I have the same problem on my laptop with 16.04
CPU i5-6600
GPU HD 530

but the situation is fixed after canceled the option
"Accelerated video output(Overlay)"

in Preference > Video > Display

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  vlc screen always on top, buggly.

Status in xserver-xorg-video-intel package in Ubuntu:

Bug description:
  I don't know  whether it's due to 15.10 or due to my laptop being a very new 
model "Asus Zenbook 305CA".
  The screen is always on top. Even if it is minimized.
  The gif below takes may some ten seconds to load.

  And in addition, the video quality is sensibly worse than it should
  be, compared to Totem video player which functions properly.

  vlc revision 2.2.1-0-ga425c42
  ubuntu 15.10

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