Upon compliance with the legal requirements on the conduct of a strike, Navarra Union staged a strike against Newfound Corporation on account of a collective bargaining deadlock. During the strike, some members of Navarra Union broke the windows and punctured the tires of the company-owned buses. The Secretary of Labor and Employment assumed jurisdiction over the dispute.
(a) Should all striking employees be admitted back to work upon the assumption of jurisdiction by the Secretary of Labor and Employment? Will these include striking employees who damaged company properties? (2.5%)
(b) May the company readmit strikers only by restoring them to the payroll? (2.5%)
Suggested answer only. Not an official answer and not legal advice.
(a) **Yes**, all strikers, including those who damaged property, must be readmitted. (b) **No**, the company cannot readmit strikers merely on payroll. Under Art. 278(g) of the Labor Code, an assumption order obligates
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Quick check
What is the legal effect of an assumption of jurisdiction order issued by the Secretary of Labor and Employment under Article 278(g)?
An assumption order automatically enjoins the strike and mandates immediate return to work for all strikers.
Does an assumption of jurisdiction order require the readmission of strikers who allegedly damaged company property during the strike?
Return-to-work orders apply indiscriminately to all striking workers, without prejudice to subsequent disciplinary action.
Under Manila Diamond Hotel v. Manila Diamond Hotel Employees Union, what is the general rule regarding readmission of strikers under an assumption order?
Actual physical readmission under pre-strike terms is the general rule under an assumption order.
When is payroll reinstatement permissible as an exception under an assumption of jurisdiction order?
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What remedy remains available to an employer against strikers who committed illegal acts during an assumed strike?
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Learn more about these topics
1. Assumption of Jurisdiction
Under Article 278(g) of the Labor Code, when a labor dispute causes or threatens to cause a strike in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute. The assumption order automatically enjoins any intended or ongoing strike and mandates all striking workers to immediately return to work under the same terms and conditions prevailing prior to the strike. Compliance with the return-to-work order is mandatory and immediate for both employer and employees upon receipt of notice.
2. Scope of Return
The automatic return-to-work directive accompanying an assumption order applies indiscriminately to all striking workers, including employees accused of committing illegal acts or property damage during the strike. The employer cannot refuse physical readmission to specific strikers under the guise of pending disciplinary investigations or criminal charges. While readmission is mandatory, the employer retains the legal right to institute separate administrative or criminal proceedings against erring strikers without violating the return-to-work order or committing an unfair labor practice.
3. Actual Versus Payroll
Under established labor jurisprudence, particularly Manila Diamond Hotel v. Manila Diamond Hotel Employees Union, a return-to-work order issued pursuant to an assumption of jurisdiction requires actual physical readmission of striking employees. Reinstatement on payroll is purely an exception and is permissible only under extraordinary circumstances, such as when physical reinstatement is rendered impossible by severe operational disruption or extreme hostility. In the absence of special or exceptional grounds, an employer's unilateral refusal to physically readmit returning strikers constitutes a direct violation of the statutory assumption order.