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COURSE OUTLINE

LABOR LAW 2: LABOR RELATIONS

Prof. Augusto L. Villanueva

Labor Arbiter

AY-2014-2015 (2nd

Semester)

Course Description

Labor Law II covers Labor Relations which regulates the relationship between the employees

and employer. In the Labor Code of the Philippines, it includes Book V (Articles 211 to 277) and

Book VI (Articles 278 to 287). The remaining Book VII (Transitory and Final Provisions) of the

Labor Code is likewise made part of this course.

Integrated in the course is the study of establishing an organized union and conducting mock

collective bargaining negotiations in order to immerse the students on the practical application of

the provisions of the Labor Code on labor relations.

Course Learning Objectives

At the end of this course, students will be able to:

• Critically understand the provisions of the otherwise dynamic nature of the Labor

Code and related laws;

• Equip them to prepare for the Bar Exams; and

• Intelligently apply their knowledge of labor and employment law in the practice of

profession.

Course Text/Literature

1. 1987 Constitution of the Philippines

2. Labor Code of the Philippines, PD 442, as amended, and the Omnibus Rules

Implementing the Labor Code

3. Supreme Court Decisions (SCRA)

4. Special Laws related to labor relations

5. Policy Instructions, Department Orders (DOs), Executive Orders (EOs)

Suggested Textbooks

Labor Code of the Philippines

The 2011 NLRC Rules of Procedure

Azucena, Labor Code with Annotations, Volume II

Joselito Guianan Chan, The Labor Code of the Philippines Annotated, Volume II, Labor

Relations and Termination of Employment, 2009 Ed.

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PART I

Introduction to Labor Relations

1. Definition of Labor Relations

2. Distinctions between Labor Relations and Labor Standards

3. Constitutional Basis of Labor Relations

• Social Justice and Human Rights: Section 3, Article XII

• Declaration of Principles and State Policies: Section 18, Article II

• Bill of Rights: Sections 4, 8, 11, and 16, Article III

• The Civil Service Commission: Section 2 (3), (5) and (6), Article IX(B)

• National Economy and Patrimony: Sections 1 and 12, Article XII

• General Provisions: Section 9, Article XVI

4. Agencies Implementing Labor Relations Law

• NLRC: Article 213

• Labor Arbiter: Article 217

• Regional Office/Bureau of Labor Relations: Article 226

• National Conciliation and Mediation Board: Executive Order 126; Section 1(e),

Rule I, Book V, Rules to Implement the Labor Code, as amended by DO 40-03,

Series of 2003 (17 February 2003)

• Grievance Machinery and Voluntary Arbitration: Article 260

PART II

Jurisdiction of Implementing Agencies

Statutory Terms:

Article 212 – Employer (e), Employee (f), Labor Organization (g), Legitimate Labor

Organization (h), Company Union (i), Bargaining Representative ((j), Unfair Labor

Practice (k), Labor Dispute (l), Managerial Employee (m), Voluntary Arbitrator (n), Strike

(o), Lockout (p), Internal Union Dispute (q), Strike Breaker (r), Strike Area (s);

Certification Election – Articles 255, 256, 257, and 258;

Collective Bargaining Unit; and

Collective Bargaining Agreement

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A. The National Labor Relations Commission

1. National Labor Relations Commission, Article 213

• Headquarters, Branches, and Provincial Extension Units, Article 214

• Appointment and Qualifications, Article 215

• Salaries, Benefits, and Other Emoluments, Article 216

2. Jurisdiction of the Labor Arbiters and the Commission, Article 217

• Original and Exclusive Jurisdiction of Labor Arbiter

• Original Jurisdictions of the Commission

• Exclusive Appellate Jurisdiction of the Commission

• Powers of the Commission, Article 218

• Ocular Inspection, Article 219

• Compulsory Arbitration, Article 220

3. Technical Rules Not Binding and Prior Resort to Amicable Settlement, Article 221

4. Appearances and Fees, Article 222

5. Appeal, Article 223

• Grounds for Appeal

• Requisites for Perfection of Appeal

6. Execution of Decisions, Orders, or Awards, Article 224

7. Contempt Powers of the Secretary of Labor, Article 225

B. The Bureau of Labor Relations

8. Bureau of Labor Relations, Article 226

9. Compromise Agreements, Article 227

10. Indorsement of Cases to Labor Arbiters, Article 228

11. Issuance of Subpoenas, Article 229

12. Appointment of Bureau Personnel, Article 230

13. Registry of Union and File of Collective Bargaining, Article 231

14. Privileged Communication, Article 233

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C. Grievance Machinery and

Voluntary Arbitration

14. Grievance Machinery and Voluntary Arbitration, Article 260

15. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators, Article 261

16. Jurisdiction over Other Labor Disputes, Article 262

17. Procedure, Article 262-A

18. Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee, Article 262-B

D. National Conciliation and Mediation Board (NCMB)

19. Executive Order 126, Section 1(e), Rule I, Book V, Rules to Implement the Labor Code,

as amended by DO 40-03, Series of 2003 (17 February 2003)

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PART III

Kinds of Employment/Employee Classification

1. Regular, Casual Employment and Probationary Employment, Articles 280 and 281

A. Regular Employment, Articles 280 and 75(d); Omnibus Rules, Book IV, Rule I,

Sections 5(a), (b), and 6; Article 281 and Section 5, Rule I, Book VI)

A.1 By nature of work, an employment is deemed regular when an employee is engaged

to perform activities, which are usually necessary or desirable to the business or trade of

an employer EVEN if there is a written or oral agreement to the contrary.

• Hacienda Fatima v National Federation of Sugarcane Workers Food and General

Trade, 396 SCRA 518

• Association of Trade Unions (AU) v Abella, GR 100518, 24 January 2000

• ABS-CBN Broadcasting Corp. v Nazareno, GR 164156, 26 September 2006

• Brent School, Inc. v Zamora, GR 48494, 5 February 1990

• Columbus Philippines Bus Corp. v NLRC, GR 114858-59, 7 September 2001

• Singer Sewing Machine Company v Drilon, GR 91307, 21 January 1991

• Sonza v ABS-CBN Broadcasting Corp., GR 1380051, 10 June 2004 as against

Dumpit Murillo v CA, GR 164652, 8 June 2007

• ABS-CBN Broadcasting Corporation v Marquez, GR 167638, 12 June 2005

• Consolidated Broadcasting System, Inc. v Oberio, GR 168424, 8 June 2007

• Orozco v The Fifth Division of the Honorable Court of Appeals, GR 155207, 13

August 2008

A.2 By period of service, an employment is considered regular when an employee has

rendered at least one (1) year, whether continuous or broken, on such activity in which

he is employed and his employment shall continue while such activity exists.

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• Audion Electric Co. Inc. v NLRC, 308 SCRA 340

• Universal Robina Corporation v Catapang, 473 SCRA 189

• Abesco Construction and Development Corp. v Ramirez, 487 SCRA 9

A.3 By probationary employment, an employee who is allowed to work after a

probationary period (not to exceed six (6) months) shall be considered regular.

a. Statutory Definition of Probationary Employment, Article 281

b. Nature of Probationary Employment

• Philippine Federation of Credit Cooperatives, Inc. v NLRC, GR 121071, 11

December 1998

c. Computation of the Six-Month Probationary Period

• Cals Poultry Supply Corp. v Roco, GR 150660, 30 July 2002

d. Application of Article 13 of the Civil Code in the Computation of Six-Month

Probationary Period

• Mitsubishi Motors Phil. Corp. v Chrysler Phils. Labor Union, GR 148738, 29

June 2004

e. Extension of Probationary Period relaxed by the Supreme Court

• Mariwasa Manufacturing, Inc. v Leogardo, GR 74246, 26 January 1989

f. Repetitive Probationary Period

• Villanueva v NLRC, GR 127448, 10 September 1998

g. Stipulation in Employment Contract fixing the period of Probationary Period

• Innodata Phils., Inc. v Quejada Lopez, GR 162839, 12 October 2006

h. Exception to Probationary Period exceeding Six-Month Period

• Buiser v Hon. Leogardo, GR 63316, 31 July 1984

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i. Probationary Period for Different Workers:

1. Probationary Period of Apprentices

Section 6(a), Rule I, Book VI, Implementing Rules as amended by Article 5, DO

10, Series of 1997

• Nito Enterprises v NLRC, GR 114337, 29 September 1995 – effect of

apprenticeship agreement not registered with DOLE

2. Probationary Period of Learners

Not to exceed three (3) months, Article 75

3. Probationary Period of Handicapped Learners

Impaired by age or physical and mental deficiency or injury, Articles 78 & 81

4. Probationary Period of Teachers

1992 Manual of Regulations for Private Schools (Section 92), Article 280 not

applicable

5. Requirements for regularization of Private School Teachers

• Chiang Kai Shek School v CA, GR 58028, 18 April 1989

• Espiritu Santo Parochial School v NLRC, GR 82325, 26 September 1989

6. The Magna Carta for Public School Teachers – Civil Service Eligibility,

Section 4 (Probationary Period), No. II, RA 4670

7. Probationary Period of Part-Time Employees

Completion of the six(6)-month period for such number of hours or days – Acting

DOLE Sec. Jose S. Brillantes.

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2. Project Employment; Article 280, 1st paragraph, Section5(a), Rule I, Book VI,

Implementing Rules and Regulations, as amended by Rule IV, which was further amended

by Article IV, DO 19, Series of 1993, amending PO 20 (Guidelines Governing the Workers

in the Construction Industry)

2.A Nature of Project Employment – an employment has been fixed for a specific project

or undertaking, the completion or termination of which has been determined at the time

of the engagement of the employee or where the work or service to be performed is

seasonal in nature and the employment is for the duration of the season.

a. Definition and Nature of Project Employment

• Hanjin Heavy Industries & Construction Co. v Ibañez (2008), nature of project

employment

b. Indicators of Project Employment, Section 2.2, DO 19, Series of 1993

• Cocomangas Hotel Beach Resort v Visca, GR 167045, 29 August 2008

c. Employees should be notified of their status as project employees only.

• Abesco Construction and Development Corp. v Ramirez, GR 141168, 20 April

2006

d. The employment contract is only signed by the president and the manager but not the

employee concerned.

• Raycor Aircontrol Systems, Inc. v NLRC, GR 114290, 9 September 1996

e. Consent must be knowingly and voluntarily and without force, duress or improper

pressure.

• Caramol v NLRC, GR 102973, 225 SCRA 582

f. Exception to Article 280, a fixed-period employment, a day certain; requisites

• Brent School, Inc. v Zamora, GR 48494, 5 February 1990

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g. Absence of a provision in the contract of employment of specific project or

undertaking

• Price v Innodata Phils.,/Innodata Corp., GR 178505, 30 September 2008

h. No notice that employees were appraised of the nature of employment, the specific

projects or any phase thereof

• Chua v CA, GR 125837, 6 October 2004

i. Elements before a project employee attains the status of a regular employee

• Maraguinot, Jr. v NLRC, GR 120969, 22 January 1998

2.B Work Pool Employment, Policy Instruction 20

a. Classification of Work Pool

1. Non-project Employees

2. Project Employees

3. Regular Project Employees

• Tomas Lao Construction v NLRC, GR 116781, 5 September 1997

b. Work Pool in industry other than in construction business

c. Application of Work Pool in the business of data encoding

• Imbuido v NLRC, GR 114734, 31 March 2000

2.C Two (2) Types of Project Employment

1. Project that is within the regular trade or business of the employer

• Magcalas v NLRC, GR 100333, 13 March 1997

2. Project not within the regular trade or business of the employer

• Villa v NLRC, GR 117043, 14 January 1998

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d. Definition of Specific Project or Undertaking

• Tucor Industries, Inc. v NLRC, GR 96608, 20 May 1991

e. The absence of a definite duration for the projects leads to no other conclusion but that

the employment is regular.

• PNOC-Energy Development Corp. v NLRC, GR 169353, 13 April 2007

f. Lack of evidence to prove that the employment is project.

• Olongapo Maintenance Services, Inc. v Chantengco, GR 156146, 21 June 2007

g. Worker hired on a phase project can be dismissed on completion of such phase project

and not coterminous with the completion of the whole project; termination of phase of a

project.

• Saberola v Suarez, GR 151227, 14 July 2008

h. Project-to-Project basis of employment

• Sandoval Shipyard, Inc. v NLRC, GRs L-65689 and 66119, 31 May 1985

i. Engaged in contracting electrical services depending on the availability of projects or

works

• Cartagenas v Romago Electric Co. Inc., GR 82973, 15 September 1989

j. Repeated rehiring of project-to-project employment (e.g. 44 times)

• Samson v NLRC, GR 113166, 1 February 1996

k. The length of service of project employees is not the controlling factor.

• D.M. Consunji, Inc. v NLRC, GR 116572, 18 December 2000

l. Rehiring of the employees on a project-to-project basis does not ipso facto make their

employment regular.

• Cioco v C. E. Construction Corp., GR 156748, 8 September 2004

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m. Employees were rehired on interval basis.

• Caseres v Universal Robina Sugar Milling Corp., GR 159343, 28 September 2007

n. Repeated Extension of Employment Contracts Make the Employment Regular

• Tomas Lao Construction v NLRC, GR 116781

3. Seasonal Employment, Article 280; Section 5, Rule I, Book VI, Implementing Rules

a. Seasonal workers do not become regular employees even after one (1) year of service.

• Mercado v NLRC, GR 79869, 5 September 1991

b. Seasonal workers become regular employees after one (1) year of service.

• Tacloban Sagkahan Rice and Corn Mills, Co. v NLRC, GR 73806, 21 March

1990

c. Requisites in order that seasonal employment may be regular employment

• Hacienda Fatima v National Federation of Sugarcane Workers-Food and General

Trade, 28 January 2003

• Abasolo v NLRC, GR 118475, 29 November 2000

4. Casual Employment, Article 280; Section 5(b), Rule I, Book VI, as amended by Article IV,

DO 10, Series of 1997

a. Casual employee needs no appointment paper to be a regular employee after one (1)

year of service.

• Kimberly Clark (Phils.) v Secretary of Labor, GR 156668, 23 November 2007

b. Repeated rehiring of casual employees makes them regular employees.

• Tan v Lagrama, GR 151228, 15 August 2002

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5. Fixed-Term Employment

• Brent School, Inc. v Zamora and Alegre, GR 48494, 5 February 1990

a. Requisites for a valid fixed-term contract of employment

• PNOC v NLRC, GR 97747, 31 March 1993

b. Duties (need not) are usually necessary or desirable in the employer’s usual business or

trade.

• AMA Computer College Parañaque v Austria, GR 164078, 25 November 2007

• Pantranco North Express, Inc. v NLRC, GR 106654, 16 December 1994

c. Fixed-term employment for less than six (6) months same with probationary

employment

• Caparoso v NLRC, GR 155505, 15 February 2007

d. Employees’ employment contract on a five (5)-month period

• Pure Foods Corp. v NLRC, GR 122653, 12 December 1997

• Universal Robina Corp. v Catapang, GR 164736, 14 October 2005

e. Employees allowed to work after the fixed period of employment become regular.

• Viernes v NLRC, GR 108405, 4 April 2003

f. Employees allowed to work for more than one (1) year become regular.

• Megascope General Services v NLRC, GR 109224, 19 June 1997

• Agusan del Norte Electric Coop., Inc. v Cagampang and Garzon, GR 167627, 10

October 2008

g. Successive renewals of fixed period employment contract become regular.

• Philips Semiconductors v Fadriquela, GR 141717, 14 April 2004