Guideposts of Labor Law
Guideposts of Labor Law
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P ASEI vASEI v . Drilo. Drilo nn GR No. 81958 GR No. 81958 30 June 1998 30 June 1998 Sarmiento, J. Sarmiento, J.
The Department of Labor and The Department of Labor and Employment issued Department Employment issued Department Order No. 1, entitled “Guidelines Order No. 1, entitled “Guidelines Governing the Temporary Governing the Temporary Suspension of Deployment of Suspension of Deployment of Filipino Domestic and Household Filipino Domestic and Household Workers.” Philippine Association of Workers.” Philippine Association of Service Exporters, Inc., a firm Service Exporters, Inc., a firm engaged principally in the engaged principally in the
recruitment of Filipino workers, male recruitment of Filipino workers, male and female, for overseas placement, and female, for overseas placement, challenges the DO for being challenges the DO for being unconstitutional.
unconstitutional.
W/N Department Order No. 1 is a W/N Department Order No. 1 is a valid implementation of the Labor valid implementation of the Labor Code.
Code.
YES. The Labor Code itself vests the YES. The Labor Code itself vests the DOLE with rulemaking powers in DOLE with rulemaking powers in the enforcement thereof, and DO 1 is the enforcement thereof, and DO 1 is a valid implementation of the basic a valid implementation of the basic policy of the Labor Code, namely to policy of the Labor Code, namely to “afford protection to labor.” It is bad “afford protection to labor.” It is bad enough that the country has to se enough that the country has to se ndnd its sons and daughters to strange its sons and daughters to strange lands because it cannot satisfy their lands because it cannot satisfy their employment needs at home. Under employment needs at home. Under these circumstances, the Government these circumstances, the Government is duty-bound to insure that our is duty-bound to insure that our toiling expatriates have adequate toiling expatriates have adequate protection, personally and protection, personally and
economically, while away from economically, while away from home.
home.
“Protection to labor” does not signify “Protection to labor” does not signify the promotion of employment alone. the promotion of employment alone. What concerns the Constitution more What concerns the Constitution more paramountly is that such an paramountly is that such an
employment be, above all, decent, employment be, above all, decent, just, and humane.
just, and humane.
ISAE v. Quisumbing ISAE v. Quisumbing GR No. 128845 GR No. 128845 1 June 2000 1 June 2000 Kapunan, J. Kapunan, J.
International School is a domestic International School is a domestic educational institution established educational institution established primarily for dependents of foreign primarily for dependents of foreign
diplomatic personnel and other diplomatic personnel and other temporary residents. As such, it hires temporary residents. As such, it hires both foreign and local teachers as both foreign and local teachers as members of its faculty, classifying members of its faculty, classifying them into (1) foreign-hires; and (2) them into (1) foreign-hires; and (2) local-hires. The foreign hires get local-hires. The foreign hires get higher salaries and more benefits higher salaries and more benefits than their local counterparts, which is than their local counterparts, which is justified by the school with 2 justified by the school with 2
significant economic disadvantages: significant economic disadvantages: (a) the dislocation factor, and (b) (a) the dislocation factor, and (b) limited tenure.
limited tenure. The local hires decry this The local hires decry this classification as being classification as being
discriminatory. The DOLE initially discriminatory. The DOLE initially ruled in favor of the school. ruled in favor of the school.
W/N the point-of-hire classification W/N the point-of-hire classification employed by IS is discriminatory to employed by IS is discriminatory to Filipinos.
Filipinos.
W/N the foreign-hires should belong W/N the foreign-hires should belong to the same bargaining unit as the to the same bargaining unit as the local-hires.
local-hires.
YES. There is no reasonable YES. There is no reasonable distinction between the services distinction between the services rendered by foreign-hires and rendered by foreign-hires and local-hires. Although the school contends hires. Although the school contends that the ISAE has not adduced that the ISAE has not adduced evidence that local-hires perform evidence that local-hires perform work equal to that of the work equal to that of the foreign-hires, the presumption is that hires, the presumption is that employees which have the same employees which have the same position and rank perform equal position and rank perform equal work. There is no evidence that work. There is no evidence that foreign-hires perform 25% more foreign-hires perform 25% more efficiently or effectively than the efficiently or effectively than the local-hires. Both groups have similar local-hires. Both groups have similar functions and responsibilities, which functions and responsibilities, which they perform under similar working they perform under similar working conditions. While the Court conditions. While the Court recognizes the need of the school to recognizes the need of the school to attract foreign-hires, salaries should attract foreign-hires, salaries should not be used as an enticement to the not be used as an enticement to the prejudice of hires. The prejudice of hires. The local-hires perform the same services as hires perform the same services as foreign-hires and they ought to be foreign-hires and they ought to be paid the same salaries as the latter. paid the same salaries as the latter. NO. The basic test of an asserted NO. The basic test of an asserted bargaining unit’s acceptability is bargaining unit’s acceptability is
whether or not it is fundamentally the whether or not it is fundamentally the combination which will best assure combination which will best assure to all employees the exercise of their to all employees the exercise of their collective bargaining rights. collective bargaining rights.
“Equal pay for equal work” – “Equal pay for equal work” – Persons who work with substantially Persons who work with substantially equal qualifications, skill, effort and equal qualifications, skill, effort and responsibility, under similar responsibility, under similar conditions, should be paid similar conditions, should be paid similar salaries.
salaries.
Discrimination, particularly in terms Discrimination, particularly in terms of wages, is frowned upon by the of wages, is frowned upon by the Labor Code.
Labor Code.
The Constitution enjoins the State to The Constitution enjoins the State to “protect the rights of workers and “protect the rights of workers and promote their welfare,” “to afford promote their welfare,” “to afford labor full protection.” The State, labor full protection.” The State, therefore, has the right and duty to therefore, has the right and duty to regulate the relations between labor regulate the relations between labor and capital. These relations are not and capital. These relations are not merely contractual but are so merely contractual but are so impressed with public interest that impressed with public interest that labor contracts, collective bargaining labor contracts, collective bargaining agreements included, must yield to agreements included, must yield to the common good.
the common good.
A bargaining unit is a group of A bargaining unit is a group of employees of a given employer, employees of a given employer, comprised of all or less than a comprised of all or less than a ll of thell of the entire body of employees, consistent entire body of employees, consistent with equity to the employer, indicate with equity to the employer, indicate to be the best suited to serve to be the best suited to serve thethe
Although foreign-hires perform Although foreign-hires perform similar functions under the same similar functions under the same working conditions as the local-hires, working conditions as the local-hires, foreign-hires are accorded certain foreign-hires are accorded certain benefits not granted to local-hires. benefits not granted to local-hires.
These benefits are reasonably related These benefits are reasonably related to their status as foreign-hires, and to their status as foreign-hires, and justify the exclusion of the former justify the exclusion of the former from the latter. To include from the latter. To include foreign-hires in a bargaining unit with hires in a bargaining unit with local-hires would not assure either group hires would not assure either group the exercise of their respective the exercise of their respective collective bargaining rights. collective bargaining rights. Obiter:
Obiter:
The Constitution specifically The Constitution specifically provides that labor is entitled to provides that labor is entitled to
“humane conditions of work.” These “humane conditions of work.” These conditions are not restricted to the conditions are not restricted to the physical workplace—the factory, the physical workplace—the factory, the office, or the field—but include as office, or the field—but include as well the manner by which e well the manner by which e mployersmployers treat their employees.
treat their employees. The Constitution also directs the The Constitution also directs the State to promote “equality of State to promote “equality of employment opportunities for all.” employment opportunities for all.” Similarly, the Labor Code provides Similarly, the Labor Code provides that the State shall “ensure equal that the State shall “ensure equal work opportunities regardless of sex, work opportunities regardless of sex, race, or creed.” It would be an affront race, or creed.” It would be an affront to both the spirit and the letter to both the spirit and the letter of of these provisions if the State, in spite these provisions if the State, in spite of its primordial obligation to of its primordial obligation to promote and ensure equal promote and ensure equal
employment opportunities, closes its employment opportunities, closes its eyes to unequal and discriminatory eyes to unequal and discriminatory terms and conditions of employment. terms and conditions of employment.
reciprocal rights and duties of the reciprocal rights and duties of the parties under the collective parties under the collective bargaining provisions of the law. bargaining provisions of the law.
UST Faculty Union, et al. v. Bitonio UST Faculty Union, et al. v. Bitonio GR No. 131235 GR No. 131235 16 November 1999 16 November 1999 Panganiban, J. Panganiban, J.
When a notice was posted that the When a notice was posted that the UST Faculty Union was to hold its UST Faculty Union was to hold its election of new officers on 5 October election of new officers on 5 October 1996, the old set of officers 1996, the old set of officers contestedcontested this notice because the Commission this notice because the Commission on Elections that the notice was on Elections that the notice was constituted was allegedly not in constituted was allegedly not in accordance with the USTFU’s accordance with the USTFU’s constitution and by-laws. The constitution and by-laws. The Med-Arbiter issued a TRO enjoining the Arbiter issued a TRO enjoining the new officers from conducting the new officers from conducting the elections.
elections.
W/N the election of new officers was W/N the election of new officers was a legitimate exercise of USTFU’s a legitimate exercise of USTFU’s members’ right to self-organization. members’ right to self-organization.
NO. The said election is not binding, NO. The said election is not binding, because it cannot be properly called a because it cannot be properly called a union election for the procedures laid union election for the procedures laid down in the USTFU’s CBL was not down in the USTFU’s CBL was not followed.
followed. 1.
1. ThThe 4 e 4 OcOctotobeber ar assssememblblyy was not called by the was not called by the USTFU. It was merely a USTFU. It was merely a convocation of faculty convocation of faculty clubs. It was not clubs. It was not convened in accordance convened in accordance with the provision on with the provision on
Self-organization is a fundamental Self-organization is a fundamental right guaranteed by the Philippine right guaranteed by the Philippine Constitution and the Labor Code. Constitution and the Labor Code. Employees have the right to form, Employees have the right to form, join, or assist labor organizations for join, or assist labor organizations for the purpose of collective bargaining the purpose of collective bargaining or for their mutual aid and
or for their mutual aid and protection.protection. Whether employed for a definite Whether employed for a definite period or not, any employee shall be period or not, any employee shall be considered as such, beginning on his considered as such, beginning on his first day of service, for purposes of first day of service, for purposes of membership in a labor union. membership in a labor union.
The TRO notwithstanding, a general The TRO notwithstanding, a general assembly was called for by the assembly was called for by the secretary general of the UST on 4 secretary general of the UST on 4 October 1996, where a new set of October 1996, where a new set of USTFU officers were elected by USTFU officers were elected by acclamation and clapping of hands. acclamation and clapping of hands. Some of the participants were not Some of the participants were not members of the USTFU. The new set members of the USTFU. The new set of officers subsequently entered into of officers subsequently entered into another CBA with UST from June another CBA with UST from June 1996 to May 2001.
1996 to May 2001.
Acting upon the petition of the old Acting upon the petition of the old officers, Director Bitonio, the labor officers, Director Bitonio, the labor secretary, held that the 4 October secretary, held that the 4 October 1996 election was void. 1996 election was void.
W/N the Constitution and Bylaws of W/N the Constitution and Bylaws of the USTFU were suspended during the USTFU were suspended during the 4 October elections.
the 4 October elections.
W/N the ratification of the new W/N the ratification of the new CBACBA validated the 4 October elections. validated the 4 October elections.
general membership general membership meetings as found in the meetings as found in the USTFU’s CBL. USTFU’s CBL. 2 2.. TThheerre e wwaas s nnoo Commission on Elections Commission on Elections to oversee the election, as to oversee the election, as mandated by the mandated by the USTFU’s CBL. USTFU’s CBL. 3.
3. ThThe pe pururpoportrted ed elelecectitionon was not done by secret was not done by secret balloting, in violation of balloting, in violation of
the USTFU’s CBL. the USTFU’s CBL. NO. The union’s CBL is the NO. The union’s CBL is the
fundamental law that governs the fundamental law that governs the relationship between and among the relationship between and among the members of the union. It is where members of the union. It is where thethe rights, duties and obligations, rights, duties and obligations, powers, functions, and authority of powers, functions, and authority of the officers as well as the members the officers as well as the members are defined. It is the organic law that are defined. It is the organic law that determines the validity of acts done determines the validity of acts done by any officer or member of the by any officer or member of the
union. Without respect for the CBL, union. Without respect for the CBL, a union as a democratic
a union as a democratic institutioninstitution degenerates into nothing more than a degenerates into nothing more than a group of individuals governed by group of individuals governed by mob rule. Moreover, allowing a mob rule. Moreover, allowing a non-union member to initiate the union member to initiate the suspension of a union’s CBL, and suspension of a union’s CBL, and non-union members to participate in non-union members to participate in a union election on the premise that a union election on the premise that the union’s CBL had been suspended the union’s CBL had been suspended in the meantime, is incompatible with in the meantime, is incompatible with the freedom of association and the freedom of association and protection of the right to organize. protection of the right to organize. NO. Ratified were the new terms of NO. Ratified were the new terms of
the new CBA, not the issue of the new CBA, not the issue of unionunion leadership—a matter that should be leadership—a matter that should be decided only by union members in decided only by union members in the proper forum at the proper time the proper forum at the proper time and after observance of proper and after observance of proper procedures.
procedures.
Corollary to this right is the Corollary to this right is the prerogative not to join, affiliate with prerogative not to join, affiliate with
or assist a labor union. or assist a labor union. To become a union member, an To become a union member, an employee must, as a rule, not only employee must, as a rule, not only signify the intent to become one, but signify the intent to become one, but also take some positive steps to also take some positive steps to realize that intent. An employee who realize that intent. An employee who becomes a union member acquires becomes a union member acquires
the rights and the concomitant the rights and the concomitant obligations that go with this new obligations that go with this new status and becomes bound by the status and becomes bound by the union’s rules and regulations. union’s rules and regulations. Union election v.
Union election v. CertificationCertification election
election – A union election is held– A union election is held pursuant to the union’s
pursuant to the union’s constitutionconstitution and bylaws, and the right to vote in and bylaws, and the right to vote in itit is enjoyed only by union members. A is enjoyed only by union members. A certification election is the process of certification election is the process of determining, through secret ballot, determining, through secret ballot, the sole and exclusive bargaining the sole and exclusive bargaining agent of the employees in the agent of the employees in the appropriate bargaining unit, for appropriate bargaining unit, for purposes of collective bargaining. All purposes of collective bargaining. All
employees belonging to the employees belonging to the appropriate bargaining unit can vote. appropriate bargaining unit can vote. The importance of a union’s The importance of a union’s constitution and bylaws embody a constitution and bylaws embody a covenant between a union and its covenant between a union and its members and constitute the members and constitute the fundamental law governing the fundamental law governing the members’ rights and obligations. members’ rights and obligations. Where ILO Convention No. 87 Where ILO Convention No. 87 speaks of a union’s full free speaks of a union’s full free dom todom to draw up its constitution and rules, it draw up its constitution and rules, it includes freedom from interference includes freedom from interference by persons who are not members of by persons who are not members of
the union. the union.
Mob hysteria, however Mob hysteria, however well-intentioned, is not a substitute for the intentioned, is not a substitute for the rule of law. rule of law. Calalang v. Williams Calalang v. Williams GR No. L-47800 GR No. L-47800 2 December 1940 2 December 1940 Laurel, J. Laurel, J.
The National Traffic
The National Traffic CommissionCommission recommended to the Director of recommended to the Director of Public Works that animal-drawn Public Works that animal-drawn vehicles be prohibited from passing vehicles be prohibited from passing
W/N CA No. 548 constitutes undue W/N CA No. 548 constitutes undue delegation of legislative power. delegation of legislative power.
NO. The provisions of CA 548 does NO. The provisions of CA 548 does not confer legislative power upon the not confer legislative power upon the Director of Public Works and the Director of Public Works and the Secretary of Public Works and Secretary of Public Works and
The Legislature cannot delegate its The Legislature cannot delegate its power to make the law; but power to make the law; but it canit can
make a law to delegate a power to make a law to delegate a power to determine some fact or state of determine some fact or state of thingsthings
on Rizal Avenue from the points of on Rizal Avenue from the points of Antipolo Street to Azcarraga Street at Antipolo Street to Azcarraga Street at specific times during the day. specific times during the day. Pursuant to the recommendation, and Pursuant to the recommendation, and the powers conferred to it by the powers conferred to it by Commonwealth Act No. 548, the Commonwealth Act No. 548, the Director of Public Works approved Director of Public Works approved the recommendation, and the Mayor the recommendation, and the Mayor of Manila and the Acting Chief of of Manila and the Acting Chief of Police of Manila started to enforce Police of Manila started to enforce the said measures. As a consequence the said measures. As a consequence of the enforcement, all animal-drawn of the enforcement, all animal-drawn vehicles are not allowed to pass and vehicles are not allowed to pass and pick up passengers in the places pick up passengers in the places
mentioned—to the detriment not only mentioned—to the detriment not only of their owners but of
of their owners but of the ridingthe riding public as well.
public as well.
CA No. 548 authorizes the Director CA No. 548 authorizes the Director of Public Works, with the approval of Public Works, with the approval of the Secretary of Public Works a of the Secretary of Public Works a ndnd Communications, to promulgate rules Communications, to promulgate rules and regulations for the regulation and and regulations for the regulation and control of the use of and traffic on control of the use of and traffic on national roads and streets. national roads and streets.
W/N the rules and regulations W/N the rules and regulations promulgated by the Director of promulgated by the Director of
Public Works and the Secretary of Public Works and the Secretary of Public Works and Communications Public Works and Communications pursuant to the powers conferred pursuant to the powers conferred upon them by CA 548 constitute upon them by CA 548 constitute unlawful interference with legitimate unlawful interference with legitimate business or trade and abridge the business or trade and abridge the
right to personal liberty and freedom right to personal liberty and freedom of locomotion.
of locomotion.
W/N the rules and regulations W/N the rules and regulations infringe upon the
infringe upon the constitutionalconstitutional precept regarding the promotion of precept regarding the promotion of
social justice. social justice.
Communications. The delegated Communications. The delegated power, if at all, is not power, if at all, is not thethe
determination of what the law shall determination of what the law shall be, but merely the ascertainment of be, but merely the ascertainment of the facts and circumstances upon the facts and circumstances upon which the application of said law is which the application of said law is to be predicated. To promulgate rules to be predicated. To promulgate rules and regulations on the use of and regulations on the use of nationalnational roads and to determine when and roads and to determine when and how long a national road should be how long a national road should be closed to traffic, in view of the closed to traffic, in view of the condition of the road or the traffic condition of the road or the traffic thereon and the requirements of thereon and the requirements of public convenience and interest, is an public convenience and interest, is an administrative function which cannot administrative function which cannot be directly discharged by the be directly discharged by the National Assembly. National Assembly.
NO. Said Act aims to promote safe NO. Said Act aims to promote safe transit upon and avoid obstructions transit upon and avoid obstructions on national roads, in the interest and on national roads, in the interest and convenience of the public. In convenience of the public. In enacting said law, the National enacting said law, the National Assembly was prompted by Assembly was prompted by considerations of public convenience considerations of public convenience and welfare. It was inspired by a and welfare. It was inspired by a desire to relieve congestion of traffic, desire to relieve congestion of traffic, which is, to say the least, a which is, to say the least, a menace tomenace to public safety. Public welfare, then, public safety. Public welfare, then,
lies at the bottom of the e
lies at the bottom of the e nactment of nactment of said law, and the state in order to said law, and the state in order to promote the general welfare may promote the general welfare may interfere with personal liberty, with interfere with personal liberty, with property and with business and property and with business and
occupations. Persons and property occupations. Persons and property may be subjected to all kinds of may be subjected to all kinds of restraints and burdens, in order to restraints and burdens, in order to secure the general comfort, health, secure the general comfort, health, and prosperity of the state. and prosperity of the state. NO. Social justice must be founded NO. Social justice must be founded on the recognition of the necessity of on the recognition of the necessity of interdependence among diverse units interdependence among diverse units of a society and the protection that of a society and the protection that should be equally and evenly should be equally and evenly extended to all groups as a combined extended to all groups as a combined force in our social and economic life, force in our social and economic life, consistent with the fundamental and consistent with the fundamental and paramount objective of the state of paramount objective of the state of promoting the health, comfort, and promoting the health, comfort, and
upon which the law makes, or intends upon which the law makes, or intends to make, its own action depend. To to make, its own action depend. To deny this would stop the wheels of deny this would stop the wheels of government. There are many things government. There are many things upon which wise and useful upon which wise and useful legislation must depend which cannot legislation must depend which cannot be known to the law-making power, be known to the law-making power, and, must, therefore, be a subject of and, must, therefore, be a subject of inquiry and determination outside the inquiry and determination outside the halls of legislation.
halls of legislation.
The paradox lies in the fact that the The paradox lies in the fact that the apparent curtailment of liberty is apparent curtailment of liberty is precisely the very means of precisely the very means of insuringinsuring
its preservation. its preservation. Social justice is neither
Social justice is neither communism,communism, nor despotism, nor atomism, nor nor despotism, nor atomism, nor anarchy, but the humanization of anarchy, but the humanization of laws and the equalization of social laws and the equalization of social and economic forces by the State so and economic forces by the State so that justice in its rational and that justice in its rational and objectively secular conception may at objectively secular conception may at least be approximated. Social justice least be approximated. Social justice means the promotion of the welfare means the promotion of the welfare of all the people, the adoption by the of all the people, the adoption by the Government of measures calculated Government of measures calculated to insure economic stability of all the to insure economic stability of all the competent elements of society, competent elements of society, through the maintenance of a proper through the maintenance of a proper economic and social equilibrium in economic and social equilibrium in the interrelations of the members of the interrelations of the members of the community, c
the community, c onstitutionally,onstitutionally, through the adoption of measures through the adoption of measures legally justifiable, or legally justifiable, or extra-constitutionally, through the exercise constitutionally, through the exercise of powers underlying the existence of of powers underlying the existence of all governments on the time-honored all governments on the time-honored principle of
principle of salus populi est suprema salus populi est suprema lex.
quiet of all persons, and of quiet of all persons, and of bringingbringing about “the greatest good to the about “the greatest good to the greatest number.”
greatest number.” AMA Computer College v. Rolando
AMA Computer College v. Rolando Austria Austria GR No. 164078 GR No. 164078 23 November 2007 23 November 2007 Nachura, J. Nachura, J.
Rolando Austria was hired by AMA Rolando Austria was hired by AMA on probationary employment as a on probationary employment as a college dean, and was confirmed as college dean, and was confirmed as such by AMA’s Officer-in-Charge of such by AMA’s Officer-in-Charge of Academic Affairs.
Academic Affairs.
On the same month that he was On the same month that he was confirmed, Austria was charged with confirmed, Austria was charged with violating AMA’s Employees’ violating AMA’s Employees’ Conduct and Discipline provided in Conduct and Discipline provided in its orientation handbook. He was its orientation handbook. He was then placed on preventive then placed on preventive suspension, and was eventually suspension, and was eventually dismissed. Austria filed an illegal dismissed. Austria filed an illegal dismissal complaint against AMA. dismissal complaint against AMA.
Whether Austria was a regular Whether Austria was a regular employee, or an employee with a employee, or an employee with a fixed term.
fixed term.
W/N Austria was lawfully dismissed. W/N Austria was lawfully dismissed.
Austria was an employee with a Austria was an employee with a FIXED TERM. The position of dean FIXED TERM. The position of dean is normally an employment for a is normally an employment for a fixed term.
fixed term.
NO. True, AMA erred in dismissing NO. True, AMA erred in dismissing Austria, acting on the mistaken belief Austria, acting on the mistaken belief that he was liable for the charges that he was liable for the charges leveled against him. But he cannot leveled against him. But he cannot also claim entitlement to any benefit also claim entitlement to any benefit flowing from employment after 17 flowing from employment after 17 September 2000, because the September 2000, because the employment, which is the source of employment, which is the source of the benefits, had, by then, already the benefits, had, by then, already ceased to exist.
ceased to exist.
When the findings of the National When the findings of the National Labor Relations Commission Labor Relations Commission contradict those of the Labor Arbiter, contradict those of the Labor Arbiter, the Supreme Court, in the exercise of the Supreme Court, in the exercise of its equity jurisdiction, may look into its equity jurisdiction, may look into the records of the case and reexamine the records of the case and reexamine the questioned findings.
the questioned findings. The decisive determinant in term The decisive determinant in term employment should not be the employment should not be the activities that the employee is called activities that the employee is called upon to perform, but the day certain upon to perform, but the day certain agreed upon by the parties for the agreed upon by the parties for the commencement and termination of commencement and termination of their employment relationship. their employment relationship. A contract of employment for a A contract of employment for a definite period terminates on its own definite period terminates on its own force at the end of such period. The force at the end of such period. The lack of notice of termination is of lack of notice of termination is of nono consequence because when the consequence because when the contract specifies the length of its contract specifies the length of its duration, it comes to an end upon the duration, it comes to an end upon the expiration of such period. expiration of such period. While the Court adheres to the While the Court adheres to the principle of social justice and principle of social justice and protection to labor, the
protection to labor, the constitutionalconstitutional policy to provide such protection to policy to provide such protection to
labor is not meant to be a
labor is not meant to be a n instrumentn instrument to oppress employers. The
to oppress employers. The commitment under the fundamental commitment under the fundamental law is that the cause of labor does not law is that the cause of labor does not prevent us from sustaining the prevent us from sustaining the
employer when the law is clearly on employer when the law is clearly on its side.
its side. Toyota Motors Phils. Corp. Workers
Toyota Motors Phils. Corp. Workers Association v. NLRC Association v. NLRC GR Nos. 158786, 158789, and GR Nos. 158786, 158789, and 158798-99 158798-99 19 October 2007 19 October 2007 Velasco, Jr., J. Velasco, Jr., J.
Because of Toyota’s refusal to Because of Toyota’s refusal to negotiate with the Union regarding negotiate with the Union regarding the collective bargaining agreement, the collective bargaining agreement, the Union staged a strike on the Union staged a strike on FebruaryFebruary 2001 which became detrimental to 2001 which became detrimental to Toyota’s business. As a result, Toyota’s business. As a result, Toyota terminated 227 employees. Toyota terminated 227 employees. Outraged, the Union staged more Outraged, the Union staged more strikes from March to April 2001, strikes from March to April 2001, eventually barricading the entrance eventually barricading the entrance
W/N the mass actions committed by W/N the mass actions committed by the Union on different occasions are the Union on different occasions are illegal strikes. illegal strikes. YES. YES.
1.
1.
Shrouded asShrouded asdemonstrations, they were demonstrations, they were in reality temporary in reality temporary stoppages of work stoppages of work perpetrated
perpetrated through through thethe concerted action of the concerted action of the employees who employees who deliberately failed to deliberately failed to report for work on the report for work on the convenient excuse that convenient excuse that
Six categories of an illegal strike: Six categories of an illegal strike:
1.
1.
When it is contrary to aWhen it is contrary to a specificspecific prohibition of prohibition of law,
law, such as strike bysuch as strike by employees performing employees performing governmental functions; governmental functions;
2.
2.
When it violates a specificWhen it violates a specific requirement of law requirement of law;;3.
3.
When it is declared for anWhen it is declared for an unlawfulof Toyota’s two plants. of Toyota’s two plants. Upon assumption of the DOLE Upon assumption of the DOLE Secretary of jurisdiction over the Secretary of jurisdiction over the case, he directed that the case, he directed that the status quostatus quo be upheld and ordered the be upheld and ordered the strikingstriking
employees to return to work and f employees to return to work and f or or Toyota to have them reinstated. Toyota to have them reinstated. Despite the order, some reinstated Despite the order, some reinstated workers still went on strike on May workers still went on strike on May 2001.
2001.
NLRC subsequently declared that the NLRC subsequently declared that the strikes were illegal, that the dismissal strikes were illegal, that the dismissal of the 227 employees was legal, and of the 227 employees was legal, and forfeiting the employment status of forfeiting the employment status of the reinstated employees for the reinstated employees for participating in the subsequent participating in the subsequent
strikes. strikes.
they will hold a rally at they will hold a rally at the BLR and DOLE the BLR and DOLE offices. It becomes offices. It becomes obvious that the real and obvious that the real and ultimate goal of the Union ultimate goal of the Union is to coerce Toyota to is to coerce Toyota to finally acknowledge the finally acknowledge the Union as the sole Union as the sole bargaining agent of the bargaining agent of the company. This is not a company. This is not a legal and valid exercise of legal and valid exercise of the right of assembly and the right of assembly and to demand redress of to demand redress of grievance. Moreover, the grievance. Moreover, the February 2001 concerted February 2001 concerted actions were undertaken actions were undertaken without satisfying the without satisfying the prerequisites for a valid prerequisites for a valid strike under Art. 263 of strike under Art. 263 of the Labor Code, which the Labor Code, which renders the strike illegal. renders the strike illegal. 2.
2. WiWith th resrespepect tct to to the he MaMarchrch and April 2001 strikes, and April 2001 strikes, however, they were however, they were initially legal as the legal initially legal as the legal requirements were met. requirements were met. But when Toyota’s plants But when Toyota’s plants were blocked, they were blocked, they became illegal because became illegal because unlawful means were unlawful means were employed. employed.
3.
3.
With respect to the MayWith respect to the May 2001 strikes, although 2001 strikes, although there was no work there was no work disruption in the two disruption in the two Toyota plants, the fact Toyota plants, the fact still remains that the still remains that the Union and its members Union and its members picketed and performed picketed and performed concerted actions in front concerted actions in front of the Company premises. of the Company premises. This is a patent violation This is a patent violation of the assumption of of the assumption of jurisdiction and jurisdiction andcertification Order of the certification Order of the DOLE Secretary. While DOLE Secretary. While there are no work there are no work stoppages, the pickets and stoppages, the pickets and concerted actions outside concerted actions outside the plants have a the plants have a
inducing the employer to inducing the employer to commit an unfair labor commit an unfair labor practice against non-union practice against non-union
employees; employees;
4.
4.
When it employs unlawfulWhen it employs unlawful meansmeans in the pursuit of itsin the pursuit of its objective, such as a objective, such as a widespread terrorism of widespread terrorism of non-strikers;
non-strikers;
5.
5.
When it is declared inWhen it is declared in violation of an existing violation of an existing injunctioninjunction;;
6.
6.
When it is contrary to anWhen it is contrary to an existingexisting agreement agreement , such, such as a no-strike clause or as a no-strike clause or conclusive arbitration conclusive arbitration clause.
clause.
A strike means any temporary A strike means any temporary stoppage of work by the concerted stoppage of work by the concerted action of employees as a result of an action of employees as a result of an industrial or labor dispute. industrial or labor dispute. A labor dispute includes any A labor dispute includes any controversy or matter concerning controversy or matter concerning terms or conditions of employment or terms or conditions of employment or the association or representation of the association or representation of persons in negotiating, fixing, persons in negotiating, fixing,
maintaining, changing, or arranging maintaining, changing, or arranging the terms and conditions of the terms and conditions of employment, regardless of whether employment, regardless of whether the disputants stand in the proximate the disputants stand in the proximate relation of the employer and the relation of the employer and the employee.
employee.
Once the DOLE Secretary assumes Once the DOLE Secretary assumes jurisdiction over the labor dispute jurisdiction over the labor dispute
and certifies the case for compulsory and certifies the case for compulsory arbitration with the NLRC, the arbitration with the NLRC, the parties have to revert to the parties have to revert to the status status
quo ante quo ante..
The responsibility of union officials The responsibility of union officials is greater than that of the members. is greater than that of the members. They are tasked with the duty to They are tasked with the duty to leadlead and guide the membership in and guide the membership in decision making on union activities decision making on union activities in accordance with the law, in accordance with the law, government rules and regulations, government rules and regulations,
W/N separation pay should be W/N separation pay should be awarded to the Union members who awarded to the Union members who participated in the illegal strikes. participated in the illegal strikes.
demoralizing and even demoralizing and even chilling effect on the chilling effect on the workers inside the plants workers inside the plants and can be considered as and can be considered as veiled threats of possible veiled threats of possible trouble to the workers trouble to the workers when they go out of the when they go out of the company premises after company premises after work and of impending work and of impending disruption of operations to disruption of operations to company officials and company officials and even to customers in the even to customers in the days to come. days to come. NO. The general rule is that when NO. The general rule is that when just causes for terminating the just causes for terminating the
services of an employee under Art. services of an employee under Art. 282 of the Labor Code
282 of the Labor Code exist, theexist, the employee is not entitled to separation employee is not entitled to separation pay. One exception where separation pay. One exception where separation pay is given even though an pay is given even though an
employee is validly dismissed is employee is validly dismissed is when the court finds justification in when the court finds justification in applying the principle of social applying the principle of social justice well entrenched in the 1987 justice well entrenched in the 1987 Constitution. But this exception only Constitution. But this exception only applies when the employee is validly applies when the employee is validly dismissed for causes other than dismissed for causes other than serious misconduct, willful serious misconduct, willful disobedience, gross and habitual disobedience, gross and habitual neglect of duty, fraud or willful neglect of duty, fraud or willful breach of trust, commission of a breach of trust, commission of a crime against the employer or his crime against the employer or his family, or those reflecting his moral family, or those reflecting his moral character. Since the dismissal of the character. Since the dismissal of the workers was due to their workers was due to their participation in the illegal strikes as participation in the illegal strikes as
well as violation of the Code of well as violation of the Code of Conduct of the company, the same Conduct of the company, the same constitutes serious misconduct. constitutes serious misconduct. Obiter:
Obiter:
While strikes and lockouts have been While strikes and lockouts have been recognized as effective bargaining recognized as effective bargaining tools, it is an antiquated notion that tools, it is an antiquated notion that they are truly beneficial, as they they are truly beneficial, as they onlyonly provide short-term solutions by provide short-term solutions by forcing concessions from one party; forcing concessions from one party; but staging strikes would damage the but staging strikes would damage the working relationship between working relationship between
and established labor practices. The and established labor practices. The leaders are expected to recommend leaders are expected to recommend actions that are arrived at with actions that are arrived at with circumspection and contemplation, circumspection and contemplation, and always keep
and always keep paramount the paramount the bestbest interests of the members and union interests of the members and union within the bounds of law. within the bounds of law. Union officers are duty bound to Union officers are duty bound to guide their members to respect the guide their members to respect the law. If the officers urge the members law. If the officers urge the members to violate the law and defy to violate the law and defy the dulythe duly constituted authorities, their dismissal constituted authorities, their dismissal from the service is a
from the service is a just penalty or just penalty or sanction for their unlawful acts. sanction for their unlawful acts. An ordinary striking worker cannot An ordinary striking worker cannot be terminated for mere participation be terminated for mere participation
in an illegal strike. in an illegal strike. Rule of vicarious liability Rule of vicarious liability : Mere: Mere
membership in a labor union serves membership in a labor union serves as basis of liability for acts of as basis of liability for acts of individuals, or for a labor activity, individuals, or for a labor activity, done on behalf of the
done on behalf of the union. Theunion. The union member is made liable on the union member is made liable on the theory that all the members are theory that all the members are engaged in a general conspiracy, and engaged in a general conspiracy, and the unlawful acts of the particular the unlawful acts of the particular members are viewed as necessary members are viewed as necessary incidents of the conspiracy. incidents of the conspiracy. The Labor Code does not follow the The Labor Code does not follow the vicarious liability rule. It is only vicarious liability rule. It is only when a striking worker “knowingly when a striking worker “knowingly participates in the commission of participates in the commission of illegal acts during a strike” that he illegal acts during a strike” that he will be penalized with dismissal. will be penalized with dismissal. A serious misconduct is a A serious misconduct is a
transgression of some established and transgression of some established and definite rule of action, a forbidden definite rule of action, a forbidden act, a dereliction of duty, willful in act, a dereliction of duty, willful in character, and implies wrongful character, and implies wrongful intent and not mere error in intent and not mere error in judgment.
judgment. Obiter: Obiter:
Social justice cannot be permitted to Social justice cannot be permitted to be a refuge of scoundrels any more be a refuge of scoundrels any more
employers and employees, thus employers and employees, thus endangering the business that they endangering the business that they both want to succeed. The more both want to succeed. The more progressive and truly effective means progressive and truly effective means
of dispute resolution lies in of dispute resolution lies in mediation, conciliation, and mediation, conciliation, and arbitration, which do not increase arbitration, which do not increase tension but instead provide relief tension but instead provide relief from them.
from them.
than can equity be an impediment to than can equity be an impediment to the punishment of the guilty. Those the punishment of the guilty. Those who invoke social justice may do so who invoke social justice may do so only if their hands are clean and only if their hands are clean and their motives blameless and not their motives blameless and not simply because they happen to be simply because they happen to be poor.
poor.
The constitutional guarantee on The constitutional guarantee on social justice is not intended only for social justice is not intended only for
the poor but for the rich as well. the poor but for the rich as well. It isIt is a policy of fairness to both labor and a policy of fairness to both labor and management.
management. Cebu Metal Corp. v. Gregorio Robert
Cebu Metal Corp. v. Gregorio Robert Saliling Saliling GR No. 154463 GR No. 154463 5 September 2006 5 September 2006 Chico-Nazario, J. Chico-Nazario, J.
Saliling and the others claimed to be Saliling and the others claimed to be regular workers for Cebu Metal regular workers for Cebu Metal Corp. Cebu Metal Corp. claims that Corp. Cebu Metal Corp. claims that these workers are only seasonal. these workers are only seasonal. When these workers demanded an When these workers demanded an increase in their salary, they were increase in their salary, they were dismissed and were precluded from dismissed and were precluded from entering the compound of Cebu entering the compound of Cebu Metal Corp. Saliling and his Metal Corp. Saliling and his companions then filed a case against companions then filed a case against Cebu Metal Corp. for underpayment Cebu Metal Corp. for underpayment of wages and non-payment of of wages and non-payment of benefits.
benefits.
The Labor Arbiter ruled that Saliling, The Labor Arbiter ruled that Saliling, et al. were regular company et al. were regular company employees. Upon appeal, the NLRC employees. Upon appeal, the NLRC reversed the decision, stating that the reversed the decision, stating that the said workers were not regular said workers were not regular employees, thus could not be employees, thus could not be illegally dismissed. The CA then illegally dismissed. The CA then reversed the NLRC’s decision based reversed the NLRC’s decision based on the ground that the NLRC gravely on the ground that the NLRC gravely abused its discretion in ruling on an abused its discretion in ruling on an issue that was not raised on appeal issue that was not raised on appeal before it (Cebu Metal allegedly did before it (Cebu Metal allegedly did
not make an issue out of not make an issue out of the Labor the Labor Arbiter’s action in ruling on a Arbiter’s action in ruling on a causecause of action—illegal dismissal was not of action—illegal dismissal was not specifically stated in the complaint). specifically stated in the complaint).
W/N the NLRC can rule on an W/N the NLRC can rule on an issueissue which was NOT properly raised which was NOT properly raised before it.
before it.
NO. The NLRC’s decision simply NO. The NLRC’s decision simply expressed an observation. It was expressed an observation. It was plain error for the CA to annul and plain error for the CA to annul and
set aside the decision of set aside the decision of the NLRCthe NLRC on the lone reason that the latter on the lone reason that the latter “dismissed Petitioner’s appeal on the “dismissed Petitioner’s appeal on the basis of an issue not raised basis of an issue not raised by Privateby Private
Respondent in its appeal.” A Respondent in its appeal.” A painstaking review of the decision of painstaking review of the decision of the NLRC will readily reveal that the the NLRC will readily reveal that the Commission’s finding that Commission’s finding that respondent complainants were not respondent complainants were not regular employees was the regular employees was the raisonraison d’etre
d’etre for the subsequent turnaroundfor the subsequent turnaround of the state of affairs. And the use of of the state of affairs. And the use of the word “moreover” clearly the word “moreover” clearly expresses NLRC’s position in expresses NLRC’s position in treating the matter of the treating the matter of the non-inclusion of the issue of illegal inclusion of the issue of illegal dismissal in the complaint merely as dismissal in the complaint merely as an add-on, adjunct or a
an add-on, adjunct or a supplement tosupplement to its finding that respondent
its finding that respondent complainants were not regular complainants were not regular employees of petitioner company. employees of petitioner company.
An act of a court or tribunal may only An act of a court or tribunal may only be considered to have been done in be considered to have been done in grave abuse of discretion when the grave abuse of discretion when the same was performed in a capricious same was performed in a capricious or whimsical exercise of judgment or whimsical exercise of judgment which is equivalent to lack of which is equivalent to lack of jurisdiction. The abuse of discretion jurisdiction. The abuse of discretion
must be so patent and gross as must be so patent and gross as toto amount to an evasion of positive duty amount to an evasion of positive duty or to a virtual refusal to perform a or to a virtual refusal to perform a duty enjoined or to act at a duty enjoined or to act at a ll inll in contemplation of law, as where the contemplation of law, as where the power is exercised in an arbitrary and power is exercised in an arbitrary and despotic manner by reason of passion despotic manner by reason of passion or personal hostility.
or personal hostility.
Characteristics of Employee-Employer Relationship
Characteristics of Employee-Employer Relationship
Dumpit-Murillo v. CA Dumpit-Murillo v. CA GR No. 164652 GR No. 164652 8 June 2007 8 June 2007On 2 October 1995, Thelma On 2 October 1995, Thelma Dumpit-Murillo was hired by Associated Murillo was hired by Associated Broadcasting Company (ABC) as a Broadcasting Company (ABC) as a
W/N Murillo was a regular W/N Murillo was a regular employee.
employee.
YES. Murillo was a regular YES. Murillo was a regular employee under contemplation of employee under contemplation of law. The assertion that a talent law. The assertion that a talent
The practice of having fixed-term The practice of having fixed-term contracts in the industry does not contracts in the industry does not automatically make all talent automatically make all talent
Quisumbing, J.
Quisumbing, J. newscaster and co-anchor for newscaster and co-anchor for Balitang-Balita
Balitang-Balita, an evening news, an evening news program. On 30 September 1999, program. On 30 September 1999,
after four years of repeated renewals, after four years of repeated renewals, Murillo’s talent contract expired. She Murillo’s talent contract expired. She sent a letter to the Vice President for sent a letter to the Vice President for News and Public Affairs of ABC, News and Public Affairs of ABC, signifying her interest in renewing signifying her interest in renewing her contract subject to a salary her contract subject to a salary increase. When she did not receive a increase. When she did not receive a reply, she demanded for
reply, she demanded for
reinstatement to her former position, reinstatement to her former position, payment of unpaid services from 1 payment of unpaid services from 1 September until 20 October 1999 and September until 20 October 1999 and full backwages, and payment of other full backwages, and payment of other benefits due to a regular
benefits due to a regular employeeemployee starting 31 March 1996. ABC told starting 31 March 1996. ABC told her a check for her talent fee her a check for her talent fee covering 16 September until 20 covering 16 September until 20 October 1999 had already been October 1999 had already been processed, but answered that her processed, but answered that her
other claims had no basis in fact or in other claims had no basis in fact or in law. Murillo filed a claim with law. Murillo filed a claim with NLRC.
NLRC.
The labor arbiter dismissed her The labor arbiter dismissed her complaint. Upon appeal, the NLRC complaint. Upon appeal, the NLRC reversed the labor arbiter, holding reversed the labor arbiter, holding that an employer-employee that an employer-employee relationship between the parties relationship between the parties existed, and that Murillo was existed, and that Murillo was illegally dismissed. The NLRC also illegally dismissed. The NLRC also held that Murillo was entitled to held that Murillo was entitled to reinstatement and backwages or reinstatement and backwages or separation pay, aside from 13 separation pay, aside from 13ththmonthmonth
pay and service incentive leave pay, pay and service incentive leave pay, moral and exemplary damages, and moral and exemplary damages, and attorney’s fees. The CA reversed the attorney’s fees. The CA reversed the NLRC decision on the ground that NLRC decision on the ground that Murillo was a fixed-term employee, Murillo was a fixed-term employee, as was on her
as was on her employment contract.employment contract.
W/N Murillo was illegally dismissed. W/N Murillo was illegally dismissed.
contract exists does not necessarily contract exists does not necessarily prevent a regular employment status. prevent a regular employment status. In the case at bar, ABC had control In the case at bar, ABC had control over the performance of Murillo’s over the performance of Murillo’s work. Moreover, Murillo’s duties as work. Moreover, Murillo’s duties as enumerated in her contract indicate enumerated in her contract indicate that ABC had control over her work. that ABC had control over her work. Aside from control, ABC also Aside from control, ABC also dictated the work assignments and dictated the work assignments and payment of Murillo’s wages. ABC payment of Murillo’s wages. ABC
also had the power to
also had the power to dismiss her. Alldismiss her. All these being present, clearly, there these being present, clearly, there existed an employment relationship existed an employment relationship between Murillo and ABC. between Murillo and ABC.
YES. As a regular employee, Murillo YES. As a regular employee, Murillo is entitled to security of tenure is entitled to security of tenure andand can be dismissed only for just ca can be dismissed only for just ca useuse and after due compliance with and after due compliance with procedural due process. Since ABC procedural due process. Since ABC
did not observe due process in did not observe due process in constructively dismissing Murillo, constructively dismissing Murillo, Murillo was illegally dismissed. Murillo was illegally dismissed.
contracts valid and compliant with contracts valid and compliant with labor law. labor law. Elements of an employment Elements of an employment relationship: relationship: 1.
1. ThThe se selelecectition on anandd engagement of the engagement of the employee; employee; 2.
2. ThThe pe payaymement nt of of wawageges;s; 3.
3. ThThe pe powower er of of didismsmisissalsal;; 4.
4. EmEmplployoyerer’s p’s powower ter too control.
control.
The most important element is the The most important element is the employer’s control of the employee’s employer’s control of the employee’s conduct, not only as to the result of conduct, not only as to the result of the work to be done, but also the work to be done, but also as to theas to the means and methods to accomplish it. means and methods to accomplish it. Considering regular employment, the Considering regular employment, the law provides for 2 kinds of law provides for 2 kinds of employees, namely: employees, namely:
1.
1. ThThosose we who ho are are enengaggaged ed toto perform activities which perform activities which are usually necessary or are usually necessary or desirable in the usual desirable in the usual business or trade of the business or trade of the
employer; employer; 2.
2. ThThosose we who ho havhave re renendedereredd at least one year of at least one year of service, whether service, whether continuous or broken, continuous or broken, with respect to the activity with respect to the activity in which they are in which they are employed. employed.
Regular status arises from either the Regular status arises from either the nature of work of the employee or the nature of work of the employee or the duration of his employment. duration of his employment.
