Employment &
Immigration Update
Inside this issue
Outsourcing, a flourishing industry
PHL gains in competitiveness
Labor Force Survey
Re-stamping of new visa imprints in the passports of foreigners who have been granted residency status
Procedure on Minimum Wage Fixing for Domestic Workers
Exemptions from payment of terminal fee
Special points of interest
Supreme Court (SC) Decisions
Labor & Immigration News
SyCipLaw News
Employment in the booming Information Technology-Business Process Outsourcing (IT-BPO)
industry, also called offshoring industry, has reached the million mark—1% of the Philippine
population in mid-2014—up from 900,000 in 2013. The Information Technology and Business
Process Association of the Philippines (IBPAP), the umbrella organization for IT-BPO and Global
in-House Center, sees end-2014 revenues to hit US$18 billion, up from US$15 billion in 2013,
putting the industry on track to attain its 2016 target employment of 1.3 million and revenue of
US$25 billion.
Established 15 years ago, the IT-BPO industry is next to overseas Filipino workers’ remittances
as a source of foreign exchange. The industry consists of contact center services; back offices;
medical, legal, and data transcription; animation; software development; engineering design;
and digital content.
A big number of global corporations have transferred some of their non-core, labor-intensive,
and IT-enabled jobs to the Philippines. It is not just Metro Manila that has BPO facilities; second-
tier cities such as Cebu, Dumaguete, Davao, Iloilo, Bacolod, and Iligan enjoy a flourishing
offshore industry of call centers providing voice and non-voice services. Call center operations
(Continued on page 4)
July-September 2014 Volume XII, Issue 3
Outsourcing, a flourishing industry
PHL gains in competitiveness
The Philippines ranked 52nd out of 144 economies this year—up from 59th out of 148 in the
previous survey—in the World Economic Forum’s Global Competitiveness Report 2014-2015,
which assessed markets against “pillars of competitiveness” that drive productivity.
In its current position, the Philippines has already notched a steady improvement of 33 places
since a 2009 plunge which the Forum noted was “the largest over that period among all
countries studies.”
“The results suggest that the reforms of the four years have bolstered the country’s economic
fundamentals,” it added. “The trends across most of the 12 pillars are positive and, in some
cases, truly remarkable.”
Switzerland remained the most competitive in the world for a sixth year, followed by
Singapore, the United States, Finland, Germany, Japan, Hong Kong, the Netherlands, the United
(Continued on page 4)
Quick Quotes from Recent SC Decisions
The company-designated
physician must arrive at a
definite assessment of the
seafarer’s fitness to work or
permanent disability within a
period of 120 or 240 days,
pursuant to Article 192(c)(1)
of the Labor Code and Rule X,
Section 2 of the Amended
Rules on Employees
Compensation (AREC). If he
fails to do so and the
seafarer’s medical condition
remains unresolved, the latter
shall be deemed totally and
permanently disabled. (Fil-
Pride Shipping Company, Inc.,
et al. v. Edgar A. Balasta, G.R.
No. 193047, 03 March 2014).
A Collective Bargaining
Agreement (CBA) is a contract
entered into by an employer
and a legitimate labor
organization concerning the
terms and conditions of
employment. Like any other
contract, it has the force of law
between the parties and, thus,
should be complied with in
good faith. Unilateral changes
or suspensions in the
implementation of the
provisions of the CBA,
therefore, cannot be allowed
without the consent of both
parties. (Wesleyan University-
Philippines v. Wesleyan
University-Philippines Faculty
and Staff Association, G.R. No.
181806, 12 March 2014).
Requirements for compensability of an injury or illness
SC Decision: G.R. No. 199344, 05 March 2014
Under Section 20(B)(6) of the Philippine Overseas Employment Administration-Standard
Employment Contract (POEA-SEC), an injury or illness is compensable when, first, it is work-
related and, second, the injury or illness existed during the term of the seafarer’s employment
contract. Section 32(A) of the 2000 POEA Amended Standard Terms and Conditions further
provides that for an occupational disease and the resulting disability to be compensable, the
following need to be satisfied: (1) the seafarer’s work must involve the risks described; (2) the
disease was contracted as a result of the seafarer’s exposure to the described risks; (3) the
disease was contracted within a period of exposure and under such other factors necessary to
contract it; and (4) there was no notorious negligence on the part of the seafarer.
Respondent-seafarer has been diagnosed to suffer from posterior subscapular cataract on his
right eye and pseudophakia, and posterior capsule opacification on his left eye. For these to be
regarded as occupational diseases, respondent-seafarer had to prove that the risk of
contracting the disease was increased by the conditions under which he worked. The evidence
must be real and substantial, and not merely apparent. It must constitute a reasonable basis for
arriving at a conclusion that the conditions of his employment caused the disease or that such
conditions aggravated the risk of contracting the illness.
Respondent-seafarer did not present substantial proof that his eye ailment was work-related.
Other than his bare claim that paint droppings accidentally splashed on an eye causing blurred
(Continued on page 5)
2
Exemptions from payment of terminal fee
The Manila International Airport Authority (MIAA) has published a Notice regarding the
International Passenger Service Charge (or Terminal Fee) which will be integrated effective 01
October 2014 into the cost of airline ticket at point of sale.
The following are exempt from paying the terminal fee provided they are able to present, at the
point of sale, exemption certificate duly issued by the Philippine Overseas Employment
Administration (POEA) or the MIAA:
a) Overseas Filipino Workers (OFWs) with Overseas Employment Certificate (OEC) issued by
the POEA;
b) Pilgrims endorsed by the National Commission on Muslim Filipinos with exemption
certificate issued by MIAA;
c) Athletes endorsed by the Philippine Sports Commission with exemption certificate issued
by the MIAA; and
d) Others who are authorized by the Office of the President.
Circumstances when terminal fee will be collected from exempt passengers:
a) Airline tickes purchased online;
b) Airline tickets purchased abroad;
c) If no exemption certificate has been presented when airline ticket is purchased over the
counter from airline office or its travel agent in the Philippines.
To facilitate the refund process for exempted passengers who have been charged the terminal
fee upon purchase of the ticket, the following documents must be presented during refund:
a) OFWs—airport copy of the OEC, and any of the following showing payment of terminal fee:
LI International, E-ticket, Itinerary receipt with official receipt (O.R.) or Invoice, or
boarding pass;
b) For Pilgrims, Athletes and Others—MIAA Exemption Certificate, and any of the following
showing payment of terminal fee: LI International, E-ticket, Itinerary receipt with O.R. or
Invoice, or boarding pass.
(Continued on page 5)
SC Decision: G.R. No. 186621, 12 March 2014
To ascertain the existence of an employer-employee relationship, jurisprudence has invariably
adhered to the four-fold test, to wit: (1) the selection and engagement of the employee; (2) the
payment of wages; (3) the power of dismissal; and (4) the power to control the employee’s
conduct, or the so-called “control test.” In resolving the issue of whether such relationship
exists in a given case, substantial evidence—that amount of relevant evidence which a
reasonable mind might accept as adequate to justify a conclusion—is sufficient. Although no
particular form of evidence is required to prove the existence of the relationship, and any
competent and relevant evidence to prove the relationship may be admitted, a finding that the
relationship exists must nonetheless rest on substantial evidence.
In the case at bar, the Court of Appeals (CA) gave more credence to the declarations of five
former employees of petitioners that respondent was their co-worker in petitioner company.
The SC upheld the conclusion of the CA.
3
Existence of employer-employee relationship
Quick Quotes from Recent SC Decisions
The power to dismiss an
employee is a recognized
prerogative inherent in the
employer’s right to freely
manage and regulate his
business. In protecting the
rights of the laborers, the law
authorizes neither oppression
nor self-destruction of the
employer. The worker’s right
to security of tenure is not an
absolute right, for the law
provides that he may be
dismissed for cause.
(Sutherland Global Services
(Philippines), Inc., et al. v.
Larry S. Labrador, G.R. No.
193107, 24 March 2014).
In a labor case, the written
statements of co-employees
admitting their participation
in a scheme to defraud the
employer are admissible in
evidence. The argument by an
employee that the said
statements constitute hearsay
because the authors thereof
were not presented for their
cross-examination does not
persuade because the rules of
evidence are not strictly
observed in proceedings
before the National Labor
Relations Commission (NLRC),
which are summary in nature
and decisions may be made on
the basis of position papers.
(Venus B. Castillo, et al. v.
Prudential Life Plans, Inc., et
al., G.R. No. 196142, 26 March
2014).
The employer-employee relationship ceases to exist when employees enter into a Service Franchise Agreement with their employer
SC Decision: G.R. No. 171482, 12 March 2014
Petitioner used to work as salesmen of three sister companies collectively called “Bandag”
which offered repair and retread services for used tires. In 1998, however, Bandag developed a
franchising scheme that would enable others to operate tire and retreading businesses using its
trade name and service system.
Petitioners quit their jobs as salesmen and entered into separate Service Franchise Agreements
(SFAs) with Bandag for the operation of their respective franchises. Under the SFAs, Bandag
would provide funding support to the petitioners subject to a regular or periodic liquidation of
their revolving funds. The expenses out of these funds would be deducted from petitioners’
sales to determine their incomes. At first, petitioners managed and operated their respective
franchises without any problem. After a length of time, however, they began to default on their
obligations to submit periodic liquidations of their operational expenses in relation to the
revolving funds Bandag provided them. Consequently, Bandag terminated their respective
SFAs.
(Continued on page 6)
Abandonment of work
SC Decision: G.R. No. 190724, 12 March 2014
Abandonment is the deliberate and unjustified refusal of an employee to resume his
employment. It is a form of neglect of duty that constitutes just cause for the employer to
dismiss the employee.
To constitute abandonment of work, two elements must concur: (1) the employee must have
failed to report for work or must have been absent without valid or justifiable reason; and
(2) there must have been a clear intention [on the part of the employee] to sever the employer-
employee relationship manifested by some overt act. The employee’s absence must be
accompanied by overt acts that unerringly point to the employee’s clear intention to sever the
employment relationship. And to successfully invoke abandonment, whether as a ground for
dismissing an employee or as a defense, the employer bears the burden of proving the
employee’s unjustified refusal to resume his employment. Mere absence of the employee is not
enough.
(Continued on page 7)
Outsourcing, a flourishing industry
have brought socio-economic development in key cities where they are located, resulting in
steady rise in employment.
A 2013 survey by Tholons, a strategic advisory firm for global outsourcing, identified the
Philippines as the “leading call center destination, beating out India.” The country’s advantages
over other nations are: cheaper labor costs; English-speaking workers; modern infrastructure
such as water, power, roads, telecommunications; large pool of college graduates; and good
environment for expatriate trainers and managers. The country also has an affinity with
Western culture.
The United States is the biggest market for call center work done from the Philippines, with the
United Kingdom, Australia, and New Zealand as emerging markets. The call center industry is
the fastest escalating employment provider for Filipino college graduates who seek jobs that
have better income generation.
[Source: Agence France-Presse, Manila Bulletin, 09102014, p. 11]
(Continued from page 1)
4
Quick Quotes from Recent SC Decisions
A bare claim of strained
relations by reason of
termination is insufficient to
warrant the granting of
separation pay. Likewise, the
filing of the complaint by the
petitioners does not
necessarily translate to
strained relations between the
parties. (Bernard A. Tenazas,
et al. v. R. Villegas Taxi
Transport, et al., G.R. No.
192998, 02 April 2014).
The determination of the
continuing necessity of a
particular officer or position
in a business corporation is a
management prerogative, and
the courts will not interfere
unless arbitrary or malicious
action on the part of the
management is shown. (SPI
Technologies, Inc., et al. v.
Victoria K. Mapua, G.R. No.
191154, 07 April 2014).
A question of law arises when
there is doubt as to what the
law is on a certain state of
facts, while there is a question
of fact when the doubt arises
as to the truth or falsity of the
alleged facts. For a question to
be one of law, the same must
not involve an examination of
the probative value of the
evidence presented by the
litigants or any of them.
(Eugene S. Arabit, et al. v.
Jardine Pacific Finance, Inc.,
etc., G.R. No. 181719, 21 April
2014).
PHL gains in competitiveness
Kingdom, and Sweden. At the bottom, in ascending order, were Guinea, Chad, Yemen,
Mauritania, Angola, Burundi, Sierra Leone, Haiti, Timor-Leste, and Burkina Faso.
In Southeast Asia, the Philippines ranked behind Singapore, Malaysia (20th), Thailand (31st),
and Indonesia (34th). Behind the Philippines were Vietnam (68th), Laos (93rd), Cambodia (95th),
and Myanmar (134th).
The Forum said that the Phlilippine government’s “recent success… in tackling some of the
most pressing structural issues provides evidence that bold reforms can yield positive results
relatively quickly.
[Source: Report by Daryll Edison D. Saclag, Business World 09032014, p. 1/SI]
(Continued from page 1)
Doctrine of piercing the veil of corporate fiction applied
SC Decision: G.R. No. 177493, 19 March 2014
It has long been settled that the law vests a corporation with a personality distinct and separate
from its stockholders or members. In the same vein, a corporation, by legal fiction and
convenience, is an entity shielded by a protective mantle and imbued by law with a character
alien to the persons comprising it. Nonetheless, the shield is not at all times impenetrable and
cannot be extended to a point beyond its reason and policy. Circumstances might deny a claim
for corporate personality, under the “doctrine of piercing the veil of corporate fiction.”
Piercing the veil of corporate fiction is an equitable doctrine developed to address situations
where the separate corporate personality of a corporation is abused or used for wrongful
purposes. Under the doctrine, the corporate existence may be disregarded where the entity is
formed or used for wrongful purposes. Under the doctrine, the corporate existence may be
disregarded where the entity is formed or used for non-legitimate pruposes, such as to evade a
just and due obligation, or to justify a wrong, to sheild or perpetrate fraud, or to carry out
similar or inequitable considerations, other unjustifiable aims or intentions, in which case, the
fiction will be disregarded and the individuals composing it and the two corporations will be
treated as identical.
In the case at bar, petitioner filed an illegal dismissal complaint with money claims against his
former employer CBB Philippines Strategic Property Services, Inc. (CBB). After the decision
(Continued on page 8)
5
Immigration Advisory
The Alien Registration
Program (ARP), a Bureau of
Immigration (BI)-Department
of Justice (DOJ) initiative, aims
to (i) Account; (ii) Register
and re-register; (iii) Capture
Information; (iv) Update BI’s
alien database; and (v)
Provide assistance for visa-
related problems. The ARP
shall be held from 01 October
2014 until 30 September
2015. Aliens may apply at any
authorized BI Regional Office.
Bring a duly filled-out ARP
form (form and additional
information available at
www.immigration.gov.ph)
and any valid identification
(e.g., passport, driver’s
license). Registered aliens
under this program may be
primary beneficiaries of
future social integration/
legalization programs of the
government.
For inquiries, you may contact
the following numbers: +632
465-2400 locals 208, 444 and
447.
[Source: Philippine Star News
09102014 at p. 2].
Quotable Quote
“Four things come not back—
the spoken word, the sped
arrow, the past life, and the
neglected opportunity.” —
Arab Proverb
Image Credit:
Photo on cover: Image courtesy of Microsoft Office.
Photos on pages 8-9: Image courtesy of SyCipLaw Corporate Communications Office
Refund can be done at the (a) Ninoy Aquino International Airport (NAIA) Terminals on the day
of departure 24 hours daily, or (b) Collection Office, Ground Floor, MIAA, Administration
Building, MIA Road, Pasay City, from 8:00 am-5:00 pm, Mondays through Fridays, except
holidays.
Refund by representative may be allowed subject to the presentation of the above-stated
requirements plus a Refund Declaration Form (downloadable from the MIAA website:
www.miaa.gov.ph), and passport or any valid government-issued ID with picture of the
representative. Government-issued IDs, among others, refer to SSS, GSIS, TIN, Senior Citizen’s
ID, or driver’s license.
[Source: Manila Bulletin 09222014 at p. 4]
(Continued from page 2)
Exemptions from payment of terminal fees
vision, he adduced no note or recording of the supposed accident. Nor did he present any
record of some medical check-up, consultation, or treatment that he had undergone. Besides,
while paint droppings can cause eye irritation, such fact alone does not ipso facto establish
compensable disability. Awards of compensation cannot rest on speculations or presumptions.
Respondent-seafarer must prove that the paint droppings caused his blindness.
On the other hand, the findings of the company-designated physician showed that it was
cataract extraction, not paint droppings, that caused respondent-seafarer’s ailment. The
definitions of the imputed medical conditions plainly do not indicate work-relatedness.
Besides, even if it were assumed that respondent-seafarer’s ailment was work-related,
respondent-seafarer still cannot claim disability benefits since he concealed his true medical
condition. The records show that when he underwent pre-employment medical examination
(PEME), he represented that he was merely wearing corrective lens. He concealed the fact that
he had a cataract operation in 2005. he told the truth only when he was being examined at
Medical City on 18 May 2007. This willful concealment of a vital information in his PEME
disqualifies him from claiming disability benefits pursuant to Section 20(E) of the POEA-SEC
which provides that “a seafarer who knowingly conceals and does not disclose past medical
condition, disability and history in the pre-employment medical examination constitutes
fraudulent misrepresentation and shall disqualify him from any compensation and benefits.”
(Continued from page 2)
Requirements for compensability of an injury or illness
Guide to Business Ethics and Anti-Corruption Asia Pacific Laws 2014
SyCipLaw contributed the Philippine chapter of Norton Rose Fulbright’s Guide to Business
Ethics and Anti-Corruption Asia Pacific Laws 2014. The Guide provides an overview of anti-
corruption regimes and related laws in the Asia Pacific context. Aside from the Philippines, it
also covers Australia, Bangladesh, Brunei Darussalam, Cambodia, China, Hong Kong, India,
Indonesia, Japan, Macau, Malaysia, Myanmar, New Zealand, Singapore, South Korea, Taiwan,
Thailand and Vietnam.
You may also download the Guide from the Norton Rose Fulbright website
(www.nortonrosefulbright.com).
For further information, please contact SyCipLaw’s Mia G. Gentugaya or Benedicto P.
Panigbatan in the Philippines or Norton Rose Fulbright’s Wilson Ang in Singapore.
6
The employer-employee relationship ceases to exist when employees enter into a Service Franchise Agreement with their employer
Aggrieved, petitioners filed a complaint for constructive dismissal, non-payment of wages,
incentive pay, 13th month pay, and damages against Bandag with the NLRC, contending that
notwithstanding the execution of the SFAs, they remained to be Bandag’s employees, the SFAs
being but a circumvention of their status as regular employees. For its part, Bandag pointed out
that petitioners freely resigned from their employment and decided to avail themselves of the
opportunity to be independent entrepreneurs under the franchise scheme that Bandag had.
Thus, no employer-employee relationship existed between the petitioners and Bandag.
The Labor Arbiter dismissed the complaint on the ground that no employer-employee
relationship existed between Bandag and the petitioners. The NLRC affirmed the Labor
Arbiter’s decision and denied petitioners’ motion for reconsideration. Also, the CA dismissed
petitioners’ certiorari petition ascribing grave abuse of discretion and denied petitioners’
motion for reconsideration.
On appeal to the SC, the majority of the SC Third Division affirmed the rulings of the Labor
Arbiter, the NLRC and the CA. Highlights of the SC majority ruling are:
When petitioners agreed to operate Bandag’s franchise branches in different parts of the
country, they knew that this substantially changed their former relationships. They were to
cease working as Bandag’s salesmen, the positions they occupied before they ventured into
running separate Bandag branches. They were to cease receiving salaries or commissions.
Their incomes were to depend on the profits they made.
It is pointed out that Bandag continued, like an employer, to exercise control over petitioners’
work. It points out that Bandag: (a) retained the right to adjust the price rates of products and
services; (b) imposed minimum processed tire requirement (MPR); (c) reviewed and regulated
credit applications; and (d) retained the power to suspend petitioners’ services for failure to
meet service standards.
But uniformity in prices, quality of services, and good business practices are the essence of all
franchises. A franchisee will damage the franchisor’s business if he sells at different prices,
renders different or inferior services, or engages in bad business practices. These business
contraints are needed to maintain collective responsibility for faultless and reliable service to
the same class of customers for the same prices.
This is not the “control” contemplated in employer-employee relationships. Control in such
relationships address the details of day to day work like assigning the particular task that has
to be done, monitoring the way tasks are done and their results, and determining the time
during which the employee must report for work or accomplish his assigned task.
Franchising involves the use of an established business expertise, trademark, knowledge and
training. As such, the franchisee is required to follow a certain established system. Accordingly,
the franchisors may impose guidelines that somehow restrict the petitioners’ conduct which do
not necessarily indicate “control.” The important factor to consider is still the element of
control over how the work itself is done, not just its end result. The SC cited a case decided in
June 2010 which held that, results wise, the insurance company, as principal, can impose
production quotas upon its independent agents and determine how many individual agents,
with specific territories, such independent agents ought to employ to achieve the company’s
objectives. These are management policy decisions that the labor law element of control cannot
reach. Petitioners’ commitment to abide by Bandag’s policy decisions and implementing rules
as franchisees does not make them its employees.
Petitioners cannot use the revolving funds feature of the SFAs as evidence of their employer-
employee relationship with Bandag. These funds do not represent wages. They are more in the
nature of capital advances for operations that Bandag conceptualized to attract prospective
franchises. Petitioners’ incomes depended on the profits they make, controlled by their
individual abilities to increase sales and reduce operating costs.
The lone 33-page dissenting opinion in the case presents the novel issue of a franchise
agreement being utilized to disguise an employer-employee relationship and to circumvent the
requirement of security of tenure.
(Continued from page 3)
Immigration Advisory
The Alien Registration
Division (ARD) reminds all
registered aliens as follows:
1) Incomplete and/or
improperly accomplished
registration forms shall
be dismissed;
2) To register and secure
the ACR I-Card only
through authorized
persons;
3) To report, in writing,
changes in information
(e.g., civil status,
citizenship, address and
the like) in order to avoid
sanctions, including
imprisonment for not
more than six months;
4) To pay the Annual Report
fee within the first 60
days of each year, unless
exempted by law;
5) To renew ACR I-Cards at
least three months in
advance of pre-scheduled
travels;
6) To check printed data on
the ACR I-Cards and
promptly report errors
and/or discrepancies;
7) To avoid false
statements,
misrepresentation and
fraud in any immigration
matter under pain of visa
cancellation/forfeiture
and/or deportation;
8) To secure regular/paper-
based Emigration
Clearance Certificate
(ECC) 72 hours before
departure for the
(Continued on page 7)
7
following: (a) Holders of
Temporary Visitor’s/
Tourist (9a) Visa, who
stayed for more than six
months; (b) Immigrants
and Non-immigrants
with downgraded or
expired visas except (a);
(c) Immigrants and Non-
immigrants with valid
visas, who are leaving for
good except (a); (d)
Philippine born
temporary visitors, who
are leaving for the first
time; (e) Foreign
nationals with orders to
leave; and (f) Foreign
Seafarers, with BI-
approved discharged,
who stayed for more than
30 days;
9) All ACR I-Card holders
not included above, who
are temporarily leaving
the country may pay ECC
RP/SRC fees at airports.
For queries, please contact:
+632 465-2400 loc. 205
(ARD), email
and
h, or visit the BI social media
accounts on Facebook
(officialbureauofimmigration)
and on Twitter
(@immigrationPH).
[Source: Manila Bulletin
09142014 at p. 6]
Immigration Advisory
(Continued from page 6)
Re-stamping of new visa imprints in the passports of foreigners who have been granted residency status
In the exercise of minimum wage fixing functions, the RTWPBs shall, as far as practicable,
consider, among other relevant factors, the following: (a) needs of workers and their families
(wage adjustment vis-a -vis the consumer price index; poverty threshold); and (b) capacity to
pay (household income; average wage of domestic workers).
Prior to the issuance of a wage order, the RTWPBs shall conduct consultations/hearings with
stakeholders. Separate consultations/hearings may be conducted in determining the minimum
wage of domestic workers in order that issues concerning the sector will be properly
addressed.
Public hearings are encouraged wherein all parties are represented. Public hearings shall be
conducted in a manner that shall ensure that all parties who stand to be directly affected are
given the widest opportunity to be heard.
(Continued from page 10)
Labor Force Survey
The size of the labor force was approximately 41.26 million out of an estimated 64.07 million
population of Filipinos 15 years and older, for a participation rate of 64.4%. This was higher
than last year’s 63.9%.
LFS results for July 2014 and 2013 excluded Leyte, which bore the brunt of typhoon Yolanda
that tore through Central Philippines in November 8-9 last year.
Most of the new jobs were created in the service and industry sectors, raising employment
rates slightly. Hiring in the service sector improved to 54% from 53.5% while employment in
the industry sector rose to 15.9% from 15.7%. On the other hand, workers in the agriculture
sector accounted for 30.1% of the country’s employed, down from last year’s 30.8%. Among the
underemployed, 17.3% were in industry, up from 16.3%, LFS results showed.
Survey results also showed that part-time workers, or those working less than 40 hours a week,
now made up 36.2% of the employed, up from 34.3%; while full-time workers, or those who
worked at least 40 hours a week, fell to 62.7% from 65%. This consequently brought down the
mean hours worked in one week to 40.9 from 40.9 from 41.8.
[Source: Business World, 09112014, 99. 1-2/SI]
(Continued from page 10)
Procedure on Minimum Wage Fixing for Domestic Workers
Any violation or non-compliance of the Order may result in the: (a) deactivation and
cancellation of ACR I-Card; (b) imposition of fines and penalties; (c) referral to the Intelligence
Division and Legal Division for investigation and institution of deportation proceedings;
(d) non-issuance of Emigration Clearance Certificate (ECC); and/or (e) denial of arrival/
departure clearances.
The BI Operations Order was issued in order to establish the accurate census of active foreign
nationals who have been granted residency status.
(Continued from page 10)
Abandonment of Work
In the case at bar, the SC held that the petitioner-employers failed to prove the alleged
abandonment of work by the respondent-employee, and affirmed the CA decision which
regarded the respondent-employee as having been constructively dismissed for the failure of
petitioners-employers to prove the alleged just cause—abandonment—for the dismissal of the
respondent-employee.
(Continued from page 3)
8
Labor and Employment News
The Employment
Compensation Commission
(ECC) has signed agreements
with 21 medical service
providers that will expand
coverage of health assistance
programs for occupationally-
disabled workers (ODW)
nationwide. The agreements
provide compensation to
employees who suffered work
-related accidents or sickness.
[Source: Manila Bulletin
National News 09092014 at p.
4]
The Department of Labor and
Employment (DOLE) has
intensified its Health and
Wellness Program by
providing free healthcare
services to its employees. The
program covers preventive
health care, health education,
and in-house medical services.
DOLE has provided three free
healthcare services—
influenza vaccination,
awareness campaign on
Vitamin D deficiency, and
medical check-up (blood
glucose screening, body mass
index determination and body
fat analysis, and body
temperature and blood
pressure check). DOLE’s
Human Resource and
Development Service has
partnered with several
pharmaceutical companies to
deliver the healthcare
(Continued on page 9)
rendered by the Labor Arbiter Reyno in favor of the petitioner, the parties entered into a
Compromise Agreement with the approval of Labor Arbiter Reyno. Under the agreement,
petitioner was to receive US$31,000 in full satisfaction of the Labor Arbiter Reyno’s decision
broken down into US$13,000 to be paid by CBB upon the signing of the agreement; US$9,000
on or before 30 June 2003; and US$9,000 on or before 30 September 2003. Further, the
agreement provided that unless and until the agreement is fully satisfied, CBB shall not: (1) sell,
alienate or otherwise dispose of all or substantially all of its assets or business; (2) suspend,
discontinue, or cease its entire, or a substantial portion of its business operations;
(3) substantially change the nature of its business; and (4) declare bankruptcy or insolvency.
CBB paid the initial amount of US$13,000, but not the next two installments as CBB ceased
operations.
Petitioner later discovered the organization of another corporation, respondent Binswanger
Philippines, Inc., claiming that this new corporation and CBB are one and the same corporation,
pointing out that CBB stands for Chesterton Blumenauer Binswanger. Invoking the doctrine of
piercing the veil of corporate fiction, petitioner prayed that an alias writ of execution be issued
against respondents Binswanger Philippines, Inc. and Keith Elliott, CBB’s former President, and
now Binswanger’s President and Chief Executive Officer (CEO). Labor Arbiter Laderas denied
petitioner’s motion for an alias writ of execution, holding that the doctrine of piercing the
corproate veil was inapplicable in the case. Petitioner filed an appeal which the NLRC granted,
reversing Labor Arbiter Laderas’ order and declared respondents jointly and severally liable
with CBB for Labor Arbiter Reyno’s decision in favor of petitioner. The respondents then
appealed to the CA which reversed the NLRC decision and reinstated Labor Arbiter Laderas’
order.
In setting aside the CA decision, the SC saw an indubitable link between CBB’s closure and
Binswanger’s incorporation. CBB ceased to exist only in name; it re-emerged in the person of
Binswanger for an urgent purpose—to avoid payment by CBB of the last two installments of its
monetary obligation to petitioner, as well as its other financial liabilities. Freed of CBB’s
liabilities, espeically that owing to petitioner, Binswanger can continue, as it did continue, CBB’s
real estate brokerage business.
(Continued from page 4)
Doctrine of piercing the veil of corporate fiction applied
Multilaw Visit to Manila
Multilaw Chairman
Charles Brooks and
Executive Director
Adam Cooke visited the
SyCipLaw Makati offices
last July 28. Brooks is a
partner at Penningtons
Solicitors LLP and took
over as chairman from
Mark Lowndes in
October 2013. Cooke, on
the other hand, was
Multilaw’s Global Head
of Development prior to
becoming executive director in May 2013. They met with the firm’s partners and counsels,
including Managing Partner Rafael A. Morales; Senior Counsels Andres G. Gatmaitan and
Llewellyn L. Llanillo; Banking, Finance and Securities Head Mia G. Gentugaya; and Employment
and Immigration Head Luisito V. Liban.
SyCipLaw is a member firm of Multilaw. For more information, please visit www.multilaw.com.
In photo (left to right): Hector M. de Leon, Jr., Maria Teresa D. Mercado-Ferrer, Leslie C. Dy, Luisito V. Liban,
Llewellyn L. Llanillo, Andres G. Gatmaitan, Adam Cooke, Charles Brooks, Rafael A. Morales, Mia G. Gentugaya,
and Marievic G. Ramos-Añonuevo.
9
services. [Source: Manila
Bulletin National News
09102401 at p. 6]
Another 40 domestic ships are
operating with world-class
labor standards after
complying with the Maritime
Labor Convention of 2006
(MLC). The ships complying
with the convention are
owned by 15 local shipping
companies, and the ships have
been issued with certificates
of compliance to the MLC
under the new Labor Laws
Compliance System. [Source:
Manila Bulletin News
08292014 at p. 4]
DOLE is helping workers
make ends meet with the
organization of “Diskwento
Caravans” all over the
country. With the Diskwento
Caravan, the government ties
up with large manufacturers
and distributors to urge them
to sell their goods and
commodities at a discounted
price. It is one of the
mechanisms of the
government to provide relief
to workers through non-wage
benefits, and a way for
workers to augment their
income and help them cope
with rising prices of basic
goods and services. [Source:
Manila Bulletin National News
09032014 at p. 6]
Labor and Employment News
(Continued from page 8)
Employment & Immigration Department
SyCip Salazar Hernandez & Gatmaitan’s Human Resource Practice Group has been renamed
Employment and Immigration Department (EID). This change was approved by the Executive
Committee on September 3, 2014.
Philip Wood’s International legal risk for banks and corporates
First Law International Conducts Training on FCPA
First Law
International
(FLI) Principal
Orlando J.
Casares
conducted a
training session
with SyCipLaw
partners and
associates on
the Foreign
Corrupt
Practices Act
(FCPA) last
August 19. The
training is a certification program conducted by FLI exclusively with its member firms.
For more information on FLI, please visit www.first-law.com.
Photo, left to right: Ferdinand Richard Michael M. Manotoc, Il-Young Choi, Francis Paolo P. Tiopianco, Diana S.
Gervacio, Rose Marie M. King-Dominguez, Marie Corinne T. Balbido, Carlos Roberto Z. Lopez, Diana Grace L.
Uy, Maria Teresa D. Mercado-Ferrer, Tracy Anne A. Ong, Arlene M. Maneja, Orlando Casares, Leslie C. Dy,
Hector M. de Leon Jr., Rafael A. Morales, and Ricardo Ma. P.G. Ongkiko.
SyCip
Salazar
Hernandez
&
Gatmaitan
hosted
Philip
Wood,
head of
Allen &
Overy’s
Global Law
Intelligence Unit, last September 18. Wood met with counsels of banks and financial
institutions to discuss his current project on international legal risk for banks and corporates.
His talk also covered the reasons for the intensification of law and the significant increases in
international legal risks, the demand for lawyers and their role in the future, as well as
forecasting the outlook for lawyers and the law.
Copies of the International legal risk for banks and corporates — volume 1 and volume 2 are
available for download from the Allen & Overy website (www.allenovery.com).
In photo (left to right:) Mia G. Gentugaya, Arlene M. Maneja, Simeon Ken R. Ferrer, Gian Sambalido, Vicente D.
Gerochi, Arlene Lapuz-Oreta, Imelda A. Manguiat, Philip Wood, Rafael A. Morales, Raymond Ibon, Ronald Allen
Abarquez, Elvin Michael L. Cruz, Rica Matute Dineros, Sherma Cecile Miranda, Noravir Gealogo, Roy Magturo,
Angelita Cortez, Ildefonso Jimenez.
Results of the Labor Force Survey (LFS) conducted by the Philippine Statistics Authority in July
2014 put the unemployment rate at 6.7%, improving from the 7.3% recorded in the same
month last year. This was equivalent to 2.78 million Filipinos, down from 2.96 million a year
earlier.
In absolute terms, the number of employed Filipinos increased by 2.8% to 38.45 million as of
that month from 37.39 million a year ago, bringing the total number of new jobs generated to
1.06 million.
Underemployment rate—the proportion of those already working but still looking for more
work or longer working hours—improved to 18.3% or 7.05 million workers from 19.2%,
equivalent to 7.17 million workers.
(Continued on page 7)
Labor Force Survey
Managing Partner: Rafael A.
Morales
Employment and
Immigration Department
(EID) Head: Luisito V. Liban
Of Counsel, Editor-in-Chief:
Juan C. Reyes, Jr.
Of Counsel: Rene Y. Soriano
Partners: Lozano A. Tan,
Dante T. Pamintuan, Leslie C.
Dy, Amer Hussein N.
Mambuay, Rodelle B. Bolante,
Marianne M. Miguel, Russel L.
Rodriguez, Marietta A.
Tibayan, Ronald Mark C. Lleno
Senior Associates: Ruben P.
Acebedo II, Maria Jennifer Z.
Barreto, Romeo D. Lumagui,
Jr., Rosalyn S. Co-Uy
Associates: Leah C. Abutan,
Austin Claude S. Alcantara,
Aldous Benjamin C. Camiso,
Easter Princess U. Castro,
Barbara Anne A. Gandionco,
Joanna Marie O. Joson, Earla
Kahlila Mikhaila C. Langit,
Roselle Jean L. Nonato, Tracy
Anne A. Ong, Emmar Benjoe B.
Panahon, Agatha Kristy F.
Ramos, Maria Viola B. Vista
Coordinators: Susan P.
An onuevo, Katherine Mae P.
Sarmiento, Eden Marie Gem B.
Silvela, Evelyn L. Valerio
Feedback and Inquiries:
Publisher’s Note: Employment & Immigration Update is published by the Employment & Immigration Department of SyCip Salazar Hernandez & Gatmaitan (SyCipLaw) as part of its
services to its clients and is not intended for public circulation to non-clients. It is intended to provide general information on legal topics current at the time of printing. Its contents do not
constitute legal advice and should in no circumstances be relied upon as such. Specific legal advice should be sought in particular matters. Reproduction of this Update or any portion thereof
is not authorized without the prior written consent of SyCipLaw.
Re-stamping of new visa imprints in the passports of foreigners who have been granted residency status
Bureau of Immigration (BI) Operations Order No. SBM-2004-035 dated 18 August 2014 has set
a period commencing on 15 September 2014 and ending on 15 December 2014, unless
extended by the Commissioner of Immigration, for foreigners granted residency status under
RA No. 7919, as amended by RA No. 8247, with old RA No. 7919 visa imprints stamped in their
valid passports or other travel documents, to report to the BI RA No. 7919 Unit, BI Main Office,
Intramuros, Manila, for the re-stamping of the new RA No. 7919 visa imprints in their valid
passports or other travel documents.
The concerned foreigners shall submit their: (a) valid passport or other travel document with
previously-stamped RA No. 7919 old visa imprint; and (b) valid Alien Certificate of Registration
Identity Card (ACR I-Card). Within 48 hours from receipt therof, the RA No. 7919 Unit and Alien
Registration Division (ARD) shall verify and confirm its authenticity and genuineness.
(Continued on page 7)
Procedure on Minimum Wage Fixing for Domestic Workers
The National Wages and Productivity Commission (NWPC) has issued NWPC Guidelines No. 1
Series of 1914 prescribing rules to govern proceedings in the fixing of minimum wage rates for
domestic workers.
Under the rules, and pursuant to the authority vested under Section 24 of RA 10361, the
Regional Tripartite Wages and Productivity Board (RTWPB) shall, without need of any petition
or directive from the NWPC, review and, if proper, determine and adjust the minimum wage
rates in the region.
The RTWPB shall conduct an annual review of the prevailing minimum wages of domestic
workers. Such review may be synchronized with the review of other wage rates involving
establishments and/or industries in the region.
(Continued on page 7)
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