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B. State policy towards labor

1. Security of tenure

a. Entitlement to security of tenure

Workers shall be entitled to security of tenure. (Section 3, Article XIII, 1987 Constitution)

2. Social justice

a. Afford full protection to Labor

The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. (Ibid.)

b. Entitlement to security of tenure, humane conditions of work, living wage

Workers shall be entitled to security of tenure, humane conditions of work, and a living wage. (Ibid.)

c. Participation in policy and decision-making processes

They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. (Ibid.)

d. Promote principle of shared responsibility

The State shall promote the principle of shared responsibility between workers and employers. (Ibid.)

e. Promote preferential use of voluntary modes of settling disputes, industrial peace

The State shall promote the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. (Ibid.)

f. Recognize rights of labor and rights of enterprises

The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth. (Ibid.)

3. Equal work opportunities

a. Promote full and equality of employment

The State shall promote full employment and equality of employment opportunities for all. (Ibid.)

4. Right to self-organization and collective bargaining

a. Guarantee self-organization, collective bargaining and negotiations, concerted activities, right to strike

The state shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. (Ibid.)

5. Construction in favor of labor

a. Civil Code

Article 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. (Civil Code)

b. Labor Code

Article 4. Construction in Favor of Labor. All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. (Labor Code)

c. Jurisprudence: equipoise rule

When the evidence in labor cases is in equipoise, doubt is resolved in favor of the employee. (Hubilla v. HSY Marketing Ltd., Co., G.R. No. 207354, 10 January 2018)

6. Burden of proof and quantum of evidence

a. Shifts between employer and employee depending on circumstances

Notably, in determining the employee’s entitlement to monetary claims, the burden of proof is shifted from the employer or the employee, depending on the monetary claim sought. (Minsola v. New City Builders, Inc., G.R. No. 207613, 31 January 2018)

b. When on employer

In claims for payment of salary differential, service incentive leave, holiday pay and 13th month pay, the burden rests on the employer to prove payment. This likewise stems from the fact that all pertinent personnel files, payrolls, records, remittances and other similar documents – which will show that the differentials, service incentive leave and other claims of workers have been paid – are not in the possession of the worker but are in the custody and control of the employer. (Ibid.)

c. When on employee

On the other hand, for overtime pay, premium pays for holidays and rest days, the burden is shifted on the employee, as these monetary claims are not incurred in the normal course of business. It is thus incumbent upon the employee to first prove that he actually rendered service in excess of the regular eight working hours a day, and that he in fact worked on holidays and rest days. (Ibid.)

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