases includes and extends to all questions and controversies arising therefrom. The power is plenary and discretionary in nature to enable the SOLE to effectively and efficiently dispose of the primary dispute. This wide latitude of discretion given to the SOLE may not be the subject of an appeal (University of the Immaculate Conception v. Office of the SOLE, 2015). The remedy is Petition for Certiorari under Rule 65 (Philtranco Service Enterprises, Inc. v. PWU-AGLO, 2014). Who may Assume Jurisdiction: a. DOLE Secretary; the DOLE Secretary may likewise certify the labor dispute to the NLRC for compulsory arbitration; and b. President (Art. 278). Conditions for a Valid Exercise of Assumption of Jurisdiction: a. Both parties have requested the SOLE to assume jurisdiction over the labor dispute; or b. After a conference called by the SOLE on the propriety of the issuance of the Assumption or Certification Order, motu proprio or upon request or petition by either party to the labor dispute (D.O. No. 40-H-13, Sec. 1).

manner and means to be used in reaching that end (Chevron PHL, Inc. v. Galit, 2015). 52. Economic Dependence. Generally, courts have relied on the socalled right of control test. However, in certain cases, the control test is not sufficient to give a complete picture of the relationship between the parties, owing to the complexity of such a relationship where several positions have been held by the worker. There are instances when, aside from the employer’s power of control the employee with respect to the means and methods by which the work is to be accomplished, economic realities of the employment relations help provide a comprehensive analysis of the true classification of the individual, whether as employee, independent contractor, corporate officer or some other capacity. Economic Dependence or Economic Reality Test - Refers to whether the worker is dependent on the alleged employer for his continued employment in that line of business. Two-tiered Test: a. The putative employer’s power to control the employee with respect to the means and methods by which the work is to be accomplished; and b. The underlying economic realities of the activity or relationship (Francisco v. NLRC, 2006). 53. Regular Employment. Tests of Regularity: a. Regular employee by nature of work – those performing a particular activity which is necessary or desirable in the usual trade or business of the employer, regardless of their length of service (Art. 295). b. Regular employee by years of service – those who have been performing the job, regardless of the nature thereof, for at least 1 year of service (Art. 295);

POST-EMPLOYMENT 51. Four-fold Test. a. Selection and engagement of the employee; b. Payment of wages; c. Power of dismissal; and d. Power to control the employee’s conduct (Chevron PHL, Inc. v. Galit, 2015). Control Test – Er-Ee Relationship exists when the person for whom the services are performed reserves the right to control not only the end to be achieved, but also the

c.

Note: The term “at least 1-year of service” shall mean service for not less than 12 months, whether continuous or broken, reckoned from the date the employee started working (IRR of the Labor Code, Book III, Rule V, Sec. 3). Regular employee by probationary employment – those allowed to work after the probationary period (Art. 296).

54. Fixed Term Employment. It exists where the employees’ employment contract specifies that the same will last only for a definite period (Brent School Inc. v. Zamora, 1990).

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Guidelines for a Valid Fixed Term Employment: Fixed term employment must meet any of the following guidelines in order that it cannot be said to circumvent security of tenure: a. The fixed period of employment was knowingly and voluntarily agreed upon by the parties without any other circumstances vitiating his consent; or b. It satisfactorily appears that the employer and the employee dealt with each other on more or less equal terms with no moral dominance exercised by the former or the latter (Brent School Inc. v. Zamora, 1990). 55. Probationary Employment. It exists 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 his engagement (IRR of the LABOR CODE, Book VI, Rule I, Sec. 6(d)). Duration General Rule: Probationary employment shall not exceed 6 months from the date the employee started working (Art. 296). Exceptions: a. When it is covered by an apprenticeship agreement stipulating a longer period (Art. 296); b. When the parties to an employment contract agree otherwise; c. When the same is established by company policy; and d. When the same is required by the nature of the work performed by the employee (San Miguel Corp. v. Del Rosario, 2005). 56. Probationary Employee; Security of Tenure. A probationary employee still enjoys limited security of tenure during the period of probation — that is, the employee cannot be terminated except for just or authorized causes, or if he fails to qualify in accordance with reasonable standards prescribed by employer for the acquisition of permanent status (De La Salle Araneta University, Inc. v. Magdurulang, 2017). 57. Floating Status. The “floating status” of an employee should last only for 6 months. When it exceeds such period, he may be considered to have been constructively dismissed from service. Thus, he is entitled to the corresponding benefits for separation (Agro Commercial Security Services Agency, Inc. v. NLRC, 1989).

less than one month shall not be considered as an interruption of the 6-month period (D.O. No. 150-16, Sec. 10.3). 58. Labor-only Contracting. It is an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job or work for a principal, and the elements hereunder are present (D.O. No. 174-17, Sec. 3(h)): a. The contractor or subcontractor does not have: i. Either (1) substantial capital or (2) investments in the form of tools, equipment, machineries, supervision, work premises, among others; and ii. The contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal; OR b. The contractor or subcontractor does not exercise the right to control over the performance of the work of the employee (D.O. No. 174-17, Sec. 5). Note: Substantial Capital – refers to paid-up capital stock/shares of at least P5,000,000.00 in case of corporations, partnerships and cooperatives; in case of single proprietorship, a net worth of at least P5,000,000.00 (D.O. No. 174-17). The law does not require both substantial capital and investment in the form of tools, equipment, machineries, etc. This is clear from the use of the conjunction "or." If the intention was to require the contractor to prove that he has both capital and the requisite investment, then the conjunction "and" should have been used. Effects of Labor-Only Contracting: a. The labor-only contractor will be treated as the agent of the principal; b. The principal becomes the direct employer, and shall be responsible to the employees for all entitlements and benefits under labor laws (Art. 106); and c. Principal and labor-only contractor are solidarily liable for any violation of the Labor Code (Art. 109). 59. In-house Agency. - refers to a contractor which is owned, managed, or controlled directly or indirectly by the principal or one where the principal owns/represents any share of stock, and which operates solely or mainly for the principal (D.O. No. 174-17, Sec. 3(f)).

Note: In the case of security guards, an assignment of the security guard and other private security personnel as a reliever for

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60. Termination by Employer: Just Causes. a. Serious misconduct (work-related misconduct); b. Willful disobedience (order must be known to the employee); c. Gross and habitual neglect of duties; d. Fraud or willful breach of trust; e. Loss of confidence; f. Commission of a crime or offense; and g. Analogous Causes (D.O. No. 147-15, Sec. 5.2). Determination of Disgraceful or Immoral Conduct The determination of whether a conduct is disgraceful or immoral involves a two-step process: a. A consideration of the totality of the circumstances surrounding the conduct; and b. An assessment of the said circumstances vis-à-vis the prevailing norms of conduct, i.e., what the society generally considers moral and respectable. Public and secular morality should determine the prevailing norms of conduct, not religious morality (Leus v. St. Scholastica’s College, 2015). Analogous Causes To be a valid ground for termination, the following must be present: a. There must be an act or omission similar to just causes; and b. The act or omission must be voluntary and/or willful on the part of the employees. Note: No act or omission shall be considered as analogous cause unless expressly specified in the company rules and regulations or policies (D.O. No. 147-15, Sec. 5.2(g)) 61. Termination by Employer: Authorized Causes. a. Automation/Installation of Labor-saving devices; b. Redundancy; c. Retrenchment; d. Closure or cessation of operation of the establishment or undertaking; and e. Disease (D.O. No. 147-15, Sec. 5.3). 62. Retrenchment; Fair and Reasonable Criteria. An employer’s disregard of a full-time employee's seniority and preferred status relative to a part-time employee indicates its resort to an unfair and unreasonable criterion for retrenchment. When termination of employment is occasioned by retrenchment to prevent losses, an employer must declare a reasonable cause or criterion for retrenching an employee. Retrenchment that disregards an employee's record and length

of service is an illegal termination of employment (La Consolacion College of Manila v. Pascua, 2018). 63. Totality of Infractions Doctrine. The totality of infractions or number of violations committed during the period of employment shall be considered in determining the penalty to be imposed on the erring employee. The offenses committed should not be taken singly and separately but in their totality (Alvarez v. Golden Tri Bloc, 2013). 64. Constructive Dismissal. It exists when an act of clear discrimination, insensibility, or disdain on the part of the employer has become so unbearable as to leave an employee with no choice but to forego continued employment, or when there is cessation of work because continued employment is rendered impossible, unreasonable, or unlikely, as an offer involving a demotion in rank and a diminution in pay (Borja v. Miñoza, 2017, Perlas-Bernabe). 65. Due Process in Abandonment: a. First Notice: to apprise the employee of the particular acts or omissions for which his dismissal is sought; and b. Second Notice: to inform him of the Employer’s decision to dismiss him on the ground of abandonment (Kingsize Manufacturing Corp. v. NLRC, 1994). Notices in abandonment cases must be sent to employee’s last known address (Agabon v. NLRC, 2004). 66. Due Process for Termination Due to Just Causes. a. Just and valid cause (Art. 297); b. The employee has an opportunity to be heard and defend himself; and c. Two notices: i. First, statement of the cause for the termination to afford the employee an ample opportunity to be heard and defend himself with the assistance of his representative, if he so desires; it must contain a directive that the employee is given the opportunity to submit his written explanation within the reasonable period of 5 calendar days from the receipt of the notice; and ii. Second, if the employer decides to terminate the services of the employee, the employer must notify him in writing of the decision to dismiss him, stating clearly the reason therefor (IRR of LABOR CODE, Book VI, Sec. 5.1). Note: There is no violation of due process even if no hearing was conducted, where the party was given a chance to explain his side

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of the controversy (Perez v. PT&T Company, 2009). The probationary employee is entitled to procedural due process prior to dismissal from the service. However, unlike the 1st and 2nd grounds, the 3rd ground does not require notice and hearing. Due process of law for this third ground consists of making the reasonable standards expected of the employee during his probationary period known to him at the time of his probationary employment (PH Daily Inquirer, Inc. v. Magtibay Jr., 2007). 67. Disease; Two-notice Rule applies. The employer must furnish the employee two written notices in terminations due to disease, namely: a. The notice to apprise the employee of the ground for which his dismissal is sought; and b. The notice informing the employee of his dismissal, to be issued after the employee has been given reasonable opportunity to answer and to be heard on his defense (Deoferio v. Intel Technology PHL, 2014). 68. Computation of Backwages. a. When reinstatement is ordered - from the time of dismissal until the employee’s actual reinstatement; b. When separation pay is ordered in lieu of reinstatement or reinstatement is waived by the employee - from the time of dismissal until the finality of the decision ordering separation pay; c. When separation pay is ordered after the finality of the decision ordering the reinstatement by reason of a supervening event that makes the award of reinstatement no longer possible - backwages is computed from the time of dismissal until the finality of the decision ordering separation pay (Bani Rural Bank Inc. v. De Guzman, 2013). 69. Retirement. Two Types of Retirement a. Compulsory (at the age of 65); or b. Optional – primarily determined by a CBA or other employment contract or employer’s retirement plan. Note: An employee may optionally retire upon reaching the age of 60 or more, but not beyond 65 years provided that: i. There is no provision on optional retirement in CBA, other employment contract, or employer’s retirement plan; and ii. The employee has served at least 5 years in the establishment (URSUMCO v. Caballeda, 2008).

Part Time Employee is Entitled to Retirement Benefits The Retirement Pay Law shall apply to all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid. They shall include: a. Part-time employees; b. Employees of service and other job contractors; and c. Domestic helpers or persons in the personal service of another (De La Salle Araneta University v. Bernardo, 2017). JURISDICTION AND REMEDIES 70. Motion to Reduce Bond. General Rule: No motion to reduce bond shall be entertained (NLRC RULES, Rule VI, Sec. 6). Exception: Within the period of appeal, a Motion for Reduction of Appeal bond may be made if the following requisites are met: a. A reasonable amount of appeal bond in relation to the monetary award is posted; and b. There exists a meritorious ground for such reduction (NLRC RULES, Rule VI, Sec. 6). Guidelines provided under McBurnie Case a. The filing of a motion to reduce appeal bond shall be entertained by the NLRC subject to the following conditions: (1) there is meritorious ground; and (2) a bond in a reasonable amount is posted; b. For purposes of compliance with condition no. (2), a motion shall be accompanied by the posting of a provisional cash or surety bond equivalent to 10% of the monetary award subject of the appeal, exclusive of damages and attorney's fees; c. Compliance with the foregoing conditions shall suffice to suspend the running o the 10-day reglementary period to perfect an appeal from the labor arbiter's decision to the NLRC; d. The NLRC retains its authority and duty to resolve the motion to reduce bond and determine the final amount of bond that shall be posted by the appellant, still in accordance with the standards of meritorious grounds and reasonable amount; and e. In the event that the NLRC denies the motion to reduce bond, or requires a bond that exceeds the amount of the provisional bond, the appellant shall be given a fresh period of 10 days from notice of the NLRC order within which to perfect the appeal by posting the required appeal bond (McBurnie v. Ganzon, 2013).

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Note: The 10% appeal bond is only provisional. There is no hard and fast rule in determining whether the additional bond is reasonable in relation to the judgment award (NLRC RULES, Rule VI; Sara Lee PHL, Inc. v. Macatlang, 2015). 71. Jurisdiction of the Labor Arbiter: Article 128 v. 129 v. 224. Art. 128 Art. 129 Art. 224 Who Exercises Power Secretary of Regional Labor Labor or his Director or Arbiter duly any duly authorized authorized reprehearing sentative officer of DOLE Nature of Power AdministraAdjudicaAdjudicative – tory power tory power visitorial and on matters enforcement involving power recovery of exercised wage through routine inspections of establishment Existence of Er-Ee Relationship Requires Er-Ee Claim must existence of relationbe arising Er-Ee ship not from relationship necessary employersince it employee should not relations, include a including claim for those of reinstatepersons in ment domestic or household service, except claims for Employees’ Compensation, Social Security, Medicare and Maternity Benefits, regardless of whether accompanied by a claim for reinstatement How Initiated Enforcement Sworn Complaint power is an complaint offshoot of filed by visitorial interested power party

Limitation as to Amount of Claim No limit Not more More than than P5,000 P5,000 Appeal Appeal to Appeal to NLRC Secretary of NLRC, Labor, within within 5 10 calendar calendar days; days Decision may be elevated to the CA through certiorari 72. Jurisdiction of LA. The Labor arbiter shall have original and exclusive jurisdiction to hear and decide the following cases involving all workers, whether agricultural or non-agricultural: a. ULP cases; b. Termination disputes; c. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment; d. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations; e. Cases arising from any violation of Art. 279, including questions involving the legality of strikes and lockouts; f. Except claims for Employees Compensation, Social Security, Medicare, and maternity benefits, all other claims arising from employeremployee relations, including those of persons in domestic or household service, involving an amount exceeding P5,000 regardless of whether accompanied with a claim for reinstatement (Art. 224); g. Wage distortion disputes in unorganized establishments not voluntarily settled by the parties; h. Enforcement of compromise agreements when there is noncompliance by any of the parties pursuant to Article 233 of the Labor Code; i. Monetary claims of Overseas contract workers arising from employer-employee relations as provided by Sec. 10 of RA 8042; j. Other cases as may be provided by law (NLRC RULES, Rule V, Sec. 1); k. Contested cases under the exception clause of Article 128 (b) (E.O. No. 111); and l. Contempt cases committed before the Labor Arbiter (NLRC RULES, Rule IX, Sec. 1). 73. Two-tiered test; intra-corporate dispute. In order to determine whether a dispute constitutes an intra-corporate controversy, the SC considers 2 elements: (a) the status

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or relationship of parties; and (b) the nature of the question that is subject to the controversy. In the absence of any of these factors, the Labor Arbiter, not the RTC, will have jurisdiction (Matling Industrial and Commercial Corp. v. Coros, 2010). 74. Jurisdiction of NLRC. Exclusive and Original Jurisdiction of NLRC The NLRC exercises exclusive and original jurisdiction over the following cases: a. Certified cases – cases certified to it for compulsory arbitration by the SOLE under Article 278 (g) of the Labor Code or the President under Article 279 (a) of the Labor Code; b. Verified petition to annul or modify the order or resolution (including those issued during execution proceedings) of the Labor Arbiter (NLRC RULES, Rule XII, Sec. 1). c. Petition for Injunction in: i. Ordinary labor cases (Art. 225 (e)); ii. Strikes and lockouts (Art. 278); and d. Contempt cases committed before the NLRC (Art. 225). Exclusive Appellate Jurisdiction of NLRC The NLRC exercises exclusive appellate jurisdiction over the following: a. Cases decided by the Regional Offices of the DOLE in the exercise of their adjudicatory functions under Article 129 over monetary claims of workers NOT exceeding P5,000 (Art. 129); b. Cases decided by the Labor Arbiters under the Labor Code (Art. 224 (b)), and under the Migrant Worker’s Act (Sec. 10, R.A. No. 8042); c. Cases decided by the Labor Arbiters on wage distortion problem in non-unionized establishment (Art. 124); and d. Order issued in relation to enforcement power of the Regional Director (Art. 128 (b)). 75. Jurisdiction of BLR. Med-Arbiters The following cases are within the original and exclusive authority of the BLR (Med-Arbiters): a. Intra-union conflicts; b. Inter-union conflicts; and c. Other related labor disputes, grievances or problems arising from or affecting labor-management relations (Art. 232). BLR Director The following cases are within the original and exclusive jurisdiction of the BLR Director: a. Complaints and petitions involving the application or cancellation of registration of federations, national unions, industry unions, trade union centers and their local chapters, affiliates and member

organizations (D.O. 40-03, Rule XIV, Sec. 1, as amended); b. Request for examination of books of accounts of said labor organizations (Art. 289); c. Intra-union disputes involving said labor organizations (Art. 232); and d. Contempt cases (D.O. 40-03, Rule XXIII, Sec. 1, as amended). Appellate Jurisdiction of the BLR Director The BLR Director exercises exclusive appellate jurisdiction over the following cases: 1. All decisions of the Med-Arbiter in: a. Intra-union disputes, and b. Other related labor relations disputes; and 2. All decisions originating from the DOLE Regional Director in the cases falling under their original jurisdiction as enumerated previously (D.O. 40-03, Rule XI, Sec. 15, as amended). 76. Jurisdiction of Voluntary Arbitrators. The VA shall have exclusive and original jurisdiction over the following cases: a. Unresolved grievances arising from the interpretation or implementation of the CBA (Art. 274); b. Unresolved grievances arising from the interpretation or enforcement of company personnel policies (Art. 274); c. Violations of the CBA which are not gross in character (Art. 274); d. Other labor disputes, including unfair labor practices and bargaining deadlocks, upon agreement of the parties (Art. 275); e. National interest cases (Art. 278 (h)); f. Wage distortion issues arising from the application of any wage orders in organized establishments (IRR of R.A. No. 6727, Chapter III, Sec. 7); and g. Unresolved grievances arising from the interpretation and implementation of the productivity incentive programs under R.A. No. 6971 (R.A. No. 6971, Sec. 9). 77. 10-day appeal period for Voluntary Arbitrator’s Decision. Despite Rule 43 providing for a 15-day period to appeal, the SC ruled that the Voluntary Arbitrator's decision must be appealed before the CA within 10 calendar days from receipt of the decision (NYK-FIL Ship Management, Inc. v. Dabu, 2017, Covered Case) Note: The case of Guagua National Colleges v. CA provides that the petition for review under Rule 43 shall be filed within 15 days; the 10-day period under Art. 276 refers to the filing of a motion for reconsideration in relation to the VA’s decision or award. However, this case was decided on Aug. 28, 2018, which is outside the cut-off period for 2019 Bar.

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Prescription of Actions Cause Period of Prescription Money Claims 3 years from accrual of the cause of action (Art. 306) ULP 1 year from accrual of the cause of action (Art. 305) Illegal Dismissal 4 years from accrual of the cause of action (New Imus Lumber v NLRC, April 30, 1993) Simple Illegal 5 years Recruitment Syndicated / Large 20 years Scale Illegal Recruitment Reinstatement 4 years Sexual 3 years Harassment Social Security 10 years (R.A. No. Claims 8282) Violations of SSS 20 years (R.A. 8282, Law Sec. 22 (b)) GSIS Claims 4 years

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