CHAPTER 1

                       FUNDAMENTAL CONCEPTS

1. THE CONCEPT OF LABOR. In its broadest sense, labor includes every possible human exertion, mental or physical, and even spiritual. In a more limited sense, it refers to any bodily or intellectual exertion done wholly or partly for a purpose other than the pleasure derived from its performance (51 C.J.S. 470-7 1).

                 In Philippine law, labor is sometimes used to embrace all work without pretence to whether it is done by an employee for an employer or not. In this sense, the work of agricultural tenants has been included within the general term. This is because they physically toil for their livelihood, and work to some extent for their landowners. Thus, the old labor law, Comm. Act. 103, which provided for labor organizations, lumped together laborers, employees and tenants. This same law referred also to agricultural workers and tenants, and even impliedly recognized their rights to strike.

                  In general, as used in Philippine law, the concept of labor includes in its broad sense physical and mental work performed by an employee, and physical work performed by anyone, whether employed by another or not. The present Labor Code, PD 442, carries in its Preliminary ‘flUe a Chapter (II) on Emancipation of Tenants, and identifies tenant- farmers as “a vital part of the labor force” (Art. 8, LC). This is an application of the general concept of this term.

2. LABOR LAW DEFINED. The evolution of Philippine labor law has substantially changed the original definition of the term, particularly as to the elements that comprise the law. In light of this development, a new definition of labor law may be framed as follows:

                 “Labor law is that body of statutes, rules and doctrines that defines State policies on labor and employment, and governs the rights and duties of workers and employers respecting terms and conditions of employment by prescribing certain standards therefore, or by establishing a legal framework within which better terms and conditions of work could be obtained though collective bargaining or other concerted activity.”

                   This analytical definition reflects the updated concept of labor law within the purview of the Philippine Constitution and the Labor Code. Since it also embodies the definitions of the elements of labor law -- as explained below --it also assumes a utilitarian character.

3. ELEMENTS OF LABOR LAW. Based on the definitions given, the elements comprising labor law are apparent, namely: a) labor policies; b) labor standards law; and c) labor relations law. These are explained seriatim, in this way.

a) Labor Policies. These are principles or guidelines that define State policies regarding labor and employment. Although these policies do not govern the relations per se between workers and employers, they represent a new dimension that is an integral part of labor law. Labor policies may be classified into Constitutional policies (e.g. Au XIII, Sec. 3, Constitution), and statutory policies (e.g. Books I and II, Labor Code).

b) Labor Standards Law. From the definition of labor law, as given, one may cull a definition of labor standards law, to wit; “It is that body of statutes, rules and doctrines that governs the rights and duties of workers and employers respecting terms and conditions of employment by prescribing certain standards therefore,” These standards, whether maximum or minimum, serve as bases of the rights and duties of workers and employers. Examples of labor standards laws are Book III- Conditions of Employment, Labor Code, as well as the decrees on Cost of Living Allowance (PD 525) and on 13th Month Pay (PD 851).

c) Labor Relations Law. Our given definition of labor law also contains a working definition of labor relations law. This can be collated from these words, “It is that body of statutes, rules, principles and doctrines that governs the rights and duties of workers and employers by establishing a legal framework within which better terms and conditions of work could be obtained through collective bargaining or other concerted activity. “This element of labor law sets the legal parameters whereby workers may undertake concerted activities to secure better conditions of employment than those prescribed by labor standards law. The prime example of this element of labor law is found in Book V-Labor Relations, Labor Code, and its amendatory laws.

4. RELATIONSHIPS AND DISTINCTIONS. These elements of labor law are interrelated in that each is complementary to the others. All together, they present the legal limits within which labor and employment acts may be justified.Labor Policies set the guidelines to be implemented by the other two.
     

                    Labor Standards laws prescribe the demarcations in terms and conditions of employment, and are essentially substantive. Their purpose is either protective (e.g. law on hours of work, law on weekly rest periods) or ameliorative (e.g. minimum wage laws, law on holiday pay).

                     Labor Relations laws provide the procedures that govern the methods by which terms and conditions of work over and above the &marcations as set by labor standards laws may be obtained, hence they are largely procedural in character (e.g. law on labor organizations, law on collective bargaining).
Labor standards, being fixed by law, may be found in the law itself whereas terms and conditions of work beyond these standards obtained under labor relations laws are not found in the law itself, but in collective bargaining agreements, arbitration awards and decisions.

5. SOCIAL LAW. Social law may be defined as “that body of rules and statutes aimed at promoting the general welfare of all the people, with special reference to labor.”

                    The labor orientation of social laws has a two-fold justification. Firstly because labor constitutes the great majority (about 85 percent) of the population, hence any effort to achieve the well-being of all the people, or at least the greatest good for the greatest number should be directed toward this sector. This is the quantitative reason. Secondly, since the aim is to promote the welfare of society, any attempt to strengthen society should be addressed toward its weakest link, which is labor This is the qualitative reason.
                      Hence, while social laws --like the SSS law, GSIS law, Medicare Act---have workers as their direct beneficiaries, their ultimate end is the well-being of society in general.

6. LABOR LAW AND SOCIAL LAW COMPARED. Both labor law and social law share the same objective, which is the promotion of social justice. Social law is the broader concept, for while labor law seeks to improve the well-being of the lower classes of society, i.e. labor, social law tries to ensure the welfare and economic security of all the people, or if this is not possible, to bring about “the greatest good to the greatest number.” 1 In this context, it may be said that labor law is a part of social law, and it is by nature a social law.
                   There are, however, differences between the two, namely:

a) As to object--Labor law seeks to improve the well-being of labor in particular, social law aims to promote the welfare of society in general.
b) As to subject matter--Labor law deals on subjects of proximate and direct interest to workers (e.g. wages, hours of work, etc.); social law treats of matters of remote or indirect interest to workers (e.g. employee compensation, social security etc.)
c) As to application--Labor law provides benefits to workers actively employed; social law is concerned the those whose employment is interrupted by sickness, disability, death, retirement, or other causes.

7. SOURCES OF THE POWER TO ENACT LABOR LAWS.
                    The State’s power to enact labor laws springs from two basic sources; the Constitution and Police Power
The Constitution lays down as a State policy that “The State arms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.” (Art. II, Sec. 18).

                   In its Protection to Labor clause (Art. XIII. Sec. 3), the Constitution also provides, inter alia “The State shal1 afford full protection to labor, local and overseas, organized or unorganized, and promote full employment and equality of employment opportunities for all. .
                   “The State shall regulate the relations between woricers and employers
                  .“ From these passages atone, it is evident that the Constitution grants to the State the power to enact laws that will carry out these policies.
                     The other source is the inherent power of the State known as Police Power. This may be defined as “The power of the State to enact laws and prescribe regulations that will promote the health, morals, education, good order, safety, and general welfare of the people.” (Primicias vs. Fugoso, 80 Phil. 71).
                      Recent jurisprudence has formulated a newer definition of Police Power as “The inherent power of the State to enact legislation that may interfere with personal liberty and property in order to promote the general welfare.” (PASEI vs. Drilon, 163 SCRA 386).
                          Even if there were no provisions in the Constitution concerning labor, the State would still have the power to enact labor laws by virtue of its Police Power which underlies the Constitution, and is as enduring as the State itself.

8. THE RATIONALE OF LABOR LAWS. Although the rights and duties arising from labor relationships are basically contractual in nature, these are not governed by the general law on obligations and contracts (Book IV, Civil Code). The reason for this is enunciated by the Civil Code itself, thusly:
                 “The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective braining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.” (Art. 1700, Civil Code)
The special laws referred to are known collectively as labor laws.

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