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LABOR LAWREVIEW
My NotesAL L. BERONQUE, CPA
LABOR STANDARDS
I. THE APPLICABLE LAWS
PD 442 AS AMENDED
A decree instituting a labor code, thereby revisingand consolidating labor and social laws to affordprotection to labor, promote employment andhuman resources development and ensureindustrial peace based on social justice.
Signed into law May 1, 197 and too! effect "
months after in accordance with Article # becauseaccording to $ple, %the code was designed to bea dynamic and growing body of laws which willreflect continually the lessons of practicalapplication and e&perience.' As it happened, thecode was e&tensively amended even before itwent into effect on (ovember 1,197.
)oo! effect on (ovember 1, 197. Since then, the
*abor +ode has undergone several amendments.)he most substantial amendment is A "71-.
t is the law governing *abor Standards and
elations.
Significance/ 0efore the effectivity of the labor
code, there was no provision on the terms andconditions of employment.
CONCEPT OF LABOR
n a general sense, a job, wor! or service.
n a particular sense, it is the e&ertion of human
being by his mental or physical effort towards
production of goods or services. )echnically, a wor!ing force or wor!ingmen.
THREE FIELDS OF LABOR LAWS
1. *A0$ S)A(AS
Minimum terms and conditions fi&ed by law.
minimum terms, benefits and conditions of
employment which employees are legally entitledto and employers must comply with.
)he minimum re2uirements prescribed by
e&isting laws, rules and regulations and otherissuances relating to wages, hours of wor!, costof living allowances and other monetary andwelfare benefits, including those set byoccupational safety and health ha3ards. 4Section7, ule , ules on the isposition of *aborStandards +ases 5 September 1", 1967
8&. $vertime pay, night differential pay,premium pay, minimum wage
0oo! :
#. *A0$ 8*A)$(S
efers to the interactions between the employers and
employees or their representatives and the mechanism bywhich the employment standards are negotiated, adjustedand enforced.
Mar2ue3/ process the terms, benefits and conditions to
improve the same through collective bargaining ornegotiation.
;. S$+A* A( S*A)$(S
*egislations that grant benefits which apply to wor!ers
who are unable to wor! on account of sic!ness ordisability or not at wor!.
efers to a broader category of law that protects or
promotes the welfare of society or segments of it infurtherance of social justice.
ntended to substitute income
8&. Social Security Act, etirement *aw, ?hil@ealth
*A0$ S)A(AS 5 employee is actually at wor!S$+A* A( S*A)$( 5 employee is not at
wor! or unable to wor!.
NEW TAX RELIEF LAW Most recet soc!"# "$
%e#&"re #e'!s#"t!o
FOUR S(STEMS OF LABOR
1. S*A:84not recogni3ed in the phils
efers to the e&traction of wor! or services from any
person by means of enticement, violence, intimidation orthreat, use of force or coercion, including deprivation of
freedom, abuse of authority or moral ascendancy, debtbondage or deception. 4$ "-B S#BB not recogni3ed in the ?hils
#. S8=$M4not recogni3ed in the phils
8nforced labor of serfs on the fields of the landowners, in
return for protection and the right to wor! on their leasedfields.
A little better off than slavery.
;. A)SA(S@? $ (8?8(8() +$()A+)$S@?4recogni3ed by *abor +ode
)he same with modern independent contractorship
wherein an independent contractor is engaged in abusiness separately distinct from the principal, theperformed job, wor! or service, and wor!s according tohis own means and methods, free from the control anddirection of the principal e&cept as to the results thereof.
A free person who offers his services to others subject to
nobodyCs will
. 8 SS)8M 4recogni3ed by *abor +ode
)he same with modern employeremployee system where
there is an employee under the control and supervision ofan employer as to the means, manner or method of whichthe wor! is to be accomplished including the result thereofand is paid for the wor! done in terms of wage.
A person offers his services to another under an
employment contract for which such service is paid bywages.
If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, forevery victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle SUN TZU
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OMNIBUS RULES "s ")e$e$ *+ DO NO. -S--/, DO NO. 401 S21, "s ")e$e$ *+DO NOS. 40A01, 40B01, 40C01 "$ 40C0
@ave the force and effect of laws. ?rovided,
however, that these rules and issuances will note&pand the law or strip the law. $therwise, underthe rules on statutory construction, these will beconsidered void.
)he $*8 is the lead agency in enforcing labor
laws and it possesses rulema!ing power in theenforcement of the +ode.
0ut a rule or regulation that e&ceeds the
departmentCs rulema!ing authority is void. )herulema!ing power is e&ceeded when theimplementing rule changes, wittingly orunwittingly, the content or meaning of the lawwhich the rule aims to implement. )heimplementing rule, on other words, must be
subordinate to the law itself.
8DAM?*8/ ?olicy nstruction (o. -66 4issued byformer Sec. =ran!lin rilon has been declared voidby the Supreme +ourt because this has e&pandedArt. 6; of the *abor +ode on 8mployment of @ealth?ersonnel by erroneously interpreting that healthemployees are entitled to a %full wee!ly wage for 7days' if they have completed the BhourE-daywor!wee!.
SUPREME COURT DECISIONS
Article 8 CC. Fudicial decisions applying orinterpreting the laws or the +onstitution shall form
part of the legal system of the ?hilippines.
BASES AND LIMITATIONS IN THE ENACTMENTOF LABOR LAWS
BASES
1. ?$*+8 ?$eneral eneral welfare clause deemed written into theemployment contract.
?ower to regulate personal liberty or property
rights. *abor +ode contains several provisions that affect
life and property.
8&le/
Article 263 LC
4g
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)e&tboo!sEreviewers in labor law
$pinions of $*8
issued by $*8
EFFECTIIT( OF LABOR LAWS, RULES ANDRE3ULATIONS
1. ART. 5. Rules and regulations. - )heepartment of *abor and other government agenciescharged with the administration and enforcement ofthis +ode or any of its parts shall promulgate thenecessary implementing rules and regulations. Suchrules and regulations shall become effective fifteen41- days after announcement of their adoption innewspapers of general circulation.
?ublication is indispensable. ules and
regulations are still valid even if no publication,however, it is unenforceable.
2. ART. 2 NCC. *aws shall ta!e effect after fifteendays following the completion of their publicationeither in the +fficial ,a-ette, or in a newspaper of
general circulation in the ?hilippines, unless it isotherwise provided. 4As amended by 8$ #BB.
1. E.O. 2-2 A$)!!str"t!5e Co$e o& t6eP6!#!77!es
Sec& "8& .hen La/s (a0e Effect& 1*aws shall ta!eeffect after fifteen 41- days following the completionof their publication in the $fficial >a3ette or in anewspaper of general circulation, unless it isotherwise provided.
Sec& "#& rospectivity& 1*aws shall have prospectiveeffect unless the contrary is e&pressly provided.Sec& 2%& nterpretation of La/s and Administrative
ssuances& 1 n the interpretation of a law or
administrative issuance promulgated in all the officiallanguages, the 8nglish te&t shall control, unlessotherwise specifically provided. n case of ambiguity,omission or mista!e, the other te&ts may beconsulted.
Sec& 2"& o mplied 'evival of 'epealed La/&1
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representations from employer and employee indecision and policyma!ing bodies of the governmentare necessary. )his is also in affirmation of the roleof the State as the guardian of the peopleCs rightsand the constitutional provision on protection tolabor.
8&.
+reation of )
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Art 22e. %8mployer' includes any person acting inthe interest of an employer, directly or indirectly.)he term shall not include any labor organi3ation orany of its officers or agents e&cept when acting asemployer.
Art 22&. %8mployee' includes any person in the
employ of the employer. )he term shall not belimited to the employees of a particular employer,unless this code so e&pressly states. t shall includeany individual whose wor! has ceased as a result ofor in connection with any current labor dispute orbecause of any unfair labor practice if he has notobtained any other substantially e2uivalent andregular employment.4e&panded definitionCOMMENTS?
8M?*$8
may be A(7'AL +' 7'9CAL, a single
proprietorship, a partnership or a corporation.
)he >overnment is an employer within the meaningof the *abor +ode in *abor Standards.
So, a government agency with an original chartercontracts with a security agency to supply securityguards, and this security agency is unable to pay thewages of its guards.
Q?s principal government agency considered jointlyand severally liable with the security agencyJ
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Invest:ent )lanning Cor+ v. SSS; %%&%!a:-6io vs. NLRC
R 7#7'4 "4&'1&("
$( %A=A+' 0ASS
%)he nature of their employment i.e %pa0iao (ES(, the petitioner
can li!ewise be said to be an employee of respondentcorporation because she had served the company for si&years before her dismissal, receiving chec! vouchersindicating her salariesE benefits, 1;th month pay, bonusesand allowances as well as deductions and SSS contributions.t is therefore apparent that petitioner is economicallydependent on respondent for her continued employment inthe latterCs line of business. %
If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, forevery victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle SUN TZU
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Q? @ow to determine that a person is economicallydependentJA? 1. (umber of years in the company
#. eported to SSS, good indicator of treatinghim as anemployee.;. egistered in the payroll. dentification card
-. +ompany uniform
PRINCIPAL0A3ENT RELATIONSHIP
Art NCC? 0y the contract of agency, a personbinds himself to render some service or to dosomething in representation or on behalf of another,with the consent or authority of the latter. t is the principal who selects the agent
An agent is compensated under the contract of
agency for services rendered. An agent is disciplined by the principal because
former is under the authority of the latter. )he principal controls the means and methods of
the wor! of an agent.
Kelate above to the fourfold testL
)here is only one party in a principalagent
relationship, the agent is merely an e&tension ofthe principal. )hey are regarded as one. So ifthere is a contractor relationship, it is notbetween ; parties but is between the principal orthe agent as an e&tension of the principal and theother party.
Note? )o ma!e a distinction between a principalagent relationship and that of an employeremployeerelationship, the fourfold test will not be usedbecause the 1 agent is selected by the principal #
compensated by the principal ; and mostoftentimes, the principal also substitutes his own
judgment for that of the agent.
PRINCIPAL0CONTRACTOR FREE ARTISAN
RELATIONSHIP
principal selects the contractor
contractor is compensated for services rendered.
)he contractor is otunder the discipline of the
principal. the contractor is ot under the control of the
principal. )he definition says that aside fromengaging in a business separately distinct fromthe principal, to perform job, wor! or service,
according to his own means and methods, freefrom control and direction of the principal e&ceptas to the results thereof.
Krelate above with fourfold testL
this relationship e&ists also in situations under art
1B"1B9 *+. Article 171;, +ivil +ode/ 0y contract for a piece
of wor! the contractor binds himself to e&ecute apiece of wor! for the employer, in considerationof a certain price or compensation. )hecontractor may either employ only his labor ors!ill, or also furnish the material.
CHIEF CHARACTERISTICS OF EMPLO(EE
1. 8conomic ependence on the person hiring theservices.
8mployee cannot bargain the terms and
conditions of employment. Medical doctors, lawyers, dentists, engineers in
the e&ercise of their profession offer specialservices, the person engaging their services
cannot e&ercise control over the means and methods ofaccomplishing the wor! e&cept the results thereof. )heyare considered as independent contractors not needingprotection from the *abor +ode.
1. Subordination in his wor! relationship
8mployer e&ercises control not only the means and
methods but also the results thereof.
III. RIGHT TO HIRE
NATURE? RI3HT OR PRERO3ATIE
Strictly spea!ing, the employer has no right to hire a
person as his employee. )he matter of selecting a personas oneCs employee is more appropriately described as aprerogative. t is not a right in which you can go to courtand enforce the right to hire a person, otherwise it willviolate the constitutional provision against involuntaryservitude, if one is compelled to be anotherCs employee.(o person can be compelled against his will to do an actwhether legal or illegal. )hus, an employer cannot go tocourt and get an injunction to compel a person to becomehis employee. f at all, the employee can only e&ercisethe prerogative to invite that person and to hire him if heso desires. n that sense, the right to hire is essentially a)""'e)et 7rero'"t!5e.
MA(A>8M8() ?8$>A):8
SMC v. O+le
%8&cept as limited by Special *aws, an employer is free toregulate, according to his own discretion and judgment, allaspects of employment, including hiring, wor! assignments,wor!ing methods, time, place and manner or wor!, tools tobe used, processes to be followed, supervision of wor!ers,
wor!ing regulations, transfer of employees, wor! supervision,layoff of wor!ers and the discipline, dismissal and recall ofwor!ers.'4$(8 >@) $= A( 8M?*$8
*M)A)$(S $( MA(A>8M8() ?8$>A):8
1. law#. contract or +0A;. principles of fair play and justice4a3ucena
>@)S $= MA(A>8M8()
1. ight to $#. ight to prescribe rules;. ight to select employees
. )ransfer or discharge of employees
EXERCISE OF RI3HT OR PRERO3ATIE ABSOLUTE
(o, it is a mere prerogative subject to limitations provided
by e2uitable principles of law
LE3AL LIMITATIONSPROHIBITIONS PRIOR TOHIRIN3
A. UNDER THE LABOR CODE
. A e)7#o+er !s 7ro6!*!te$ &ro) reG@!r!' "s "co$!t!o o& e)7#o+)et t6"t " %o)" e)7#o+ee s6"##ot 'et )"rr!e$.
Art 1. "tiulation against !arriage& t shall beunlawful for an employer to re2uire as a condition ofemployment or continuation of employment that a womanemployee shall not get married, or to stipulate e&pressly ortacitly that upon getting married, a woman employee shall bedeemed resigned or separated, or to actually dismiss,discharge, discriminate or otherwise prejudice a womanemployee merely by reason of her marriage.
If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, forevery victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle SUN TZU
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8mployment which shall ensure observance of theabove re2uirements.
@ours of
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P )he employer shall formulate andimplement, subject to the approval and supervisionof competent authorities, a continuing program fortraining and s!ills ac2uisition of the child.n the above e&ceptional cases where any such childmay be employed, the employer shall first secure,before engaging such child, a wor! permit from theepartment of *abor and 8mployment which shall
ensure observance of the above re2uirements.)he epartment of *abor and 8mployment shallpromulgate rules and regulations necessary for theeffective implementation of this Section.'
RE)9BLIC ACT NO. ('4%
An act providing for the elimination of the worstforms of child labor and affording stronger protectionfor the wor!ing child, ")e$!' &or t6!s 7@r7oserepublic act no. 7"1B, as amended, otherwise !nownas the %special protection of children against childabuse, e&ploitation and discrimination act'
Section 1. Section # of epublic Act (o. 7"1B, asamended, otherwise !nown as the %Special?rotection of +hildren Against +hild Abuse,8&ploitation and iscrimination Act', is herebyamended to read as follows/
Sec. #. Section 1# of the same Act, as amended,ishereby further amended to read as follows/
%Sec. 2. E)7#o+)et o& C6!#$re5 +hildren belowfifteen 41- years of age shall not be employede&cept/
%1
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%i nvolves the manufacture or handling ofe&plosives and other pyrotechnic products.'
Section -. Section 1 of the same Act is herebyamended to read as follows/
8Sec. 4. Pro6!*!t!o o t6e E)7#o+)et o&
C6!#$re ! Cert"! A$5ert!se)ets. 5 (o childshall be employed as a model in any advertisementdirectly or indirectly promoting alcoholic beverages,into&icating drin!s, tobacco and its byproducts,gambling or any form of violence or pornography.'
De+art:ent Or6er No. #13"2 series of '""2R-les an6 reg-lations i:+le:enting re+-bli5 a5tno. ('4% a:en6ing r.a. 7#%"$ as a:en6e6
+@* *A0$
efers to any wor! or economic activity performedby a child that subjects himEher to any form ofe&ploitation or is harmful to hisEher health and safety
or physical, mental or psychosocial development.
+@A?)8 #?rohibition on the 8mployment of +hildren
S8+)$( . >eneral ?rohibition. R 8&cept asotherwise provided in these ules, no child below 1-years of age shall be employed, permitted orsuffered to wor!, in any public or privateestablishment.S8+)$( -.?rohibition on the8mployment of +hildren in
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Q@"#!&!e$ I$!5!$@"# %!t6 " D!s"*!#!t+shall meanan individual with a disability who, with or withoutreasonable accommodations, can perform theessential functions of the employment position thatsuch individual holds or desires
Sec. 12. D!scr!)!"t!o o E)7#o+)et. R (oentity, whether public or private, shall discriminate
against a 2ualified disabled person by reason ofdisability in regard to job application procedures,the hiring, promotion, or discharge of employees,employee compensation, job training, and otherterms, conditions, and privileges of employment.)he following constitute acts of discrimination/
4a *imiting, segregating or classifying a disabledjob applicant in such a manner that adverselyaffects his wor! opportunities
4b Hsing 2ualification standards, employment testsor other selection criteria that screen out or tend toscreen out a disabled person unless such standards,tests or other selection criteria are shown to be jobrelated for the position in 2uestion and are
consistent with business necessity
4c Htili3ing standards, criteria, or methods ofadministration that/
41 have the effect of discrimination on the basis ofdisability or
4# perpetuate the discrimination of others who aresubject to common administrative control.
4d ?roviding less compensation, such as salary,wage or other forms of remuneration and fringebenefits, to a 2ualified disabled employee, byreason of his disability, than the amount to which a
nondisabled person performing the same wor! isentitled
4e =avoring a nondisabled employee over a2ualified disabled employee with respect topromotion, training opportunities, study andscholarship grants, solely on account of the latterTsdisability
4f eassigning or transferring a disabled employeeto a job or position he cannot perform by reason ofhis disability
4g ismissing or terminating the services of adisabled employee by reason of his disability unlessthe employer can prove that he impairs the
satisfactory performance of the wor! involved to theprejudice of the business entity/ ?rovided, however,)hat the employer first sought to providereasonable accommodations for disabled persons
4h =ailing to select or administer in the mosteffective manner employment tests whichaccurately reflect the s!ills, aptitude or other factorof the disabled applicant or employee that suchtests purports to measure, rather than the impairedsensory, manual or spea!ing s!ills of such applicantor employee, if any and
4i 8&cluding disabled persons from membership inlabor unions or similar organi3ations.
-. No *" s6"## e)7#o+ c"s@"# or o re'@#"r7ersoe# o too #e't6+ 7ro*"t!o"r+7ersoe# ! t6e co$@ct o& !ts *@s!ess!5o#5!' *" $e7os!ts
REPUBLIC ACT NO. /-3eer"# B"!' L"%s o& 2
Sec .4. +onsistent with the provisions of epublicAct (o. 1B-, otherwise !nown as the an0s Secrecy
La/, no ban! shall employ casual or non regular personnel ontoo lengthy probationary personnel in the conduct of itsbusiness involving ban! deposits.
RA -2 At!0tr"&&!c!' o& Persos Act o& 21
4d Force$ L"*or and Slavery refer to the e&traction ofwor! or services from any person by means of enticement,violence, intimidation or threat, use of force or coercion,including deprivation of freedom, abuse of authority or moralascendancy, debtbondage or deception.
Sec. . Acts of )raffic!ing in ?ersons. t shall be unlawfulfor any person, natural or juridical, to commit any of thefollowing acts/4a )o recruit, transport, transfer harbor, provide, or receivea person by any means, including those done under theprete&t of domestic or overseas employment or training orapprenticeship, for the purpose of prostitution, pornography,se&ual e&ploitation, &orce$ #"*or, slavery, involuntaryservitude or debt bondage
4b )o introduce or match for money, profit, or material,economic or other consideration, any person or, as providedfor under epublic Act (o. "9--, any =ilipino woman to aforeign national, for marriage for the purpose of ac2uiring,buying, offering, selling or trading himEher to engage inprostitution, pornography, se&ual e&ploitation, &orce$ #"*or,slavery, involuntary servitude or debt bondage
INOLUNTAR( SERITUDE
Art. /1. (o contract which practically amounts toinvoluntary servitude, under any guise whatsoever, shall bevalid.
REISED PENAL CODE
Art 2/2. S#"5er+. )he penalty of prision mayor and a fine ofnot e&ceeding 1B,BBB pesos shall be imposed upon anyonewho shall purchase, sell, !idnap, or detain a human being forthe purpose of enslaving him.
f the crime be committed for the purpose of assigning theoffended party to some immoral traffic, the penalty shall beimposed in its ma&imum.
Art 2/1. EJ7#o!t"t!o o& c6!#$ #"*or.0 the penalty of prisioncorreccional in its minimum and medium periods and a finenot e&ceeding -BB pesos shall be imposed upon anyone, whounder the prete&t of reimbursing himself of a debt incurred byan ascendant, guardian or person entrusted with the custody
of a minor, shall, against the latterCs will, retain him in hisservice.
Art 2/4. Ser5!ces re$ere$ @$er co)7@#s!o !7"+)et o& $e*t.0 )he penalty of arresto mayor in itsma&imum period to prision correccional in its minimum periodshall be imposed upon any person, who, in order to re2uire orenforce the paymebt of a debt, shall compel the debtor towor! for him, against his will, as household servant or farmlaborer.
Art 2/. EJ7#o!t"!o o& )!ors.0 the penalty of prisioncorreccional in its minimum and medium periods and a finenot e&ceeding -BB pesos shall be imposed upon/
1. Any person who shall cause any boy or girl under 1"
years of age to perform any dangerous feat ofbalancing, physical strength or contortion.
#. Any person, who, being an acrobat, gymnast,ropewal!er, diver, wild animal tamer, or circusmanager or engaged in a similar calling , shallemploy in e&hibitions of this !inds, children under1" years of age who are not his children ordescendants.
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f an employer accords employees the same positionand ran!, the presumption is that these employeesperform e2ual wor!. )here is no evidence thatforeignhires perform #-U more efficiently oreffectively than localhires. 0oth groups have similarfunctions and responsibilities, which they performunder similar conditions.
)he %dislocation factor' and the foreignhires %limitedtenure' also cannot serve as valid bases for thedistinction in salary rates. )he dislocation factor andlimited tenure affecting foreignhires are ade2uatelycompensated by certain benefits accorded to themwhich are not enjoyed by the localhires such ashousing, transportation, shipping cost, ta&es, andhome leave travel allowance.
A* ?A) $= A( 8M?*$88CS 84deductibility
1. Must be customarily furnished by the employer tothe employee
#. Must be charged at fair and reasonable valueand
;. )he provision on deductible facilities must bevoluntarily accepted by the employee in writing.
More significantly, the food and lodging, or theelectricity and water consumed by the petitionerwere not facilities but supplements& A benefit orprivilege granted to an employee for theconvenience of the employer is not facility. )hecriterion in ma!ing a distinction between the two notso much lies in the 0ind )food! lod4in4* but the
purpose. +onsidering therefore that hotel wor!ers
are re2uired to wor! different shifts and are e&pected to beavailable at various odd hours, their ready availability is anecessary matter in the operations of a small hotel, such asthe private respondentCs hotel.'
f the re2uisites are all present, that facilities may ta!e
the place of the cash payment of the employeeCs wage.)his is one e&ception of the re2uirement that anemployeeCs wage shall be paid in legal tender, you cannotpay it in !ind.
Art 97f provides that %wage' includes the fair and
reasonable value, as determined by the Secretary of*abor, of board, lodging, or other facilities customarilyfurnished by the employer to the employee.
)his means that an employer may provide, for instance, foodand housing to his employees but he may deduct their valuesfrom the employeesC wages.
S)8?S )$ 8)8M(8 = A =A+*) $ ($)/
ascertain the purpose
for whose benefitJ 8mployer or employeeJ f for employee, is it deductible or notJ4apply the ;
re2uisites for deductibility
SUPPLEMENTS= $e&!e$
AtoF3Big We6ge Assn v. AtoF3Big We6ge Co.(7 +*il '(2
%SH??*8M8()S constitute e&tra remuneration or specialprivileges or benefits given to or received by the laborersover and above their ordinary earnin4s or /a4es.'
=A+*)8S :S. SH??*8M8()S
=acilities are wagedeductible, supplements are not.
)he classification of an item of e&pense as a facility or asupplement will depend on the 7@r7ose and not on the!ind.
So if it is principally or mainly for the benefit of the
employee, classify as facilities, and the fair and reasonablevalue of that can be considered as deductible from theemployeeCs wage.
EMPLO(EE BENEFITS
WOR:ERS LIEN
Art // CC? )he laborerCs wages shall be a lien on thegoods manufactured or the wor! done.
Re"so? 0y virtue of this new lien, the laborers who are notpaid by an unscrupulous and irresponsible industrialist ormanager may by legal means have the goods manufacturedthru the sweat of their brow sold, and out of the proceeds gettheir salary, returning the e&cess, if any Keport +ode+ommission, p.1L
3oo$s M"@&"ct@re$ or t6e %or $oe efers to personal property, not real property. And even
here, the lien is allowed the laborer only if he was directlyemployed or engaged by the owner. )he rule does notapply if contractor, with men under him, had underta!enthe job.
EXEMPTION FROM EXECUTION OR ATTACHMENT
Art / CC? )he laborerCs wages shall not be subject toe&ecution or attachment, e&cept for debts incurred for food,shelter, clothing and medical attendance.
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)he rule applies even when the wages are still in
the possession of the employer whose propertiesmay have been attached.
S"#"r!es $@e to 'o5er)et e)7#o+ees c"ot*e '"r!s6e$ *e&ore t6e+ "re 7"!$ to t6e
e)7#o+ees cocere$ *ec"@se?
1. )he incentive for wor! would be lost#. >enerally, the state cannot be sued and;. =inallly, technically, before disbursements, the
money still belongs to the government.
Art /- CC? )he employer shall neither sei3e norretain any tool or other articles belonging to thelaborer.
(o sei3ure or retention by the employer
METHODS OF FIXIN3 COMPENSATION
A. )ime Kdaily and monthly paid wor!ersL0. +ommission
+. Fob or tas! basis. ?iecerate basis Kpayment by resultsL
M?$)A(+8 $= M8)@$S $= =D(>+$M?8(SA)$(
(ot determinative of employeremployee
relationship. )here are certain laws which e&clude certain
employees from enjoying certain benefitsdepending on the methods of fi&ing theircompensation.
8&. 1;thmo. ?ay which e&cludes job or tas! basis
and purely on commission employees, under Art6#, wor!ers paid by results are e&empted fromovertime pay, service incentive leave, etc.
4conditions of employment.
WA3E= $e&!e$Art -/& 8 paid to employee shall mean the
remuneration or earnings, however designated,capable of being e&pressed in terms of money,whether fi&ed or ascertained on a t!)e, t"s,7!ece, or co))!ss!o *"s!s, or ot6er )et6o$o& c"#c@#"t!' t6e s")e, which is payable by anemployer to an employee under a written orunwritten contract of employment for wor! doneor to be done, or for services rendered or to berendered and includes the fair and reasonablevalue, as determined by the Secretary of *abor,
of board, lodging, or other facilities customarilyfurnished by the employer to the employee.
A. TIME SPENT
$nce the agreed period of wor! is completed, the
compensation is earned and becomes dueregardless of result. )he standard forms ofcompensation based on time spent are salaries orwages by the day, wee!, or monthly.
2 CLASSIFICATIONS OF EMPLO(EES BASED ONTIME SPENT
1. ailypaid#. Monthlypaid
. DAIL(0PAID EMPLO(EES
)hose employees who are paid on the days
actually wor!ed e&cept unwor!ed regularholidays when they are paid their basic wage ifthey are present or a leave with pay on thewor!ing day preceding the regular holiday.
%(o wor! no pay'
Advantage/ =le&ibility in the reduction of wor! force fro
any given period according to circumstances such as slac!in demand, nonavailability of materials, etc.
8M8 =$ $
+ompressed wor!wee!
educe wor!ing days
)emporary suspension of operations of not more than "
months 4no wor! no pay
2. MONTHL(0PAID EMPLO(EES
?aid everyday of the month including unwor!ed rest days,
special days and regular holidays. t is the standardcompensation rate for managerial personnel,professionals, administrative employees and other whitecollar wor!ers, including clerical employees and highergrade s!illed wor!ers.
A:A()A>8/ relative economy in record!eeping, and
higher morale of employees resulting from association ofthis method with tenure and permanency.
B. >OB OR TAS: RATE
A flat or fi&ed sum for each particular job or tas!
completed, without regard to the number f hours actuallyspent in the performance or completion.
Appropriate only on the following conditions/
a.b.
C. PIECE WOR:, OR B( THE OUTPUT IN TERMS OFWOR: UNITS
a. 8/ 8ncourage the wor!er to be more
productive. =i&ed percentage is effected on sales.
TA:E NOTE? 8M?*$88S 8
a. wage increaseb. resolving wage distortion
RA /2/
WA3E RATIONALIATION ACT
,#&RTANC( this law which amended the labor code willtell us the different government agencies involved in thefi&ing of wages and also how to resolve wagedistortion4procedure in case wage distortion results in fi&ingwage
?H?$S8/ was intended to rationali3e wages
=S), by providing for fulltime boards to police wagesroundthecloc!.
S8+$(, by giving the boards enough powers to achieve thisobjective.
POLICIES OF THE STATE
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1. )o rationali3e the fi&ing of the minimum wage.!)7ort"t
t has been rationali3ed because article 1# of
this A provides for the standards and criteriathat should guide the agency of governmentwhen it comes to fi&ing the minimum wage. t isnoted that under the standard criteria, that thecongress has tried to weigh the factors involvingthe employers, as well as the factors involvingthe laborers when it comes to fi&ing ofemployeeCs wage in order to rationali3e it.
0efore A "7#7, it was only MalacaVang through
a ? that dictates how much should be theminimum wage in the ?hilippines. Most oftenthan not, those employers in the farflung areasare adversely affected because the fi&ing ofminimum wage is not rationali3ed. t does notta!e into consideration, for e&le, thecapitali3ation of the employer, the profite&pected, the cost of living in a particular area.
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legislatureCs door at every turn. )he +ourtCsopinion is that if A "7#7 intended the boardalone to set floor wages, the Act would have noneed for a board but an accountant to !eep trac!of the latest consumer price inde&, or betterwould have +ongress done it as the need arises,as the legislature, prior to the Act has done so foryears.
Co)7os!t!o /
Art 1## *+ 4As amended by epublic Act (o.
"7#7, Fune 9, 1969.
1. +hairmanegional irector of $*8
#. :ice+hairmenegional irector of (8Aegional irector of )
;. )wo 4# members each from wor!ers and
employers sectorswho shall be appointed by the ?resident ofthe ?hil, upon the recommendation of the Secretaryof $*8, to be made on the basis of the list ofnominees submitted by the wor!ers and employerssectors, respectively.
SecretariatAssisting each 0oard
PROHIBITION A3AINST IN>UNCTION
Art 2 LC. &ro'ibition Against ,n/unction.(opreliminary or permanent injunction or temporaryrestraining order may be issued by any court,tribunal or other entity against any proceedings
before the +ommission or the egional 0oards 4Asamended by epublic Act (o. "7#7, Fune 9, 1969.
NWPC 3@!$e#!es No. 0-Re5!se$ R@#es o& Proce$@res o M!!)@) W"'eF!J!', Ser!es o& --
this is adopted and promulgated by (
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)he +onstitution recogni3es that the private
sector plays an indispensable role something thestate cannot do without. At the same breath,labor is called the primary social economic force.0ecause one is %indispensable' and the other is
%primary', how can it be said that one is moreimportant, or deserves greater protectiBn thanthe otherJ4A3ucena 0oo! p1;
POWER TO ISSUE WA3E ORDERS
Art 22 LC. (he 'e4ional oards shall have thefollo/in4 po/ers and functions in their respective
jurisdiction
b. )o determine and fi& minimum wage ratesapplicable in their region, provinces or industriestherein and to issue the corresponding wage orderssubject to guidelines issued by the +ommission 4Asamended by epublic Act (o. "7#7, Fune 9, 1969.
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)he +ommission may review the
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processing, trading and services, whose total assetsincluding those arising from loans but e&clusive ofthe land on which the particular business entityTsoffice, plant and e2uipment are situated, shall not bemore than )hree M!##!o Pesos P1,,.)he Above definition shall be subjected to review andupward adjustment by the SM8 +ouncil, asmandated under epublic Act (o. "977, as amended
by epublic Act (o. 6#69.
=or the purpose of this Act, FserviceF shall e&cludethose rendered by any one, who is duly licensedgovernment after having passed a governmentlicensure e&amination, in connection with thee&ercise of oneTs profession.
Sect!o . W6o "re E#!'!*#e to Re'!ster 5 Anyperson, natural or juridical, or cooperative, orassociation, having the 2ualifications as defined inSection ;4a hereof may apply for registration as0M08.
Sect!o .EJe)7t!o &ro) t6e Co5er"'e o& t6e
M!!)@) W"'e L"%5 )he 0M08s shall be e&emptfrom the coverage of the Minimum
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appropriate egional 0oard. n the event that theapplications for e&emptions are not granted,employees shall receive the appropriatecompensation due them as provided for by this Actplus the interest of 1U per month retroactive to theeffectivity of this Act 4emphasis supplied.'
WA3E DISTORTION= CONCEPT ; ELEMENTS
ART. 24. "tandardsCriteria for !ini!u!*age fi8ing.
&&& As used herein, a W"'e D!stort!o shall meana situation where an increase in prescribed wagerates results in the elimination or severe contractionof intentional 2uantitative differences in wage orsalary rates between and among employee groups inan establishment as to effectively obliterate thedistinctions embodied in such wage structure basedon s!ills, length of service, or other logical bases ofdifferentiation.&&& 4As amended by epublic Act (o."7#7, Fune 9, 1969.
ELEMENTS OF WA3E DISTORTIONBanFar6 E:+loyees 9nion J WorFers Allian5eTra6e 9nions v. NLRC @ BanFar6$ R No. %2"#!($,eb. %7$ '""2
%8*8M8()S $= 8 S)$)$(1. An e&isting hierarchy of positions with
corresponding salary rates.#. A significant change in the salary rate of a lower
pay class without a concomitant increase in thesalary rate of a higher one.
;. 8limination of the distinction between the twolevels.
. 8&istence of the distortion in the same region ofthe country.
0asic assumption is there e&ists a classification ofemployees that establishes distinctions among themon some relevant or legitimate bases.'
=or salary distortion to e&ist, as defined in Art.
1#, the law does not re2uire that there be anelimination or total abrogation of 2uantitativewage or salary differences a severe contractionis enough.
)his means, briefly, the disappearance or virtual
disappearance of pay differentials between lowerand higher positions in an enterprise because ofcompliance with a wage order.
An employee has reason to complain whose pay
level advantage is e2ualed or almost e2ualed or
overta!en through a mandated wage increase.
=or instance, if a wage order raised a messengerTs
daily pay from ?196 to ?##;, almost e2ualing a
technicianTs pay of ?##-, the technician may
complain of salary distortion because his pay
advantage 4due to nature of job has been sig
nificantly reduced from ?#7 to ?# only.
EJ")7#e? f %A' was receiving a daily salary whichwas ?1BB higher than that of %0' who is %ACs'subordinate, but, because of a wage order increasegiven to %0', the ?1BB advantage disappeared or wasreduced to say, ?;B, then it may be said that the
salary distinction between A and 0 has beendistorted. %A' may complain of a salary distortion.
isparity in pay of two or more employees
holding the same position does not necessarilymean salary distortion referred to in Art 1#.
)here is no distortion if the employees, whose
wages are being compared, are located in
different regions. )his is because wagefi&ing has beenregionali3ed by A "7#7.
@ow to rectify the distortion is not specified in the law.
)he +ourt has pointed out that through Art. 1# the lawrecogni3es the validity of ne4otiated /a4e increases tocorrect wage distortions. )he legislative intent is toencourage the parties to see! solution to the problem ofwage distortions through voluntary negotiation orarbitration, rather than stri!es, loc!outs, or otherconcerted activities of the employees or management.
)he +ourt has adopted the following formula as just and
e2uitable to correct a salary distortion/
Mini
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)he 0oard of irectors of 0an!ard, nc. approved a%new salary scale' made retroactive for the purpose ofma!ing its hiring rate competitive in the industryCslabor mar!et. )his increased the hiring rate of newemployees by ?1BBB for levels Q : and ?9BB forlevels , and :.
?etitioner pressed for the increase in the salary of its
old, regular employees. 0an!ard replied that there wasno obligation on the part of the management to grantto all its employees the same increase in and acrossthe board manner.
S+ ruled that/%Since it is clear that there is no hierarchy ofpositions between the newly hired Q regularemployees of 0an!ard, first element is wanting.
)he formulation of wage structure through theclassification of employees is a matter ofmanagement judgment and discretion.
n relation to the ;rd element, the said gap is not
significant as to obliterate or result in severecontraction of the intentional 2ualitative differencesin the salary rates between the employee group.
=urthermore, petitioner cannot legally obligate0an!ard to correct the alleged %wage distortion' asthe increase in the wages and salaries of the newlyhired was not due to a prescribed law on wageorder.
eliance in Metro )ransit $ng vs. (*+ is misplacedbecause there e&isted a %company practice' in thatcase, in which not present in the instant case.'
METHODS OF RESOLIN3 WA3E DISTORTION ;TWO METHODS IN DETERMININ3 WA3ES
METHODS OF RESOLIN3 WA3E DISTORTION40rought about by the enactment or passage of awage order
)he court has pointed out that thru the passage
of Art 1#, the law recogni3es the validity ofne4otiated /a4e increases to correct wagedistortion.
)he legislative intent is to encourage the parties
to see! solution to the problem of wagedistortions through voluntary negotiation orarbitration, rather than stri!es, loc!outs, or otherconcerted activities of the employees ormanagement.
A. IF OR3ANIED
a )he matter should be brought to the grievance4machinery procedure under their +0A.
c f no settlement is arrived at, the dispute shouldbe submitted to voluntary arbitration 4voluntaryarbitrator or panel of voluntary arbitrators
(o number of :A specified by law
(o prohibition of *abor Arbiter to be :oluntary
Arbiter (+M0 has a list of :A
ecision of :A is final and e&ecutory after 1B
days from the receipt of the copy of the decisionby the parties, however, no M is allowed, a )$maybe applied with +A or S+ to stay e&ecution ofthe assailed judgment, and a ?etition for eviewunder ule ; may be made to +A for 2uestion oflaw or facts or both, then to S+ under ule -
$>A(O8 8S)A0*S@M8()
efers to a firm or a company where there is a recogni3ed
or certified e&clusive bargaining agreement.
A(O8 8S)A0*S@M8()
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1. =*$$8 method which involves the fi&ing ofa determinate amount to be added to the prevailingstatutory minimum wage rates.
#. SA*A+8*(> method in which the wageadjustment was to be applied to employees receivinga certain denominated salary ceiling. %
)he first method was adopted in the earlier wage
orders, while the latter methodwas used in A""B and A "7#7.
)he shift from the first method to the second
method was brought about by labor disputesarising from wage distortions, a conse2uence ofthe implementation of the wage orders.
)he shift from the first to the second method was
due to the fact that the latter minimi3ed wagedistortion disputes.
>URISDICTION OER WA3E DISTORTION
DISPUTES
LABOR ARBITRATION eference of a labor dispute to a third party for
determination on the basis of evidence andarguments presented by such parties, who arebound to accept the decision.
Ar*!tr"t!o )"+ *e c#"ss!&!e$ o t6e *"s!s o&o*#!'"t!o o %6!c6 !t !s *"se$, !t )"+ e!t6er*e?
. OLUNTAR( ARBITRATION
t is the policy of the State to encourage
voluntary arbitration on all labormanagement
disputes. 0efore or at any stage of the compulsoryarbitration process, the parties may opt to submittheir dispute to voluntary arbitration.4mplementing ules, 0oo! :, ule DD, Sec. -.
efined as a contractual proceeding whereby the
parties to any dispute or controversy in order toobtain a speedy and ine&pensive final dispositionof the matter, select a judge of their own choiceand by consent, submit their controversy to himfor determination.
Hnder voluntary arbitration, the judge is named
by the parties, pursuant to a voluntaryarbitration clause in their collective agreement.
@e is an impartial third person authori3ed by theparties to ma!e a final and binding decision oraward.
A voluntary arbitrator is not a public tribunal
imposed upon the parties by a superior authoritywhich the parties are obliged to accept. @e hasno general character to administer justice for acommunity. @e is rather part of a system of selfgovernment created by and confined to theparties. KMaurice S. )rotta, Arbitration of LaborManagement isputes, American ManagementAssociation, (ew or!, 197, p. 7;.L
:oluntary arbitration, indeed, is a private judicial
system.
)he judge is called a :$*H()A A0)A)$.
)he power of voluntary arbitrator to try and
decide the case is the same as that of a *aborArbiter.
)he parties can agree to select a *abor Arbiter as a
voluntary arbitrator because it is as to the agreement ofthe parties.
Arbitration may be initiated either by 1 a Submission
Agreement or # by a emand or (otice invo!ing acollective agreement arbitration clause. Sometimes bothinstruments are used in a case.
Although the contract may establish the breadth of the
arbitratorTs power and the limits of his authority, his powermay be more sharply defined in the submissionagreement.
n ?hilippine conte&t, the judge in voluntary arbitration is
called arbitrator, while that in compulsory arbitration islabor arbiter.
?roceedings are (onlitigious in nature, not governed by
technical rules of procedure used in courts but dueprocess is always observed.
:$*H()A A0)A)$
Any person accredited by the 0oard as such or
Any person named or designated in the +0A by the parties
to act as their voluntary arbitrator or $ne chosen, with or without the assistance of the (+M0,
pursuant to selection procedure agreed upon in the +0Aor
Any official that may be authori3ed by the Sec of *abor to
act as voluntary arbitrator upon the written re2uest andagreement or the parties to a labor dispute.
2. COMPULSOR( ARBITRATION
?rocess of settlement of labor disputes by a government
agency Kor by other means provided by the governmentL
which has the authority to investigate and to ma!e awardwhich is binding on all the parties.
?arties are compelled to forgo their right to stri!e
A disinterested person or party is usually appointed by the
state.
t is compulsory because the law declares the dispute
subject to arbitration, regardless of the consent of theparties.
one by the egional Arbitration 0ranch of (*+ Krefer to
Art #17L
t is an adversarial proceeding initiated by a complaint
Kusually by a unionL for wage distortion before the *aborArbiter. )he other party is re2uired to answer.
t is the *abor Arbiter who is clothed with the original and
e&clusive authority to conduct compulsory arbitration underArt. #17.
?roceedings after a labor arbiterTs decision is brought up to
the (ational *abor elations +ommission cannot beconsidered as part of the arbitration proceedings. )his isbecause in the appeal stage, the +ommission merely reviews the *abor ArbiterTs decision for errors of fact or law. tdoes not duplicate the proceedings held at the *aborArbiterTs level. )hus, the clause Fpendin4 final resolution ofthe case by arbitrationFshould be understood to be limited
only to the proceedings before the *abor Arbiter, so thatwhen the latter rendered his decision, the case could beconsidered finally resolved by arbitration. KSee hilippineAirlines, nc. vs& ational Labor elations +ommission, >.. (o.--1-9, 9ec& 22! 1969.L
)he +ommission itself, through any of its divisions, also
conducts compulsory arbitration, but only in national
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interest cases certified or referred to it by the$*8 secretary under Art. #";4g.
APPEAL PROCEDURE IN COMPULSOR( AND
OLUNTAR( ARBITRATION
000000000000000000Forrese"rc60000000000000000000000000
SPECIAL CIIL ACTION
RULE +8)$A, ?$@0)$( A( MA(AMHS
S8+)$( 1. &etition for certiorari.R8(+8S )$ )@8 +$H) $= A??8A*S
S8+)$( 1. Scope.R)his ule shall apply to appeals fromjudgments or final orders of the +ourt of )a& Appeals and fromawards, judgments, final orders or resolutions of or authori3edby any 2uasijudicial agency in the e&ercise of its 2uasijudicialfunctions. Among these agencies are the +ivil Service
+ommission, +entral 0oard of Assessment Appeals, Securitiesand 8&change +ommission, $ffice of the ?resident, *andegistration Authority, Social Security +ommission, +ivilAeronautics 0oard, 0ureau of ?atents, )rademar!s and)echnology )ransfer, (ational 8lectrification Administration,8nergy egulatory 0oard, (ational )elecommunications+ommission, epartment of Agrarian eform under epublicAct (o. ""-7, >overnment Service nsurance System,8mployees +ompensation +ommission, Agricultural nventions0oard, nsurance +ommission, ?hilippine Atomic 8nergy+ommission, 0oard of nvestments, +onstruction ndustryArbitration +ommission, and voluntary arbitrators authori3ed bylaw. 4n
S8+. #. Cases not covered.R)his ule shall not apply tojudgments or final orders issued under the *abor +ode of the
?hilippines. 4nS8+. ;. 6'ere to aeal.RAn appeal under this ule
may be ta!en to the +ourt of Appeals within the period and inthe manner herein provided, whether the appeal involves2uestions of fact, of law, or mi&ed 2uestions of fact and law. 4n
S8+. . &eriod of aeal.R)he appeal shall be ta!enwithin fifteen 41- days from notice of the award, judgment,final order or resolution, or from the date of its last publication,if publication is re2uired by law for its effectivity, or of thedenial of petitionerCs motion for new trial or reconsiderationduly filed in accordance with the governing law of the court oragency a 2uo. $nly one 41 motion for reconsideration shall beallowed. Hpon proper motion and the payment of the fullamount of the doc!et fee before the e&piration of thereglementary period, the +ourt of Appeals may grant anadditional period of fifteen 41- days only within which to filethe petition for review. (o further e&tension shall be grantede&cept for the most compelling reason and in no case to e&ceedfifteen 41- days. 4n
S8+. -. @ow appeal ta!en..RAppeal shall be ta!en byfiling a verified petition for review in seven 47 legible copieswith the +ourt of Appeals, with proof of service of a copythereof on the adverse party and on the court or agency a 2uo.
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)he original copy of the petition intended for the +ourtof Appeals shall be indicated as such by the petitioner.
Hpon the filing of the petition, the petitioner shallpay to the cler! of court of the +ourt of Appeals thedoc!eting and other lawful fees and deposit the sumof ?-BB.BB for costs. 8&emption from payment ofdoc!eting and other lawful fees and the deposit for
costs may be granted by the +ourt of Appeals upon averified motion setting forth valid grounds therefor. fthe +ourt of Appeals denies the motion, the petitionershall pay the doc!eting and other lawful fees anddeposit for costs within fifteen 41- days from noticeof the denial. 4n
S8+. ". +ontents of the petition.R)he petitionfor review shall 4a state the full names of the partiesto the case, without impleading the court or agencieseither as petitioners or respondents 4b contain aconcise statement of the facts and issues involved andthe grounds relied upon for the review 4c beaccompanied by a clearly legible duplicate original or acertified true copy of the award, judgment, final orderor resolution appealed from, together with certified
true copies of such material portions of the recordreferred to therein and other supporting papers and4d contain a sworn certification against forumshopping as provided in the last paragraph of section#, ule #. )he petition shall state the specificmaterial dates showing that it was filed within theperiod fi&ed herein. 4#a
S8+. 7. 8ffect of failure to comply withre2uirements.R)he failure of the petitioner to complywith any of the foregoing re2uirements regarding thepayment of the doc!et and other lawful fees, thedeposit for costs, proof of service of the petition, andthe contents of and the documents which shouldaccompany the petition shall be sufficient ground forthe dismissal thereof. 4n
S8+. 6. Action on the petition.R)he +ourt ofAppeals may re2uire the respondent to file a commenton the petition, not a motion to dismiss, within ten41B days from notice, or dismiss the petition if it findsthe same to be patently without merit, prosecutedmanifestly for delay, or that the 2uestions raisedtherein are too unsubstantial to re2uire consideration.4"a
S8+. 9. +ontents of comment.R)he commentshall be filed within ten 41B days from notice in seven47 legible copies and accompanied by clearly legiblecertified true copies of such material portions of therecord referred to therein together with othersupporting papers. )he comment shall 4a point out
insufficiencies or inaccuracies in petitionerCs statementof facts and issues and 4b state the reasons why thepetition should be denied or dismissed. A copy thereofshall be served on the petitioner, and proof of suchservice shall be filed with the +ourt of Appeals. 49a
S8+. 1B. ue course.Rf upon the filing of thecomment or such other pleadings or documents asmay be re2uired or allowed by the +ourt of Appeals orupon the e&piration of the period for the filing thereof,and on the basis of the petition or the records the+ourt of Appeals finds prima facie that the court oragency concerned has committed errors of fact or lawthat would warrant reversal or modification of theaward, judgment, final order or resolution sought tobe reviewed, it may give due course to the petition
otherwise, it shall dismiss the same. )he findings offact of the court or agency concerned, whensupported by substantial evidence, shall be binding onthe +ourt of Appeals. 4n
S8+. 11. )ransmittal of record.R
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)he Supreme +ourt may on its own initiativedeny the petition on the ground that the appeal iswithout merit, or is prosecuted manifestly for delay, orthat the 2uestions raised therein are too unsubstantialto re2uire consideration. 4;a
S8+. ". eview discretionary.RA review is not amatter of right, but of sound judicial discretion, and
will be granted only when there are special andimportant reasons therefor. )he following, whileneither controlling nor fully measuring the courtCsdiscretion, indicate the character of the reasons whichwill be considered/
4a )@8 FHS+)$( $= )@8M8)$?$*)A( )A* +$H)S, MH(+?A* )A* +$H)S,A( MH(+?A* ++H) )A* +$H)S, AM8((> =$
)@8 ?H?$S8 0A)AS ?AM0A(SA 0*>. 1#9, $)@8
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S8+. 19. Furisdiction in civil cases. egional )rial+ourts shall e&ercise e&clusive original jurisdiction/
41 n all civil actions in which the subject of thelitigation is incapable of pecuniary estimation
4# n all civil actions which involve the title to, orpossession of, real property, or any interest therein,
where the assessed value of the property involvede&ceeds )wenty thousand pesos 4?#B,BBB.BB or, forcivil actions in Metro Manila, where such valuee&ceeds =ifty thousand pesos 4?-B,BBB.BB e&ceptactions for forcible entry into and unlawful detainerof lands or buildings, original jurisdiction over whichis conferred upon the Metropolitan )rial +ourts,Municipal )rial +ourts, and Municipal +ircuit )rial+ourts
4; n all actions in admiralty and maritimejurisdiction where the demand or claim e&ceeds $nehundred thousand pesos 4?1BB,BBB.BB or, in MetroManila, where such demand or claim e&ceeds )wohundred thousand pesos 4?#BB,BBB.BB
4 n all matters of probate, both testate andintestate, where the gross value of the estatee&ceeds $ne hundred thousand pesos 4?1BB,BBB.BBor, in probate matters in Metro Manila, where suchgross value e&ceeds )wo hundred thousand pesos4?#BB,BBB.BB
4- n all actions involving the contract of marriageand marital relations
4" n all cases not within the e&clusive jurisdictionof any court, tribunal, person or body e&ercising
jurisdiction of any court, tribunal, person or bodye&ercising judicial or 2uasijudicial functions
47 n all civil actions and special proceedings fallingwithin the e&clusive original jurisdiction of a Fuvenileand omestic elations +ourt and of the +ourt ofAgrarian elations as now provided by law and
46 n all other cases in which the demand,e&clusive of interest, damages of whatever !ind,attorneyTs fees, litigation e&penses, and costs or thevalue of the property in controversy e&ceeds $nehundred thousand pesos 4?1BB,BBB or, in such othercases in Metro Manila, where the demand, e&clusiveof the abovementioned items e&ceeds )wo hundredthousand pesos 4?#BB,BBB.
S8+. #. Section ;# of the same law is herebyamended to read as follows/
S8+. ;#. Furisdiction of Metropolitan )rial +ourts,Municipal )rial +ourts and Municipal +ircuit )rial+ourts in +riminal +ases. 8&cept in cases fallingwithin the e&clusive original jurisdiction of egional)rial +ourts and of the Sandiganbayan, theMetropolitan )rial +ourts, Municipal )rial +ourts,and Municipal +ircuit )rial +ourts shall e&ercise/
41 8&clusive original jurisdiction over allviolations of city or municipal ordinancescommitted within their respectiveterritorial jurisdiction and
4# 8&clusive original jurisdiction over all
offenses punishable with imprisonment note&ceeding si& 4" years irrespective of theamount of fine, and regardless of otherimposable accessory or other penalties,including the civil liability arising from suchoffenses or predicated thereon, irrespective of!ind, nature, value or amount thereof/ ?rovided,however, )hat in offenses involving damage to
property through criminal negligence, they shall havee&clusive original jurisdiction thereof.
S8+. ;. Section ;; of the same law is hereby amended toread as follows/
S8+. ;;. Furisdiction of Metropolitan )rial +ourts,
Municipal )rial +ourts and Municipal +ircuit )rial +ourts in+ivil +ases. Metropolitan )rial +ourts, Municipal )rial+ourts, and Municipal +ircuit )rial +ourts shall e&ercise/
41 8&clusive original jurisdiction over civil actionsand probate proceedings, testate and intestate,including the grant of provisional remedies inproper cases, where the value of thepersonalproperty, estate, or amount of the demand doesnot e&ceed $ne hundred thousand pesos4?1BB,BBB.BB or, in Metro Manila where suchpersonal property, estate, or amount of thedemand does not e&ceed )wo hundred thousandpesos 4?#BB,BBB.BB, e&clusive of interest,damages of whatever !ind, attorneyTs fees,litigation e&penses, and costs, the amount of
which must be specifically alleged/ ?rovided, )hatinterest, damages of whatever !ind, attorneyTsfees, litigation e&penses, and costs shall beincluded in the determination of the filing fees/?rovided, further, )hat where there are severalclaims or causes of actions between the same ordifferent parties, embodied in the same complaint,the amount of the demand shall be the totality ofthe claims in all the causes of action, irrespectiveof whether the causes of action arose out of thesame or different transactions
4# 8&clusive original jurisdiction over cases offorcible entry and unlawful detainer/ ?rovided,)hat when, in such cases, the defendant raises the2uestion of ownership in his pleadings and the2uestion of possession cannot be resolved withoutdeciding the issue of ownership, the issue ofownership shall be resolved only to determine theissue of possession and
4; 8&clusive original jurisdiction in all civil actionswhich involve title to, or possession of, realproperty, or any interest therein where theassessed value of the property or interest thereindoes not e&ceed )wenty thousand pesos4?#B,BBB.BB or, in civil actions in Metro Manila,where such assessed value does not e&ceed =iftythousand pesos 4?-B,BBB.BB e&clusive of interest,damages of whatever !ind, attorneyTs fees,litigation e&penses and costs/ ?rovided, )hat in
cases of land not declared for ta&ation purposes,the value of such property shall be determined bythe assessed value of the adjacent lots.
S8+. . Section ; of the same law is hereby amended toread as follows/
S8+. ;. elegated Furisdiction in +adastral and *andegistration +ases. Metropolitan )rial +ourts, Municipal)rial +ourts, and Municipal +ircuit )rial +ourts may beassigned by the Supreme +ourt to hear and determinecadastral or land registration cases covering lots wherethere is no controversy or opposition, or contested lotswhere the value of which does not e&ceed $ne hundredthousand pesos 4?1BB,BBB.BB, such value to beascertained by the affidavit of the claimant or byagreement of the respective claimants if there are morethan one, or from the corresponding ta& declaration ofthe real property. )heir decisions in these cases shall beappealable in the same manner as decisions of theegional )rial +ourts.
S8+. -. After five 4- years from the effectivity of this Act, thejurisdictional amounts mentioned in Sec. 194;, 4, and 46and Sec. ;;41 of 0atas ?ambansa 0lg. 1#9 as amended by
If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, forevery victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle SUN TZU
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this Act, shall be adjusted to )wo hundred thousandpesos 4?#BB,BBB.BB. =ive 4- years thereafter, such
jurisdictional amounts shall be adjusted further to)hree hundred thousand pesos 4?;BB,BBB.BB/?rovided, however, )hat in the case of Metro Manila,the abovementioned jurisdictional amounts shallbe .
S8+. ". All laws, decrees, and orders inconsistentwith the provisions of this Act shall be consideredamended or modified accordingly.
S8+. 7. )he provisions of this Act shall apply to allcivil cases that have not yet reached the pretrialstage. @owever, by agreement of all the parties, civilcases cogni3able by municipal and metropolitancourts by the provisions of this Act may betransferred from the egional )rial +ourts to thelatter. )he e&ecutive judge of the appropriateegional )rial +ourt shall define the administrativeprocedure of transferring the cases affected by theredefinition of jurisdiction to the Metropolitan )rial+ourts, Municipal )rial +ourts, and Municipal +ircuit
)rial +ourts.
RE3IONAL DIRECTOR
ART. 12:. isitorial and enforce!ent o*er& G
4a )he Secretary of *abor and 8mployment or hisduly authori3ed representatives, including laborregulation officers, shall have access to employerCsrecords and premises at any time of the day or nightwhenever wor! is being underta!en therein, and theright to copy therefrom, to 2uestion any employeeand investigate any fact, condition or matter whichmay be necessary to determine violations or whichmay aid in the enforcement of this +ode and of anylabor law, wage order or rules and regulations issued
pursuant thereto.
4b (otwithstanding the provisions of Articles 1#9and #17 of this +ode to the contrary, and in caseswhere the relationship of employeremployee stille&ists, the Secretary of *abor and 8mployment or hisduly authori3ed representatives shall have the powerto issue compliance orders to give effect to the laborstandards provisions of this +ode and other laborlegislation based on the findings of laboremployment and enforcement officers or industrialsafety engineers made in the course of inspection.)he Secretary or his duly authori3ed representativesshall issue writs of e&ecution to the appropriateauthority for the enforcement of their orders, e&ceptin cases where the employer contests the findings ofthe labor employment and enforcement officer andraises issues[ supported by documentary proofswhich were not considered in the course ofinspection. 4As amended by epublic Act (o. 77;B,Fune #, 199.
K[ )he phrase after the word %issues', was anamendment by A 77;B to delete the clause %whichcannot be resolved without considering evidentiarymatters that are not verifiable in the normal courseof inspection.'L
An order issued by the duly authori3edrepresentative of the Secretary of *abor and
8mployment under this Article may be appealed tothe latter. n case said order involves a monetaryaward, an appeal by the employer may be perfectedonly upon the posting of a cash or surety bondissued by a reputable bonding company dulyaccredited by the Secretary of *abor and8mployment in the amount e2uivalent to themonetary award in the order appealed from. 4Asamended by epublic Act (o. 77;B, Fune #, 199.
4c )he Secretary of *abor and 8mployment may li!ewiseorder stoppage of wor! or suspension of operations of anyunit or department of an establishment when noncompliancewith the law or implementing rules and regulations posesgrave and imminent danger to the health and safety ofwor!ers in the wor!place.
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as to free it from the jurisdictionallimitations found in Art. 1#9 and #17.
n the e&ercise of his power under this
Article the Secretary of *abor and8mployment may even order the stoppage ofwor! or suspension of operations of theinspected establishment or parts of it. )heemployer, if at fault, may be ordered to paythe employeesT wages during the wor!stoppage or suspension of operations. 0ut,again, due process of law must be observed.
A regional director of $*8 has the power to
order rectification of a labor standardsviolation even if such violation is notmentioned in the employeeTs complaint. 4See
Aboiti- Shipping +orp. vs. 9e la Sema,etc.,>.. (o. 66-;6,April 25! 199B.
)he regional director, in cases where
employeremployee relationship still e&ists,has the power to order and administer, afterdue notice and hearing, compliance with the
labor standards provisions of the *abor+ode and other legislation based on thefindings of labor regulation officers orindustrial safety engineers made in thecourse of inspection. @e may also issue writsof e&ecution to the appropriate authority forthe enforcement of his orders in line withthe provisions of Article 1#6 in relation toArticle #69 and #9B of the *abor +ode.
@owever, in those cases where the
employer contests the findings of the laborstandards and welfare officers and raisesissues which cannot be resolved withoutconsidering evidentiary matters that arenot verifiable in the normal course of
inspection, the regional director mustendorse the case to the appropriatearbitration branch 4laborarbiter of the (*+for adjudication )Sec& "! 'ule X! oo0 !+mnibus 'ules mplementin4 the Labor Code*&
)he visitorial enforcement power is
thorough and piercing it e&tends even toissues not formally included in thecomplaint.
LABOR ARBITER
ART. 217. ;urisdiction of t'e .. (o. 6B77, May ;1,1966.
VI. WAGE ENFORCEMENT AND
RECOVERY
)
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4c )his inspection authority will then beimplemented by a *abor and 8mployment$fficer of the $*8. And this person will visitthe employerCs premises and then conduct aninspection.
@e will inspect the payroll to determine if
indeed there was underpayment of wages,inspect the employerCs premises, interviewand as! the employees themselves if theyare indeed paid such amount of wages,compare the payment records and conferwith the employees.
4d f the inspector finds that there is a violationor underpayment of wages, he will ma!e an(S?8+)$( 8?$)
Hsually embodied in a ($)+8 $=
(S?8+)$( 8SH*)S. All violations that the *abor 8mployment
$fficer will find in the employerCs premiseswill be enumerated and be put as hisfindings in the notice.
4e )he employer is first informed of the results ofthe inspection.
4f )he employer is given the opportunity tocomply within 7 days or
4g )he employer may contest the notice ofinspection results and raise issues whichcannot be resolved without considering$+HM8()A ?$$=S that are not verifiablein the normal course of inspection.
@$< S$$(J )he employer shall raise such
objections during the hearing of the caseor at any time after the receipt of the
notice of inspection results.
4h f on the other hand, the employer does not orfails to contest the notice of inspection result,as well as fails to comply with such notice.
)he egional irector will issue an $8
$= +$M?*A(+8.
)he order of compliance will basically be
based on the notice of inspection results,so if the inspection says that you areunderpaying 1B wor!ers or just payingthem ?1BB, the will issue an order ofcompliance ordering this time the
employer to pay the following wor!ers thefollowing sums of money.
4i emedy of the employer from the order ofcompliance.
)he order of compliance can be 2uestioned
within 1B calendar days thru an A??8A*with S$*8 4filing of bond
)hen the employer will file a motion for
reconsideration with the within 7calendar days.
f the employer files it beyond 7 days but
not beyond 1B days, that will beconsidered an appeal from the to theS$*8.
4j f the employer will not file a motion forreconsideration, what will happen to the orderof complianceJ t becomes final and e&ecutory.
)he S$*8 or can issue a
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An order issued by the duly authori3edrepresentative of the Secretary of *abor and8mployment Kegional irectorL under thisArticle may be "77e"#e$to the latter. n casesaid order involves a )oet"r+ "%"r$, anappeal by the employer may be perfected onlyupon the posting of a cash or surety bond
issued by a reputable bonding company dulyaccredited by the S$*8 in the amounte2uivalent to the monetary award in the orderappealed from.
4c )he S$*8 may li!ewise order sto77"'eo& %or or s@s7es!o o& o7er"t!os o&"+ @!t or $e7"rt)et o& "est"*#!s6)et when noncompliance withthe law or implementing rules and regulationsposes grave and imminent danger to thehealth and safety of wor!ers in the wor!place.
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obliged to maintain a payroll pursuant to thepower of the S$*8 under Article 1#6 4f to issuesuch rules and regulations pertinent thereto.Hnder implementing rules, see Section ", ule D,0oo! .
Q? n the e&ercise of the visitorial power, can the
S$*8 be interfered with by the courtsJ
A? ($. )his is pursuant to Article 1#6 4d. f theS$*8 or the egional irector, for that matter,decides to inspect the employerCs premises, then noentity can lawfully interfere, obstruct or delay thee&ercise of that authority otherwise they would bepenali3ed under that provision of the *+. )hat is howcomprehensive and that is how strong the visitorialand enforcement power of the S$*8 is.
NA ,)(SUSPENSION OF OPERATIONS
ART. 2. 6'en e!lo$!ent not dee!edter!inated. 0 )he bona1fide suspension of theoperation of a business or underta!ing for a period
not e&ceeding si& 4" months, or the fulfillment bythe employee of a military or civic duty shall notterminate employment. n all such cases, theemployer shall reinstate the employee to his formerposition without loss of seniority rights if he indicateshis desire to resume his wor! not later than one 41month from the resumption of operations of hisemployer or from his relief from the military or civicduty.
Seb-g-ero$et al. vs. NLRC$ .T.I. S+ortsHear Cor+.$et al.R. No. %%14(2$ Se+te:ber '7$ %((1
%Article #6; spea!s of a permanent retrenchmentas opposed to a temporary layoff. )here is no
specific provision of law which treats of a temporaryretrenchment or layoff. )o remedy this situation orfill the hiatus, Article #6" may be applied but only byanalogy to set a specific period that employees mayremain temporarily laidoff or in floating status. Si&months is the period set by law that the operation ofa business or underta!ing may be suspendedthereby suspending the employment of theemployees concerned. )he temporary layoffwherein the employees li!ewise cease to wor!should also not last longer than si& months. After si&months, the employees should either be recalled towor! or permanently retrenched following there2uirements of the law. =ailing to comply with thiswould be tantamount to dismissing the employees
and the employer would thus be liable for suchdismissal. %
Agro Co::er5ial Se5-rity Servi5es Agen5y$ In5. vs.National Labor Relations Co::ission.R. Nos. !'!'43'2$ =-ly 4%$ %(!(
%UNCTION
ART. 12:. isitorial and enforce!ent o*er. =
4d t shall be unlawful for any person or entity to obstruct,impede, delay or otherwise render ineffective the orders ofthe Secretary of *abor and 8mployment or his duly authori3edrepresentatives issued pursuant to the authority grantedunder this Article, and no inferior court or entity shall issuetemporary or permanent injunction or restraining order orotherwise assume jurisdiction over any case involving theenforcement orders issued in accordance with this Article.
MAINTENANCE OF EMPLO(MENT RECORDS
ART. 12:. isitorial and enforce!ent o*er. =
4f )he Secretary of *abor and 8mployment may, by
appropriate regulations, re2uire employers to !eep andmaintain such employment records as may be necessary inaid of his visitorial and enforcement powers under this +ode.
SIMPLE MONE( CLAIMS AND >URISDICTION
ART. 2-. Recover$ of *ages> si!le !one$ clai!s andot'er benefits.0Hpon complaint of any interested party, theegional irector of the epartment of *abor and
If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, forevery victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle SUN TZU
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8mployment or any of the duly authori3ed hearingofficers of the epartment is empowered, throughsummary proceeding and after due notice, to hearand decide any matter involving the recovery ofwages and other monetary claims and benefits,including legal interest, owing to an employee orperson employed in domestic or household service orhousehelper under this +ode, arising from employer
employee relations/ ?rovided, )hat such complaintdoes not include a claim for reinstatement/ ?rovidedfurther, )hat the aggregate money claims of eachemployee or househelper does not e&ceed =ivethousand pesos 4?-,BBB.BB. )he egional irectoror hearing officer shall decide or resolve thecomplaint within thirty 4;B calendar days from thedate of the filing of the same. Any sum thusrecovered on behalf of any employee or househelperpursuant to this Article shall be held in a specialdeposit account by, and shall be paid on order of, theSecretary of *abor and 8mployment or the egionalirector directly to the employee or househelperconcerned. Any such sum not paid to the employeeor househelper because he cannot be located after
diligent and reasonable effort to locate him within aperiod of three 4; years, shall be held as a specialfund of the epartment of *abor and 8mployment tobe used e&clusively for the amelioration and benefitof wor!ers.
Any decision or resolution of the egional irector orhearing officer pursuant to this provision may beappealed on the same grounds provided in Article##; of this +ode, within five 4- calendar days fromreceipt of a copy of said decision or resolution, to the(ational *abor elations +ommission which shallresolve the appeal within ten 41B calendar daysfrom the submission of the last pleading re2uired orallowed under its rules.
)he Secretary of *abor and 8mployment or his dulyauthori3ed representative may supervise thepayment of unpaid wages and other monetary claimsand benefits, including legal interest, found owing toany employee or househelper under this +ode. 4Asamended by Section #, epublic Act (o. "71-, March#1, 1969.
)his is the second method of the enforcement
and recovery of minimum wage provisions, whichrefers to simple money claims.
ARTICLES 2 AND 2- COMPARED
)he two articles are similar as they both spea! oflabor law administration and enforcement
Art. 1#9 is more limited in scope than Art. 1#6
Art 12: Art 12?
empowers the Secretaryof *abor or any of hisduly authori3edrepresentatives' whomay or may not be a .
Adjudicatory powervested upon a egionalirector or any duly
%authori3ed hearingofficer' of $*8.
Spea!s of inspection ofestablishments and theissuance of complianceorders on laborstandards, wage orders
and other labor laws andregulations
efers to adjudicationthrough summaryproceedings after noticeand hearing, ofemployeesC claims for
wages and benefits
?roceedings under thisarticle are offshoots ofinspections done by laborofficers or safetyengineers
nitiated by sworncomplaints filed by anyinterested party.
Furisdictional limits in Art1#9 do not apply to the
)he regional directorTsauthority under Art.
e&ercise of powers underArt 1#6. ?ar 0 of Art1#6 was changed to itspresent wording by A77;B purposely tostrengthen the visitorialenforcement power byfreeing it from the
limitations of Art 1#9.
1#9 is subject to foure2uisites.
A decision under Article1#6, on the other hand,is administrative andtherefore appealable tothe Secretary of *aborwho is the administrativesuperior of all regionaldirectors of theepartment.
A decision renderedunder this Article, beingadjudicatory in nature, isappealable to the (ational*abor elations+ommission 4(*+
)@8 8>$(A* 8+)$TS AH)@$) H(8 A). 1#9 SSH0F8+) )$ =$H 8IHS)8S, (AM8*/
1. )he claim is presented by an employee or a personemployed in domestic or household service, or ahousehelper.
#. )he claim arises from employeremployee relations.;. )he claimant does not see! reinstatement.. )he "''re'"te money claim of each employee or
househelper does not e&ceed ?-,BBB.BB.
f there is 2uestion of reinstatement or if the claimantTs
demand e&ceeds ?-,BBB.BB, the labor arbiter hasjurisdiction over the case, pursuant to Art. #17, paragraph", e&cept claims for employeesT compensation, socialsecurity, Medicare 4?hilhealth and maternity benefits.8ven as regards labor arbiter, however, employeremployee relation is a prere2uisite as basis of the claim.
Articles 1#6 and 1#9 are operative only in the conte&t of
employment relationship. A regular court , not $*8 or(*+, has jurisdiction over claim of an independentcontractor to adjust contractual fee.
9rbanes vs. SOLER %''7(% "'&%(&'""4
%t is well settled in law and jurisprudence that where noemployeremployee relationship e&ists between the partiesand no issue is involved which may be resolved by referenceto the *abor +ode, other labor statutes or any collectivebargaining agreement, it is the egional )rial +ourt that has
jurisdiction.
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under Article #17 and the (*+ ules. )operfect the appeal, the employer must post acash or surety bond.
n the appeal from the decision to the (*+,
the aggrieved party has - calendar days, while inthe appeal from *A decision to the (*+, theaggrieved party has 1B days.
g. =rom the adverse decision of the (*+, theemployer can then file a motion forreconsideration.
h. f said motion is denied, the employer may stillfile a Special +ivil Action for +ertiorari with the+ourt of Appeals under ule "- of the ules of+ourt within a period of "B days from receipt ofthe decision.
)he egional )ripartite
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errors, arguments in support thereof, and thereliefs prated for. A. mere notice of appeal,therefore, does not constitute the appeal asherein defined and understood, and shall notstop the running of the period for perfecting anappeal. 4mplementing ules, 0oo! :, ule ,Sec. 1
8Per&ect!o o& " A77e"# includes the filing,within the prescribed period, of the memorandumof appeal containing, among others, theassignment of errorEs, arguments in supportthereof, the relief sought and, in appropriatecases, posting of an appeal bond.
SM Agri an6 eneral Ma5*ineries vs. NLRC.R. No. 72!("#$ =an-ary ($ %(!(.
%)he 1Bday period provided in Article ##; refers toten calendar days, not wor!ing days. )his meansthat Saturdays, Sundays and *egal @olidays are notto be e&cluded, but included, in counting the 1Bday period.
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%@owever, the Supreme +ourt has never hesitatedto e&ercise its corrective powers and to reverseadministrative decisions in the following cases/
41 the conclusion is a finding grounded onspeculations, surmises and conjectures
4# the inferences made are manifestly mista!en,
absurd or impossible
4; there is a grave abuse of discretion
4 there is a misapprehension of facts
4- the court Kor 2uasijudicial bodyL in arriving atits findings went beyond the issues of the case andthe same are contrary to the admissions of theparties or the evidence presented
4" where respondent commission has sustainedirregular procedures and through the invocation ofsummary methods, including rules on appeal, hasaffirmed an order which tolerates a violation of due
process and
47 where the rights of a party were prejudicedbecause the administrative findings, conclusions ordecisions were in violation of constitutionalprovisions, in e&cess of statutory authority, or
jurisdiction, made upon irregular procedure, vitiatedby fraud, imposition or mista!e, not supported bysubstantial evidence adduced at the hearing orcontained in the records or disclosed to the parties,or arbitrary, or capricious.'
LE3AL REMEDIES
S7ec!"# C!5!# Act!o R@#e , --/ R@#es o& C!5!#Proce$@re
See )opic
Pet!t!o &or Re5!e% R@#e 41 "$ R@#e 4, --/R@#es o& C!5!# Proce$@re See topic
VII. WAGE PROTECTION
PROVISIONS AND
PROHIBITIONS REGARDING
WAGES
NON0INTERFERENCE IN DISPOSAL OF WA3ES
ART. 112. Non-interference in disosal of*ages. - (o employer shall limit or otherwiseinterfere with the freedom of any employee todispose of his wages. @e shall not in any mannerforce, compel, or oblige his employees to purchasemerchandise, commodities or other property fromany other person, or otherwise ma!e use of anystore or services of such employer or any otherperson.
ART. 2 REISED PENAL CODE
Art. 2:: R&C. t'er "i!ilar Coercions9
Co!ulsor$ urc'ase of !erc'andise anda$!ent of *ages b$ !eans of to+ens. )he
penalty of arresto mayor or a fine ranging from #BBto -BB pesos, or both, shall be imposed upon anyperson, agent or officer, of any association orcorporation who shall force or compel, directly orindirectly, or shall !nowingly permit any laborer oremployee employed by him or by such firm orcorporation to be forced or compelled, to purchasemerchandise or commodities of any !ind.
)he same penalties shall be imposed upon any person whoshall pay the wages due a laborer or employee employed byhim, by means of to!ens or objects other than the legaltender currency of the laborer or employee.
WA3E DEDUCTION
ART. 113. 6age deduction. - (o employer, in his ownbehalf or in behalf of any person, shall ma!e any deductionfrom the wages