I.
BASIC PRINCIPLES AND POLICIES productivity and economic growth; hence, the need to weigh and balance the rights and
1. CONSTITUTIONAL PROVISIONS
Article II
SEC. 9.
The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide
adequate social services, promote full employment, a rising standard of living, and an
improved quality of life for all.
SEC. 10.
The State shall promote social justice in all phases of national development.
General definition
Social Justice is neither communism, nor despotism, nor atomism, nor anarchy, but the
humanization of laws and the equalization of social and economic forces by the State so that
justice in its rational and objectively secular conception may at least be approximated.
[Calalang vs. Williams, 1940]
Welfare State
The welfare state concept is found in the constitutional clause on the promotion of social
justice to ensure the well-being and economic security of all the people, and in the pledge of
protection to labor with specific authority to regulate the relations between landowners and
tenants and between labor and capital. [Alalayan vs. National Power Corporation, 1968]
SEC. 11.
The State values the dignity of every human person and guarantees full respect for human
rights.
SEC. 13.
The State recognizes the vital role of the youth in nation-building and shall promote and
protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in
the youth patriotism and nationalism, and encourage their involvement in public and civic
affairs.
SEC. 14.
The State recognizes the role of women in nation-building, and shall ensure the fundamental
equality before the law of women and men.
SEC. 18.
The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.
SEC. 20.
The State recognizes the indispensable role of the private sector, encourages private enterprise,
and provides incentives to needed investments.
Limits of Social Justice
Social justice should be used only to correct an injustice. It must be founded on the recognition
of the necessity of interdependence among diverse units of a society, and of the protection that
should be equally and evenly extended to all groups as a combined force in our social and
economic life. As partners in nation-building, labor and management need each other to foster
welfare of both the employee and employer. [Agabon vs. NLRC, 2004]
Liberty of Contract/Laissez Faire
The prohibition to impair the obligation of contracts is not absolute and unqualified. In spite of
the constitutional prohibition and the fact that both parties are of full age and competent to
contract, it does not necessarily deprive the State of the power to interfere where the parties do
not stand upon an equality, or where the public health demands that one party to the contract
shall be protected against himself. [Leyte Land Transportation Co. vs. Leyte Farmers &
Workers Union, 1948]
The Constitution is primarily a document of social justice, and although it has recognized the
importance of the private sector, it has not embraced fully the concept of laissez-faire or relied
on pure market forces to govern the economy. [Employees Confederation of the Philippines vs.
NWPC, 1991]
Article III
SEC. 1.
No person shall be deprived of life, liberty, or property without due process of law, nor shall
any person be denied the equal protection of the laws.
Due Process
Due process requirements are two-fold substantive [dismissal should be for a valid and
authorized cause as provided by law] and procedural (due notice and hearing). [Salaw vs.
NLRC, 1991]
To constitute valid dismissal from employment, two requisites must concur:
1. The dismissal must be for just authorized cause;
2. The employee must be afforded an opportunity to be heard and to defend himself.
Labor as Property Right
Ones employment is a property right, and the wrongful interference therewith is an actionable
wrong. [Sibal vs. Notre Dame of Greater Manila, 1990]
SEC. 4.
No law shall be passed abridging the freedom of speech, of expression, or of the press, or the
right of the people peaceably to assemble and petition the Government for redress of
grievances.
The right to assemble:
The right of peaceable assembly is a right cognate to those of free speech and free press and is
equally fundamental (de jonge vs Oregon, 1937)
In a case where employees were dismissed for serious misconduct or wilful disobedience, the
SC ruled that the element of wilfulness characterized by a perverse mental attitude in
disobeying the employers order as to warrant the ultimate penalty of dismissal was lacking. It
said that wearing armbands and putting up placards to express ones views without violating
the rights of third parties, are legal per se and even constitutionally protected. (bascon vs ca,
GR 144899, 02-05-2004)
SEC. 7.
The right of the people to information on matters of public concern shall be recognized. Access to
official records, and to documents, and papers pertaining to official acts, transactions, or decisions,
as well as to government research data used as basis for policy development, shall be afforded the
citizen, subject to such limitations as may be provided by law.
SEC. 8.
The right of the people, including those employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law shall not be abridged.
The right to form associations
The right to form associations shall not be impaired except through a valid exercise of police power.
(Bernas, the 1987 constitution comprehensive reviewers)
SEC. 4.
No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right
of the people peaceably to assemble and petition the Government for redress of grievances.
SEC. 10.
No law impairing the obligation of contracts shall be passed.
Non-impairment of contracts
A law which changes the terms of a legal contract between parties, either in the time or mode or
performance, or imposes new conditions, or dispenses with those expressed, or authorizes for its
satisfaction something different from that provided in its terms, is a law which impairs the
obligation of a contract and is null and void. (Clemens vs nolting 1922)
Compare with liberty of contract:
The prohibition to impair the obligation of contracts is not absolute and unqualified in spite of the
constitutional prohibition and the fact that both parties are of full age and competent to contract, it
does not necessarily deprive the state of the power to interfere where the parties do not stand upon
an equality, or where the public health demands that one party to the contract shall be protected
against himself. (leyte land transportation co. vs leyte farmers & workers union 1948)
SEC. 16.
All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-
judicial, or administrative bodies.
SEC. 18.
(2) No involuntary servitude in any from shall exist except as punishment for a crime whereof the
party shall be duly convicted.
ARTICLE XIII
Social Justice and Human Rights
SEC. 1.
The Congress shall give highest priority to the enactment of measures that protect and enhance the
right of all the people to human dignity, reduce social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and
its increments.
SEC. 2.
The promotion of social justice shall include the commitment to create economic opportunities
based on freedom of initiative and self-reliance.
SEC. 3.
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. It shall guarantee the
rights of all workers to self-organizations, 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. The State shall promote the principle
of shared responsibility between workers and employers and the preferential use of voluntary modes
in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to
foster industrial peace. 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.
Participation in Decision-Making Process
Verily, a line must be drawn between management prerogatives regarding business operations per se
and those which affect the rights of the employees. In treating the latter, management should see to
it that its employees are at least properly informed of its decisions or modes action. Indeed,
industrial peace cannot be achieved if the employees are denied their just participation in the
discussion of matters affecting their rights. [Phil. Airlines Inc. vs. NLRC, 1993]
Management and the Constitution:
Management Function/Prerogative
The law in protecting the rights of the employees authorizes neither oppression nor self-destruction
of the employer. It should be made clear that when the law tilts the scale of justice in favor of labor,
it is but a recognition of the inherent economic inequality between labor and management. Never
should the scale be so tilted if the result is an injustice to the employer. [Phil. Geothermal Inc. vs.
NLRC, 1994]
This Court held that the employers right to conduct the affairs of his business according to its own
discretion and judgment, is well-recognized. An employer has a free reign and enjoys wide latitude
of discretion to regulate all aspects of employment. This is a management prerogative, where the
free will of management to conduct its own affairs to achieve its purpose takes form. [Torreda vs.
Toshiba, 2007]
But, like other rights, there are limits thereto. The managerial prerogative to transfer personnel must
be exercised without grave abuse of discretion, bearing in mind the basic elements of justice and fair
play. Having the right should not be confused with the manner in which the right is exercised. [Tinio
vs. CA, 2007]
This Court declared that it recognizes the exercise of management prerogatives and it often declines
to interfere with the legitimate business decisions of the employer. xxx However, as expressed in
PAL v NLRC, the privilege is not absolute, but subject to exceptions. One of these exceptions is
when the Secretary of Labor assumes jurisdiction over labor disputes involving industries
indispensable to the national interest under Article 263(g) of the Labor Code. [University of
Immaculate Concepcion Inc v Sec of Labor, 2005]
SEC. 13.
The State shall establish a special agency for disabled persons for rehabilitation, self-development
and self-reliance, and their integration into the mainstream of society.
Women

SEC. 14.
The State shall protect working women by providing safe and healthful working conditions, taking
into account their maternal functions, and such facilities and opportunities that will enhance their
welfare and enable them to realize their full potential in the service of the nation.

2. CIVIL CODE

A) Art. 19. Every person must, in the exercise of his rights and in the performance of his duties, act
with justice, give everyone his due, and observe honesty and good faith.

b) Art. 1700. The relations between capital and labor are not merely contractual. They are so
impressed with public interest that labor contracts must yield to the common good. Therefore, such
contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts,
closed shop, wages, working conditions, hours of labor and similar subjects.

c) Art. 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.

Contracts

Under the Civil Code, contracts of labor are explicitly subject to the police power of the state
because they are not ordinary contracts but are impressed with public interest. Inasmuch as in this
particular instance the contract in question would have been deemed in violation of pertinent labor
laws, the provisions of said laws would prevail over the terms of the contract, and private
respondent would still be entitled to overtime pay. [PAL Employees Savings And Loan Assn., Inc.
vs. NLRC, 1996]

Liberal Construction

While the terms and conditions of a CBA constitute the law between the parties, it is not however,
an ordinary contract to which is applied the principles of law governing ordinary contracts. A CBA,
as a labor contract within the contemplation of Article 1700 of the Civil Code of the Philippines
which governs the relations between labor and capital, is not merely contractual in nature but
impressed with public interest, thus, it must yield to the common good. As such, it must be
construed liberally rather than narrowly and technically, and the courts must place a practical and
realistic construction upon it, giving due consideration to the context in which it is negotiated and
purpose which it is intended to serve. [Cirtek Employees Labor Union-FFW v Cirtek Electronics,
2010]
3. LABOR CODE placement.
GENERAL PROVISIONS
c. "Private fee-charging employment agency" means any person or entity engaged in
recruitment and placement of workers for a fee which is charged, directly or indirectly,
Art. 1. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines". from the workers or employers or both.

Art. 2. Date of effectivity. This Code shall take effect six (6) months after its promulgation. d. "License" means a document issued by the Department of Labor authorizing a person or
entity to operate a private employment agency.

Art. 3. Declaration of basic policy. The State shall afford protection to labor, promote full employment, e.
ensure equal work opportunities regardless of sex, race or creed and regulate the relations between
workers and employers. The State shall assure the rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane conditions of work.
f.
Art. 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.
g.
Art. 5. Rules and regulations. The Department of Labor and other government agencies charged with
the administration and enforcement of this Code or any of its parts shall promulgate the necessary h.
implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days
after announcement of their adoption in newspapers of general circulation. i.
Art. 6. Applicability. All rights and benefits granted to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A, November 1, 1974)
"Private recruitment entity" means any person or association engaged in the recruitment
and placement of workers, locally or overseas, without charging, directly or indirectly,
any fee from the workers or employers.
"Authority" means a document issued by the Department of Labor authorizing a person
or association to engage in recruitment and placement activities as a private recruitment
entity.
"Seaman" means any person employed in a vessel engaged in maritime navigation.
"Overseas employment" means employment of a worker outside the Philippines.
"Emigrant" means any person, worker or otherwise, who emigrates to a foreign country
by virtue of an immigrant visa or resident permit or its equivalent in the country of
destination.

II. Recruitment and Placement

Art. 12. Statement of objectives. It is the policy of the State:
a. To promote and maintain a state of full employment through improved manpower
training, allocation and utilization;
b. To protect every citizen desiring to work locally or overseas by securing for him the best
possible terms and conditions of employment;
c. To facilitate a free choice of available employment by persons seeking work in
conformity with the national interest;
d. To facilitate and regulate the movement of workers in conformity with the national
interest;
e. To regulate the employment of aliens, including the establishment of a registration and/or
work permit system;
f. To strengthen the network of public employment offices and rationalize the participation
of the private sector in the recruitment and placement of workers, locally and overseas, to
serve national development objectives;
g. To insure careful selection of Filipino workers for overseas employment in order to
protect the good name of the Philippines abroad.

Art. 13. Definitions.

a. "Worker" means any member of the labor force, whether employed or unemployed.

b. "Recruitment and placement" refers to any act of canvassing, enlisting, contracting,

transporting, utilizing, hiring or procuring workers, and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether for profit
or not: Provided, That any person or entity which, in any manner, offers or promises for a
fee, employment to two or more persons shall be deemed engaged in recruitment and
Art. 18. Ban on direct-hiring. No employer may hire a Filipino worker for overseas employment
except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision.
Art 18: BAN ON DIRECT HIRING
GR: Direct hiring of Filipino workers for overseas EENT is not allowed
Exceptions:
1. Members of Diplomatic corps;
2. International organizations;
3. Other employers as may be allowed by DOLE; and
4. Name hires individual workers who are able to secure contracts for overseas EENT on
their own efforts and representations w/o assistance/participation of any agency. Their
hiring nonetheless, shall pass through the POEA for processing purposes
Rationale of the Prohibition
1. To assure the best possible terms & conditions of work to the EE; and
2. To assure the foreign EER that he hires only qualified Filipino workers
Art. 40. Employment permit of non-resident aliens. Any alien seeking admission to the Philippines
for employment purposes and any domestic or foreign employer who desires to engage an alien for
employment in the Philippines shall obtain an employment permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant employer after a
determination of the non-availability of a person in the Philippines who is competent, able and willing
at the time of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be issued
upon recommendation of the government agency charged with the supervision of said registered
enterprise.
Art. 41. Prohibition against transfer of employment.
a) After the issuance of an employment permit, the alien shall not transfer to another job or
change his employer without prior approval of the Secretary of Labor.
b) Any non-resident alien who shall take up employment in violation of the provision of this
Title and its implementing rules and regulations shall be punished in accordance with the
provisions of Articles 289 and 290 of the Labor Code.
c)
In addition, the alien worker shall be subject to deportation after service of his sentence.
Art. 42. Submission of list. Any employer employing non-resident foreign nationals on the effective
date of this Code shall submit a list of such nationals to the Secretary of Labor within thirty (30) days
after such date indicating their names, citizenship, foreign and local addresses, nature of employment
and status of stay in the country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.
EMPLOYMENT OF NON-RESIDENT ALIENS
Alien Employment Permit (AEP) required for entry into the country for employment purposes and
is issued after determination of the non-availability of a person in the pH who is competent, able and
willing at the time of application to perform the services for w/c the alien is desired.
All foreign nationals who intend to engage in gainful EENT in the PH shall apply for AEP
Employment Permit Required
1. all foreign nationals seeking admission to the PH for the purpose of EENT;
2. all non-resident foreign nationals already working in the PH;
3. non-resident foreign nationals admitted to the PH on non-working visas and who wish to
seek EENT; and
4. missionaries or religious workers who intend to engage in gainful EENT.
Note: AEP should be secured regardless of the source of compensation and duration of the EENT,
whether the EENT is part-time or temp.
An AEP is issued based on the ff:
1. Compliance by the applicant EER or the foreign national w/ the substantive & documentary
requirements;
2. Determination of DOLE Sec that there is no available Filipino national who is competent,
able and willing to do the job for the EER; and
3. Assessment of the DOLE Sec that the EENT of the foreign national will redound to national
benefit
Note: Understudy Training Program is no longer a requirement in the issuance of AEP and the EEr
has now the option to implement transfer of technology.
Requisite for EENT of Resident Aliens:
Immigrants & resident aliens are not required to secure a working permit. They are required to
secure their Alien Employment Registration Cert (AERC)
Exemption from Permit
1. All members of the Diplomatic service and foreign govt officials accredited by and
w/ reciprocity arrangement w/ the Ph govt;
2. Officers and staff of international orgs of w/c the PH is a member, and their legitimate
spouses desiring to work in the PH;
3. Foreign nationals elected as members of Governing Board who do not occupy any
other position, but have only voting rights in the corp;
4. All foreign nationals granted exemption by law;
5. Owners & representatives of foreign nationals whose companies are accredited by the
POEA who come to the PH for a limited period and solely for the purpose of
interviewing Filipino applicants for EENT abroad;
6. Foreign nationals who come to the PH to teach, present and/or conduct research
studies in univs and colleges as visiting, exchange or adjunct professors under formal
agreements bet the univs or colleges in the PH an foreign univs or colleges; or bet the
Ph govt and foreign govt; provided that the exemption is on a reciprocal basis; and
7. Resident foreign nationals.
Grounds for denial of Application of AEP
1. Misrepresentation of facts in the application;
2. Submission of falsified docs;
3. The foreign national has a derogatory record; or
4. Availability of a Fil who is competent, able and willing to the job intended for the alien.

Grounds for suspension of AEP

1. The continued stay of the foreign national my result in damage to the interest of the industry
of the country; and
2. the EENT of the alien is suspended by the EER or by the order of the court

Grounds for revocation of AEP

1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was issued;
2. Misrepresentation of facts in the application;
3. Submission of falsified docs;
4. Meritorious objection or information against the EENT of foreign national as determined
by the Regional Dir;
5. Foreign national has a derogatory record; and
6. EER has terminated the EENT of the foreign national.

Validity of EENT Permit

1 yr, unless the EENT contract, consultancy services or other modes of engagement provides
otherwise, w/c shall in no case exceed 5yrs

fine for working w/o or with an expired AEP P10K for every year or a fraction thereof.

Rule on Nationalized Business

GR: Foreigners may NOT be employed in certain nationalized business.
1. Anti-Dummy Law 2-A prohibits the EENT of aliens in entities engaged in business whose
exercise or enjoyment is reserved only to Fils or to corporations or assocs whose capital
should be at least 60% Fil-owned.
2. Authority to operate a public utility or to develop, exploit, and utilize natural resources can
be granted only to Philippine Citizens or to corporations or associations at least 60% owned
by a Filipino.
3. Financing companies (60% owned by the Filipino)
4. Mass media enterprises can be owned and managed only by Filipinos or
corporations/associations owned by Filipino (under Art. Xvi sec. 11 constitution)

Exceptions:
1. Where the Sec of Justice specifically authorizes the EEnt of technical personnel;
2. Aliens who are members of the Board of directors of corps in proportion to their allowable
participation in the capital of such entities; and
3. Enterprises registered under the Omnibus Investment Code in case of technical,
supervisory or advisory positions, but for a limited pd.

Art 41. PROHIBITION AGAINST TRANSFER OF EENT

1. Aliens shall not transfer to another job or change his EER w/o prior approval of the Sec of Labor;
2. Non-resident aliens shall not take up EENT in violation of the provisions of the Code.

Note: Violations of the abovementioned acts will subj the alien to the punishment in Art 289 & 290
and to deportation after service of sentence
Art. 135. Discrimination prohibited. It shall be unlawful for any employer to discriminate against
any woman employee with respect to terms and conditions of employment solely on account of her
sex.
The following are acts of discrimination:
a) Payment of a lesser compensation, including wage, salary or other form of remuneration
and fringe benefits, to a female employees as against a male employee, for work of equal
value; and
b) Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.

Criminal liability for the willful commission of any unlawful act as provided in this Article or any
violation of the rules and regulations issued pursuant to Section 2 hereof shall be penalized as provided
in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for
money claims, which may include claims for damages and other affirmative reliefs. The actions
hereby authorized shall proceed independently of each other. (As amended by Republic Act No. 6725,
May 12, 1989)

Art. 136. Stipulation against marriage. It shall be unlawful for an employer to require as a condition
of employment or continuation of employment that a woman employee shall not get married, or to
stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned
or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee
merely by reason of her marriage.

Art. 137. Prohibited acts.

a) It shall be unlawful for any employer:
1) To deny any woman employee the benefits provided for in this Chapter or to
discharge any woman employed by him for the purpose of preventing her from
enjoying any of the benefits provided under this Code.
2) To discharge such woman on account of her pregnancy, or while on leave or in
confinement due to her pregnancy;
3) To discharge or refuse the admission of such woman upon returning to her work
for fear that she may again be pregnant.

Art. 138. Classification of certain women workers. Any woman who is permitted or suffered to
work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or similar
establishments under the effective control or supervision of the employer for a substantial period of
time as determined by the Secretary of Labor and Employment, shall be considered as an employee
of such establishment for purposes of labor and social legislation.
Art. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight
(8) hours a day.
Art. 84. Hours worked. Hours worked shall include:
a) all time during which an employee is required to be on duty or to be at a prescribed
workplace; and
b) all time during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as hours worked.
SECTION 5. Regular working hours. The regular working hours of any person covered by this
Rule shall not be more than eight (8) hours in any one day nor more than forty (40) hours in any one
week.
For purposes of this Rule:
A "day" shall mean a work day of twenty-four (24) consecutive hours beginning at the
same time each calendar year.
A "week" shall mean the work of 168 consecutive hours, or seven consecutive 24-hour
work days, beginning at the same hour and on the same calendar day each calendar
week.
SECTION 6. Regular working days. The regular working days of covered employees shall not be
more than five days in a work week. The work week may begin at any hour and on any day, including
Saturday or Sunday, designated by the employer.
CODAL
Art. 97. Definitions. As used in this Title:
a) "Person" means an individual, partnership, association, corporation, business trust, legal
representatives, or any organized group of persons.
b) "Employer" includes any person acting directly or indirectly in the interest of an employer in
relation to an employee and shall include the government and all its branches, subdivisions and
instrumentalities, all government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
c) "Employee" includes any individual employed by an employer.
d) "Agriculture" includes farming in all its branches and, among other things, includes cultivation
and tillage of soil, dairying, the production, cultivation, growing and harvesting of any
agricultural and horticultural commodities, the raising of livestock or poultry, and any practices
performed by a farmer on a farm as an incident to or in conjunction with such farming operations,
but does not include the manufacturing or processing of sugar, coconuts, abaca, tobacco,
pineapples or other farm products.
e) "Employ" includes to suffer or permit to work.
f) "Wage" paid to any employee shall mean the remuneration or earnings, however designated,
capable of being expressed in terms of money, whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of calculating the same, which is payable by an
employer to an employee under a written or unwritten contract of employment for work done or
to be done, or for services rendered or to be rendered and includes the fair and reasonable value,
as determined by the Secretary of Labor and Employment, of board, lodging, or other facilities
customarily furnished by the employer to the employee. "Fair and reasonable value" shall not
include any profit to the employer, or to any person affiliated with the employer.

Art. 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic service
and persons working in their respective homes in needle work or in any cottage industry duly
registered in accordance with law.
MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural
employees and workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No.
6727, June 9, 1989).
Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be
construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed
at the time of promulgation of this Code.
Art. 101. Payment by results.
1) The Secretary of Labor and Employment shall regulate the payment of wages by results,
including pakyao, piecework, and other non-time work, in order to ensure the payment of
fair and reasonable wage rates, preferably through time and motion studies or in
consultation with representatives of workers and employers organizations.
PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall pay the wages of an employee by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even
when expressly requested by the employee.
LEGAL TENDER
Such currency which may be used for the payment of all debts, whether private or public.
The kind of currency which a debtor can legally compel a creditor to accept in payment of a
debt in money when tendered by the debtor in the right amount.
Legal tender of the Philippines would be all notes and coins issued by the Central Bank.
Payment of wages by check or money order shall be allowed when such manner of payment is
customary on the date of effectivity of this Code, or is necessary because of special circumstances as
specified in appropriate regulations to be issued by the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
Art. 103. Time of payment. Wages shall be paid at least once every two (2) weeks or twice a month
at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond
the employers control, payment of wages on or within the time herein provided cannot be made, the
employer shall pay the wages immediately after such force majeure or circumstances have ceased.
No employer shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed in two (2)
weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement
or arbitration award:
1) That payments are made at intervals not exceeding sixteen (16) days, in proportion to the
amount of work completed;
2) That final settlement is made upon completion of the work.
3)
Art. 104. Place of payment. Payment of wages shall be made at or near the place of undertaking,
except as otherwise provided by such regulations as the Secretary of Labor and Employment may
prescribe under conditions to ensure greater protection of wages.
Art. 105. Direct payment of wages. Wages shall be paid directly to the workers to whom they are
due, except:
a) In cases of force majeure rendering such payment impossible or under other special
circumstances to be determined by the Secretary of Labor and Employment in appropriate
regulations, in which case, the worker may be paid through another person under written
authority given by the worker for the purpose; or
b) Where the worker has died, in which case, the employer may pay the wages of the deceased
worker to the heirs of the latter without the necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an affidavit attesting to their relationship to
the deceased and the fact that they are his heirs, to the exclusion of all other persons. If any
of the heirs is a minor, the affidavit shall be executed on his behalf by his natural guardian
or next-of-kin. The affidavit shall be presented to the employer who shall make payment
through the Secretary of Labor and Employment or his representative. The representative
of the Secretary of Labor and Employment shall act as referee in dividing the amount paid
among the heirs. The payment of wages under this Article shall absolve the employer of
any further liability with respect to the amount paid.
IRR: RULE VIII, PAYMENT OF WAGES:
Forms of Payment - General rule, wages shall be paid in legal tender and the use of tokens, promissory
notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited
even when expressly requested by the employee.
Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed
where such manner of wage payment is customary on the date of the effectivity of the Code, where it
is so stipulated in a collective agreement, or where all of the following conditions are met:
a) There is a bank or other facility for encashment within a radius of one (1) kilometer from
the workplace;
b) The employer or any of his agents or representatives does not receive any pecuniary benefit
directly or indirectly from the arrangement;
c) The employees are given reasonable time during banking hours to withdraw their wages
from the bank which time shall be considered as compensable hours worked if done during
working hours; and
d) The payment by check is with the written consent of the employees concerned if there is
no collective agreement authorizing the payment of wages by bank checks.
Time of payment.
a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) days, unless payment cannot be made with such regularity due
to force majeure or circumstances beyond the employer's control in which case the
employer shall pay the wages immediately after such force majeure or circumstances have
ceased. (at least once a month)
b) In case of payment of wages by results involving work which cannot be finished in
two (2) weeks, payment shall be made at intervals not exceeding sixteen days in
proportion to the amount of work completed. Final settlement shall be made
immediately upon completion of the work.
Place of payment. As a general rule, the place of payment shall be at or near the place of
undertaking. Payment in a place other than the work place shall be permissible only under the
following circumstances:
a) When payment cannot be effected at or near the place of work by reason of the
deterioration of peace and order conditions, or by reason of actual or impending
emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat
impossible;
b) When the employer provides free transportation to the employees back and forth; and
c) Under any other analogous circumstances; Provided, That the time spent by the employees
in collecting their wages shall be considered as compensable hours worked;
d) No employer shall pay his employees in any bar, night or day club, drinking establishment,
massage clinic, dance hall, or other similar places or in places where games are played with
stakes of money or things representing money except in the case of persons employed in
said places.
Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto
except in the following cases:
 a) Where the employer is authorized in writing by the employee to pay his wages to a member
of his family;
b) Where payment to another person of any part of the employee's wages is authorized by
existing law, including payments for the insurance premiums of the employee and union
dues where the right to check-off has been recognized by the employer in accordance with
a collective agreement or authorized in writing by the individual employees concerned; or
c) In case of death of the employee as provided in the succeeding Section.
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with another
person for the performance of the formers work, the employees of the contractor and of the latters
subcontractor, if any, shall be paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance
with this Code, the employer shall be jointly and severally liable with his contractor or
subcontractor to such employees to the extent of the work performed under the contract, in the
same manner and extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the
contracting out of labor to protect the rights of workers established under this Code. In so prohibiting
or restricting, he may make appropriate distinctions between labor-only contracting and job
contracting as well as differentiations within these types of contracting and determine who among the
parties involved shall be considered the employer for purposes of this Code, to prevent any violation
or circumvention of any provision of this Code.
There is "labor-only" contracting where the person supplying workers to an employer
does not have substantial capital or investment in the form of tools, equipment,
machineries, work premises, among others, and the workers recruited and placed
by such person are performing activities which are directly related to the
principal business of such employer. In such cases, the person or intermediary shall be
considered merely as an agent of the employer who shall be responsible to the workers in the same
manner and extent as if the latter were directly employed by him.
Art. 107. Indirect employer. The provisions of the immediately preceding article shall likewise
apply to any person, partnership, association or corporation which, not being an employer,
contracts with an independent contractor for the performance of any work, task, job or project.
Art. 108. Posting of bond. An employer or indirect employer may require the contractor or
subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the
bond will answer for the wages due the employees should the contractor or subcontractor, as
the case may be, fail to pay the same.
Art. 109. Solidary liability. The provisions of existing laws to the contrary notwithstanding, every
employer or indirect employer shall be held responsible with his contractor or subcontractor for any
violation of any provision of this Code. For purposes of determining the extent of their civil liability
under this Chapter, they shall be considered as direct employers.
Art. 110. Worker preference in case of bankruptcy. In the event of bankruptcy or liquidation of an
employers business, his workers shall enjoy first preference as regards their wages and other
monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the government and other creditors may be paid.
(As amended by Section 1,
Republic Act No. 6715, March 21, 1989)
Art. 111. Attorneys fees.
a) In cases of unlawful withholding of wages, the culpable party may be assessed attorneys
fees equivalent to ten percent of the amount of wages recovered.
b) It shall be unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorneys fees which exceed ten percent of the
amount of wages recovered.
Wages of deceased employee. The payment of the wages of a deceased employee shall be made
to his heirs without the necessity of intestate proceedings. When the heirs are of age, they shall execute
an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the
exclusion of all other persons. In case any of the heirs is a minor, such affidavit shall be executed in
his behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the employer,
he shall make payment to the heirs as representative of the Secretary of Labor and Employment.
Civil liability of employer and contractors. Every employer or indirect employer shall be jointly
and severally liable with his contractor or sub-contractor for the unpaid wages of the employees of
the latter. Such employer or indirect employer may require the contractor or sub-contractor to
furnish a bond equal to the cost of labor under contract on condition that the bond will answer for the
wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the
same.
Job Contracting. There is job contracting permissible under the Code if the following conditions
are met:
a) The contractor carries on an independent business and undertakes the contract work on his
own account under his own responsibility according to his own manner and method, free
from the control and direction of his employer or principal in all matters connected with
the performance of the work except as to the results thereof; and
b) The contractor has substantial capital or investment in the form of tools, equipment,
machineries, work premises, and other materials which are necessary in the conduct of his
business.
Labor-only contracting.
a) Any person who undertakes to supply workers to an employer shall be deemed to be
engaged in labor-only contracting where such person:
1) Does not have substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials; and
2) The workers recruited and placed by such person are performing activities which
are directly related to the principal business or operations of the employer in
which workers are habitually employed.
b) Labor-only contracting as defined herein is hereby prohibited and the person acting as
contractor shall be considered merely as an agent or intermediary of the employer who
shall be responsible to the workers in the same manner and extent as if the latter were
directly employed by him.
c) For cases not falling under this Rule, the Secretary of Labor and Employment shall
determine through appropriate orders whether or not the contracting out of labor is
permissible in the light of the circumstances of each case and after considering the
operating needs of the employer and the rights of the workers involved. In such case, he
may prescribe conditions and restrictions to insure the protection and welfare of the
workers.
Payment of wages in case of bankruptcy. Unpaid wages earned by the employees before the
declaration of bankruptcy or judicial liquidation of the employer's business shall be given first
preference and shall be paid in full before other creditors may establish any claim to a share in the
assets of the employer. Art. 119. False reporting. It shall be unlawful for any person to make any statement, report, or record
filed or kept pursuant to the provisions of this Code knowing such statement, report or record to be
Attorney's fees. Attorney's fees in any judicial or administrative proceedings for the recovery false in any material respect.
of wages shall not exceed 10 percent of the amount awarded. The fees may be deducted from the total
amount due the winning party.

CODAL
PROHIBITIONS REGARDING WAGES
Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise interfere with
the freedom of any employee to dispose of his wages. He shall not in any manner force,
compel, or oblige his employees to purchase merchandise, commodities or other property
from any other person, or otherwise make use of any store or services of such employer or any other
person.
Non-interference because it is owned already by the employee.
Art. 113. Wage deduction. No employer, in his own behalf or in behalf of any person, shall make
any deduction from the wages of his employees, except:
a) In cases where the worker is insured with his consent by the employer, and the deduction
is to recompense the employer for the amount paid by him as premium on the insurance;
b) For union dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker concerned;
and
c) In cases where the employer is authorized by law or regulations issued by the Secretary of
Labor and Employment.
Art. 114. Deposits for loss or damage. No employer shall require his worker to make deposits from
which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer, except when the employer is engaged in such trades,
occupations or business where the practice of making deductions or requiring deposits is a recognized
one, or is necessary or desirable as determined by the Secretary of Labor and Employment in
appropriate rules and regulations.
Art. 115. Limitations. No deduction from the deposits of an employee for the actual amount of the
loss or damage shall be made unless the employee has been heard thereon, and his responsibility has
been clearly shown.
Art. 116. Withholding of wages and kickbacks prohibited. It shall be unlawful for any person,
directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up
any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without
the workers consent.
IRR
Non-interference in disposal of wages. No employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages and no employer shall in any manner oblige any of
his employees to patronize any store or avail of the services offered by any person.
Wages deduction. Deductions from the wages of the employees may be made by the employer in
any of the following cases:
a) When the deductions are authorized by law, including deductions for the insurance
premiums advanced by the employer in behalf of the employee as well as union dues where
the right to check-off has been recognized by the employer or authorized in writing by the
individual employee himself.
b) When the deductions are with the written authorization of the employees for payment to
the third person and the employer agrees to do so; Provided, That the latter does not receive
any pecuniary benefit, directly or indirectly, from the transaction.
Deduction for loss or damage. Where the employer is engaged in a trade, occupation or business
where the practice of making deductions or requiring deposits is recognized to answer for the
reimbursement of loss or damage to tools, materials, or equipment supplied by the employer to the
employee, the employer may make wage deductions or require the employees to make deposits from
which deductions shall be made, subject to the following conditions:
a) That the employee concerned is clearly shown to be responsible for the loss or damage;
b) That the employee is given reasonable opportunity to show cause why deduction should
not be made;
c) That the amount of such deduction is fair and reasonable and shall not exceed the actual
loss or damage; and
d) That the deduction from the wages of the employee does not exceed 20 percent of the
employee's wages in a week.

Art. 117. Deduction to ensure employment. It shall be unlawful to make any deduction from the
wages of any employee for the benefit of the employer or his representative or intermediary as
consideration of a promise of employment or retention in employment.

Art. 118. Retaliatory measures. It shall be unlawful for an employer to refuse to pay or reduce the
wages and benefits, discharge or in any manner discriminate against any employee who has filed any
complaint or instituted any proceeding under this Title or has testified or is about to testify in such
proceedings.
 Art. 124. Standards/Criteria for minimum wage fixing. The regional minimum wages to be
established by the Regional Board shall be as nearly adequate as is economically feasible to maintain
the minimum standards of living necessary for the health, efficiency and general well-being of the
employees within the framework of the national economic and social development program. In
Civil code provisions: the determination of such regional minimum wages, the Regional Board shall, among other relevant
factors, consider the following:
Article 1705. a) The demand for living wages; (a wage that is high enough to maintain a normal standard
The laborer's wages shall be paid in legal currency. of living.)
b) Wage adjustment vis--vis the consumer price index; (is a measure of the average change
Article 1706. over time in the prices paid by urban consumers for a market basket of consumer goods
Withholding of the wages, except for a debt due, shall not be made by the employer. and services.)
1. For debt due c) The cost of living and changes or increases therein; (is the amount of money needed to
2. For purposes of the income tax law sustain a certain level of living, including basic expenses such as housing, food, taxes and
3. For facilities obtained in fair and reasonable value by the employee, provided there health care.)
was a prior agreement d) The needs of workers and their families;
e) The need to induce industries to invest in the countryside;
Article 1707. f) Improvements in standards of living;( the degree of wealth and material comfort available
The laborer's wages shall be a lien on the goods manufactured or the work done. to a person or community)
Wage Lien, Reason for Art. 1707: By virtue of this new lien, the laborers who are g) The prevailing wage levels;
not paid by an unscrupulous and irresponsible industrialist or manager may by legal h) Fair return of the capital invested and capacity to pay of employers;
means have the goods manufactured thru the sweat of their brow sold, and out of the i) Effects on employment generation and family income; and
proceeds get their salary, returning the excess, if any. j) The equitable distribution of income and wealth along the imperatives of economic and
Article 1708. social development.
The laborer's wages shall not be subject to execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance. The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing
minimum wages in every region. These wages shall include wages varying with industries, provinces
Article 1709. or localities if in the judgment of the Regional Board, conditions make such local differentiation
The employer shall neither seize nor retain any tool or other articles belonging to the labourer. proper and necessary to effectuate the purpose of this Title.

Any person, company, corporation, partnership or any other entity engaged in business shall
file and register annually with the appropriate Regional Board, Commission and the National
Statistics Office, an itemized listing of their labor component, specifying the names of their
workers and employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed in the employment
contracts, and their corresponding salaries and wages.

Where the application of any prescribed wage increase by virtue of a law or wage order issued by any
Regional Board results in distortions of the wage structure within an establishment, the employer
and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions
shall be resolved through the grievance procedure under their collective bargaining agreement and, if
it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in
writing, such dispute shall be decided by the voluntary arbitrators within ten (10) calendar days
from the time said dispute was referred to voluntary arbitration.

In cases where there are no collective agreements or recognized labor unions, the employers and
workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and, if it remains unresolved after ten
(10) calendar days of conciliation, shall be referred to the appropriate branch of the National
Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct
continuous hearings and decide the dispute within twenty (20) calendar days from the time said
dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to the provisions of law or wage order.
As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an establishment as to effectively obliterate
the distinctions embodied in such wage structure based on skills, length of service, or other logical
bases of differentiation.
All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis,
shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a proportion
thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship agreements shall be considered automatically modified
insofar as their wage clauses are concerned to reflect the prescribed wage rates. (As amended by
Republic Act No. 6727, June 9, 1989)
Section 7. Composition of the Boards RTWPB. Each Board shall be composed of the Regional
Director of the Department as Chairman, the Regional Directors of the National Economic and
Development Authority (NEDA) and Department of Trade and Industry (DTI) as Vice-Chairmen
and two members each of workers and employers sectors who shall be appointed by the President
for a term of five years upon the recommendation of the Secretary. The recommendees shall be
selected from the lists of nominees submitted by the workers and employers sectors.
Section 6. Powers and Functions of the Boards. The Boards shall have the following powers
and functions:
a) To develop plans, programs and projects relative to wages, incomes and productivity
improvements for their respective regions;
b) To determine and fix minimum wage rates applicable in their region, provinces or
industries therein and to issue the corresponding wage orders, subject to guidelines issued
by the Commission;
c) To undertake studies, researches, and surveys necessary for the attainment of their
functions, objectives and programs, and to collect and compile data on wages, incomes,
productivity and other related information and periodically disseminate the same;
d) To coordinate with the other Boards as may be necessary to attain the policy and
intention of the Labor Code;
e) To receive, process and act on applications for exemption from prescribed wage rates
as may be provided by law or any Wage Order; and
f) To exercise such other powers and functions as may be necessary to carry out their
mandate under the Labor Code.
Implementation of the plans, programs and projects of the Boards shall be through the respective
Regional Offices of the Department, provided, however, that the Boards shall have technical
supervision over the Regional Office of the Department with respect to the implementation of these
plans, programs and projects.
Section 2. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to be
established by the Boards shall be as nearly adequate as is economically feasible to maintain the
minimum standards of living necessary for the health, efficiency and general well-being of the
workers within the framework of the national, economic, and social development programs. In the
determination of regional minimum wages, the Boards, shall, among other relevant factors, consider
the following:
a) The demand for living wages;
b) Wage adjustment vis-a-vis the consumer price index;
c) The cost of living and changes or increases therein;
d) The needs of workers and their families;
e) The need to induce industries to invest in the countryside;
f) Improvements in standards of living;
g) The prevailing wage levels;
h) Fair return of the capital invested and capacity to pay of employers;
i) Effects on employment generation and family income; and
j) The equitable distribution of income and wealth along the imperatives of economic and
social development.
Exempted from the provisions of this Act are:
1. household or domestic helpers and
2. persons employed in the personal service of another, including family drivers.
3. Retail/service establishments regularly employing not more than ten (10) workers may be
exempted from the applicability of this Act upon application with and as determined by
the appropriate Regional Board in accordance with the applicable rules and regulations
issued by the Commission. Whenever an application for exemption has been duly filed
with the appropriate Regional Board, action on any complaint for alleged non-compliance
 with this Act shall be deferred pending resolution of the application for exemption by the
appropriate Regional Board.
In the event that applications for exemptions are not granted, employees shall receive the
appropriate compensation due them as provided for by this Act plus interest of one per cent (1%)
per month retroactive to the effectivity of this Act.
Section 7. Wage Distortions. Where the application of any wage increase resulting from a Wage
Order issued by any Board results in distortions in the wage structure within an establishment, the
employer and the union shall negotiate to correct the distortions using the grievance
procedure under the collective bargaining agreement. If it remains unresolved, it shall be
decided through voluntary arbitration within ten calendar days from the time the dispute was
referred for voluntary arbitration, unless otherwise agreed by the parties in writing.
Where there are no collective agreements or recognized labor unions, the employer and workers
shall endeavor to correct the wage distortion. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and if it remains unresolved after ten
calendar days of conciliation, it shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). The NLRC shall conduct continuous hearings and decide the
dispute within twenty calendar days from the time said dispute is submitted for compulsory
arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any wage increase prescribed pursuant to the provisions of law or Wage Order.
In compulsory arbitration, the parties involved are required to go through the third party to settle
their dispute. If an arbitration clause is included in a contract, and if the contract itself is valid, the
parties must abide by the clause. Arbitration may also be ordered by a court as a means to prevent a
situation from going to trial, and the parties must comply or face possible sanctions.
Another possibility is voluntary arbitration. In this instance, the sides involved agree on their own
to use an outside party, like an arbitration attorney, to help settle their differences. No contract or
law requires this action, yet deciding to use arbitration can save money, time and maybe even good
will. In business relationships, all of these are important. If the matter is personal, such as in a
divorce proceeding, voluntary arbitration can be equally valuable.
NLRC Proceedings: What is an appeal in compulsory arbitration?
When an aggrieved party is not satisfied with the decision, order or award of the Labor Arbiter,
POEA Administrator or DOLE Regional Director or his duly authorized hearing officer, the
decision, award or order may be elevated to the Commission Proper upon grounds provided by law.
Section 10. Penal Provisions. Any person, corporation, trust, firm, partnership, association or
entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates,
made in accordance with the Act shall be punished by a fine not exceeding P25,000 and/or
imprisonment of not less than one year nor more than two years: Provided, that any person
convicted under the Act shall not be entitled to the benefits provided for under the Probation Law.
Art. 128. Visitorial and enforcement power.
a) The Secretary of Labor and Employment or his duly authorized representatives, including
labor regulation officers, shall have access to employers records and premises at any
time of the day or night whenever work is being undertaken therein, and the right to copy
therefrom, to question any employee and investigate any fact, condition or matter which
may be necessary to determine violations or which may aid in the enforcement of this
Code and of any labor law, wage order or rules and regulations issued pursuant thereto.
b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and
in cases where the relationship of employer-employee still exists, the Secretary of Labor
and Employment or his duly authorized representatives shall have the power to issue
compliance orders to give effect to the labor standards provisions of this Code and other
labor legislation based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of inspection. The Secretary or his duly
authorized representatives shall issue writs of execution to the appropriate authority for
the enforcement of their orders, except in cases where the employer contests the findings
of the labor employment and enforcement officer and raises issues supported by
documentary proofs which were not considered in the course of inspection. (As amended
by Republic Act No. 7730, June 2, 1994).
An order issued by the duly authorized representative of the Secretary of Labor and
Employment under this Article may be appealed to the latter. In case said order involves
a monetary award, an appeal by the employer may be perfected only upon the posting of
a cash or surety bond issued by a reputable bonding company duly accredited by the
Secretary of Labor and Employment in the amount equivalent to the monetary award in
the order appealed from. (As amended by Republic Act No. 7730, June 2, 1994)
c) The Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-
compliance with the law or implementing rules and regulations poses grave and imminent
danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be conducted to determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case the violation is attributable to the
fault of the employer, he shall pay the employees concerned their salaries or wages
during the period of such stoppage of work or suspension of operation.
d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and Employment or his duly authorized
representatives issued pursuant to the authority granted under this Article, and no inferior
court or entity shall issue temporary or permanent injunction or restraining order or
otherwise assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
e) Any government employee found guilty of violation of, or abuse of authority, under this
Article shall, after appropriate administrative investigation, be subject to summary
dismissal from the service.
f) The Secretary of Labor and Employment may, by appropriate regulations, require
employers to keep and maintain such employment records as may be necessary in aid of
his visitorial and enforcement powers under this Code.
Administration and Enforcement
SECTION 1. Visitorial power. The Secretary of Labor and Employment or his duly authorized
representatives, including Labor Regulations Officers or Industrial Safety Engineers, shall have
access to employer's records and premises at any time of the day or night whenever work is being
undertaken therein, and right to copy therefrom, to question any employee, and to investigate any fact,
condition or matter relevant to the enforcement of any provision of the Code and of any labor law,
wage order or rules and regulations issued pursuant thereto.
SECTION 2. Enforcement power.
a) The Regional Director in cases where employer relations shall exist, shall have the power
to order and administer, after due notice and hearing, compliance with the labor standards
provisions of the Code and other labor legislations based on the findings of the Labor
Regulation Officers or Industrial Safety Engineers (Labor Standard and Welfare Officer)
and made in the course of inspection, and to issue writs of execution to the appropriate
authority of the enforcement of his order. In line with the provisions of Article 128 in
relation to Articles 289 and 290 of the Labor Code as amended in cases, however, where
the employer contests the findings of the Labor Standards and Welfare Officers and raises
issues which cannot be resolved without considering evidentiary matters that are not
verifiable in the normal course of inspection, the Regional Director concerned shall indorse
the case to the appropriate arbitration branch of the National Labor Relations Commission
for adjudication.
b) The Regional Director shall give the employer fifteen (15) days within which to comply
with his order before issuing a writ of execution. Copy of such order or writ of execution
shall immediately be furnished the Secretary of Labor and Employment.
SECTION 3. Enforcement power on health and safety of workers.
a) The Regional Director may likewise order stoppage of work or suspension of operations of
any unit or department of an establishment when noncompliance with the law, safety order
or implementing rules and regulations poses grave and imminent danger to the health and
safety of workers in the workplace.
b) Within 24 hours from issuance of the order of stoppage or suspension, a hearing shall be
conducted to determine whether the order for the stoppage of work or suspension of
operation shall be lifted or not. The proceedings shall be terminated within seventy-two
(72) hours and a copy of such order or resolution shall be immediately furnished the
Secretary of Labor and Employment. In case the violation is attributable to the fault of the
employer, he shall pay the employees concerned their salaries or wages during the period
of such stoppage of work or suspension of operation.
SECTION 4. Power to review.
a) The Secretary of Labor and Employment, at his own initiative or upon request of the
employer and/or employee, may review the order of the Regional Director. The order of
the Regional Director shall be immediately final and executory unless stayed by the
Secretary of Labor and Employment upon posting by the employer of a reasonable cash or
surety bond as fixed by the Regional Director.
b) In aid of his power of review, the Secretary of Labor and Employment may direct the
Bureau of Working Conditions to evaluate the findings or orders of the Regional Director.
The decision of the Secretary of Labor and Employment shall be final and executory.
SECTION 5. Interference and injunctions prohibited. It shall be unlawful for any person or
entity to obstruct, impede, delay or otherwise render ineffective the exercise of the enforcement
power of the Secretary of Labor and Employment, Regional Director or their duly authorized
representatives pursuant to the authority granted by the Code and its implementing rules and
regulations, and no inferior court or entity shall issue temporary or permanent injunction or
restraining order or otherwise assume jurisdiction over any case involving the enforcement
orders issued in accordance with the Code. In addition to the penalties provided for by the Labor
Code, any government employees found guilty of violation or abuse of authority, shall be subject
to the
provisions of Presidential Decree No. 6.
SECTION 6. Payrolls. (a) Every employer shall pay his employees by means
of a payroll wherein the following information and data shall be individually
shown:
(1) Length of time to be paid;
(2) The rate of pay per month, week, day or hour piece, etc.;
(3) The amount due for regular work;
(4) The amount due for overtime work;
(5) Deductions made from the wages of the employees; and
(6) Amount actually paid.
(b) Every employee in the payroll shall sign or place his thumbmark, as the case
may be, at the end of the line opposite his name where a blank space shall be
provided for the purpose. His signature shall be made in ink, or his thumbmark
placed with the use of the regular stamping ink and pad.
SECTION 7. Time records. Every employer shall keep an individual time
record of all his employees bearing the signature or thumbmark of the
employee concerned for each daily entry therein by means of any of the
following methods:
(a) Through the use of bundy clock by means of which an employee can punch
in his individual card the time of arrival and departure from work;
(b) Through the employment of a timekeeper whose duty is to time in and out
every employee in a record book; and
(c) By furnishing the employees individually with a daily time record form in
which they can note the time of their respective arrival and departure from
work.
SECTION 8. Entries in the filing of time records. All entries in time books
and daily time records shall be accomplished in ink. All filled-up bundy clock
cards, timekeeper's books and daily time record forms shall be kept on file in
chronological order by the employer in or about the premises where the
employee is employed, and open to inspection and verification by the
Department of Labor and Employment as provided in this Rule.
SECTION 9. Time records of executives. Managerial employees, officers or
members of the managerial staff, as well as non-agricultural field personnel,
need not be required to keep individual time records, provided that a record of
their daily attendance is kept and maintained by the employer.
SECTION 10. Records of workers paid by results. Where the employees are
paid on piece, pakiao, takay, task, commission or other non-time basis, the
employer shall keep production records showing their daily output, gross
Art. 128. Visitorial and enforcement power. Art. 129. Recovery of wages, simple money claims and other benefits. Upon
a) The Secretary of Labor and Employment or his duly authorized representatives, including complaint of any interested
labor regulation officers, shall have access to employers records and premises at any time party, the Regional Director of the Department of Labor and Employment or any of the duly
of the day or night whenever work is being undertaken therein, and the right to copy authorized hearing
therefrom, to question any employee and investigate any fact, condition or matter which officers of the Department is empowered, through summary proceeding and after due
may be necessary to determine violations or which may aid in the enforcement of this Code notice, to hear and
and of any labor law, wage order or rules and regulations issued pursuant thereto. decide any matter involving the recovery of wages and other monetary claims and benefits,
including legal
b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and interest, owing to an employee or person employed in domestic or household service or
in cases where the relationship of employer-employee still exists, the Secretary of Labor househelper under
and Employment or his duly authorized representatives shall have the power to issue this Code, arising from employer-employee relations: Provided, That such complaint does
compliance orders to give effect to the labor standards provisions of this Code and other not include a claim
labor legislation based on the findings of labor employment and enforcement officers or for reinstatement: Provided further, That the aggregate money claims of each employee or
industrial safety engineers made in the course of inspection. The Secretary or his duly househelper does
authorized representatives shall issue writs of execution to the appropriate authority for the not exceed Five thousand pesos (P5,000.00). The Regional Director or hearing officer
enforcement of their orders, except in cases where the employer contests the findings of shall decide or resolve
the labor employment and enforcement officer and raises issues supported by documentary the complaint within thirty (30) calendar days from the date of the filing of the same. Any
proofs which were not considered in the course of inspection. (As amended by Republic sum thus recovered
Act No. 7730, June 2, 1994). on behalf of any employee or househelper pursuant to this Article shall be held in a special
deposit account
An order issued by the duly authorized representative of the Secretary of Labor by, and shall be paid on order of, the Secretary of Labor and Employment or the Regional
and Employment under this Article may be appealed to the latter. In case said Director directly to
order involves a monetary award, an appeal by the employer may be perfected the employee or househelper concerned. Any such sum not paid to the employee or
only upon the posting of a cash or surety bond issued by a reputable bonding househelper because he
company duly accredited by the Secretary of Labor and Employment in the amount cannot be located after diligent and reasonable effort to locate him within a period of three
equivalent to the monetary award in the order appealed from. (As amended by (3) years, shall be
Republic Act No. 7730, June 2, 1994) held as a special fund of the Department of Labor and Employment to be used exclusively
for the amelioration
c) The Secretary of Labor and Employment may likewise order stoppage of work or and benefit of workers.
suspension of operations of any unit or department of an establishment when non- Any decision or resolution of the Regional Director or hearing officer pursuant to this
compliance with the law or implementing rules and regulations poses grave and provision may be
imminent danger to the health and safety of workers in the workplace. Within appealed on the same grounds provided in Article 223 of this Code, within five (5) calendar
twenty-four hours, a hearing shall be conducted to determine whether an order for days from receipt
the stoppage of work or suspension of operations shall be lifted or not. In case the of a copy of said decision or resolution, to the National Labor Relations Commission which
violation is attributable to the fault of the employer, he shall pay the employees shall resolve the
concerned their salaries or wages during the period of such stoppage of work or appeal within ten (10) calendar days from the submission of the last pleading required or
suspension of operation. allowed under its
rules.
d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise The Secretary of Labor and Employment or his duly authorized representative may
render ineffective the orders of the Secretary of Labor and Employment or his duly supervise the payment of
authorized representatives issued pursuant to the authority granted under this unpaid wages and other monetary claims and benefits, including legal interest, found
Article, and no inferior court or entity shall issue temporary or permanent injunction owing to any employee
or restraining order or otherwise assume jurisdiction over any case involving the a) or househelper under this Code. (As amended by Section 2, Republic Act No.
enforcement orders issued in accordance with this Article. 6715, March 21, 1989)

e) Any government employee found guilty of violation of, or abuse of authority, under
this Article shall, after appropriate administrative investigation, be subject to
summary dismissal from the service.

f) The Secretary of Labor and Employment may, by appropriate regulations, require

employers to keep and maintain such employment records as may be necessary
in aid of his visitorial and enforcement powers under this Code.