Labor Relations Law - Midterm Reviewer

MIDTERM REVIEWER RELATIONS S.Y. 2008-2009 LABOR LAWS are laws, rules, and regulations enacted by the state that: 1. promote the general welfare of the employees, and 2. govern the relationship between the employees and their employers. They include judicial decisions interpreting said laws. Example of Judicial Legislation: FULL BACKWAGES - wages from the time of illegal termination up to the actual reinstatement 1. Mercury Drug vs. NLRC - 3 years pay without qualification and deduction 2. Ferrer vs. NLRC - wages from time of illegal dismissal to actual reinstatement MINUS earnings elsewhere (earnings from the new job while case is pending) 3. Osmalik Bustamante vs. NLRC - wages from the time of illegal dismissal up to actual reinstatement without any deductions. TYPES OF LABOR LAWS 1. Labor Standards Laws • are laws, rules, and regulations which provide the minimum requirements for terms and conditions of employment such as wages, hours of work, etc. 2. Labor Relations Laws • are laws, rules, and regulations that govern the relationship between employers and employees, • promote the rights of employees to self-organization and collective bargaining, • penalize unfair labor practices, and

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provide for the mechanism of settling and/or adjusting labor disputes such as conciliation, mediation, grievance machinery, and voluntary and compulsory arbitration.

3. Social Legislation • are laws, rules, and regulations which promote the general welfare of all sectors of society.

© Hanna Magkasi 2008

LABOR PLM - LAW NOTE: Labor Standards and Labor Relations are not exclusive unto themselves. They ate interrelated and interdependent with each other.

BASES OF LABOR LAWS 1. Police Power • is the inherent power of the state to restrain one's liberty and right to property to promote the welfare of the people. 2. Social Justice • Definition under Calalang vs. Williams: "Social Justice is neither communism, nor despotism, nor atomism, nor anarchy, but the humanization of laws and the equalization of social and economic forces by the state so that justice at its rational and objectively secular conception may at least be approximated. Social Justice means the promotion of the welfare of all people, the adoption by the government of measures calculated to insure the economic stability of all the component elements of society, through the interrelations of the members of the community; constitutionally through the adoption of measures legally justifiable, and extraconstitutionally through the exercise of powers underlying the time-honored principle of salus populi est suprema lex." BLUE SUNDAY LAW - RA 946  Forbid commercial, industrial, agricultural enterprises to open on any Sundays, Christmas Day, New Year's Day, Holy Thursday and Good Friday. these days are set aside by law as days of rest. SWEETHEART AGREEMENT  An agreement containing provisions which are equal to the benefits provided by law, or less that what is provided by law.  Disadvantageous to employees. RIGHTS OF EMPLOYEES UNDER THE LABOR STANDARDS 1. Right to security of tenure 2. Right to a living wage 3. Right to humane conditions of employment 4. Right o a just share in the fruits of production 1

MIDTERM REVIEWER RELATIONS S.Y. 2008-2009 RIGHTS OF EMPLOYEES UNDER THE LABOR RELATIONS 1. Right to self-organization a) form a union b) assist in the formation of a union c) join a union of one's choice 2. Right to engage in peaceful concerted actions a) STRIKE - temporary stoppage of work by the employees due to a labor dispute b) BOYCOTT - non-patronage of a specific service of employer or produc c) LOCK OUT- temporary refusal of the employer to provide work 3. Right to collective bargaining agreement 4. Right to participate in policy and decisionmaking EMPLOYER'S RIGHT (MANAGEMENT PREROGATIVES) 1. Right to select and hire employees 2. Right to conduct business 3. Right to close the business 4. Right to prescribe rules and regulations 5. Right to transfer and dismiss employees EMPLOYEE - is the one who works for another for a fee or compensation. It includes one who has been dismissed from service due to a labor dispute and has not yet found any substantial employment. EMPLOYER - is one who hires the services of another and pays him for his service. it includes one who acts for and in behalf of an employer. * Labor organizations or unions generally are NOT employers unless they act as an employer or acts for and in behalf of an employer. EMPLOYER-EMPLOYEE RELATIONSHIP 1. Selection and engagement of employees 2. Payment of wages 3. Power to dismiss 4. Control over the means and methods used by the employee in accomplishing the work DETERMINATIVE FACTORS OF AN INDEPENDENT JOB CONTRACTOR © Hanna Magkasi 2008

LABOR PLM - LAW 1. Must have substantial capital of at least PhP 2M or invested on tools, machineries, and equipments; 2. Undertakes the contract on his own account by his own means and responsibility without interference of the principal, except as to the result; 3. His employees must perform activities not necessary or desirable to the usual business of the principal; 4. He has his own place of work or official business address. * Independent Job Contractor is SOLIDARILY liable with the principal for unpaid wages and benefits.

* Labor-only contractor - one who does not have those determinative factors of an independent job contractor. - agent only of the principal; principal is the direct employer of the employees and is liable for unpaid wages and benefits. FARMERS - those whose primary livelihood is the cultivation of soil, harvesting crops, planting of trees, and other agriculture activities and raising of livestocks. FARM WORKERS - are farmers who work on the land for a fee. they are laborers in of the farm, hired to do agricultural work for a fee. ORGANIZED ESTABLISHMENT (Asiabed Factory Case) 1. It has a UNION that is CERTIFIED as the sole and exclusive bargaining agent of the employees. (certified by the employer) 2. There is a Collective Bargaining Agreement * A teacher is a regular employee… • at least 21 units of load • 3 school years of teaching  6 semesters  9 trimesters * If there is vagueness as to the 4 factors of employer-employee relationship, look into the factors of Independent Job Contractor. FLOATING STATUS is a situation where an employee of a contractor has been relieved from his post or affected by a termination or expiration 2

MIDTERM REVIEWER RELATIONS S.Y. 2008-2009 of a service contract is made to wait for a period of not exceeding 6 months for their employer, the contractor, to find a vacancy for their reassignment, otherwise, the said employees will be considered CONSTRUCTIVELY DISMISSED from the service. (Then, they can file illegal dismissal case.) ** There is no exact time wherein the contractor can be very sure of employment of workers upon the expiration of one's contract because vacancy is not always available. SEASONAL EMPLOYEES are regular employees insofar as the season for which they are hired is concerned. During the OFF SEASON, the employees are considered to be merely on leave of absence without pay. The employment is not terminated but merely suspended and when the peak season comes, the employees are the first to be called for work or service. (Visayan Stevedoring vs. CIR) ** They are like project employees. Upon the completion of the project to which the employee is hired, he is dismissed from service. His employment is co-terminus with the season for which he was hired. - Contrary tp Visayan Stevedoring case(Mercado vs. NLRC) ** Back to the definition under the Visayan Stevedoring Case, Phil. Tobacco vs. NLRC EMPLOYEES -vs- INDEPENDENT JOB CONTRACTORS EMPLOYEES In-house counsel Salaried sales agent being mad eto report to office regularly, given the space in the office

I.J.C. Counsel at a retainer fee Commissioned sales agent - may sell in any manner they like when the company does not interfere

LAWS ON THE EFFECTIVITY OF LAWS, RULES AND REGULATIONS 1. CIVIL CODE, ART. 2: "unless otherwise provided" 2. LABOR CODE, ART.5: 15 days after adoption 3. REVISED ADMINISTRATIVE CODE, SEC. 3 & 4: serve 3 verified copies of the rules and regulations at the National Administrative Registry at the UP Law Center © Hanna Magkasi 2008

LABOR PLM - LAW EXCEPTION TO COVERAGE 1. GOVERNMENT EMPLOYEES • Based on the Constitution, the law governing them is the Civil Service Law, and they are under the jurisdiction of the Civil Service Commission. • They are employees working in the different branches, departments, political subdivisions, agencies, and instrumentalities of the Government • Including thise in the GOCCs with original charter • They are not allowed to go on strike because it will disrupt public service; they have the right to self-organization • The following are not allowed to form unions because they are armed: AFP (navy, army, marine, airforce) PNP Firemen Jail Guards •

Subsidiaries and affiliated incorporated under the General Corporation law does not carry the original charter of the mother corporation.

2. INTERNATIONAL RELATIONS a) Employees of INTERNATIONAL ORGANIZATIONS / BODIES b) Employees of the DIPLOMATIC CORPS c) Employees of agencies of United Nations Organization d) Intergovernmental Organizations • Based on International Law, they are immune from suit. • For grievances: i. see charter or treaty first if there is a provision for the settlement of disputes; ii. otherwise, seek assistance with the DFA through diplomatic channels. 3. CORPORATE OFFICERS • The provisions of the by-laws contain the enumeration of corporate officers. • PD 902-A: cases of illegal dismissal filed by a corporate officer as a result of non-reelection or nonreappointment to the former position are INTRACORPORATE DISPUTES that fall under the jurisdiction of the S.E.C. 3

MIDTERM REVIEWER RELATIONS S.Y. 2008-2009 • It is the DUTIES which makes a person a corporate officer. The person should perform the duties of the corporate officer which makes his such, and within the jurisdiction of the S.E.C. • R.A. 799, NEW SECURITIES REGULATION CODE effective July 19, 2000: o The S.E.C. ha no jurisdiction over the intracorporate disputes; it is NOW vested onto the regular courts (RTC) o PD 902-A ceases o Under the Nacpil Case, if the person is also appointed by the board of directors, even if the position is not enumerated in the by-laws, he is deemed a corporate officer. 4. EMPLOYEES OF WATER DISTRICTS • They are employees of a quasi-public corporation, covered by the Civil Service Commission.

KINDS OF ARBITRATION 1. VOLUNTARY ARBITRATION • both parties agree to submit their dispute to an impartial 3rd person, whose resolution they both believe to be final and executory. • usually for the organized

2. COMPULSORY ARBITRATION • •

where the government takes part in the arbitration/resolution of the dispute. usually for the unorganized.

LEGAL HISTORY OF THE LABOR RELATIONS LAW 1. CA-103, October 29, 1936 Created the CIR 2. RA 875, June 17, 1953 Industrial Peace Act (Magna Carta of Labor)  Copied from the U.S. Labor Code: Anti-Injunction Act (Norris La Guardia Act of 1952) © Hanna Magkasi 2008

LABOR PLM - LAW NLR Act (Wagner Act of 1935; Taft and Hartley Act) 3. PD 21, October 14, 1972 Ad Hoc NLRC - temporary NLRC 4. PD 442, November 1, 1974 Labor Code  Made the NLRC permanent  NLRC is a tripartite administrative body with quasi-judicial functions attached to the Department of Labor and Employment only for policy and program coordination.  The DOLE cannot dictate how the arbiters and the NLRC will decide the case. 5. RA 6715, March 21, 1989 Herrera-Veloso law; The New Labor Relations Code (amended the Labor Code) 6. RA 9347, July 27. 2006 Strengthening the NLRC 7. RA 9481 Act on Self-Organization RA 9374 A. COMPOSITION OF THE NLRC 1 Chairman (from the public sector, the Presiding Commissioner of the 1st division) 23 Commissioners 7 from public sector (each becomes the Presiding Commissioner of the 2nd - 8th divisions) - nominated by the Sec. of Labor 8 from labor sector - nominated by federations/unions 8 from employer sector - nominated by employer confederations Labor Arbiters - nominated by Sec. of Labor ** all are appointed by the president B. QUALIFICATIONS CHAIRMAN/COMMISSIONERS • members of the bar

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practiced law for at least 15 years experience/exposure to labor management relations for at least 5 years

LABOR ARBITERS • members of the bar

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practiced law for at least 10 years 4

MIDTERM REVIEWER RELATIONS S.Y. 2008-2009

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LABOR PLM - LAW

experience/exposure to labor management relations for at least 5 years

NLRC • • a)

IN RA 9374 8 divisions, 3 members each When to sit en banc: only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches b) formulating policies affecting its administration and operations c) on temporary or emergency basis - allow cases within the jurisdiction of any division to be heard and decided by another division whose docket allows additional workload and such transfer will not expose litigants to unnecessary additional expense. • The concurrence of 2 commissioners of a division shall be necessary for the pronouncement of judgment or resolution.

© Hanna Magkasi 2008

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