Sanchez vs. Harry Lyons - Employer Stands On Higher Footing

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LABOR STANDARDS Labor Code of the Philippines Annotated by Ungos

COMMENT: 1.

Reason for Affording Protection to Labor Protection to labor is intended to raise the worker to equal footing with the employer and shield him from abuses brought about by the necessity for survival. 8  Sanchez vs. Harry Lyons  – employer stands on higher footing than the employee. First, there is greater supply than demand for labor. Second, the need for employment by labor comes from vital and even desperate necessity.  necessity.   he Civil Code – “In all contractual property or other 8  Article 24 of tthe relations, when one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental weakness, tender age or other handicap, the courts must be vigilant for his protection.”  protection.”   Extent of the Protection 8 

PRELIMINARY CHAPTER TITLE 1 GENERAL PROVISIONS Art. 1. Name of Decree. - This Decree shall be known as the “Labor Code of the Philippines.” COMMENT: 1.

Salient Features of the Labor Code a. It re-orients labor laws towards development and employment goals; b. It institutionalizes the NLRC to facilitate the speedy c. d.

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2.

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settlement of labor disputes; It establishes a new s ystem of workmen’s compensation; It establishes a system for employment of overseas workers and optimizes national benefit therefrom in the form of dollar remittances and improved skills and technology for our people; and It institutionalizes voluntary arbitration as a mode of settling labor disputes.

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Art. 2. Date of Effectivity.  – This Code shall take effect six (6) months after its promulgation. COMMENT: 1. 8  8 

The protective mantle is available not only against oppressive employees but also against unscrupulous union leaders. Heirs of Teodulo Cruz vs. CIR  – The union is an agent of its members for the purpose of securing for them fair and just wages and good working conditions and is subject to the obligation of giving the members as its principals all information relevant to union and labor matters entrusted to it. In the case, the union leadership was recreant in its duty towards the union members for failing to disclose the full situation of their judgment credit against respondent. Fair dealings, which is fiduciary in nature, arises from two factors: a. Degree of dependence of the individual employee on the b.

Effectivity of the Labor Code Took effect on November 1, 1974 Promulgated Promulgated on May 1, 1974

Art. 3. Declaration of Basic Policy.  – The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assurethe rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.

3.

union organization A corollary of the first; is the comprehensive power vested in the union with respect to the individual.

Limitations a. Protection to labor cannot be used as a pretext to defeat the rights and prerogatives of an employer. Thus, the validity of the dismissal of an employee found guilty of violating rules designed for the safety of the employees themselves, should be upheld because it protects labor and at the same time gives the employer its due. b. Protection to labor cannot be used as an excuse to distribute charities at the expense of an employer. Courts cannot render

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 judgment on the basis of sympathies and inclinations, and consequently, distribute charities at the expense of the employer, because our constitutional government assures the latter against deprivation of property except in accordance with the statues and supplementary equitable principles. c. Protection to labor is not available where both parties have violated the law because in such a case, neither party is entitled to protection.

Art. 4. Construction in Favor of Labor.  – All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations shall be resolved in favor of labor. COMMENTS: 1.

Reason for the Law

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Such RRs shall become effective 15 days after announcement of their adoption in newspapers of general circulation.   A grant of quasi-legislative power to the DOLE and other gov’t agencies charged with the administration and enforcement of the Labor Code or any part thereof.   8  POEA 8  National Wages and Productivity Commission 8  Employees’ Compensation Commission 8  NLRC   Limitation: cannot enlarge or amend the provisions of the Labor Code    Effectivity of LC IRRs: February 3, 1975   ART. 6.  Applicability.  All rights and benefits granted to w orkers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural.   The LC applies only to employees in the private sector , whether

Doubts arewho resolved in favor laborhave in line with that those have less in life of should more in the law.principle 8  When conflicting interest of labor and capital are weighed on the scales of social justice, the heavier influence of the latter must be counter-balanced by the sympathy and compassion the law must accord the underprivileged worker. 8  A contrary ruling would be a dilution and emasculation of the protection to labor clause of the Constitution. Applicability 8  Article 4 applies only when there is a doubt. 8  When there is no doubt, there is no room for construction. 8  Where the evidence is clear that that an employee is not an asset

but a liability that delays production and sets a bad example to his co-workers, the courts should not hesitate to confirm or order his dismissal. 3. Limitation 8  The fundamental principles of due process should sternly be applied on both the poor and the rich in order to attain proper  justice. 8  The benevolent policy of the law towards te te employee does not oblige courts to be unjust and unfair to employers. . ART. 5. Rules and Regulations. The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary IRRs.

       

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agricultural or non-agricultural. Government employees: Civil Service Law GOCCs created by special charter: Civil Service Law GOCCs organized under the Corporation Law: LC To be covered by the LC, there must be employer-emp loyee relationship. E-E criteria: (Viana v. Al-LAgadan) Al-LAgadan) 1. Selection and engagemen t of employee 8  Hiring 8  Written contract, not necessary 8  An understanding that one is to render service to the other,

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and a recognition them of the right of one to order and control the other is by sufficient Payment of wages 8  Wages – remuneration of earnings 8  Considered wages if paid in consideration of: a) The labor being performed b) The results or finished work Power of dismissal 8  Person hired is subjected to the rules of discipline of the employer Power to control the employee’s conduct 8  Most important element

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Control test: the person for whom the services are performed reserves the rights to control not only the end to be achieved but also the means to be used in reaching such end. control should be on both the means and the the end end 8  The control Insurance agents: 1. Salaried personnel who keep definite hours and work under the control and supervision of the company – E-E relationship exists 2. Registered representatives who work on commission basis  – no E-E relationship The nature of the relationship between a company and its collecting agents depends on the circumstances of each particular relationship. There exists an E-E relationship between a corporation and an in-house lawyer as they are paid regular salaries E-E relationship exists between a school and its professors. The school has control over the work of the professors and the latter are compensated for their services by wages or salaries rather than by profits. No E-E E-E relationship exists between working students and the colleges or universities. Such rule applies only to labor controversies, not to civil suits for damages arising from a tortuous act of a working student. E-E relationship between resident physicians and training hospitals exists, unless: 1. There is training agreement between them 2. The training program is duly accredited or approved by the appropriate government agency E-E relationship exists between hospitals and their consultants only for purposes of allocating responsibility in medical negligence cases E-E relationship between a jeepney owner and driver under the boundary system exists. There is no E-E relationship between a shipping company and the workers of stevedoring or arrastre company, unless the same in fact acted as agent only. An E-E relationship is created by contract and cannot be forced upon either party simply upon order of a labor arbiter.

 

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Any competent and relevant evidence may be admitted as proof of E-E relationship. The E-E relationship is deemed suspended in in the ff cases: 1. When the employee is under suspension, either as a disciplinary or as proceedings a preventive against measure pendency ofpenalty a disciplinary himduring the 2. During off season, in case of regular seasonal employees 3. When fishing vessels are drydocked or undergoing repairs 4. When an employee is laid-off for a period not exceeding 6mos due to suspension of business operations 5. When an employee fulfills a civic or military duty Termination of E-E relationship: 1. Dismissal 2. Resignation or abandonmen t of employment 3. Expiration of employment period Factors that do not interrupt employment relationship: 1. 2. 3.

Leave of absence with pay Illegal dismissal Strike

CHAPTER II Emancipation of Tenants Art. 7. Statement of objectives.Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation with the emancipation of the tiller of the soil from his bondage. Art. 8. Transfer of lands to tenant-workers.Being a vital part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of a portion constituting a family-size farm of five (5) hectares, if not irrigated and three (3) hectares, if irrigated. In all cases, the land owner may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it.

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Art. 9. Determination of land value.For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (2-1/2) times the average harvest of three (3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations. In case of default, the amortization due shall be paid by the farmers’ cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him.

a.

To promote and maintain a state of full employment through improved manpower training, allocation and utilization;

b.

To protect every citizen desiring to work locally or overseas by securing for him the best possible terms and conditions of employment;

c. To facilitate a free c hoice of available employment by persons seeking work in conformity with the national interest; d.

To facilitate and regulate the movement of workers in conformity with the national interest;

e.

To regulate the employment of aliens, including the establishment of a registration and/or work permit system;

The government shall guarantee such amortizations with shares of stock in government-owned and government-controlled corporations.

Art. 10. Conditions of ownership.No title to the land acquired by the tenant-farmer under Presidential Decree No. 27 shall be actually issued to him unless and until he has become a full-pledged member of a duly recognized farmers’ cooperative.

f. To strengthen the network of public employ ment offices and rationalize the participation of the private sector in the recruitment and placement of workers, locally and overseas, to serve national development objectives; g.

Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government in accordance with the provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing laws and regulations. 

To insure careful selection of Filipino workers for for overseas employment in order to protect the good name of the Philippines abroad.

Title I RECRUITMENT AND PLACEMENT OF WORKERS Chapter I GENERAL PROVISIONS

Art. 11. Implementing agency .The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this Chapter.

BOOK I PRE-EMPLOYMENT Art. 12. Statement of objectives.It is the policy of the State:

Art. 13. Definitions.   a.

"Worker" means any member of the labor force, whether employed or unemployed.

b.

"Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for

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