LABOR LAW AND SOCIAL LEGISLATION 2018 GOLDEN NOTES FACULTY OF CIVIL LAW UNIVERSITY OF SANTO TOMAS MANILA PDF

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LABOR LAW AND SOCIAL LEGISLATION 2018 GOLDEN NOTES FACULTY OF CIVIL LAW UNIVERSITY OF SANTO TOMAS MANILA The UST GOLDEN NOTES is the annual student-edited bar review material of the University of Santo Tomas, Faculty of Civil Law. Communications regarding the Notes should be addressed to the Academi...

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LABOR LAW AND SOCIAL LEGISLATION 2018 GOLDEN NOTES FACULTY OF CIVIL LAW UNIVERSITY OF SANTO TOMAS MANILA

The UST GOLDEN NOTES is the annual student-edited bar review material of the University of Santo Tomas, Faculty of Civil Law. Communications regarding the Notes should be addressed to the Academics Committee of the Team: Bar-Ops.

Address:

Academics Committee UST Bar Operations Faculty of Civil Law University of Santo Tomas España, Manila 1008

Tel. No:

(02) 731-4027 (02) 406-1611 loc. 8578

Academics Committee Faculty of Civil Law University of Santo Tomas España, Manila 1008 All rights reserved by the Academics Committee of the Faculty of Civil Law of the Pontifical and Royal University of Santo Tomas, the Catholic University of the Philippines. 2018 Edition. No portion of this material may be copied or reproduced in books, pamphlets, outlines or notes, whether printed, mimeographed, typewritten, copied in different electronic devises or in any other form, for distribution or sale, without a written permission. A copy of this material without the corresponding code either proceeds from an illegal source or is in possession of one who has no authority to dispose the same.

No. ____________ Printed in the Philippines, July 2018.

ACADEMIC YEAR 2018-2019 CIVIL LAW STUDENT COUNCIL NIKKI MEI Q. KO PATRICIA S. HIDALGO MARLO S. NEPOMUCENO LYODYCHIE Q. CAMARO GENHIS B. ALUNDAY JOSHUA B. UROLAZA KRIZELLE R. RUIZ JHAYPEE D. GUEVARRA

PRESIDENT INTERNAL VICE PRESIDENT EXTERNAL VICE PRESIDENT SECRETARY TREASURER AUDITOR PUBLIC RELALTIONS OFFICER CHIEF OF STAFF

TEAM: BAR-OPS CLARA LOUISSE J. YUMANG NINO JOSEPH B. PIO RODA JERREMIAH KRIZIAH B. BATALLER CHRISTINE JOYCE P. ANDRES KRIZA NINA B. MALALUAN MARYLOU RENZI OLOTEO ELOUISA ANN DC. CARREON CIARI T. MENDOZA NICOLE MARIE A. CORTES ELISHA ELAINE D. BAYOT JOSEPHINE ANG PATRICIA MAE D. GUILLERMO RAFAEL JEROME M. MENDOZA MARSHAN DEINN S. GUALBERTO NICOLE C. MABANAG KIER JOHN V. UY MON FRANCIS A. TOLENTINO MICHAEL EARVIN R. SABADO JUSTIN SANTIAGO L. BELTRAN GLENN MATTHEW C. MANLAPID JAMES ROOS L. TAN VAN ANGELO K. RESPICIO

CHAIPERSON VICE-CHAIRPERSON SECRETARY ASST. SECRETARY ASST. SECRETARY HEAD, PUBLIC RELATIONS OFFICER ASST. HEAD, PUBLIC RELATIONS OFFICER ASST. HEAD, PUBLIC RELATIONS OFFICER HEAD, FINANCE COMMITTEE ASST. HEAD, FINANCE COMMITTEE ASST. HEAD, FINANCE COMMITTEE HEAD, HOTEL ACCOMODATIONS COMMITTEE ASST. HEAD, HOTEL ACCOMODATIONS COMMITTEE ASST. HEAD, HOTEL ACCOMODATIONS COMMITTEE ASST. HEAD, HOTEL ACCOMODATIONS, COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE LOGISTICS COMMITTEE

ATTY. AL CONRAD B. ESPALDON ADVISER

ACADEMICS COMMITTEE EDREA JEAN V. RAMIREZ MARIELLA A. MARASIGAN ARIANNA LAINE T. SARMIENTO MARIA ANGELICA J. HADLOC MAICA A. PRUDENTE GENA MYRTLE P. TERRE JED NATHANIEL GONZALES LAURISSE MARIE T. PERIANES CIARI T. MENDOZA

SECRETARY GENERAL ASST. SECRETARY GENERAL EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE EXECUTIVE COMMITTE EXECUTIVE COMMITTEE LAYOUT ARTIST LAYOUT ARTIST COVER DESIGN ARTIST

LABOR LAW COMMITTEE BELLE COLLEEN T. DE LEON LABOR LAW COMMITTEE HEAD JANICE BELLE T. BUZON JAYSON GABRIEL R. SORIANO BION HENRIK A. PRIOLO

ASST. HEAD, LABOR STANDARDS ASST. HEAD, LABOR RELATIONS ASST. HEAD, SOCIAL LEGISLATIONS

MEMBERS ERIK PAUL E. PONCE IVAN BENEDIK T. SADSAD LORENZ DALE S. TIBUS ALYANNA PAULA A. VELOSO

ATTY. KING JAMES CARLO HIZON ATTY. KENNETH JAMES CARLO HIZON Advisers

FACULTY OF CIVIL LAW UNIVERSITY OF SANTO TOMAS ACADEMIC OFFICIALS ATTY. NILO T. DIVINA

REV. FR. ISIDRO C. ABAÑO, O.P.

DEAN

REGENT

ATTY. ARTHUR B. CAPILI FACULTY SECRETARY

ATTY. ELGIN MICHAEL C. PEREZ LEGAL COUNSEL UST CHIEF JUSTICE ROBERTO CONCEPCION LEGAL AID CLINIC

JUDGE PHILIP A. AGUINALDO SWDB COORDINATOR

LENY G. GADANIA, R.G.C. GUIDANCE COUNSELOR

OUR DEEPEST APPRECIATION TO OUR MENTORS AND INSPIRATION

ATTY. ARNOLD E. CACHO ATTY. BENEDICT G. KATO ATTY. ROLAND L. MARQUEZ DEAN SALVADOR A. POQUIZ ATTY. CESAR E. SANTAMARIA, JR.

For being our guideposts in understanding the intricate sphere of Labor Law and Social Legislation. -Academics Committee 2018

DISCLAIMER THE RISK OF USE OF THIS BAR REVIEW MATERIAL SHALL BE BORNE BY THE USER

TABLE OF CONTENTS I.

Fundamental Principles and Concepts ............................................................................. 1 A. Construction in favor of labor ...............................................................................................................................2 B. Social justice ....................................................................................................................................................................3 C. Legal basis ........................................................................................................................................................................3 1. 1987 Constitution (State Policies, Bill of Rights, and Social Justice) ........................................4 2. New Civil Code .....................................................................................................................................................6

II.

Recruitment and Placement ..................................................................................... 10

III.

Regulation of Recruitment and Placement Activities ............................................ 13 A. Illegal recruitment .....................................................................................................................................................19 1. Elements.................................................................................................................................................................19 2. Prohibited activities .........................................................................................................................................16 3. Types of illegal recruitment .........................................................................................................................19 4. Illegal recruitment versus estafa ................................................................................................................21 5. Liability of local recruitment agency and foreign employer .......................................................21 a. Theory of imputed knowledge ........................................................................................................22 b. Solidary liability.......................................................................................................................................23 6. Termination of contract of migrant worker without just or valid cause ..............................23 7. Direct hiring .........................................................................................................................................................24 B. Employment of Non-resident Aliens................................................................................................................26

IV.

Labor Standards ......................................................................................................... 29 A. Conditions of employment ....................................................................................................................................29 1. Scope ........................................................................................................................................................................29 2. Normal hours of work .....................................................................................................................................31 a. Compressed work week........................................................................................................................31 b. Waiting time ...............................................................................................................................................33 c. Power interruption/brown-out ........................................................................................................34 3. Meal break .............................................................................................................................................................35 4. Night Shift Diffrential .....................................................................................................................................36 5. Overtime ................................................................................................................................................................37

6. Rest period .......................................................................................................................................................... 40 7. Holiday pay ......................................................................................................................................................... 42 8. 13th month pay .................................................................................................................................................. 47 9. Service charge .................................................................................................................................................... 51 B. Wages .......................................................................................................................................................................... 52 1. Wages versus salary ........................................................................................................................................ 53 2. Facilities versus supplements .................................................................................................................... 53 3. Non-diminution of benefits......................................................................................................................... 57 4. Payment of wages ............................................................................................................................................ 59 5. Prohibitions regarding wages ................................................................................................................... 61 6. Wage order .......................................................................................................................................................... 62 7. Wage distortion ............................................................................................................................................... 64 C. Leave ............................................................................................................................................................................ 67 1. Service Incentive Leave ............................................................................................................................. 67 2. Maternity Leave ............................................................................................................................................. 68 3. Paternity Leave .............................................................................................................................................. 69 4. Parental Leave for Solo Parents ............................................................................................................ 70 5. Special Leaves for women workers (Magna Carta of Women) ............................................ 71 D. Special Group of Employees ............................................................................................................................ 73 1. Women ............................................................................................................................................................... 73 a. Discrimination ....................................................................................................................................... 73 b. Stipulation against marriage .......................................................................................................... 74 c. Prohibited acts ....................................................................................................................................... 75 d. Sexual Harassment .............................................................................................................................. 76 2. Minors ................................................................................................................................................................. 78 3. Kasambahay .................................................................................................................................................... 83 4. Homeworkers ................................................................................................................................................. 89 5. Night workers ................................................................................................................................................. 90 6. Apprentices and Learners ....................................................................................................................... 93 7. Disabled workers .......................................................................................................................................... 96 a. Equal opportunity ............................................................................................................................... 97 b. Discrimination ....................................................................................................................................... 97

V.

Post-Employment..................................................................................................... 100 A. Employer-employee relationship ...................................................................................................................100 1. Test to determine employer-employee relationship ...................................................................101

2. Kinds of employment.................................................................................................................................... 104 3. Contracting or subcontracting ................................................................................................................. 115 a. Elements ..................................................................................................................................................... 116 b. Trilateral relationship.......................................................................................................................... 116 c. Solidary liability ...................................................................................................................................... 119 B. Termination of employment ............................................................................................................................. 120 1. Termination by employer .......................................................................................................................... 121 a. Just causes ................................................................................................................................................. 121 b. Authorized causes ................................................................................................................................. 129 c. Due process .............................................................................................................................................. 139 i.

Twin-notice requirement ...................................................................................................... 139

ii.

Hearing; ample opportunity to be heard ....................................................................... 141

a. Resignation versus constructive dismissal ............................................................................... 143 2. Termination by employee .......................................................................................................................... 120 a. Resignation versus constructive dismissal ............................................................................... 143 3. Reliefs for illegal dismissal ........................................................................................................................ 147 4. Preventive Suspension ................................................................................................................................ 152 C. Retirement.................................................................................................................................................................. 152

VI.

Management Prerogative ........................................................................................158 1. Discipline..................................................................................................................................................................... 159 2. Transfer of employees .......................................................................................................................................... 159 3. Productivity Standard .......................................................................................................................................... 160 4. Bonus............................................................................................................................................................................. 160 5. Change of working hours .................................................................................................................................... 161 6. Marriage between employees of competitor-employers ................................................................... 162 7. Post-Employment ban .......................................................................................................................................... 162

VII.

Social Welfare Legislation .......................................................................................164 A. SSS Law ........................................................................................................................................................................ 164 1. Coverage .............................................................................................................................................................. 165 2. Exclusions ........................................................................................................................................................... 167 3. Benefits ................................................................................................................................................................ 168 4. Dependents, beneficiaries .......................................................................................................................... 172 B. GSIS Law ...................................................................................................................................................................... 176 1. Coverage and Exclusions ............................................................................................................................ 180

2. Dependents, beneficiaries ..........................................................................................................................181 3. Benefits...........................................................................................