CHAPTER 1- FUNDAMENTAL PRINCIPLES

LABOR STANDARDS

Q: What is labor?

A: It is the exertion by human beings of physical or mental efforts or both. towards the production of goods
and services? (MenCfoza, 2001)

Q: What is labor law?

A: The law governing the rights and duties of the employer and employees with respect to 1. The terms and
conditions of employment and 2. Labor disputes arising from collective bargaining (CB) respecting such
terms and conditions.

Q: What is the purpose of labor legislation?

A: Labor legislation is an exercise of police power. The purpose of labor legislation is to regulate the
relations between employers (Ers) and employees (Ees) respecting the terms and conditions of employment,
either by providing for certain standards or for a legal framework within which better terms and conditions
of work could be negotiated through CB. It is intended to correct the injustices inherent in the Er-Ee
relationship. (2006 BarQuestion)

Q: What are the classifications of labor law?

A:
1. Labor standards - The minimum terms and conditions of employment prescribed by existing laws, rules,
and regulations relating to wages, hours of work, cost-of-living allowance, and other monetary and welfare
benefits. (Batong Buhay Gold Mines, Inc. v. Dela Serna, G.R. No. 86963, August 6,1999) e.g. a" month pay.
2. Labor relations - Defines and regulates the status, rights and duties, and the institutional mechanisms, that
govern the individual and collective interactions of Ers, Ees, or their representatives. It is concerned with the
stabilization of relations of Er and Ees and seeks to fOt8-?taU .~n0 ~~::\,~t:h8 (jiff~1renc:::s between them by
the encouragement of collective bargaining and the settlement of labor disputes through conciliation, mediation,
and arbitration. (Azucena, 2007)
e.g. Additional allowance pursuant to CBA 3. Social legislation - It includes laws that provide particular kinds
of protection or benefits to society or segments thereof in furtherance' of social justice. (Azucena, 2007)
e.g. GSIS Law, SSS Law, Philhealth benefits
Q: Is there any distinction between labor legislation and social legislation? Explain.
A: Labor legislation is sometimes distinguished from social legislation by the former referring to labor statutes,
like Labor Relations Law and Labor Standards, and the latter to Social Security Laws. Labor legislation focuses
on the rights of the worker in the workplace.
Social legislation is a broad term and may include not only laws that give social security protection, but also
those that help the worker secure housing and basic necessities. The Comprehensive Agrarian Reform Law
could also be considered social legislation. All labor laws are social legislation, but not all social legislation is
labor law. (1994 Bar Question)
Q: What are other related laws to labor?
A:
1. Civil Code
a. Art. 1700 - The relations between capital and labor are not merely contractual. They are so impressed with
public interest that labor contracts must yield to the common good.· Therefore, such contracts are subject to the
special laws on labor unions, collective bargaining, strikes, lockouts, closed shop, wages, working conditions,
hours of labor, and similar subjects.
b. Art. 1701 - Neither capital nor labor shall act oppressively against the other, or impair the interest or
convenience of the public.
c. Art. 1702 - In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the
safety and decent living for the laborer.
d. Art. 1703 - No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall
be valid.

2. Revised Penal Code

Art. 289 - Formation, maintenance and prohibition of combination of capital or labor through violence
or .threats. - Any person who, for the purpose of organizing, maintaining or preventing coalitions or capital or
labor, strike of laborers or lock-out of employees, shall employ violence or threats in such a degree as to compel
or force the laborers or employers in the free and legal exercise of their industry or work, if the act shall not
constitute a more serious offense in accordance with the provisions of the RPC.

3. Special Laws

 a. GSIS Law

 b. 13th Month Pay Law
 c. Retirement Pay Law 
d. SSS Law
 e. Paternity Leave Act 
f. Anti - Child Labor Act 
g. Anti-Sexual Harassment Act
 h. Magna Carta for Public Health Workers 
i. Solo Parents Welfare Act of 2000 
j. National Health Insurance Act as amended by R.A. 9241 
k. Migrant Workers and Overseas Filipinos Act of 1995 as amended by RA 10022
L PERA Act of 2008 
m. Home Development Mutual Fund Law of 2009 
n. The Magna Carta of Women 
o. Comprehensive Agrarian Reform Law as amended by R.A. 9700

Q: What are the basic rights of workers guaranteed by the Constitution?

A:
1. Security of tenure 2. Receive a living wage 3. Humane working conditions 4. Share in the fruits of production
5. Organize themselves 6. Conduct collective bargaining or negotiation with management 7. Engage in peaceful
concerted activities including strike 8. Participate in policy and decision-making processes

Q: Who is an employer (Er)?

A:
1. One who employs the services of others 2. One for whom employees work and who pays their wages and
salaries
Q: Who is an employee (Ee)?
A:
1. A person working for salary or wages 2. Any person in the service of another under a contract for hire,
express or implied, oral or written

ART: 4. CONSTRUCTION IN FAVOR OF . - _LABOR . .

Q: How should doubts in the implementation and interpretation of the Labor Code (LC) and its Implementing
Rules and Regulations(IRR)be resolved?

A: They should be resolved in favor of labor

.
Q: What is the concept of the liberal approach in interpreting the LCandits IRR?

A: The workers' welfare should be the paramount consideration in interpreting the LC and its IRR. This is
rooted in the constitutional mandate to afford full protection to labor. (PLOT v. NLRC, G.R. No. 111933, July
23, 1997). It underscores the policy of social justice to accommodate the interests of the working class on the
humane justification that those who have less in life shaH have more in law. (PAL v. Santos, G.R. No. 77875,
Feb. 4, 1993). (2006 Bar Question)

Q: Art. 4 of the LC provides that in case of doubt In the implementation and interpretation of the provisions of
the LC and its IRR, the doubt shall be resolved in favor of labor. Art. 1702 of the Civil Code also provides that
in case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent
living of the laborer.
Mica-MaraCompany assails the validity of these statutes on the ground that they violate its constitutional right
to equal protection of the laws. Is the contention of MicaMaraCompanytenable? Discuss fully.

A: No, the Constitution provides that the State shall afford full protection to labor. Furthermore, the State
affirms labor as a primary economic force. It shall protect the rights of workers and promote their welfare.
(1998BarQuestion)