2014 Labor Law, Q8

As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union, the latter staged a strike. During the strike, several employees committed illegal acts. Eventually, its members informed the company of their intention to return to work. (6%)
(A) Can Lazo Corporation refuse to admit the strikers?
(B) Assuming the company admits the strikers, can it later on dismiss those employees who committed illegal acts?
(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to admit the replaced strikers?

Quick check

Does an employer's hiring of replacement workers during a strike justify refusing to readmit returning strikers?

What is the legal effect of striking employees unconditionally offering to return to work following a bargaining deadlock?

Does readmitting striking employees prevent the employer from later dismissing workers who committed illegal acts during the strike?

What requirement must an employer satisfy before terminating an employee for committing illegal acts during a strike?

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Under Philippine labor law, what happens to the employment status of regular workers while participating in a lawful strike?

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1. Strike Readmission Obligation
Under Article 279 of the Labor Code, participation in a lawful strike does not sever the employment relationship. When striking employees unconditionally offer to return to work, the employer is legally obligated to readmit them to their former or substantially equivalent positions. Refusing to readmit returning strikers without valid legal justification constitutes illegal dismissal. The employer-employee relationship is merely suspended during the strike, and workers retain their security of tenure upon their decision to end the economic action and return to work.

2. Strike Replacement Workers
Hiring replacement workers during a prolonged strike does not extinguish the employment rights of striking employees or authorize an employer to refuse their readmission. Replacement workers are hired on a temporary basis to maintain business operations during the labor dispute. When striking employees decide to return to work, the employer cannot cite the presence of replacement workers as a ground to deny reinstatement. The returning regular strikers enjoy preference over temporary replacement hires, and the employer must readmit the original workforce.

3. Illegal Strike Acts
The commission of illegal acts or violence during a strike does not result in the automatic termination of employment or justify a blanket refusal to readmit all strikers. Readmitting striking workers does not constitute a waiver of the employer's right to discipline or dismiss employees who engaged in unlawful conduct. However, to validly terminate employees responsible for illegal strike acts, the employer must observe statutory procedural due process, issue notice of charges, afford an opportunity to explain, and substantiate individual participation in unlawful acts.

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