Labor Code - Atty. Duka (Pt. 1)

Right of Refusal to Work

Under R.A. 11058, a worker's right to refuse work without threat or reprisal if DOLE determines an imminent danger situation exists in the workplace and the employer has not corrected it.

Article XIII, Section 3 (Philippine Constitution)

Mandates the State to afford full protection to labor (local and overseas, organized and unorganized), promote full employment, and guarantee rights to self-organization and peaceful concerted activities including strikes.

Police Power

The constitutional power under which labor contracts are regulated and subjected to state intervention.

Visitorial and Enforcement Power

The power of the Secretary of Labor and Employment (or authorized representatives) to access employer records/premises at any time, copy records, question employees, and investigate violations.

Social Justice

The humanization of laws and equalization of social and economic forces by the State; it cannot be used as a refuge by scoundrels and requires clean hands.

Construction in Favor of Labor

A manifestation of social justice where all doubts in the Labor Code are resolved in favor of labor (applied only when genuine doubt exists).

Regular Employees (Art. 295)

Employees engaged to perform activities which are necessary or desirable in the usual business or trade of the employer (note

Project and Seasonal Employees

Employees who perform activities only for a specific duration or time.

Casual Employees

Those who perform work that is usually not necessary or desirable for the employer's usual business.

Security of Tenure (Art. 294)

The right of every employee not to be dismissed without just or authorized cause and due process, with the burden of proof resting on the employer.

Four-Fold Test

Determines the existence of an employer-employee relationship by looking at (1) selection and engagement, (2) payment of wages, (3) power of dismissal, and (4) the power of control.

Control Test

The employer's power to determine the means and methods by which an employee performs their task.

Reinstatement and Backwages

Remedies for illegal dismissal including returning to the former position without loss of seniority (physically or via payroll) plus backwages from dismissal until reinstatement.

Separation Pay in Lieu of Reinstatement

Paid at one month's salary for every year of service when reinstatement is no longer viable due to strained relations.

Probationary Period for Private School Teachers

Requires three consecutive school years under the Manual of Regulations for Private Schools for a full-time, satisfactory teacher to acquire permanent status.

Full-Time Teacher

A teacher who devotes a full working day (8 hours/day, 6 days/week or an 18-unit college load) exclusively to the school without other regular remunerative employment.

Just Cause Dismissal (Art. 297)

Termination due to serious misconduct, fraud, or willful neglect of duties. Misconduct

Abandonment (as Just Cause)

Requires two elements

Procedure for Dismissal Due to Just Causes

Requires the Two-Notice Rule (1st notice/Notice to Explain with a 5-calendar-day window, and 2nd notice of termination) plus an opportunity to be heard (formal trial-type hearings are not strictly required).

Authorized Cause Dismissal (Art. 298)

Termination where the employee is not at fault, requiring separation pay and notice to both the employee and DOLE at least one month prior.

Installation of Labor-Saving Devices / Automation

An authorized cause where machines replace labor.

Redundancy

When employee services are in excess of what is reasonably demanded by actual business requirements, requiring fair criteria and good faith.

Retrenchment to Prevent Losses

Termination to prevent substantial actual or projected business losses. Closing or

Cessation of Operation

Total closure of business (exempt from separation pay only if due to serious business losses/financial reverses proven via financial statements).

Separation Pay Rates for Authorized Causes-Redundancy / Labor-Saving Devices

At least 1 month pay or 1 month pay per year of service, whichever is higher.

Separation Pay Rates for Authorized Causes-Retrenchment / Closure

At least 1 month pay or 1/2 month pay per year of service, whichever is higher.

Ineffectual Dismissal

Dismissal through just/authorized causes where due process was violated; results in no reinstatement, backwages, or separation pay, but requires payment of court-determined nominal damages.

Constructive Dismissal

Dismissal in disguise where continued employment is rendered impossible, intolerable, or unreasonable due to demotion, diminution of pay, sexual harassment, or hostile work environments.

Disease as Ground for Termination (Art. 299)

Termination when an employee suffers from an incurable disease within six months whose continuation is prohibited by law or harmful to health (certified by a public health authority), entitling them to separation pay.

Floating Status (Art. 301)

Placing employees on temporary layoff/floating status for a maximum of six months (extensions beyond 6 months via D.O. 215 are deemed constructive dismissal by the Supreme Court).

Resignation (Art. 300)

Voluntary termination by an employee by serving a written notice at least one month in advance (unless excused due to serious insult, inhuman treatment, or crime by the employer).

Retirement Pay (Art. 302)

Entitlement for employees retiring between 60 and 65 years old (65 being compulsory) with at least 5 years of service, calculated at 22.5 days per year of service (using the latest salary, including 13th-month pay and service incentive leave equivalents).

Mining Retirement

Underground and surface miners have a retirement bracket of 50 to 60 years old (compulsory at 60).

Prescriptive Period for Illegal Dismissal

4 years (treated as an injury to property rights under Art. 1146 of the Civil Code).

Prescriptive Period for Pure Money Claims

3 years from the time the cause of action accrued.

Prescriptive Period for Service Incentive Leave

3 years starting from the time the employee formally demanded payment.

Unfair Labor Practice (ULP - Art. 219)

Any act of an employer, union, officers, or members that interferes with the right of employees to self-organize.

Totality Test

Considering the totality of circumstances to determine whether a specific act constitutes an Unfair Labor Practice.

Yellow Dog Contract

A void agreement where employees promise not to join, assist, or form a union as a condition of employment.

Run-Away Shop

Moving a business or plant to another location for anti-unions purposes (classified as ULP).

Blue-Sky Bargaining

Making unreasonable, excessively exaggerated bargaining proposals (e.g., demanding wage hikes way beyond Regional Wage Board standards).

Boulwarism

A prohibited "take it or leave it" bargaining stance where an offer is not meant to be negotiated.

Surface Bargaining

Going through the motions of collective bargaining without any genuine intention to reach an agreement.

Featherbedding

A union ULP involving coercive attempts to force an employer to pay for unperformed services or hire unnecessary workers.

Sweetheart Contract / Deal (Art. 260e)

Asking for or accepting negotiation or attorney's fees from employers as part of a settlement in collective bargaining.

Bargaining Unit

A department or group of employees sought to be represented by a petitioning union.

Certification Election

A DOLE-ordered secret ballot process to determine the sole and exclusive bargaining representative of employees.

Double Majority Vote

Requirements to win an election

Failure of Election

Occurs when total votes cast are less than the majority of voters; anyone can file a new petition within 6 months.

Run-Off Election

Held when a certification/consent election has at least 3 choices ("no union" included) and no clear winner; the top two unions face off with "no union" removed as an option.

Re-Run Election

Scheduled within 10 days if an election results in a tie between two choices.

Certified Bargaining Agent

The official winner of a certification, consent, or run-off election.

Collective Bargaining Agreement (CBA)

A contract between the employer and bargaining union covering wages, hours of work, and terms and conditions of employment.

CBA Posting Rule

Must be posted in at least two conspicuous places for 5 days prior to ratification (non-posting is a fatal defect violating the right to information).

Ratification & Registration

A CBA must be ratified by a majority of all bargaining unit workers and registered with the Bureau of Labor Relations to invoke the Contract Bar Rule.

Contract Bar Rule

A registered CBA bars any petition for certification election for up to 5 years.

Freedom Period

The last 60 days of the 5-year CBA lifetime during which a petition for certification election may be filed.

Economic Renegotiation

Mandatory renegotiation of economic provisions occurring on the 3rd year of the CBA.

Automatic Renewal Clause (Evergreen Clause)

Stipulates that upon expiration, all terms of the CBA remain renewed until a new CBA is concluded.

Automatic Retroaction

Rule stating economic provisions concluded within 6 months of expiration retroact to the day immediately following expiration.

Grievance (Art. 273)

Any question regarding the interpretation/implementation of CBA provisions or company personnel policies.

Grievance Machinery / Committee

A joint body created by employer and union within 10 days of signing a CBA to resolve grievances within 7 calendar days before forwarding to voluntary arbitration.

Voluntary Arbitrator

An accredited arbitrator selected by parties to resolve grievances or specific labor disputes.

Gross Violations of CBA

Flagrant or malicious refusal to comply with economic provisions of a CBA, which constitutes an Unfair Labor Practice handled by a Labor Arbiter (whereas regular CBA violations go to Voluntary Arbitrators).

Strike

Any temporary work stoppage by employees due to a labor dispute, requiring valid grounds (bargaining deadlock, ULP, union busting), a Notice of Strike, cooling-off periods (30 days for economic, 15 days for ULP, none for union busting), and a strict strike vote protocol.

Lockout

Temporary refusal of an employer to furnish work due to a labor dispute.

Picketing

The right of workers to peacefully march to and fro before an establishment involved in a labor dispute as an exercise of freedom of expression.