1LABOR STANDARDS LAW 200M Third Term, 2013-2014 Atty. Domingo T. Añonuevo DLSU College of Law
[email protected] +639178129948 COURSE DESCRIPTION: This course is about the fundamental principles of labor law, and the law on recruitment and placement, labor standards, and termination of employment. LEARNING OUTCOMES (LO): On completion of the course, the student is expected to be able to do the following: 1. State the legal bases of labor law and tell where it may be found; recognize the basic rights of workers and employers; 2. Tell when an employer-employee relationship exists; differentiate job contracting from labor-only contracting; 3. Distinguish labor disputes from other disputes; 4. Tell when there is illegal recruitment; discuss the rights of apprentices, learners and the disabled; 5. Restate and apply the minimum standards on hours of work, rest days, holidays, various leaves, minimum wages, payment and protection of wages, 13 th month pay, and the working conditions for women, minors, house helps and other special groups of workers; 6. Discuss the right to security of tenure; explain when an employee may quit his/her employment; identify the just and business-related causes for termination of employment; describe the procedural requirements of termination of employment; and identify the relief’s and remedies in cases of illegal dismissals; 2 7. 7. 7. 7. Discuss the coverage of and the benefits under the various social legislations. 8. 8. 8. 8. Teach workers the basic labor standards. REQUIREMENTS AND ASSESSMENTS: The student will be assessed during the term by the following: Class participation 30.00% Attendance/recitation 15.00% Reports 15.00% Quizzes 20.00% Workers’ seminar 20.00% Final examination 30.00% Students should submit to DTA class cards with 1x1 photos and email address not later than the 2 nd class day. Laptops and tablets may be used to take down notes but should be turned off/closed when owner is called to recite. All notes and books should be closed also during recitation. Consultation is by appointment or through email. No excuse will be accepted for failing to take a quiz or submitting a report or paper. Every student must present a report to the class on any of the topics identified in the course outline. Every gang of 2 students should be able to conduct a 2-hour seminar- presentation to a group of employees on any of the above topics on or before the last week of classes. LEARNING PLAN: LEARNING OUTCOME: Student should be TOPIC DAYS LEARNING ACTIVITIES 3 able to State the legal bases of labor law and tell where it may be found; recognize the basic rights of workers and employers; Part I: Introduction to Labor Law Sections 1 - 4. 2.5 * Lecture * Recitation * Lecture * Recitation * Report on the Tonko cases Tell when an employer- employee relationship exists; differentiate job contracting from labor-only contracting; distinguish labor disputes from other disputes; Part I: Introduction to Labor Law Sections 5 & 6 2 Quiz on Part I * Lecture * Recitation * Report on training and employment of disabled persons (handicapped workers) Tell when there is illegal recruitment; Discuss when an alien may be employed; discuss the rights of apprentices, learners and the disabled; Part II: Recruitment & Placement of Workers/ Alien Employment Part III: Human Resources Development 2 Quiz on Parts II & III * Lecture * Recitation * Report on the Kasambahay law Restate and apply the minimum standards on hours of work, rest days, holidays, various leaves, minimum wages, payment and protection of wages, 13 th month pay, and the working conditions for women, minors, house helps and other special groups of workers; Part IV: Labor Standards 3 Quiz on Part IV 4 * Lecture * Recitation * Report on FASAP v. PAL, G.R. No. 178083 Discuss the right to security of tenure; explain when an employee may terminate his/her employment; identify the just and business- related causes for termination of employment; describe the procedural requirements of termination of employment; and identify the reliefs and remedies in cases of illegal dismissals; Part V: Termination of Employment 3 Quiz on Part V REFERENCES: SALVADOR A. POQUIZ, LABOR STANDARDS LAW WITH NOTES AND COMMENTS, 2012 EDITION; C.A. AZUCENA, JR., THE LABOR CODE WITH COMMENTS AND CASES, VOL. I, 2010 EDITION; Nota bene: Most of the case titles below are hyperlinked to websites containing the cases' full texts. 5 Part I: INTRODUCTION TO LABOR LAW 1 Labor law, defined 2 Labor law, classified 3 Legal bases of labor law 3.1 Police power of the State Philippine Association of Service Exporters, Inc. v. Drilon, 163 SCRA 386 (1988); St. Luke’s Medical Center Employee’s Association-AFW v. NLRC, 517 SCRA 677 (2007); Magana v. Medicard Phil., Inc., 638 SCRA 606 (2010) 3.2 Specific provisions of the 1987 Constitution 3.2.1 Social Justice 1987 Constitution, Art. II, Secs. 5 & 10; Art. XIII, Secs. 1 & 2; 3.2.1.1 Defined Calalang v. Williams, 70 Phil. 726 (1940); Fr. Joaquin Bernas, The 1987 Philippine Constitution: A Reviewer-Primer, 1987 ed., p. 23. 3.2.1.1 Applied HFS Phil., Inc. v. Pilar, G.R. No. 168716, April 16, 2009; PLDT v. NLRC, 164 SCRA (1988); Toyota Motor Phil. Corp. Workers Association v. NLRC, G.R. No. 158786, October 19, 2007; Paloma v. PAL, G.R. No. 163607, July 14, 2008; 3.2.1.3 Protection of labor CONST., Art. II, Sec. 18; Art XIII, Sec. 3.; Cebu Royal Plant v. Hon Deputy Minister of Labor, 153 SCRA 38 (1987); Gregorio Araneta University Foundation v. NLRC, 155 SCRA 301(1987); Quitoriano v. Jebsens Maritime, Inc., G.R. No. 179868, January 21, 2010. 3.2.1.3 Right to due process and right to labor as property CONST., Art. IIL, Sec. 1; Callanta v. Carnation Philippines, Inc., 145 SCRA 268 (1986); Phil. Movie Pictures Workers' Asso. v. Premiere Productions, Inc., 92 Phil. 843 (1953). 6 3.2.3 Gender equality and protection of women CONST., Art. II, Sec. 14; Art. XIII, Sec. 14 Suggested reading: Emily Salcedo, “Romantic Paternalism in Philippine Labor Law – Revisiting the Tradition, Realizing its Folly, and Proposing Reconstruction in the Light of American Experience”, DLSU Business & Economics Review, 21.1 (2011), pp. 77-96. 3.2.4 Right of government employees to organize CONST., Art. IX-B, Sec. 2(5); Art. III, Sec. 8 3.2.5 Protection to rights of employer CONST., Art. II, Sec. 20 and Art. XIII, Sec. 3, par. 4; 3.2.6.1 Definition & Scope of Management Prerogatives (MP) Chu v. NLRC, 232 SCRA 764 (1994); San Miguel Brewery Sales Force Union (PTGWO) v. Ople, 170 SCRA 25 (1989); Philippine Airlines, Inc. v. NLRC, 225 SCRA 301 (1993); Royal Plant Workers Union v. Coca-Cola Bottlers Philippines, Inc. – Cebu Plant, G.R. No. 198783; April 15, 2013 3.2.6.2 Limits of MP SHS Perforated Materials, Inc. v. Diaz, 633 SCRA 258 (2010); Supreme Steel Corp. v. Nagkakaisang Manggagawa Ng Supreme Independent Union (Nms-Ind- Apl), G.R. No. 185556, March 28, 2011; PLDT v. Paguio, G.R. No. 152689, October 12, 2005; Businessday Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993) 3.3 Civil Code CIVIL CODE, Arts. 1700 & 1701; Brew Master International v. National Federation of Labor Unions, 271 SCRA 275 (1997); PNCC Skyway Traffic Management and Security Division Workers Organization (PSTMSDWO) v. PNCC Skyway Corp., 613 SCRA 28 (2010) 4 Sources of labor law 7 4.1 The Labor Code and its implementing rules 4.1.1 Brief history Poquiz, pp. 3-4, 37-38; Azucena, pp. 15-17 4.1.2 Name of Decree LABOR CODE, Art. 1 4.1.3 Date of Effectivity Id., Art. 2 4.1.4 Declaration of Basic Policy Id., Art. 3; CONST. (1973), Art. II, Sec. 9; CONST., Art. XIII, Sec. 3 4.1.5 Construction in favor of Labor LABOR CODE, Art. 4; CIVIL CODE, Art. 1702 Reyes v. CA, 409 SCRA 267 (2003); J.K. Mercado & Sons Agricultural Enterprises, Inc. v. Hon. Patricia Sto. Tomas, G.R. No. 158084, August 29, 2008; PNCC Skyway Traffic Management and Security Division Workers Organization (PSTMSDWO) v. PNCC Skyway Corp., 613 SCRA 28 (2010) 4.1.6 Rule-making power, limitations LABOR CODE, Art. 5; Insular Bank of Asia and America Employees' Union v. inciong, G.R. No. L- 52415, October 23, 1984 4.1.7 Applicability LABOR CODE, Art. 6 4.1.7.1 Overseas Workers Sim v. NLRC, G.R. No. 157376, October 2, 2007; Santiago v. CF Sharp Crew Management, G.R. No. 162419, July 10, 2007 4.1.7.2 Government employees CONST., Art. IX-B, Sec. 2(1); LABOR CODE, Art. 276; NASECO v. NLRC, G.R. No. L-70295, November 29, 1988; PNOC-Energy Development Corp. v. NLRC, 201 SCRA 487 (1991) Liban v. Gordon, G.R. No. 175352, January 8 18, 2011, July 15, 2009 4.1.7.3 Employees of International Organizations and Specialized Agencies International Catholic Migration Commission v. Calleja, 190 SCRA 130 (1990) 4.1.8 Enforcement and Sanctions LABOR CODE, Art. 128; D.O. No. 131-13 & D.O. No. 57-04; LABOR CODE, Arts.129 & 223 (a) (2), (3), (4), & (6), 294, 295, 296, 297, & 298; CONST., Art. III, Secs. 11 & 16 4.2 Decisions of the courts and quasi-judicial bodies Callanta v. Carnation Phil., Inc., 145 SCRA 268 (1986) 4.3 Labor Contracts CIVIL CODE, Arts. 1305 & 1306; Supreme Steel Corp. v. Nagkakaisang Manggagawa Ng Supreme Independent Union (Nms-Ind-Apl), G.R. No. 185556, March 28, 2011; Mariveles Shipyard Corp. v. CA, G.R. No. 144134, November 11, 2003 4.4 Company Practice Central Azucarera De Tarlac v. Central Azucarera De Tarlac Labor Union-NLU, G.R. No. 188949, July 26, 2010; Metropolitan Bank and Trust Co. v. NLRC, G.R. No. 152928, June 18,2009; Pag-asa Steel Works, Inc. v. CA, 486 SCRA 475 (2006) 4.5 Company Policy Kimberly-Clark Phil., Inc. v. Dimayuga, G.R. No. 177705, September 18, 2009; China Banking Corp. v. Borromeo, G.R. No. 148415, July 14, 2008; GTE Directories Corp. v. Sanchez, 197 SCRA 452, 466 (1991) 5 Work Relationship 5.1 Definition: Employer & Employee LABOR CODE, Arts. 97 (a), (b), (c); 167 (f), (g) & (h); 212 (e) & (f) A.C. Ransom Labor Union v. NLRC, 142 9 SCRA 269 (1988); Orlando Farms Growers Association v. NLRC, 299 SCRA 364, November 25, 1998; Far Eastern University v. CIR, 5 SCRA 1080 (1962) 5.2 Employer-Employee Relationship: Factors/Tests Sonza v. ABS-CBN Broadcasting Corp., 431 SCRA 381(1904); Semblante v. CA, G.R. No. 196426, August 15, 2011; Sy v. CA, G.R. No. 142293, Feb. 27, 2003; Perpetual Help Credit v. Faburada, G.R. No. 121948, October 8, 2001; Jardin v. NLRC, 326 SCRA 299 (2000); Corporal Sr. v. NLRC, 341 SCRA 658 (2000);; Ruga v. NLRC, 181 SCRA 266 (1990); Mendiola v. CA, G.R. No. 159333, July 31, 2006; Tongko v. The Manufacturer’s Life Insurance Co. (Phils.) Inc., G.R. No. 167622, November 7, 2008, June 29, 2010, & January 25, 2011; Locsin v. PLDT, G.R. 185251, October 2, 2009; Francisco v. NLRC, G.R. No. 170087, August 31, 2006; Teng v. Pahagac, 635 SCRA 172(2010) 5.3 Independent Contractor and Labor-only Contractor LABOR CODE, Arts. 106, 107, 108 &109; D.O. No. 18-A (2011) Phil. Bank Communications v. NLRC, 146 SCRA 347 (1986); San Miguel Corp. v. Maerc Integrated Services, Inc.; G.R. No. 144672, July 10, 2003; Wack Wack Golf and Country Club v. NLRC, 456 SCRA 280 (2005); Aliviado v. Proctor and Gamble Phils., Inc., G.R. No. 160506, March 9, 2010; Spic n’ Span Services Corp. v. Gloria Paje, et al., G.R. No. 174084, August 25, 2010; 5.4 Liability of Indirect Employer GSIS v. NLRC, 635 SCRA 251 (2010); Mariveles Shipyard Corp. v. CA, 415 SCRA 573 (2003) 6 Labor disputes Labor Code (LC), Art. 218 (l); Feati University v. Bautista, 18 SCRA 1190 (1966); San Miguel Corp. Employees Union v. Bersamira, G.R. No. 87700, June 13, 1990; Halagueña v. PAL, G.R. No. 10 172013, October 2, 2009; Nestle Phils., Inc. v. NLRC, G.R. No. 85197, March 18, 1991; Jaguar Security and Investigation Agency v. Sales, G.R. No. 162420, April 16, 2008; Part II: RECRUITMENT AND PLACEMENT OF WORKERS/ALIEN EMPLOYMENT 7 Recruitment and Placement of Workers Suggested reading: Julyn S. Ambito and Melissa Suzette L. Banzon, Review of Philippine Migration Laws and Regulations: Gains, Gaps, Prospects. 7.1 Definition LABOR CODE, Art. 13(b); People v. Panis, 142 SCRA 667 [1986) 7.2 Employment Policies 7.3 Employment Agencies/Entities 7.3.1 Allowed entities LABOR CODE, Arts. 16, 18, 25 & 12(f); Omnibus Rules, Book I, Rules III, IV, VII Sec 1. 7.3.2 Private employment agency LABOR CODE, Art. 13(c) & (d) 7.3.3 Private recruitment entity LABOR CODE, Art. 13(e) & (f) 7.3.4 Public employment offices LABOR CODE, Art. 12(f) & 14(a); E.O. No. 247 (1987), Sec. 3 (f), 7.3.5 Prohibited entity LABOR CODE, Arts. 18, 16, 25 & 26; 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land- based Overseas Workers (2002 POEA Rules), Part II, Rule 1, Sec. 2; 2003 POEA Rules,and Regulations Governing the Recruitment and Employment of Seafarers (2003 POEA Rules), Part II, Rule I, Sec. 2 7.4 Government techniques of regulation - private recruitment 11 7.4.1 Licensing LABOR CODE, Arts. 27, 28, 29, 30 & 31; 2002 POEA Rules, Part II, Rule II, Secs. 1, 4, 6 & 7; 2003 POEA Rules, and Regulations Governing the Recruitment and Employment of Seafarers (2003 POEA Rules), Part II, Rule I (a) & (b); Rule II, Secs. 1, 4, 6 & 7 7.4.2 Workers’ Fee LABOR CODE, Art. 32 7.4.3 Reports/employment information LABOR CODE, Art. 33 7.5 Prohibited practices LABOR CODE, Art. 34 7.6 Illegal recruitment LABOR CODE, Art. 38(a) & (b); R.A. No. 8042, as amended, Sec. 6; Boneng v. People; G.R. No. 133563, March 4, 1999; People v. Gallo, G.R. No. 185277, March 18, 2010; People v. Hu, G.R. No. 182232, October 6, 2008; People v. Chua, G.R. No. 184058; March 10, 2010; People v. Laogo, G.R. No. 176264, January 10, 2011; Salazar v. Achacoso, 183 SCRA 145 (1990) 7.7 Enforcement & sanctions LABOR CODE, Arts. 35, 36, 37, 38 & 39; R.A. No. 8042, Secs. 6, 7, & 10; Serrano v. Gallant Maritime Services, Inc., G.R. No. 16714, March 24, 2009; Eastern Assurance and Surety Corp. v. Sec. of Labor, 181 SCRA 110 (1990); Sto. Tomas v. Salac, G.R. No. 152642, December 5, 2012; 7.7.1 Joint and several liability of private employment agency/ manning agent and employer R.A. No. 8042, as amended, Sec. 10, pars. 2 & 3; 2002 POEA Rules, Part II, Rule II, Sec. 1(f)(3); 2003 POEA Rules, Part II, Rule II, Sec. 1(e)(8); Datuman v. First Cosmopolitan Manpower and Promotion Services, Inc., G.R. No. 156029, November 14, 2008 12 7.8 Jurisdiction 7.8.1 Regional Trial Court, for criminal action for illegal recruitment R.A. No. 8042, Sec. 9 7.8.2 NLRC, for money claims arising from employer- employee relations R.A. No. 8042, Sec. 10; Serrano v. Gallant Maritime Services, Inc., G.R. No. 16714, March 24, 2009. 7.8.3 POEA, for administrative and disciplinary actions Omnibus Rules Implementing R.A. No. 8042, Sec. 28 8 Alien employment regulation CONST., Art. XII, Sec. 12; Anti-Dummy Law (Com. Act No. 108), Sec. 2-A, as amended, in rel. to CONST., Art. XVI, Sec. 11(1), Art. XVI, Sec. 11(2), Art. XII, Sec. 11; INVESTMENT CODE, Art. 76, par. 2; LABOR CODE, Arts. 40, 41 & 42; Omnibus Rules, Book I, Rule XIV; D.O. No. 97-09 (Revised Rules for Issuance of Employment Permits to Foreign Nationals) 8.1 Coverage D.O. 97-09 , Secs. 1 & 2; Almodiel v. NLRC, 223 SCRA 341 (1993) 8.2 Conditions for grant of permit LABOR CODE, Art. 40; D.O. 97-09 , Sec. 10; WPP Marketing Communications, Inc. v. Galera, 616 SCRA 422 (2010); General Milling Corp. v. Torres, 196 SCRA 215 (1991) Part III HUMAN RESOURCES DEVELOPMENT 9 Development of human resources LABOR CODE, Arts. 57-81; Technical Education and Skills Development Act (TESDA) of 1994 (R.A. No. 7796); Dual Training Systems Act of 1994 (R.A. No. 7686); Magna Carta for Disabled Persons of 1992 (R.A. No. 7277) 9.1 Policy, goals & objectives R.A. No. 7796, Secs. 2 & 3 10 Training and employment of apprentices 13 10.1 Apprentices, defined LABOR CODE, Art. 58 ; R.A. No. 7796, Sec. 4 (j), (k), (l), & (m). See also: Child Abuse Law of 1992 (R.A. No. 7610), as amended by R.A. No. 7658, re: employment of children below 15 years 10.2 When apprentices may be employed Century Canning Corp. v. CA, 530 SCRA 501(2007); Nitto Enterprises v. NLRC, 248 SCRA 654 (1995); Atlanta Industries v. Sebolino, G.R. Mo. 187320, January 26, 2011 10.3 Conditions of employment LABOR CODE, Arts. 61, 72 &124, last par. 10.4 Enforcement LABOR CODE, Arts. 65, 66, & 67 11 Training and employment of learners 11.1 Learners, defined LABOR CODE, Art. 73; R.A. No. 7796, Sec. 4(n) 11.2 When learners may be employed LABOR CODE, Art. 74; R.A. No. 7796, Sec. 4(n) 11.3 Conditions of employment LABOR CODE, Arts. 75, 76 & 124, last par. 12 Training and employment of disabled persons (handicapped workers) LABOR CODE, Arts. 78, 79, 80, & 81; Magna Carta for Disabled Persons of 1992 (R.A. No. 7277) 12.1 Definition R.A. No. 7277, Sec. 4(a), (b), (c), & (d) 12.2 Policy declaration R.A. No. 7277, Sec. 2 12.3 Coverage R.A. No. 7277, Sec. 3 12.4 Rights and privileges R.A. No. 7277, Secs. 5, & 6 Bernardo v. NLRC, 310 SCRA 186 (1999) Part IV LABOR STANDARDS 13 HOURS OF WORK LABOR CODE, Arts. 82, 83, 84, 85, 86, 87, 88, 89 & 90; Omnibus Rules, Book III, Rules I, IA, & II 13.1 Regulation; rationale Manila Terminal Co. Inc., v. CIR, 91 Phil. 625, 636 (1952) 14 13.2 Coverage: all employees, in general LABOR CODE, Arts. 82 & 276; Omnibus Rules, Book III, Rule I, Secs. 1 & 2 13.3 Exemptions 13.3.1 Government employees CONST., Art. IX-B, Sec. 2(1) 13.3.2 Managerial employees Omnibus Rules, Book III, Rule I, Sec. 2(b) & (c); San Miguel Corp. v. Layoc, Jr., 537 SCRA 77 (2007) 13.3.2.1 Rationale NAWASA v. NAWASA Consolidated Unions, 11 SCRA 766, 776 to 779 (1964) 13.3.2.2 Supervisors are managerial employees National Sugar Refineries Corp. v. NLRC, G.R. No. 101761, March 24, 1993. 13.3.3 Field personnel Omnibus Rules, Book III, Rule I, Sec. 2 (f); Far East Agricultural Supply, Inc. v. Lebatique, 515 SCRA 491(2007); Mercidar Fishing Corp. v. NLRC, 297 SCRA 440 (1998); Union of Filipro Employees v. Vivar, 205 SCRA 200 (1992) 13.3.4 Dependent family members 13.3.5 Domestic helpers LABOR CODE, Arts. 141 &145; Omnibus Rules, Book III, Rule I, Sec. 2 (d) 13.3.6 Persons in the personal service of another Omnibus Rules, Book III, Rule I, Sec. 2 (d) 13.3.7 Piece workers Omnibus Rules, Book III, Rule VII, Sec. 8 (e); Labor Congress of the Philippines v. NLRC, 290 SCRA 509 (1998) 13.4 Normal hours of work LABOR CODE, Art. 83 13.4.1 Change in work hours 15 13.4.1.1 A management prerogative Union Carbide Labor Union v. Union Carbide Phils., Inc., 215 SCRA 554 (1992) 13.4.1.2 Compressed work week Department Order (D.O.) No. 21, Series of 1990, Guidelines on the Implementation of Compressed Workweek; Department Advisory No. 02-04; Department Advisory No. 02-09: Bisig Manggagawa sa Tryco v. NLRC, G.R. No 1513098, October 15, 2008 13.5 Compensable hours of work - in general 13.5.1 On duty LABOR CODE, Art. 84(a); Omnibus Rules, Book III, Rule I, Sec. 3 (a) & Sec. 4 (a) 13.5.2 At work LABOR CODE, Art. 84 (b); Omnibus Rules, Book III, Rule I, Sec. 3 (b) 13.6 Specific rules 13.6.1 Rest period 13.6.1.1 Short duration or “coffee break” LABOR CODE, Art. 84, 2nd par.; Omnibus Rules, Book III, Rule I, Sec. 7, 2nd par. 13.6.1.2 More than 20 minutes Omnibus Rules, Book III, Rule I, Sec. 4 (b) 13.6.2 Meal period 13.6.2.1 Regular meal period (one hour) LABOR CODE, Art. 85; Omnibus Rules, Book III, Rule I, Sec. 7, 1st par.; Philippine Airlines v. NLRC, 302 SCRA 582 (1999) 13.6.2.2 Shorter meal period (less than one hour but not less than 20 min.) Omnibus Rules, Book III, Rule I, Sec. 7, 1st par. 13.6.3 Waiting time Omnibus Rules, Book III, Rule I, Sec. 5 (a); Arica v. NLRC, 170 SCRA 776 (89) 16 13.6.4 On call Omnibus Rules, Book III, Rule I, Sec. 5 (b) 13.6.5 Inactive due to work interruptions Omnibus Rules, Book III, Rule I, Sec. 4 (d); University of Pangasinan Faculty Union v. University of Pangasinan, G.R. No. L- 63122, February 20, 1984 13.6.6 Work after normal hours Omnibus Rules, Book III, Rule I, Sec. 4 (c) 13.6.7 Lectures, meeting, trainings Omnibus Rules, Book III, Rule I, Sec. 6 13.6.8 Travel time Rada v. NLRC, 205 SCRA 69 (1992) 13.6.9 "No Work, No Pay" principle University of Pangasinan Faculty Union v. NLRC, 127 SCRA 691 (1984); Prieto v. NLRC, 226 SCRA 232 (1993) 13.7 Overtime work/pay LABOR CODE, Arts. 87, 88, 89 & 90; Omnibus Rules, Book III, Rule I, Secs. 8, 9, & 10 13.7.1 In general LABOR CODE, Art. 87 13.7.1.1 Rationale for overtime pay PNB v. Phil. National Bank Employees Association, 115 SCRA 507 (1982) 13.7.1.2 Overtime work: voluntary/ consensual LABOR CODE, Art. 87 Interphil Laboratories Employees' Union- FFW v. Interphil Laboratories, Inc., G.R. No. 142824, December 19, 2001. 13.7.1.3 Overtime instruction, not required William Lines, Inc. v. Lopez, 96 SCRA 593 (1980) 13.7.1.4 But evidence of performance of overtime work required Cagampan v. NLRC, G.R. No. 85122-24, March 22, 1991 13.7.1.5 No offsetting of overtime with under time LABOR CODE, Art. 88 17 13.7.2 Emergency or compulsory overtime work LABOR CODE, Art. 89; 13.7.3 Computation LABOR CODE, Art. 90 13.8Night work LABOR CODE, Art. 86; Omnibus Rules, Book III, Rule II, Secs. 1, 2, 3, 4, 5, & 6 14 WEEKLY REST PERIODS LABOR CODE, Arts. 91, 92 & 93; Omnibus Rules, Omnibus Rules, Book III, Rule III, Secs. 1, 2, 3, 4, 5, 6, 7, 8, & 9 14.1 Coverage LABOR CODE, Arts. 82 & 91 14.2 Determination, compulsory work; compensation LABOR CODE, Arts. 91, 92 & 93; 15 HOLIDAYS LABOR CODE, Art. 94; R.A. No. 9849; Omnibus Rules, Book III, Rule IV 15.1 Coverage LABOR CODE, Art. 94 (a); Mantrade/ FMMC Division Employees and Workers Union v. Bacungan, 144 SCRA 510 (1986) 15.1.1 Exception: retail establishment LABOR CODE, Art. 94 (a); Rules Implementing R.A. No. 6727, par. f 15.1.2 Exception: service establishment LABOR CODE, Art. 94 (a); Rules Implementing R.A. No. 6727, par. g 15.2 Holiday pay LABOR CODE, Art. 94(c); Asian Transmission Corp. v. CA, G.R. No. 144664, May 15, 2004 15.2.1 Faculty in private school Omnibus Rules, Book III, Rule IV, Sec. 8 (a); Jose Rizal College v. NLRC, 156 SCRA 27 (1987) 15.2.2 Divisor as factor Trans-Asia Phil. Employees Association v. NLRC, 320 SCRA 347 (1999); 15.2.3 Sunday Wellington Investment Inc. v. Trajano, 245 SCRA 561 (1995) 15.2.4 Muslim holiday SMC v. CA, 375 SCRA 311 (2002) 18 16 SERVICE INCENTIVE LEAVE, PATERNITY LEAVE AND PARENTAL LEAVE Art. 95; Omnibus Rules, Book III, Rule V; Paternity Leave Act of 1996 (RA 8187); Solo Parents’ Welfare Act of 2000 (RA 8972) 16.1 Service incentive leave coverage LABOR CODE, Art. 95 (a) (b); Omnibus Rules, Book III, Rule V; Makati Haberdashery Inc. v. NLRC, 179 SCRA 449 (1989); Labor Congress v. NLRC, 290 SCRA 509 (1998); Serrano v. Severino Santos Transit, 627 SCRA 483(2010) 16.2 Paternity leave Paternity Leave Act of 1996 (R.A. No. 8187), Secs. 1-6; Impl. Guidelines 16.3 Parental leave Solo Parents’ Welfare Act of 2000 (R.A. No. 8972) 17 SERVICE CHARGES LABOR CODE, Art. 96; Omnibus Rules, Book III, Rule VI 17.1 Covered employees/sharing LABOR CODE, Art. 96 18 MINIMUM WAGES AND WAGE FIXING MACHINERY 18.1 Minimum wages LABOR CODE, Art. 99; CONST., Art. XIII, Sec. 3 18.1.1 Rule 18.1.1.1 No work, no pay/ a fair day’s wage for a fair day’s labor Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 258 (2000); Social Security System v. SSS Supervisors' Union, 117 SCRA 746(1982) 18.1.1.2 Equal pay for work of equal value LABOR CODE, Art. 135; International School Alliance of Educators v. Quisumbing, G.R. No. 128845, June 1, 2000 18.1.1.3 Form: agreement for compensation of services Arms Taxi v. NLRC, 219 SCRA 306 (1993) 18.1.2 Coverage LABOR CODE, Arts. 97 (b), (c ) & (e) & 98; 19 Phil. Fisheries Development Authority v. NLRC,213 SCRA 621 (1992) 18.1.3 Minimum wage LABOR CODE, Arts. 99, 97(f), 61, 75(c), & 80(b); R.A. No. 9547, Sec. 2 18.1.4 Determination of compliance with minimum wage Iran v. NLRC, 289 SCRA 433 (1998) 18.1.5 Facilities and supplements/allowances Millares v. NLRC, 305 SCRA 500 (1999); SLL International Cables Specialist v. NLRC, 644 SCRA 411 (2011) 18.1.6 Cash wage/commission Songco v. NLRC, 183 SCRA 610 (1990); Boie Takeda v. De la Serna, 228 SCRA 329 (1993); Phil. Duplicators v. NLRC, 241 SCRA 380 (1995) 18.1.7 Gratuity and salary/wages, difference Plastic Town Center Corp. v. NLRC, 172 SCRA 580 (1989) 18.1.8 Effect on benefits - LABOR CODE, Art. 100; Davao Fruits Corp. v. ALU, 225 SCRA 562 (1993) 18.2 Wage-fixing machinery Wage Rationalization Act (R.A. No. 6727) which amended Art. 120-127 & Omnibus Rules, Book III, Rule IX 18.2.1 Rationale for wage rationalization RA 6727, Sec. 2 18.2.2 Agencies in wage fixing machinery 18.2.2.1 National Wages and Productivity Commission RA 6727, Sec. 3; LABOR CODE, Arts. 120, 121 & 126 18.2.2.2 Regional Tripartite Wages and RA 6727, Sec. 3; LABOR CODE, Arts. 122, 126 20 Productivity Board Nasipit Lumber Co. v. NWPC, 289 SCRA 667 (98) 18.2.3 Standards/criteria for minimum wage fixing RA 6727, Sec. 3; LABOR CODE, Art. 124 18.2.4 Wage order LABOR CODE, Arts. 123 & 124 18.2.4.1 Methods of fixing 18.2.4.1.1 Floor wage method 18.2.4.1.2 Salary - ceiling method Employers Confederation of the Philippines v. NWPC, 201 SCRA 759 (1991) 18.2.4.2 Validity Cagayan Sugar Milling Co. v. Secretary, 284 SCRA 150 (1998); Metropolitan Bank and Trust Company, Inc. v. NWPC, 514 SCRA 346(2007) 18.2.4.3 Wage distortion LABOR CODE, Art. 124; Prubankers Association v. Prudential Bank & Trust Co., 302 SCRA 74 (1999); P.I. Manufacturing, Inc., v. P.I. Manufacturing Supervisors and Foremen Association, 543 SCRA 613 (2008) 18.3 WAGE PAYMENT AND PROTECTION LABOR CODE, Arts. 102, 103, 104, &105; Civil Code, Art. 1705 18.3.1 Form of payment LABOR CODE, Art. 102; Civil Code, Art. 1705; Omnibus Rules, Book III, Rule VIII, Secs. 1 & 2; Congson v. NLRC, 243 SCRA 260 (1995) 18.3.2 Time of payment LABOR CODE, Art. 103; Sec. 3 18.3.3 Place of payment LABOR CODE, Art. 104; Sec. 4 18.3.4 Direct payment of LABOR CODE, Art. 105; Omnibus Rules, 21 wages Book III, Rule VIII, Secs. 5 & 6; Bermiso v. Escano Inc., 105 Phil. 231 (1959) 18.4 WAGE PROHIBITIONS 18.4.1 Prohibition against interference in disposal of wages LABOR CODE, Art. 112; Omnibus Rules, Book III, Rule VIII, Sec. 12 18.4.2 Prohibition against wage deduction LABOR CODE, Art. 113; Omnibus Rules, Book III, Rule VIII, Sec. 13; Apodaca v. NLRC, 172 SCRA 442 (1989) 18.4.3 Prohibition against requirement to make deposits for loss or damage LABOR CODE, Art. 114 & 115; Omnibus Rules, Book III, Rule VIII, Sec. 14; Dentech Manufacturing Corp. v. NLRC, 172 SCRA 588 (1989); Five J Taxi v. NLRC, 235 SCRA 556 (1994) 18.4.4 Prohibition against withholding of wages LABOR CODE, Art.116; Civil Code, Art. 1706 18.4.5 Prohibition against deduction to ensure employment LABOR CODE, Art. 117 18.4.6 Prohibition against retaliatory measures LABOR CODE, Art. 118 18.4.7 Prohibition against false reporting LABOR CODE, Art. 119; Omnibus Rules, Book III, Rule X, Sec. 13 18.4.8 Prohibition against keeping of employee’s records in a place other than the workplace Omnibus Rules, Book III, Rule X, Sec. 11; South Motorists Enterprises v. Tosoc, 181 SCRA 386 (1990) 18.4.9 Prohibition against garnishment/ execution Civil Code, Art. 1708; Gaa v. CA, 140 SCRA 304 (1985) 18.5 WORKERS PREFERENCE IN THE LABOR CODE, Art. 110; Civil Code, 1707, 2241, 2242, 2244; 22 EVENT OF BANKRUPTCY DBP v. Secretary of Labor, G.R. 79351, November 28, 1989; Barayoga v. Asset Privatization Trust, 473 SCRA 690 (2005) 18.6 WAGE RECOVERY/ JURISDICTION LABOR CODE, Arts. 128, 129, 217, & 111; Balladares v. Paek Ventures Corp., G.R. No. 161794, June 16, 2009; Meteoro v. Creative Creatures, Inc., G.R. No. 171275, July 13, 2009. 19 Thirteenth month pay Pres. Decree No. 851 19.1 History of the law Dentech Manufacturing Corp. v. NLRC, 172 SCRA 588 (1989) 19.2 Coverage Revised Guidelines on the Implementation of 13 th Month Pay Law (Revised Guidelines); Archilles Manufacturing Corp. v. NLRC, 244 SCRA 750 (1995) 19.3 Rationale P.D. No. 851 -(Whereas Clauses) 19.4 Amount and date of payment Revised Guidelines, Sec. 4 19.4.1 Basic wage/commissions Revised Guidelines, Sec. 4; Songco v. NLRC, 183 SCRA 610 (1990); Boie Takeda v. dela Serna, 228 SCRA 329 (1993); Phil. Duplicators Inc. v. NLRC, 241 SCRA 380 (1995); Iran v. NLRC, 289 SCRA 433 (1998) 19.4.2 Substitute payment Framanlis Farms, Inc. v. MOLE, 171 SCRA 87 (1989) 20 Bonus 20.1 Nature: Phil. Duplicators Inc. v. NLRC, 241 SCRA 380 (1995) 20.2 Definition; when demandable Producers Bank of the Philippines v. NLRC, 355 SCRA 489 (2001; Eastern Telecomunications Phil. Inc. v. Eastern Telecoms Union, G.R. No. 185665, February 8, 2012 21 Working conditions for special group 23 of workers 21.1 WOMEN LABOR CODE, Art. 130, 131, 132, 133, 134, 135, 136, 137, &138; Omnibus Rules, Book III, Rule XII. See also Women in Development and Nation Building Act, R.A. No. 7192 (1992); and Anti-Sexual Harassment Act of 1995, R.A. No. 7877 21.1.1 Women under the Constitution - Art. II, Sec. 14; Art. XIII, Sec. 14 Phil. Telegraph and Telephone Co., v. NLRC, 272 SCRA 596 (1997) 21.1.2 Coverage Omnibus Rules, Book III, Rule XII, Sec. 1 21.1.3 Prohibited acts 21.1.3.1 Night work/exception LABOR CODE, Arts. 130, & 131; R.A. No. 10151 21.1.3.2 Discrimination LABOR CODE, Art. 135 21.1.3.3 Stipulation against marriage LABOR CODE, Art. 136; Philippine Telegraph and Telephone Co. v. NLRC, 272 SCRA 596 (1997); Star Paper Corp. v. Simbol, 487 SCRA 228(2006) 21.1.3.4 Discharge on account of pregnancy LABOR CODE, Art. 137 21.1.4 Facilities LABOR CODE, Arts. 132 & 134 21.1.5 Special women workers LABOR CODE, Art. 138 21.1.6 Maternity leave Social Security Act of 1997, RA No. 8282, Sec. 14-A 21.1.7 Sexual harassment RA No. 7877 ; Domingo v. Rayala, G.R. No. 155831, February 18, 2008 21.2 MINORS LABOR CODE, Arts.139 &140; Omnibus Rules, Book III, Rule XII, Secs. 2 & 3; Special 24 Protection of Children Against Abuse, Exploitation and Discrimination Act (R.A. No. 7610), as amended by the Special Protection of Children Act (R.A. No. 7658) 21.2.1 Minors under the Constitution CONST, Art. II, Sec. 13 21.2.2 Coverage Omnibus Rules, Book III, Rule XII, Sec. 1 21.2.3 Working children LABOR CODE, Art. 139 ; RA 7610, as amended, Secs. 12-16; DOLE Memo Circular No. 2, s. 1998 Re: Hazardous and non-hazardous establishments 21.2.4 Discrimination LABOR CODE, Art. 140 21.3 HOUSEHELPERS/ CAREGIVERS R.A. No. 10361; Implementing Rules and Regulations of R.A. No. 10361; ILO Domestic Workers Convention, 2011 (No. 189) 21.4 PROJECT EMPLOYMENT LABOR CODE, Art. 280 1st par.; PNOC Energy Development Corp. v. NLRC, G.R. No. 169353, April 13, 2007; Aro v. NLRC, G.R. No. 174792, March 7, 2012; William Construction Corp. v. Trinidad, G.R. No. 183250, March 12, 2010; 21.5 CASUAL EMPLOYEES LABOR CODE, Art. 280 2nd par.; Omnibus Rules, Book VI, Rule 1, Sec. 5 (b) 21.5.1 Nature of work Dealco Farms, Inc. v. NLRC, G.R. No. 153192, January 30, 2009 21.5.2 One year service Kimberly-Clark (Phils.), Inc. v. Secretary of Labor,G.R. No. 156668, November 23, 2007 21.6 FIXED-TERM EMPLOYEES Brent School v. Zamora, G.R. Mo. L-48494, February 5, 1990; Price v. Innodata Phil., Inc., G.R. No. 178505, September 30, 2008 21.7 SEASONAL EMPLOYEES Cebu Metal Corp. v. Saliling, G.R. No. 154463, September 5, 2006; Hacienda Bino v. Cuenca, 456 SCRA 300 (2005) 25 21.8 PROBATIONARY EMPLOYEES LABOR CODE, Art. 281; 61, 2nd sentence; Omnibus Rules, Book VI, Rule I, Sec. 6; LABOR CODE, Art. 75 (d) 21.8.1 Definition/purpose Woodridge School v. Pe Benito, G.R. No. 160240, October 29, 2008; Cebu Marine Beach Resort v. NLRC, G.R. No. 143252, Oct. 23, 2003 21.8.2 Duration: rule/exception A Prime Security Services, Inc. v. NLRC, 322 SCRA 283 (2000); Canadian Opportunities Unlimited, Inc. v. Dalangin, G.R. No. 172223, February 6, 2012 21.8.3 Extension of contract Phil. Federation etc. v. NLRC, G.R. No. 121071, December 11, 1998 21.8.4 Standards - not determined Davao Contractors Development Cooperative v. Pasawa, G.R. No. 172174, July 9, 2009 21.8.5 Private school teachers -- rule Lacuesta v. Ateneo de Manila University, 477 SCRA 217 (2005); Aklan College, Inc. v. Guarino, G.R. No. 152949, August 14, 2007 Part V Termination of Employment 22 General Concepts 22.1 Coverage LABOR CODE, Art. 278 22.2 Security of tenure LABOR CODE, Art. 279; 22.2.1 Nature of right/rationale Llosa Tan v. Silahis International Hotel, 181 SCRA 738 (1990); City Services Corp. Workers v. City Services Corp., 135 SCRA 564 (1985) 22.2.2 Coverage Inter Orient Maritime Enterprises, Inc. v. NLRC, 235 SCRA 268 (1994); Woodridge School v. Pe Benito, G.R. No. 160240, October 29, 2008 22.2.3 Requisites of valid termination Ting v. CA, G.R. No, 146174, July 12, 2006 26 22.2.4 Measure of penalty Bago v. NLRC, G.R. No. 170001, April 4, 2007; Sagales v. Rustan’s Commercial Corp., G.R. No. 166554, November 27, 2008.; Negros Slashers, Inc. v. Teng, G.R. No. 187122, February 22, 2012 23 Termination of employment By employee 23.1 Resignation Virgen Shipping Corp. v. Barraquio, G.R. No. 178127, April 16, 2009; Casa Cebuana Incorporada v. Leuterio, G.R. No. 176040, September 4, 2009; Mora v. Avesco Marketing Corp., G.R. No. 177414, November 14, 2008 23.1.1 Just causes LABOR CODE, Art. 285 (b) 23.1.2 Without just cause LABOR CODE, Art. 285 (a) 23.2 Performance of military or civic duty LABOR CODE, Art. 286; Omnibus Rules, Book VI, Rule I, Sec. 12 24 Termination of employment by employer 24.1 Substantive requirements - just causes LABOR CODE, Art. 282; 279; 277 (b) 24.1.1 Basis - management prerogative Ocean East Agency Corp. v. NLRC, 287 SCRA 546 (1998) 24.1.2 Serious misconduct/willful disobedience (insubordination) LABOR CODE, Art. 282 (a); Yabut v. MERALCO, G.R. No. 190436, January 16, 2012; First Dominion Resources Corp. v. Penaranda, 480 SCRA 504 (2006); Bascon v. CA, 422 SCRA 122 (2004); Lores Realty Enterprises, Inc., v. Virginia E. Pacia, G.R. No. 171189, March 9, 2011. 24.1.3 Gross and habitual neglect of duties LABOR CODE, Art. 282 (b); Talidano v. Falcon Maritime and Allied 27 Services, Inc., G.R. No. 172031, July 14, 2008; School fo the Holy Spirit of Quezon City v. Taguiam, G.R. No. 165565, July 14, 2008; Eastern Overseas Employment Center, Inc. v. Bea, 476 SCRA 384 (2005) 24.1.4 Loss of trust and confidence LABOR CODE, Art. 282 (c); James Ben L. Jerusalem v. Keppel Monte Bank, et al.,G.R. No. 169564. April 6, 2011; Salas v. Aboitiz One, Inc., G.R. No. 178236, June 27, 2008; Eats-cetera Food Services Outlet v. Letran, G.R. 179507, October 2, 2009 24.1.5 Commission of crime LABOR CODE, Art. 282 (d) 24.1.6 Analogous causes LABOR CODE, Art. 282 (e); Heavylift Manila, Inc. v. CA, 473 SCRA 541 (2005); John Hancock Life Insurance Corp. v. Davis, G.R. 169549, September 3, 2008; Yrasuegui v. PAL, G.R. No. 168081, October 17, 2008 24.1.7 Others 24.1.7.1 Abandonment Harpoon Marine Services, Inc. v. Francisco, GR No. 167751, March 2, 2011. 24.1.7.2 Courtesy resignation Batongbacal v. Associated Bank, 168 SCRA 600 (1988) 24.1.7.3 Change of ownership Manlimos v. NLRC, 242 SCRA 145 (1995) 24.1.7.4 Habitual absenteeism Quiambao v. Manila Electric Co., G.R. No. 171023, December 18, 2009 24.1.7.5 Fixed-term employment Medenilla v. PVB, G.R. No. 127673; March 13, 2000; Pamantasan v. Civil Service Commission, 241 SCRA 506 (1995) 24.1.7.6 Past offenses McDonald's (Katipunan Branch) v. Alba, G.R. 156382, December 18, 2008 24.1.7.7 Immorality 28 24.1.7.8 Conviction of crime Sampaguita Garments Corp. v. NLRC, 233 SCRA 260 (1994) 24.1.8 Constructive dismissal Gilles v. CA, G.R. No. 149273, June 5, 2009. Chiang Kai Shek College v. CA, 437 SCRA 171 (2004). La Rosa v. Ambassador Hotel, G.R. No. 177059, March 13, 2009 24.1.9 Transfer Aguanza v. Asian Terminal Inc., G.R. No. 163505, August 14, 2009; Herida v. F&C Pawnshop and Jewelry Store, G.R. No. 172601, April 16, 2009; PLDT v. Paguio, 472 SCRA 453 (2005) 24.1.10 Promotion Phil. Telegraph v. CA, G.R. No. 152057, Sept. 29, 2003 24.1.11 Preventive suspension Old Omnibus Rules, Book V, Rule XXIV, Secs. 3 & 4; Philippine Airlines Inc. v. NLRC, 292 SCRA 40 (1998) 24.1.12 Residency training Felix v. Buenaseda, 240 SCRA 139 (1995) 24.2 Substantive requirements - business related causes LABOR CODE, Art. 283 24.3 Basis - employer right Edge Apparel Inc. v. NLRC, 286 SCRA 302 (1998); Elleccion v. NLRC, G.R. No. 184735, September 17, 2009 24.4 Business-related or authorized causes: 24.4.1 Installation of labor- saving devices LABOR CODE, Art. 283 24.4.2 Retrenchment to prevent losses LABOR CODE, Art. 283 Flight Attendants & Stewards Association of the Philippines v. PAL, G.R. No. 178083, July 22, 2008; Emcor, Inc. v. Sienes, G.R. No. 152101, September 8, 2009; Metro Construction Inc. v. Aman, G.R. No. 168324, October 12, 2009 24.4.3 Redundancy LABOR CODE, Art. 283; 29 Lowe Inc. v. CA, G.R. No. 164813, August 14, 2009; AMA v. Garcia, G.R. No. 166703, April 14, 2008 24.4.4 Closure of business LABOR CODE, Art. 283; Eastridge Golf Club Inc. v. Eastridge Golf Club Inc. Labor Union, G.R. No. 166760, August 22, 2008; Elcee Farms, Inc. v. NLRC, G.R. No. 126428, January 25, 2007 24.4.5 Temporary closure LABOR CODE, Art. 286; Valdez v. NLRC, 286 SCRA 87 (1998); Eagle Star Security Services, Inc. v. Mirando, G.R. No. 179512, July 30, 2009 24.5 Disease LABOR CODE, Art. 284; Duterte v. Kingswood Trading Co., G.R. No. 160325, October 4, 2007; Crayon Processing v. Pula, G.R. No. 167727, July 30, 2007 25 Procedural requirements LABOR CODE, Art. 277 (b); Omnibus Rules, Book VI, Rule I, Secs. 1, 2 & 3 25.1 In general Phil. Movie Pictures Workers' Assciation v. Premiere Productions, Inc., 92 Phil. 843 (1953); Agabon v. NLRC, 442 SCRA 573 (2004); King of Kings Transport, Inc. v. Mamac, G.R. No. 166208, June 29, 2007 25.2 Right to counsel Salaw v. NLRC, 202 SCRA 7 (1991) 25.3 Notice Casa Cebuana Incorporada v. Leuterio, G.R. No. 176040, September 4, 2009 25.4 Hearing Perez v. Philippine Telegraph and Telephone Co., G.R. No. 152048, April 7, 2009; Suico. v. NLRC, G.R. No. 146762, January 30, 2007 25.5 Decision - award Dela Cruz v. Maerks Filipinas Crewing, Inc., G.R. No. 172038, April 14, 2008 30 25.6 Burden of proof Macasero v. Southern Industrial Gases Phil., G.R. No. 178524, January 30, 2009; Gallego v. Bayer Phil., Inc., G.R. No. 179807, July 31, 2009 25.7 Degree of proof Mitsubishi Motors Phils. Corp. v. Simon, G.R. No. 164081, April 16, 2008; Rentokil (Initial) Phil., Inc. v. Sanchez, G.R. No. 176219, December 23, 2008. 25.8 Prescription Callanta v. Carnation Phil., Inc., 145 Scra 268 (1986) 26 Reliefs/remedies in illegal dismissal LABOR CODE, Arts. 279 & 223 26.1 Reinstatement 26.1.1 Definition Pheschem Industrial Corp. v. Moldez, 458 SCRA 339 (2005); Citytrust Banking Corp. v. NLRC, G.R. No. 104860; July 11, 1996 26.1.2 Reinstatement pending appeal Pfizer, Inc., et al. v. Velasco, G.R. No. 177467, March 9, 2011. 26.1.3 Exceptions 26.1.3.1 Closure of business Philippine Engineering Corp. v. CIR, 41 SCRA 102 (1971) 26.1.3.2 Prayer is for separation pay in lieu of reinstatement Citytrucking, Inc. v. Balajadia, G.R. No. 160769, August 9, 2006; Pheschem Industrial Corp. v. Moldez, 458 SCRA 339 (2005) 26.1.3.3 Economic business conditions Electruck Asia, Inc. v. Meris, 435 SCRA 310 (2004; Union Supervisors etc. v. Sec. Of Labor 128 SCRA 442 (1984) 26.1.3.4 Employees' unsuitability Divine Word High School v. NLRC, 143 SCRA 346 (1986) 26.1.3.5 Employee’s retirement/overage Citytrust Banking Corp. v. NLRC, G.R. No. 104860; July 11, 1996 26.1.3.6 Strained relations Acesite Corp. v. NLRC, 449 SCRA 360 (2005); Pentagon Steel Corp. v. CA, G.R. No. 174141, June 26, 2009.; Cabigting 31 v. San Miguel Foods Inc.,G.R. No. 167706, November 5, 2009 26.1.3.7 Not Feasible Goma v. Pamplona Plantation, Inc., G.R. No. 160905, July 4, 2008 26.1.3. 8 Offer to reinstate Ranara v. NLRC, 212 SCRA 631 (1992) 26.2 Backwages 26.2.1Effect of failure to order Asian Terminals, Inc. v. NLRC, G.R. No. 158458, December 19, 2007. 26.2.2 Computation Triad Security and Allied Services, Inc. v. Ortega, Jr., 481 SCRA 591 (2006); Philippine Journalists, Inc. v. Mosqueda, 429 SCRA 369 (2004); PLDT v. Paguio 472 SCRA 453 (2005); Torres v. Rural Bank of San Juan, Inc., G.R. No. 184520, March 13, 2013. 26.3 Damages and attorney’s fees M + W Zander Phil., Inc. v. Enriquez, G.R. No. 169173, June 5, 2009. 26.4 Separation pay Siemens Phil., Inc. v. Domingo, G.R. No. 150488, July 28, 2008; Nissan North EDSA Balintawak v. Serrano, G.R. No. 162538, June 4, 2009. 26.4.1 Computation/ rationale Businessday Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993; PLDT v. NLRC, 164 SCRA (1988); Songco v. NLRC, 183 SCRA 610 (1990); 26.4.2 Effect of receipt Amkor Technology Phil., Inc. v. Juangco, G.R. No. 166507, September 27, 2006 26.5 Interest Nacar v. Gallery Frames, G.R. No. 189871, August 13, 2013. 26.6 Financial assistance 26.5.1 When allowed/not allowed Luna v. Allado Construction Company, Inc., G.R. No. 175251,May 30, 2011; Apacible v. Multimed Industries, et al.,G.R. No. 178903,May 30, 2011 ; Bristol Myers Squibb v. Baban, G.R. 167449, 32 December 17, 2008; Phil. Long Distance Tel. Co. v. NLRC, 164 SCRA 671 (1988). 26.7 Indemnity Arms Taxi v. NLRC, 219 SCRA 306 (1993) 26.8 Solidary liabilty of corporate officers Harpoon Marine Services, Inc. v. Francisco, GR No. 167751, March 2, 2011. 27 Retirement LABOR CODE, Art. 287; Retirement Pay Law (RA No. 7641); Implementing Rules; Labor Advisory on Retirement Pay (Oct. 1999); Oxales v. Unilab, G.R. No. 152991, July 21, 2008; Quevedo v. Benguet Electric Cooperative, Inc., G.R. No. 168927, September 11, 2009