labor relations final exam reviewer

7/23/2019 Labor Relations Final Exam Reviewer

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LABOR RELATIONS LAW

1. Post-employment Ban (non-

involvement provision)

2. Right to impose post-

employment prohibitions: The

employer, in the exercise of its

prerogti!e, my insist on n

greement "ith the employee for

certin prohi#itions to t$e e%ect

fter termintion of their employer&

employee reltionship.

3. I.e. Non-compete or non-

involvement clause; forfeiture-for-

compensation clause or

compensation-for-competition

clause; garden-leave clause;

condentiality and non-disclosure

clause; non-solicitation clause; non-

recruitment or anti-piracy clause;

inventions assignment clause

(intellectual property clause)

'. Non-compete or non-

involvement clause: Freedom

to contract: The employer n(

employee re free to stip)lte in n

employment contrct prohi#iting

the employee "ithin certin

perio( from n( fter the

termintion of his employment,

from* (1) strting similr

#)siness, profession or tr(e+ or

() "or$ing in n entity tht is

engge( in similr #)siness tht

might compete "ith the employer.

Purpose: to pre!ent the possi#ility

tht )pon n employees

termintion or resigntion, he

might strt #)siness or "or$ for

competitor "ith the f)ll competiti!e(!ntge of $no"ing n(

exploiting con-(entil n(

sensiti!e informtion, tr(e

secrets, mr$eting plns etc.,

"hich he c)ire( n( gine( from

his former employment. !ontracts

"hich prohibit an employee

#rom engaging in business in

competition "ith the employer

are not necessarily void #or

being in restraint o# trade. e.g.

/0o!ennt Not to 0ompete1 0N03

or /Non&In!ol!ement 4ro!ision1cl)se.

5. Unreasonable when

6. 7err88ini !s. 9sell & It "s

)nreson#le restrint of tr(e

th)s ginst p)#lic policy "hen

employee "s prohi#ite( from

engging in ny #)siness or

occ)ption in the 4hilippines for

perio( of 5 yers fter termintion

of employment. In(ee( this "s

limite( s to time n( spce, B:T

"s not limite( s to tr(e.

Employee is force( to le!e the

co)ntry to "or$ if employer shll

not gi!e his permission.

;. <rtini !. 9lisermn = It is !oi( for

)nreson#le restrint of tr(e,

since EE "s prohi#ite( from

engging in ny #)siness similr to

tht of his employer for perio( of

> yer, "hen in fct EEs "or$ is

!ery limite( to p)rchse n( export

only = the restrint "s too #ro(+

his employment "s limite( only to

one of its ERs m)ltifrio)s

cti!ities.

?. !imitation as to time" place" etc.*

@. /0onform#ly then "ith the

forementione( prono)ncements,

non&in!ol!ement cl)se is not

necessrily !oi( for #eing in

restrint of tr(e s long s therere reasonable limitations as to

time$ trade$ and place.1

>./The non&in!ol!ement cl)se is

!li( "hen not contrry to p)#lic

"elfre n( not greter thn is

necessry to %or( fir n(



reson#le protection to

respon(ent.1

>>.

1. Reasonable !ausal

!onnection Rule

>.Reasonable !ausal !onnection

Rule: The r)le in cse of conCict of

D)ris(iction #et"een L#or n(

Reg)lr 0o)rt. :n(er this r)le, %F

there is reson#le c)sl

connection #et"een the clim

sserte( n( the employer&

employee reltions, &'N the cse

is "ithin the D)ris(iction of l#or

co)rts. In the #sence of s)ch

nex)s, it is the reg)lr co)rt tht

hs D)ris(iction.

>'.Po"er to determine R-

relationship: Not only the L#or

Ar#iters n( the NLR0, #)t lso the

OLE Secretry, OLE Regionl

irectors in the exercise of its

!isitoril F n( enforcement po"er

)n(er Art. >2? #3 of L03+ <e(&

Ar#iter+ Socil Sec)rity

0ommission+

#$.

>6. %urisdiction and venue of !abor

&rbiters" N!' and regular courts

>;.*B+R *RB%&R: Po"ers: (1)

(D)(ictory po"er to her n(

(eci(e cses o!er "hich they h!e

D)ris(iction+ () contempt po"er+

(,) po"er to con()ct oc)lr

inspection+ urisdiction: Art. 2>;*

Originl n( Excl)si!e, mening no

other oGcer n( tri#)nls cn t$ecogni8nce of, or her n( (eci(e,

ny of the cses therein

en)merte(. Exceptions: (1)

When + /ecretary or

President e0ercises his po"er

under *rt. , (g) of the L0 to

ss)me D)ris(iction o!er ntionl

interest cses+ () When NR!

e0ercise its po"er o#

compulsory arbitration o!er

similr ntionl interest cses tht

re certi-e( to it #y the OLE

Secretry+ (,) When cses rising

from the interpretation or

implementation o# !B* n( fromthe interprettion or enforcement

of company personnel policies

"hich m)st #e referre( to the

grievance machinery and voluntary

arbitration, s mt #e pro!i(e( in

si( greements+ (2) When

parties agree to s)#mit the cse

to !ol)ntry r#itrtion #efore

oluntary &rbitrator or panel of

oluntary &rbitrators "ho h!e

originl F excl)si!e D)ris(iction toher n( (eci(e cses m)t)lly

s)#mitte( to them #y the prties,

s )n(er Art. 26>, 262 of L03.

13. 4R%/%!&%+N

>@.A. 4NF*%R *B+R PR*!&%!

!*// :L43 = Art. 2';, 2'?, 2'@,

26>, 26 c3. H)ris(iction is )n(er

L.A. #)t limite( only to the ci!il

spect of :L4, the criminl spect

#eing lo(ge( to reg)lr co)rts.

2.B. %5* %/6%//* !*//

I3 = originl n( excl)si!e

D)ris(iction is )n(er L.A., ol)ntry

Ar#itrtors, OLE Secretry in

exercise of ss)mption of ntionl

interest3, NLR0 for ntionl

interest cses certi-e( to it for

comp)lsory r#itrtion #y OLE

Sec3.

2>.0. 6+N7 !*%6/ <03 = originl

n( excl)si!e D)ris(iction of L.A.n( clssi-e( into t"o* 3 money

clim regr(less of mo)nt, "ith

clim for reinsttement rising

from termintion cse+ #3 money

clim "ithJo)t clim for

reinsttement excee(ing the

mo)nt of 45, . per climnt.

If less, not see$ing reinsttement,



"ith EE&ER reltionship = Reg.

irector of OLE, or his )thori8e(

representti!es Art. >2@3. 4nder

.*. = "hen rising from l" or

contrct other thn the 0BA.

4nder 8oluntary *rbitrators =

"hen rising from 0BA or compnypersonnel policies.

22.0.>. H:RISI0TION OER

!+N&/& !*// INOLIN9

OLE SE0S ISITORIAL F

EN7OR0E<ENT 4OWERS

%N/P!&%+N +F

/&*B%/'6N&/3 = :n(er the

Exception 0l)se in Art. >2? #3*

OLE Secretrys H)ris(iction "hen*

>3 ER&EE reltionship still exist+ 23

7in(ings in )estion "ere m(e inthe co)rse of inspection #y l#or

inspector+ 3 EE h!e not yet

initite( ny climJcomplint "ith

OLE R.. )n(er Art. >2@, or L.A.

)n(er Art. 22'. 9!P& in cses

"here ER contests the -n(ings of

OLEJ R inspection n( rises

iss)es s)pporte( #y (oc)mentry

proofs "hich "ere llege(ly not

consi(ere( ()ring the inspection. In

"hich cse, the D)ris(iction lies"ith the *B+R *RB%&R not to

the +R nymore.

2.

2'.. !*%6/ F+R *6*5/ 073

= excl)si!e D)ris(iction of L.A., s

"ell s clim for ttorneys fees in

l#or cses, s long s the ction

primrily in!ol!es n ER&EE

reltionship.

25.E. 5*%&7 +F/&R%;/+!;+4&/ N+&

*FF!&%N5 N*&%+N*

%N&R/& = :n(er the D)ris(iction

of L.A. employer, in cse of stri$e,

or )nion, in cse of loc$o)t, my

-le the proper petition "ith L.A.

n( re)est (eclrtion of the

illeglity thereof.

26. 7. /&R%;/+!;+4&/

*FF!&%N5 %N4/&R%/

%N%/PN/*B &+ &'

N*&%+N* %N&R/& =

D)ris(iction of OLE Secretry in

cse he ss)mes D)ris(iction, or

"ith the NLR0, in cse OLESecretry certi-es it thereto. 7or

NLR0, the NLR0 i!ision "hich

c)ires D)ris(iction o!er the

principl oGce of the compny

shll h!e the D)ris(iction, )nless

the certi-ction other"ise pro!i(es.

*+. ',-%U'/0,N&! N&0U'1 ,2

0'1 4 !,,U0

*5.#. 2iling of notice to stri6e or

loc6out

N78

*9.*. 2iling of complaint declaring the

illegality of the stri6e or loc6out

!.&. (&rt. *#+ (a) ($)" !) or

oluntary &rbitrator (&rt. *:*" !)

3.3. 2iling of an in<unction petition

N!' in cases of &rt. *:=" *#5 (e)"

! for purposes of securing a

temporary restraining order (0',)

and in<unction.

3#.=. &ssumption of <urisdiction by /,!1 ecretary under &rt. *:3 (g)

only in >national interest? cases.

,nce he ma6es assumption" he

shall decide all the issues of the

certication order" thus all pending

case in other tribunals shall be

submitted to him.

3*.$. &ssumption of <urisdiction by

@resident. Ae is not precluded from

eBercising the powers of his alter

ego" the /,!1 ecretary" under &rt.*:3 (g) in settling or terminating

the stri6eCloc6out.

33.:. ubmission of national interest

case to oluntary &rbitration.

Dhere parties opt to submit their

dispute to voluntary arbitration"



despite pendency of the assumed

or certied national interest case.

'.

5. 9. !R%6%N* !*// *R%/%N5

FR+6 /&R%;/ +!;+4&/ =

Al"ys "ithin the D)ris(iction of

reg)lr co)rts.

6.K. 5%/*& <*5

%N!R*//%/&+R&%+N = %F

"ith 0BA or recogni8e( #rgining

)nion, &'N RA 6;2; !ests it )pon

ol)ntry Ar#itrtion A3 or pnel

of A to her n( (eci(e, fter the

grie!nce proce()re in 0BA file(

to settle the sme. %F )norgni8e(

est#lishment, &'N D)ris(iction is

"ith the LA fter N0<B file( to

correct the (istortion.

;.I. <*5 %/&+R&%+N 6*

/4B!& +F /&R%;+!;+4& =

is not proper gro)n( to #e

in!o$e( in s)pport of stri$e or

loc$o)t. S)ch "ge or(ers iss)e(

#y the Regionl Triprtite Wges

n( 4ro()cti!ity Bor( RTW4B3

"hich re llege( in the notice of

stri$eJloc$o)t sho)l( #e referre( to

L.A. if not settle( "ithin > (ys #y

the N0<B.

?.H. *NN46N& +F !+6PR+6%/

*5R6N&/ = D)ris(iction is "ith

the L.A. /0ompromise Agreements1

=Art. 22; ny compromise

settlement incl)(ing those

in!ol!ing l#or stn(r( l"s,

!ol)ntrily gree( )pon #y the

prties "ith the ssistnce of the

B)re) or the Regionl OGce of

OLE. NLR0 is excl)(e( from

ss)ming D)ris(iction except in

cses of prim fcie e!i(ence of

fr)(, misrepresenttion, or

coercion.

@.. 9!4&%+N +F !%/%+N/ +F

8.*. = D)ris(iction is "ith the sme

.A. )n(er Art. 262&A. 8U0 in the

#sence of the .A. "ho ren(ere(

the (ecision, the "rit of exec)tion

my #e iss)e( #y the L.A. in the

region "here the "inning prty

resi(es,

'.L. +F< !*// = %F money clims

.*. RA ?'23 = %F money

clims "ith 0BA #et"een foreign

ER n( #rgining )nion of EE

8.*. = %F (ministrti!e, rising

from !iol. of r)les F reg)ltions

relting to licensing, recr)itment,

employment gencies, ref)n( of

fees, !iol. of con(ition of license to

recr)it+ (isciplinry ction cses

P+*

'>.<. +&'R !*//: EE of 9O00

"itho)t originl chrters, Alien

prties, priestJministers on non&

ecclesisticl %irs, (omestic

"or$ersJ$sm#hy if clim

excee(s 5php, ER of

cooperti!es limite( to money

clims n( illegl (ismissl,

co)nter&clims of ER ginst EE

.*. = EE of 9O00 "ith originl

chrters 0i!il Ser!ice

0ommission.

2. !*%6/ N+& 4NR *

4R%/%!&%+N:

2,.3 0lims for (mges risingfrom #rech of non&compete cl)sen( other post&employmentprohi#itions+ !+4R&/

''. #30lims for pyment of csh(!nces, cr, pplince n( otherlons of employees+ !+4R&/

'5. c3ismissl of corporte oGcers n(

their monetry clims+ R&!. An intr&corporte (isp)te. <tling octrineM

2.(3Iss)es in!ol!ing s)spension of pyment of (e#ts reh#ilittionrecei!ership3+ R&!

2>.e30ses in!ol!ing entities imm)ne froms)it+ shall not prosper

'?. f3 0ses flling )n(er the (octrine of forum non conveniens+

'@. g3)si&(elict or tort cses+



5. h3 0riminl n( ci!il li#ilitiesrising from !ioltions of certinpro!isions of the L#or 0o(e+

5>. i3 0onstit)tionlity of 0BA pro!isions.52. All the foregoing iss)es or cses re

(isc)sse( #elo" seriatim.

?,.M6*&%N5 +!&R%N - :n(er this(octrine, the follo"ing r)les sho)l(#e o#ser!e(*

>3 The (ismissl of regular employeesflls )n(er the D)ris(iction of L#orAr#iters+ "hile tht of corporateo@cers flls "ithin the D)ris(iction of the reg)lr co)rts.

23 The term Acorporate o@cers refersonly to those expressly mentione( inthe 0orportion 0o(e n( By&L"s+ llother oGcers not so mentione( thereinre (eeme( employees.

3 !orporate o@cers re electe( orppointe( #y the (irectors orstoc$hol(ers, n( those "ho re gi!entht chrcter either #y the 0orportion0o(e or #y the corportions #y&l"s.

'3 The 0orportion 0o(e speci-cllymentions only the follo"ing corporateo@cers, to "it* president, secretary n( treasurer n( s)ch other oGcerss my #e pro!i(e( for in the #y&l"s.

53 &he Board o# irectors can nolonger create corporate o@cesbecause the po"er o# the Board o#

irectors to create a corporateo@ce cannot be delegated.

Therefore, the term Acorporateo@cers sho)l( only refer to the #o!en( to no other. A (i%erentinterprettion cn esily le!e the "yopen for the Bor( of irectors tocirc)m!ent the constit)tionllyg)rntee( sec)rity of ten)re of theemployee #y the expe(ient incl)sion inthe By&L"s of n en#ling cl)se onthe cretion of D)st ny corporte oGcerposition.

63 istinction bet"een a corporateo@cer and an employee. & AnAo@ce is crete( #y the chrter of thecorportion n( the Acorporateo@cer is electe( #y the (irectors orstoc$hol(ers. On the other hn(, nAemployee occ)pies no oGce n(generlly is employe( not #y the ctionof the (irectors or stoc$hol(ers #)t #ythe mnging oGcer of the corportion

"ho lso (etermines the compenstionto #e pi( to s)ch employee.

;3 Bec)se of the 7atling (octrine, ther)lings in Tabang n( Nacpil $ re nolonger controlling #ec)se they re /toos"eeping n( (o not ccor( "ith

reson, D)stice, n( fir ply.1?3 &he status o# an employee asdirector and stocCholder does notautomatically convert his dismissalinto an intra-corporate dispute.

@3 &"o () elements to determine"hether a dispute is intra-corporate or not.

5'. 3 The stt)s or reltionship of the prties+ n(

55. #3 The nt)re of the )estiontht is the s)#Dect of theircontro!ersy. (Nature of controversy

test).56. In the #sence of ny one of these fctors, the RT0 "ill not h!e

D)ris(iction.>3 &he criteria do not depend on

the services per#ormed but on themanner o# creation o# the [email protected];. In 7atling" respon(ent 0orros"s s)ppose(ly t once n employee, stoc$hol(er, n( irector of <tling.

The circ)mstnces s)rro)n(ing hisppointment to oGce m)st #e f)llyconsi(ere( to (etermine "hether the(ismissl constit)te( n intr&corportecontro!ersy or l#or termintion(isp)te. It m)st lso #e consi(ere("hether his stt)s s irector n(stoc$hol(er h( ny reltion t ll to hisppointment n( s)#se)ent (ismissls ice 4resi(ent for 7innce n(A(ministrtion.5?. O#!io)sly eno)gh, therespon(ent "s not ppointe( s ice4resi(ent for 7innce n( A(ministrtion#ec)se of his #eing stoc$hol(er orirector of <tling. Ke h( strte("or$ing for <tling on Septem#er ?,>@66, n( h( #een employe(contin)o)sly for yers )ntil histermintion on April >;, 2. Kis -rst"or$ s #oo$$eeper n( his clim# in>@?; to his lst position s ice4resi(ent for 7innce n( A(ministrtionh( #een gr()l #)t ste(y. E!entho)gh he might h!e #ecome stoc$hol(er of <tling in >@@2, his



promotion to the position of ice4resi(ent for 7innce n( A(ministrtionin >@?; "s #y !irt)e of the length of )lity ser!ice he h( ren(ere( s nemployee of <tling. Kis s)#se)entc)isition of the stt)s of

irectorJstoc$hol(er h( no reltion tohis promotion. Besi(es, his stt)s of irectorJstoc$hol(er "s )n%ecte( #yhis (ismissl from employment s ice4resi(ent for 7innce n(A(ministrtion.

5@. ,. /%5N%F%!*N& !*// !%B*/ +N &' MATLINGDOCTINE.

6. a. !osare v.Broadcom *sia$ %nc.

6>. In this 2>' cse, theS)preme 0o)rt r)le( tht the L#orAr#iter, not the reg)lr co)rts, hsoriginl D)ris(iction o!er the illegl(ismissl cse -le( #y petitioner0osre "ho "s n incorportor of respon(ent Bro(com n( "shol(ing the position of Assistnt ice4resi(ent for Sles A4 for Sles3n( Ke( of the Technicl0oor(intion t the time of histermintion. The follo"ing

D)sti-ctions "ere cite( in s)pport of this r)ling*62. >3 The mere fct tht

person "s stoc$hol(er n( noGcer of the compny t the timethe s)#Dect contro!ersy (e!elope((oes not necessrily m$e thecse n intr&corporte (isp)te.

6. 23 A person, ltho)gh noGcer of the compny, is notnecessrily corporte oGcerthereof.

6'. 3 9enerl InformtionSheet 9IS3 s)#mitte( to SE0neither go!erns nor est#lishesthe nt)re of oGce.

65. '3 The Nature of the ontroversy 0est * The mere fct tht person "s

stoc$hol(er t the time of the -ling

of the illegl (ismissl cse (oes not

m$e the ction n intr&corporte

(isp)te.

. Rule on 6arriage

6;. %N8*%%&7 +F /&%P4*&%+N

*5*%N/& 6*RR%*5 =Art. >6,

L0, consi(ers )nl"f)l stip)ltion

to re)ire s con(ition of

employment tht "omn EE shll

not get mrrie( or to stip)lte

expressly or tcitly tht )pongetting mrrie(, "omn EE shll

#e (eeme( resigne( or seprte(.

Also in!li( is to ct)lly (ismiss,

(ischrge, (iscriminte or preD)(ice

"omn EE merely #y reson of

her mrrige.

6?.Reasonable Business Necessity

Rule = in!li( for !iolting the

stn(r( of reson#leness "hich

is #eing follo"e( in o)r D)ris(iction.

E.g. stip)ltion of not llo"ing npplicnt relte( "ithin thir(

(egree of consng)inity to n

employee+ t"o employee to get

mrry. B4& 8*% %N !*//

<'R, the stip)ltion is, /You agree

to disclose to management any existing or future

relationship you may have, either by consanguinity or

affinity with co-employees or employees of competing

drug companies. Should it pose a possible conflict of

interest in management discretion, you agree to resign

voluntarily from the Company as a matter of Company

policy”

[email protected] v. Philippine *irlines$ %nc.

& In this cse (eci(e( #y the OGce of

the 4resi(ent" the pro!ision in

contrct #et"een n irline compny

n( Cight tten(nt "hich sttes

tht /Cight tten(nt&pplicnts

m)st #e single n( tht they shll #e

)tomticlly seprte( from

employment in the e!ent they

s)#se)ently get mrrie(1 "s

(eclre( s n)ll n( !oi( pro!ision+

hence, cnnot #e enforce( for #eingcontrry to Article >6 of the L#or

0o(e n( the protection&to&l#or

cl)se in the 0onstit)tion. R)le on

(etermintion of ge n( #ene-ts

for retirement

;.



+#.

a. 1Bception to the rule of

retirement +*.0ermination or illegal dismissal

(&rt. *99 in re of &rt. 39: of N)

+3.7oney claims before @/ *==*"eEect after eEectivity accruing

after activity a. @romisserial doctrine"

money claims prescribed in

3 yearsb. f due and payable but not

yet paid from the last

commitment or promise

begins the counting of

prescriptive periodc. &rt. *5 Bed term contract

(@N,-0 vs. N!')+=.1ntrust on the obligation that has

not been paid+$.@rinciple on disFualication of

union members who are appointive

or elective. 7oral turpitude as

ground for disFualication for

elective and appointive. n order to

be disFualied" there must be

conviction.+:.tri6e and loc6out G eEect of

assumption over the labor dispute

by the @resident or the /,!1

ecretary only valid if there isindustry struc6 or about to have

industry struc6" indispensable to

national economy.++./eance after the ,Hce of the

@resident or /,!1 ecretary

ordered the assumption" when it is

ground for termination of a union

member. (&rt. *:=" *+* 4 *55)+5.ancellation of unions registration"

voluntary dissolution (&rt. *39"

*=$" *5)+9.'ecruitment

a. 7igrant Dor6erIs &ct"

benets due to ,2D when

repatriated due to issues.

?.@regnancy as ground for

termination of employment" valid

or not.

labor relations final exam reviewer

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