LABOR LAW REVIEW

SYLLABUS
PART 4
1st Semester, AY 2023-2024
Atty. Cyrus I. Restauro
Cagayan State University – College of Law

POST-EMPLOYMENT
A. Employer-Employee Relationship
1. Four-fold Test
2. Two-Tiered Test: Francisco Doctrine
3. Principles on Employer-Employee Relationship
4. Kinds of Employment
a) Regular
b) Casual
c) Probationary
d) Project
e) Seasonal
f) Fixed-term
g) Security Guards
h) Floating Status
5. Legitimate subcontracting vs. Labor-only contracting
a) Legitimate Job Contracting Arrangement
b) Labor-Only Contracting Arrangement
c) Other Illicit Forms of Employment
d) Effects of Labor-Only Contracting and Engaging in Other Illicit
Forms of Employment
e) Legitimate Job Contracting vs. Labor-Only Contracting
f) Solidary Liability

B. Termination by Employer
1. Just Causes
2. Authorized Causes
3. Due Process
a) Twin-Notice Requirement
b) Hearing
C. Termination by Employee
1. Resignation vs. Contstructive Dismissal
D. Preventive Suspension
E. Reliefs from Illegal Dismissal
F. Monetary Claims Arising from Employer-Employee Relationship
G. Retirement

A. Employer-Employee Relationship
1. Four-fold Test

a) Selection and Engagement

b) Payment of wages or salaries
c) Exercise of power of dismissal
d) Exercise of the power to control the employee’s conduct

o Aurora Land Projects Corporation vs. NLRC, G.R. No.

114733, January 2, 1997

o Mendiola vs. CA, G.R. No. 159333, July 31, 2006

o Pamplona Plantation Company, Inc. vs. Tinghil, G.R. No.

159121, Feb. 3, 2005

2. Two-Tiered Test: Francisco Doctrine

• Francisco vs. NLRC, G.R. No. 170087, August 31, 2006

• Orozco vs. CA, G.R. No. 155207, August 13, 2008

3. Principles on Employer-Employee Relationship

• Chavez vs. NLRC, G.R. No. 146530, Jan. 17, 2005

• CRC Agricultural Trading vs. NLRC, G.R. No. 177664, December 23,
2009

4. Kinds of Employment

• Article 295 [280], Labor Code

• Innodata Knowledge Services, Inc. vs. Inting, G.R. No. 211892,

December 6, 2017

a) Regular

i. Legal Basis

o Article 295 [280], Labor Code

Keywords: necessary and desirable

ii. Default Employment

 o Sevidad vs. NLRC, G.R. No. 128682, March 18, 1999

iii. Principles

o Association of Trade Unions vs. Abella, G.R. No. 100518,

January 24, 2000

o Romares vs. NLRC, G.R. No. 122327, August 19, 1998

o Bustamante vs. NLRC, G.R. 113858-59, Sept. 7, 2001

b) Casual

o Par. 2, Art. 295 [280], Labor Code

o Conti vs. NLRC, G.R. No. 119253, April 10, 1997

o Capule vs. NLRC, G.R. No. 90653, Nov. 12, 1990

c) Probationary

o Art. 296 [281], Labor Code

i. Nature

o De la Cruz vs. NLRC, G.R. No. 145417, Dec. 11, 2003

ii. Probationary period; How reckoned and computed

o Cebu Royal Plant vs. Deputy Minister of Labor, G.R. No. L-

58639, Aug. 12, 1987

iii. Principles on probationary employment

o Servidad vs. NLRC, G.R. 128682, March 18, 1999

o Villanueva vs. NLRC, G.R. No. 127448, Sept. 10, 1998

o Malicdem and Flores vs. Marulas Industrial Corp., vs. Marulas

Industrial Corp., G.R. No. 204406, Feb. 26, 2014

o Dusit Hotel Nikko vs. Gatbonton, G.R. No. 161654, May 5,

2006
 o San Miguel Corp. vs. Del Rosario, G.R. No. 168914 and
168603, Dec. 13, 2005

o Octaviano vs. NLRC, G.R. No. 88636, Oct. 3, 1991

iv. Termination of probationary employment

a. Security of Tenure

▪ Sec. 6 [c], Rule I, Book VI, IRR Labor Code

b. Requisites of the ground of failure to qualify as a

regular employee

▪ Tamson’s Enterprises, Inc. vs. CA, G.R. No.

192881, Nov. 26, 2011

c. Procedural due process

▪ Colegio del Santisimo Rosario vs. Rojo, G.R.

No. 170388, Sept. 04, 2013

d. Principles

▪ Agabon vs. NLRC, G.R. No. 158693; Jaka Food

Processing Corp. vs. Pacot, G.R. No. 151378,
March 28, 2005

▪ Pasamba vs. NLRC, G.R. No. 168421, June 8,

2007

d) Project

o Art. 295 [280], Labor Code

o GMA Network, Inc. vs. Pabriga, G.R. No. 176419, Nov. 27,
2013

o ALU-TUCP vs. NLRC, G.R. No. 109902, Aug. 2, 1994

o PLDT vs. Ylagan, G.R. No. 155645, Nov. 24, 2006

i. Litmus Test of Project Employment

 o Innodata Knowledge Services, Inc. vs. Inting, G.R. No.
211892, Dec. 6, 2017

ii. Project vs. Fixed-Term

o Innodata Knowledge Services, Inc. vs. Inting, G.R. No.

211892, Dec. 6, 2017

iii. Project vs. Regular Employment

o Magcalas vs. NLRC, G.R. No. 100333, Mar. 13, 1997

iv. “Work Pool” Principle

o Abesco Construction and Development Corp. vs. Ramirez,

G.R. No. 141168, April 10, 2006

v. Principles

o Dacuital vs. LM Camus Engineering Corp., G.R. No. 176748,

Sept. 1, 2010

o Dacuital vs. LM Camus Engineering Corp., G.R. No. 176748,

Sept. 1, 2010

o Hanjin Heavy Industries and Construction Co., Ltd. Vs.

Ibanez, G.R. No. 170181, June 26, 2008

o Glory Philippines, Inc. vs. Vergara, G.R. No. 176627, Aug. 24,
2007

o Maraguinot, Jr. vs. NLRC, G.R. No. 120969, Jan. 22, 1998

o Tomas Lao Construction vs. NLRC, G.R. No. 116781, Sept.

5, 1997

o Filipinas Pre-Fabricated Building Systems, Inc. vs. Puente,

G.R. No. 153832, March 18, 2005

e) Seasonal

o Art. 295 [280], Labor Code

 o Abasolo vs. NLRC, G.R. No. 118475, Nov. 29, 2000

o Hacienda Fatima vs. National Federation of Sugarcane

Workers, G.R. No. 149440, Jan. 28, 2003

f) Fixed-term

o Innodata Knowledge Services, Inc. vs. Inting, G.R. No.

211892, December 06, 2017

o Pure Foods Corp. vs. NLRC, G.R. No. 122563, Dec. 12, 1997

o Pantranco North Express, Inc. vs. NLRC, G.R. No. 106654,

Dec. 16, 1994

o Pangilinan vs. General Milling Corp., G.R. No. 149329, July

12, 2004

o Manila Water Co., Inc. vs. Pena, G.R. No. 158255, July 8,
2004

o Fuji vs. Espiritu, G.R. Nos. 204944-45, December 3, 2014

o Fonterra Brands Phils, Inc. vs. Largado, G.R. No. 205300,

March 18, 2005

o Agusan del Norte Electric Cooperative, Inc. vs. Cagampang

and Garzon, G.R. No. 167627, Oct. 10, 2008

o Philips Semiconductors, Inc. vs. Fadriquela, G.R. No. 141717,

April 14, 2004

o Pure Foods Corporation vs. NLRC, G.R. No. 122653, Dec. 12,
1997

o New Sunrise Metal Construction vs. Pia, G.R. No. 171131,

July 10, 2007

o Millares vs. NLRC, G.R. No. 110524, July 29, 2002

f) Security Guards
g) Floating Status

o Pido vs. NLRC, G.R. No. 169812, Feb. 23, 2007

 o Soliman Security Services, Inc. vs. CA, G.R. No. 143215, July
11, 2002

5. Legitimate subcontracting vs. Labor-only contracting

• Legal bases

o Arts. 106-109, Labor Code

• Trilateral relationship

o Department Order No. 174, Series of 2017

o Department Order No. 18-A, Series of 2011

o Baguio vs. NLRC, G.R. Nos. 79004-08, Oct. 4, 1991

• Effect of Termination of Employees

o Sec. 13, Department Order No. 174, Series of 2017

a) Legitimate Job Contracting Arrangement

o Sec. 8, DO No. 174, Series of 2017

• Tests to Determine Existence of Legitimate Job Contracting

Arrangement

i. Right of Control Test

▪ CBMI vs. Asprec, Jr., G.R. No. 217301, June 06, 2018

ii. Substantial Capital or Investment Test

▪ Section 3, DO No. 174, Series of 2017

▪ Neri vs. NLRC, G.R. Nos. 97008-09, July 23, 1993, 224
SCRA 7171

Either substantial capital or investment. Need not both.

iii. Direct Relation to Principal’s Business Test

▪ Coca-cola vs. Agito, G.R. No. 179546, Feb. 13, 2009

▪ San Miguel Corp. vs. Aballa, G.R. No. 149011, June

28, 2005
 iv. Legal Rights and Benefits Compliance Test

▪ Mago vs. Sun Power Manufacturing Limited, G.R. No.

210961, Jan. 24, 2018

▪ Sec. 10, DO 174, Series of 2017

▪ Consolidated Building Maintenance, Inc. vs. Asprec,

Jr., G.R. No. 217301, June 6, 2018

b) Labor-Only Contracting Arrangement

o Sec. 3[h] and 5, DO 174, Series of 2017

o Art. 106, Labor Code

o Aliviado vs. Procter & Gamble Phils., Inc., G.R. No. 160506, June 6,
2011

o Valencia vs. Classique Vinyl Products Corp., G.R. No. 206390, Jan.
30, 2017

o Lingat and Altoveros vs. Coca-cola Bottlers Phils., Inc., G.R. No.
205688, July 4, 2018

o Mago vs. Sun Power Manufacturing Limited, G.R. No. 210961, Jan.
24, 2018

c) Other Illicit Forms of Employment

o Sec. 6, DO 174, Series of 2017

d) Effects of Labor-Only Contracting and Engaging in Other Illicit Forms of

Employment

o Alps Transportation vs. Rodriguez, G.R. No. 186732, June 13, 2013

o Sec. 7, DO 174, Series of 2017

o Manila Electric Co. vs. Benamira, G.R. No. 146271, July 14, 2005

e) Legitimate Job Contracting vs. Labor-Only Contracting

o Aliviado vs. Protecter & Gamble Phils., Inc., G.R. No. 160506, May
9, 2010
 o PCI Automation Center, Inc. vs. NLRC, G.R. No. 115920, January
29, 1996

o Sec. 27, DO 18-A, Series of 2011

o Philippines Airlines, Inc. vs. Ligan, G.R. No. 146408, Feb. 29, 2008

f) Solidary Liability

o Sec. 3(k), DO 174, Series of 2017

o Sec. 9, DO 174, Series of 2017
o Sec. 10, DO 174, Series of 2017
o Sec. 11, DO 174, Series of 2017
o Sec. 13, DO 174, Series of 2017
o Sec. 26, DO 174, Series of 2017
o Art. 106 and 109, Labor Code

o Rosewood Processing, Inc. vs. NLRC, G.R. No. 116476-84, 290

SCRA 408

o Eparwa vs. Liceo de Cagayan University, G.R. No. 150402, Nov. 28,
2006

o San Miguel Corp. vs. MAERC Integrated Services, Inc., G.R. No.
144672, July 10, 2003

o Sonza vs. ABS-CBN Broadcasting Corporation, G.R. No. 138051,

June 10, 2004