The law should always prevail in any labor dispute unless the same law stipulates the exemption that is the subject of the dispute. Employment contract should abide by the labor law..any stipulation that is not in accordance with the law becomes invalid and unenforceable. The problem is not in the law or the contract... its on the way employees and employers seek to protect themselves. And it is the same reason why the labor law exist. Employment contracts establishes the relationship between the employee and the employer.. now to regulate this relationship... we have the labor law. All employees should be aware of their rights embodied under the labor law.