Ssn TBe!,u @o[Ieqe of VLutuLABOR LAW

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Labor StandardsLabor Relations

Social Legislation

aHr $sn FeUs Gollege of Ilb2011 CENTRALIZED BAR OPERATIONS

Social Security System (R.A. 1 161 as amended by R.A.8292........ "142GovernmentServicelnsuranceSystem(R.n. g2g1)................. 14gLimitedPortabilityLaw(R.A.76gg).................Employee's.Compensation and State lnsurance Fund (p.D.626) 155Paternity Leave Act of 1996 (R.A. 3187)............ ............;..... 160Retirement Pay Law (R.A. 7641Amending Art. 287 of LC)........-... 161Anti.dexualHarassmentAct(R.A.7877).......ActsAgainstChildLakior(R.A.9231).................13th Month Pay Law (P.D.851)......... 166Migrant Workers and Overseas Filipino Act of 1995 (R.A. gO42)as amended and further amended by R.A. 1AO2L..... 168Magna Carta for Women (R.A. 9710)....... 172Magna Carta for the Disabled Persons (R.A.9442)................. 174

Bibliog raphy..... ....................r................,.......................... 176

This is the intellectual property of thesan Beda college of Law zall centralized Bar operations.

Unauthorized use and reproduction of this material is prohibited.

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64

LABOR LAWLABOR RELATIONS

TITLE ONE: POLICY AND DEFINITIONS

Labor Relations - the interactions betweenthe employer and employees and theirrepresentatives and the mechanism by whichthe standards and other terms and conditionsof employment are negotiated, adjusted andenforced. (The Labor Code with Commentsand Cases 2007, Azucena, vol. ll, p.10)

Labor Relations Laws - define the status,rights, and duties and the institutionalmechanisms that govern the individual andcollective interactions of employers,employees or their representatives.{Everyone's Labor Code, Azucena,2007, p.4)

Note: Absent an employer-employee relation,there is no labor relation to speak of. lf there isno Er-Ee relationship between the parties,there is no basis for organizing for purposes ofcollective bargaining.

"Labor Relations" may be distinguished from"labor standards" in that the latter is that partof labor law which prescribes the minimumterms and conditions of employment which theemployer is required to grant to its employees.(The Labor Code of the Philippines Annotated2005, Chan, Vol. ll)CHAPTER I. GENERAL PROVISIONS

ART.211: DECLARATION OF POLICY

Collective bargaining process is possible onlywhen there is a labor organization, i.e.1. Labor union', or2. Employee assocrafion.

Labor relations policy under the LaborCode is embodied in Secfion 3, Article Xlllof the 1987 Constitution which guaranteesto all workers their right, among others, to:a. Self-organization;

b. Collectivenegotiations;

bargaining

c. Peaceful and concerted activitiesincluding the right to strike inaccordance with law; andd. Participate in policy and decision-making processes affecting their rightsand benefits as may be provtded bylaw.

Parties to Labor Relations Cases1. Employee's organization;2. Managemenf;3. The public - always to be considered in

dispute between labor and capital, and ithas been held that the rights of thegeneral public are paramount; and

4. The State.Note: Employer and employees are ACTIVEparties while the public and the state arePASSIVE parties. (Foquiz, 2006, p.3)

Principle of Non-Oppression - mandatescapital and labor not to act oppressivelyagainst each other or impair the interest andconvenience of the public. The protection tolabor clause in the Constitution is not designed

EXECUTIVE COMMIfiEE:EZEKIEL JOSHUA VILLENA overall chairperson, MINISTER MOISES DU chairperson for academics, DiOANIVIE JOMARE JUNASAchairperson for hotel operations, MARIE MICAELA 5TA" ANA vice-chairperson for operations, MIKHAIL MAVERICK TUMACDER vice-chairperson for secretariat, JACKIE LOU LAMU6 vice-chairperson for finance, DIANA JEAN TUMON vice.chairperson for edp, JASSENRALPH LEE vice-chairperson for logistics

sUBJECT COilMlfiEE3HAROLD CHRISIIAN TALLEDO subject chair, AYLA HERAZADE SALENDAB assistant subject chair, PINKY VELOSO edp, NEO VALERIO laborstandards, MARK LESTER TAMONDONG labor relations, DONNA FRANCES YLADE social legislation

MEMBERS3jhony Martin Alba, Karlo Dialogo, Vanessa Guinto, Kaye Coleen Lambino, Karlon Pambid, Jose Carlos Torres, Ramayana Saidamen, JoseAngelo David, Kamille Deanne Lagasca, Raynan Larosa

to oppress or

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Arbitration - the submission of a dispute to animpartial person for determination on the basisof evidence and arguments of the parties. Thearbiteds decision or award is enforceable uponthe disputants. This maybe voluntary orcompulsory.

For Art. 211 (9"), see Arf. 255 for morediscussions.

CHAPTER II. DEFINITIONSART.212; DEFINITIONSEmployer1. One who employs the services of others;

one for whom employees work and whopays their wages or salaries (FeatiUniversity v. Bautista, GR No. L-21278December 27, 1966)

2. Any person acting in the interest of anemployer, directly or indirectly. The termdoes not include a labor oiganization orany of its officers and agents, EXCEPT

, when acting as an employer. The merefact that respondent is a labor union doesnot mean it cannot be considered anemployer for persons who work for it.Much less should it be exempted fromlabor laws. (Bautista v. lnciong, GR No. L-52824, March 16, 1988)

Employee - includes: (CED)1. Any person in the employ of an employer;2. Any individual whose work has geased as

a result of or in connection with anycurrent labor dispute or because of anyunfair labor practice if he has not obtainedany other substantially equivalent andregular employmenf

3. One who has been Qismissed from workbut the legality of the dismissal is beingcontested in a forum of appropriatejurisdiction (D.O. No. 4G03, March 15,200s).The term shall not be limited to theemployees of a particular employer unlessthe code explicitly states.

Types of Employees under the Labor Code1. Managerial2. Supervisory3. Rank-and-fileLabor Organization - any union orassociation of employees which exists inwhole or in part for the purpose of collectivebargaining with employers concerning termsand conditions of employment.

Legitimate Labor Organization - any labororganization which is duly registered with

DOLE; the term includes a local/chapterdirectly chartered by a legitimate federation ornational union which has been duly reported tothe Department in accordance with Section 2,Rule Vl, Book V, IRR of LC (See notes underArts. 234 and 242, LCJ.

Company Union - any labor organizationwhose formation, function or administrationhas been assisted by any act defined as ULPunder the Labor Code.

Bargaining Representative - means alegitimate labor organization whether or notemployed by the employer.

Labor Dispute - includes any controversy ormatter concerning:1. Terms or conditions of employment; OR2. Association or representation of persons in

negotiating, fixing, maintaining, changingor arranging the terms and conditions ofemployment.

REGARDLESS of whether the disputantsstand in the proximate relation of employerand employee.

Test: Depends on whether it involves orconcerns terms, conditions of employment, orrepresentation (SMC Employees Union-PTGWA v. Bersamira, GR No. 87700, June1s, 1990).

Even the question of employer-employee (Er-Ee) relationship can be considered a "labordispute".

Types of Labor DisPutes1. Labor Standards Disputes {ComBeWo)

a. Compensation (e.9. underpayment of

of theagent of

65

LABOR tAWLABOR RELATIONS

bargaining unit which is the majorityunion);

c. llargaining disputes (e.9. refusal tobargain (ULP); bargaining deadlock;economic strike or lockout),

d. Qontract administration or personnelpolicy disputes (e.9. noncompliancewith CBA provisions (ULP if grossnon-compliance with economicprovisions); disregard of grievancemachinery; violation of no strike/nolockout agreement); and

e. Employment tenure disputes (e.g.non-regularization of emPloYees;illegal termination; non-issuance ofemployment contract).

Parties to a Dispute1. Primary Parties

a, Employerb. Employeesc. Union2. Secondary Partiesa. Voluntary arbitratorb. Agencies of DOLE (BLR, VAC)c. NLRCd. Secretary ofLabore. Office of the President

Managerial Employee - one who is vestedwith powers or prerogatives to lay down andexecute management policies andlor to hire,transfer, suspend, lay off, recall, discharge,assign or discipline employees.

Supervisory Employees - those who, in theinterest of the employer, effectivelyrecommend such managerial actions if theexercise of such authority is not merelyroutinary or clerical in nature but requiresindependent judgment.

All employees not falling within any of theabove definitions are RANK-AND-FILEEMPLOYEES.

Voluntary Arbitrator (ANCA)1. Any person Accredited by the Board as

such; or2. Any person lamed or designated in theCBA by the parties to act as their

Voluntary Arbitratof or3. One Ghosen with or without the assistanceof the National Conciliation and MediationBoard pursuant to a selection procedureagreed upon in the CBA, or4. Any official that may be Authorized by theSecretary of Labor to act as VoluntaryArbitrator upon the written request andagreement of the parties to a labordispute.

TITLE TWO. NATIONAL LABORRELATIONS COMMISSION

CHAPTER I.coMPoslTroN

CREATION AND

ART.213: NATIONAL LABOR RELATIONSCOMMISSION (as Amendd by R.A. 9347,July 27,2006)NLRC - an administrative body with quasi-judicial fundions and the principal governmentagency that hears and decides labor-management disputes; attached to the DOLEfor program and policy coordination only.

Compositiono 1 Chairman; ando 23 Members.

EIGHT (8) members each, shall be chosenONLY from among the nominees of theworkers and employers organizations,respectively. The Chairman and theSEVEN (7) remaining members shallcome from the public sector, with the latterto be chosen PREFERABLY from amongthe INCUMBENT LABOR ARBITERS,

Upon assumption into office, the membersnominated by the workers and employersorganization shall divest themselves ofany affiliation with, or interest in thefederation or association to which theybelong.

Note: The composition of the NLRC istrisectoral. Tripartism is representation of thethree sectors publio or govemment,employers and the workers

- in policy-making

bodies of the government. Tripartism isobserved in numerous government agencies

Sof

FadmiOn tem basis, to

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other division whose docket allows theadditional workload and such transfer willnot expose litigants to unnecessaryadditional expense.

Division (Eight Divisions Each W,th 3Members)1. Adjudicatory;2. All other powers, functions and duties; and3" Exclusive appellate jurisdiction over cases

within their respective territorialjurisdiction.

Adjudication of Cases (Triple C)'1. The NLRC adjudicates cases by division.

A concurrence of 2 votes is needed for avalid judgment.

(Whenever the required membership in adivision is not complete and theconcurrence of the commissioners toarrive at a judgment or resolution cannotbe obtained, the Chairman shall designatesuch number of additional commissionersfrom the other divisions as may benecessary.)

2. lt shall be mandatory for the division tomeet for purposes of gonsultation.

The conclusion of a division on any casesubmitted to it for decision should be

, reached in consultation before the case isassigned to a member for the writing of theopinion.

3. A Qertification to this effect signed by thepresiding commissioner of the divisionshall be issued (copy attached to therecord of the case and served upon theparties).

Qualifications of the Ghairman and theCommissioners (Art. 21 5l1. Must be a member of the Philippine Ba[2. Must have been engaged in the practice of

law in the Philippines for at least 15 years;3. Must have experience or exposure inhandling labor management relations forat least 5 years; and4. Preferably a resident of the region wherehe is to hold office.

Qualifications of Executive LaborArbiters/Labor Arbiters {Art. 21 q1. Must be members of the Philippine Ba[2. Must have been engaged in the practice of

law in the Philippines for at least 10 years;and

3. Must have experience or exposure inhandling labor management relations forat least 5 years.

Term of Office of the Chairman,Commissioners, and Labot Arbiters(Art. nqThey shall hold otfice durin! good behavioruntil they reach the AGE OF 65 unlessremoved for causes as provided by law orbecome incapacitated to discharge thefunction of his office.

PROVIDED HOWEVER, that the President ofthe Republic of the Philippines may extend theservices of the commissioners and laborarbiters up to the maximum age of 70 yearsupon the recommendation of the commissionen banc.

JurisdictionExclusivehnd Original1 Ceftifled cases - cases certifled to it for

compulsory arbitration by the Secretary ofLabor under Aft. 263 or the Presidentunder Art. 264:

2. lnjunction cases under Afts. 218 and 264;and3. Contempt cases.

Exclusive Appeltate1. Cases decided by Labor Arbiters under

Art. 214b1 of the Labor Code and Sec. 10R.A. 8042 (MigrantWorkers Acf); and

2. Cases decided by the Regional Offices ofDOLE in the exercise of its adjudicatoryfunction under Arf. 129 of the Labor Codeover monetary claims of workersamounting to not more than P 5,000.

Judicial ReviewFindings of facts tribunalaccorded the

initially

courtsdesiredequfactualnumberFuneral

BarangayLabor cases a Barangay

of procedure

areand

*1#il?.'{A

Conciliation since nary

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LABORLAWLABOR RELATIONS

are merely suppletory in character vis-d-vislabor disputes which are primarily governed bylabor laws (Montoya v. Escayo, GR Nos.82211, March 21, 1989).

ART. 214: HEADQUARTERS, BRANCHESAND PROVINCIAL EXTENSION UNITS

The Commission and its first, second, third,fourth, flfth and sixth divisions shall have theirmain offices in METROPOLITAN MANILA,and the seventh and eighth divisions in thecities of CEBU and CAGAYAN DE ORO,respectively.ART. 216: SALARIES, BENEFITS ANDOTHER EMOLUMENTSr The Chairman ahd members of the

Commission shall have the same ran(receive an annual salary equivalent to,and be entitled to the same allowances,retirement and benefits as, those of thePresiding Justice and Associate Justicesof the Court of Appeals, respectively.

. Labor Arbiters shall have the same rank,receive an annual salary equivalent to andbe entitled to the same allowances,retirement and other benefits andprivileges as those of the judges of theregional trial courts.

CHAPTER II. POWERS AND DUTIESART.217: JURISDICTION OF I-ABORARBITERS AND THE COMMISSION

Exclusive and Original Jurisdiction ofLabor ArbitersEXCEPT as otherwise provided under thisCode, the Labor Arbiters shall have originaland exclusive jurisdiction to hear and decide,WITHIN 30 CALENDAR DAYS after thesubmission of the case by the parties fordecision without extension, even in theabsence of stenographic notes, the followingcases involving all workers, whetherag ri cu ltu ral or n on-ag ri cu ltu ral : (UTR-DV-EeO -cDo)1. ULP cases;2. Termination disputes;3. lf accompanied with a claim for

Reinstatement, those that workers fileinvolving wages, rates of pay, hours ofwork and other terms and conditions ofemployment;

4. Claims for actual, moral, exemplary andother forms of Qamages arising from Er-Ee relations;

5. Cases arising from any Violation of Art.264, including questions involving thelegality of strikes and lockouts;6. Except claims for EmploymentCompensation, Social Security, Philhealth

and maternity beneflts, all other claimsarising from. Er-Ee relations, includingthose of persons in domestic or householdservice, involving an amount exceedingP5,000 regardless of whetheraccompanied withreinstatement;

a claim for7. Monetary claims of gverseas contract

workers arising from Er-Ee relations underMigrant Workers Act of 1995;

8. Wage distortion disputes in unorganizedestablishments not voluntarily settled bythe parties pursuant lo RA 6727;

9. Enforcement of gompromise agreementswhen there is non-compliance by any ofthe parties pursuant lo Art. 227 of theLabor Code, as amended, and

10. Qther cases as may be provided by law.

Note: Although the provision speaks ofEXCLUSIVE AND ORIGINAL JURISDICTIONof Labor Arbiters, the cases enumerated mayinstead be submitted to a voluntary arbitratorby agreement of the parties under Art. 262.

The law prefers voluntary over compulsoryarbitration.

Ihe cases that a Labor Arbiter can hear anddecide are employment related. Where no Er-Ee relationship exists between the parties andno issue is involved which may be resolved byreference to the Labor Code, other laborstatutes, or any collective bargainingagreement, it is the Regional Trial Court thathas j urisdiction (Lapand ay Agricult ural Dev't.Corp. v. CA, GR No. 112139, January 31,2000J.

The Labor Arbiter hascontroversies involving

jurisdiction overemployers andis a "reasonableemployees only if !h_pl'p_

causal claim

Jose1e98).

CasesmachiThedisposed referringthe same to

be

CA,

The

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voluntaryand

Sun Gebs @ollege of j[.!tu201 1 CENTRALIZED BAR OPERATIONS

1. Disputes on the interpretation orimplementation of CBA, and

2. Disputes on the interpretation orenforcement of company personnelpolicies.

No Jurisdiction over the Following:1. Foreign governments (JUSMAG-

Philippines v. NLRC, GR No. 108813,December 15, 1994); except when thefunction of the foreign entity partakes ofthe nature of a proprietary activity, itimpliedly divested itself of its sovereignimmunity from suits.2. lnternational agencies (Lasco v.UNRFNRE, GR No. 109095-1091A7,February 23, 1995)',3. lntra-corporate disputes which fall underP.D. 902-A and now fall under thejurisdiction of the regular courts pursuantto the new Securities Regulation Code(Nacpil v. lBC, GR 144767, March 21,2044;4. Executing . money claims againstgovernment (DAR v. NLRC, GR No.104269, November 11, 1993);5. Cases involving GOCCs with originalcharters which are governed by civilservice law, rules-or regulations (Aft. lX-9,Sec,2, No. 1, 1987 Consf-);6. Local water district (Tanjay Water Distridv. Gabaton, GR Nos. 63742 and 84300,April 17, 1989) except where NLRCjurisdiction is invoked (Zamboanga CityWater District v. Buat, GR No. 104389,May 27, 1994);

7. The aggregate money claim does notexceed 5,000 pesos and without claim forreinstatemenl (Rajah Humabon Hotel, lnc.v. Trajano, GR No. 1A0455 September 17,lees),

8. Claim of employee for cash prize underthe lnnovation Program of the company,although arising from employer-employeerelationship, is one requiring application ofgeneral civil law on contracts which iswithin the jurisdiction of the regular courts(San Miguel Corp. v. NLRC, GR No. l-80774, May 31, 1988);9. Cause of action is based on quasi-delict ortort which has no reasonable connectionwith any of the claims enumerated in Art217 oI the Code (Ocheda v. CA, GR Na.85517, October 16, 1992),

10. Complaint arising from violation of atraining agreement (Singapore Airlines v.Pano, GR No. L-47739, June 22, 1983),

11. When the Labor Arbiter is an inconvenientForum under the Doctrine of Forum NonCanveniens (Communication Materials

and Design lnc. vs CA, 260 SCRA 623,[1ee6u.

12. Termination of membership in aCooperative organized under RA No. 6938othenrvise known as fhe Cooperative Codeof the Philippines.

2AO5 NLRC Rules of Procdure on Venue ofFiling Gases1. All cases which Labor Arbiters have

authority to decide may be filed in theRegional Arbitration Branch (RAB) havingjurisdic{ion over the workplace of thecompla ina nUpetiti oner.

Note: WORKPLACE is understood to bethe place or locality where the employee isregularly assigned when the cause ofaction arose. lt shall include the placewhere the employee is supposed to reportback after a temporary detail, asgignment,or travel.

ln case of field employees, as well asambulant or itinerant workers, theirworkplace is:a. Where they are regularly assigned;b. Where they are supposed to regularly

receive their salaries and wages;c. Where they receive their work

instructions from, andd. Report the results of their assignmentto their employers.

Where 2 or more RABs have jurisdictionover the workplace, the first to acquirejurisdi ction shall exclude others,lmproper venue when not objected tobefore filing of position papers shall be

by writtenwhen the

Thepermtsthedifferent124193,

Servide ofln the

deemed waived.Venue may be changedagreement of th"9,,,,p-ffipg-- or

oraandvalid waiver

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LABOR LAWLABOR RELATIONS

judgment rendered by the labor arbiter are nulland void.

Compulsory ArbitrationThe process of settlement of labor disputes bya government agency which has the authorityto investigate and make award binding on allthe parties. Labor arbiter has the authority toconduct compulsory arbitration (PAL v. NIRC,GR No. 55159, December 22, 1989).

Note: The NLRC may conduct compulsoryarbitration ONLY in national interest casesreferred to it by the DOLE Secretary.

ART. 218: POWERS OF THE COMMISSION

Powers of the NLRC (RCl-COl)1. lule-making porver (promulgation of rules

and regulations: a. governing dispositionof cases before any of itsdivisions/regional offices; b. pertaining toits internal functions; c. as may benecessary to carry out the purposes of thisCode )2. Power to issue Qompulsory processes(administer oaths, summon parties, issuesubpoenas);

3. Power to lnvestigate matters and heardisputes withi n its ju risd i ctio n ( adj ud icatorypower original and appellatejurisdiction);Contempt power;Qcular inspection (Art. 219);andPower to issue lnjunctions and restraining 'orders.

Injunction or TROOrders which may require, forbid, or stop thedoing of an act. The power of the NLRC toenjoin or restrain the commission of any or allprohibited or unlawful acts under Afticle 218 ofthe Labor Code can only be exercised in alabor dispute.

Note: A restraining order is not an injunction atall but a writ to compel parties to maintain thematters in controversy in status quo until thequestion of whether or not a temporary orpreliminary injunction ought to be issued maybe determined. (BF Homes v. Reyes, March16, 1971)

Who May lssue1. President (Art. 263[g]);2. Secretary of Labor (Aft. 263[9]); and3. NLRC (Arf. 218);Note: There is no law which empowers LaborArbiters to issue a TRO or lnjunction. Hence,

Labor Arbiters cannot issue a TRO or anlnjunction.

Procedure for the lssuance of RestrainingOrder/ I njunction: (DVH-RFB)1. There must first be a labor g[ispute.2. Filing of a yerified petition.3. Hearing after due and personal notice has

been served, in such manner as theCommission shall direct, to:a. All known persons against whom the

relief is sought; andb. Also to the chief executive or other

public officials of the province or citywithin which the unlawful acts havebeen threatened or committedcharged with the duty to protect thecom plainant's property.

4. fieception at the hearing of thetestimonies of witnesses with opportunityfor cross-examination, in support of theallegations of the complaint made underoath as well as testimony in oppositionthereto.

5. Finding of lact of the Commission to theeffect that :a. Prohibited or unlawful acts have been

threatened and will be committed, orhave been committed and will becontinued unless restrained, but noinjunction or temporary restrainingorder shall be issued on account ofany threat, prohibited or unlanrful act,except against the Persons,association or organization making thethreat or committing the prohibited orunlaMul act or actually authorizing orratifying the sGme after actualknowledge thereof;b. Substantiat and irreparable iniury tothe complainants property will follow;

456

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matter in controversy and which isappropriate to the particularcircumstances of the case. lf theremedy is specifically provided by law,it is presumed to be adequate \PAL v.NLRC, GR No. 120567, March 20,1998)

e. That public officers charged with theduty to protect complainant's propertyare unable or unwilling to furnishadequate protection.

6. Posting of a Qond.lnjunction from NLRC is NOT the ProperRemedy against Employee DismissalThe power of the NLRC to issue an injunctivewrit originates from "any labor dispufe" uponapplication by a party thereof, whichapplication if not granted may cause grave orirreparable damage to any party or renderineffectual any decision in favor of such party.

It is an essential requirement that there mustfirst be a labor dispute between the contendingparties before the labor arbiter. ln the presentcase, there is no labor dispute between thepetitioner and private respondent as there hasyet been no complaint for illegal dismissal filedwith the labor arbiter. (PAL vs. NLRC G.R.No. 120567, March 20, 1998).

Requisites Before TRO May Be lssued ExParte (STU)1. The complainant shall allege that, unless a

TRO is issued without notice, a substantialand irreparable injury to complainant'sproperty will be unavoidable;

2. There is lestimony under oath, sufficient, ifsustained, to justify the Commission inissuing a temporary injunction uponhearing after notice (Affidavit of Merit); and

3. The complainant shall first file anundertaking with adequate security/bondin an amount to be fixed by theCommission suff icient to recompensethose enjoined for any loss, expenses ordamage caused by the improvident orerroneous issuance of such order orinjunction, including all reasonable costs,together with a reasonable attorney's fee,and expense of defense against thegranting of any injunctive relief sought inthe same proceeding and subsequentlydenied by the Commission.

Note: The TRO shall be effective for NOLONGER THAN 20 DAYS upon the posting ofa bond, and shall become void after theexpiration of the 20 day period.

It may be lifted or it may be upgraded to apermanent injunction.

The TRO takes effec't upon its issuance, if abond is posted and not upon receipt of theparties. (A.M. No RTJ-9&1405, Apil 12,2000)

The procedural and substantial requirementsot Art. 218[e] must be strictly complied withbefore an injunction may issue in a labordispute.

ART. 219: OCULAR INSPECTIONThe Chairman, any Commissioner, LaborArbiter or their duly authorized representativesmay, at anytime during working hours:1. Conduct an ocular inspection on any

establishment, building, ship, place orpremises, including any work, material,implement, machinery, appliance or anyobject therein; and

2. Ask any employee, laborer, or any personas the case may be for any information ordate concerning any matter or questionrelative to the object of the investigation.

ART. 221: TECHNICAL RULES NoTBINDING AND PRIOR RESORT TOAMICABLE SETTLEMENT

Technical Rules NOT BindingAdministrative and quasi-judicial bodies likethe NLRC are not bound by technical rules ofprocedure in the adjudication of cases {FordPhils. Salaried Employees Assoc. v. NLRC,GR No. 75347, December 11, 198n.

Rules of evidence are not strictly observed inthe proceedings before the NLRC (Bantolino'et al. v. Coca-Cola Bottlers Phils., Inc., GR No.153660, June 10,

A

(Llora

NLRC1. Motion Kcept on

over thethesubjectjudicata,

venue, resshopping;on and

7t

LABOR LAWLABORRELATIONS

2. Motion for Bill of Particulars;3. Motion for New Trial;4. Petition for Relief from Judgment when

filed with the labor arbiter;5. Petition for Certiorari, Prohibition and

Mandamus;6. Motion to declare respondent in default;and

7. Motion for reconsideration or appeal fromany interlocutory order of the labor arbiter.

Amicable SettlementThe Labor Arbiter shall exert all efforts toarrive at an amicable settlement of a labordispute within its jurisdiction on or before itsRrst hearing or during the mandatoryconferences set for the purpose (The rules forMan datory Con ci li ati on/Medi ati on Conferenceare provided for under Rule V of the 2005NLRC Rules).

Approval of a Compromise Agreement by aLabor ArbiterThe compromise agreement shall be approvedby the Labor Arbiter, if:1. After explaining to the parties, particularly

to the complainants, the terms andconditions and consequences thereof;

2. He is satisfied that they understand theagreement;

3. That the same was entered into freely andvoluntarily by them;

4. And that it is not contrary to law, morals,and public poliiy (lbid).

ART.222: APPEARANCES AND FEES

Appearance of Non{awyers before theCommission

General Rule: ONLY lawyers can appearbefore the NLRC or a Labor Arbiter.

Exceptions: Non-Lawyers can appear ONLYin the following instances:1. He represents himself as party to the

case;2. He represents a legitimate labor

organization which is a party to the caseprovided that he shall be made to presenta verified certification from saidorganization that he is properly authorized;3. He represents a member or members of alegitimate labor organization existing inemployels establishment;

4. He is duly accredited member of any legalaid office duly recognized by the DOJ orIBP;

5. He is the owner or president of acorporation or establishment which is aparty to the case. (Sec. 8, 2005 NLRCRules)

Attorney's Fees1. Art. 111 (Simple Monetary Claim)

2. Att.222

The maximum amount to be given alawyer for his legal assistance.rendered is 10% of the total monetaryaward adjudged the emPloYeesexctuding the award for moral andexemplary damages. To demand morethan this is unlaMul.The attorney's fees may be awardedONLY when the withholding of wagesis declared unlavvful.The basis of the 10olo attorney's fees isthe amount of the wages recovered.Should there be any other monetaryawards given in the proceedings, thesame may not be assessed orsubjected to the 10% attorney's fees.

b.

d.

Attorney's fees for CBA negotiationsand conclusion shall be in the amountagreed upon by the parties to be takenfrom the union funds and not fromindividual union members.This Article prohibits the payment ofattorney's fees only where the same iseffected through forced contributionsfrom the workers from their own fundsas distinguished from union funds.Neither the larryer nor the union itselfmay require the individual workers toassume the obligation to PaY theattorney's fees from their own pockets.Any agreement to the contrary shall benull and void.

Article 111 vs. Article

Prohibits the payment ofattomey's fees onlyProhibits the award olattorney's fees which

exceeds loo/o

{:;{"3t*.I*fu

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Sffi @e!s @ollege ot A&2011 CENTRALIZED BAR OPERATIONS

CHAPTER III. APPEAL TO THE NLRC

ART.223: APPEAL

Grounds for Appeal (FLEP)1. lf the decision, order or award was

secured through Fraud or coercion,including graft and corruption;

2. lf made purely on questions of Law;3. lf serious lrrors in the findings of facts areraised which would cause grave orirreparable damage or injury to theappellant; and

4. lf there is lrima facie evidence of abuse ofdiscretion on the part of the Labor Arbiter.

Periods within which to Appeal1. Decr'sions of the Regional Director - within

5 calendar days from receipt of the order(Att.129, LC - Recovery of wages andsimple money claims of an amount notexceeding P 5,000)

2. Declsions of the Labor Arbiter - within 10calendar d4ys from the receipt of thedecision.

Note: Ihe Code sfafes calendar, not workingdays. Hence, in counting the 10-day period,Saturday, Sunday, and Legal Holidays areINCLUDED. (Vir-Jen Shipping and MarineServlces v. NLRC GR L-58011-12, July 20,i982).lf the 10s or 5s day, as the case may be, fallson a Saturday, Sunday or holiday, the last dayto perfect the appeal shall be the first workingday following such Saturday, Sunday orholiday.

No Motion for Reconsideration is available inquestioning the Labor Arbiter's decision (2005NLRC Ru/es).

Period to Appeal NOT ExtendibleThe perfection of an appeal within thestatutory/reglementary period is not onlyMANDATORY but also JURISDICTIONAL andfarlure to. do so renders the questioneddecision final and executory as to deprive theappellate court of jurisdiction to alter the finaljudgment of the Regional Directors and LaborArbiters (ACDA v. NLRC, GR No. 51607;Volkschelv. NLRC, GR No. L-396ffi, June 28,1980; Aboitiz Shipping Employees Associationv. Trajano, GR No. 112955. September 1,1997).

Requisites for the Perfection of an Appealto the NLRC (VTP-BPC)1. Filing of a yerified memorandum of appeal

containing the grounds, issues raised and

arguments propounded and reliefs soughtwithin the required period of appeal andwith a statement of the date appellantreceived the appealed decision, order orresolution;

2. ln lhree legibly typewritten or printedcopies;

3. Proof of payment of the required appealfee;

4. ln case of monetary award, an appeal bythe employer may be perfected only by theposting of a lond (cash deposit or suretybond) equivalent in amount to themonetary award exclusive of damagesand attorney's fees;

5, Proof of service upon the other parties;and

6. Qertificate' of non-forum shopping andverification.

Note: Where the employer failed to post abond to perfect its appeal, the remedy of theemployee is a motion fo dismiss the appeal'NOT a petition for mandamus.

The bond is sine qua non to the perfection ofappeal from the labor arbiter's monetarydecision (Catubay, et al. v, NLRC, GR No.119289, Aprit 12, 2000)', property bondacceptable (UERM-Memarial Medical Centerv. NLRC, GRNo. 110419, March 3, 1997).

No motion to'reduce bond shall be entertainedexcept on meritorious grounds and only uponthe posting of a bond in a reasonable amountin relation to the monetary award. The merefiling of a motion to reduce bond withoutcomplying with these requisites will not stopthe running of the period to appeal'

insofar ISbondconcerned a

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LABOR LAWLABOR RELATIONS

There is no need for a motion for the issuanceof writ of execution on the reinstatement orderas it is self-executory (Pioneer TexturizingCorp. v. NLRC, GR no. 11ffi51, October 16,1997).

Reinstatement Pending Appeal under Ar1.223 vs. Order of Reinstatement under Arf279.

Options of the Employer in Gomplying withan Order of Reinstatement which islmmediate and Self-Executory1. He can ADMIT the dismissed employee

back to work under the same terms andconditions prevailing prior to his dismissalor 'separation or to a substantiallyequivalent position if the former position isalready fllled up; OR

2. He can REINSTATE the employee merelyin the PAYROLL with payment of theaccrued salaries.

Note: The exercise of one oi tn" foregoingoptions may be compelled under pain ofcontempt and the employer may be made topay the salary of the empoyee instead.

Payroll ReinstatementOne where an employee is paid his monthlysalary without making him perform actublwork. lt applies in termination cases where thelabor court declares the dismissal illegal andorders reinstatement of the employee, but theemployer does not want to actually orphysically reinstate him and instead, at theemployer's option, merely reinstates theemployee in the payroll pending appeal.

Judicial Review RulesNo law allovs an appeal from a decision of theSecretary of Labor, or the NLRC, or of avoluntary arbitrator.

Note: Decisions of Voluntary Arbitrators areappealable to the CA under RULE $ AF THERULES OF COURT in relation to Sec. 9 of BPBlg. 129. Voluntary Arbitrators are to beconsidered as quasi-judicial agencies whosedecisions are appealable to the CA {Luzon

Dev't. Bank v. Associafion of Luzon Devt.Bank, GR No. 120319, October 6, 1995).

1. The way to review NLRC decisions is byspecia/ civil action of ceftiorari, prohibitionor mandamus under Rule 65 of the Rules ofCourt.

Note: A petition for certiorari shall NOTSTAY (or suspend) the execution of theassailed decision of the NLRC UNLESS aTRO is issued by CA or SC (Sec. 10, RuleXl, NLRC Rules, 2ffi5).

2. Jurisdiction belongs to SC and CA, but inline with lhe doctrine on hierarchy of eourts,lhe petition should be initially presented tofhe CA (Sf. Martin's Funeral Home v.NLRC, GR No. 130866, SePtember 16,1988).

3. No motion for reconsideration is allawed forany order, decision or award of a laborarbiter. However, a Motion forReconsideration of a Labor Arbiter'sdecision, award or order which has all theelements of an appeal may be treated asappeal

4. Only one Motion for Reconsideration of thedecision, award or order of the commissionin cases appealed before it is allowed.

Procedure on Cases Originally Filed withthe Labor Arbiter

order of I On the other hand, thereinstatement by the I order of reinstatementLabor Arbiter b I under Art. 279immediately executory | presupposes the a,vardeven pending appeal. lt J thereof is pursuant to ais similar to a return-to- final and executorywork order l.e. to restore I judgment, and not whilethe status quo in the I the case for illegalworkplace for the I dismissal 's pending onmeantime. j appeal.

Appeal to the NLRC Division(lf appeal denied, MR; aPPeal

from NLRC to the Sec. of Laborabolished under P.D. 1391)

Court of Appeals(Certiorari under Rule 65)

Supreme Court(Petition for Review upder Rule 45)

1.

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5. Med-Arbite[ and6. Voluntary Arbitrator or Panel of Arbitrator.When Writ of Execution May Be lssuedThe foregoing persons or entities may, upontheir own initiative or on motion of anyinterested party, issue a writ of execution on ajudgment within 5 years from the date itbecomes final and executory.

After the lapse of the said five year period, thejudgment shall become dormant and may onlybe enforced by an independent action withinthe next five (5) years. (Phil. National railwaysvs. NLRC, G.R. No. 81231, September 19,1e]e)It is settled that once a decision or orderbecomes final and executory, it is removedfrom the power or jurisdiction of the courtwhich rendered it to further alter or amend it.(Schering Employees Labor union vs NLRC,G.R. No. 118586, Sept 25,1998) except:1. When there are clerical errors or mistakes.2. When the amendment or correction is

meant to harmonize it with justice and thefacts.

3. When the same becomes necessary toaccomplish the aims of justice.

4. When there are supervening eventsjustifying the amendment of correction.(Yu vs NLRC, G.R. Nos. 11181011, June16, 1995)

Manner of Execution May Be AppealedFinality of judgment becomes a fact upon thelapse of the reglementary period of appeal andif no appeal is perfected. ln such a situation,the prevailing party is entitled as a matter ofright to a writ of execution.

There is a big difference if, what is sought tobe reviewed is not the decision itself but themanner of its execution. While it is true thatthe decision has become final and executoryand so can no longer be challenged, there isno question either that it must be enforced inaccordance with its terms and conditions. TheNLRC has authority to look into thecorrectness of the execution of the decisionand to consider supervening events that mayatfect such execution (Abbot v. NLRC, 6R No.L-65173, October 27, 1986).

Remedies of a third party whose propertyhas been wrongfully levied to enforce adecision (Cumulative)1. Motion for Exclusion/ Release of the

property wrongifully levied on execution;2. Service by the third party claimant on the

officer making the levy and upon the

judgment creditor of an affidavit of title(Sec. t6, Rute 39,'Rules of Court). This isalso known as Terceria;3. lndependent civil action to recover the titleand possession of the property wrongfullylevied on execution (Sec. 16, Rule 39,Rules of Court) (See Yapangco CottonMtTls vs. CA, et.d., G.R. No. 126322,January 16, 2002)

RTC lnjunction against NLRCGenerally, not available.

HOWEVER, the general rule that no court hasthe power to interfere by injunction withjudgments of another court withconcurrenVcoordinate jurisdiction appliesONLY when no third-party complaint isinvolved (tbid ). Therefore, if the propertyunder levy does not belong to the judgmentdebtor in the NLRC case, it could not bevalidly levied upon by the sheriff' for thesatisfaction of the judgment therein. lf the thirdparty claimant does not involve nor grows outof a labor dispute, a separate action forinjunctive relief against such levy may bemaintained in court. (Co Tuan et. al. v. NLRCand CL|JP, GR No. 117232, April22, 1998).

TITLE THREE. BUREAU OF LABORRELATIONS

ART.226: BUREAU OF LABOR RELATIONSABSORPTION BY NCMB

Pursuant to E.O. 126,the National Conciliationand Mediation Board (NCMB) has absorbedthe conciliation, mediation and voluntaryarbitration functions of the BLR.

The BLR functions, as it now stands, arestands, are

To act on itsof either or both

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LABOR LAWLABOR RELATIONS

2.3.

INTER-union conflicts; andOTHER RELATED Labor RelationsDisputes.

Other Related Labor Relations Disputes(Sec. 2, RuleXl D.O.4e$lShall indude any conflict between a labororgan2ation and the employer or anyindividual, entity, or group that is NOT alabor organization or worker's association.This includes:a. Cancellation of registration of unions

and worke/s associations; andb. A petition for interPleader.

Notrg: E O. 251 OF 19BZ removed from thejurisdiction of the BLR "'all' labor-managementdisputes. The effect ol E.O. 251 is to transferto the NCMB the mediation, conciliation, andarbitration functions of the BLR.

The parties may, by agreement, settle theirdifferences by submitting their case to avoluntary arbitrator ratherthan taking the caseto the BLR.

E.O. 292 or the 1987 Administrative Codeprovides for the cunent functions and authorityof the BLR:

Sec.16. Bureau of Labor Relations -

The BLRshall:1. Set policies, standards, and procedures on

the registration and supervision oflegitimate labor union activities' includingdenial, cancellation, and revocation oflabor union permits;

2. Set policies, standards, and proceduresrelating to collective bargainingagreements, and the examination offinancial records of accounts of labororganizations to determine compliancewith relevant laws,

3. Provide proper orientation to workers ontheir schemes and projects forimprovement of the standards of living ofworkers and their families.

lntra-Union Disputes - refer to any conflictbetween and among union members, includinggrievances arising from any violation of therights and conditions of membership, violationof or disagreement over any provision of theunion's constitution and by-lavrrs, or disputesarising from chartering or affiliation

lnter-Union Disputes - refer to any conflictbetween and among legitimate labororganizations involving representationquestions for purposes of collective bargainingor to any other conflict or dispute between

legitimate labor organizations based on anyviolations of their rights as labor organizations.

Coverage of lnbr/lntra-Union Disputes{Sec. 7, RuleXl, D.O. /rc4311.- Cancellation of registration of a labor

organization filed by its members or byany other labor organization;

2- Conduct of election of union and worker'sassociatio n off icers/nu I lif icatton of electionof union and worke/s association officers;3 AudiUaccounts examination of union orworkeis assoqiation funds;

4. De-registration of CBA5. Validity/invalidity of union affiliation or

disaffiliation;6. Validity/invalidity of acceptancelnon-

acceptance for union membershiP;7. Validity/invalidity of impeachmenV

expulsion of union and worker'sassociation officers;

8. Validity/invalidity of voluntary recognition,9. Opposition to application for union and

CBA registration;10. Violations of or disagreements over any

provision in a union or vYorker'sassociation constitution and byJaws;

11. Disagreements over charteringregistration of labor organizationsCBAs;

12. Violations of the rights and conditions ofunion or workeds association membership;

13. Violations of the rights of legitimate labororganizations, except interpretation ofCBAs; and

14. Such other disputes or conflicts involvingthe rights to self-organization, unionmembership, and collegtive bargaining -a. Between and among legitimate labor

organizations; andb. Between and among members of aunion or worke/s association.

orand

B. lnvolln such

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be sought within the union itself inaccordance with its constitution and by-laws EXCEPT under any of the followingcircumstances:1. Futility of intra-union remedies;2. lmproper expulsion procedure,3. Undue delay in appeal as to constitute

su bstanti al i njustice;4. The action is for damages;5. Lack of jurisdiction of the investigating

body;6. Action of the administrative agency ispatently illegal, arbitrary, andoppressive;7. lssue is purely a question of law;

8. Where the administrative agency hadalready prejudged the case; andL Where the administrative agency waspractically given the opportunity to acton the case but it did not.

Effects of Filing or Pendency of lnter /lntra-Union Dispute and other LaborRelations Disgutes (Sec. 3, Rule X, Do 40-03)1. The rights, relationships and obligations of

the party-litigants against each other andother parties-in-interest prior to theinstitntion of the petition shall continue toremain during the pendency of the petitionand until the date of finality of the decisionrendered therein. Thereafter, the rights,relationships and obligations of the party-litigants against each other and otherparties-in-interest shall be governed by thedecision so ordered.

2. The filing or pendency of any inter/intra-union disputes is not a prejudicial questionto any petition for certification election andshall not be a ground for the dismissal of apetition for certification election orsuspension of proceedings for certificationelection.

Modes of Appeal in lntra/lnter-Union

Flowchart ofMed"Arbiters

Appeal from Decisions of

1[i,l+"?-*: !1lfitP,U

Bureau of Labor Relations - ifthe case originated from theMed-Arbiter/R egional DirectorSec. Of Labor - if the caseoriginated fom the Bureau

Regional Office or to the BLR,where the complaint originated(records are transmitted to theBLR or Sec. withln 24 hoursfrom receipt of thememorandum of appeal)

Med-Arbiter/RegionalDirector

Appeal to BLR or to the Sec.of Labor if originated from

the Bureau(Within 1.0 days from

receipt of the decision)

Appeal to the Secretary of Labor

1. Under oath2. Consist oi a memorandum

of appeal3. Based on either of the

following grounds;a. Grave abuse of

discretionb. Gross violation of the

rules4. With supporting arguments

and evidence

\Afrthin 10 days from receipt ofdecbion

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LABOR LAWLABOR RELATIONS

or grounds under Sec. 1: any legitimateorganization (LLO) member(s) thereofspecially concemed

2. For grounds under Sec. 2: any-party-in-interest

Regional Office that issued its certificate ofregbtration or certificate of creation ofchartered local

- if it involves labor unions with

independent registration, chartered locals,worke/s association, its officers or members.Directly with the Bureau

- if it involves a

Federation/ National Unions/ lndustry Unions,its officers, or members.

ln writing;Verified under oathContains the following averments:a. Name, address and other personal

circumstances of the complainant(s) orpetitioner(s);

b. Name, address and other personalcircumstances of the respondent(s) orperson(s) charged;

c. Nature of the complaint or petition;d. Facts and circumstances surounding thecomplaint or petition;

e. Causes of action or specific violationscommitted;f. A statement that the administrativeremedies provided for in the constifutionand by-laws have been exhausted; orsuch remedies are not readily available tothe complainants or petitioners throughno fauJt of his/their own; or compliancewith such adminstrative remedies doesnot apply to complainants or petitioners.

Reliefs prayed for,Certificate of non-forum shopping; andOther relevant matters.

Summary of Rules on lntraflnter-UnionDisputes

Administrative Functions of the BLR1. Regulation of registration of the labor

unions;2. Keeping of a registry of labor unions;3. Maintenance of a file of CBAs; and4. Maintenance of a file of all settlements or

final decisions of the supreme court, courtof appeals, NLRC and other agencies onlabor disputes.

Cases Where the BLR Has No JurisdictionThose arising from the implementation orinterpretation of Collective BargainingAgreements which shall be subject ofgrievance procedure and/or voluntaryarbitration.

ART. 227: COMPROMISE AGREEMENTS

Compromise Agreement - contract wherebythe parties, by making reciprocal concssions,avoid litigation or put an end to one alreadycommenced.

Substantial Requ irements1. Must be freely entered into;2. Must not be contrary to law morals or

public policY;3. Must be reasonable; and4. Must be approved by the authority before

whom the case is pending (see dlscusslonon Article 221

-

approvalof Labor Arbiterof an amicable sdtlement in a case beforehim)

Formal Requirements1. ln wrrting; and2. Signed in the presence of the regional

director or his dulY authorizedrepresentative. (Sec. 8, Rule ll of theRules on Disposition of Labor SfandardsCases in the Regional Offices)

When May Gompromise Agreements BeEffectedIt may be effected at any stage of theproceedings and even when there is already afinal executory judgment (Art. 2040, NCC).

It cannot be entered into when the finaljudgment is already in the process ofexecution (Jesalva, et al. v. Bautista, GR No.L-1192*-L-19330, March 24, 1959\.

Gompromise Agreements With v. WithoutAssistance of DOLE

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Options When Compromise Agreement lsViolated1. Enforce compromise by writ of execution;

or2. Regard it as rescinded and insist upon

originaldemand.

Requirements of a Valid Quitclaim (VAC)1. The quitclaim must be voluntarily arrivedat by the parties;

2. lt must be with the gssistance of theBureau of Labor Standards, Bureau ofLabor Relations or any representative ofthe DOLE; and3. The gonsideration must be reasonable(required only when entered wlthout theassistance of DOLE).

Note: Dire necessity is not an acceptableground for annulling the releases, especially inthe absence of proof that the employees wereforced to execute them (Veloso v. DOLE, GRNo. 87297, August 5 1991)Waiver of ReinsiatementLike waivers of mongy claims, a waiver ofreinstatement must bb regarded as aPERSONAL RIGHT which must be exercisedpersonally by the workers themselves (Jagand Haggar Jeans and Spottswear Corp. v.NIRC, GRNo. 105710, February23, 1995).

ART. 231: REGISTRY OF UNIONS AND F|LEOF COLLECTIVE AGREEMENT

The CBA is more than a contract; it is highlyimpressed with public interest for it is anessential instrument to promote industrialpeace (TUP v. Laguesma, GR No. 95013,September 21, 1 994).

An Unregistered CBA does not barcertification election (Contract-Bar Rule will notapply in the absence of registration). (Seenotes under Arts. 253, 253-A and 256).

Procedure for Reg istration1. Submission of copies of the CBA to the

Bureau of Labor Relations or the regionaloffices of DOLE within 30 days fromexecution, accompanied by the following:

. a. Verified proof of posting in twoconspicuous places in the place ofwork; andb. Verified proof of ratification by themajority of all the workers in thebargaining unit.2. Action upon the application for registration

within five (5) calendar days from receiptthereof

3. The regional office shall furnish the BLRwith a copy of the CBA within five (5) daysfrom its submission

4. The BLR or regional office shall assessthe employer for every CBA, a registration

. fee of not less than P1,000.00 or anyamount deemed appropriate by theSecretary of Labor.5. lssuance of Certificate of Registration.

Note: Registration of the CBA is not arequisite for its validity.

The certification of the CBA by the BLR is notrequired to put a stamp of validity to suchcontract. Once it is duly entered into andsigned by the parties, a CBA becomeseffective as between the parties regardless ofwhether or not the same has been certified bythe BLR (Libefty Flour Mitts Emptoyees v. LFMlnc., GR Nos. 58768-70, December 29,1989).

ART. 232: PROHIBITION ONCERTIFICATION ELECTION

Contract-Bar Rule - While a valid andregistered CBA is subsisting for a FIXEDPERIOD OF 5 YEARS, the Bureau is notallowed to hold an election contesting themajority status of the incumbent unionEXCEPT during the sixty (60) day-periodimmediately prior to its expiration, whichperiod is called the FREEDOM PERIOD.

Note: ln the absence of such timely notice orfiling of petition, the contract executed duringthe automatic renewal period is a bar tocertification e lection.

There shall be no amendment, alteration, ortermination of any of

YEARtesigned

six (6)

Requisitesparties

have duly

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LABORLAWLABOR RELATIONS

2.3.

4.

5.

It was ratified by the union membership;It is adequate for it contains substantialterms and conditions of employment;It encompasses the employees in theappropriate bargai ni ng unit,It was not prematurely extended, the CBAwas not hastily entered inlo (doctrine ofpremature extension does not bar acertifi cation el ecti on );It is for a definite period;No schism or mass disaffiliation affects thecontracting union during the lifetime of theagreement;

8. The contracting union is not defunct;9. The contracting union is not company-

dominated (see discussians in Arts. 25G^259 Petition for Certification Election).

ART. 233: PRIVILEGED COMMUNICATION

Privileged Communication - any statementof such privacy that the law exempts theperson receiving the information from the dutyto disclose it.

Not Available As Evidencelnformation and statements made atconciliation proceedings shall be treated asprivileged comrnunication and shall not beused as evidence in the Commission.

Conciliators and similar officials may not testifyin any couft or body regarding any matterstaken up at conciliation proceedingsconducted by them.

TITLE FOUR. LABOR ORGANIZATIONS

CHAPTER I. REGISTRATION ANDCANC,ELLATION

ART.234: REQUIREMENTS OFREGISTRATION

Principle of Agency Applied1. Principal - employees2. Agent - locaUchapter3. Agent of agenf

-

federation

Purpose of Formation of Labor Unions: forsecuring fair and just wages and good workingconditions for the laborers; and for theprotection of labor against the unjust exactionsof capital.

Modes of Acquiring Legitimacy for LaborOrganizations (RC)1. $egistration with the BLR (lndependent

Union).2. Qhartering or issuance of a federation or

national union of a charter certificate.

r As now amended by R.A. 9481, Att. 234makes specific reference to the followingorganizations (not merely to anyorganization) which may register as labororganization, to wit:1. Federation

' 2. NationalUnion3. lndustry Union4. Trade Unlon Center5. lndependent Uniono.

7.

Any labor organization in theprivate sector organized forcollective bargaining and for

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Glassification of Labor Organizations1. National Union/Federation - any labororganization with at least 10locals/chapters each of which must be aduly certified or recognized collectivebargaining agent.2. lndustry Union - group of legitimate labororganizations within an identified industry,organized for collective bargaining or fordealing with employers concerning termsand conditions of employment within anindustry or for participating in theformulation of social and employmentpolicies, standards, and programs in suchindustry registered with DOLE.3. Trade Union Center - group of registerednational unions or federations organizedfor the mutual aid and protection of itsmembers and for assisting such membersin collective bargaining or for participatingin the formulation of social andemployment policies, standards, andprograms duly registered with theDepartment..

4. Alliance - aggregation of unions existingin one line of industry or in aconglomerate, a group of franchisees, ageogra.phical area, or an industrial center.5. Company union. - a labor organizationwhich, in whole or in part, is employer-controlled or employer-domi nated.

Requirements for the lssuance of theCertificate of Registration of a NationalFederation, National Union or lndustry orTrade Union Center or an lndependentUnion (As Amended By RA- 9481, June 15,200n1. P 50 registration fee;2. Names of its officers, their addresses, the

principal address of the labor organization,the minutes of the organizational meetingsand the list of the workers who participatedin such meetings;3. ln case the applicant is an independentunion, the names of all its memberscomprising at least 2}o/o of all theemployees in the bargaining unit where itseeks to operate (see Art. 255 fordefinition of bargaining unit);4. lf the applicant union has been inexistence for one or more years, copies ofits annual financial reports; and5. 4 copies of the constitution and by-laws ofthe applicant union, minutes of its adoption.or ratifioation, and the list of the memberswho participated in it.

Note: Creation of a LOCAL CHAPTER doesnot need subscription of at least 20o/o of themembers. Minimum number of members

applicable only to registration of independentunion.

The Labor Code and its implementing rules donot require that the number of membersappearing on the documents in questionshould completely dovetail. For as long as thedocuments and signatures are shown to begenuine and regular and the constitution andby-laws democratically ratified, the union isdeemed to have complied with registrationrequirements. (The Heitage Hotel Manilavs. Pinag-isang galing and lakas ng mgamanggagawa sa Heritage Manila (Piglas-Heritage), G.R. No. 177024, October 30,200e.)

ART. 234-4: CHARTERING AND CREATIONOF A LOCAL CHAPTER {new provisioninserted by R.A.94811

A duly registered federation or natiohal unionmay directly create a local chapter BYISSUING A CHARTER CERTIFICATEindicating the establishment of the localchapter. The chapter shall acquire legalpersonality ONLY for purposes of filing apetition for certification election from the date itwas issued a charter certificate.

Note: The chapter shall be entitled to all otherrights and privileges of a legitimate labororganization only upon fhe submission of thefollowing documents in addition to its chaftercertificate.1. Names of the chapter's officers, their

addresses, and the principal office of thechapter;

2. Chapter's constitution and by-laws;3. PROVIDED, that where the chapte/sconstitution and byJaws are the same asthat of the federatithis fact

tions

81

LABOR LAWLABOR RELATIONS

offices, but shall be processed by theBureau.

Note: A labor organization may be organizedunder the Corporation Law as a non-stockcorporation and issued a certificate ofincorporation by the SEC. But suchincorporation has only the effect of giving to itjuridical personality before regular courts ofjustice. Suctr incorporation does not grant theright and privileges of a legitimate labororganization.

Ministerial Duty of the BLR Gompellable byMandamusTo review the application for registration andnot the issuance of a Certificate ofRegistration.

After a labor organization had filed thenecessary papers and documents forregistration, it becomes mandatory for the BLRto check if the requirements under Afticle 234have been sedulously complied with. ll itsapplication for registration is vitiated byfalsification and serious irregularities,especially those appearing on the face of theepplication and the supporting documents, alabor organization - should be deniedrecognition as a legitimate labor organization(Progressive Development Corporation-PizzaHut v. Laguesma, et. al, GR No. 115077, April18, 1997).

Purpose of RegistrationRegistration with the 6LR is the operative actthat gives rights to a labor organization.1. lt is the fact of being registered with the

DOLE that makes a labor organizationlegitimate in the sense that it is clothedwith legal personality to claimrepresentational and bargaining rightsenumerated in Afticle 242 or to strike or

' picket under Nticle 263.2. The requirement of registration is nof a

curtailment of the ight fo associafion. lt ismerely a condition sine qua non for theacquisition of legal personality by labororganizations, associations or unions andthe possession of the rights and privilegesgranted by law to labor organizations.3. tt is a valid exercise of police power sincethe activities in which labor organizations,associations, or unions of workers areengaged affect public interest, whlchshould be protected (PAFLU v. Sec. ofLabor, GR L-2228, February 27, 1969).

Federation - any labor organization with atleast 10 localJchapters or affiliates each ofwhich must be duly certified or recognized as

the sole and exclusive collective bargainingagent of the employer they represent.

Requirements Before a Federation Gan Belssued a Certificate of RegistrationAside from the application, which must beaccompanied with the requirements forregistration of a labor registration, theapplication should also be accompanied by thefollowing:1. PROOF of affiliation of at least 10 locals or

chapters, each of which must be a dulyrecognized sole and exclusive collectivebargaining agent in the establishment orindustry in which it operates, supportingthe registration of such applicantfederation or national union;

2. RESOLUTTON of affiliation of at least ten(10) legitimate labor organization, whetherindependent unions or chartered localseach of which must be duly certified or arecognized bargaining agent in theestablishment where it seeks to operate;and

3. NAMES AND ADDRESSES Of thccompanies where the affiliates operateand the list of all the members in eachcompany involved.

Unions at Enterprise LevelA labor union at enterprise level may becreated either by:1. lndependent registration2. Chartering

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Charter certificateissued by federationor national union isfiled with theRegional Office orBLR within 30 daYsafter the issuance ofthe chartercertificate.

Application forregistration isfiled with and willbe acted upon bYthe DOLERegional Off'aewhere theapplicant'sprincipal's officeis located.

Affiliate1. An independently rbgistered union that

entered into an agreement of affiliationwith a federation or national union.

2. Also refers to a chartered local whichapplied for and was granted anindependent registration but did notdisafflliate from its mother federation ornational union.

Affiliation of Local Union with a FederationThe procedure of affiliation would depend onwhether the union is independently registeredor not.

immediately preceding the expiration of theCBA.

Exception: DISAFFILIATION BY MAJORIry'Even before the onset of the freedom period'disaffiliation may still be carried out, but suchdisaffiliation must be effected by a majority ofthe union members in the bargaining unit.

This happens when there is a substantial shiftin allegiance on the part of the majority of themembers of the union. ln such a case,however, the CBA continues to bind themembers of the new or disatfiliated andindependent union up to the CBA's expirationOate. A consent election to determine theunion which shall administer the CBA maybeconducted.

LimitationDisaffiliation should be in accordance with therules and procedures stated in the constitt'fiionand by-laws of the federation.

A prohibition to disaffiliate in the Federation'sconstitution or by-laws is valid - intended forits own protection.

Ghartered Local - created by a federation ornational union through issuance of a charter'

Revocation gf Charter by the Federation -by serving the local/chapter a vetified notice ofr&ocatioi, copy furnished the Bureau on theground of disloyalty or such other grounds asiray Oe specified in its constitution or by-laws'

The revocation shall divest the local chapter ofits legal personality upon receipt of the noticeby th-e Bure"u, unless in the meantime ,thelocal chapter has acquired indeperdentregistration (Sec. 5- of the IRR of

fdivest

localsreg

ln theallowedfailingstatus(6)

Art.235:The Bureau for

from filing.

Requirements of AffiliationBy D.o. n-B)1. Report of affiliat-ion of

registered labor union;2. Attachments:

(As AmendedindependentlY

a. Resolution of the labor union's boardof direc'tors approving the affiliation;

.b. Of the general membership meetingapproving the affiliatiori,

c. The total number of memberscomPrising the labor union and thenames of members who aPProved theatfiliation;

d. The certificate of afflliation issued bythe federation in favor of theindependently registered labor union;and

e. Written notice to the emPloYerconcerned if the affiliating union is the

.

incumbent bargaining agent.

Note: Supervisor's union and the rank and fileunion operating within the same establishmentmay join the same federation or nationalunion. (Art. 245 amended by R.A. 9481)

DisaffiliationWhen affiliated, a local union may disaffiliatefrom the federation.

When to DisaffiliateGeneral Rule: A labor union may disaffiliatefrom the mother union to forrn an independentunion only during the 60-day freedom period

registration within

83

LABOR LAWLABOR RELATIONS

All requisite documents and papers shall beunder oath by the secretary or the treasurer ofthe organization, as the case maybe, andattested to by its president.

Reason for 30day period: The thirty-dayperiod in Aft 235 ensures that any action takenby the BLR is made in consonance with themandate of the Labor Code, which specificallyrequires that the basis for the issuance of acertificate of registration should be compliancewith the requirements for recognition underAtt. 234. (Progressive DevelopmentCorporatien-Pizza Hut vs Laguesma, G.R. No.115077, Apfl 18, 1997.)

Reason for requiring certification underoath: To ensure that the labor organizationwith which an employer is dealing is a bona-fide organization.

Mandamus, not Certiorari, is Properremedy. The proper remedy against refusal toregister a labor organization which complieswith all the requirements is mandamus and notcertiorari. Certiorari is not the proper remedysince the approval of application forregistration is not a judicial function.

ART.236: DENIAL OF REGISTRATION

DecisionDecision of the Regional Office or the Bureaudenying the application for registration shallbe:1. ln writing;2. Stating in clear terms the reason for the

decision; and3. Applicant union must be furnished a copyof said decision

AppealDecisions of the Regional Otfice shall beappealable to the BLR and CA. The BLR'sdecisions on cases appealed from RegionalDirector are final and not appealable to theSecretary of Labor.

Decisions of the BLR denying the registrationof a labor organization (federation or nationalunion) is appealable to the Secretary of Laborthe within 10 calendar days from receipt of thedecision, on grounds of:1. Grave abuse of discretion; or2. Gross incompetence.Decision of Secretary of Labor appealable toCourt of Appeals.

Registration of lndependent Labor UnionFiled With

Registration of Federation or NationalUnion Filed With

-R t-Regional office where

union operates(Processed by LaborRelations Division)

Bureau of Labor Retations(lf denied by Regional

Director)

-_---Decision of BLRappealable to COURT of

APPEALS

Bureau of LaborRelations or Regional

Office(But processed by

Bureau)

Secretary of Labor(lf BLR director

denies)

Decision of Secretaryappealable to COURT

of APPEALS

84

Ssn Eets @ollege of ?tab20T 1 CENTRALIZED BAR OPERATIONS

of Rules

By application of the unionfederation for the issuance of a chartercertificate to be submitted to the Bureauaccompanied by the following:1. Copies of its constitution and by-laws.2. Statement of the set of offcers and

books of accounts, all of which mustbe certified by theSecretary/Treasurer and atested toby the President. ln such case, theunion becomes a local chapter of theFederation.

Would not afhct its beinq alabor organization and therefore it wouldcontinue to have legal personalrty and topossess all the rights and privileges of alegiti mate labor organization

pon severance, it would cease to be alegitimate labor organization and wouldno longer have legal personality and therights and privileges granted by law tolegitimate organization, unless the localchapter is covered by a duly registeredcollective bargaining agreement. ln thelatter case, fte local or chapter will notlose its legal personality until theexpiration of the CBA After the CBAexpires it will lose its legal personalityunless it registers as an independentunion.

local chapter will not lose its personalityuntil the expiration of the CBA. After theCBA expires the local union loses its

unless it reoisters anew

valid as the labor organization cancontinue administering the CBA

dues and not the federation from which thelabor organization dbaffiliated.

collected as there would no longer beany labor union that is allowed to collectsuch union dues from the employees.

Note: Follow the principle of agencybetween federation and local.Principal - employeesAgent - locallchapter

Modes of AppealDenial or Cancellation by.1. Transmit records within 24 hours

receipt of Memo of Appeal2. BUREAU decides within 20 daysreceipt of records3. COURT OF APPEALS- Rule 65

ART. 238:REGISTRATION

CANCELLATION OF

from

from m

mate

hereinto seekin the

Bureau1. Transmit records within 24 hours from

receipt of Memo of appeal2. SEC. OF DOLE decides within 20 daysfrom receipt of records3. COURT OF APPEALS - Rule 65

Note: Appeal by memo of appeal within 10days from receipt of notice.

Grounds1. Grave abuse of discretion2. Violation of rules as amended

heaSPER.A.

ART.CAN

2. ln case

norfor

AIregisprocshall

1.

shall restrijust andappropriate

ies

8s

LABORLAWLABOR RELATIONS

sassociation

Effect of Cancellatioh of Registration in theCourse of ProceedingsWhere a labor union is a party in a proceedingand later it loses its registration permit in thecourse or during the pendency of the case,such union may continue as a party withoutneed of substitution of parties, subjecthowever to the understanding that whateverdecision may be rendered therein will bebinding only upon those members of the unionwho have not signified their desire to withdrawfrom the case before its'trial and decision onthe merits

(Principle of Agency applied-the employeesare the principals, and the labor organization ismerely an agent of the former, consequently,the cancellation of the union's registrationwould not deprive the consenting member-employees of their right to continue fhe caseasthey are consideredas fhe pincipals).

ART.239: GROUNDS FOR CANCELLATIONOF UNION REGISTRATION (as amended byR.A.94811

Grounds:1. Misrepresentation, false statement or

fraud in connection with the adoption orratification of the constitution and by-lars

2. Or amendments thereto, the minutes ofratification, and the list of members whotook part in the ratification;

3. Misrepresentation, false statements orfraud in connection with the election ofofficers, minutes of the election of officers,and the list of voters; and

4. Voluntary dissolution'by the members.Note: Failure to submit reportorialrequirements is no longer a ground forcancel!ation but shall subject the erring officersor members to suspension, expulsion frommembership, or any appropriate penalty. (Art242-A, new provision inserted by R-A. 9481)

ART. 239-A: VOLUNTARY CANCELLAT]ONOF REGISTRATION (New Provisioninserted by R.A.94811

The registration of a legitimate labororganization may be cancelled by theorganization itself PROVI DED:1. At least V3 of its general membership

vofes, in a meeting duly called for thatpurpose to dissolve the organization;

2. An application to cancel registration issubmitted by the board of the organization,attested to by the president thereof.

Note: A pronouncem"nt ""

to the illegality ofthe strike is not within the meaning ol Art. 239of the Code, which provides for the groundsfor cancellation of union registration.

Director whohas jurMictionover the placewhererespondentprincipallyoperates (30days todecide).

Any party-in-interest, ifground is:1. Failure to

complywith any oftherequirements underArts. 2U,237 and238, LC.

2. Violationof anyprovisionunder Arf.239, LC.

Director (30 | members ofdays to decide) j the labor

organizationconcerned ifgrounds areactionsinvolvingviolations ofAft,241,subject to the30% rule.

Trade unioncenters

86

$ur GeDa @olltge of ltsb2011 CENTRALIZED BAR OPERATIONS

b. The collective bargaining agreement,and labor laws.3. Rights Over gqoney Matters - the rights of

the members:a. Against imposition of excessive fees;b. Right against unauthorized collection

of contributions or unauthorizeddisbursements;

c. To require adequate records ofincome and expenses;

d. To access financial records;e. To vote on officers' compensation,f. To vote op special assessment,g. To be deducted a special assessment

only with the membeis writtenauthorization.

4. Political right - the right to vote and bevoted for, subject to lawful provisions onqualifications and disqualifications.

Note: Any violation of the above rights andconditions of membership shall be a groundfor cancellation of union registration orexpulsion of an officer from office, whichever isappropriate. At least 30% of all ihe membersof the union or any member or membersspecifically c-oncerned may report suchviolation to the Bureau.

Union MembershipAny employee, whether employed for adefinite period or not, shall, beginning on hisfirst day of service, be considered anemployee for purposes of unlon membership.(Afi.277)Note: The relationship of the union andmembers is governed by their mutualagreement, the terms and conditions of whichare set forth in the union constitution and bylaws and binding on the members as well agthe organization itself. (Poquiz, 2006, quotingAng Malayang Manggagawa ng Ang TibayEnterprises, et al. v. Ang Tibay, et al., GR No.L-8259, December 23, 1957).

Who Are Prohibited From BecomingMembers/Officers of a Labor Organization(See nofes under Art. 243 on persons who arenot granted the right to self-organization)1. Non-employees (Art. 241[c]);2. Subversives or those engaged in

subversive activities (Art. 241 [eI ; and3. Persons who have been convicted of acrime involving moral turpitude shall not beeligible for election as union officer or forappointment to any position in the union(Att. 241tfil.

Note: ln general, a union is free to select itsown members, and no person has an absoluteright to membership in a union.

Who are entitled to vote:Only members of the union have the eligitrilityto take part in the election of union officers.Eligibility to vote,may be determined throughthe use of the applicable payroll period and thestatus of the employees during the applicableperio.d. This pertains to the payroll of themonth next preceding the labor dispute, incase of regular employees, and the payrollperiod at or near the peak of operation, in caseof employees in seasonal industries. (Tancinovs Pura Ferrer-Calleja, G.R. No. 78131, Jan.20, 1988).

Limitations (See nofes on union securityarrange,nents under Art. 2/r8)1. The labor organization cannot compel

employees to become members of theirlabor organization if they are alreadymember of a RIVAL UNION.

2. The persons mentioned in Art. 241[e](SUBVFRS/yES) of the Labor Code areprohibited from becoming a member of alabor organization.

3. The members of RELIGIOUSORGANIZATION whose religion forbidsmembership in labor organization couldnot be compelled into union membership.

Levy of Special Assessments orExtraordinary Fees (Art. 241 [NilRequirements: (RAMM)1. There must be a written Resolution;2. The resolution must have been Approved

by a majority of allthe members; and3. The approval must be at a general

Membership meeting duly called for that

il be att#b&d'"tq rhvjlfh'trr

requ(

from anGheck

87

LABORLAWLABOR RELATIONS

amounts due to the union for fees, fines orassessments.

Nature and PurPose of Check-OffUnion dues are the lifeblood of the union' Allunions are authorized to collect reasonablemembership fees, union dues, assessmentsand fines and other contributions for laboreducation and research, 'mutual death andhospitalization benefits, welfare fund, strikefund and credit and cooperative undertakings(Ar1.277 [a])Requirements With Regard to Check-Offs(Art.241[ol)General Rule: NO special assessment,attorney's fees, registration fees or any otherextraordinary fees may be checked off fromany amount due an employee without anindividuat written authorization duly signed bythe employee.

The authorization should specifically state the:1. Amount; and2. Purpose and the beneficiary of the

deduction.

Exceptions:1. For mandatory aetivities provided under

the Code; and2. When non-members of the union avail of

the benefits of the CBA:a. Said non-members may be assessed

union dues equivalent to that paid bymembers;b. Only by a board resolution approvedby majority of the members in ageneral meeting called for thepurpose.

Note: The individual written authorization dulysigned by the employee is an additionalrequirement (to RAM) in order that a specialassessment may be validly checked-off. lncase of check-off another requisite isnecessary in addition to the requirements forspecial assessment, enumerated above andthis is, individual written authorization forcheck-off duly signed by the employeeconcerned. (Eduardo J. Mariho, Jr. d al. vs.Gil Y. Gamilla, et al., G.R. No. 149763, July 7,zoae.)Jurisdiction over Check-Off DisputesBeirg an intra-union conflict, the RegionalDirector of DOLE has jurisdiction over checkoff d-sp:tes.

Fees)Not necessary:1. formandatoryactivitiesprovidedunder theCode; and2. whennon-members ofthe unionavail of thebenefits ofthe CBA.Said non-membersmay. beassessedagency feesequivalentto that paidby membersonly by aBoardResolutionapproved bya majority ofthemembers ina generalmeeting

Requ1

; andCBA.

2.3.

He is

No exception;writtenresolution ismandatory atall instances.

88

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$sx Gell @illege ot Le2011 CENTRALIZED BAR OPERATIONS

Members of a union forthe payment of uniondues

Non-members of thebargaining agent (union)for the enjoyment of thebenefits under the CBA

May not be deductedfrom the salaries of theunion members withoutthe written consent ofthe workers affected

May be deducted fromthe salary of employeeswithout their writtenconsent

Note: lndividual written authorization is notnecessary for the collection of agency fees.

Note: Agency fee cannot be imposed onemployees already in the service and aremembers of another union. lf a closed shopagreement cannot be applied to them, neithermay an agencyTee, as a lesser form of unionsecurity, be imposed to them. Payment bynon-union members of agency fees does notamount to an unjust enrichment basicallybecause the purpose of such dues is to avoiddiscrimination between union and non-unionmembers (NABAILU y. San Miguel Brewerylnc., GR No. 18170, August 31, 1963).

Employee-Members of another Union NOTGonsidered Free RidersWhen the union bids to be the bargainingagent, it voluntarily assumes the responsibilityof representing all employees in theappropriate bargaining unit.

CHAPTER III. RIGHT.s OF LEGITIMATELABOR ORGANIZATIONS

ART. 242 RIGHTS OF LEGITIMATE LABORORGANIZATIONS

Rights of A Legitimate l.abor Organization(USERFOE)1. lndertake activities for benefit of

members;$ue and be sued;lxclusive representative of all employees;Represent union members;furnished by employers of auditedfinancial statements;Qwn properties; andExempted from taxes.

ART. 242-4: REPORTORIALREQUI REMENTS (New Provisi on in *rtedby R.A.94811

Reportorial requlrements to be submitted bythe legitimate labor organization:1. Constitution and by-laws, or amendments

thereto, minutes of ratification, and the listof members who took part in theratification of the constitution and by-lawswithin 30 days from adoption or ratificationof the constitution and by-laws 'oramendments the'reto;

2. List of officers, minutes of the election ofofficers, and list of voters within 30 daysfrom election;

3. Annual financial report within 30 days afterthe close of every flscal year; and

4. List of members at least once a year orwhenever required by the Bureau.

Note: Failure to compy with thi: above-mentioned requirements shall nof be a groundfor canettation of union registration but shallsubject the erring officers or members tosuspension, expulsion from membership, orany appropriate penalty. (As insefted by Sec.7, R.A.9481)TITLE FIVE. COVERAGE

ART. 243: COVERAGE AND EMPLOYEES'RIGHT TO SELF-ORGANIZATION

Extent of the Right to Self-Organization1. To form, join and assist labor

organizations for the purpose of collectivebargaining through representatives of theirown choosing; and

2. To engage in lawful concerted activities forthe same purpose or for their mutual aidand protection. (Art. 246)

2.3.4.5.

6.7.

89

LABOR LAWLABOR RELATIONS

Pqsn{Employees Eligible to Join a LaborOrganization for Purposes of CollectiveBargaining1. All persons employed in gommercial,

lndustrial and ggricultural (ClA)enterprises, including employees ofGovernment-owned or controlledcorporation without original chartersestablished under the Corporation Codeand

2. ln geligious, gharitable, ggedical orgducational (RCME) institutions whetheroperating for profit or not.

Persons/Employees eligible to ioin a labororganization for mutual aid and protection:(ArRSrW)1. Ambulant; (Walking or Mobile Workers)2. lntermittent (lrregular workers)3. $ural;4. $elf-employed people5. ltinerant workers (Working for a short time

in various p/aces.); and6. Workers without any definite employers.Person{Employees wha are NOT granted theri g ht to self-o rg an i zafion; ( H EMAC ENGA)1. High-level or managerial government

employees (Sec, 3; E.O- 180)',2. Employees of international organizations

with immunities {ICMC v. Calleja, GR No.85750, September 28, 1990)',3. Managerial employeesa. Whose functions are normally

considered as policy-making ormanagerial:

b. Whose duties are of a highlyconfidential or highly technical innature (Aft.212, LC);4. Members of the grmed Forces of the

Philippines, including police officers,policemen, firemen and jail guards (Sec. 4,E.O. 180);

5. Qonfidential employees (Metrolablndusties Inc. v. Confesor, GR No.108855, February 28, 1996|;6. Employees of cooperatives who are at thesame time its members (Benguet Elec.Coop. v, Ferrer-Calleja, GR No. 79A25,December 29, 1989), However, they mayform a workeds association (NEECOEmployees' Assoc. v. NLRC, GR No.116066, January 24, 2000),

7. lon-Employees (Rosarlo Bros. v. Ople,GR No. L-53590, July 31, 1984)

8. Qovernment Employees, includingGovernment-owned and controlledcorporations wlfh original charter (Arizalav. CA. 189 S?RA 5U)

9. {liens without valid working permits; orAliens with valid working permits but are

nationals of a country which do not grantFilipinos to exercise the right of self-organization and to join or assist labororganizations. (Article 269, Labor Code:Department Order No. I [1997], Rule 11,Sec.2.l

Eligibility of Foreigners to Form LaborOrganizationAliens working in the country with valid permitsissued by DOLE, may exercise the right toself-organization and join or assist labororganizations of their own choosing forpurposes of collective bargaining; provided,that said aliens are nationals of a countrywhich grants the same or similar rights toFilipino workers. (Art. 269) This embodies thePRINCIPLE OF RECIPROCIry.

Religious ObjectorsThe rights of the members of the lglesia niKrlsfo sect not to join a labor union for beingcontrary to their religious beliefs does not barmernbers of that sect from forming their ownunion. The recognition of the tenets of thatsect should not infringe on the basic right toself organization granted by the Constitution toworkers regardless of religious affiliation.(Kapatiran v. Calleja, GR No. 82914, June 20,1988)

ln fact, they can vote for "No-Union" in acertification election in the exercise of theirright to self-organization. (Reyes v. Trajano,GR No. U433, June 2, 1992)

ART.244: RIGHTS OF EMPLOYEES IN THEPUBLIC SERVICE

governedCode can

with the

90

San FeN @ollege ot{.eb2011 CENTRALIZED BAR OPERATIONS

they can negotiate(through collectivenegotiation agreementsor MOA) with thegovemment on thoseterms and conditions ofemployment which arenot fixed by law. Thus,they have limitedhraroainino riohts-

the terms andconditions ofemployment. Thus, theYhave unlimitedbargaining rights.

Can only form, join orassist labororganization forpurposes not contraryto law

Can form, join, or assistlabor organization forpurposes ofCBA etc.

Forming, Joining, or Assisting Employee'sOrganizationGeneral Rule: ALL government employeescan form, join or assist emPloYees'organizations of their own choosing for thefurtherance and protection of their lnferesfs.They can also form labor-managementcommittees, work councils and other forms ofworkers' participation schemes to achieve thesame objectives (Sec. 1, E.O. 180).

I

Exceptions:1. High-level employees whose functions are

normally considered as policy-making ormanagerial or whose duties are of a highlyconfidential nature (Sec. 3, E.O. 180); and

2. Members of the Armed Forces of thePhilippines, including police officers,policemen, firemen and jailguards (Sec- 4,E.O. 180)

Note: Employees of government corporationsincorporated under the Corporation Code andregistered with SEC are governed by theLabor Code not by E O. 180. They are allowedto organize for:1. They are not involved in public service;

and2. Terms of employment are not flxed by law'Protection of the Right to Organize1. Government employees shall not be

discriminated against by reason of theirmembership in employees' organizationsor participation in the normal activities oftheirorganization (Sec. 5, E.O. 180)'

2. Their employrnent shall not be subject tothe condition that they shall not join orshall relinquish their membership in theemployees' organizations U bid-).3 Government authorities shall not interferein the establishment, functioning oradministration of government employees'org