Labor - June 19, 26, July 9, 10

(1) Labor Law (Review) Fr. Nazarenos Lectures : June 19, 26, Ju! 9, 1" Jazzie #.
$arona (% #anresa)
JUNE 19
Let us be&in wit' ()*o!ees +o)*ensation. ,'e
be&innin& o- e)*o!ees co)*ensation is .icart vs. $)it' (ast
cear c'ance/ :o).
,'ere is a cart oa0e0 wit' coa. 1t is on rais. 2ne o- t'e
rais was bro3en or 0is4ointe0. $o )uc' so t'at w'en t'e cart
&oes over it, it sin3s, t'en, recovers. 1t 'as been 5 0a!s i3e
t'at. ,'e e)*o!ees re*orte0 t'at to t'e su*ervisor. Not'in&
is 0one.
()*o!ee in 6uestion is *us'in& t'e cart. 7is
co)*anions warn 'i): Naa! ti&)a'an ('e'e .. sori .. waa 3o
3abao sa ter) ). 8!aw *au!o 0ira. 9aa si!a na&*atuo,
na&*au!o si!a. Nati3wan& an& cart. Na0at:u&an si!a.
9'en !ou ta3 about coa carts, its su**ose0 to be 1 ton.
,'e 0e-ense o- t'e e)*o!er: ne&i&ence. ;iin&nan na
si!a a!aw *au!o 0ira, tua na&0iretso<
+ause o- action o- t'e e)*o!ee: t'e e)*o!er is
ne&i&ent. 7e 0i0 not re*air t'at. ,'at is &ross ne&i&ence
because 'e i&nore0 5 notices.
+an t'e e)*o!ee recover/
Ne&i&ence is besi0e t'e *oint because our e)*o!ees
co)*ensation now is a no:-aut s!ste).
8 !ou 'ave to 0o is:
1. !ou are e)*o!e0
2. it occurre0 at t'e wor3*ace
5. it occurre0 0urin& wor3in& 'ours
,'at is enou&'. ,'at is wor3:reate0 in4ur!, sic3ness or
0eat'.
7ow )an! o- !ou 'ave &one t'rou&' t'e (R:((
reations'i* cases, t'is ist o- cases/
$u**ose0 !ou are as3e0 in t'e bar 6uestion: 1s t'e
ren0ition o- service or abor essentia in an (R:(( reations'i*/
1- !ou sa! !es, w'ere is it in t'e 4 requisites for the
existence of ER-EE relationship/ =oes it sa! one, ren0ers
abor to anot'er/ N2. ,'e -our re6uisites, as enunciate0 in 8
La&a0an case (>iana vs. #a! 51, 19?6), an0 re*eate0 in LVN
vs. P!L. "U#!$!%N# &U!L' (Januar) *+, 19-1., are:
1. seection an0 'irin&
2. *a!)ent o- wa&es
5. *ower to @re
%. *ower to contro not on! t'e &oas to be ac'ieve0 but
aso t'e )eans an0 )et'o0s use0
7aa )an an& service 0ira/
Now, because !ou 'ave rea0 t'ose cases o- (R:((
reations'i*, w'! is it t'at ren0ition o- services is not one o-
t'e re6uisites o- (R:(( reations'i*/
$i)*! because i- t'e e)*o!ee 0oes not ren0er service,
'e wou0 cease to be an e)*o!ee. (R:(( reations'i* wou0
cease. ,'e contract o- e)*o!)ent wou0 cease.
#u:eave 3a 3a! )a&ba3as!on 3a. 9aa na, 'u)ana an&
i)on& *a&3a:e)*o!ee. Na&3asa3it 3a, waa 3a nitraba'o. =i
na 3a e)*o!ee 3a! waa 3a na)an na&:ren0er u& service.
Aut !ou sti re)ain an e)*o!ee, isnt it/ Bou &o on
eave an0 i- t'at is *rovi0e0 -or in !our in0ivi0ua contract or
+A8, !ou continue to receive !our re&uar saar!.
=o !ou receive (+2L8 3un& 3anan& )u:absent 3a, waa
nitraba'o or vacation eave/ 9'at is (+2L8/ =ii na si!a
sa3it ()er&enc! +ost o- Livin& 8owance, w'ic' is/ Ca)o
ain in!on& &ina:a0tuan sa internet/ 80to )o sa Nationa
9a&es an0 .ro0uctivit! +o))ission. 8 t'e Labor $tan0ar0
wa&es in a t'e re&ions are t'ere.
=iri sa =avao, non:a&ricutura, t'e 'i&'est cassi@cation
-or wa&es in our 4uris0iction, .25% basic an0 (+2L8 is .16.
Dn!a, naa! 9a&e 2r0er No. 1? (/), anot'er (+2L8 .1?.
(Eective June 16, basic is .2?" *us (+2L8 o- .1?. Ae-ore
t'at 9a&e 2r0er No. 1?, t'e (+2L8 was .16, .25% an& basic,
.2?" tanan. Caron, 9a&e 2r0er No. 1?, 2 na an& (+2L8. Naa
na! &i0u&an na (+2L8 .1?. .1? *us .16, .51 na 3aron an&
(+2L8. Caron& $e*te)ber, t'e o0 (+2L8 o- 9a&e 2r0er No.
1? wi be inte&rate0 into t'e basic. #a'i)o na an& basic .
2?", an& (+2L8 . 1?, so . 26?.
+an !ou receive (+2L8 i- waa 3a na&traba'o/ B($. 1t
awa!s &oes wit' t'e basic. (ver!ti)e !ou are entite0 to t'e
basic, !ou are entite0 to (+2L8.
,'e issue is now w'et'er !ou are wor3in& or not wor3in&.
,'e issue is are !ou receivin& t'e basic. 1- !ou receive t'e
basic, !ou are entite0 to (+2L8.
1- !ou are not wor3in& an0 one o- t'e re6uisites -or (R:((
reations'i* is actua ren0ition o- service an0 !ou are no
on&er ren0erin& service, because !ou are !in& in !our bani&,
)asa3iton 3a, t'ere-ore, !ou too3 a sic3 eave, t'en, !ou are
no on&er an e)*o!ee.
$o, to &o bac3, seection an0 'irin&, *a!)ent o- wa&es, *ower
to 0is)iss an0 *ower to contro. ,'ose are t'e % re6uisites.
LVN vs. P!L. "U#!$!%N# &U!L' brin&s out t'e *articuar
insi&'t t'at t'e @rst 5 re6uisites, seection an0 'irin&, *a!)ent o-
wa&es an0 *ower to 0is)iss, )a! not be -u@e0. Aut i- t'e %
t'
one is -u@e0, t'en, it is *ossibe t'at t'ere can sti be an (R:((
e)*o!ee. .ower to contro<
,'e neFt 6uestion is: is our reations'i* Fat'er (R:((/ (ven i-
t'e 5 are not t'ere 1 0i0 not seect !ou nor 'ire !ou, 1 0o not *a!
wa&es but, 1 contro. .a&:in&on na3o et us *ra!, )anin0o& )o
9'at 1 sa! !ou write 0own. #a&:in&on 3o )a&test ta u&)a,
)a&test ta. $o, 1 'ave 0a!:to:0a! contro, not on! as to t'e &oa
to *ass but aso t'e )eans an0 )et'o0s. ,'ere-ore, 0oes t'at
)a3e !ou (us, stu0ents) )! e)*o!ees an0 1 (Fat'er as our
*ro-essor) as !our e)*o!er/
,'e po/er of control test is t'e )ost i)*ortant test but it
is not t'e on! test. 1t is &reat! )ateria in t'e 0eter)ination o-
t'e eFistence o- a contract o- an (R:(( but it is not t'e on! test.
Loo3 at LVN vs. P!L. "U#!$!%N# &U!L'.
,'e ar&u)ent o- L>N is t'is: Bou )usicians, !ou t'in3 !ou are
our e)*o!ees. ,'at is w'! !ou want to )a3e a union vis:G:vis us.
9e are not !our e)*o!ers. Bou are not our e)*o!ees. 9e are
en&a&e0 in t'e business o- )a3in& )ovies. Bou are en&a&e0 in
t'e )a3in& o- )usic. Cana an& 0aan, 0ii na ta (R:((. $ine )i,
)usic )o. 7ow can we be !our e)*o!er/ .recise! because 1 0o
not 3now about )usic, 1 'ire a )usica 0irector. ,'e )usica
0irector is )! e)*o!ee. 1 as3 'i), *an&ita& )usic t'at wi be
@ttin& -or t'is @). 1 &ive !ou u)* su) a)ount. 9e contract.
#ovie co)*an!, )usica 0irector. Lu)* su) a)ount, sa!
.5"",""". .an&ita u& )usic ini. 8n& tite ani 3a! H+are&iverI.
Aasa'a nan& scri*t, *an&ita u& )usic ana. $i!a na an& )an&ita.
,'e )ovie co)*an! 0oes not 3now t'e business o- )usic. 1t
cannot 3now w'o are t'e &oo0 )usicians. 9'o are t'e 0ru))ers
t'at are wort'! o- t'eir instru)ents/ 9'o are t'e &oo0 win0
instru)ents *a!ers/ #a!o 3a!a ni si!a )u:ta!'o* u& tru)*eta
3a! 0a3o u& awas/ ,'e! 0o not 3now.
$o, 'ow co)e t'e! are e)*o!ees/
$u*re)e +ourt sa!s !ou )i&'t 'ave be&un i3e t'at. Aut
t'en, !ou c'an&e0. 7ow/ Bou 'ire0 a )usica 0irector. Aut !ou
to0 t'e )usica 0irector, an'i )a&*ractice sa stu0io. Caru'on ta
na< 8run )a3u'a ni)o an& i)on& tao, naa! L>N bus. ;a)ita na.
Dn!a, ca si*s. ,a&ai na u& ca si*s i)on& )usicians. N&anon&
0ii na )an an& i:ca, butan&an *a )an u& si*s/ Ca!, recor0 na
si!a sa o*isina sa *a&3aon. .ia 3a *ac3e0 unc' an& &a)iton.
#ao ra ton& ta&aan u& *ac3e0 unc'. 8sa &i3an an& *ac3e0
unc'/ $a )usica 0irector/ $a L>N< 8n& na&*atawa& nia 3a!
L>N.
,'at in0icates contro. 8 t'ose instances in0icate contro.
8n0 @na!, wit' t'e so:cae0 @na ta3e, w'en t'e! 0eci0e t'e
*articuar ren0ition o- t'e )usic t'at is &oin& to be attac'e0 to t'e
)ovie, w'et'er or not t'e )usicians are cae0 u*on to be *art o-
t'e visua ta3e o- t'e )ovie, because t'e! are *art o- t'e scene o-
t'e )ovie, t'e! are *a!in& t'ere, or t'e! 'ave no *art. ,'e! 4ust
*rovi0e t'e )usic. 1n t'e @na ta3e, t'e )usica 0irector -a0es out
-ro) t'e scene. 8n0 t'e one w'o 0eter)ines t'e @na ta3e is t'e
)ovie 0irector.
,an:awa na&'ia3 si $'aron, *as*asan na an& vioin
8n& )ovie 0irector na an& na&buot ana. 8n0 it is )easure0
b! secon0s. ,'at is 'ow )ovies are @na! e0ite0. (it'er t'e
)ovie @ts into t'e )usic or t'e )usic @ts into t'e )ovie.
(,a3s about a scene in t'e @) Autc' +assi0! an0 t'e
$un0ance Ci0, starrin& .au New)an, w'ere t'e scene ins*ire0 t'e
son& Rain0ro*s Cee* Fain on #! 7ea0 J aaaa'< )
1t is t'e )usica 0irector w'o &ives t'e )ateria. Aut @na!,
t'e one w'o c'ooses t'e *recise version is t'e )ovie 0irector
because in t'e en0, 'e is t'e @na creator o- t'e @).
,'at is w'! t'e $u*re)e +ourt sai0, attention to 0etai is
-u@)ent o- t'e %
t'
re6uire)ent. +ontro, not 4ust as to t'e &oa
or t'e en0 *ro0uct, but aso as to t'e )eans an0 )et'o0s to
*ro0uce t'at en0 *ro0uct.
,'at is w'at )a3es LVN vs. P!L. "U#!$!%N# &U!L' a ver!
revoutionar! ruin&.
1- !ou wi &o t'rou&' so)e o- t'e 6uote0 cases t'ere, in t'e
Dnite0 $tates, -or a w'ie, t'e! si0e:trac3e0 into t'e econo)ic
entit! test. 7ow )uc' )ac'iner! *er wor3er is investe0/ ,'at is
t'e test. ,'e $u*re)e +ourt o- t'e D$ -oun0 t'at is ina0e6uate.
1t 0oes not @t a 3in0s o- cases. Fina!, t'e! wit'0raw -ro) t'at
ruin&. ,'e! went bac3 to t'e *ower o- contro test.
,'e ot'er cases s'ow !ou *recise! 'ow t'e test is )et.
Location separation 0oes not violate (1. the po/er of
control test. ,'e e)*o!er )a! be se*arate0 -ro) t'e
e)*o!ee *'!sica! but t'e test is sti )et. ,'at is s'own in t'e
1
(1) Labor Law (Review) Fr. Nazarenos Lectures : June 19, 26, Ju! 9, 1" Jazzie #. $arona (% #anresa)
case o- #2ERL!N& PR3'U$2# vs. #3L (4e5ruar) *+,
19-6..
7er 4ob is to @n0 out w'et'er t'e co)*an! t'at
contracte0 certain a0vertise)ents to be aire0 b! certain ra0io
stations at 0e@nite ti)es are co)*!in& wit' t'eir obi&ations
un0er t'e contract. ,'e contract -or a0vertise)ent sti*uates
t'at a0vertise)ents -or $terin& .ro0ucts s'ou0 be aire0 at
certain ti)es, et us sa!, noon, evenin& an0 ear! )ornin& an0
t'e! are *ai0 *er eF*osure.
9'o wi veri-! t'at/ ,'e! 'ire so)ebo0! to be a ra0io
)onitor. #ao na si!a ti&:*a)inaw. ,'e ra0io )onitor is not
in-or)e0 about t'e contract. ,'e ra0io )onitor is 4ust to0 to
recor0 t'e ti)e !ou 'ear t'ese a0vertise)ents.
,'at 4ob 0oes not re6uire t'e ra0io )onitor to re*ort at
$terin& oKce. $'e 4ust sta!s at 'o)e an0 istens to t'e
ra0io.
9'en s'e is @na! @re0 -or so)e ot'er reasons, s'e
cai)s securit! o- tenure. ,'e co)*an! sa!s no, !ou are not
our e)*o!ee. Bou are a casua e)*o!ee, 4ust 'ire0 -or t'e
a0vertise)ents.
$'e sa!s, 1 a) !our e)*o!ee. Bou &ave )e an 1=. ,'e
e)*o!er sa!s t'at is not 0e@nitive. 1s t'at one o- t'e
re6uisites o- (R:(( reations'i*/ Bou 'ave an 1=/ #a!be t'at
1= was &iven to !ou so t'at !ou can &o insi0e t'e *re)ises to
coect !our saar!.
,'e issue is can t'e contro test be )et even i- t'e
e)*o!er is -ar awa! -ro) t'e e)*o!ee on a re&uar, 'abitua
basis/ 1n ever!0a! o- !our wor3, !ou 0o not rea! nee0 'i)
to be cose to !ou, to su*ervise !ou an0 contro t'e )eans
an0 )et'o0s !ou are usin& to ac'ieve t'e &oa.
,'e $u*re)e +ourt sa!s !es, t'e contro test in t'is
instance is )et. 9'!/ Aecause o- t'e nu)ber o- -or)s $o
'a0 to @ out. $'e @s it out.
1n ot'er wor0s, in eEect, t'e -or) su*ervises t'e
e)*o!ee. .a&)uin&on si!a, 1":%? 8strin&:o:so a0. 8a'<
Na)a3a3 )an ni si!a 3a! waa )an ta! contrata na ana ba,
na 1":%?. 12 noon naa ta.
$o, s'e is )onitore0 b! t'e -or)s. $o, it is *ossibe to
su*ervise. 1t is *ossibe to contro t'e )eans an0 )et'o0s
use0.
Cinin& )&a re*air crews, et us sa! =avao Li&'t an0
.ower +o)*an!, t'ere are severa crews. Naa! s'ort circuit
sa Au'an&in. Lar&a )o. 8re t'e! su*ervise0 or are t'e! not
su*ervise0/ ,'e! can be su*ervise0. ,'e! are )onitore0 b!
ra0io. ,'eir o0o)eter is rea0 b! t'e securit! &uar0 be-ore
t'e! eave t'e &uar0 'ouse. .a&bai3 ana ni!a, recor0 na sa0.
#a'ibaw:an na *ia 3a 3io)etro na sia. 9aa ba sia nia0to
sa ,i)es Aeac' un!a na&3iaw #a'ibaw:an )an na.
,'at is sti ocation se*aration an0 !et, !ou can be
)onitore0.
'7 8E 9EN& vs. !N2ERN%2!3N%L L%93R ("a) *:,
19;9.. 9e are ta3in& 'ere about a )a3er o- 3ain&s. 1n
+ebuano, it is cae0 bu3a&. Ai& bas3ets.
8**arent!, it is -ar)e0 out to wor3ers. $o)e o- t'e)
)a3e it in t'e *re)ises o- t'e e)*o!er, ot'ers brin& t'e
)aterias 'o)e an0 w'at t'e! brin& bac3 are @nis'e0
*ro0ucts.
+an t'e! -or) a union vis:G:vis =! Ce' Aen& w'o owns
t'e estabis')ent/ 1- t'e! can, t'at )eans t'e! are
e)*o!ees o- =! Ce' Aen&. 1- t'e! cannot, t'e! are not
e)*o!ees. ,'e! are in0e*en0ent contractors )a3in&
bas3ets an0 *assin& t'e) on to =! Ce' Aen&.
Aut t'e! -or)e0 a union. $o, t'e! are assertin& t'at t'e!
are e)*o!ees. 9'en =! Ce' Aen& 0is)isse0 t'e), t'e!
@e0 an un-air abor *ractice co)*aint, )eanin& t'at t'e! are
e)*o!ees an0 t'e! were 0is)isse0 because t'e! were
-or)in& a union.
,'e issue is are t'e! e)*o!ees in t'e @rst *ace/
=! Ce' Aen& sa!s )! obi&ation as an e)*o!er 1 'ave to
0en! t'e contro test. 8n0 it is ver! eas! -or )e to 0o t'at. 1
0o not even 3now t'ese wor3ers. 7ow can 1 contro t'e)/
,'e! cannot *resent an! evi0ence t'at 1 contro t'e). 1n -act,
t'e! 4ust cai) t'at t'e! are )! e)*o!ees but t'e! 'ave not
&iven an! evi0ence o- )! contro.
9aa sia na3a*a3ita u& bun0! coc3, ti)e car0. 9aa sia
na3a*a3ita u& notice na na:ate )o. ,'ere is no evi0ence.
,'ere-ore, 1 cannot be t'eir e)*o!er because t'e! 'ave not
*roven contro.
1n or0er to )eet t'e contro test, is it necessar! t'at !ou
actua! a00uce evi0ence o- eFercise o- contro/
,'e $u*re)e +ourt sa!s no, no nee0. 9'at is nee0e0 is
to prove reservation of that ri<ht. 1*a3ita ni)o 0in'a t'at
!ou 'ave t'e ri&'t to contro, !ou can contro but !ou 0i0 not
contro. Reservation o- t'e ri&'t to contro is w'at is now
i)*ortant t'an evi0ence o- actua eFercise o- contro.
7ow can t'at be *roven/ Aecause t'ere are 0e@nite
stan0ar0s -or t'e 3ain&. ,'e size is *re:0eter)ine0. ,'e
*articuar )a3e, t'e )aterias, t'e wi0t', t'at is &iven. 8n0
accor0in& to t'e $u*re)e +ourt, it esca*es co))on sense t'at =!
Ce' Aen& 0i0 not acce*t an! bas3et t'at is &iven. Ca&a)a! sa
bas3et, 0ii )an na 0awaton 3a! 0ii )an na 3ain&. ,'at is 'ow
!ou eFercise contro.
,'at is i)*ortant because in subcontractin&, t'is co)es u*
a&ain. #an! ti)es, t'e wor3ers o- t'e subcontractor wi sa! t'at
we are rea! t'e e)*o!ees o- t'e *rinci*a. 9'!/ Aecause it is
not our a&enc! t'at su*ervises us. 1t is t'e cient o- our a&enc!
w'o su*ervises us. Cinsa )an na&screen na)o na )u:a**! )i
anin& s*ecia oEer/ $ia. Cinsa )an na&:interview na)o/ 8n&
.rocter an0 ;a)be, 0ii nin& =avao #an*ower. Cinsa )an na&:
assi&n na)o na 3inin& $ur- )ao ni a)on& ibai&!a/ 8n& 3i!ente.
Cinsa )an na&:su*ervise na)o/ 8n& 3i!ente sa a)on& a)o.
$o, t'e )ost i)*ortant test is t'e *ower to contro t'e )eans
an0 )et'o0s. ,'ere-ore, t'e! are t'e e)*o!ees. ,'e! 4ust t'e
)an*ower a&enc! as a con0uit. ,'ere-ore, t'ere is abor:on!
contractin&. Bou cance out t'e a&enc! 3a! waa )an 4u0 sia
na&su*ervise. ,'e on! e)*o!er t'e! 'ave is t'e cient.
Re)e)ber, even i- !ou cannot *rove actua eFercise, i- !ou
can *rove reservation o- t'e *ower to contro, t'at is enou&'.
,'e ast 6uestion: w'et'er or not t'e contro test can be )et
even i- contro is inter)ittent. ,o *ass t'e contro test, )ust
contro be continuous an0 uninterru*te0/
RJL "%R2!NE= 4!#!N& vs. NLR$ (Januar) 61, 19+4.
,'ese are uns3ie0 wor3ers. ,'eir 4ob is to unoa0 t'e @s'in&
boats o- RJL #artinez. RJL #artinez Fis'in& 'as ?" 0ee* sea @s'in&
boats. 8t east 1 or 2, so)eti)es )ore t'an ?, an0 (0oc3 si&uro ..
) 0urin& t'e 0a!. 8n0 t'ese wor3ers, wa0e u* to t'eir waste an0
carr! t'e @s' a t'e wa! to 0r! an0 -ro) t'e s'ore. RJL #artinez
'a0 to 'ire wor3ers w'o wi unoa0 t'e @s'in& catc'.
9'en t'ese wor3ers were as3in& -or (+2L8, RJL #artinez
0eci0e0 to ter)inate t'e). ,'e! sai0, no, !ou cannot ter)inate
us. 9e are !our e)*o!ees. RJL sai0: 7ow !ou be our
e)*o!ees/ Bou unoa0 us but t'en, w'en t'ere is anot'er s'i*
co)in&, !ou aso &o t'ere an0 unoa0 an0 !ou aso receive saar!
or co)*ensation -ro) t'e). $o, !ou are not un0er our contro.
7ow can !ou sa! to !our e)*o!er controin& t'e )eans an0
)et'o0s w'en a-ter !ou unoa0 our s'i*s, t'ere are ot'er s'i*s.
RJL #artinez sa!s our en&a&e)ent wit' !ou is *er oa0in& an0
unoa0in&. 8-ter t'at, no )ore. Bou are casua, !ou are not
re&uar. ,'at is t'e ar&u)ent o- RJL #artinez.
,o *ut it in ot'er ter)s, RJL #artinez sa!s: 3un& tinuo0 *a )i
na e)*o!er, an& contro na)o nin!o continous. Loa0 3a, unoa0
3a. 9aa na)an 3a! oa0an, *u!o 0ira. 8!aw na ba'in:ba'in sa
uban. =ira 3a an&. .a&'uat 0in'a. Dn!a wa na)an. .a&'uat
0in'a 3a! i3aw controe0 3a na3o. ,'at is w'at is RJL #artinez is
sa!in&.
,'e e)*o!ees are sa!in& t'at t'e! ta3in& it a&ainst us t'at
we oo3 -or )ore wor3 w'en t'e wor3 t'at !ou &ive us is not
enou&'. Bou 4ust count t'e 'ours t'at we 'ave unoa0e0 base0 on
a rate, w'ic' is )ini)u) wa&e. ,'at is w'at !ou *a! us. ,'at is
w'! to @ u* our 'ours, we &o to ot'er @s'in& boats w'en t'e!
arrive. Aut t'e )o)ent !our @s'in& boats arrive, because we are
!our e)*o!ees, we eave t'e ot'er @s'in& boats. 9e &o an0
unoa0 -ro) !our s'i*s.
,'en, RJL #artinez sa!s, -or t'e contro test to be )et, it )ust
be continuous. ,'ere )ust be no &a*. 2t'erwise, t'ere is no
contro.
,'e $u*re)e +ourt sa!s no. +ontro can be *roven even i- it
is 0iscontinuous.
Notice t'e re6uire)ents o- t'is test w'ic' co))entators sa!
is t'e )ost i)*ortant test o- (R:(( reations'i*. ,'e *ower to
contro not 4ust t'e &oa or en0 to be ac'ieve0 but aso t'e )eans
an0 )et'o0s use0 to ac'ieve t'e &oa.
Rea0 t'e cases. Bou sti 'ave ti)e to rea0 t'ese. 1t is not
rea! !et bar review. Aasic, -un0a)enta na
JUNE *-
1 wou0 i3e to brin& to !our attention t'is atest case o-:
P!L!PP!NE #3$!E27 43R 2E PREVEN2!3N 34 $RUEL27 23
%N!"%L# (P#P$%. vs. $3% (#ept. *:, *>>;.
9'! is t'is case i)*ortant/ 1t is 0eci0e0 en banc an0 t'e
*onente is Justice 8ustria:#artinez.
,'ere are severa *rovisions in t'e Labor +o0e w'ic' sa!s t'at
&overn)ent e)*o!ees are not incu0e0. ,'e! are not incu0e0 in
t'e Labor +o0e.
,'ere is no *robe) w'en it co)es to e)*o!ees o- t'e
Nationa ;overn)ent, e)*o!ees o- t'e sub0ivisions i3e =avao
+it!, e)*o!ees o- instru)entaities i3e t'e 8F. or .N. or t'e
a&encies i3e t'e A1R an0 Aureau o- +usto)s. Aut t'e *robe)
co)es in w'en it is &overn)ent:owne0 or controe0 cor*orations.
2
Bou are area0! -a)iiar wit' t'e ori&ina c'arter t'at 'as
been a**ie0 b! t'e $u*re)e +ourt in t'e Lumanta case.
Na)e!, un0er 8rtice 1L:A, o- t'e +onstitution t'at
0e@nes t'e a)bit o- &overn)ent e)*o!ees in &overn)ent:
owne0 or controe0 cor*orations )ust 'ave an ori&ina
c'arter.
1- t'e cor*oration was 0irect! create0 b! aw an0 its
constitution an0 b!:aws is a aw, t'en, it is &overn)ent:
owne0 an0 controe0 cor*oration. ,'ere-ore, it is not covere0
b! t'e Labor +o0e. ,'at is t'e ori<inal charter test, t'e
charter test.
7ere co)es t'e case o- .'ii**ine $ociet! -or t'e
.revention o- +ruet! to 8ni)as vs. +28 (?5% $+R8 112).
.$.+8 was create0 b! 8ct 12M? on Januar! 19, 19"?.
,i&uan& na 0i ai nin& .revention o- +ruet! to 8ni)as. ,'e
aw creatin& it 0irect! is 8ct 12M?. 9'en !ou sa! 8ct, it is not
+o))onweat' 8ct. 1t is not Re*ubic 8ct. 1t is not
.resi0entia 8ct. 1t is an 8ct, w'ic' )eans D$ +on&ress *a,
un0er t'e D$ &overn)ent.
N&anon& 3aron an& ni 'iabti sa +28/ ,'e case 0oes not
sa! so. Aut t'e case sa!s t'at +28 ca)e t'ere -or a surve!
au0it *re*arator! to t'eir au0itin& area0!, in 0etai, t'e
@nancia situation o- .$.+8. 9'!/ Aecause t'e! &ot a ot o-
)one! -ro) -orei&n sources.
9'en t'e +28 re*orte0 to .$.+8 to surve! t'e), t'is
societ! re-use0. ,'e! sai0 t'at Hwe are *rivate.I Aut t'e +28
sai0, 'ow can !ou be *rivate w'en !ou were create0 b! 8ct
12M?/ 8n0 !ou are, b! t'at 8ct, &rante0 *ower to arrest a
t'ose vioators o- ani)a aws. Bou are e)*owere0 to i)*ose
@nes.
Aut t'en .$.+8 sai0 t'at was wit'0rawn b! a ater aw,
+8 1%M Nove)ber M, 1956. Now, t'e! can no on&er arrest
an0 coect @nes. Ae-ore, t'e! cou0. Aut a-ter t'e aw, no
)ore. ,'e! are strict! *rivate.
,'en, t'e +28 sai0 'ow are !ou 0iEerent are !ou -ro)
t'e Ao! $couts o- t'e .'ii**ines, w'ic' was create0 b! aw
an0 was 0ecare0 b! t'e $u*re)e +ourt as &overn)ent/ Ao!
$couts o- t'e .'ii**ines is a &overn)ent:owne0 an0
controe0 cor*oration because it was aso create0 b! an act.
1n -act, t'e act s*eci@es t'at it is t'e oKcia !out' *ro&ra) o-
t'e &overn)ent an0 t'e nu)ber one bo! scout o- t'e
.'ii**ines is t'e *resi0ent o- t'e Re*ubic, re&ar0ess o-
w'et'er it is a )ae or a -e)ae.
$o, t'at was t'e )ain ar&u)ent.
,'e 6uestion is: 1s t'is a &overn)ent:owne0 an0
controe0 cor*oration, covere0 b! +ivi $ervice, +28, etc/
,'is is w'ere t'e $u*re)e +ourt in an en banc 0ecision,
unani)ous, sa!s t'at it is not. $u*re)e +ourt sa!s t'at t'e
ori&ina c'arter test cannot be a**ie0 to .'ii**ine $ociet! -or
t'e .revention o- +ruet! to 8ni)as.
9'! can it not be a**ie0/
8ccor0in& to t'e $u*re)e +ourt, t'e ori&ina c'arter test
'as its be&innin&s in t'e 195? +onstitution an0 ater. $ince
t'e un0er*innin&s o- t'e c'arter test were intro0uce0 on! b!
t'e 195? +onstitution an0 not earier, it -oows t'at t'e test
cannot a**! to t'e *etitioner, .'ii**ine $ociet! -or t'e
.revention o- +ruet! to 8ni)as, because it was incor*orate0
b! virtue o- 8ct 12M? Januar! 19, 19"?.
,'e $u*re)e +ourt sai0 sette0 is t'e rue t'at aws in
&enera 'ave no retroactive eEect, uness t'e contrar! is
*rovi0e0.
,'en, !ou 'ave t'is ot'er ar&u)ent t'at t'ere is rea! no
connection wit' &overn)ent wit' t'e .$.+8. ,'e! never
receive0 -un0s. ,'e! were never co))issione0 b! t'e
&overn)ent. ,'e! were never au0ite0 b! +28. ,'e! raise
t'eir own -un0s. 8n0 t'e! were never in *ractice nor
0e*utize0 b! t'e &overn)ent to i)*e)ent or en-orce aws
an0 rues a&ainst cruet! to ani)as.
P#P$% vs. $3% (#ept. *:, *>>;.
4%$2#? .$.+8 was incor*orate0 b! virtue o- 8ct No. 12M?,
enacte0 on Januar! 19, 19"?. 8t t'e ti)e o- t'e enact)ent o-
8ct No. 12M?, t'e ori&ina +or*oration Law, 8ct No. 1%?9, was
not !et in eFistence.
.$.+8 was initia! i)bue0 un0er its c'arter wit' t'e
*ower to a**re'en0 vioators o- ani)a we-are aws. 1n
a00ition, t'e *etitioner was to s'are one:'a- (1N2) o- t'e @nes
i)*ose0 an0 coecte0 t'rou&' its eEorts -or vioations o- t'e
aws reate0 t'ereto. $ubse6uent!, 'owever, t'e *ower to
)a3e arrests as we as t'e *rivie&e to retain a *ortion o- t'e
@nes coecte0 -or vioation o- ani)a:reate0 aws were
recae0 b! virtue o- +.8. No. 1%M.
2n =ec. 1, 2""5, an au0it tea) -ro) +28 visite0 t'e
oKce o- .$.+8 to con0uct an au0it surve!. ,'e *etitioner
0e)urre0 on t'e &roun0 t'at it was a *rivate entit! not un0er
t'e 4uris0iction o- +28.
.etitioner eF*aine0 t'at at'ou&' .$.+8 was create0 b!
s*ecia e&isation, t'is necessari! ca)e about because in Januar!
19"? t'ere was as !et neit'er a +or*oration Law or an! ot'er
&enera aw un0er w'ic' it )a! be or&anize0 an0 incor*orate0,
nor a $(+ w'ic' wou0 'ave *asse0 u*on its or&anization an0
incor*oration.
.etitioner ar&ues t'at it eFercises no &overn)enta -unctions,
t'at now'ere in its c'arter is it in0icate0 t'at it is a *ubic
cor*oration, t'at i- it were a &overn)ent bo0!, t'at t'ere wou0
'ave been no nee0 -or t'e $tate to &rant it taF eFe)*tions, t'at
t'e e)*o!ees o- t'e *etitioner are re&istere0 an0 covere0 b! t'e
$$$, t'at .$.+8 0oes not receive an! -or) o- @nancia assistance
-ro) t'e &overn)ent, t'at +.8. No. 1%M eEective! 0e*rive0 t'e
*etitioner o- its *owers to )a3e arrests an0 serve *rocesses as
t'ese -unctions were *ace0 in t'e 'an0s o- t'e *oice -orce, t'at
no &overn)ent a**ointee or re*resentative sits on t'e boar0 o-
trustees o- .$.+8, t'at its c'arter -ais to s'ow t'at an! act or
0ecision o- t'e *etitioner is sub4ect to t'e a**rova o- or contro b!
an! &overn)ent a&enc!, eFce*t to t'e eFtent t'at it is &overne0
b! t'e aw on *rivate cor*orations in &enera an0 t'at t'e
+o))ittee on 8ni)a 9e-are, un0er t'e 8ni)a 9e-are 8ct o-
199M, incu0es )e)bers -ro) bot' t'e *rivate an0 t'e *ubic
sectors.
,'e res*on0ents conten0 t'at since t'e *etitioner is a Hbo0!
*oiticI create0 b! virtue o- a s*ecia e&isation an0 en0owe0 wit'
a &overn)enta *ur*ose, t'en, in0ubitab!, t'e +28 )a! au0it t'e
@nancia activities o- t'e atter.
!##UE? 9'et'er or not .$.+8 6uai@es as a &overn)ent a&enc!
t'at )a! be sub4ect to au0it b! res*on0ent +28
EL'? N2, .$.+8 is not a &overn)ent a&enc!. ,'e c'arter test
cannot be a**ie0.
(ssentia!, t'e Hc'arter testI as it stan0s to0a! *rovi0es: ,'e
test to 0eter)ine w'et'er a cor*oration is &overn)ent owne0 or
controe0, or *rivate in nature is si)*e. Is it created by its own
charter for the exercise of a public function, or by incorporation
under the general corporation law? Those with special charters are
government corporations subject to its provisions, an0 its
e)*o!ees are un0er t'e 4uris0iction o- t'e +ivi $ervice
+o))ission, an0 are co)*usor! )e)bers o- t'e ;overn)ent
$ervice 1nsurance $!ste).
#ince the un0erpinnin<s of the charter test ha0 5een
intro0uce0 5) the 196: $onstitution an0 not earlier, it
follo/s that the test cannot appl) to the petitioner, w'ic'
was incor*orate0 b! virtue o- 8ct No. 12M?, enacte0 on Januar!
19, 19"?. $ette0 is t'e rue t'at aws in &enera 'ave no
retroactive eEect, uness t'e contrar! is *rovi0e0.
,'ere are a -ew eFce*tions. $tatutes can be &iven retroactive
eEect in t'e -oowin& cases: (1) w'en t'e aw itse- so eF*ress!
*rovi0esO (2) in case o- re)e0ia statutesO (5) in case o- curative
statutesO (%) in case o- aws inter*retin& ot'ersO an0 (?) in case o-
aws creatin& new ri&'ts.
1P1MQ
None o- t'e eFce*tions is *resent in
t'e instant case.
1n a e&a re&i)e w'ere t'e c'arter test 0octrine cannot be
a**ie0, t'e )ere -act t'at a cor*oration 'as been create0 b!
virtue o- a s*ecia aw 0oes not necessari! 6uai-! it as a *ubic
cor*oration.
,'ere bein& neit'er a &enera aw on t'e -or)ation an0
or&anization o- *rivate cor*orations nor a restriction on t'e
e&isature to create *rivate cor*orations b! 0irect e&isation, t'e
.'ii**ine +o))ission at t'at )o)ent in 'istor! was we wit'in
its *owers in 19"? to constitute t'e *etitioner as a *rivate 4uri0ica
entit!.
$o, t'e $u*re)e +ourt sai0 t'at t'is case is 0iEerent -ro) t'e
case o-:
VE2ER%N# 4E'ER%2!3N 34 2E P!L vs. RE7E#
(4+6 #$R% :*- @ 4e5ruar) *+, *>>-.
,'is is an en banc 0ecision. ,'is is b! +'ico:Nazario.
,'is ti)e t'e $u*re)e +ourt 0ecare0 >eterans Fe0eration as
&overn)ent.
8n0 t'e reverse 'ere is true, 'a. >eterans Fe0eration is an
a&&ru*ation o- 0iEerent veterans cubs. 8n0 t'e veterans cubs
are a -un0e0 b! *rivate -un0s. 8)ot an& )e)bers'i* -ees o- t'e
veterans. 8-ter !ou are -or)e0, !ou are -e0erate0 wit' t'e
>eterans Fe0eration.
8n0 t'e >eterans Fe0eration is aKiate0 wit' t'e =e*art)ent
o- Nationa =e-ense. 1n -act, it was *ace0 un0er 0irect su*ervision
o- t'e =N= $ecretar!. 1t 'as -unctions, in ti)e o- war, to oversee
t'e recruit)ent, etc. 1t 'as to coor0inate wit' t'e &overn)ent.
8n0 t'e $u*re)e +ourt sai0 t'at t'e >eterans Fe0eration is a
&overn)enta cor*oration. 1t is a &overn)ent:owne0 an0
controe0 cor*oration. ,'at is w'! it was &rante0 taF eFe)*tion
un0er R8 11RM.
1
3
VE2ER%N# 4E'ER%2!3N 34 2E P!L vs. RE7E#
(4+6 #$R% :*- @ 4e5ruar) *+, *>>-.
4%$2#? >eterans Fe0eration o- t'e .'ii**ines (>F.) is a
cor*orate bo0! or&anize0 un0er R8 26%", 0ate0 1M June 196",
as a)en0e0, an0 0u! re&istere0 wit' t'e $(+.
8 =N= =e*artn)ent +ircuar was issue0 an0 entite0 as
Furt'er 1)*e)entin& t'e .rovisions o- $ections 1 an0 2 o- R8
26%". ,'e sai0 rues s'a &overn an0 a**! to t'e
)ana&e)ent an0 o*erations o- t'e o- >F..
>F. receive0 a etter in-or)in& it o- t'e or0er to con0uct
#ana&e)ent 8u0it o- t'e >F.. >F. ae&e0 t'at t'e
c'aen&e0 0e*art)ent circuar cou0 not vai0! a! stan0ar0s
cassi-!in& t'e >F., an essentia! civiian or&anization, wit'in
t'e a)bit o- statutes on! a**!in& to &overn)ent entities.
.etitioner cai)s t'at it is not a *ubic nor a &overn)enta
entit! but a *rivate or&anization, an0 a0vances t'is cai) to
*rove t'at t'e issuance o- =N= =e*art)ent +ircuar No. "% is
an invai0 eFercise o- res*on0ent $ecretar!s contro an0
su*ervision.
.etitioner vi&orous! ar&ues t'at t'e >F. is a *rivate non:
&overn)ent or&anization, *ressin& on t'e -oowin&
contentions:
1. >F. 0oes not *ossess t'e ee)ents w'ic' wou0 6uai-! it
as a *ubic oKce, *articuar! t'e *ossessionN0ee&ation
o- a *ortion o- soverei&n *ower o- &overn)ent to be
eFercise0 -or t'e bene@t o- t'e *ubicO
2. >F. -un0s are not *ubic -un0sO
5. >F. -un0s co)e -ro) )e)bers'i* 0uesO
%. ,'e ease rentas raise0 -ro) t'e use o- &overn)ent
an0s reserve0 -or t'e >F. are *rivate in c'aracter an0 0o
not beon& to t'e &overn)entO
?. >F. retains its essentia c'aracter as a *rivate, civiian
-e0eration o- veterans vountari! -or)e0 b! t'e
veterans t'e)seves to attain a unit! o- eEort, *ur*ose an0
ob4ectivesO
6. ,'e 80)inistrative +o0e o- 19MR 0oes not *rovi0e t'at
t'e >F. is an attac'e0 a&enc!O an0
R. =A# 0ecare0 t'at t'e >F. is a non:&overn)ent
or&anization an0 issue0 a certi@cate t'at t'e >F. 'as not
been a 0irect reci*ient o- an! -un0s reease0 b! t'e =A#
!##UE? 9'et'er or not >F. is a *rivate cor*oration
EL'? >F. is in -act a *ubic cor*oration -or t'e -oowin&
reasons:
1. R8 26%" is entite0 H%n %ct to $reate a Pu5lic
$orporation to be Cnown as t'e >eterans Fe0eration o- t'e
.'ii**ines, =e@nin& its .owers, an0 -or 2t'er
.ur*osesIO
2. 8n! action or 0ecision o- t'e Fe0eration or o- t'e
$u*re)e +ounci s'a be sub4ect to t'e a**rova o-
t'e $ecretar! o- =e-enseO
5. >F. is re6uire0 to sub)it annua re*orts o- its
*rocee0in&s -or t'e *ast !ear to t'e .resi0ent o- t'e
.'ii**ines or to t'e $ecretar! o- Nationa =e-enseO
%. >F. was iste0 as a)on& t'e &overn)ent:owne0 an0
controe0 cor*orations t'at wi not be *rivatize0O an0
?. 1n Ang Bagong Bayani !"# Labor $arty v% &!'(L(&, t'e
$+ 'e0 in a )inute resoution t'at t'e H>F. is an a04unct o-
t'e &overn)entI.
,'e -unctions o- >F. are eFecutive -unctions 0esi&ne0 to
i)*e)ent R8 26%" but aso t'e +onstitutiona )an0ate -or
t'e $tate to *rovi0e i))e0iate an0 a0e6uate care, bene@ts
an0 ot'er -or)s o- assistance to war veterans an0 veterans o-
)iitar! ca)*ai&ns, t'eir survivin& s*ouses an0 or*'ans.
,'e -act t'at no bu0&etar! a**ro*riations 'ave been
reease0 to t'e >F. 0oes not *rove t'at it is a *rivate
cor*oration. 1- t'e =A#, 'owever, is )ista3en as to its
concusion re&ar0in& t'e nature o- >F.s incor*oration, its
*revious assertions wi not *revent -uture bu0&etar!
a**ro*riations to t'e >F.. ,'e erroneous a**ication o- t'e
aw b! *ubic oKcers 0oes not bar a subse6uent correct
a**ication o- t'e aw.
Nevert'eess, -un0s in t'e 'an0s o- t'e >F. -ro)
w'atever source are *ubic -un0s, an0 can be use0 on! -or
*ubic *ur*oses.
Neit'er is t'e civiian nature o- >F. reevant in t'is case.
,'e +onstitution 0oes not contain an! *ro'ibition, eF*ress or
i)*ie0, a&ainst t'e &rant o- contro an0Nor su*ervision to t'e
$ecretar! o- Nationa =e-ense over a civiian or&anization.
,'e 80)inistrative +o0e, b! &ivin& 0e@nitions o- t'e
various entities covere0 b! it, ac3nowe0&es t'at its
enu)eration is not eFcusive.
.etitioner >F. is a *ubic cor*oration. 8s suc', it can be
*ace0 un0er t'e contro an0 su*ervision o- t'e $ecretar! o-
Nationa =e-ense, w'o conse6uent! 'as t'e *ower to con0uct an
eFtensive )ana&e)ent au0it o- *etitioner cor*oration.
$o, rea0 t'ose 2 cases. ,'ose are t'e atest cases on w'et'er
or not !ou are covere0 b! t'e Labor +o0e.
8not'er case t'at -as un0er w'en &overn)ent is su**ose0
to be not covere0 b! t'e Labor +o0e. ,'e ot'er eFce*tion is
8rtices 1"6 to 1"R, w'en it co)es to 4oint an0 severa iabiit! o-
t'e contractor i- t'e &overn)ent is t'e contractor.
Bou are no stran&ers -ro) t'e ruin& o- t'e $u*re)e +ourt
t'at i- t'e contractor 0i0 not *a! t'e saaries o- t'e e)*o!ees,
t'e in0irect e)*o!er, even i- it is &overn)ent, is iabe 4oint! an0
severa!. ,'at 'as been t'e ruin& o- t'e $u*re)e +ourt.
7ere co)es t'e case o-:
&#!# vs. NLR$, L%N2!N& #E$UR!27
&.R. N3. 1:;-4;, 3cto5er 1:, *>>;
;$1$ contracte0 a 4anitoria service *rovi0er. ,'e! entere0
into an a&ree)ent. 1n t'e )i00e o- t'e a&ree)ent, t'ere was a
wa&e or0er. 8n0 t'e wa&e or0er *recise! *rovi0e0 t'at t'e
increase in t'e )ini)u) wa&e was -or t'e account o- t'e in0irect
e)*o!er. ,'e contractor wi not answer -or t'e increase.
$o, t'e contractor went to t'e ;$1$. 7ain na)an an&
increase/ #ao )an an& suti sa baao0. $o, t'e ;$1$ *ai0 t'e
contractor. Now, t'e contractor 0i0 not *a! t'e e)*o!ees t'e
0iEerentia.
,'e e)*o!ees o- t'e contractor sue0 bot' t'e contractor an0
;$1$, t'e in0irect e)*o!er.
;$1$ sai0 Hwe 'ave area0! *ai0. $o, we 'ave to be
0isc'ar&e0 o- t'e obi&ation. 8n0 we are &overn)ent. $o, we
s'ou0 not )a3e t'is contractor soe! iabe because t'e )one!
'as area0! been *ai0.I
9'at 0i0 t'e NLR+ sa!/
NLR+ sa!s t'at !ou are t'e on! one wit' visibe assets.
,'ere-ore, we are in a&ree)ent wit' t'e $'eriE to ev! on !our
assets.
;$1$ sa!s, 0oes it not )atter i- we are &overn)ent/
,'e $u*re)e +ourt sai0: Aoint an0 several lia5ilit) is for
the 5eneBt of the /orCers. 8n0 t'is +ourt is )an0ate0 to
u*'o0 its bene@t even i- t'e in0irect e)*o!er is &overn)ent.
&#!# vs. NLR$, L%N2!N& #E$UR!27
&.R. N3. 1:;-4;, 3cto5er 1:, *>>;
4%$2#? Lantin& $ecurit! an0 9atc')an 8&enc! (L$98) entere0
into a $ecurit! $ervice +ontract to *rovi0e securit! &uar0s to t'e
*ro*erties o- t'e ;$1$.
=urin& t'e eEectivit! o- t'e contract, L$98 re6ueste0 t'e
;$1$ -or an u*war0 a04ust)ent o- t'e contract rate in view o-
9a&e 2r0er 1 an0 2. ;$1$ a**rove0 t'e u*war0 a04ust)ent.
2n #arc' 1?, 1995, ;$1$ ter)inate0 t'e $ecurit! $ervice
+ontract wit' L$98. +o)*ainants @e0 se*arate co)*aints
a&ainst L$98 -or un0er*a!)ent o- wa&es an0 non:*a!)ent o-
abor stan0ar0 bene@ts. L$98 @e0 a ,'ir0:.art! +o)*aint
a&ainst ;$1$ -or un0er*a!)ent o- co)*ainantsS wa&es. ;$1$
ae&e0 t'at t'e ,'ir0:.art! +o)*aint states no cause o- action
a&ainst itO t'at L$98 obi&ate0 itse- in t'e $ecurit! $ervice
+ontract to be soe! iabe -or t'e en-orce)ent o- an0 co)*iance
wit' a eFistin& abor aws, rues an0 re&uationsO t'at t'e ;$1$
Aoar0 o- ,rustees a**rove0 t'e u*war0 a04ust)ent on a )ont':to:
)ont' basis.
,'e Labor 8rbiter 'e0 L$98 an0 ;$1$ 4oint! an0 severa!
iabe -or t'e *a!)ent o- co)*ainantsS )one! cai)s, *ursuant to
8rtices 1"6 an0 1"R o- t'e Labor +o0e.
,'e NLR+ 'e0 t'e ;$1$ soe! iabe -or *a!)ent o-
co)*ainantsS )one! cai)s. +8 reverte0 bac3 to t'e ruin&
'o0in& ;$1$ an0 L$98 4oint! an0 severa! iabe -or t'e *a!)ent
o- co)*ainantsS saar! 0iEerentias.
;$1$ avers t'at it cannot twice be 'e0 iabe -or
co)*ainantsS saar! 0iEerentias since it -u! *ai0 co)*ainantsS
saaries b! incor*oratin& in t'e $ecurit! $ervice +ontract t'e
saar! rate increases )an0ate0 b! 9a&e 2r0er Nos. 1 an0 2O
ot'erwise, it wou0 be un4ust enric')ent on t'e *art o-
co)*ainants an0Nor L$98 at its eF*ense. 1t sub)its t'at 8rtices
1"6 an0 1"R o- t'e Labor +o0e were not conte)*ate0 b! its
-ra)ers to cover *rinci*as or cients o- service contractors w'o
'a0 area0! *ai0 -or t'e wa&es o- t'e contractor or subcontractor.
!##UE? 9'et'er or not ;$1$ is soi0ari! iabe -or *a!)ent o-
co)*ainants:res*on0ents saar! 0iEerentias
RUL!N&? B($, ;$1$ is soi0ari! iabe.
,'e *etition is bere-t o- )erit.
8rtices 1"6 an0 1"R o- t'e Labor +o0e *rovi0e:
4
8R,. 1"6. +ontractor or subcontractor. 9'enever an
e)*o!er enters into contract wit' anot'er *erson -or t'e
*er-or)ance o- t'e -or)ers wor3, t'e e)*o!ees o- t'e
contractor an0 o- t'e atters subcontractor, i- an!, s'a be
*ai0 in accor0ance wit' t'e *rovisions o- t'is +o0e.
!n the event that the contractor or su5contractor
fails to pa) the /a<e of his eDplo)ees in accor0ance
/ith this $o0e, the eDplo)er shall 5e Aointl) an0
severall) lia5le /ith his contractor or su5contractor to
such eDplo)ees to the extent of the /orC perforDe0
un0er the contract, in the saDe Danner an0 extent
that he is lia5le to eDplo)ees 0irectl) eDplo)e0 5)
hiD.
F F F
8R,. 1"R Indirect employer. ,'e *rovisions o- t'e
i))e0iate! *rece0in& 8rtice s'a i3ewise a**! to an!
*erson, *artners'i*, association or cor*oration w'ic', not
bein& an e)*o!er, contracts wit' an in0e*en0ent contractor
-or t'e *er-or)ance o- an! wor3, tas3, 4ob or *ro4ect.
(()*'asis su**ie0.)
2he Aoint an0 several lia5ilit) of the eDplo)er or
principal /as enacte0 to ensure coDpliance /ith the
provisions of the $o0e, principall) those on statutor)
DiniDuD /a<e. ,'e contractor or subcontractor is )a0e
iabe b! virtue o- 'is or 'er status as a 0irect e)*o!er, an0
t'e *rinci*a as t'e in0irect e)*o!er o- t'e contractors
e)*o!ees. 2his lia5ilit) facilitates, if not <uarantees,
pa)Dent of the /orCersE coDpensation, thus, <ivin<
the /orCers aDple protection as Dan0ate0 5) the 19+;
$onstitution. 2his is not un0ul) 5ur0ensoDe to the
eDplo)er. #houl0 the in0irect eDplo)er 5e constraine0
to pa) the /orCers, it can recover /hatever aDount it
ha0 pai0 in accor0ance /ith the terDs of the service
contract 5et/een itself an0 the contractor.
Dn0er 8rtice 121R o- t'e +ivi +o0e, i- t'e ;$1$ s'ou0
*a! t'e )one! cai)s o- co)*ainants, it 'as t'e ri&'t to
recover -ro) L$98 w'atever a)ount it 'as *ai0 in
accor0ance wit' t'e ter)s o- t'e service contract between
t'e L$98 an0 t'e ;$1$.
Joint an0 soi0ar! iabiit! is si)*! )eant to assure
a&&rieve0 wor3ers o- i))e0iate an0 suKcient *a!)ent o-
w'at is 0ue t'e). ,'is is in ine wit' t'e *oic! o- t'e $tate to
*rotect an0 aeviate t'e *i&'t o- t'e wor3in& cass.
Ae-ore t'at, t'ere was t'is case o-:
N%2!3N%L 433' %U23R!27 vs. "%#%'% #E$UR!27
%&EN$7
4:6 #$R% ;> (*>>:. (see case 0i&ests)
Bou area0! ca)e across t'is case.
,'ere was a new wa&e or0er. ,'e new wa&e or0er sa!s
t'e increase in t'e basic is t'is )uc'. 8n0 t'is is t'e increase
)an0ate0 b! t'is aw is t'e res*onsibiit! o- t'e in0irect
e)*o!er.
#asa0a $ecurit! went to NF8, t'e beea&uere0 a&enc!,
an0 as3e0 -or t'e increase an0 t'e ro:u* cost w'ic' co)e as
a resut o- t'e increase. Cun& increasan 3a u& basic, )u:
increase )an *u0 an& i)on& 15
t'
)ont'. Dn!a, securit!
&uar0s )an ni. ,'e! wor3 56? 0a!s in a !ear )an. $o, naa
na! *re)iu) *a!, auto)atic. (ver! $un0a! is consi0ere0
!our rest 0a!. $o, !ou receive *re)iu) *a! on $un0a!. 1- )u:
overti)e 3a, )usa3a *u0 an& i)on& overti)e because it is
base0 on t'e basic.
$o, t'e securit! a&enc! sa!s, !ou are obi&ate0 not 4ust to
*a! us t'e bare )ini)u) increase )an0ate0 b! t'e aw, but
t'e necessar! increases t'at wi resut because o- t'e
increase o- t'e basic. 1t stan0s to reason accor0in& to #asa0a
$ecurit!.
,'e NLR+ sai0 #asa0a is correct. ,'e +ourt o- 8**eas
t'at it stan0s to reason.
9'en t'e! went to t'e $u*re)e +ourt, t'e $u*re)e
+ourt sa!s no. ,'e aw on! sa!s t'e increase wi be -or t'e
account o- t'e in0irect e)*o!er. 1t 0oes not sa! t'e increase
*us t'e necessar! -oowin& ro:u* increases.
,'e inter*retation t'ere-ore o- t'e wa&e iabiit! in
8rtices 1"6 an0 1"R see)s to be inter*rete0 strict!. Bou
cannot be )a0e to s'ou0er, i- !ou are an in0irect e)*o!er,
)ore t'an w'at t'e aw itera! sa!s. Not even -or
conse6uentia increases or t'e so:cae0 ro:u* costs.
,'at is a Labor Reations ter) ro:u* costs. Canan&
)a&:coective bar&ainin&, )a&:in&on 3a na ta&ai 3o u& .1"
increase 0ai!. =ii )an na .1" 0ai!. 8n& a)ot ana sa $$$,
)usa3a )an. #aba'in )an 3a u& brac3et. 1*'on )an na
ni)o to @n0 out t'e tota cost o- !our 0e)an0 :15
t'
)ont'
increases, overti)e increases. 8n0 !ou te t'e union, in trut'
an0 in -act, !our 0e)an0 costs t'is )uc'. For !ou, it is 4ust a
ver! ow increase. Bou )uti*! it wit' t'e nu)ber o- wor3ers
an0 !ou sa! t'is is t'e cost. No, t'at is not t'e cost. Bou 'ave to
incu0e t'e so:cae0 ro:u* cost. ,'at is necessari! 0one in
bar&ain.
Aut t'e $u*re)e +ourt waa )an na3aia 3un& unsa )an an0
ro:u* cost :o
9'ere wi we (#asa0a $ecurit!) &et t'at/
,'e $u*re)e +ourt sai0 t'at !ou wi &et t'at -ro) !our own
s'are o- t'e contract *rice o- t'e a&ree)ent between !ou an0
Nationa Foo0 8ut'orit!. Bou )ust 'ave so)e s'ares. ,'at is
w'ere !ou wi &et it.
$o, t'ose are t'e 2 atest cases on t'e soi0ar! iabiit! o-
8rtices 1"6 an0 1"R.
Let )e 4ust brin& to !our attention t'e 6 instances /here
/e sa) there is an ER-EE relationship create0 5) la/. ,'e
aw itse- creates t'is (R:(( reations'i*.
Re)e)ber t'at (R:(( reations'i* is a contract. 8n0 un0er
t'e rues o- contract, we -oow t'e nu)ber one o- *rinci*e, w'ic'
is t'e principle of autonoD). .arties are -ree w'et'er or not to
enter into a contract. =utan na &ani ni)o u& *usi an& i!an&
ba&oba&o, 0ii na na 3ontrata. .inu&sana! na na. Aisan *a naa
3a! 'inun&0an n&ano ni)o &i0utan u& *usi. ,'at is not vai0
because t'at is not -ree consent. 1t )ust be vountar!.
9'at 'a**ens w'en t'e &overn)ent sa!s t'ere is a contract,
an (R:(( reations'i*, bisan waa nin!o but:a/ ,'at is w'at
'a**ens in an (R:(( reations'i* en-orce0 b! aw.
1. !n0irect eDplo)er
+o)*an! 8 en&a&es #asa0a securit! to *rovi0e 4anitoria
services. ,'e *rice -or t'e 4anitoria services is co)*ute0 b!
s6uare )eters. 8t 'ow )uc' are !ou wiin& to *a! t'e 4anitoria
services/ 2nce a wee3 t'ere )ust be a t'orou&' s'a)*oo o- t'e
Toor. 2nce a )ont' t'ere )ust be a &enera ceanin& o- t'e
ceiin&, etc. Dn!a )u:bi0 an& 0iEerent a&encies base0 on t'e
s6uare )eters. 1*'on ni)o *ia 3atao i)on& i*a0aa.
,'e aw sa!s t'e i- t'e a&enc! cannot *a! t'e e)*o!ees na
i!an& &i*a0aa sa in0irect e)*o!er, t'e in0irect e)*o!er
beco)es 4oint! an0 soi0ari! (severa! ata 0a*at ) iabe. 7e
beco)es i3e t'e e)*o!er because 'e )ust *a! t'e wa&es t'at
s'ou0 'ave not been *ai0 but was not *ai0 b! t'e 0irect
e)*o!er, t'e 4anitoria a&enc!.
Re)e)ber t'is test: i- it is a bona@0e contract, )eanin&, not
abor:on! contractin&, t'en, !ou can on! be )a0e iabe as to t'e
un0er*a!)ent o- wa&es an0 bene@ts. 9aa 3a ta&ai u& (+2L8,
15
t'
)ont', overti)e *a!, *re)iu) *a!. Cana. #ao na i)on&
tuba&on.
.ero i- waa ta&ai u& )aternit! bene@ts, waa 3a na! abot ni
ana. ,'at is not wa&es an0 bene@ts. ,'at is socia e&isation.
9'en 0o !ou 3now it is bona@0e/ 9'en !ou contract out t'e
services t'at t'e $u*re)e +ourt 'as sai0 in NER! vs. NLR$ as
contractabe services. ,'ese are nee0s t'at )a! be contracte0
out. 9'at are t'ese accor0in& to )eri/
a. securit! services
b. )aintenance services
c. 4anitoria services
0. ot'er tec'nica services
,'at is:
NER! vs. NLR$ (Jul) *1, 1996. (see case 0i&ests)
,'e $u*re)e +ourt ta3es 4u0icia notice o- t'e wi0es*rea0
*ractice, bot' in t'e *ubic an0 *rivate sector o- contractin& out
securit! services, 4anitoria services, )aintenance services, an0
ot'er tec'nica services.
$u*re)e +ourt can sa! t'at because i- !ou &o to t'e $u*re)e
+ourt web*a&e, one o- t'eir *a&es is -or t'ose w'o want to 6uai-!
to bi0 -or 4anitoria services o- t'e court an0 securit! services. ,'e
re6uire)ents are t'ere. ,'e $u*re)e +ourt 'as so )an!
re6uire)ents.
,'e 6uestion is: su**ose, t'ose 4anitoria service *rovi0ers or
t'ose securit! a&encies -ai to *a! t'e &uar0s an0 t'e 4anitors t'at
are secon0e0 to t'e courts, w'o wi be sue0, 4oint! an0 severa!/
Bou s'ou0 write a *a*er on t'at.

9'at wi 'a**en w'en t'e! @e a case/ ,'e Labor 8rbiter
wi not *robab! 3now !et t'e conse6uences 'ere. 8t'ou&', it
wi be&in to 3now because w'o wi it su))on to a**ear/ +'ie-
Justice .uno, bein& t'e 'ea0 o- t'e $u*re)e +ourt/
,'e ruin& -or t'e 0iscri)ination -or a&e in t'e D$ $u*re)e
+ourt is t'e sa)e as our ruin& 'ere on securit! o- tenure. ,'e
bur0en o- *roo- t'at t'e e)*o!er 0i0 not 0iscri)inate a&ainst an
e)*o!ee b! reason o- a&e is t'e bur0en o- *roo- o- t'e e)*o!er
'i)se-, not t'e e)*o!ee.
5
Ae-ore t'at is t'e 4ob o- t'e unions, to &at'er a t'ese
0ata to *rove t'at t'ere is 0iscri)ination. Let us sa! race
a&u) 3o, ne&ro un!a waa 3o *asu0a 0in'a. 7ow 0o 1 *rove
0iscri)ination/ $tatistica. 1- in t'is cit!, its uns3ie0 wor3ers,
t'e )ar3et -or !our abor is on! oca. 1- t'e cit! 'as t'e
*o*uation *ercenta&e o- %"U bac3, 6"U non:bac3 an0 t'e
abor co)*onent o- t'is *articuar -actor! is not %":6", t'en,
area0!, t'e e)*o!er )ust *rove t'at t'is statistic is not
in0icative o- 0iscri)ination.
Aut now, -or a&e, a !ou 'ave to 0o is ae&e. #ao ni
a3on& e0a0. 1 was e)*o!e0, t'en, 1 was re)ove0. Now, it is
t'e turn o- t'e e)*o!er to *rove t'at t'ere was no
0iscri)ination w'en !ou were re)ove0. ,'at is t'e rue.
$a ato, waa *a na. 9'!/ .an&utan:on )an sa i)on&
a**ication -or), 'ow o0 are !ou/ =ate o- birt'/ Bou cannot
re6uire an! a**ication -or t'e 0ate o- birt' uness t'e a&e 'as
0irect reation to t'e 4ob.
8na sia oo3in& -or a c'i0 actor/ Dn!a ?" !ears o0 an0
above 3a/ =iscri)ination o'/ ,'at is 0irect reation to t'e
4ob. ,'en, !ou can as3 -or t'e 0ate o- birt'. Dness it is
0irect! reate0, !ou cannot.
JUL7 9
#ore or ess we 'ave covere0 a t'e (R:(( reations'i*
cases.
1 wi 4ust touc' on an i)*ortant *articuar issue: w'et'er
or not (R:(( reations'i* is a 6uestion o- -act or a 6uestion o-
aw.
Bou wi @n0 4ust as )an! cases t'at wi sa! w'ere t'e
(R:(( reations'i* is 6uestion o- -act. Facts 0eter)ine
w'et'er t'ere eFists an0 (R:(( reations'i*. 8n0 t'ere are
cases aso w'ere t'e $+ sa!s (R:(( reations'i* is a 6uestion
o- aw.
9'at is t'e correct con@&uration o- t'at *articuar
6uestion/
Rea0in& t'rou&' a t'e cases, t'e wa! to reconcie is
t'is:
!f the putative ER is onl) one, then, Dost liCel), )ou
/ill have a question of fact an0 t'e re6uire)ents t'ere -or
t'e eFistence o- t'e (R:(( reations'i*.
1- t'e re6uire)ents are 'az!, i3e seection an0 'irin&,
*a!)ent o- wa&es, *ower to 0is)iss, t'en, t'e settin& issue
wi be *ower o- contro, not its eFistence but its reservation in
t'e ver! east w'et'er or not t'e *utative e)*o!er
reserves t'e ri&'t to contro, even i- no evi0ence is &iven o- its
actua eFistence. 1- t'ere is &i))er o- evi0ence on t'at,
t'en, t'e trier o- -acts )ust 'o0 t'at t'e (R:(( reations'i*
eFists. 9'!/ Aecause t'e *resu)*tion is or t'e biase0 is -or
t'e eFistence o- t'e (R:(( reations'i*.
For *ur*oses o- t'e or0inar! )an, t'ere is &reater
*rotection i- t'ere eFists (R:(( reations'i*. ,'at is w'! t'e
aw stretc'es t'e inter*retation o- t'e % re6uire)ents *ower
to 0is)iss, seection an0 'irin&, *a!)ent o- wa&es an0 *ower
o- contro.
No w'ere in t'e re6uire)ents 0oes it sa! ren0ition o-
service.
1n t'e sa)e wa!, !ou see 'ow t'e aw o*erates on a
contract o- carria&e. 1s it inter*rete0 in -avor o- t'e co))on
carrier/ N2, t'e co))on carrier is un0er ver! 'eav!
eFaction. 1t )ust eFercise not on! t'e 0ii&ence o- a &oo0
-at'er o- a -a)i! but t'e &reatest 0e&ree o- 0ii&ence. (ven i-
t'ere is no carria&e !et, t'e contract o- carria&e area0!
eFists. (ven i- t'e *assen&er 'as area0! reac'e0 'is
0estination, -or as on& 'as not !et &one out -u!, -ree! an0
autono)ous! to c'arter 'is course an!w'ere, t'e contract o-
carria&e sti eFists.
,'at is w'! in (R:(( reations'i*s, t'e re6uire)ents are
stretc'e0 *recise! -or t'e *rotection -or or0inar! wor3er.
,'e *icture 'owever c'an&e /hen there are Dultiple
putative eDplo)ers, /hen there is contractin< an0 su5-
contractin<. 2nce !ou 'ave t'at *icture, it is not the facts
that 0eterDine. !t is the la/ that 0eterDines.
$o )uc' so, t'at even i- certain *ersonaities t'at are
eFcu0e0 b! t'e Labor +o0e i3e t'e &overn)ent, w'! is it
t'at t'e! are sti )a0e to answer -or t'e iabiities o- t'e
&overn)ent even i- t'e! are &overn)ent w'en t'ere is non:
*a!)ent or un0er*a!)ent o- wa&es/ Aecause it is no on&er
t'e -acts t'at 0eter)ine, it is t'e aw itse- t'at 0eter)ines.
2nce !ou 'ave )uti*e *utative e)*o!ers, t'en, )ost i3e!,
it is t'e aw t'at 0eter)ines. 1n t'ose cases, (R:(( reations'i* is
a 6uestion o- aw, no on&er a 6uestion o- -act.
.ease 3ee* t'at in )in0 1 cannot reca i- t'at 6uestion 'as
been as3e0 in t'e Aar (Fa)inations. Aut so)e0a!, it )i&'t be
as3e0.
9e 'ave &one t'rou&' t'e ist o- contracts cose to, a3in to,
si)iar to (R:(( reations'i*. 8n0 our )in0 is now set, b! rea0in&
t'rou&' t'ese cases, rea0in& t'rou&' t'ese -acts, &ra0ua! t'e!
buit a 'orizon. ,'at is t'e use o- rea0in& cases !ou accu)uate
a sense o- -acts store0 in a bac3&roun0.
,'en, !ou co)e t'rou&' a set o- -acts, w'et'er it )a! be in
t'e bar eFa)inations or ater on w'en !ou are *racticin& as a
aw!er. ,o )a3e sense o- t'ose -acts, !ou *ut it a&ainst t'e
'orizon.
Bou &ive t'e 0ata a c'ance to a00ress !ou, a c'ance to s*ea3
to !ou. 1n t'e en0, it is !our 'orizon
,'e @rst t'in& t'at !ou 0o is !ou as3 is t'is or is t'is not an
(R:(( reations'i*. 9'at 'orizon wi !ou use *ertinent to t'e
cases o- (R:(( reations'i*/ 1- it 0oes not )a3e sense in an! o-
t'ose cases, t'en, !ou sow! ei)inate it. 8n0 !our answer wi be
s'ort.
1- !ou 0eci0e t'at it is an (R:(( reations'i*, t'en, !ou )ove it
into anot'er 'orizon because 8rtice M2 ists a series o- (R:((
reations'i* t'at are not covere0 -or *ur*oses o- Labor $tan0ar0s
Law.
%R2!$LE +*. $overa<e. V ,'e *rovisions o- t'is tite s'a
a**! to e)*o!ees in a estabis')ents an0 un0erta3in&s
w'et'er -or *ro@t or not, but not to &overn)ent e)*o!ees,
)ana&eria e)*o!ees, @e0 *ersonne, )e)bers o- t'e -a)i! o-
t'e e)*o!er w'o are 0e*en0ent on 'i) -or su**ort, 0o)estic
'e*ers, *ersons in t'e *ersona service o- anot'er, an0 wor3ers
w'o are *ai0 b! resuts as 0eter)ine0 b! t'e $ecretar! o- Labor in
a**ro*riate re&uations.
8s use0 'erein, W)ana&eria e)*o!eesW re-er to t'ose w'ose
*ri)ar! 0ut! consists o- t'e )ana&e)ent o- t'e estabis')ent in
w'ic' t'e! are e)*o!e0 or o- a 0e*art)ent or sub0ivision
t'ereo-, an0 to ot'er oKcers or )e)bers o- t'e )ana&eria staE.
WFie0 *ersonneW s'a re-er to non:a&ricutura e)*o!ees
w'o re&uar! *er-or) t'eir 0uties awa! -ro) t'e *rinci*a *ace o-
business or branc' oKce o- t'e e)*o!er an0 w'ose actua 'ours
o- wor3 in t'e @e0 cannot be 0eter)ine0 wit' reasonabe
certaint!.
9'at are t'ose/
1. ,'e @rst in t'e enu)eration o- t'e Labor +o0e, 8rtice M2 is
not an eFce*tion but an eFcusion t'at is <overnDent
eDplo)ees.
,'e! are not incu0e0 because t'ere is no (R:(( reations'i*
between t'e &overn)ent an0 t'e &overn)ent ((. ,'e! are not
covere0.
Aut t'en a&ain, because o- certain *rovisions, t'e! are
covere0.
9'at are so)e *rovisions t'at necessitate t'e covera&e o-
&overn)ent/
a. +ase o- o- Philippine #ociet) for the Prevention of
$ruelt) to %niDals (P#$P%. vs. $3% ?5% $+R8 112
(2""R)
Dn0er 8rtice 1L:A o- t'e +onstitution, &overn)ent
((s covers a t'ose t'at are en&a&e0 b! t'e nationa
&overn)ent, an! o- its sub0ivisions, a&encies,
instru)entaities, incu0in& &overn)ent:owne0 an0
controe0 cor*orations wit' ori&ina c'arter.
Canan& )&a in:ana, ti)an:an na ni!o. For)ua na
na. 1t s'ou0 be one o- !our stan0ar0 *'ases.
,'e i)*ication o- 8rtice 1L:A o- t'e +onstitution is
t'at i- !ou 'ave an ori&ina c'arter, !ou are &overn)ent.
Bou are eFcu0e0 -ro) t'e Labor +o0e. ,'at is t'e
i)*ication. ,'at is 3nown as t'e ori<inal charter test.
,'e $u*re)e +ourt sai0 t'at t'e .'ii**ines $ociet!
-or .revention o- +ruet! to 8ni)as, even i- it 'as an
ori&ina c'arter because it was 0irect! create0 b! aw
(8ct 12M?, 0ate0 Januar! 19, 19"?), it is sti *rivate
because t'e ori<inal charter test cannot 5e <iven
retroactive eFect. 8t t'e ti)e it was create0 b! aw,
t'ere was no +onstitution : no 195? +onstitution, no 19R5
+onstitution, no +onstitution o- 19MR.
Aesi0es t'at, it rea! -unctions as a *rivate entit!. 1t
'a0 *rivate -un0in&. 1ts a0)inistration o- -un0s was
*rivate. 1ts a**ication o- *rivate -un0s was not
&overn)enta in nature.
6
,'is is 0iEerentiate0 -ro) 9o) #couts of the
Philippines vs. NLR$ because t'e Ao! $couts was
area0! create0 b! an ori&ina c'arter be-ore t'e
195? +onstitution. 1ts a0)inistration 'as awa!s
been 0irect! in3e0 wit' t'e &overn)ent because it
'as awa!s been use0 in t'e *ast as a 0irect ar) -or
inTuencin& t'e !out', w'ic' in t'e +onstitution is
su**ose0 to be one o- t'e *iars o- t'e -uture o- our
societ!. 1n a t'e various sc'oos, bo! scoutin& is a
s*eci@c *ro&ra) -or t'e -or)ation o- t'e !out'. .us
t'e *roviso t'at t'e nu)ber one bo! scout is no ess
t'an t'e .resi0ent o- t'e .'ii**ines, re&ar0ess o-
'is or 'er &en0er. 9'en t'e aw 0oes not
0iEerentiate, neit'er s'ou0 we 0istin&uis'. ,'at is a
ver! i)*ortant rue in $tatutor! +onstruction.
Dn0er t'e Ao! $cout Law, t'e *resi0ent,
re&ar0ess o- t'e &en0er, is t'e nu)ber one bo!
scout.
937 #$3U2# 34 2E P!L!PP!NE# vs. NLR$
19- #$R% 1;-
4%$2#? 1n 19M%, t'e $ecretar!:;enera o- A$. issue0 @ve (?)
s*ecia or0ers ($2) -or t'e res*on0ents w'o were a ran3:an0:
@e e)*o!ees.
,'e $2 )an0ates t'at t'e! wi be trans-erre0 to A$.
+a)* in 8suncion, =avao 0e Norte -ro) t'eir ca)* in
#a3iin&. Res*on0ents averre0 t'at suc' or0er is *re4u0icia
not on! to t'eir econo)ic stabiit! but aso to t'eir -a)iies.
D*on t'eir @in& o- a co)*aint, t'e! were subse6uent!
ter)inate0. ,'e L8 0is)isse0 t'e co)*aint -or ac3 o-
4uris0iction. NLR+ reverse0 t'e 0ecision or0erin& A$. to
reinstate res*on0ents wit' -u bac3 wa&es.
A$. conten0s t'at it is un0er t'e +$ Law because it is an
or&anization create0 un0er &A *** +an Act to &reate a $ublic
&orporation to be ,nown as B-$) wit' obi&ation towar0s
nation:bui0in&.
!##UE? 9'o 'as 4uris0iction/
EL'? +$+ 'as 4uris0iction. 1t is a ;2++ wit' ori&ina c'arter.
+onsi0erin& its c'aracter an0 t'e *ur*ose o- its -unction, t'e
statutor! 0esi&nation o- A$. as a H*ubic cor*orationI, an0 t'e
substantia *artici*ation o- t'e &overn)ent in t'e seection o-
its )e)bers, t'ere is no 0oubt t'at it -as un0er +$ Law.
(La3as 8tenista transcri*tion )
$o, t'is is one instance (.$.+8 case) w'ere t'e eFcusion
in 8rtice M2 is 0isre&ar0e0.
b. $econ0 instance is soli0ar) lia5ilit) in case of
contractin< an0 su5-contractin<. 1- t'e
&overn)ent is invove0 as in0irect e)*o!er an0
t'ere is un0er*a!)ent or non:*a!)ent o- wa&es, t'e
&overn)ent re)ains soi0ari! iabe.
c. 9'at is t'e t'ir0/ 9e wi 4u)* to Labor Reations.
1n t'e case o- %ssociation of $ourt %ppeals
EDplo)ees (%$%E. vs. La<uesDa, t'e $u*re)e
+ourt sai0 t'at t'e =e*art)ent o- Labor can &o to
t'e +ourt o- 8**eas an0 su*ervise t'e certi@cation
-or eection o- t'e +ourt o- 8**eas e)*o!ees
wit'out vioatin& t'e in0e*en0ence )an0ate0 o- t'e
se*arate branc'es o- t'e &overn)ent : )eanin& t'e
eFecutive is co:e6ua, se*arate an0 0istinct an0
in0e*en0ent -ro) t'e 4u0iciar!. ,'ere is no vioation
i- t'e =e*art)ent o- Labor &oes over an0 su*ervises.
1n t'at wa!, t'ere is aso no vioation o- t'e
eFcusion o- t'e &overn)ent e)*o!ees i- t'e union
o- &overn)ent e)*o!ees is re6uire0 b! (Fecutive
2r0er 1M" to be re&istere0 bot' in t'e +ivi $ervice
an0 in t'e =e*art)ent o- Labor. ,'at is t'e
re6uire)ent o- (2 1M".
%$%E vs. $%LLEJ%
2"5 $+R8 ?96
4%$2# : 8+8( )eans 8ssociation o- +ourt o- 8**eas
()*o!ees. ,'e! are &overn)ent e)*o!ees w'o -or)e0 a
union. $ubse6uent!, anot'er union was -or)e0 na)e0 as
+8+8(. ,'e! @e0 a co)*aint a&ainst t'e =2L( on t'e
&roun0 t'at t'e =2L( cannot su*ervise t'e eection because
t'at wi be tanta)ount to t'e eFecutive branc' inter-erin&
wit' t'e 4u0iciar!.
!##UE : 9'et'er or not t'e Aureau o- Labor Reations 'as
4uris0iction to 'an0e 0is*utes a)on& associations o-
e)*o!ees wor3in& -or t'e 4u0iciar!
EL': Dn0er E3 1+>, t'e aw &overnin& certi@cation eections in
t'e +8, it is t'e -unction o- t'e +ourt to re&uate a activities o-
t'e 4u0icia *ersonne. ,'is incu0es t'e $u*re)e +ourt, to t'e en0
t'at t'e in0e*en0ence, eEectiveness an0 inte&rit! o- t'e Ju0iciar!
is not i)*aire0 or co)*ro)ise0. +ai)s -or 'i&'er co)*ensation
or i)*rove0 -aciities )ust t'ere-ore be viewe0 in ter)s o- @sca
autono)!. Neit'er t'e =2L( nor t'e +$+, nor an! ot'er a&enc!,
'ave t'e 4uris0iction to a04u0icate suc' cai)s. Dti)ate!, a
unresove0 e&a 6uestions are 0eci0e0 b! t'e +ourt. o/ever, in
)uc' t'e sa)e wa! as t'e +$+ con0ucts co)*etitive
eFa)inations to &rant t'e re6uisite ei&ibiit! to court *ersonne,
t'e =2L( )ust 'an0e t'e certi@cation *rocess in t'e +8,
consi0erin& it eF*ertise, )ac'iner! an0 eF*erience in t'is 3in0 o-
activit!. ,'ere-ore, t'e ALR )ust 0o t'e 4ob. ,'ere is no
trans&ression o- t'e 0octrine o- se*aration o- *owers.
(La3as 8tenista ,ranscri*tion )
Ri&'t t'en an0 t'ere, !ou 'ave 5 eFce*tions to t'e &enera
rue t'at &overn)ent e)*o!ees are eFcu0e0 -ro) t'e *urview o-
t'e Labor +o0e.
2. ,'e secon0 &rou* o- wor3ers is Dana<erial eDplo)ees.
#ana&eria e)*o!ees are o- two 3in0s:
a. #ana&eria e)*o!ees *ro*er t'ose w'ose *ri)ar! 0ut!
consists o- t'e )ana&e)ent o- t'e estabis')ent or a
0e*art)ent or a sub0ivision t'ereo-
b. #ana&eria e)*o!ees because t'e! are )e)bers o- t'e
)ana&eria staE
,'e 0eci0e0 case t'at is *ertinent to t'is cassi@cation -or
*ur*oses o- Labor $tan0ar0 is National #u<ar ReBnin< vs.
NLR$ 22" $+R8 %?2 (1995).
N%2!3N%L #U&%R RE4!NER!E# vs. NLR$
4%$2#: ,'e 0iEerent wor3ers invove0 in t'is case are wor3ers o-
t'e -oowin& *ositions: tec'nica assistant to t'e re@ner!
o*erations )ana&er, s'i-t su&ar ware'ouse su*ervisor, senior
@nancia bu0&et ana!st, &enera accountant cost accountant, s'i-t
boier su*ervisor, s'i-t o*erations c'e)ist, s'i-t *rocess su*ervisor
etc. ,'e co)*an! un0erwent a 4ob evauation *ro&ra) an0 t'e
sai0 *ositions were *articuar! reco))en0e0 to be se*arate!
cate&orize0 as )e)bers o- t'e )ana&eria staE. 8s a
conse6uence, t'eir basic *a! was raise0 b! ?"U. 8s soon as t'e!
were )a0e into a se*arate cate&or! o- wor3ers, t'e! -or)e0 a
union 0istinct -ro) t'ose o- t'e ran3 an0 @e e)*o!ees. ,'e!,
t'en, entere0 into a +A8 w'ic' no on&er *rovi0e0 -or overti)e
*a!, *re)iu) *a! an0 'oi0a! *a!.
2 !ears ater, t'e! as3e0 -ro) t'e Labor 8rbiter -or t'e
reinstate)ent o- t'e bene@ts w'ic' t'e! once en4o!e0. ,'eir
ar&u)ent was t'at t'e! are not )ana&eria e)*o!ees un0er t'e
0e@nition or 8rt. 212()) o- t'e Labor +o0e an0 t'at is *recise!
w'! t'e! can -or) a union an0 t'at t'ere-ore, t'e! are entite0 to
t'e bene@ts w'ic' t'e! receive0 in t'e *ast since t'e! ri*ene0
into a ri&'t. ,'e Labor 8rbiter rue0 in t'eir -avor. =ecision
aKr)e0 b! t'e NLR+.
EL'? ,'e! are )e)bers o- t'e )ana&eria staE since t'e! are
'o0in& non:ine *ositions w'ic' are connecte0 to t'e ine
'ierarc'! o- t'e co)*an!. ,'e 0e@nition o- )ana&eria e)*o!ees
in 8rtice M2 o- t'e Labor +o0e s'ou0 be a**ie0 instea0 o- 8rtice
212()) since t'e issue 'ere is 'ours o- wor3 an0 ot'er bene@ts.
,'e $+ rue0 t'at w'en t'e! are en4o!in& suc' bene@ts, t'e!
were entite0 to it. 7owever, since t'ere was a 4ob evauation
w'erein t'e! were *ro)ote0 into a 0iEerent cate&or!, i.e.
)ana&eria e)*o!ees, t'e! are no on&er entite0 to it. ,'e $+
sai0: The test more rationale for this rule from a long practice
re.uires an indubitable showing that an employer agreed to
continue giving the bene/ts ,nowing fully well that the employees
are not covered by the law re.uiring payment thereof% ,'e
e)*o!er 0i0 not continue to *a! t'e *re)iu)s on ti)e *a! t'e
)o)ent t'e! were recassi@e0. 1t cou0 'ave been 0iEerent i- it
continue0 an0 t'en it cease0. Aut since it 0i0 not continue, t'e
e)*o!er is no &uit! o- 0i)inution o- bene@ts.
1- !ou rea0 !our co))entaries, 'ow 0i0 it 0istin&uis'
)ana&eria e)*o!ees -ro) ran3 an0 @e/
1- t'e! use Labor Reations cases, c'ances are, t'eir
eF*anation is ess t'an accurate. 9'!/ Aecause t'e )ana&eria
e)*o!ee in Labor Reations is not t'e sa)e as t'e )ana&eria
e)*o!ee in Labor $tan0ar0s. ,'e )ana&eria e)*o!ee in Labor
$tan0ar0s is broa0er. ,'e )ana&eria e)*o!ee in Aoo3 ?, Labor
Reations, is s)aer co)*are0 to Labor $tan0ar0s.
(Fa)*e: $u*ervisors in Labor Reations 'ave a i)ite0
eFercise o- t'e ri&'t to se-:or&anization. ,'e! are not rea!
7
cassi@e0 as )ana&eria e)*o!ees because i- !ou are
cassi@e0 as )ana&eria e)*o!ees in Labor Reations, !ou
'ave absoute! no ri&'t to eFercise se-:or&anization.
Aut w'en !ou cross, )ana&eria e)*o!ees un0er Labor
$tan0ar0s are broa0er. $u*ervisors are area0! )ana&eria
e)*o!ees. ,'e! are not entite0 to overti)e. 9'at is )ore,
so)ebo0! w'o 0oes not ostensib! 0o an! )ana&eria act
because 'e 0oes not 'ave an! to su*ervise, 'e is sti
consi0ere0 as )ana&eria, an0 t'ere-ore, not entite0 to
overti)e, *re)iu) *a! an0 ot'er bene@ts.
For instance, i- !ou are a cost accountant, !ou 'ave no
su*ervisors. +ost accountin& now, uni3e in t'e *ast, can be
0one wit' t'e use o- a .+. Ae-ore !ou wou0 nee0 @in& cer3s
because !our recor0s are a 3e*t in 'ar0co*!. Now, because
!ou are 4ust 'oo3e0 u* to t'e s!ste), it 4ust nee0s )ost
*robab! a +.8 w'o wi 'an0e cost accountin& -or a ar&e
cor*oration an0 t'e! 'ave a wa! o- retrievin& costs. 8t t'e
en0 o- t'e 0a!, !ou 3now !our costs.
1s t'at cost accountant, w'o 'as no contact at a wit'
an!bo0!, a ran3:an0:@e e)*o!ee/ ,'e answer is N2,
because 'e is eF*icit! e-t out un0er 8rtice M2 )e)bers o-
t'e )ana&eria staE.
9'! is 'e incu0e0/ Aecause 'e 0eas wit' )ana&eria
in-or)ation. #ost!, t'is )ana&eria in-or)ation is Labor
Reations reate0, )ana&eria reate0. 1t *uts 'i) in a 0iKcut
situation o- 'avin& to co)*ute -or 'is ran3:an0:@e bene@t
w'en 'e is in -act awa!s in association wit' )ana&in&.
,'e reason w'! )ana&e)ent ((s in Labor $tan0ar0s is
because t'e! are not 'ire0 -or t'e 'ours o- wor3 t'at t'e!
ren0er. 9'! are t'e! 'ire0/ ,'e! are 'ire0 -or t'eir s*ecia
trainin&, to *ro0uce resuts, to set:u* &oas, *ursue t'e &oas
an0 )onitor t'e *ursuit o- &oas. ,i)e is not 0irect! reate0.
=oes it )ean t'at t'e )ana&er 0oes not 'ave to s'ow:u*
in t'e oKce/ N2. Aut t'at is not t'e essence o- 'is *ur*ose
o- bein& en&a&e0. 7is *ur*ose is not ti)e reate0, but resuts
reate0, &oa reate0, eF*ertise.
,'at is w'! t'eir saaries are not co)*ute0 on a ti)e
basis.
5. 9e &o to t'ir0 &rou* o- ((s t'at are eFcu0e0. ,'ere is
(R:(( reations'i* but it is eFcu0e0. 9'o are t'ese/ 4iel0
personnel.
9'at 0o !ou 'ave to re)e)ber about @e0 *ersonne/ 5
t'in&s.
a. ,'e wor0 @e0 is an!t'in& but a&ricutura.
b. Re&uar! *er-or) t'eir 0uties outsi0e t'e oKces o-
t'e (R
c. ,'eir t!*e o- wor3, t'eir 'ours o- wor3 cannot be
0eter)ine0 wit' reasonabe certaint!.
2ne o- t'e cases t'at brin&s t'is about is t'e case o-
"ER$!'%R 4!#!N& $3RP3R%2!3N vs. NLR$, 4. %&%3
29R $+R8 %%" (199M). 1t is a case o- ((s in a 0ee*:sea @s'in&
boat. =oes it )ean t'at it 'as to be counte0 t'e entire ti)e
t'at 'e is out at sea as wor3in& ti)e because it is outsi0e t'e
*ace o- oKce o- t'e (R/
,'e answer is N2. Fis'er)en e)*o!e0 b! *etitioner
'ave no c'oice but to re)ain on boar0 its vesse. 8t'ou&'
t'e! *er-or)e0 non:a&ricutura wor3 awa! -ro) t'e
*etitioners business oKces, t'e -act re)ains t'at t'rou&'out
t'e 0uration o- t'eir wor3, t'e! are un0er t'e eEective contro
an0 su*ervision o- t'e *etitioner t'rou&' t'e vesses *atron or
)aster, as t'e NLR+ correct! 'e0.
1t is not auto)atic t'ere-ore t'at 4ust because !ou wor3
outsi0e t'e *ace o- oKce t'at !ou are a @e0 *ersonne.
9'at is )ore i)*ortant is t'at !our 'ours o- wor3 cannot be
0eter)ine0 wit' reasonabe certaint!. 9'! can it not be
0eter)ine0/ Not because t'ere is ac3 o- su*ervision or
su*ervision is 0iKcut, but because o- t'e nature o- t'eir
wor3. Aisan unsan& tuto3 ni)o sa i!an& traba'o, 0i &!u0 3a
)a3a0eter)ine u& *ia i!an& oras *a&traba'o.
"ER$!'%R 4!#!N& $3RP vs. NLR$
4%$2#? .rivate res*on0ent 'a0 been e)*o!e0 as a
Hbo0e&eroI or s'i*s 6uarter)aster. 7e ae&e0 t'at 'e 'a0
been sic3 an0 t'us aowe0 to &o on eave wit'out *a! -or one
)ont' but t'at w'en 'e re*orte0 to wor3, 'e was to0 to
co)e bac3 anot'er ti)e as 'e cou0 not be reinstate0
i))e0iate!. ,'erea-ter, *etitioner re-use0 to &ive 'i) wor3.
.rivate res*on0ent as3e0 -or a certi@cate o- e)*o!)ent -ro)
*etitioner. .etitioner re-use0 to issue t'e certi@cate uness 'e
sub)itte0 'is resi&nation. $ince *rivate res*on0ent re-use0
to sub)it suc' etter uness 'e was &iven se*aration *a!,
*etitioner *revente0 'i) -ro) enterin& t'e *re)ises.
.etitioner ae&e0 t'at it was *rivate res*on0ent w'o actua!
aban0one0 'is wor3.
,'e Labor 8rbiter or0ere0 t'e res*on0ent to reinstate
co)*ainant wit' bac3 wa&es, *a! 'i) 'is 15t' )ont' *a! an0
incentive eave *a! -or 199".
2n a**ea, t'e NLR+ 0is)isse0 *etitioners cai) t'at it
cannot be 'e0 iabe -or service incentive eave *a! b! @s'er)en
in its e)*o! as t'e atter su**ose0! are H@e0 *ersonneI an0
t'us not entite0 to suc' *a! un0er t'e Labor +o0e.
!##UE? 9'et'er or not t'e @s'in& crew )e)bers cannot be
cassi@e0 as @e0 *ersonne un0er 8rtice M2 o- t'e Labor +o0e.
EL'? ,'e *etition 'as no )erit.
H4iel0 personnelI s'a re-er to non:a&ricutura e)*o!ees
w'o re&uar! *er-or) t'eir 0uties awa! -ro) t'e *rinci*a *ace o-
business or branc' oKce o- t'e e)*o!er an0 w'ose actua 'ours
o- wor3 in t'e @e0 cannot be 0eter)ine0 wit' reasonabe
certaint!.
1n 0eci0in& w'et'er or not an e)*o!ees actua wor3in&
'ours in t'e @e0 can be 0eter)ine0 wit' reasonabe certaint!,
6uer! )ust be )a0e as to w'et'er or not suc' e)*o!ees ti)e
an0 *er-or)ance is constant! su*ervise0 b! t'e e)*o!er.
1n t'is case, 0urin& t'e entire course o- t'eir @s'in& vo!a&e,
@s'er)en e)*o!e0 b! *etitioner 'ave no c'oice but to re)ain on
boar0 its vesse. 8t'ou&' t'e! *er-or) non:a&ricutura wor3
awa! -ro) *etitioners business oKces, t'e -act re)ains t'at
t'rou&'out t'e 0uration o- t'eir wor3 t'e! are un0er t'e eEective
contro an0 su*ervision o- *etitioner t'rou&' t'e vesses *atron or
)aster as t'e NLR+ correct! 'e0.
(La3as 8tenista ,ranscri*tion )
,'e cassic eFa)*e o- a @e0 *ersonne is t'e saes)an. $a
i!an& *a&*a)ai&!a, a!u'on na na i!an& custo)er. #an&aon sia
sa &awas. .a3an:on sa &awas. $i&e sia stor!a, 'o*in& t'at in t'e
en0 'e wi &et a 4ob or0er.
1t wou0 be un-air to t'e (R to count t'e entire ti)e as
wor3in& ti)e.
1n ot'er wor0s, t'e ver! nature o- 'is -unctions ren0er it
i)*ossibe to 0eter)ine wit' certaint! 'is 'ours o- wor3.
.ease re)e)ber t'at w'en it co)es to @e0 *ersonne. Not
4ust because t'e! are outsi0e.
,'at is t'e reason w'! t'e! are eFe)*te0. 1t wou0 be un-air
to t'e (R i- t'eir 'ours o- wor3 wou0 be counte0 because -ran3!
s*ea3in&, it cannot be 0eter)ine0 wit' reasonabe certaint!.
%. 'oDestic helpers
?. Persons in the personal service of another
,'ese two are si)iar. Dnsa )an& 0i*erensi!a anin& 0u'a/
'oDestics serve -or t'e *ersona co)-ort o- a 'ouse'o0.
8n0 t'e! incu0e t'e services o- a -a)i! 0river.
9'at is t'e si&ni@cance o- t'e incusion o- a -a)i! 0river/
,'e incusion o- t'e -a)i! 0river is si&ni@cant to te us t'at it is
not t'e activit! t'at )a3es 'i) 0o)estic. 1t is t'e e)*o!er.
=rivin& is an in0ustria tas3. 8n0 !et, i- !ou are a -a)i! 0river,
!ou are not an in0ustria wor3er. Bou are 0o)estic. 9'at )a3es
!ou a 0o)estic/ Not t'e c'ore t'at !ou 0o but !our (R. 1- it is a
'ouse'o0, !ou are not an in0ustria wor3er i- !ou are a 0river. Bou
are not covere0 b! t'e in0ustria )ini)u) wa&e rate. Bou are
covere0 b! t'e )ini)u) wa&e rates o- 0o)estics, w'ic' is . M""
in 1
st
cass cities, . 6?" in 1
st
cass )unici*aities an0 ot'er *aces
. ?"". #ao na ba rate 3arun sa =avao/ 9a na! )ai0 na )a3u'a
u& .M""
,ec'nica!, a t'e )ai0s s'ou0 be area0! be re&istere0 wit'
t'e $$$ because t'e )o)ent t'eir wa&e reac'es . 1,""", t'e!
)ust be co)*usori! covere0.
,'e 0iEerence between *ersons in t'e *ersona service o-
anot'er an0 0o)estic is t'at 0o)estics are 'ouse'o0. 1- !ou 0o
not 'ave a 'ouse'o0, t'en, it is *ersona service.
,'e! are eFe)*te0 -ro) Labor $tan0ar0s aw because t'e
t!*e o- en&a&e)ent is ante:0ate0, on& be-ore t'e 1n0ustria
Revoution. Aut t'ose consi0ere0 in t'e *ersona service o-
anot'er are t'e vaet.
1- !ou are not )arrie0, !ou cannot 'ave 0o)estics. Aut !ou
can 'ave *ersons in t'e *ersona service.
1n t'e case o- %PEG "!N!N& vs. NLR$ 199 $+R8 2RM (1991),
t'ese c'a)ber )ai0s w'o were servin& t'e co)*an! 'ouse t'at
acco))o0ate0 Ja*anese eF*atriates wor3in& -or 8*eF #inin&, t'e
)ai0 t'ere t'at were ceanin& t'e 'ouse, coo3in&, 0oin& t'e
aun0r! o- t'e Ja*anese, w'en t'e! were *ai0 0o)estic rates, t'e
$u*re)e +ourt sai0 t'at is vioation.
9'at were t'e! 0oin&/ ,'e! were 0oin& 0o)estic c'ores.
#ani'i&, )a&uto, )a&aba. 8re t'e! not associate0 wit'
8
0o)estic c'ores/ .e0estrian an&ua&e 0ictates t'at i- t'e! 0o
t'at, )ai0 sia.
Aut in aw, t'at is not w'at is 0eter)inative o- 0o)estics.
1t is t'e e)*o!ers. ,'e $u*re)e +ourt sa!s t'at t'e! s'ou0
not be *ai0 0o)estic rates. ,'e! s'ou0 be *ai0 co))ercia
or in0ustria )ini)u) wa&e rates.
%PEG "!N!N& $3"P%N7, !N$. vs. N%2!3N%L L%93R
REL%2!3N# $3""!##!3N an0 #!N$L!2!$% $%N'!'3
4%$2#?
+an0i0o was e)*o!e0 8*eF #inin& to *er-or) aun0r!
services at its staE 'ouse ocate0 at #aco, =avao 0e Norte.
2n =ece)ber 1M, 19MR, w'ie s'e was atten0in& to 'er
assi&ne0 tas3 an0 s'e was 'an&in& 'er aun0r!, s'e
acci0enta! si**e0 an0 'it 'er bac3 on a stone.
8s a resut o- t'e acci0ent s'e was not abe to continue
wit' 'er wor3. $'e was *er)itte0 to &o on eave -or
)e0ication. ,'e )ana&er o- 8*eF oEere0 'er t'e a)ount o-
.?,"""."" to *ersua0e 'er to 6uit 'er 4ob, but s'e re-use0 t'e
oEer an0 *re-erre0 to return to wor3. .etitioner 0i0 not aow
'er to return to wor3 an0 0is)isse0 'er.
+an0i0o @e0 a re6uest -or assistance wit' t'e =2L(. ,'e
Labor 8rbiter ren0ere0 a 0ecision in -avor o- +an0i0o, w'ic'
was aKr)e0 b! t'e NLR+.
!##UE? 9'et'er or not a 'ouse'e*er in t'e staE 'ouses o-
an in0ustria co)*an! a 0o)estic 'e*er or a re&uar
e)*o!ee o- t'e sai0 @r).
RUL!N&?
,'e ter) S0oDestic servantS an0 s'a re-er to an!
*erson, w'et'er )ae or -e)ae, w'o ren0ers services in an0
about t'e e)*o!erSs 'o)e an0 w'ic' services are usua!
necessar! or 0esirabe -or t'e )aintenance an0 en4o!)ent
t'ereo-, an0 )inisters eFcusive! to t'e *ersona co)-ort an0
en4o!)ent o- t'e e)*o!erSs -a)i!
,'e -ore&oin& 0e@nition cear! conte)*ates suc'
'ouse'e*er or 0o)estic servant w'o is e)*o!e0 in t'e
e)*o!erSs 'o)e to )inister eFcusive! to t'e *ersona
co)-ort an0 en4o!)ent o- t'e e)*o!erSs -a)i!. $uc'
0e@nition covers -a)i! 0rivers, 0o)estic servants, aun0r!
wo)en, !a!as, &ar0eners, 'ousebo!s an0 ot'er si)iar
'ouse'e*s.
,'e 0e@nition cannot be inter*rete0 to incu0e 'ouse'e*
or aun0r! wo)en wor3in& in staE'ouses o- a co)*an!, i3e
*etitioner w'o atten0s to t'e nee0s o- t'e co)*an!Ss &uest
an0 ot'er *ersons avaiin& o- sai0 -aciities. A! t'e sa)e
to3en, it cannot be consi0ere0 to eFten0 to t'e 0river,
'ousebo!, or &ar0ener eFcusive! wor3in& in t'e co)*an!,
t'e staE'ouses an0 its *re)ises. ,'e! )a! not be consi0ere0
as wit'in t'e )eanin& o- a W'ouse'e*erW or W0o)estic
servantW as above:0e@ne0 b! aw.
,'e )ere -act t'at t'e 'ouse'e*er or 0o)estic servant
is wor3in& wit'in t'e *re)ises o- t'e business o- t'e e)*o!er
an0 in reation to or in connection wit' its business, as in its
staE'ouses -or its &uest or even -or its oKcers an0
e)*o!ees, warrants t'e concusion t'at suc' 'ouse'e*er or
0o)estic servant is an0 s'ou0 be consi0ere0 as a re&uar
e)*o!ee o- t'e e)*o!er an0 not as a )ere -a)i!
'ouse'e*er or 0o)estic servant. (+'rist #a! 8n0oana
)
.ease re)e)ber: i- a 0o)estic is )a0e to *er-or)
in0ustria or co))ercia tas3, an& )ai0 ni)o sa baa! in&nan
ni)o na a0to sa tin0a'an 3a! ni absent ton& aton& tin0era. 1-
t'e! 0o t'at, !ou 'ave assi&ne0 'er to 0o co))ercia tas3.
,'at trans-or)s 'er. ,'at )a3es 'er into a co))ercia
wor3er. 8n0 s'e ceases to receive 0o)estic rates. $'e )ust
receive co))ercia rates.
.ease 3ee* in )in0 t'at t'e trans-or)ation is on! one
wa!. Cun& an& i)on& tin0era in&nan ni)o a0to 0i0to 3a!
na3u!a*an an& )ai0, wa na! )ubanta! sa bata. .a&:a0to sa
baa!, na'i)o ba si!a u& 0o)estic/ N2, s'e continues to be
a co))ercia wor3er. Bou cannot ower 'er saar!. 7er saar!
on! &oes u*. ,'e trans-or)ation on! wor3s one wa!.
1- !ou are as3e0 a 6uestion, w'at are t'e wor3in& 'ours o-
a 0o)estic/ ,'e! are *rovi0e0 in t'e +ivi +o0e, 8rtice 169?.
,'e wor3in& 'ours are not )ore t'an 1" 'ours.
%R2!$LE 1-9:. 7ouse 'e*ers s'a not be re6uire0 to wor3
)ore t'an ten 'ours a 0a!. (ver! 'ouse 'e*er s'a be
aowe0 -our 0a!sS vacation eac' )ont', wit' *a!.
Re)e)ber t'e R!&2# 34 3U#E ELPER#H'3"E#2!$#:
*% They have a right to an original contract of not more than
0 years%
8-ter 2 !ears ana, t'e! can eave. ,'at is 8rtice
1%2.
%R2!$LE 14*. $ontract of 'oDestic service. V ,'e
ori&ina contract o- =o)estic service s'a not ast -or )ore
t'an two (2) !ears but it )a! be renewe0 -or suc' *erio0s as
)a! be a&ree0 u*on b! t'e *arties.
2. They have a right to the minimum wage of domestics,
w'ic' is now *rovi0e0 un0er 8rtice 1%5. . M"", . 6?", .
?"".
,'e 0eter)ination o- t'e wa&e is t'e t!*e o- cit! or
)unici*ait!.
%R2!$LE 146. "iniDuD /a<e. I (a) 7ouse'e*ers
s'a be *ai0 t'e -oowin& )ini)u) wa&e rates:
(1) (i&'t 'un0re0 *esos (.M""."") a )ont' -or 'ouse'e*ers
in #ania, Xuezon, .asa! an0 +aoocan cities an0 t'e
)unici*aities o- #a3ati, $an Juan, #an0au!on&, #untinu*a,
Navotas, #aabon, .araYa6ue, Las .iYas, .asi& an0 #ari3ina in
Riza .rovince.
(2) $iF 'un0re0 @-t! *esos (.6?"."") a )ont' -or t'ose in
ot'er c'artere0 cities an0 @rst:cass )unici*aitiesO an0
(5) Five 'un0re0 @-t! *esos (.??"."") a )ont' -or t'ose in
ot'er )unici*aities.
.rovi0e0, ,'at t'e e)*o!ers s'a review t'e e)*o!)ent
contracts o- t'eir 'ouse'e*ers ever! t'ree (5) !ears wit' t'e
en0 in view o- i)*rovin& t'e ter)s an0 con0itions t'ereo-.
.rovi0e0, -urt'er, ,'at t'ose 'ouse'e*ers w'o are receivin&
at east 2ne t'ousan0 *esos (.1,"""."") s'a be covere0 b!
t'e $ocia $ecurit! $!ste) ($$$) an0 be entite0 to a t'e
bene@ts *rovi0e0 t'ereun0er.
5. The right to an opportunity for at least an elementary
education if below *1%
Naa &ani )ai0 na 3u'aon beow 1M, waa *a
na'u)an u& &ra0e sc'oo, w'at is !our 0ut!/
.aes3wea'on ni)o si!a/ N2, !our 0ut! is to &iven t'e)
an o**ortunit! -or an ee)entar! e0ucation.
$o, 0a0:on ni)o si!a sa &ra0e sc'oo. 1enro ni)o
si!a 0in'a. .are*orton ni)o 0i0to. .ero *a&tan:aw ni!a
si!a *ina3atas:an 0i0to. Dn!a an& teac'er si&e in&on sa
i!a sit 0own t'ere, bisan na&in&3o0 na si!a, a', 0ii na
si!a )ubai3 ,'is )eans !ou 'ave co)*ie0 wit' !our
obi&ation to *rovi0e an o**ortunit! -or an ee)entar!
e0ucation.
9'at is t'e !oun&est a&e -or )ai0/ 1? covere0 sia
ana. Boun&er t'an 1? is ie&a.
%. The right to just and human treatment% The right to an
indemnity for an unjust termination.
9'at is t'e in0e)nit! or 0a)a&es -or un4ust ter)ination/
+o)*ensation area0! incurre0 *us 1?:0a! *a!,
accor0in& to 8rtice 1%9 o- t'e Labor +o0e.
%R2!$LE 149. !n0eDnit) for unAust terDination of
services. V 1- t'e *erio0 o- 'ouse'o0 service is @Fe0, neit'er
t'e e)*o!er nor t'e 'ouse'e*er )a! ter)inate t'e contract
be-ore t'e eF*iration o- t'e ter), eFce*t -or a 4ust cause. 1-
t'e 'ouse'e*er is un4ust! 0is)isse0, 'e or s'e s'a be *ai0
t'e co)*ensation area0! earne0 *us t'at -or @-teen (1?)
0a!s b! wa! o- in0e)nit!.
1- t'e 'ouse'e*er eaves wit'out 4usti@abe reason, 'e or
s'e s'a -or-eit an! un*ai0 saar! 0ue 'i) or 'er not
eFcee0in& @-teen (1?) 0a!s.
?. The right to board, lodging and medical attendance free
of charge un0er 8rtice 1%M.
Ri&'t na ni!a na *a3an:on, *atu&on 0ira. ,'at is w'!
0o)estics cannot -or) a union. Ca! &i3an sia )a&stri3e,
3a0a &abii, )u*aui &i'a*on sa i)o 0i'a &i'a*on )atuo&.
7ioan tin&ai )o $tri3e 0oes not sever (R:(( reations'i*,
is it not/
%R2!$LE 14+. 9oar0, lo0<in< an0 De0ical
atten0ance. V ,'e e)*o!er s'a -urnis' t'e 'ouse'e*er
-ree o- c'ar&e suitabe an0 sanitar! ivin& 6uarters as we as
a0e6uate -oo0 an0 )e0ica atten0ance.
6. The right to leave the service on 23day notice if
engagement is without a term un0er 8rtice 1?".
9
%R2!$LE 1:>. #ervice of terDination notice.
V 1- t'e 0uration o- t'e 'ouse'o0 service is not
0eter)ine0 eit'er in sti*uation or b! t'e nature o- t'e
service, t'e e)*o!er or t'e 'ouse'e*er )a! &ive notice
to *ut an en0 to t'e reations'i* @ve (?) 0a!s be-ore t'e
inten0e0 ter)ination o- t'e service
4% The right to employment certi/cation
,'e in0ustria or co))ercia wor3er 0oes not 'ave
t'e ri&'t to 0e)an0 -ro) 'er (R certi@cation as to t'e
nu)ber o- !ears t'at 'e was wor3in&.
,'e )ain 0o)estic ri&'t is t'e e)*o!)ent
certi@cation. >er! -ew 3now t'at.
JUL7 1>, *>>+
&roups of /orCers that are exclu0e0 or exeDpte0 froD
La5or #tan0ar0s 5eneBts as provi0e0 in the La5or
$o0e?
1. ;overn)ent e)*o!ees
2. #ana&eria e)*o!ees
5. Fie0 *ersonne
%. =o)estic 'e*ers
?. .ersons in t'e *ersona service o- anot'er
(13a:R
t'
na an& *a3iao wor3ers. Aase0 sa ectures ni!a be-ore
)a! isa na 'in0i *a na)ention in cass : )e)bers o- t'e
-a)i! o- t'e e)*o!er w'o are 0e*en0ent on 'i) -or su**ort
so, eto an& i3a:6
t'
.. i t'in3 )
R. PaCiao /orCers
.a3iao is a tec'nica ter) in Labor, it is not 4ust a wor0 in
t'e vernacuar. 1t is an oKcia an0 tec'nica ter)s -oun0 in
t'e Labor +o0e. Bou )ust &et t'e s*ein& o- t'e Labor +o0e
H*a3iaoI.
,'e on! *robe) is, in t'e Fair Labor $tan0ar0s 8ct o- t'e
Dnite0 $tates (-ro) w'ic' our Labor $tan0ar0s aws were
0rawn), *a3iao wor3ers or wor3ers *ai0 are o- two 3in0s:
a. wor3er *ai0 on a *iece:rate basis
b. wor3er *ai0 on a tas3 basis.
.a3iao sa ato, *iece rate, *a3iao. 9'en !ou are *ai0 on a
tas3 basis, *a3iao &i'a*on. =ii 3aa!o 0iEerentiate0. 2ur
ter)inoo&! covers a )utitu0e o- con0itions.
Aut in t'e Fair Labor $tan0ar0s 8ct o- t'e D$, t'ere are
0iEerentiations.
9'! 0o 1 *oint t'at out/ Aecause o- t'e ac3 o-
0iEerentiation, t'e $u*re)e +ourt itse- co))itte0 a bun0er.
,'e! )ista3e a certain *a3iao arran&e)ent. ,'e error o- t'e
$u*re)e +ourt is t'at t'e! are actua! a)en0in& t'e aw. 1t
is not 4u0icia e&isation, b! t'e -act t'at t'e! su**!
so)et'in& w'ic' is not t'ere, t'ere-ore, t'e! are e&isatin&.
Aut t'e! are rea! contravenin&.
1n R3#%R!3 9R3# vs. 3PLE (164 #$R% 1;* @ 19+4.,
it sa!s, t'is +ourt rues t'at taiors an0 si)iar wor3ers 'ire0
in t'e taiorin& 0e*art)ent o- a 0e*art)ent store, at'ou&'
*ai0 wee3! wa&es on *iece:wor3 basis, are e)*o!ees *ai0
on a *iece:rate basis, not in0e*en0ent contractors. =ii *a na
3aa!o na &rabe na sa!o*.
,'en, it sa!s, accor0in&!, as re&uar wor3ers *ai0 on
*iece:rate basis, *etitioners are not entite0 to overti)e *a!,
'oi0a! *a!, *re)iu) *a!, rest 0a! *a! an0 service
incentives.
+orrect *a na<
R3#%R!3 9R32ER#, !N$ vs. 3PLE, NLR$, et al
(Jul) 61, 19+4.
4%$2#? .rivate res*on0ents are taiors, *ressers, stitc'ers
an0 si)iar wor3ers 'ire0 b! t'e *etitioner in its taiorin&
0e*art)ent. $o)e 'a0 wor3e0 t'ere since 1969 unti t'eir
se*aration on Januar! 2, 19RM. For t'eir services, t'e! were
*ai0 wee3! wa&es on *iece:wor3 basis, )inus t'e
wit''o0in& taF *er A1R rues. ,'e! were re&istere0 wit' t'e
$$$ as e)*o!ees o- *etitioner an0 *re)iu)s were 0e0ucte0
-ro) t'eir wa&es. ,'e! were )e)bers o- t'e abor union
w'ic' 'as a +A8 wit' t'e co)*an!. ,'e! were re6uire0 to
re*ort -or wor3 -ro) #on0a! t'rou&' $atur0a! an0 to sta! in
t'e taiorin& s'o* -or no ess t'an M 'ours a 0a!, uness no 4ob
or0er was &iven t'e) a-ter waitin& 2 to 5 'ours, in w'ic'
case, t'e! )a! eave an0 )a! co)e in t'e a-ternoon. ,'eir
atten0ance was recor0e0 t'rou&' a bun0! coc3 4ust i3e t'e
ot'er e)*o!ees o- *etitioner. .rivate res*on0ents @e0 a
co)*aint -or vioation o- .= M?1 (15
t'
)ont' *a!) an0 .=
?2?, as a)en0e0 b! .= 1125 (()er&enc! Livin& 8owance)
a&ainst *etitioner.
.etitioner conten0s t'at t'e e)*o!ees are eFcu0e0 -ro) t'e
covera&e o- .= ?2?, M?1 an0 1125 because o- t'e nature o- t'eir
e)*o!)ent, t'ere bein& Sno @Fe0 ti)e wit' re&ar0s to entr! an0
eFitS an0 no @Fe0 nu)ber o- 0a!s o- wor3, wit' res*ect to sai0
e)*o!ees.
2n a**ea, t'e #inistr! o- Labor eFa)ine0 care-u! t'e
0ecrees an0 @n0 absoute! no in0ication t'erein t'at t'e
e)*o!ees are in0ee0 eFcu0e0. Nor are t'e rues i)*e)entin&
t'e 0ecrees su**ortive o- t'e *etitionerSs contention.
$ection 2 o- t'e rues i)*e)entin& .= ?2? *rovi0es: S,'e
=ecree s'a a**! to a e)*o!ees o- covere0 e)*o!ers,
re&ar0ess o- t'eir *osition, 0esi&nation or e)*o!)ent status,
an0 irres*ective o- t'e )et'o0 b! w'ic' t'eir wa&es are *ai0,
incu0in& te)*orar!, casua, *robationar!, an0 seasona
e)*o!ees an0 wor3ers.S 8n0 $ection 5, o- t'e rues i)*e)entin&
.= M?1 *rovi0es t'at Sa e)*o!ees o- covere0 e)*o!ers s'a be
entite0 to bene@ts *rovi0e0 un0er t'e =ecree . . . re&ar0ess o-
t'eir *osition, 0esi&nation or e)*o!)ent status, an0 irres*ective
o- t'e )et'o0 b! w'ic' t'eir wa&es are *ai0.S $ection 2 o- t'e
sa)e rues eF*icit! *rovi0es t'at t'e rues a**! to Swor3ers *ai0
on *iece:rate basisS or St'ose w'o are *ai0 a stan0ar0 a)ount -or
ever! *iece or unit o- wor3 *ro0uce0 t'at is )ore or ess re&uar!
re*icate0, wit'out re&ar0 to t'e ti)e s*ent in *ro0ucin& t'e
sa)e.
!##UE? 9'et'er or not an e)*o!er:e)*o!ee reations'i* eFists
between t'e *etitioner an0 t'e *rivate res*on0ents.
RUL!N&? .etition is 0evoi0 o- )erit. ,'e seection an0
'irin& o- *rivate res*on0ents were 0one b! t'e *etitioner, t'rou&'
t'e )aster cutter o- its taiorin& 0e*art)ent w'o was a re&uar
e)*o!ee. .rivate res*on0ents receive0 t'eir wee3! wa&es -ro)
*etitioner on *iece:wor3 basis, w'ic' is wit'in t'e sco*e an0
)eanin& o- t'e ter) Hwa&eI as 0e@ne0 un0er 8rtice 9R(-) o- t'e
New Labor +o0e. .etitioner 'a0 t'e *ower to 0is)iss *rivate
res*on0ents. .rivate res*on0ents con0uct in t'e *er-or)ance o-
t'eir wor3 was controe0 b! *etitioner an0 t'e! were aowe0 to
re&ister wit' t'e $$$ as e)*o!ees o- *etitioner.
,'e $+ aKr)e0 t'e ruin& o- t'e #inistr! o- Labor.
Aut t'en, in L%93R $3N&RE## of the P!L vs. NLR$ (*9>
#$R% :>9 @ 199+., it sa!s t'e *iece:rate e)*o!ees are entite0
to ni&'t:s'i-t 0iEerentia, 'oi0a! *a!, service incentive eave,
*re)iu) *a! an0 15
t'
)ont' *a! in accor0ance wit' t'e rues to
i)*e)ent t'e Labor +o0e.
L%93R $3N&RE## vs. NLR$ ("a) *1, 199+.
4%$2#? .etitioners were ran3:an0:@e e)*o!ees o- res*on0ent
()*ire Foo0 .ro0ucts, w'ic' 'ire0 t'e) on various 0ates.
.etitioners @e0 a co)*aint -or ie&a oc3out an0Nor 0is)issa an0
un0er*a!)ent o- wa&es.
+o)*ainantsS a0)itte0 t'at t'e! are *iece wor3ers or *ai0 on
a *a3iao basis i.e. a certain a)ount -or ever! t'ousan0 *ieces o-
c'eese curs or ot'er *ro0ucts re*ac3e0. ,'e on! i)itation -or
*iece wor3ers or *a3iao wor3ers is t'at t'e! s'ou0 receive
co)*ensation no ess t'an t'e )ini)u) wa&e -or an M:'our wor3.
,'e Labor 8rbiter rue0 t'at t'ere was no un0er *a!)ent o-
wa&es. ,'is was aKr)e0 b! t'e NLR+.
!##UE? 9'et'er or not *etitioners s'ou0 be reinstate0 -ro) t'e
0ate o- t'eir 0is)issa u* to t'e ti)e o- t'eir reinstate)ent, wit'
bac3wa&es, statutor! bene@ts, 0a)a&es an0 attorne!Ss -ees.
EL'?
,'e -aiure to wor3 -or one 0a!, w'ic' resute0 in t'e s*oia&e
o- c'eese curs 0oes not a)ount to aban0on)ent o- wor3. 1n -act
two (2) 0a!s a-ter t'e re*orte0 aban0on)ent o- wor3 or on
Januar! 25, 1991, *etitioners @e0 a co)*aint -or, a)on& ot'ers,
un-air abor *ractice, ie&a oc3out an0Nor ie&a 0is)issa. 2ne
cou0 not *ossib! aban0on 'is wor3 an0 s'ort! t'erea-ter
vi&orous! *ursue 'is co)*aint -or ie&a 0is)issa.
.etitioners are t'ere-ore entite0 to reinstate)ent wit' -u
bac3 wa&es. Nevert'eess, t'e recor0s 0iscose t'at ta3in& into
account t'e nu)ber o- e)*o!ees invove0, t'e en&t' o- ti)e
t'at 'as a*se0 since t'eir 0is)issa, an0 t'e *erce*tibe
resent)ent an0 en)it! between *etitioners an0 *rivate
res*on0ents w'ic' necessari! straine0 t'eir reations'i*,
reinstate)ent wou0 be i)*ractica an0 'ar0! *ro)otive o- t'e
best interests o- t'e *arties. 1n ieu o- reinstate)ent t'en,
se*aration *a! at t'e rate o- one )ont' -or ever! !ear o- service
is in or0er.
.etitioners, as *iece:rate wor3ers 'avin& been *ai0 b! t'e
*iece, t'ere is nee0 to 0eter)ine t'e var!in& 0e&rees o-
*ro0uction an0 0a!s wor3e0 b! eac' wor3er.
10
8s to t'e ot'er bene@ts, na)e!, 'oi0a! *a!, *re)iu)
*a!, 15t' )ont' *a! an0 service incentive eave w'ic' t'e
abor arbiter -aie0 to rue on but w'ic' *etitioners *ra!e0 -or
in t'eir co)*aint, we 'o0 t'at *etitioners are so entite0 to
t'ese bene@ts. ,'ree -actors ea0 us to concu0e t'at
*etitioners, at'ou&' *iece:rate wor3ers, were re&uar
e)*o!ees o- *rivate res*on0ents:
(1) as to t'e nature o- *etitionersS tas3s, t'eir 4ob o- re*ac3in&
snac3 -oo0 was necessar! or 0esirabe in t'e usua business o-
*rivate res*on0ents, w'o were en&a&e0 in t'e )anu-acture
an0 sein& o- suc' -oo0 *ro0uctsO (2) *etitioners wor3e0 -or
*rivate res*on0ents t'rou&'out t'e !ear, t'eir e)*o!)ent
not 'avin& been 0e*en0ent on a s*eci@c *ro4ect or seasonO
an0
(5) t'e en&t' o- ti)e t'at *etitioners wor3e0 -or *rivate
res*on0ents. ,'us, w'ie *etitionersS )o0e o-
co)*ensation was on a W*er *iece basis,W t'e status an0
nature o- t'eir e)*o!)ent was t'at o- re&uar e)*o!ees.
,'e Rues 1)*e)entin& t'e Labor +o0e eFcu0e certain
e)*o!ees -ro) receivin& bene@ts suc' as ni&'tti)e *a!,
'oi0a! *a!, service incentive eave an0 15t' )ont' *a!, inter
aia, W@e0 *ersonne an0 ot'er e)*o!ees w'ose ti)e an0
*er-or)ance is unsu*ervise0 b! t'e e)*o!er, incu0in& t'ose
w'o are en&a&e0 on tas3 or contract basis, *ure! co))ission
basis, or t'ose w'o are *ai0 a @Fe0 a)ount -or *er-or)in&
wor3 irres*ective o- t'e ti)e consu)e0 in t'e *er-or)ance
t'ereo-.W .ain!, *etitioners as *iece:rate wor3ers 0o not -a
wit'in t'is &rou*. Not on! 0i0 *etitioners abor un0er t'e
contro o- *rivate res*on0ents as t'eir e)*o!er, i3ewise 0i0
*etitioners toi t'rou&'out t'e !ear wit' t'e -u@)ent o- t'eir
6uota as su**ose0 basis -or co)*ensation. Furt'er, in $ection
M(b), Rue 1>, Aoo3 111, *iece wor3ers are s*eci@ca!
)entione0 as bein& entite0 to 'oi0a! *a!.
1n a00ition, t'e Revise0 ;ui0eines on t'e 1)*e)entation
o- t'e 15t' #ont' .a! Law, in view o- t'e )o0i@cations to ..=.
No. M?1 b! #e)oran0u) 2r0er No. 2M, cear! eFcu0e t'e
e)*o!er o- *iece rate wor3ers -ro) t'ose eFe)*te0 -ro)
*a!in& 15t' )ont' *a!.
8ccor0in& to $ec 2(e), Rue 1, Aoo3 111 o- t'e 1)*e)entin&
Rues, wor3ers w'o are *ai0 b! resuts incu0in& t'ose w'o
are *ai0 on *iece:wor3, ta3a!, *a3iao, or tas3 basis, i- t'eir
out*ut rates are in accor0ance wit' t'e stan0ar0s *rescribe0
un0er $ec. M, Rue >11, Aoo3 111, o- t'ese re&uations, or w'ere
suc' rates 'ave been @Fe0 b! t'e $ecretar! o- Labor in
accor0ance wit' t'e a-oresai0 section, are not entite0 to
receive overti)e *a!. 7ere, *rivate res*on0ents 0i0 not ae&e
a0'erence to t'e stan0ar0s set -ort' in $ec. M nor wit' t'e
rates *rescribe0 b! t'e $ecretar! o- Labor. 8s suc',
*etitioners are be!on0 t'e a)bit o- eFe)*te0 *ersons an0
are t'ere-ore entite0 to overti)e *a!.
9'en !ou na)e bene@ts an0 !et 8rtice M2 eF*icit!
sin&es out *a3iao wor3ers as not incu0e0 in t'ose bene@ts, is
t'at 4u0icia e&isation/ ,'at is 4u0icia booboo.
,'e on! correct t'in& wit' t'e $u*re)e +ourt is
sc'oars'i* because t'e )o)ent t'e! )a3e a 0ecision an0 it
*asse0 )otion -or reconsi0eration, it is @Fe0. 8s Justice
+ar0oso sai0, t'e $u*re)e +ourt is in-aibe because it is
@na. 1t is not @na because it is in-aibe. 8n0 t'e -aibiit! o-
t'e $u*re)e +ourt )ust be a constant worr! o- t'e 4u0icia
s!ste). ,'e *a!ers in t'e 4u0icia s!ste) cannot voice out
t'e s'ortco)in& o- t'e $u*re)e +ourt i- t'e! 'ave an interest
to *ursue. 9'o can 0o t'at/ ,'e aca0e)icians. 8n0 !ou 0o
t'at, b! s'owin& it.
8rtice M2 sa!s *a3iao wor3ers are not incu0e0 in t'ese
bene@ts overti)e. ,'en, 'ere co)es =avi0e an0 'e sa!s
t'at t'ese are *iece:rate wor3ers an0 as suc', t'e! are
entite0 to ni&'t s'i-t 0iEerentia, 'oi0a! *a!, service
incentive eave, *re)iu) *a! an0 15
t'
)ont' *a!. 2- w'at 'e
sa!s, on! one is correct 15
t'
)ont' *a!. 15
t'
)ont' *a! is
correct because it is not in t'e Labor +o0e. 8n0 15
t'
)ont'
*a! is s*ecia.
,'ere is one t!*e o- *a3iao wor3er t'at is entite0 to 15
t'
)ont' *a! t'at is t'e *iece:rate *a3iao wor3er. ,'e *a3iao
wor3er t'at is *ai0 b! resuts is not entite0 to 15
t'
)ont' *a!.
1 a) ta3in& o- .= M?1 an0 t'e -urt'er &ui0eines issue0 b!
+orazon 86uino.
$a!o* ni.
Jh) are paCiao /orCers taCen out1
,'e! are ta3en out because t'e a)ount o- t'eir *a! is
reate0 not to t'e ti)e t'at t'e! *ut in but to t'e in0ustr! t'at
t'e! 0evote.
1- !ou are a *a3iao wor3er, !ou are not a ti)e wor3er.
,'e basis o- !our *a! is not ti)e. ,'e basis o- !our *a! is
out*ut. 1- it is *iece:rate, its uni-or) out*ut. ,'at is w'! it is a
uni-or) rate *er *iece because *are:*are'o )an na.
Jhat happens if )ou are pai0 piece rate an0 )ou are <iven
hours1
Bou re*ort at M. Bou 'ave brea3 ti)e at 12 -or 1 'our. ,'en,
!ou are 0is)isse0 at ?. 9'at 'a**ens/
Dn0er Fair Labor $tan0ar0s 8ct o- t'e Dnite0 $tates, !ou 'ave
beco)e a ti)e wor3er. 8n0 !ou )ust be *ai0 at east t'e
)ini)u) wa&e, re&ar0ess o- t'e a)ount !ou @nis'.
#uppose )ou are <iven tiDe an0 )ou are also <iven quota
M to 12, 1 to ? M 'ours. Cina'an&an )u'u)an 3a u& 2? na
3ao. D& 0ii &ani, 0ii 3a swe0o'an. 1t cannot be 0one. ,'e 6uota
is 4ust a )atter o- 0isci*ine. 1t is 4ust a )atter o- issue o-
su*ervision. Aut it cannot be t'e basis -or re)uneration. 9'!/
Aecause !ou are now &iven ti)e.
Jhat is the 5ias of the La5or $o0e1
,'e bias o- t'e Labor +o0e is !our ti)e. 1- t'ere is 0oubt, !ou
are ti)e0. 1- !ou are ti)e0, !ou are entite0 to at east t'e
)ini)u) wa&e.
1- !ou are *ai0 *iece rate an0 !ou 'ave a sus*icion t'at t'e
*iece rate s!ste) is use0 to circu)vent t'e )ini)u) wa&e, w'at
is !our re)e0!/
Dn0er t'e Labor +o0e, !ou cannot @e strai&'t wit' t'e Labor
8rbiter -or un0er*a!)ent or non*a!)ent o- wa&es. Bou cannot 0o
t'at. Bour re)e0! is @rst 0eter)ine w'et'er or not t'e *iece:rate
s!ste) 'as been eF*oite0 to circu)vent t'e )ini)u) wa&e.
2n a veri@e0 *etition, !ou &o to t'e Re&iona =irector o- Labor
an0 as3 -or a tiDe an0 Dotion stu0). ,'at is !our re)e0!.
8n0 t'en, a-ter )a3in& a ti)e an0 )otion stu0!, because
t'ere are &ui0eines, t'e *iece rate is not su**ose0 to be base0 on
t'e -astest wor3er nor s'ou0 it be base0 on t'e sowest wor3er,
but on t'e avera&e wor3er.
1- a-ter ti)e an0 )otion stu0!, t'e *iece rate t'at is &iven to
!ou en0s u* wit' !ou &ettin& ess t'an t'e )ini)u) wa&e -or an
avera&e *er-or)ance o- M 'ours, t'en, !ou can &o to t'e Labor
8rbiter an0 as3 -or un0er*a!)ent o- wa&es.
,'is ti)e !ou 'ave a bac3in& -ro) t'e =e*art)ent o- Labor
ti)e an0 )otion stu0!.
Cee* t'at in )in0.
* 8in0s of PaCiao JorCers?
1. .iece:rate
2. .a!)ent b! resuts
Re)e)ber, t'e *rovision on wa&es is not covere0 b! ,ite 5.
1t is in an entire! 0iEerent tite. 8s to w'en !ou are *ai0, w'at
!ou are *ai0, 'ow o-ten !ou are *ai0, or w'ere !ou are *ai0, t'at
is a 0iEerent *rovision.
#uin&on 3a, 3a! *iece:rate )an 3o, 3a0a )a'u)an na3o,
i'a* na ta 0a!on. Aa!ri 3o 0a!on, 0i )an 3a'a 3o ti)e wor3er.
No, !ou cannot 0o t'at.
Bou are sti boun0 b! t'e &enera rue t'at w'en it co)es to
wa&es, *a!)ent )a! be )a0e, twice a )ont', on! at intervas
not on&er t'an 16 0a!s. ,'at is a se*arate section in t'e Labor
+o0e.
,'at is w'! t'e wa&es con0itions are se*arate0.
#uin&on 3a, na'u)an na)an na3o *a&se)ento. #a&'uat *a
0i ai 3o u& two wee3s una 3o ba!ran/ Naa 3a! 2 3a assistant.
;isabot ni)o na waa ni! oras 'a. Aasta &ana'an )a&traba'o,
)a&traba'o. 9a &!u0 nin!o *a'ua!i. 2 )o 3a a0aw, *ui *ui.
Na'u)an nin!o 5 ra 3a a0aw.
+an t'e e)*o!er sa! t'at since wa&es are &oin& to be *ai0
once ever! two wee3s at intervas not )ore t'an 16 0a!s, stea0!
ra )o 0i 'a/ ,'e! cannot 0o t'at. 9'!/ Aecause o- anot'er
-actor. ,'e en&a&e)ent is casua in nature an0 t'e en&a&e)ent
'as ter)inate0. ,'ere-ore, t'ere )ust be a sette)ent because it
'as ter)inate0. 1t is not o*en:en0e0.
9'en it is o*en:en0e0, t'e -act (/) t'at *a!)ent is )a0e in
two wee3s, in no case on&er t'an 16 0a!s, t'an can be -oowe0.
Aut i- t'e en&a&e)ent is casua in nature, t'en, at t'e
co)*etion, t'ere )ust be *a!)ent.
Jhat happens if )ou enter into an a<reeDent that there is
retention/
Retention nor)a!, i- !ou contract to construct so)et'in&.
#a&*a3ura 3a in:ani an0 0esi&n sa 3ura, ise)ento an&
-oun0ation, 5 3a 'oowboc3 an& ubon&, is*eci-! tanan, )ao ni
an& )ateriaes. Dn!a, t'is s'ou0 be @nis'e0 in 5" 0a!s. Dn!a,
retention 1"U o- t'e contracte0 *rice.
.a&3a'u)an ana, ba!ran ni)o si!a un!a )uretain 3a u& 1"U.
8-ter 5" 0a!s, una *a ni)o *ui'i an& 1"U *a& nasatis-! na ni)o
na wa! nai3i.
11
Dnsa )an na/ ,'at is in0e*en0ent contractin&. 9a na!
abor ana. ,'at is area0! in0e*en0ent contractin&. 2nce
t'ere are retentions, )aterias, an0 Labor +o0e abor ra )an
na. $u0an na &ani u& ain, 0i na na Labor +o0e but
in0e*en0ent contractin&.
$o, !ou 'ave to be cear about w'at t'e e&a! si&ni@cant
-acts are.
1- it is not uni-or), t'en it is not *iece rate. 1t is tas3
basis.
For instance, !ou are tra0er an0 !ou 0rive a ri& (2" -t
van). 8n& )a&:&u!o0 ana 3a! *ri)e )over. 8ctua!, *ri)e
)over a**ies to ;o0 on!
Now, -ro) =avao to an! *oint in #in0anao, 0river 3a an0
*ai0 on a *er tri* basis. Dnsa )an 3a/ .iece rate or tas3
basis/ ,'e troube is t'e tri* is not stan0ar0. Naa )an na
sia! tari*a sa tri* nia: =avao to 1i&an, )ao ni an& tari*a.
=avao to ;en $an, )ao ni an& tari*a. ,'e! are *ai0 b!
resuts. ,'at is not *iece rate.
Dn!a ta&aan 3a u& *robe) nabut'an si!a u& tire,
3abuan& si!a *an&ita )e3ani3o, natuo& sa iao) sa truc3. 1s
'e entite0 to overti)e/ 7ow can 'e be entite0 to overti)e
w'en 'e is area0! eFe)*te0 un0er 8rtice M2/ 7e cannot be
*ai0 overti)e. 7e is not *ai0 on an 'our! basis. 7e is not a
ti)e wor3er. 7e is a *a!)ent b! resuts wor3er. 7e is a
*a3iao wor3er, base0 on t'e resuts.
,'at is ver! cear 'a because t'ere are no )aterias
invove0 in 0rivin&. 1t is 4ust strict! )ore on t'e *art o- t'e
0river.
M. Retail an0 #ervice Esta5lishDent /ith not Dore
than : eDplo)ees as t'e! are eFe)*te0 to ni&'t s'i-t
0iEerentia
,'at is -ro) t'e rues i)*e)entin& t'e Labor +o0e, Aoo3
111, Rue 2, $ection 1.
,'is *articuar eFe)*tion is ai)e0 at sari:sari stores,
w'ic' o*ens ver! ear! in t'e )ornin& un!a &abii na sia
&asara.
Aut t'e! )ust not be )ore t'an ? e)*o!ees.
8 retail esta5lishDent is one t'at ses &oo0s or
co))o0ities not -or t'e *ur*ose o- resae but -or *ur*oses o-
use an0Nor consu)*tion. ,'at is a retai.
8 service esta5lishDent is one t'at 0is*enses services
-or t'e satis-action o- a *articuar nee0 o- t'e custo)er.
9'en !ou oEer -or service, it is -or t'e satis-action o- a
custo)er.
$o)eti)e a&o, t'e &reat $enator Jose 9. =io3no was
)a0e t'e eFa)iner o- +ivi Law. 2ne o- t'e 6uestions 'e
as3e0 in +ivi Law is t'is: 'ere is a custo)er o- a restaurant.
7e or0ere0 o!ster sou*. ,'e o!ster sou* was serve0 on 'is
tabe stea)in& 'ot. 7e oo3e0 at t'e o!ster sou* an0 it
oo3e0 invitin&. 7e strai&'t awa! 0rove into t'e o!ster sou*.
,'ere was a &i))er at t'e botto) o- t'e bow. 7e scoo* it
u* an0 saw t'at it was a *ear. 8s 'e was about to *ic3 t'e
*ear wit' 'is t'u)b an0 -ore@n&er, t'e 'ea0 waiter ta**e0
'i) on 'is s'ou0er. 7e sai0 t'at beon&s to us. ,'at is not
!ours.
;iba!ran na3o ni. 83o ni. =ii na i)o, sa restaurant na.
$o, na&ais sia. ,'e 6uestion: w'o 'as t'e better ri&'t to t'e
*ear/
9'en =io3no was as3e0 w'at is t'e answer, =io3no sai0
it a 0e*en0s w'et'er t'e restaurant is aso a ta3e:out
restaurant. 1- it is a ta3e:out restaurant, it is not on! a
service estabis')ent since it caters to !our nutritiona nee0
not to )ention t'e nee0 o- !our *aette -or &oo0 tastin& -oo0
to !our satis-action. 1- !ou can bu! or0ers an0 'ave it
*ac3a&e0 an0 brou&'t out, Tes' an0 bones o- t'e -rie0
c'ic3en to&et'er, t'at )eans t'at it is a retai estabis')ent
aso, not 4ust a service estabis')ent.
$o, i- it is aso a retai estabis')ent, t'en !ou 'ave a
ri&'t to t'e une0ibe t'in& suc' as t'e *ear. ,'at is t'e
reasonin& o- =io3no.
8 beaut! *aror is a service estabis')ent. #usobra na
&ani sa ? 3abuo3 an& )a&*tu:i0 sa 3uot, )a&*uto sa tass,
sobra &ani na ?, not covere0.
8 ba3er! is a retai estabis')ent. 8 barber s'o* is a
service estabis')ent. 9'at 'a**ens i- t'ere are )ore t'an ?
barbers t'ere/ (waa! answer .. 'e'e .. )
,'ose are t'e *robe)atic associate0 wit' t'is *articuar
section
9. ealth personnel of cities of at least 1" population or
esta5lishDents that are /ei<hte0 (1. to 5e at least 1>> 5e0
capacit)
(ven i- t'e *o*uation is ess t'an 1#, i- t'e 'os*ita !ou are
wor3in& -or 'as 1"" be0 ca*acit!, accor0in& to its icense, t'en,
!ou are covere0.
9'at is t'e *articuar 0iEerence o- 'eat' *ersonne t'at are
covere0/ 8s to t'e wor3 wee3. 8 wor3 wee3 is at east 6
consecutive wor3in& 0a! -or t'e or0inar! in0ustria, a&ricutura or
co))ercia wor3er. Aut -or 'eat' *ersonne in cities o- 1# or o-
at east 1"" be0 ca*acit! 'os*itas or 'eat' institutions, t'en,
t'ere wor3 wee3 is on! ? 0a!s.
+an t'e! be )a0e to wor3 -ro 6 0a!s/ B($, but t'eir rate o-
*a! on t'e 6
t'
0a! is 15"U. ,'ere is a *re)iu) on t'eir wor3 on
t'e 6
t'
0a!.
,'e wor0in& o- t'e aw is suc' t'at even t'e &ar0ener o- a
'os*ita wit' 1"" be0 or a 'os*ita in a 1# *o*uation cit! is
covere0 b! 'eat' *ersonne because in t'e enu)eration, it is
Hot'er e)*o!eesI.
1". 4isherDen cre/
9e are ta3in& 'ere o- $ection %?, .= R"% ,'e Fis'eries 8ct
o- 19R?. ,'is &rou* o- wor3ers are eFe)*te0 -ro) t'e overti)e
*a! o- M 'our Labor aw.
$o i- !ou are out at sea, 0ee*:sea @s'in&, an0 !ou are )a0e
to wor3 )ore t'an M 'ours o- !our wor3in& 0a!, !ou wi be *ai0
-or t'e eFcess 'ours. Aut !ou wi not be *ai0 overti)e rate. Bou
wi be *ai0 strai&'t ti)e *a!. ,'at is t'e rue wit' res*ect to
@s'er)en crew.
,'at is because o- t'e s*eci@c *rovision o- $ection %?, .=
R"%, w'ic' as -ar as 1 3now 'as not been re*eae0.
9e are t'rou&' wit' t'e eFcu0e0 an0 eFe)*te0 e)*o!ees.
($abi sa start sa ecture 11 &rou* o- wor3ers, 1" an& )an ..
3asa)a na i!on& 'in0i ni!a na)ention na )e)bers o- t'e -a)i!
o- t'e (R w'o are 0e*en0ent on 'i) -or su**ort )
Bou are &iven a *robe). ,'e @rst t'in& t'at !ou 'ave to
0eter)ine is: 1s t'is Labor +o0e or not/ ,'at is t'e 6uestion t'at
!ou )ust assess. 8!aw tu3o0 0a!on< 8!aw *a&'una:'una na
n&ano )an )an&utana i- abor, abor eFa) )an ni. ,'at is not
4ust a Labor eFa), t'at is t'e bar eFa). Bou are teste0 as to
w'et'er !our entire 3nowe0&e o- aw is a0e6uate. $o, !ou 'ave
to as3 i- t'is is a abor *robe) or not. ,'is )i&'t be an
in0e*en0ent contractin& *robe). $o, !ou 'ave to eFa)ine t'e
ee)ents.
2nce !ou 'ave 0eci0e0 t'at t'is is a abor case, t'en, t'e
neFt 6uestion is: 0oes t'is -oow un0er t'e eFce*tions because
t'is is 6uestion o- abor stan0ar0s. 9'en !ou are 0iscussin& about
'ours o- wor3, rates o- *a!, vacation eave, 15
t'
)ont' *a! t'ose
are a abor stan0ar0s.
Dn!a )an&ita 3a u& 'ain an& union 0in'i/ 9a )an.
Dnsa )an ni/ .a3iao wor3ers/ =o)estic/ Naa 3a! c'ec3:oE
ist ba. D& i)o na 4u0 ni &itun:an, bai3 bai3 na ni)o, usa ra 3a
tan:aw, ba&tin& 0a!on 3a .. )ao ni. Aai3a 0a!on u& tan:aw. ,'e
'orizon wor3s< 1- !ou 'ave suKcient -a)iiarit!, t'en, !ou wi
3now w'at to 0o.
1- !ou 0eci0e0 t'at it is not eFcu0e0, t'ats w'en !ou &o to
t'e )erits o- t'e case, a-ter !ou 'ave ceare0 t'ese two
*rei)inar! 6uestions.
8n0 t'en, !ou 'ave to watc' out -or so:cae0 Hre0:'errin&sI
because t'at is t'e stan0ar0 wa! abor eFa)iners -oo t'eir
eFa)inees b! *uttin& -ase an0)ar3s.
$o an0 so a *robationar! wor3er -aie0 to re*ort to wor3 on 'is
@rst 0a! an0 t'en, 'e wor3e0 on t'e secon0 0a!. 8n0 'e was
)a0e to wor3 12 'ours to co)*ensate -or 'is absence. 1s 'e
entite0 to overti)e since 'e is a *robationar! wor3er/
.robationar! 'as so)et'in& to 0o wit' tenure, not'in& to 0o
wit' abor stan0ar0s. #a0a3*an &ani 3a ana an0 )ao na an&
)a3a'asse ni)o, wa na, taob 3a.
9'et'er 'e is *robationar! or re&uar, t'e issue is is 'e a ti)e
wor3er/ 1- 'e is a ti)e wor3er, 'e is entite0 to overti)e. 1- 'e is
not a ti)e wor3er, 'e is not entite0 to overti)e. ,'at is t'e w'oe
*oint.
,'ose are cae0 re0:'errin&s )eant to 0istract !ou.
::
12

Labor - June 19, 26, July 9, 10

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Labor - June 19, 26, July 9, 10

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(1) Labor Law (Review) Fr. Nazarenos Lectures : June 19, 26, Ju! 9, 1" Jazzie #.

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