It is well-settled that "all doubts in the implementation and interpretation of the provisions of the Labor 1.

Regular Employees
Code . . . shall be resolved in favor of labor." And as previously stated, labor in this case refers to the union A regular employee is similar to an indispensable cog in the corporate machine. Under the law,
members, as employees of the Company. (G.R. No. 85333, February 26, 1990) regular employees are those hired for activities which are necessary or desirable in the usual
business of the employer. Therefore, a regular employee enjoys the benefit of security of
Case law defines constructive dismissal as a cessation of work because continued employment is rendered tenure as guaranteed by the Constitution. This means that the employee cannot simply be
impossible, unreasonable or unlikely, when there is a demotion in rank or diminution in pay or both or terminated, other than those Just and Authorized causes as provided by law. Know more
when a clear discrimination, insensibility, or disdain by an employer becomes unbearable to the employee. about termination in this article.

Management prerogative is the inherent right of the employer to regulate all aspects of employment 2. Probationary Employees
This category pertains to workers which placed on a probationary status for 6 months, as is
The four-fold test pertains to the selection and engagement of the employee, payment of wages, the customary with the general practice. Here, the employee is in the evaluating or qualifying
power of dismissal, and the power of control over the employee’s conduct. stage, and he may be converted to regular status if his performance is up to par with the
company standard. Such reasonable standards must be made known to the employee at the
Are all forms of control indicative of employer-employee relationship?
time of hiring. Also, if such employee is allowed to work beyond the probationary period, even
if designated as an extension period, then he is protected by the law and considered as a
No. A person who performs work for another and is subjected to its rules, regulations, and code of ethics
regular employee.
does not necessarily become an employee. As long as the level of control does not interfere with the
means and methods of accomplishing the assigned tasks, the rules imposed by the hiring party on the hired
3. Term Employees
party do not amount to the labor law concept of control that is indicative of employer-employee
Also known as Fixed-Term work, Term employees are those who are hired for a specific period
relationship.
only. The arrival of the date in the contract automatically terminates him as an employee in
the company. However, there are 2 elements that should be considered so that term
Citing jurisprudence, the advisory said the economic reality test is the determination of the employer-
employment contracts will not circumvent security of tenure: First, the fixed period of
employee relationship depending on the extent to which the services performed by the worker as integral
employment should be knowingly and voluntarily agreed upon by the parties, without any
part of the employer’s business; the extent of the worker’s investment in equipment and facilities; the
force or pressure affecting his consent. Second, it should appear that the employer and
nature and degree of control exercised by the employer; the worker’s opportunity for profit and loss; the
employee dealt with each other on more or less equal terms, with no moral dominance
amount of initiative, skill, judgment or foresight required for the success of the enterprise; the permanency
exerted by the employer at the disadvantage of the employee.
and duration of the relationship between the worker and the employer; and the degree of dependency of
the worker upon the employer for his continued employment.
4. Project Employees
The major distinction between Regular employees and Project employees is that the Project
The independent contractor test, on the other hand, means workers are deemed independent contractors
employees are hired for only a “specific project or undertaking”. The length of period and
because of their unique skills and talents and the employer’s lack of control over the means and methods in
scope of the work must be specified at the time that the employees were hired for the
their work performance.
project.The company must however see to it that they comply with the Termination report of
The “reasonable causal connection rule” is one formulated by the Supreme Court to settle which between project employees. This is compulsory under the law, for failure to do so would indicate that
civil and labor courts has jurisdiction over a claim made by an employee against his employer the worker was not a project employee but a regular employee.

An appropriate bargaining unit may be defined as "a group of employees of a given employer, comprised 5. Seasonal Employees
of all or less than all of the entire body of employees, which the collective interest of all the employees, Seasonal employees are those hired for activities which are called to work from time to time.
consistent with equity to the employer, indicate to be best suited to serve the reciprocal rights and duties These may include regular seasonal employees, who are temporarily laid off or suspended
of the parties under the collective bargaining provisions of the during the off season. But during Christmas holidays, for instance, when their services may be
law." 24 needed, they are hired by the company. Regular seasonal employees are “not separated from
service but merely considered on leave of absence without pay until re-employed.”

6. Casual Employees
Different Employee Types and their Rights under PH Laws These workers are hired for work or activities which are merely incidental to the business. It is
not indispensable nor primarily related to the line of work of the of the employer. However,
Employees are the bread and butter of the company. Without them, the company would not function and casual workers who have rendered at least 1 year of service, whether continuous or not, are
the office would just be a room filled with empty desks. Thus, it’s important to know more about the deemed to be Regular employees with respect to the work for which they are employed, for as
different kinds, rights, and distinctions of this basic unit of the company. Here are the types of employees long as the activity exists.
with a brief explanation of each.
In the case at bar, supervisors 3 and above may not be considered confidential employees merely
because they handle "confidential data" as such must first be strictly classified as pertaining to labor
 relations for them to fall under said restrictions. The information they handle are properly classifiable “Reasonable period” should be construed as a period of at least five (5) calendar days from receipt of the
as technical and internal business operations data which, to our mind, has no relevance to notice to give the employee an opportunity to study the accusation, consult or be represented by a lawyer
negotiations and settlement of grievances wherein the interests of a union and the management are or union officer, gather data and evidence, and decide on the defenses against the complaint.
invariably adversarial. 
(b) AMPLE OPPORTUNITY TO BE HEARD. After serving the first notice, the employer should afford the
Labor-only contracting refers to arrangement where the contractor or subcontractor merely recruits, employee ample opportunity to be heard and to defend himself/herself with the assistance of his/her
supplies or places workers to perform a job or work for a principal. There are two variants of labor-only representative if he/she so desires, as provided in Article 299 (b) of the Labor Code, as amended. “Ample
contracting: opportunity to be heard” means any meaningful opportunity (verbal or written) given to the employee to
answer the charges against him/her and submit evidence in support of his/her defense, whether in a
 1. When the contractor or subcontractor does not exercise the right to control over the hearing, conference or some other fair, just and reasonable way. 
performance of the work of the employees.
The old requirements specifically calls for a twin-notice and hearing. This has been revised because, based
 2. When: (i) the contractor or subcontractor does not have substantial capital, or does not on jurisprudence, a hearing is merely a component of the right to be heard. A hearing is not required in all
have investments in the form of tools, equipment, machineries, supervision, work premises, cases. A formal hearing or conference becomes mandatory only when:
among others; and (ii) the contractor’s or subcontractor’s employees recruited and placed are
performing activities which are directly related to the main business operation of the principal.
 (1) requested by the employee in writing, or 

DUE PROCESS IN AUTHORIZED CAUSES

 (2) substantial evidentiary disputes exist, or 
The requirements of procedural due process depend on the ground relied upon for the dismissal.
For authorized causes, due process requires the service of a written notice to both the employee and the
appropriate Regional Office of the Department of Labor and Employment (DOLE)  at least thirty (30)
 (3) a company rule or practice requires it, or 
days before the effectivity of the termination, specifying the ground or grounds for termination. 
 (4) when similar circumstances just
For just causes of termination, procedural due process requires two written notices and an ample
opportunity to be heard.

DUE PROCESS IN JUST CAUSES

There are two written notices that must be complied with in order for a dismissal, based on just cause, to
be valid. Note that “valid dismissal” is used in a general context, as the failure to comply with the
requirements of procedural due process does not make the dismissal “illegal,” but entitles the employee to
the payment of damages (discussed in a separate post). It is also important to emphasize that the twin
notices must be WRITTEN. A verbal notice is equivalent to no notice. 

(a) FIRST WRITTEN NOTICE. The first written notice should contain:

 1. The specific causes or grounds for termination as provided for under Article 297 of the Labor
Code, as amended, and company policies, if any;

 2. Detailed narration of the facts and circumstances that will serve as basis for the charge
against the employee. A general description of the charge will not suffice; and 

 3. A directive that the employee is given opportunity to submit a written explanation within a
reasonable period. 
 2. Union security

A Right to Self-Organization "Union security" is a generic term which is applied to and comprehends "closed shop" "union
shop." "Maintenance of membership" or any other form of agreement which imposes upon
employees the obligation to acquire or retain union membership as a condition affecting
employment. (Bank of the Philippine Islands v. BPI Employees Union-Davao Chapter-
1. Concept Self-organization is a fundamental right guaranteed by the Philippine Constitution
Federation of Unions in BPI Unibank, G.. No. 164301, 10 August 2010)
and the Labor Code. Employees have the right to form, join or assist labor organizations for
the purpose of collective bargaining or for their mutual aid and protection. Whether There is union shop when all new regular employees are required to join the union within a
employed for a definite period or not, any employee shall be considered as such, beginning certain period for their continued employment. (/bid.)
on his first day of service, for purposes of membership in a labor union. (UST Faculty Union
(USTFU) v. Bitonio, 1999, G.. No. 131235, 16 November1999) There is maintenance of membership shop when employees, who are union members as of
the effective date of the agreement, or who thereafter become members, must maintain
union membership as a condition for continued employment until they are promoted or
transferred out of the bargaining unit or the agreement is terminated. (Ibid.)
The right to form a union or association or to self-organization comprehends two notions,
to wit:  A closed- shop, on the other hand, may be defined as an enterprise in which, by agreement
between the employer and his employees or their representatives, no person may be
(a) The liberty or freedom, that is, the absence of restraint which guarantees that the
employed in any or certain agreed departments of the enterprise unless he or she is,
employee may act for himself without being prevented by law; and
becomes, and, for the duration of the agreement, remains a member in good standing of a
(b) The power, by virtue of which an employee may, as he pleases, join or refrain from joining union entirely comprised of or of which the employees in interest are a part. (/bid.)
an association. (Samahan g Manggagawa a Hanjin Shipyard v. BLR, Hanjin Heavy Industries
a. Enforced membership
and Construction Co., Ltd., G.. No. 211145, 14 October 2015)
1) General rule: Valid
a. Includes right to refuse
When certain employees are obliged to join a particular union as a requisite for continued
Corollary to this right is the prerogative not to join, affiliate with or assist a labor union.
employment, as in the case of Union Security Clauses, this condition is a valid restriction of
Therefore, to become a union member, an employee must, as a rule, not only signify the
the freedom or right not to join any labor organization because it is in favor of unionism. This
intent to become one, but also take some positive steps to realize that intent. The procedure
Court, on occasion, has even held that a union security clause in a CA is not a restriction of the
for union membership is usually embodied in the union's constitution and bylaws. An
right of freedom of association guaranteed by the Constitution. (/bid.)
employee who becomes a union member acquires the rights and the concomitant obligations
that go with this new status and becomes bound by the union's rules and regulations. (UST It is the policy of the State to promote unionism to enable the workers to negotiate with
Faculty Union (USTFU) v. Bitonio, supra.) management on the same level and with more persuasiveness than if they were too
individually and independent bargain for the improvement of their respective conditions. To
The agreement of a member on joining a union to abide by its laws and comply with the will
this end, the Constitution guarantees to them the rights "to self-organization, collective
of the lawfully constituted majority does not require a member to submit to the
bargaining and negotiations and peaceful concerted actions including the right to strike in
determination of the union any question involving his personal rights. (bid.)
accordance with law." There is no question that these purposes could be thwarted if every
b. Covers unions and associations worker were to choose to go his own separate way instead of joining his co- employees in
planning collective action and presenting a united front when they sit down to bargain with
The right to self-organization is not limited to unionism. Workers may also form or join an their employers. It is for this reason that the law has sanctioned stipulations for the union
association for mutual aid and protection and for other legitimate purposes. (Samahan ng shop and the closed shop as a means of encouraging the workers to join and support the
Manggagawa sa labor union of their own choice as their representative in the negotiation of their demands
and the protection of their interest vis-à-vis the employer. (Liberty Flour Mills Employees v.
Hanjin Shipyard v. BLR, Hanjin Heavy industries and Construction Co., Ltd, G.R. No. 211/45, Liberty Flour Mills, Inc., G.. Nos. 58768-70. 29 December 1989) in other words, the purpose
14 October2015) of a union shop or other union security arrangement is to guarantee the continued existence
of the union through enforced membership for the benefit of the workers. (Bank of the 1 Government employees
Philippine Islands v. BI Employees Union-Davao Chapter-Federation of Unions in BI Unibank,
supra.) 2) Managerial employees

2 Exceptions: when refusal is valid 3) Confidential employees

All employees in the bargaining unit covered by a Union Shop Clause in their CBA with a) Government employees
management are subject to its terms. However, under law and jurisprudence, the following
Employees of government corporations established under the Corporation Code shall have
kinds of employees are exempted from its coverage, namely, employees who at the time the
the right to organize and to bargain collectively with their respective employers. All other
union shop agreement takes effect are bona fide members of a religious organization which
employees in the civil service shall have the right to form associations for purposes not
prohibits its members from joining labor unions on religious grounds; employees already in
contrary to law. (Article 254, /bid.)
the service and already members of a union other than the majority at the time the union
shop agreement took effect; confidential employees who are excluded from the rank and file Government employees have the right to self-organization. It is not, however, regarded as
bargaining unit; and employees excluded from the union shop by express terms of the existing or available for purposes of collective bargaining, but simply for the furtherance and
agreement. (bid.) protection of their interests. (Samahan ng Manggagawa Sa Hanjin Shipyard v. BLR, Hanjin
Heavy Industries and Construction Co., Ltd., G.R. No. 211145, 14 October 2015)
b. Absorbed employees in case of merger of Corporations
b) Managerial employees
In law, there is no special class of employees called "absorbed employees." In order for the
Court to apply or not apply the Union Shop Clause, the Court can only classify the former Managerial employees are not eligible to join, assist or form any labor organization. (Article
employees ( of the absorbed company) as either "old" or "new. " If they are not "old" 255, Labor Code)
employees, they are necessaril, "new" employees. If they are new employees, the Union Shop
Clause did not distinguish between new employees who are non-regular at their hiring but The right to self-organization, however, is subject to certain limitations as provided by law.
who subsequently become regular and new employees who are "absorbed as regular and For instance, the Labor Code specifically disallows managerial employees from joining,
permanent from the beginning of their employment. assisting or forming any labor union. Meanwhile, supervisory employees, while eligible for
membership in labor organizations, are proscribed from joining the collective bargaining unit
The Union Shop Clause did not so distinguish, and so neither must we. (BPI v. BI Employees of the rank and file employees.
Union-Davao Chapter-Federation of Unions in BPI Unibank, En Banc, G.. No. 164301, 10
August 201) (bid.)

1. Who may or may not exercise the right

a. Coverage c Confidential employees

All persons employed in commercial, industrial and agricultural enterprises and in religious, Art. 255 [245] of the Labor Code does not directly prohibit confidential employees from
charitable, medical, or educational institutions, whether operating for profit or not, shall have engaging in union activities. However, under the doctrine of necessary implication, the
the right to self- organization and to form, join, or assist labor organizations of their own disqualification of managerial employees equally applies to confidential employees. The
choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, confidential-employee rule justifies exclusion of confidential employees because in the
self-employed people, rural workers and those without any definite employers may form normal course of their duties they become aware of management policies relating to labor
labor organizations for their mutual aid and protection. (Article 253, Labor Code) relations. It must be stressed, however, that when the employee does not have access to
confidential labor relations information, there is no legal prohibition against confidential
1) Who cannot form unions employees from forming, assisting, or joining a union. (Sugbuanon Rural Bank, Inc. v.
Laguesma, G.R. No. 116194, 02 February 2000)
All employees are allowed to form unions –

except:
(1) Concept 1) Concept

Confidential employees are defined as those who No statute can be enacted that can provide all the details involved in its application. There is
always an omission that may not meet a particular situation. What is thought, at the time of
(1) assist or act in a confidential capacity, in regard enactment, to be an all-embracing legislation may be inadequate to provide for the unfolding
events of the future So- called gaps in the law develop as the law is enforced. One of the rules
(2) to persons who formulate, determine, and effectuate management policies in the field of
of statutory construction used to fill in the gap is the doctrine of necessary implication. The
labor relations. The two criteria are cumulative, and both must be met if an employee is to be
doctrine states that what is implied in a statute is as much a part thereof as that which is
considered a confidential employee - that is, the confidential relationship must exist between
expressed. Every statute is understood, by implication, to contain all such provisions as may
the employee and his supervisor, and the supervisor must handle the prescribed
be necessary to effectuate its object and purpose, or to make effective rights, powers,
responsibilities relating to labor relations.
privileges or jurisdiction which it grants, including all such collateral and subsidiary
The exclusion from bargaining units of employees who, in the normal course of their duties, consequences as may be fairly and logically inferred from its terms. Ex necessitate legis. And
become aware of management policies relating to labor relations is a principal objective every statutory grant of power, right or privilege is deemed to include all incidental power,
sought to be accomplished by the "confidential employee rule." (San Miguel Foods, right or privilege. This is so because the greater includes the lesser, expressed in the Maxim,
Incorporated v. San Miguel Corporation Supervisors, G.R. No. 146206, 01 August 2011) in eo plus sit, simper inest et minus. (Chua v. Civil Service Commission, G.R. No. 88979, 07
February 1992)
A confidential employee is one entrusted with confidence on delicate, or with the custody,
handling or care and protection of the employer's property. Confidential employees, such as A confidential employee is one entrusted with confidence on delicate matters, or with the
accounting personnel, should be excluded from the bargaining unit, as their access to custody, handling, or care and protection of the employer's property. While Art. 255 [245] of
confidential information may become the source of undue advantage. (bid.) Corollarily, the Labor Code singles out managerial employee as ineligible to join, assist or form any labor
although Article 245 of the Labor Code limits the ineligibility to join, form and assist any labor organization, under the doctrine of necessary implication, confidential employees are
organization to managerial employees, jurisprudence has extended this prohibition to similarly disqualified. This doctrine states that what is implied in a statute is as much a part
confidential employees or those who by reason of their positions or nature of work are thereof as that which is expressed. (Pepsi Cola Products, Philippines, Inc. v. Secretary of
required to assist or act in a fiduciary manner to managerial employees and, hence, are Labor, G.R. Nos. 96663, 103300, 10 August 1999)
likewise privy to sensitive and highly confidential records. (/bid.)
2. Commingling or mixture of membership
Confidential employees are thus excluded from the rank-and-file bargaining unit. The
a. Concept
rationale for their separate category and disqualification to join any labor organization is
similar to the inhibition for managerial employees, because if allowed to be affiliated with a The mixed membership does not result in the illegitimacy of the registered labor union unless
union, the latter might not be assured of their loyalty in view of evident conflict of interests the same was done through misrepresentation, false statement or fraud according to Article
and the union can also become company-denominated with the presence of managerial 239 of the Labor Code. (The Heritage Hotel Manila v. Secretary of Labor and Employment,
employees in the union membership. G.R. No. 172132, 23 July 2014)

Having access to confidential information, confidential employees may also become the After a labor organization has been registered, it may exercise all the rights and privileges of
source of undue advantage. Said employees may act as a spy or spies of either party to a a legitimate labor organization. Any mingling between supervisory and rank-and-file
collective bargaining agreement. (bid.) employees in its membership cannot affect its legitimacy for that is not among the grounds
for cancellation of its registration, unless such mingling was brought about by
b. Supervisory employees
misrepresentation, false statement or fraud under Article 239 of the Labor Code. (Holy Child
Supervisory employees shall not be eligible for membership in the collective bargaining unit of Catholic School v. Sto. Tomas, G.R. No. 179146, 23 July 2013)
the rank-and-file employees but may join, assist or form separate collective bargaining units
Since the 1997 Amended Omnibus Rules does not require a local or chapter to provide a list
and/or legitimate labor organizations of their own. The rank and file union and the
of its members, it would be improper for the DOLE to deny recognition to said local or chapter
supervisors' union operating within the same establishment may join the same federation or
on account of any question pertaining to its individual members. (bid.)
national union. (Article 255,Labor Code)

a. Doctrine of necessary implication

The alleged inclusion of supervisory employees in a labor organization seeking to represent 5) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption
the bargaining unit of rank-and-file employees does not divest it of its status as a legitimate or ratification, and the list of the members who participated in it. (Article 240, Ibid.
labor organization. (/bid.)

In case of alleged inclusion of disqualified employees in a union, the proper procedure for an
employer like petitioner is to directly file a petition for cancellation of the union's certificate 6) Rank-and-file union and supervisors' union in same federation
of registration due to misrepresentation, false statement or fraud under the circumstances
The rank and file union and the supervisors' union operating within the same establishment
enumerated in Article 239 of the Labor Code, as amended. To reiterate, private respondent,
may join the same federation or national union. (Article 245, /bid.)
having been validly issued a certificate of registration, should be considered as having
acquired juridical personality which may not be attacked collaterally. (Ibid.) (a) Disaffiliation
Clearly, then, for the purpose of de-certifying a union, it is not enough to establish that the (i) General rule: allowed
rank-and- file union includes ineligible employees in its membership. Pursuant to Article 239
(a) and (c) of the Labor Code, it must be shown that there was misrepresentation, false The right of the local union to exercise the right to disaffiliate from its mother union is well
statement or fraud in connection with the adoption or ratification of the constitution and by- settled in this jurisdiction. (National Union of Bank Employees [NUBE) v. Philnabank
laws or amendments thereto, the minutes of ratification, or in connection with the election of Employees Association / PEMA), G.R. No. 174287, 12 August 2013)
officers, minutes of the election of officers, the list of voters, or failure to submit these
documents together with the list of the newly elected-appointed officers and their postal A local union has the right to disaffiliate from its mother union or declare its autonomy. A
addresses to the BLR. (in Re: Petition for Cancellation of the Union Registration of Air local union, being a separate and voluntary association, is free to serve the interests of all its
Philippines Flight Attendants Association, Air Philippines Corporation v. Bureau of Labor members including the freedom to disaffiliate or declare its autonomy from the federation
Relations, G.. No. 155395, 22 June 2006) which it belongs when circumstances warrant, in accordance with the constitutional
guarantee of freedom of association.
a. Nature of relationship
(Malayang Samahan ng mga Manggagawa sa M. Greenfield MSMG-UWP/ v. Ramos, G.R.
i. Member-Labor union No. 113907, 28 February 2000)

1) Requirements of Registration (ii) Exception: prohibition

A federation, national union or industry or trade union center or an independent union shall The right of the local members to withdraw from the federation and to form a new local
acquire legal personality and shall be entitled to the rights and privileges granted by law to union depends upon the provisions of the union's constitution, by-laws and charter and, in
legitimate labor organizations upon issuance of the certificate of registration based on the the absence of enforceable provisions in the federation's constitution preventing disaffiliation
following requirements: of a local union, a local may sever its relationship with its parent. (/bid.)

1) Fifty pesos (P50.00) registration fee; The purpose of affiliation by a local union with a mother union or a federation is to increase
by collective action the bargaining power in respect of the terms and conditions of labor. Yet
2) The names of its officers, their addresses, the principal address of the labor organization, the locals remained the basic units of association, free to serve their own and the common
the minutes of the organizational meetings and the list of the workers who participated in interest of all, subject to the restraints imposed by the Constitution and By-Laws of the
such meetings; Association, and free also to renounce the affiliation for mutual welfare upon the terms laid
down in the agreement which brought it into existence. (/bid.)
3) In case the applicant is an independent union, the names of all its members comprising at
least twenty percent (20% of all the employees in the bargaining unit where it seeks to Thus, a local union which has affiliated itself with a federation is free to sever such affiliation
operate; anytime and such disaffiliation cannot be considered disloyalty. In the absence of specific
provisions in the federation's constitution prohibiting disaffiliation or the declaration of
4) If the applicant union has been in existence for one or more years, copies of its annual
autonomy of a local union, a local may dissociate with its parent union. (/bid.)
financial reports; and