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    SUN TZU NOTES

    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 severalamendments. )he most substantial amendmentis A "71-.

    t is the law governing *abor Standards andelations.

    Significance/ 0efore the effectivity of the laborcode, 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 towardsproduction 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 employmentwhich employees are legally entitled to and employersmust comply with.

    )he minimum re2uirements prescribed by e&isting lawsrules and regulations and other issuances relating towages, hours of wor!, cost of living allowances and othermonetary and welfare benefits, including those set byoccupational safety and health ha3ards. 4Section 7, ule

    ules on the isposition of *abor Standards +ases 5September 1", 1967

    8&. $vertime pay, night differential pay, premium payminimum wage

    0oo! :

    #. *A0$ 8*A)$(S

    efers to the interactions between the employers andemployees 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 onegotiation.

    ;. S$+A* A( S*A)$(S

    *egislations that grant benefits which apply to wor!erswho are unable to wor! on account of sic!ness odisability or not at wor!.

    efers to a broader category of law that protects opromotes 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 a

    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 anyperson by means of enticement, violence, intimidation othreat, use of force or coercion, including deprivation o

    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, inreturn for protection and the right to wor! on their leasedfields.

    A little better off than slavery.

    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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    ;. A)SA(S@? $ (8?8(8()+$()A+)$S@? 4recogni3ed by *abor +ode

    )he same with modern independentcontractorship wherein an independent contractoris engaged in a business separately distinct fromthe principal, the performed job, wor! or service,and wor!s according to his own means and

    methods, free from the control and direction ofthe principal e&cept as to the results thereof.

    A free person who offers his services to otherssubject to nobodyCs will

    . 8 SS)8M 4recogni3ed by *abor +ode

    )he same with modern employeremployeesystem where there is an employee under thecontrol and supervision of an employer as to themeans, manner or method of which the wor! isto be accomplished including the result thereofand is paid for the wor! done in terms of wage.

    A person offers his services to another under anemployment contract for which such service is

    paid by wages.

    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 laborlaws and it possesses rulema!ing power in theenforcement of the +ode.

    0ut a rule or regulation that e&ceeds thedepartmentCs 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 besubordinate 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 formpart of the legal system of the ?hilippines.

    BASES AND LIMITATIONS IN THE ENACTMENT OFLABOR LAWS

    BASES

    1. ?$*+8 ?$eneraeneral 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&ample/

    Article 263 LC

    4g

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    1. ($(M?AM8() +*AHS8

    Article ! Section "%& (o law impairing theobligation of contracts shall be passed.

    +ongress could not pass laws which would impairthe obligations of the parties, however, the same

    can pass laws to regulate the obligations andcontracts.

    May be impaired by the e&ercise of the state ofpolice power.

    #. 8IHA* ?$)8+)$( +*AHS8

    Article ! Section "&(o person shall be deprived oflife, liberty, or property without due process of law,nor shall any person be denied the e2ual protectionof the laws.

    ndividuals similarly situated must be treatede2ually under the; law.

    82uality among e2uals

    ;. ?$@0)$( A>A(S) (:$*H()AS8:)H8

    A'(CLE ! Section "8)2*& (o involuntary servitudein any form shall e&ist e&cept as a punishment for acrime whereof the party shall have been dulyconvicted.

    . H8 ?$+8SS +*AHS8

    T(PES OF LABOR LAW LE3ISLATION

    1. ?$)8+):8#. a3ette or in a newspaper of generacirculation, unless it is otherwise provided.

    Sec& "#& rospectivity& 1*aws shall have prospective effecunless the contrary is e&pressly provided.Sec& 2%& nterpretation of La/s and Administrative ssuances&

    1 n the interpretation of a law or administrative issuancepromulgated in all the official languages, the 8nglish te&t shalcontrol, unless otherwise specifically provided. n case oambiguity, omission or mista!e, the other te&ts may beconsulted.

    Sec& 2"& o mplied 'evival of 'epealed La/&1

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    doubt in implementing and interpreting the law,labor will enjoy no builtin advantage and the lawwill have to be applied as it is.

    )he law in protecting the rights of the laborer,authori3es neither oppression nor self destructionof the employer.

    +ourt decisions adopt a liberal approach thatfavors the e&ercise of labor rights.

    RELATIONS BETWEEN CAPITAL AND LABOR

    2. Art. 1700. )he relations between capital andlabor are not merely contractual. )hey are soimpressed with public interest that labor contractsmust yield to the common good. )herefore, suchcontracts are subject to the special laws on laborunions, collective bargaining, stri!es and loc!outs,closed shop, wages, wor!ing conditions, hours oflabor and similar subjects.

    *abor disputes also affect the state and the public

    at large if employees are engaged in stri!e orother concerted activities.

    ?A)8S )$ 8M?*$M8() +$()A+)

    1. 8mployer#. 8mployee;. ?ublic. State

    PRINCIPLE OF NON0OPPRESSION

    3. Art. 1701. (either capital nor labor shall actoppressively against the other, or impair the interestor convenience of the public.

    (ot to re2uire employee to wor! against his willnor to compel the employer to hire the employeeagainst the formerCs will.

    4. Art. 1702.n case of doubt, all labor legislationand all labor contracts shall be construed in favor ofthe safety and decent living for the laborer.

    LABOR AND 8CHATTEL9

    %labor is not a chattel nor a commodity, buthuman, and must be dealt with from thestandpoint of human interest.'4asufrim vs. smc

    TRIPARTISM IN DECISION AND POLIC(MA:IN3 BODIES OF THE 3OERNMENT

    ART. 275. Triartis! and triartiteconferences. - 4a )ripartism in labor relations ishereby declared a State policy. )owards this end,wor!ers and employers shall, as far as practicable,be represented in decision and policyma!ing bodiesof the government.

    4b )he Secretary of *abor and 8mployment or hisduly authori3ed representatives may, from time to

    time, call a national, regional, or industrial tripartiteconference of representatives of government, wor!ers andemployers for the consideration and adoption of voluntarycodes of principles designed to promote industrial peacebased on social justice or to align labor movement relationswith established priorities in economic and sociadevelopment. n calling such conference, the Secretary of*abor and 8mployment may consult with accredited

    representatives of wor!ers and employers. )As amended bySection 32! 'epublic Act o& 6$"5! arch 2"! "#8#*&

    eason/ elations between capital and labor are not merelycontractual. )hey are so impressed with public interest tharepresentations from employer and employee in decision andpolicyma!ing bodies of the government are necessary. )hisis also in affirmation of the role of the State as the guardianof the peopleCs rights and the constitutional provision onprotection to labor.

    8&.

    +reation of )

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    )he minimum re2uirements prescribed bye&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 *abor

    Standards +ases 5 September 1", 1967

    AS?8+)S $= *A0$ S)A(AS

    1. M8*$A):8 *A0$ S)A(AS

    ntended to e&pand the flow of income orbenefits to wor!ingman that are re2uired for adecent living.8&. $vertime pay, premium pay, nightshiftdifferential pay

    #. ?$)8+):8 *A0$ S)A(AS

    ntended to protect harsh and oppressiveconditions of wor! that inimical to health, safety

    and wellbeing of the wor!ers.8&. ?rescribed hours of wor!

    +$(S8IH8(+8S $= M8*$A):8 A( ?$)8+):8*A0$ S)A(AS

    A. Social 8njoying a better living conditions, humane

    conditions, high salary, greater 2uality of life

    0. ?olitical elationship of people and government would be

    better because people are enjoying healthy livingconditions.

    +. 8conomic

    More money, more demands because there willbe an increase in basic production ofcommodities.

    ?H?$S8 $= *A0$ S)A(AS emedial and @umanitarian

    S$H+8S $= *A0$ S)A(AS

    1. 8mployment +ontract

    eason/ *S are terms and conditions fi&ed by lawand the contract is the law between the parties.8&. 8mployer hires an employee and gives a highsalary in effect the former provides the latter a labor

    standard plus car, allowances and other benefits.

    #. +ompany ?olicies

    eclarations or statements in written form fi&ingemployment benefits usually found in companymanual.8&. esignation benefit, retirement benefit otherthan the one mandated by law.

    ;. +ompany ?ractice

    +ustomary mode of employerCs conduct, usually nonverbafi&ing employment benefits over a period of time throughrepetitive employer behavior.8&. :acation with pay, birthday leave

    . Administrative $rder of $*8

    Also prescribes the terms and conditions of employment.8&. +ompressed wor!wee!

    -. +ompulsory or :oluntary Arbitration

    the award given to the party, it is another source of a*abor Standard

    ". +ollective 0argaining Agreement or +0A can also be a source of *S because it provides terms and

    conditions of employment prescribed by law.

    7. Statutes

    8AS$(/ ?rinciple of (ondiminution of benefits.

    CONSCEPT OF EMPLO(ER < EMPLO(EE= NATURAL AND>URIDICAL PERSON

    IN LABOR STANDARDS

    Art -/*. %8mployer' includes any person directly oindirectly in the interest of an employer in relation to anemployee and shall include the >overnment and all itsbranches, subdivision and instrumentalities, all governmentowned or controlled corporations and institutions, as well asnonprofit private institutions, or organi3ations.4e&pandeddefinition

    Art -/c. %8mployee' includes any individual employed by anemployer.

    IN LABOR RELATIONS

    Art 22e. %8mployer' includes any person acting in theinterest of an employer, directly or indirectly. )he term shalnot include any labor organi3ation or any of its officers oragents e&cept when acting as employer.

    Art 22&. %8mployee' includes any person in the employ ofthe employer. )he term shall not be limited to the employeesof a particular employer, unless this code so e&pressly statest shall include any individual whose wor! has ceased as aresult of or in connection with any current labor dispute orbecause of any unfair labor practice if he has not obtainedany other substantially e2uivalent and regular employment4e&panded definitionCOMMENTS?

    8M?*$8

    may be A(7'AL +' 7'9CAL, a single proprietorshipa partnership or a corporation.

    )he >overnment is an employer within the meaning of the*abor +ode in *abor Standards.

    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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    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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    facilities and materials as well as capital described asunit development fund are @A**MANS $= AMA(A>8M8() SS)8M where there can be noescaping the conclusion that one is an employee ofthe insurance company.'

    Invest:ent )lanning Cor+ v. SSS

    ; %%&%!a:-6io vs. NLRCR 7#7'4 "4&'1&("

    $( %A

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    %)he better approach would be to adopt a )

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    prerogative. t is not a right in which you can goto court and enforce the right to hire a person,otherwise it will violate the constitutionalprovision against involuntary servitude, if one iscompelled to be anotherCs employee. (o personcan be compelled against his will to do an actwhether legal or illegal. )hus, an employercannot go to court and get an injunction to

    compel a person to become his employee. f atall, the employee can only e&ercise theprerogative to invite that person and to hire himif he so desires. n that sense, the right to hire isessentially 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 isfree to regulate, according to his own discretion and

    judgment, all aspects of employment, includinghiring, wor! assignments, wor!ing methods, time,place and manner or wor!, tools to be 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 of wor!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 PRERO3ATIEABSOLUTE

    (o, it is a mere prerogative subject to limitationsprovided 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 shallbe unlawful for an employer to re2uire as a conditionof employment or continuation of employment that awoman employee shall not get married, or tostipulate e&pressly or tacitly that upon gettingmarried, a woman employee shall be deemedresigned or separated, or to actually dismiss,

    discharge, discriminate or otherwise prejudice a womanemployee merely by reason of her marriage.

    Applies to women in ordinary and special occupations t encourage illicit relationship.

    )T@T V. NLRC'7' s5ra 1(#

    %t assaults good morals and public policy, tending to deprivea woman of freedom to choose her status, a privilege that byall accounts inheres in the individual as an intangible andinalienable right %

    ?A*

    2. A e)7#o+er !s 7ro6!*!te$ &ro) e)7#o+!' "+7erso *e#o% +e"rs o#$ ! " @$ert"!' %6!c6!s 6""r$o@s or $e#eter!o@s ! "t@re.

    ART. 1-.#ini!u! e!lo$able age& 4a (o child belowfifteen 41- years of age shall be employed, e&cept when hewor!s directly under the sole responsibility of his parents orguardian, and his employment does not in any way interferewith his schooling.4amended by 'A $6"%! /hich /as alsoamnded by 'A $658 and 'A #23"! implemented by 9+ 651%>*

    4b Any person between fifteen 41- and eighteen 416 yearsof age may be employed for such number of hours and suchperiods of the day as determined by the Secretary of *aborand 8mployment in appropriate regulations.

    4c )he foregoing provisions shall in no case allow theemployment of a person below eighteen 416 years of age inan underta!ing which is ha3ardous or deleterious in nature asdetermined by the Secretary of *abor and 8mployment.

    DO NO. 40--

    @AOA$HS

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    ;.

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    beverages, into&icating drin!s, tobacco and itsbyproducts, gambling or any form of violence orpornography.

    . A e)7#o+er !s 7ro6!*!te$ &ro) reG@!r!' "s" co$!t!o o& e)7#o+)et t6"t " 7erso or" e)7#o+ee s6"## ot Ko! " #"*oror'"!"t!o or s6"## %!t6$r"% &ro) oe to

    %6!c6 6e *e#o's. (ELLOW DO3CONTRACT

    ART. 24. %nfair labor ractices of e!lo$ers&t shall be unlawful for an employer to commit any ofthe following unfair labor practice/4b )o re2uire as a condition of employment that a

    person or an employee shall not join a labororgani3ation or shall withdraw from one to which hebelongs.

    FULL TEXT OF THE SPECIAL LAWS AMENDIN3

    ART 1- LC INCLUDIN3 D 04

    RE)9BLIC ACT NO. 7#%"S+e5ial )rote5tion Against C*il6 Ab-se$ E0+loitationan6 Dis5ri:ination A5t

    Sec. 1#. Employment of Children&5 +hildren belowfifteen 41- years of age may be employed e&cept/

    41

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    )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 worst

    forms 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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    %e 8&poses the child to physical danger such as, butnot limited to the dangerous feats of balancing,physical strength or contortion, or which re2uires themanual transport of heavy loads or

    %f s performed in an unhealthy environmente&posing the child to ha3ardous wor!ing conditions,

    elements, substances, coagents or processesinvolving ioni3ing, radiation, fire, flammablesubstances, no&ious components and the li!e, or toe&treme temperatures, noise levels, or vibrations or

    %g s performed under particularly difficultconditions or

    %h 8&poses the child to biological agents such asbacteria, fungi, viruses, proto3oans, nematodes andother parasites or

    %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 safetyor 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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    ii. )he employment does not endanger thechildTs life, safety, health and morals, nor impair thechildTs normal developmentiii. )he child is provided with a t least themandatory elementary or secondary education andiv. )he employer secures a wor! permit for thechild in accordance with Section 651# of these ules.

    +@A?)8 e2uirements to Avail of 8&ceptions to 8mployment?rohibition

    S8+)$( 6.

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    employer shall file a notice with the egional $fficewhere the wor! is to be performed that it willunderta!e activities involving child wor!.

    )he notice shall be in the form prescribed by theepartment and shall state the appro&imate numberof child wor!ers to be employed, the date, place andtime the wor! is to be performed, and an

    underta!ing that the employment shall be inconformity with epublic Act (o. 9#;1 and theseules.

    B. UNDER SPECIAL LAWS

    . I " %or0re#"te$ or e)7#o+)ete5!ro)et, " e)7#o+er !s 7ro6!*!te$&ro) "s!' seJ@"# &"5or &ro) "+!$!5!$@"# "s " co$!t!o ! t6e 6!r!' or !t6e e)7#o+)et o& s"!$ !$!5!$@"#.

    REPUBLIC ACT NO. ///At!0SeJ@"# H"r"ss)et Act o& --

    S8+)$( ;. .or0! Education or (rainin4 1'elated!Se?ual @arassment 9efined&

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    prove that he impairs the satisfactory performanceof the wor! involved to the prejudice of thebusiness entity/ ?rovided, however, )hat theemployer first sought to provide reasonableaccommodations for disabled persons

    4h =ailing to select or administer in the mosteffective manner employment tests which

    accurately 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 SecrecyLa/, no ban! shall employ casual or non regularpersonnel on too lengthy probationary personnel inthe conduct of its business involving ban! deposits.

    RA -2 At!0tr"&&!c!' o& Persos Act o&21

    4d Force$ L"*or and Slavery refer to thee&traction of wor! or services from any person bymeans of enticement, violence, intimidation orthreat, use of force or coercion, including deprivation

    of freedom, abuse of authority or moral ascendancy,debtbondage or deception.

    Sec. . Acts of )raffic!ing in ?ersons. t shall beunlawful for any person, natural or juridical, tocommit any of the following acts/4a )o recruit, transport, transfer harbor, provide,or receive a person by any means, including thosedone under the prete&t of domestic or overseasemployment or training or apprenticeship, for thepurpose of prostitution, pornography, se&uale&ploitation, &orce$ #"*or, slavery, involuntaryservitude or debt bondage

    4b )o introduce or match for money, profit, or

    material, economic or other consideration, anyperson or, as provided for under epublic Act (o."9--, any =ilipino woman to a foreign national, formarriage 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 debtbondage

    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 o

    not 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 custodyof 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 obalancing, physical strength or contortion.

    #. Any person, who, being an acrobat, gymnastropewal!er, diver, wild animal tamer, or circusmanager or engaged in a similar calling , shalemploy in e&hibitions of this !inds, children under1" years of age who are not his children odescendants.

    ;. Any person engaged in any of the call ingsenumerated in the ne&t preceding paragraph whoshall employ any descendant of his under 1# yearsof age in such dangerous e&hibitions.

    . Any ascendant, guardian, teacher, or personentrusted in any capacity with the care of a childunder 1" years of age, who shall deliver such childgratuitously to any person following any of thecallings enumerated in paragraph # hereof, or toany habitual vagrant or beggar.

    f the delivery shall have been made in considerationof ant price, compensation or promise, the penalty shalin every case be imposed in its ma&imum period.

    n either case, the guardian or curator convictedshall also be removed from office as guardian or curatorand in the case of the parents of the child, they may bedeprived temporarily or perpetually, in the discretion othe court, of their parental authority.

    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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    -. Any person who shall induce any childunder 1" years of age to abandon thehome of its ascendants, guardians,curators, or teachers to follow any personengaged, in any of the callings mentionedin paragraph # hereof, or to accompanyany habitual vagrant or beggar.

    DO No. 4, Ser!es o& --- H""r$o@s Wor "$Act!5!t!es &or Persos Be#o% +e"rs o& "'e

    See full te&t under topic on prohibitions prior tohiring.

    DOLE Me)o C!r. No. 2 ser!es o& -- Tec6!c"#3@!$e#!es &or C#"ss!&+!' H""r$o@s "$ No0H""r$o@s Est"*#!s6)ets, Wor7#"ces "$Wor Processes, see p. -6- =$O

    DO NO. 04, SERIES OF 24

    See full te&t under topic on prohibitions prior to

    hiring.

    HIRIN3 OF EMPLO(EES

    RA /-2, sec 11*, ART I Ne% E#ectr!c"#E'!eer!' L"%

    RA 4-, Sec 14C, ART I P6!#!77!eMec6"!c"# E'!eer!' Act o& --

    IV. WAGES & WAGE

    RATIONALIZATION ACT

    WA3E AND SALAR(= CONCEPT

    WA3E S. SALAR(

    8 applies to the compensation for manual labor,

    s!illed or uns!illed, paid at stated times, andmeasured by the day, wee!, month, or season.

    ndicates inconsiderable pay for a lower and lessresponsible character of employment.

    SA*A enotes a higher degree of employment or a

    superior grade of services, and implies a positionor office.

    Suggestive of a larger and more permanent orfi&ed compensation for more important service.

    0y some of the authorities, the word %wages' in itsordinary acceptance, has a less e&tensive meaningthan the word %salary', %wages' being ordinarilyrestricted to sums paid to artisans, mechanics,laborers, and other employees of li!e class, asdistinguished from the compensation of cler!s,officers of public corporations, and public offices. n

    many situations, however, the words %wages' and %salaryare S($(M$HS. K;- Am. Fur. Sec. ";, p. 9"97L

    $ur S+ reached the same conclusion, the words %wages' and%salary' are in essence synonymous.

    E-itable )CIB vs. Sa6a5.R. No. %#277'$ =-ne !$ '""#

    8 S($(M$HS

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    ISAE v. -is-:bing.R. No. %'!!21 =-ne %$ '"""

    %)his doctrineElegal truism means that persons whowor! with substantially e2ual 2ualification, s!ill,effort Q responsibility, under similar conditionsshould be paid similar salaries, notwithstanding itsinternational character.

    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 8 4deductibility

    1. Must be customarily furnished by the employer to the

    employee#. Must be charged at fair and reasonable value and;. )he provision on deductible facilities must be voluntarily

    accepted by the employee in writing.

    More significantly, the food and lodging, or the electricity andwater consumed by the petitioner were not facilities busupplements& A benefit or privilege granted to an employeefor the convenience of the employer is not facility. )hecriterion in ma!ing a distinction between the two not so muchlies in the 0ind )food! lod4in4* but the purpose. +onsideringtherefore that hotel wor!ers are re2uired to wor! differentshifts and are e&pected to be available at various odd hourstheir ready availability is a necessary matter in the operationsof a small hotel, such as the private respondentCs hotel.'

    f the re2uisites are all present, that facilities may ta!ethe 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 andreasonable value, as determined by the Secretary o*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 speciaprivileges 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 a

    supplement will depend on the 7@r7ose and not on the!ind.

    So if it is principally or mainly for the benefit of theemployee, classify as facilities, and the fair andreasonable value of that can be considered as deductiblefrom the employeeCs wage.

    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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    EMPLO(EE BENEFITS

    WOR:ERS LIEN

    Art // CC? )he laborerCs wages shall be a lien onthe goods manufactured or the wor! done.

    Re"so? 0y virtue of this new lien, the laborers whoare not paid by an unscrupulous and irresponsibleindustrialist or manager may by legal means havethe goods manufactured thru the sweat of theirbrow sold, and out of the proceeds get their 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 laboreronly if he was directly employed or engaged bythe owner. )he rule does not apply if contractor,with men under him, had underta!en the job.

    EXEMPTION FROM EXECUTION ORATTACHMENT

    Art / CC? )he laborerCs wages shall not besubject to e&ecution or attachment, e&cept for debtsincurred for food, shelter, clothing and medicalattendance.

    3R? 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 benefits depending on the methodsof fi&ing their compensation.

    8&. 1;thmo. ?ay which e&cludes job or tas! basis andpurely on commission employees, under Art 6#, wor!erspaid by results are e&empted from overtime pay, serviceincentive leave, etc. 4conditions of employment.

    WA3E= $e&!e$

    Art -/& 8paid to employee shall mean the remuneration o

    earnings, however designated, capable of being e&pressedin terms of money, whether fi&ed or ascertained on at!)e, t"s, 7!ece, or co))!ss!o *"s!s, or ot6er)et6o$ o& c"#c@#"t!' t6e s")e, which is payable byan employer to an employee under a written or unwrittencontract of employment for wor! done or to be done, ofor services rendered or to be rendered and includes thefair and reasonable value, as determined by the Secretaryof *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, thecompensation is earned and becomes due regardless oresult. )he standard forms of compensation based ontime spent are salaries or wages by the day, wee!, ormonthly.

    2 CLASSIFICATIONS OF EMPLO(EES BASED ON TIMESPENT

    1. ailypaid#. Monthlypaid

    . DAIL(0PAID EMPLO(EES

    )hose employees who are paid on the days actuallywor!ed e&cept unwor!ed regular holidays when they arepaid their basic wage if they are present or a leave withpay on the wor!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 daysspecial days and regular holidays. t is the standardcompensation rate for managerial personnelprofessionals, administrative employees and other whitecollar wor!ers, including clerical employees and highegrade s!illed wor!ers.

    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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    A:A()A>8/ relative economy in record!eeping,and higher morale of employees resulting fromassociation of this method with tenure andpermanency.

    B. >OB OR TAS: RATE

    A flat or fi&ed sum for each particular job or tas!

    completed, without regard to the number f hoursactually spent in the performance or completion.

    Appropriate only on the following conditions/

    a.b.

    C. PIECE WOR:, OR B( THE OUTPUT INTERMS OF WOR: UNITS

    a. 8/ 8ncourage the wor!er to be moreproductive.

    =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 laborcode will tell us the different government agenciesinvolved in the fi&ing of wages and also how toresolve wage distortion4procedure in case wagedistortion results in fi&ing wage

    ?H?$S8/ was intended to rationali3e wages

    =S), by providing for fulltime boards to policewages roundthecloc!.

    S8+$(, by giving the boards enough powers toachieve this objective.

    POLICIES OF THE STATE

    1. )o rationali3e the fi&ing of the minimum wage.!)7ort"t

    t has been rationali3ed because article 1# of this Aprovides for the standards and criteria that should guidethe agency of government when it comes to fi&ing theminimum wage. t is noted that under the standardcriteria, that the congress has tried to weigh the factorsinvolving the employers, as well as the factors involvingthe laborers when it comes to fi&ing of employeeCs wage inorder to rationali3e it.

    0efore A "7#7, it was only MalacaVang through a ? thatdictates how much should be the minimum wage in the?hilippines. Most often than not, those employers in thefarflung areas are adversely affected because the fi&ingof minimum wage is not rationali3ed. t does not ta!einto consideration, for e&ample, the capitali3ation of theemployer, the profit e&pected, the cost of living in aparticular area.

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    )here was a wage distortion affecting theestablishment and what the employees did was tostage a stri!e in order to compel the employer tosolve wage distortion. )he S+ said ($. f A "7#7 ise&amined, stri!e is not provided as a solution inresolving wage distortion. t should be throughcollective bargaining. )herefore, the S+ declared thestri!e as illegal because the ules mplementing A

    "7#7 provides for a specific and detailed approachon how to resolve wage distortion short of stri!e orloc!out.'

    3OERNMENT A3ENCIES INOLED

    A. N"t!o"# W"'es "$ Pro$@ct!5!t+Co))!ss!o NWPC

    ART. 2 LC. Creation of ational .a4es androductivity Commission& )here is hereby created a(ational

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    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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    corresponding wage orders subject to guidelinesissued by the +ommission 4As amended by epublicAct (o. "7#7, Fune 9, 1969.

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    %n line with A (o. "7#7Cs policy, (

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    Note? )he 0oard, upon strong and justifiablereasons, subject to the review or approval by the+ommission may e&empt establishments other thanthose enumerated above if they are in accord withthe rationale of e&emption.

    See page "9 =$O Appendi& O for the full te&t )hese are rules on e&emption from compliance

    with the prescribed wage increasesEcost of livingallowances granted by the )

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    %)he purpose of wage e&emptions is to helpfinancially distressed companies meet their laborcosts without endangering the e&istence or viabilityof the firm upon which both management and labordepend for a living.

    Hnder the spirit of

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    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 significantly 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 thesalary distinction between A and 0 has beendistorted. %A' may complain of a salary distortion.

    isparity in pay of two or more employeesholding the same position does not necessarilymean salary distortion referred to in Art 1#.

    )here is no distortion if the employees, whosewages are being compared, are located indifferent regions. )his is because wagefi&ing

    has been regionali3ed by A "7#7.

    @ow to rectify the distortion is not specified inthe law. )he +ourt has pointed out that throughArt. 1# the law recogni3es the validity ofne4otiated /a4e increases to correct wagedistortions. )he legislative intent is to encouragethe 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 ormanagement.

    )he +ourt has adopted the following formula as

    just and e2uitable to correct a salary distortion/

    Mini

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    intentional 2ualitative differences in the salary ratesbetween 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 passageof Art 1#, the law recogni3es the validity ofne4otiated /a4e increases to correct wage

    distortion.

    )he legislative intent is to encourage the partiesto 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 4voluntary

    arbitrator 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 bargainingagreement.

    A(O8 8S)A0*S@M8()

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    E:+loyers Confe6eration of t*e )*ili++ines vs.NW)C'"% SCRA 71(

    ) method in which the wageadjustment was to be applied to employees receivinga certain denominated salary ceiling. %

    )he first method was adopted in the earlier wageorders, while the latter methodwas used in A""B and A "7#7.

    )he shift from the first method to the secondmethod 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 wasdue to the fact that the latter minimi3ed wagedistortion disputes.

    >URISDICTION OER WA3E DISTORTIONDISPUTES

    LABOR ARBITRATION

    eference of a labor dispute to a third party fordetermination 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 encouragevoluntary arbitration on all labormanagementdisputes. 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 theparties to any dispute or controversy in order toobtain a speedy and ine&pensive final dispositionof the matter, select a judge of their own choice

    and by consent, submit their controversy to himfor determination.

    Hnder voluntary arbitration, the judge is namedby 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 imposedupon the parties by a superior authority which the partiesare obliged to accept. @e has no general character toadminister justice for a community. @e is rather part of asystem of selfgovernment created by and confined to theparties. KMaurice S. )rotta, Arbitration of LaborManagement isputes, American Management Association(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 thecase is the same as that of a *abor Arbiter.

    )he parties can agree to select a *abor Arbiter as avoluntary arbitrator because it is as to the agreement othe parties.

    Arbitration may be initiated either by 1 a SubmissionAgreement or # by a emand or (otice invo!ing acollective agreement arbitration clause. Sometimes both

    instruments are used in a case.

    Although the contract may establish the breadth of thearbitratorTs 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 iscalled arbitrator, while that in compulsory arbitration islabor arbiter.

    ?roceedings are (onlitigious in nature, not governed bytechnical 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 toact 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 governmentagency Kor by other means provided by the governmentLwhich 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 thestate.

    t is compulsory because the law declares the disputesubject to arbitration, regardless of the consent of theparties.

    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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    one by the egional Arbitration 0ranch of (*+Krefer to Art #17L

    t is an adversarial proceeding initiated by acomplaint Kusually by a unionL for wage distortionbefore the *abor Arbiter. )he other party isre2uired to answer.

    t is the *abor Arbiter who is clothed with theoriginal and e&clusive authority to conductcompulsory arbitration under Art. #17.

    ?roceedings after a labor arbiterTs decision isbrought up to the (ational *abor elations+ommission cannot be considered as part of thearbitration proceedings. )his is because in theappeal stage, the +ommission merely reviews the*abor ArbiterTs decision for errors of fact or law. tdoes not duplicate the proceedings held at the*abor ArbiterTs level. )hus, the clause Fpendin4final resolution of the case by arbitrationFshouldbe understood to be limited only to the proceedings

    before the *abor Arbiter, so that when the latterrendered his decision, the case could beconsidered finally resolved by arbitration. KSeehilippine Airlines, 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 innational interest cases certified or referred to it bythe $*8 secretary under Art. #";4g.

    APPEAL PROCEDURE IN COMPULSOR( ANDOLUNTAR( ARBITRATION

    000000000000000000For

    rese"rc60000000000000000000000000

    SPECIAL CIIL ACTION

    RULE +8)$A, ?$@0)$( A( MA(AMHS

    S8+)$( 1. &etition for certiorari.R

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    filed e&clusively with the +ommission on 8lections,in aid of its appellate jurisdiction.as a!ended b$A.#. 07-7-12-"C

    RULE 41A??8A*S =$M )@8 +$H) $= )AD A??8A*S A(

    IHASFH+A* A>8(+8S )$ )@8 +$H) $=

    A??8A*S

    S8+)$( 1. Scope.R)his ule shall apply toappeals from judgments or final orders of the +ourt of)a& Appeals and from awards, judgments, final ordersor resolutions of or authori3ed by any 2uasijudicialagency in the e&ercise of its 2uasijudicial functions.Among these agencies are the +ivil Service+ommission, +entral 0oard of Assessment Appeals,Securities and 8&change +ommission, $ffice of the?resident, *and egistration Authority, Social Security+ommission, +ivil Aeronautics 0oard, 0ureau of?atents, )rademar!s and )echnology )ransfer,(ational 8lectrification Administration, 8nergyegulatory 0oard, (ational )elecommunications+ommission, epartment of Agrarian eform under

    epublic Act (o. ""-7, >overnment Service nsuranceSystem, 8mployees +ompensation +ommission,Agricultural nventions 0oard, nsurance +ommission,?hilippine Atomic 8nergy +ommission, 0oard ofnvestments, +onstruction ndustry Arbitration+ommission, and voluntary arbitrators authori3ed bylaw. 4n

    S8+. #. Cases not covered.R)his ule shallnot apply to judgments or final orders issued underthe *abor +ode of the ?hilippines. 4n

    S8+. ;. 6'ere to aeal.RAn appeal underthis ule may be ta!en to the +ourt of Appeals withinthe period and in the manner herein provided,whether the appeal involves 2uestions of fact, of law,

    or mi&ed 2uestions of fact and law. 4n

    S8+. . &eriod of aeal.R)he appeal shall beta!en within fifteen 41- days from notice of theaward, judgment, final order or resolution, or from thedate of its last publication, if publication is re2uired bylaw for its effectivity, or of the denial of petitionerCsmotion for new trial or reconsideration duly filed inaccordance with the governing law of the court oragency a 2uo. $nly one 41 motion for reconsiderationshall be allowed. Hpon proper motion and thepayment of the full amount of the doc!et fee beforethe e&piration of the reglementary period, the +ourt ofAppeals may grant an additional period of fifteen 41-days only within which to file the petition for review.(o further e&tension shall be granted e&cept for the

    most compelling reason and in no case to e&ceedfifteen 41- days. 4n

    S8+. -. @ow appeal ta!en..RAppeal shall beta!en by filing a verified petition for review in seven47 legible copies with the +ourt of Appeals, with proofof service of a copy thereof on the adverse party andon the court or agency a 2uo. )he original copy of thepetition intended for the +ourt of Appeals shall beindicated as such by the petitioner.

    Hpon the filing of the petition, the petitioner shall pay tothe cler! of court of the +ourt of Appeals the doc!eting andother lawful fees and deposit the sum of ?-BB.BB for costs8&emption from payment of doc!eting and other lawful feesand the deposit for costs may be granted by the +ourt ofAppeals upon a verified motion setting forth valid groundstherefor. f the +ourt of Appeals denies the motion, thepetitioner shall pay the doc!eting and other lawful fees and

    deposit for costs within fifteen 41- days from notice of thedenial. 4n

    S8+. ". +ontents of the petition.R)he petition for reviewshall 4a state the full names of the parties to the case, withoutimpleading the court or agencies either as petitioners orespondents 4b contain a concise statement of the facts andissues involved and the grounds relied upon for the review 4cbe accompanied by a clearly legible duplicate original or acertified true copy of the award, judgment, final order oresolution appealed from, together with certified true copies ofsuch material portions of the record referred to therein andother supporting papers and 4d contain a sworn certificationagainst forum shopping as provided in the last paragraph osection #, ule #. )he petition shall state the specific materiadates showing that it was filed within the period fi&ed herein

    4#a

    S8+. 7. 8ffect of failure to comply with re2uirements.R)he failure of the petitioner to comply with any of the foregoingre2uirements regarding the payment of the doc!et and otherlawful fees, the deposit for costs, proof of service of thepetition, and the contents of and the documents which shouldaccompany the petition shall be sufficient ground for thedismissal thereof. 4n

    S8+. 6. Action on the petition.R)he +ourt of Appeals mayre2uire the respondent to file a comment on the petition, not amotion to dismiss, within ten 41B days from notice, or dismissthe petition if it finds the same to be patently without meritprosecuted manifestly for delay, or that the 2uestions raisedtherein are too unsubstantial to re2uire consideration. 4"a

    S8+. 9. +ontents of comment.R)he comment shall befiled within ten 41B days from notice in seven 47 legiblecopies and accompanied by clearly legible certified true copiesof such material portions of the record referred to thereintogether with other supporting papers. )he comment shall 4apoint out insufficiencies or inaccuracies in petitionerCsstatement of facts and issues and 4b state the reasons whythe petition should be denied or dismissed. A copy thereof shalbe served on the petitioner, and proof of such service shall befiled with the +ourt of Appeals. 49a

    S8+. 1B. ue course.Rf upon the filing of the commentor such other pleadings or documents as may be re2uired oallowed by the +ourt of Appeals or upon the e&piration of theperiod for the filing thereof, and on the basis of the petition o

    the records the +ourt of Appeals finds prima facie that thecourt or agency concerned has committed errors of fact or lawthat would warrant reversal or modification of the award

    judgment, final order or resolution sought to be reviewed, itmay give due course to the petition otherwise, it shall dismissthe same. )he findings of fact of the court or agencyconcerned, when supported by substantial evidence, shall bebinding on the +ourt of Appeals. 4n

    S8+. 11. )ransmittal of record.R

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    +ourt of Appeals may re2uire the court or agencyconcerned to transmit the original or a legible certifiedtrue copy of the entire record of the proceeding underreview. )he record to be transmitted may beabridged by agreement of all parties to theproceeding. )he +ourt of Appeals may re2uire orpermit subse2uent correction of or addition to therecord. 46a

    S8+. 1#. 8ffect of appealR)he appeal shall notstay the award, judgment, final order of resolutionsought to be reviewed unless the +ourt of Appealsshall direct otherwise upon such terms as it may deem

    just. 41Ba

    S8+. 1;. Submission for decision.Rf the petitionis given due course, the +ourt of Appeals may set thecase for oral argument or re2uire the parties to submitmemoranda within a period of fifteen 41- days fromnotice. )he case shall be deemed submitted fordecision upon the filing of the last pleading ormemorandum re2uired by these ules or by the +ourtof Appeals. 4n

    RULE 4A??8A* 0 +8)$A )$ )@8 SH?8M8 +$H)

    S8+)$( 1. iling of etition *it' "ure!eCourt.RA party desiring to appeal by certiorari from a

    judgment, final order or resolution of the +ourt ofAppeals, the Sandiganbayan, the +ourt of )a&Appeals, the egional )rial +ourt or other courtswhenever authori3ed by law, may file with theSupreme +ourt a verified petition for review oncertiorari. )he petition may include an application fora writ of preliminary injunction or other provisionalremedies and shall raise only 2uestions of law whichmust be distinctly set forth. )he petitioner may see!the same provisional remedies by verified motion filedin the same action or proceeding at any time during

    its pendency. as a!ended b$ A.#. 07-7-12-"C

    S8+. #. Ti!e for filing9 e8tension.R)hepetition shall be filed within fifteen 41- days fromnotice of the judgment or final order or resolutionappealed from, or of the denial of the petitionerCsmotion for new trial or reconsideration filed in duetime after notice of the judgment. $n motion dulyfiled and served, with full payment of the doc!et andother lawful fees and the deposit for costs before thee&piration of the reglementary period, the Supreme+ourt may for justifiable reasons grant an e&tension ofthirty 4;B days only within which to file the petition.41a, -a

    S8+. ;. oc!et and other lawful fees proof of

    service of petition.RHnless he has theretofore doneso, the petitioner shall pay the corresponding doc!etand other lawful fees to the cler! of court of theSupreme +ourt and deposit the amount of ?-BB.BB forcosts at the time of the filing of the petition. ?roof ofservice of a copy thereof on the lower court concernedand on the adverse party shall be submitted togetherwith the petition. 41a

    S8+. . +ontents of petitionR)he petition shallbe filed in eighteen 416 copies, with the original copy

    intended for the court being indicated as such by the petitionerand shall 4a state the full name of the appealing party as thepetitioner and the adverse party as respondent, withouimpleading the lower courts or judges thereof either aspetitioners or respondents 4b indicate the material datesshowing when notice of the judgment or final order oresolution subject thereof was received, when a motion for newtrial or reconsideration, if any, was filed and when notice of the

    denial thereof was received 4c set forth concisely a statementof the matters involved, and the reasons or arguments reliedon for the allowance of the petition 4d be accompanied by aclearly legible duplicate original, or a certified true copy of the

    judgment or final order or resolution certified by the cler! ocourt of the court a 2uo and the re2uisite number of plaincopies thereof, and such material portions of the record aswould support the petition and 4e contain a sworncertification against forum shopping as provided in the lastparagraph of section #, ule #. 4#a

    S8+. -. ismissal or denial of petition.R)he failure of thepetitioner to comply with any of the foregoing re2uirementsregarding the payment of the doc!et and other lawful feesdeposit for costs, proof of service of the petition, and thecontents of and the documents which should accompany the

    petition shall be sufficient ground for the dismissal thereof.

    )he Supreme +ourt may on its own initiative deny thepetition on the ground that the appeal is without merit, or isprosecuted manifestly for delay, or that the 2uestions raisedtherein are too unsubstantial to re2uire consideration. 4;a

    S8+. ". eview discretionary.RA review is not a matter oright, but of sound judicial discretion, and will be granted onlywhen there are special and important reasons therefor. )hefollowing, while neither controlling nor fully measuring thecourtCs discretion, indicate the character of the reasons whichwill be considered/

    4a

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    S8+. 9. ule applicable to both civil and criminalcases.R)he mode of appeal prescribed in this uleshall be applicable to both civil and criminal cases,e&cept in criminal cases where the penalty imposed isdeath, reclusion perpetua or life imprisonment. 4n

    V. VIOLATION OF WAGE

    ORDERS

    DOUBLE INDEMNIT( AND IMPRISONMENT

    RA /2/ ")e$e$ *+ RA

    Sect!o 2. Any person, corporation, trust, firm,partnership, association or entity which refuses orfails to pay any of the prescribed increases oradjustments in the wage rates made in accordancewith this Act shall be punished by a fine not lessthan )wentyfive thousand pesos 4?#-,BBB normore than $ne hundred thousand pesos 4?1BB,BBBor imprisonment of not less than two 4# years nor

    more than four 4 years, or both such fine andimprisonment at the discretion of the court/rovided, )hat any person convicted under this Actshall not be entitled to the benefits provided forunder the ?robation *aw.

    )he employer concerned shall be ordered to payan amount e2uivalent to $o@*#e t6e @7"!$*ee&!ts o%!' to t6e e)7#o+ees??rovided, thatpayment of indemnity shall not absolve the employerfrom the criminal liability imposableunder this Act.

    f the violation is committed by a corporation,trust or firm, partnership, association or any otherentity the penalty of imprisonment shall be imposedupon the entityTs responsible officers, including, butnot limited to, the president, vicepresident, chiefe&ecutive officer, general manager, managingdirector or partner.

    =ailure or refusal to pay mandatory wage increaseis considered a criminal offense under epublicAct (o. 6166, approved on Fune 11, 199". )heviolator may be sentenced to imprisonment ofnot less than two 4# years nor more than four)>* years. @e may also be punished by a fine of?#-,BBB to ?$$.$$$.$$. Moreover, he shall beordered to pay an amount e2uivalent to doublethe unpaid benefits owing to the employee.

    Pe"#t+ &or !o#"t!o o& t6e Prescr!*e$ Icre"seor A$K@st)et ! t6e W"'e R"te RA ?

    1. ?ayment of a fine of not less than ?#-,BBBnor more than ?1BB,BBB or

    #. mprisonment for not less than # years normore than years, the imprisonment beingnonprobationable. 4)he case should

    therefore be filed with the M)+ pursuant to 0? 1#9as amended by A 7"91 or

    ;. 0oth imprisonment and fine, at the discretion of the+ourt.

    . ?aying double the unpaid benefitsEamounts owingthe employees, provided that the ?ayment o

    ndemnity shall not absolve the employer fromcriminal liability imposable under the *abor +ode.

    Aside from the penal provision provided under A "7#7,there are provisions in the *abor +ode on the enforcemenand recovery of minimum wage provisions. )here aregeneral two provisions for the enforcement and recoveryof minimum wage provisions 5 Articles "28 and "2#emember that the minimum wage is fi&ed by a wageorder and there is a builtin mechanism in the *abor +odewhich provides the socalled enforcement tools for therecovery of wages, particularly the minimum wageprovisions.

    Article 1#6 5 enforcement machinery in aid of the visitoria

    power of the Secretary of *abor. )his is described asin2uisitorial.

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    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 suchother cases in Metro Manila, where the demand,e&clusive of the abovementioned items e&ceeds )wohundred thousand pesos 4?#BB,BBB.

    S8+. #. Section ;# of the same law is hereby

    amended 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 alloffenses 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 toproperty through criminal negligence, they shallhave e&clusive original jurisdiction thereof.

    S8+. ;. Section ;; of the same law is hereby amended toread as follows/

    S8+. ;;. Furisdiction of Metropolitan )rial +ourtsMunicipal )rial +ourts and Municipal +ircuit )rial +ourts in+ivil +ases. Metropolitan )rial +ourts, Municipal )ria

    +ourts, and Municipal +ircuit )rial +ourts shall e&ercise/

    41 8&clusive original jurisdiction over civil actionsand probate proceedings, testate and intestateincluding the grant of provisional remedies inproper cases, where the value of thepersonaproperty, 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 interestdamages of whatever !ind, attorneyTs feeslitigation e&penses, and costs, the amount owhich must be specifically alleged/ ?rovided, )hainterest, damages of whatever !ind, attorneyTs

    fees, litigation e&penses, and costs shall beincluded in the determination of the filing fees?rovided, further, )hat where there are severaclaims or causes of actions between the same ordifferent parties, embodied in the same complaintthe amount of the demand shall be the totality othe 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 oforcible 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 withoudeciding the issue of ownership, the issue oownership shall be resolved only to determine theissue of possession and

    4; 8&clusive original jurisdiction in all civiactions which involve title to, or possession of, reaproperty, 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 Manilawhere such assessed value does not e&ceed =iftythousand pesos 4?-B,BBB.BB e&clusive of interestdamages of whatever !ind, attorneyTs feeslitigation e&penses and costs/ ?rovided, )hat incases of land not declared for ta&ation purposesthe value of such property shall be determined by

    the 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, Municipa)rial +ourts, and Municipal +ircuit )rial +ourts may beassigned by the Supreme +ourt to hear and determinecadastral or land registration cases covering lots where

    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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    there is no controversy or opposition, orcontested lots where the value of which doesnot e&ceed $ne hundred thousand pesos4?1BB,BBB.BB, such value to be ascertained bythe affidavit of the claimant or by agreement ofthe respective claimants if there are more thanone, or from the corresponding ta& declarationof the real property. )heir decisions in these

    cases shall be appealable in the same manner asdecisions of the egional )rial +ourts.

    S8+. -. After five 4- years from the effectivity ofthis Act, the jurisdictional amounts mentioned inSec. 194;, 4, and 46 and Sec. ;;41 of 0atas?ambansa 0lg. 1#9 as amended by this Act, shall beadjusted to )wo hundred thousand pesos4?#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 issuedpursuant 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 industrial

    safety engineers made in the course of inspection. )heSecretary or his duly authori3ed representatives shall issuewrits of e&ecution to the appropriate authority for theenforcement of their orders, e&cept in cases where theemployer contests the findings of the labor employment andenforcement officer and raises issues[ supported bydocumentary proofs which were not considered in the courseof inspection. 4As amended by epublic Act (o. 77;B, Fune #

    199.

    K[ )he phrase after the word %issues', was an amendment byA 77;B to delete the clause %which cannot be resolvedwithout considering evidentiary matters that are not verifiablein the normal course of inspection.'L

    An order issued by the duly authori3ed representative of theSecretary of *abor and 8mployment under this Article may beappealed to the latter. n case said order involves a monetaryaward, an appeal by the employer may be perfected onlyupon the posting of a cash or surety bond issued by areputable bonding company duly accredited by the Secretaryof *abor and 8mployment in the amount e2uivalent to themonetary award in the order appealed from. 4As amended byepublic 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 owor!ers in the wor!place.

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    dition or matter which may be necessary todetermine violations or which may aid in theenforcement of the +ode and any labor law,wage order or regulations.

    *aw enforcement includes inspection ofestablishments, but every inspection should besupported by an authori3ation duly issued.

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    regardless of whether accompanied with a claim forreinstatement.

    4b )he +ommission shall have e&clusive appellatejurisdiction over all cases decided by *abor Arbiters.

    4c +ases arising from the interpretation or

    implementation of collective bargaining agreementsand those arising from the interpretation orenforcement of company personnel policies shall bedisposed of by the *abor Arbiter by referring thesame to the grievance machinery and voluntaryarbitration as may be provided in said agreements.)As amended by Section #! 'epublic Act o& 6$"5!arch 2"! "#8#*&

    )his Article enumerates the cases falling underFori4inal and e?clusiveFjurisdiction of labor arbiters.)his gives the impression that none but a laborarbiter can hear and decide the si& categories ofcases listed. 0ut this is not really so. Any or all ofthese cases can, by agreement of the parties, be

    presented to and decided with finality by avoluntary arbitrator or panel of voluntaryarbitrators. 4See Articles #"1 and #"#.

    )he law prefers or gives primacy to voluntaryarbitration 4Art. #11 instead of compulsoryarbitration. And this, in turn, is the reason thelaw 4Art. #"1, last paragraph, and Art. #17 KcLforbids a labor arbiter from entertaining adispute properly belonging to the jurisdiction ofa voluntary arbitrator.

    )he cases a labor arbiter can hear and decideare employmentrelated. $ne unifying elementruns through all the cases and disputesenumerated in Art. #17. )hat element is

    employment connection. 0ut, additionally, asregards money claims, the law applicable togrant the relief sought should li!ewise beconsidered. f the principal relief sought will beresolved by applying the *abor +ode or otherlabor relations statute or a collective bargainingagreement, then the case belongs to the laborarbiter. 0ut if the applicable law is the generalcivil law, the jurisdiction over the disputebelongs to the regular courts, such as theregional trial court. 4See San Miguel +orf. vs.(*+, >.. (o. 6B77, May ;1,1966.

    VI. WAGE ENFORCEMENT AND

    RECOVERY

    )

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    )he order of compliance can be 2uestionedwithin 1B calendar days thru an A??8A*with S$*8 4filing of bond

    )hen the employer will file a motion forreconsideration 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 wil l 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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    the period of such stoppage or wor! orsuspension of operation. L +$SS 8=8 )$A)+*8 #6" $( +$(S8IH8(+8 $=SHS?8(S$( $= $?8A)$(S

    4d t shall be @#"%&@#for any person or entity toobstruct, impede, delay or otherwise renderineffective the orders of the S$*8 or his duly

    authori3ed representatives issued pursuant tothe authority granted under this Article, andno inferior court or entity shall issuetemporary or permanent injunction orrestraining order or otherwise assume

    jurisdiction over any case involving theenforcement orders issued in accordance withthis Article.

    4e A+ 'o5er)et e)7#o+eefound guilty ofviolation of, or abuse of authority, under thisArticle shall, after appropriate administrativeinvestigation, be subject to s@))"r+$!s)!ss"#from the service.

    4f )he S$*8 may, by appropriate regulations,re2uire employers to !eep and maintain suche)7#o+)et recor$sas may be necessaryin aid of his visitorial and enforcement powersunder this +ode.

    S+$?8 $= )@8 :S)$A* ?$

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    important for us to !now the stepbystepprocedure in the conduct of inspection underArticle 1#6. And since what is involved would belabor standard provisions such as the minimumwages laws or rules 5 Is t6e e)7#o+er o*#!'e$to )"!t"! " 7"+ro## 8S. )he employer isobliged to maintain a payroll pursuant to thepower of the S$*8 under Article 1#6 4f to issue

    such rules and regulations pertinent thereto.Hnder implementing rules, see Section ", ule D,0oo! .

    Q? n the e&ercise of the visitorial power, can theS$*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 periodnot 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 nospecific 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 layoff

    wherein 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 employeesand 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%$ %(!(

    %

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    %=ollowing the rationale of St. Martin ruling,decisions of the Secretary of *abor, such as those inArticles 1#6, #;9, #-9, and #"; maybe elevatedinitially to the +A through certiorari.'

    ANTI0IN>UNCTION

    ART. 12:. isitorial and enforce!ent o*er. =

    4d t shall be unlawful for any person or entity toobstruct, impede, delay or otherwise renderineffective the orders of the Secretary of *abor and8mployment or his duly authori3ed representativesissued pursuant to the authority granted under thisArticle, and no inferior court or entity shall issuetemporary or permanent injunction or restrainingorder or otherwise assume jurisdiction over any caseinvolving the enforcement orders issued inaccordance with this Article.

    MAINTENANCE OF EMPLO(MENT RECORDS

    ART. 12:. isitorial and enforce!ent o*er. =

    4f )he Secretary of *abor and 8mployment may, byappropriate regulations, re2uire employers to !eepand maintain such employment records as may benecessary in aid of his visitorial and enforcementpowers under this +ode.

    SIMPLE MONE( CLAIMS AND >URISDICTION

    ART. 2-. Recover$ of *ages> si!le !one$clai!s and ot'er benefits. 0 Hpon complaint ofany interested party, the egional irector of theepartment of *abor and 8mployment or any of theduly authori3ed hearing officers of the epartment is

    empowered, through summary proceeding and afterdue notice, to hear and decide any matter involvingthe recovery of wages and other monetary claimsand benefits, including legal interest, owing to anemployee or person employed in domestic orhousehold service or househelper under this +ode,arising from employeremployee relations/ ?rovided,)hat such complaint does not include a claim forreinstatement/ ?rovided further, )hat the aggregatemoney claims of each employee or househelper doesnot e&ceed =ive thousand pesos 4?-,BBB.BB. )heegional irector or hearing officer shall decide orresolve the complaint within thirty 4;B calendardays from the date of the filing of the same. Anysum thus recovered on behalf of any employee or

    househelper pursuant to this Article shall be held in aspecial deposit account by, and shall be paid onorder of, the Secretary of *abor and 8mployment orthe egional irector directly to the employee orhousehelper concerned. Any such sum not paid tothe employee or househelper because he cannot belocated after diligent and reasonable effort to locatehim within a period of three 4; years, shall be heldas a special fund of the epartment of *abor and8mployment to be used e&clusively for theamelioration and benefit of wor!ers.

    Any decision or resolution of the egional irector or hearingofficer pursuant to this provision may be appealed on thesame grounds provided in Article ##; of this +ode, within five4- calendar days from receipt of a copy of said decision orresolution, to the (ational *abor elations +ommission whichshall resolve the appeal within ten 41B calendar days fromthe submission of the last pleading re2uired or allowed undeits rules.

    )he Secretary of *abor and 8mployment or his dulyauthori3ed representative may supervise the payment ounpaid wages and other monetary claims and benefitsincluding legal interest, found owing to a