Labor Law Notes

LABOR LAW REVIEW MEMORY AID
LABOR STANDARDS
ARTICLE 1 AND 2
LABOR LEGISLATIONS - statutes, regulations and jurisprudence governing the relations
between capital and labor by providing employment standards and legal framework for
negotiating, adjusting and administering those standards and other incidents.
LABOR STANDARDS LAW - provide the least terms and conditions of employment that
employers must comply with and to which employees are entitled to as a matter of legal right.
Defined by jurisprudence - the minimum requirements prescribed by existing laws, rules and
regulations relation to wages, hours of work, cost-of-living allowance, and other monetary and
welfare benefits, including occupational, safety and health standards.
LABOR RELATIONS - defines the status, rights and duties and the institutional mechanisms
that govern the individual and collective interactions of employers, employees and their
representatives.
SOCIAL LEGISLATIONS - laws that provide particular kinds of protection or benefits to

society or segments thereof in furtherance of social justice.
SOURCES OF LABOR LAWS:

Constitution
Labor Code
Social Security Law
CLASSIFICATION:
Labor Standards
Labor Relations
Social Security Law - provide protection to workers and members of their family
SOCIAL JUSTICE - juridical principle: prescribed the equality of the people, rich or poor,
before the law
societal goal: the attainment of decent quality of life of the masses through humane
productive efforts
CONSTITUTIONAL PROVISIONS ON LABOR PROTECTION

The state affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare (Art. II, Sec 18)
Paler, Jezzene Gail 1

The right to form unions
The right to self-organization
regular farmworkers shall have the right to directly and collectively own the land they till
promote adequate employment opportunities to such citizens
protect working women by providing safe and healthful working conditions
labor is entitled to seats allotted to partylist representatives
a more equitable distribution of opportunities, income and wealth
congress shall create an agency to promote the viability and growth of cooperatives
increase the salary scales of the other officials and employees of the government
separated due to reorganisation shall receive appropriate separation pay and retirement
and other benefits under existing laws
BASIC RIGHTS OF WORKERS UNDER THE CONSTITUTION (Art XIII, Sec 3)

1. to organize themselves
2. to conduct collective bargaining or negotiation with management
3. to engage in peaceful concerted activities including to strike in accordance with law
4. to enjoy security of tenure
5. to work under humane conditions
6. to receive a living wage
7. to participate in policy and decision-making processes affecting their rights and benefits as
may be provided by the law
LABOR CODE - a set of substantive and procedural laws that prescribe the principal rights
and responsibilties of employers, employees, and other industrial participants
ARTICLE 3
BASIC POLICY
The state (1) shall afford protection to labor, (2) promote full employment, (3) ensure equal
opportunities regardless of sex, race or creed, and (4) regulate relations between workers and
employees.
ARTICLE 4
CONSTRUCTION OF LABOR CODE
- when the law is silent, always construe in favor of labor
BALANCING OF RIGHTS

RIGHTS OF WORKERS MANAGEMENT PREROGATIVES
(right of ER)
- security of tenure - right to hire and fire (selection of employees)
- right to participate in policy and decision - to transfer and discharge employees
making process involving labor (PRINCIPLE - to promote and demote (not all promotion is
OF CO-DETERMINATION) accompanied with increase salary)
- but cannot be used to demand a seat in - to prescribe rules
the BOC - to management of enterprise
- right to ROI : return of investment make
profit
LIMITATIONS OF MANAGEMENT PREROGATIVES

law
collective bargaining agreements or contracts
general principles of fair play and justice
ARTICLE 6
APPLICABILITY OF LABOR CODE
- applies to all workers, agricultural or non-agricultural
- EXCEPT: GOCC employees with ORIGINAL CHARTERS and GOVERNMENT
EMPLOYEES
- still applicable even if parties are not employers and employees
HOW TO DETERMINE EMPLOYER-EMPLOYEE RELATIONS : FOUR-FOLD TEST

1. power of the employee in the selection and engagement of employees (hire)
2. power of the employer to payment of wages (compensation)
3. power of dismissal (fire)
4. power of control (the most important of them all)
ARTICLE 13
DEFINITION OF TERMS
1. WORKER - any member of the labor force, whether employed or unemployed
2. RECRUITMENT & PLACEMENT - any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers. Includes referrals, contract services,
promising or advertising for employment, locally or abroad, profit or not
- any person or entity which offers or promises for a fee employment to two or more
persons shall be deemed in recruitment and placement.

3. PRIVATE FEE-CHARGING EMPLOYMENT AGENCY - (licensee) any person or entity
engaged in the recruitment and placement of workers, for a fee which is charged, directly
or indirectly,from workers or employers or both.
4. LICENSE - document issued by DOLE authorizing a person or entity to operate a private
employment agency
5. PRIVATE RECRUITMENT ENTITY - (holder of authority) any person or entity engaged in
the recruitment and placement of workers, locally or overseas, without charging, directly or
indirectly, any fee from workers or employers
6. AUTHORITY - a document issued by the DOLE authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity
POEA - Philippine Overseas Employment Administration

- formulation, implementation and monitoring of policies and programs on overseas
employment of Filipino workers
- deployment of Filipino workers thru government to government hiring
JURISDICTION
- administrative in character
- disciplinary actions
OVERSEAS SEAFARERS - contractual employees

DOMESTIC SEAFARERS - may be permanent; not necessarily contractual or fixed period
but they are entitled to security of tenure
PREMATURE TERMINATION OF CONTRACT - employer is liable to pay the unexpired

portion of his contract plus full reimbursement of his placement fee with legal interest per year
NLRC - National Labor Relations Commission

Jurisdiction : employer-employee relations
LABOR ARBITER Jurisdiction : money claims arising from pre-termination of the employment
contract without valid cause
ARTICLE 18
BAN ON DIRECT HIRING
- direct hiring of Filipino workers by a foreign employer is not allowed unless through the
Boards and entitties authorised by DOLE
- EXCEPT:
- diplomatic corps
- international organisations

- NAME HIREES : individual workers who are able to secure contracts for overseas
employment on their own efforts and representations without assistance or participation
of any agency
INVALID SIDE AGREEMENT

- an agreement that diminishes the employees pay and benefits as contained in POEA-
approved contract is void unless such subsequent agreement is approved by POEA.
MONEY CLAIMS
- maybe barred by laches
- prescription os three years
PROTECTION OF GOVERNMENT EMPLOYEES

- DFA
- DOLE
- POEA
- OWWA
REPATRIATION
- repatriation of the worker and transport of his personal belongings shall be the primary
responsibility of the agency which recruited or deployed the worker overseas
- costs shall be bored by agency or its principal
- REMAINS and property of deceased workers : bored by agency or its principal
- WORKER AT FAULT : agency and principal shall not be liable
- DISASTERS : OWWA ( Oversears Workers Welfare Administration)
ARTICLE 22
MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS
- it is mandatory for Filipino workers abroad to remit a portion, 50% - 80% of the basic salary,
of their foreign exchange earnings to their families, dependents and beneficiaries
ARTICLE 25
PRIVATE SECTOR PARTICIPATION
- private sector shall participate in the recruitment and placement of workers, locally and
overseas
ARTICLE 26
TRAVEL AGENCIES & SALES AGENCIES PROHIBITION

- travel and sales agencies of airline companies are prohibited from engaging in the business
of recruitment and placement whether for profit or not
- INCLUDED in the prohibition are:
- persons with derogatory records convicted of illegal recruitment
- any official or employee of DOLE, POEA, OWWA, DFA, and other government agencies
involved in the implementation of RA 8042 or any of their relatives within the fourth civil
degree
- members of a corporation engaged in travel agencies and airlines
LIMITATIONS OF LICENSING( (PRPA)
ARTICLE 27
CITIZENSHIP RECRUITMENT
- only Filipino citizens
- corporation at least 75% of the authorised and voting capital stock is owned and controlled
by Filipinos
ARTICLE 28
CAPITALIZATION
- substantial capitalization
- single proprietorship or partnership - Php 200,000 (local employment) 2M (overseas)
- corporation - Php 500,000 (local employment) 2M (overseas)
ARTICLE 29
NON-TRANSFERABILITY OF LICENSE OR AUTHORITY
- shall only undertake replacement and placement activities at their authorized address
- may be allowed to conduct provincial recruitments and job fairs with written authority from
POEA
- no license or authority shall be used by persons other than stated in the license
- license or authority cannot be transferred conveyed or assigned to any other person or
entity
ARTICLE 30
REGISTRATION FEE
- secretary of labor shall promulgate schedule of fees
ARTICLE 31
BONDS
- all applicants of license and authority shall post cash and security bonds

- all valid and legal claims arising from violations of the conditions for the grant and use of
license will be charged to the escrow agreement or surety bonds
- answers to employment-related claims and violations of labor laws
- if bonds are garnished, agency shall replenish it within 15 days from date of receipt of
notice from POEA
- voluntary surrender of license shall be entitled to refund
ARTICLE 32
FEES TO BE PAID BY WORKERS
- person applying with a private fee-charging employment agency shall not be charged of a
fee until he has obtained employment through its (agency) efforts
- or has actually commenced employment
- POEA has the power to oder refund of illegally collected fees
ARTICLE 34
PROHIBITED ACTS
- unlawful for ay individual, entity, licensee, or holder of authority to commit the ff. acts:
A. to charge or accept any amount greater than specified
B. to furnish or publish false notice of employment
C. to give false notice for the purpose of securing a license or authority
D. to induce or attempt to induce a worker to quit employment
E. to influence or attempt to influence not to employ any worker
F. to engage in the recruitment and placement of workers in jobs harmful to public health or
morality or dignity of the Republic of the Phils
G. to obstruct or to attempt to obstruct inspection
H. to fail to file reports on the status of employment
I. to substitute or alter contracts prejudicial to workers
J. to become an officer or board of corporation engaged in travel agency or management
K. to withhold or deny documents for monetary or financial considerations
RA 8042 - addl prohibited practices

L. failure to actually deploy without valid reasons
M. failure to reimburse expenses incurred by workers in processing
N. to allow non-Filipino citizens to head or manage a licensed recruitment agency
ARTICLE 35
SUSPENSION OR CANCELLATION OF LICENSE
- secretary of labor has the power to suspend or cancel licenses

- recruitment agency is solidary liable with the principal (foreign) employer for the unpaid
salaries of a worker it recruited, even in their ties are severed
- EXCEPT:
- workers themselves insisted for the recruitment agency to send them back despite
knowledge of its inability to pay wages
- employees are notified of the severed ties of agency and principal
ARTICLE 38
ILLEGAL RECRUITMENT
- any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring
workers and includes referring contract services, promising or advertising for employment
abroad
- those enlisted under Art 34, prohibited practices maybe committed by a licensee or non-
licensee
- BY A SYNDICATE : carried out by a group of 3 or more persons conspiring, confederating
with one another to carry out the illegal transaction
- BY LARGE SCALE (Economic Sabotage) : if committed against 3 or more persons
individually or as a group
- OTHER PROHIBITED ACTS
- grant a loan to OFW with interest exceeding 8% per annum
- impose a compulsory and exclusive arrangement to avail loan
- refuse to condone or renegotiate a loan
- undergo health exam at specific clinics
- required to undergo training, seminars at specific institutions
- a suspended recruitment agency to engage in recruitment
- deduction on salary of workers the premiums for insurance
- RA 8042 addl prohibited acts
- an employee of a company or corporation engaged in illegal recruitment may be held liable
as principal, if it is shown that he actively and consciously participated in illegal recruitment
ARTICLE 40-42
EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS
- employment permit maybe issued to a non-resident alien
- foreigners may not be employed in nationalized business such as : public utilities,
exploration of natural resources, mass media enterprises
- ANTI-DUMMY LAW : prohibits employment of aliens in entities that own or control a right,
franchise, privilege, property or business whose exercise or enjoyment is reserved by law
only to Filipinos or to corporations or associations whose capital should be at least 60%
Filipino owned.

- ALIENS WHO ARE EXEMPT FROM AEP (ALIEN EMPLOYMENT PERMIT) REQT:
- members of the diplomatic service
- officers and staff of international organizations
- elected members of a governing board who do not occupy any other position
ART 57
STATEMENT OF OBJECTIVES
1. to help meet the demand of the economy for trained manpower
2. to establis a national apprenticeship program
3. to establish apprenticeship standards
Special Workers:
1. Apprentice
2. Learners
3. Handicapped Workers
ART 58
DEFINITION OF TERMS
1. APPRENTICESHIP - practical training on the job supplemented by a related theoretical
instruction
2. APPRENTICE - a worker who is covered by a written apprenticeship agreement with an
individual employer or any of the entities recognised
3. APPRENTICEABLE OCCUPTION - any trade, form of employment or occupation which
requires more than three months of practical training, on the job supplemented by
theoretical instruction (TESDA Law)
4. APPRENTICE AGREEMENT - employment contract where the employer binds himself to
train the apprentice and apprentice in turn will accept the terms of training
ART 59
QUALIFICATIONS OF APPRENTICE
1. at least 15 years old (because of R.A. No. 7610, prohibits employment of children below
15)
not for hazardous occupation if below 18
2. possess vocational aptitude and capacity for appropriate tests (no educational
requirements)
3. possess the ability to comprehend and follow oral and written instructions
4. physically fit for the occupation he wished to be trained
ART 60
EMPLOYMENT OF APPRENTICES

Requisites for Employment of Apprentice
1. employers sholuld be engaged in a business that is considered highly technical industry
2. job should be an apprenticeable occupation
- must be approved by the TESDA (Technical Education and Skills Development Authority)
- if approved, must constitute 5th qualification, unless waived by the employer must waiver
must be signed
ART 61
APPRENTICESHIP AGREEMENT
- The apprenticeship agreement has no force and effect in the absence of a valid
apprenticeship program duly approved by the DOLE. Hence, he should be considered a
regular employee. (Nitto Enterprise vs NLRC)
READ ART 62-69 PROVISIONS

Note: 100 hrs - theoretical instructions
2000 hrs - training
ART 70
VOLUNTARY ORGANIZATION OF APPRENTICESHIP PROGRAMS; EXEMPTIONS
- the organization shall be primarily a voluntary undertaking of employees
- when national security or for economic development, the President may require compulsory
training of apprentice where shortage of trained manpower is critical
- where service of foreign technicians are utilised by private companies, such companies are
required to set up appropriate apprenticeship programs
ART. 71
DEDUCTIBILITY OF TRAINING COSTS
- if apprentice is paid in minimum wage : there shall be an additional deduction from taxable
income of 1/2 for the value of training costs PROVIDED:
- such program is recognised by DOLE
- deduction shall not exceed 10% of direct labor wages
ART 72
APPRENTICE WITHOUT COMPENSATION (MEMORIZE THIS!!)
- if required by the school
- training program curriculum
- requisite for graduation
- required for board examinations
ART 73

LEARNERS
- hired as trainees in semi-skilled and other industrial occupations which are non-
apprenticeable and which maybe learned through practical on the job in a period NOT
exceeding three months
- need not be supplemented by a related theoretical instruction
- should have a learnership program approved by TESDA
ART 74
WHEN LEARNERS MAYBE HIRED
- when no experienced workers are available
- if it is necessary to prevent curtailment of employment opportunities
- employment does not create unfair competition in terms of labor costs
- if it does not impair or lower working standards
ART 75
LEARNERSHIP AGREEMENT
(C) the wages or salary rates shall begin at NOT LESS THAN 75% of applicable minimum
wage
(D) commitment of employer to employ learners, if they so desire, as regular employees upon
completion of learnership; All learners allowed to work for the first 2 months and terminated by
the employer before the end of stipulated period shall be deemed regular employees.
ART 76
LEARNERS IN PIECEWORK
- exception of Art 75 (C)
- shall be paid IN FULL for the work done
ART 78
HANDICAPPED
- Handicapped workers are those whose earning capacity is impaired by AGE or PHYSICAL
or MENTAL deficiency or injury
- psychological or deficiency or injury not included
RA 7277 MAGNA CARTA FOR DISABLED PERSONS

- ensures equal opportunities for disabled persons and prohibits discrimination against them
SEC. 4 (L) - MEMORIZE THIS!!

(l) Qualified Individual with a Disability shall mean an individual with a disability who,
with or without reasonable accommodations, can perform the essential functions of
the employment position that such individual holds or desires. However, consideration

shall be given to the employer's judgment as to what functions of a job are essential, and if an
employer has prepared a written description before advertising or interviewing applicants for
the job, this description shall be considered evidence of the essential functions of the job;
QUALIFIED DISABLED EMPLOYEE

- Subject to the same terms and conditions of employment, the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied
person
TITLE II - CHAP 1
Sec. 5. Equal Opportunity for Employment. (when employable Art 79) No disable
person shall be denied access to opportunities for suitable employment. A qualified disabled
employee shall be subject to the same terms and conditions of employment and the same
compensation (Art 80 (B) the rate to paid the handicapped workers which shall not be less
than 75% of the applicable legal minimum wage), privileges, benefits, fringe benefits,
incentives or allowances as a qualified able bodied person.
Five percent (5%) of all casual emergency and contractual positions in the Departments of
Social Welfare and Development; Health; Education, Culture and Sports; and other
government agencies, offices or corporations engaged in social development shall be
reserved for disabled persons.
Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be

found through open employment as provided in the immediately preceding Section, the State
shall endeavor to provide it by means of sheltered employment. In the placement of disabled
persons in sheltered employment, it shall accord due regard to the individual qualities,
vocational goals and inclinations to ensure a good working atmosphere and efficient
production.
- provision of productive work for disabled persons through workshops providing speacia;
facilities, income-producing projects or homework schemes with a view of giving them an
opportunity to earn, enabling them to acquire a working capacity required in an open industry
Sec. 7. Apprenticeship. (Art 81) Subject to the provisions of the Labor Code as amended,
disabled persons shall be eligible as apprentices or learners: Provided, That their handicap is
not as much as to effectively impede the performance of job operations in the particular
occupation for which they are hired; Provided, further, That after the lapse of the period of
apprenticeship, if found satisfactory in the job performance, they shall be eligible for
employment.
Sec. 8. Incentives for Employers. (IMPT.) (a) To encourage the active participation of the
private sector in promoting the welfare of disabled persons and to ensure gainful employment

for qualified disabled persons, adequate incentives shall be provided to private entities which
employ disabled persons.
(b) Private entities that employ disabled persons who meet the required skills or qualifications,
either as regular employee, apprentice or learner, shall be entitled to an additional deduction,
from their gross income, equivalent to twenty-five percent (25%) of the total amount paid as
salaries and wages to disabled persons: Provided, however, That such entities present proof
as certified by the Department of Labor and Employment that disabled persons are under
their employ: Provided, further, That the disabled employee is accredited with the Department
of Labor and Employment and the Department of Health as to his disability, skills and
qualifications.
(c) Private entities that improve or modify their physical facilities in order to provide
reasonable accommodation for disabled persons shall also be entitled to an additional
deduction from their net taxable income, equivalent to fifty percent (50%) of the direct costs of
the improvements or modifications. This Section, however, does not apply to improvements or
modifications of facilities required under Batas Pambansa Bilang 344.
THE FOLLOWING CONSTITUTE ACTS OF DISCRIMINATION: (SEC 32)

(a) Limiting, segregating or classifying a disabled job applicant in such a manner that
adversely affects his work opportunities;
(b) Using qualification standards, employment tests or other selection criteria that screen out
or tend to screen out a disabled person unless such standards, tests or other selection criteria
are shown to be job-related for the position in question and are consistent with business
necessity;
(c) Utilizing standards, criteria, or methods of administration that: (1) have the effect of
discrimination on the basis of disability; or
(2) perpetuate the discrimination of others who are subject to common administrative control.
(d) Providing less compensation, such as salary, wage or other forms of remuneration and
fringe benefits, to a qualified disabled employee, by reason of his disability, than the amount
to which a non-disabled person performing the same work is entitled;
(e) Favoring a non-disabled employee over a qualified disabled employee with respect to
promotion, training opportunities, study and scholarship grants, solely on account of the
latter's disability;
(f) Re-assigning or transferring a disabled employee to a job or position he cannot perform by
reason of his disability;
(g) Dismissing or terminating the services of a disabled employee by reason of his disability
unless the employer can prove that he impairs the satisfactory performance of the work
involved to the prejudice of the business entity: Provided, however, That the employer first
sought to provide reasonable accommodations for disabled persons;
(h) Failing to select or administer in the most effective manner employment tests which
accurately reflect the skills, aptitude or other factor of the disabled applicant or

employee that such tests purports to measure, rather than the impaired sensory, manual or
speaking skills of such applicant or employee, if any; and
(i)Excluding disabled persons from membership in labor unions or similar organizations.
RA 9442 AN ACT AMENDING REPUBLIC ACT NO. 7277

SEC. 32. Persons with disability shall be entitled to the following:
(a) At least twenty percent (20%) discount from all establishments relative to the utilization of
all services in hotels and similar lodging establishments; restaurants and recreation centers
for the exclusive use or enjoyment of persons with disability;
(b) A minimum of twenty percent (20%) discount on admission fees charged by the theaters,
cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure
and amusement for the exclusive use or enjoyment of persons with disability;
(c) At least twenty percent (20%) discount for the purchase of medicines in all drugstores for
the exclusive use or enjoyment of persons with disability;
(d) At least twenty percent (20%) discount on medical and dental services including diagnostic
and laboratory fees such as, but not limited to x-rays, computerized tomography scans and
blood tests, in all government facilities, subject to guidelines to be issued by the Department
of Health (DOH), in coordination with the Philippine Health Insurance Corporation
(PHILHEALTH);
(e) At least twenty percent (20%) discount on medical and dental services including diagnostic
and laboratory fees, and professional fees of attending doctors in all private hospitals and
medical facilities, in accordance with the rules and regulations to be issued by the DOH, in
coordination with the PHILHEALTH;
(f) At least twenty percent (20%) discount on fare for domestic air and sea travel for the
exclusive use or enjoyment of persons with disability;
(g) At least twenty percent (20%) discount in public railways, skyways and bus fare for the
exclusive use and enjoyment of persons with disability;
(h) Educational assistance to persons with disability, for them to pursue primary, secondary,
tertiary, post tertiary, as well as vocational or technical education, In both public and private
schools, through the provision of scholarships, grants, financial aids, subsidies and other
incentives to qualified persons with disability, including support for books, learning materials,
and uniform allowance to the extent feasible: provided, that persons with disability shall meet
minimum admission requirements;
(i) To the extent practicable and feasible, the continuance of the same benefits and privileges
given by the Government Service Insurance System (GSIS), Social Security System (SSS),
and PAG-IBIG, as the case may be, as are enjoyed by those in actual service;
(j) To the extent possible, the government may grant special discounts in special programs for
persons with disability on purchase of basic commodities, subject to guidelines to be issued
for the purpose by the Department of Trade and Industry (DTI) and the Department of
Agriculture (DA); and

(k) Provision of express lanes for persons with disability in all commercial and government
establishments; in the absence thereof, priority shall be given to them.
CONDITIONS OF EMPLOYMENT
ART 82
COVERAGE
- This shall apply only to employees in ALL establishments EXCEPT:

government employees
managerial employees- including managerial staff, supervisors
field personnel
members of the family of the employer dependent on him for support
domestic helper, personal service
paid by result
except Art 101-
- NSD, SIL, holiday pay if supervised
- overtime pay, premium pay if approved by DOLE
- MANAGERIAL EMPLOYEES - primary duty consists of the management of establishment
including officers and managerial staff
- FIELD PERSONNEL - non-agricultural employee regularly perform duties away from the
premises of the place of business
ART 83
NORMAL HOURS OF WORK
shall not exceed eight (8) hours a day for 6 days

health personnel with bed capacity of 700 and population of 1M - 5 days, 8 hrs per day
if exceeds 6 days or 48 hours - employee is entitled to 30%
ART 84
HOURS WORKED
PRINCIPLES:
1. All hours worked which the employee is required to give his employer, regardless of
whether or not such hours are spent in productive labor or involve physical or mental
exertion
2. an employee need not leave the premises of the workplace in order that his rest period
shall not be counted, it being enough that he stopped working
3. if the work performed was necessary or it benefited the employer or the employee could
not abandon work at end of his working hours because there is no replacement, with the
knowledge of employer or supervisor
4. employee is inactive by reason of interruptions in his work beyond his control or interval is
too brief to be utilised effectively and gainfully in the employees own interest
L. All time during which an employee is required to be on duty or to be at the prescribed

place

M. All time during which an employee is permitted to work
- all hours employee gives to employer
- rest periods of short duration
- work benefitted employer with his knowledge
- sleeping : subject to serious interruption or takes place under conditions substantially
less desirable than would be likely to exist at the employees home
- NOT WORKING HOURS: opportunity for comparatively uninterrupted sleep
under fairly desirable condition even if required to remain on or near the
employers premises
- remain on call that he cannot use his time effectively
- travel
- home to work : not compensable
- compensable if employee receives emergency call outside his regular working
hours and required to travel to his regular place of business or other working
site
- from job site to another
- travel away from home overnight : if it cuts across the employees workday
- lectures, meeting and trainings EXCEPT
A. attendance is outside working hours
B. voluntary
C. employee does not perform productive work
- grievance meeting
- semestral break
- waiting time : if spent predominantly for the employers or employees benefit
- brown out: 20minutes or less compensable
- beyond 20 minutes non-compensable/ not hours worked
1. employees can leave the workplace
2. use time effectively for their own interest
ART 85
MEAL PERIODS
not less than 60 minutes

COMPENSABLE
- if less than 60 minutes
- predominantly for employers benefit
- continuous for several shifts
- employee is not relieved if he is required to perform his duties, whether active or
inactive, while eating
NOT COMPENSABLE
- If 60 mins
- employees themselves request that their meal period be shortened
ART 86
NIGHT SHIFT DIFFERENTIAL
10% of his regular wage for each hour

hours worked : 10PM to 6AM
at least 6 employees
NOT WAIVEABLE
founded on public policy
EXCEPT for higher benefits AND in arrears
ART 87
OVERTIME WORK
Additional pay for service or work rendered or performed in excess of eight hours a day by
employees or labourers in employment covered by the eight-hour labor law (art87) and nor
exempt from its requirements
computed by multiplying the overtime hourly rate by the number of hours worked in
excess of eight hours
the receipt of overtime pay will not preclude the right to night differential pay
REGULAR DAY : 25% for each hour

SCHEDULED REST DAY / SPECIAL HOLIDAY : 30%
REGULAR HOLIDAY: 30%
SCHEDULED REST DAY / REGULAR HOLIDAY : 30%
WORK DAY - twenty-four-hour period which commences from the time the employee
regularly starts to work
- any work in excess of 8hrs within the 24hr period is considered as
overtime work
- Broken Hours of Work : need not be continuous to constitute as the legal working
day as long as the eight hours is within a work day
- Work in Different Shifts in a Work Day : the work performed by substituting worker
during the second shift is overtime work if this is rendered after completing his
regular tour of duty since the second shift is within his work day
Estoppel and laches cannot be invoked against employees or labourers in action for the
recovery of compensation for past overtime work
laborers cannot waive their right to extra compensation
overtime pay cannot be waived
any stipulation in a contract where the laborer works beyond 8hrs without additional
compensation is null and void
MAY BE COMPROMISED
in consideration of benefits and privileges which may be more than what will accrue to
them in overtime pay
written agreement (express) must be voluntarily entered - for composite or package pay
or all inclusive salary
COMPRESSED WORK WEEK

1. Scheme is necessary and voluntarily supported by majority of the employees affected
2. hazardous to health must conform with DOLEs standards
3. DOLE Regional Office is notified

- DEFINITION: number of work days reduced but the number of work hours increased
to more than 8 hours but shall not exceed 48 hours but no overtime pay is claimed
- waiver of right to overtime pay is valid under CWW Program
FLEXIBLE WORK ARRANGEMENTS

- alternative arrangements or schedule other than traditional or standard work hours, days
or week
1. Rotation Work Days - normal work days are reduced but should not last until 6 mos
2. Rotation of Workers -rotated or alternately provided work within the week
3. Forced Leave -required to go on leave for several days, utilizing leave credits
4. Broken-time schedule- work sched not continuous
5. Flexi-holiday schedule - employees agree to avail themselves of the holidays
ART 88
UNDERTIME
Undertime shall NOT be offset by overtime

undue deprivation of the employees overtime premium
they are not of equal value
ART 89
EMERGENCY OVERTIME WORK
1. Country is at war or national or local emergency declared by Congress or Chief Executive

2. Necessary to prevent loss of life or property or in case of imminent danger of public safety
due to an actual or impending emergency caused by serious accidents, fire, flood,
typhoon, earthquake
3. Urgent work to be performed on machines to avoid serious loss or damage to the
employer
4. Necessary to prevent loss or damage to perishable goods
5. Completion or continuation of work started before the 8th hour is necessary to prevent
serious obstruction or prejudice to business
ART 90
REGULAR WAGE
does not include the account of facilities provided by employer
ART 91
RIGHT TO WEEKLY REST DAY
a rest period of not less than 24hrs after 6 consecutive days
employer shall determine and schedule the rest day
SUBJECT to:
CBA
rules and regulations of DOLE
preference of employees based on religious grounds

ART 92
EMPLOYER REQUIRE TO WORK ON REST DAY
1. actual or impending emergencies

2. urgent work to be performed on machines to avoid serious loss to employer
3. abnormal pressure of work due to special circumstances
4. prevent loss or damage to perishable goods
5. nature of work requires continuous operations and stoppage of work may result in
irreparable loss
6. analogous or similar circumstances
7. work is necessary to avail favorable weather
GR: cannot compel to work on the rest day
ART 93
PREMIUM PAY FOR REST DAY OR HOLIDAY
1. Scheduled rest day - 30%

2. Sundays - 30%
3. Special holidays - 30%
4. Special holiday + Rest day - 50%
SPECIAL HOLIDAY (non-working : any day proclaimed by the President)

1. Ninoy Aquino Day - August 21
2. All Saints Day - Nov. 1
3. Last Day of the Year - Dec 31
4. So. Leyte Anniversary (local) - July 1
5. Maasin City Charter Day (local) - August 10
ART 94
RIGHT TO HOLIDAY PAY
100% of regular wage EXCEPT establishment less than 10

if required to work : 200%
should not be absent without pay the day before the holiday
12 REGULAR HOLIDAYS
1. New Year Day - January 1
2. Maundy Thursday
3. Good Friday
4. Araw ng Kagitingan - April 9
5. Labor Day - May 1
6. Independence Day - June 12
7. National Heroes Day
8. Eidl Fitr
9. Eidl Adha
10. Bonifacio Day - November 30
11. Christmas Day - December 25
12. Rizal Day - December 30
DOUBLE HOLIDAY - 300% if worked

- 200% if unworked
12-day Holiday Pay
applicable to monthly paid and daily paid employees because the labor code does not
distinguish
ART 95
RIGHT TO SERVICE INCENTIVE LEAVE
5 days with pay

shall not apply if already enjoying vacation leave 5 days with pay
can be converted to money
CANNOT BE UNILATERALLY WITHDRAWN:

1. ripened into company practice
2. consistent and deliberate
3. not due to error
ART 96
SERVICE CHARGE
85% covered employees

15% management
divided once every 2 weeks
not mandatory; a management prerogative
1. R.A. NO. 8187 - PATERNITY LEAVE
An Act Granting Paternity Leave Of Seven (7) Days With Full Pay To All Married Male
Employees In The Private And Public Sectors For The First Four (4) Deliveries Of The
Legitimate Spouse With Whom He Is Cohabiting And For Other Purposes.
not applicable to long distance relationship
not convertible to cash
legitimate spouse
SECTION 3. Definition of Term. - For purposes of this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not to report for work for seven (7) days but
continues to earn the compensation therefor, on the condition that his spouse has delivered a child or
suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period
of recovery and/or in the nursing of the newly-born child.
must be availed not late than 60 days from child birth
greater benefit from company shall prevail
lesser benefit adjusted according to law

SECTION 6. Nondiminution Clause. - Nothing in this Act shall be construed to reduce any existing
benefits of any form granted under existing laws, decrees, executive orders, or any contract
agreement or policy between employer and employee.
2. R.A. NO. 8282 (SOCIAL SECURITY LAW - SSS) MATERNITY LEAVE BENEFIT
not included in the computation of 13th month pay

self-employed can avail if they comply with required contribution
applicable whether child is legitimate or illegitimate
SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly
contributions in the twelve-month period immediately preceding the semester of her childbirth or
miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her
average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery,
subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it
may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the
maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits
Provided by this Act for the same period for which daily maternity benefits have been received;
"(d) That the maternity benefits Provided under this section shall be paid only for the first four (4)
deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the
amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory
proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required
contributions having been remitted for her by her employer to the SSS, or without the latter having
been previously notified by the employer of the time of the pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits which said employee member would otherwise have been
entitled to.
3. R.A NO. 8972 - PARENTAL LEAVE FOR SOLO PARENT
cumulative
REQUISITES:
1. must have rendered service to employer for at least one year
2. must present SOLO PARENT ID from DSWD
3. within reasonable time
MEMORIZE THIS (a)!

a) "Solo parent" - any individual who falls under any of the following categories:

(1) A woman who gives birth as a result of rape and other crimes against chastity even
without a final conviction of the offender: Provided, That the mother keeps and raises the
child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is
detained or is serving sentence for a criminal conviction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or
mental incapacity of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or
de facto separation from spouse for at least one (1) year, as long as he/she is entrusted
with the custody of the children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of
nullity or annulment of marriage as decreed by a court or by a church as long as he/she is
entrusted with the custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of
spouse for at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear her/his child/children
instead of having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children;
(10) Any family member who assumes the responsibility of head of family as a result of the
death, abandonment, disappearance or prolonged absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits under this Act, such
that he/she is no longer left alone with the responsibility of parenthood, shall terminate his/
her eligibility for these benefits.
(b) "Children" - refer to those living with and dependent upon the solo parent for support who
are unmarried, unemployed and not more than eighteen (18) years of age, or even over
eighteen (18) years but are incapable of self-support because of mental and/or physical
defect/disability.
(c) "Parental responsibility" - with respect to their minor children shall refer to the rights and
duties of the parents as defined in Article 220 of Executive Order No. 209, as amended,
otherwise known as the "Family Code of the Philippines."
(d) "Parental leave" - shall mean leave benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo parent employee to vary his/her
arrival and departure time without affecting the core work hours as defined by the employer.
Section 6. Flexible Work Schedule. - The employer shall provide for a flexible working
schedule for solo parents: Provided, That the same shall not affect individual and company
productivity: Provided, further, That any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds.

Section 7. Work Discrimination. - No employer shall discriminate against any solo parent
employee with respect to terms and conditions of employment on account of his/her status.
Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave
of not more than seven (7) working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year.
4. R.A NO. 9262 - BATTERED WOMAN LEAVE
must submit certification that an action with RA 9262 is pending

non-cumulative
SECTION 1. Short Title.- This Act shall be known as the "Anti-Violence Against Women and
Their Children Act of 2004.
SECTION 3. Definition of Terms

(b) "Battery" refers to an act of inflicting physical harm upon the woman or her child resulting
to the physical and psychological or emotional distress.
(c) "Battered Woman Syndrome" refers to a scientifically defined pattern of psychological and
behavioral symptoms found in women living in battering relationships as a result of cumulative
abuse.
SECTION 43. Entitled to Leave. Victims under this Act shall be entitled to take a paid leave
of absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil
Service Rules and Regulations, extendible when the necessity arises as specified in the
protection order.
Any employer who shall prejudice the right of the person under this section shall be penalized
in accordance with the provisions of the Labor Code and Civil Service Rules and Regulations.
Likewise, an employer who shall prejudice any person for assisting a co-employee who is a
victim under this Act shall likewise be liable for discrimination.
5. R.A. NO. 9710 - GYNECOLOGICAL DISORDER LEAVE
(b) "Discrimination Against Women" refers to any gender-based distinction, exclusion, or

restriction which has the effect or purpose of impairing or nullifying the recognition,
enjoyment, or exercise by women, irrespective of their marital status, on a basis of equality of
men and women, of human rights and fundamental freedoms in the political, economic,
social, cultural, civil, or any other field.
It includes any act or omission, including by law; policy, administrative measure, or practice,
that directly or indirectly excludes or restricts women in the recognition and promotion of their
rights and their access to and enjoyment of opportunities, benefits, or privileges.
A measure or practice of general application is discrimination against women if it fails to
provide for mechanisms to offset or address sex or gender-based disadvantages or limitations
of women, as a result of which women are denied or restricted in the recognition and
protection of their rights and in their access to and enjoyment of opportunities, benefits, or
privileges; or women, more than men, are shown to have suffered the greater adverse effects
of those measures or practices.
Provided, finally, That discrimination compounded by or intersecting with other grounds,
status, or condition, such as ethnicity, age, poverty, or religion shall be considered
discrimination against women under this Act.
(c) "Marginalization" refers to a condition where a whole category of people is excluded from
useful and meaningful participation in political, economic, social, and cultural life.
(d) "Marginalized" refers to the basic, disadvantaged, or vulnerable persons or groups who
are mostly living in poverty and have little or no access to land and other resources, basic
social and economic services such as health care, education, water and sanitation,
employment and livelihood opportunities, housing, social security, physical infrastructure; and
the justice system.
Section 18. Special Leave Benefits for Women. - A woman employee having rendered
continuous aggregate employment service of at least six (6) months for the last twelve (12)
months shall be entitled to a special leave benefit of two (2) months with full pay based on her
gross monthly compensation following surgery caused by gynecological disorders.
Section 22. Right to Decent Work. - The State shall progressively realize and ensure decent
work standards for women that involve the creation of jobs of acceptable quality in conditions
of freedom, equity, security, and human dignity.
(a) Decent work involves opportunities for work that are productive and fairly remunerative as
family living wage, security in the workplace, and social protection for families, better
prospects for personal development and social integration, freedom for people to express
their concerns organize, participate in the decisions that affect their lives, and equality of
opportunity and treatment for all women and men.
(b) The State shall further ensure:
(1) Support services and gears to protect them from occupational and health hazards taking
into account women's maternal functions;
(2) Support services that will enable women to balance their family obligations and work
responsibilities including, but not limited to, the establishment of day care centers and breast-
feeding stations at the workplace, and providing maternity leave pursuant to the Labor Code
and other pertinent laws;
(3) Membership in unions regardless of status of employment and place of employment; and
(4) Respect for the observance of indigenous peoples' cultural practices even in the
workplace.
(c) In recognition of the temporary nature of overseas work, the State shall exert all efforts to
address the causes of out-migration by developing local employment and other economic
opportunities for women and by introducing measures to curb violence and forced and
involuntary displacement of local women. The State shall ensure the protection and promotion
of the rights and welfare of migrant women regardless of their work status, and protect them
against discrimination in wages, conditions of work, and employment opportunities in host
countries.
LEAVE WITH PAY:
1. SERVICE INCENTIVE LEAVE (Art 95 of LC)

Kasambahay Law - not convertible to cash
cannot be unilaterally withdrawn
2. MATERNITY LEAVE
3. PATERNITY LEAVE non-convertible to
4. PARENTAL LEAVE FOR SOLO PARENT cash
5. BATTERED WOMAN LEAVE
6. GYNECOLOGICAL DISORDER LEAVE
ART 97
DEFINITION OF TERMS
EMPLOYER - 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, subdivision
and instrumentalities, all GOCC and institutions, as well as non-profit private institutions or
organizations
WAGE - paid to any employee; the remuneration or earnings capable of being expressed in
terms of money for work done or to be done, services rendered or to be rendered
- includes COMMISSIONS : direct remuneration for services rendered which contributed
to the increase of income of employer
- includes fair and reasonable value of board and lodging and other facilities customarily
provided by the employer
FACILITIES - deductible to wage if for the benefit of employee
- articles or services for the benefit of the employee or his family but does not include
tools of the trade or articles and services primarily for the benefit of employer or
necessary to the conduct of employers business
SUPPLEMENTS - extra remuneration or special privileges or benefits given to or received
by the laborers over and above their ordinary earnings
- not deductible to wages since it is for the benefit of the employer
REQUISITES FOR FACILITIES

1. proof must be shown such facilities are customarily furnished by trade
2. provision of deductible facilities must be voluntarily accepted in writing by employee
3. facilities must be charged at a fair and reasonable value
GRATUITY (BONUS) - something freely given or without recompense

- money benefit given to workers the purpose of which is to reward employees or
labourers who rendered satisfactory service
REQUISITES FOR GRATUITY
1. given in a fixed amount without condition
2. company practice
EQUAL PAY FOR EQUAL WORK - if an employer accords the same position and rank, the
presumption is that these employees perform equal work
FAIR DAYS WAGE FOR A FAIR DAYS WORK - no work, no pay
ART 98
APPLICATION
These provisions are not applicable to:

1. farm tenancy or leasehold
2. domestic service
3. homeworkers or needle work
4. any cottage industry registered according to law
ART 99
REGIONAL MINIMUM WAGE
STATUTORY MINIMUM WAGE - lowest wage rate fixed by law that an employer can pay
his workers
- compensation which is less than such minimum rate is considered an underpayment
that violates the law.
prescribed by the Regional Tripartite Wages and Productivity Board (RTWPB)
cannot be exempted to comply due to poor financial condition
acceptance of wage below minimum does not give rise to estoppel
EXEMPTIONS:
1. Art 98
2. duly registered cooperative recommended by Bureau of Coop Development for the
purpose of making it viable
3. BMBE - Brgy. Micro Business Enterprise : any business entity or enterprise engaged in the
production, processing or manufacturing of products and commodities whose total assets
including loans is not more than 3M Pesos
4. Retail or service establishment employing not more than 10 workers must apply for
exemption
- Retail enterprise : engaged in the sale of goods that are commonly bought by
private individuals for personal or household use and is characterized by small
sales.
- Service enterprise : engaged predominantly in providing personal service to
individuals for their own or household use.
5. distressed establishments, new business enterprises adversely affected by natural
calamities
LIABILITY FOR NON-COMPLIANCE

CRIMINAL - imprisonment and fine non-probationable
CIVIL - double indemnity
ART 100
NON-DIMINUTION OF BENEFIT
REQUISITES
1. grant of benefit is founded into a policy that has ripened into practice over a long period (2
years)
2. practice is consistent and deliberate
3. practice is not due to error in construction of a doubtful or difficult question of law
4. diminution is done unilaterally by the employer
EXCEPTIONS TO NON-DIMINUTION RULE

1. correction of error
2. negotiated benefits contained in CBA
3. wage order compliance across the board salary increase
4. benefits on reimbursement basis per diem
5. reclassification of position
6. contingent benefit or conditional bonus depends on certain conditions
7. productivity incentive
ART 101
PAYMENT BY RESULT
Two Kinds:
1. Presence of Control - regarding time and performance
B. SUPERVISED
- employer controls the manner as to how work should be done
- usually performs work in company premises
BENEFITS:
SIL for 5 days with pay
night shift differential pay
holiday pay
C. UNSUPERVISED
- control over the result of the work itself
2. Rate of Payment
A. PIECE RATE PRESCRIBED BY DOLE
- determined by multiplying the no. of pieces produced by rate per piece
- BENEFITS:
overtime pay
premium pay
B. OUTPUT RATE PRESCRIBED BY EMPLOYER BUT NOT APPROVED BY DOLE
- multiplied by the rate per piece determined by employer
Benefits of ALL piece rate workers

minimum daily rate
13th month pay
PAYMENT OF WAGES
ART 102
FORMS OF PAYMENT
check or money
NOT ALLOWED: promissory notes, vouchers, tokens, coupons, tickets, chits or any object
other than the legal tender
ART 103
TIME OF PAYMENT
every two weeks or twice a month intervals not more than 16days
ART 104
PLACE OF PAYMENT
GR: at or near the place of undertaking
EXCEPTION:
there is deterioration of peace and order condition or actual emergencies or impending
danger
employer provides free transportation back and forth
any other analogous circumstance
employer shall not pay employee at any bar, night/day club, drinking establishment,
massage clinic, dance hall or similar places
ART 105
DIRECT PAYMENT OF WAGES
GR: paid directly to the workers
EXCEPTION:
in cases of for majeure - may be paid through another persons under written authority
given by the worker for that purpose
death of worker - heirs of the worker without necessity of intestate proceedings
ART 106-109 (D.O. No. 18-02)

CONTACTORS AND SUBCONTRACTORS
CONTRACTING / SUBCONTRACTING - arrangement whereby a principal agrees to put out

or farm out with a contractor or subcontractor the performance or completion of a specific job /

work/ service within a definite predetermined period. regardless or whether such job / work/
service is to be performed within or outside the premises of the principal
PRINCIPAL - (indirect employer) any employer, whether a person or entity, including

government agency, GOCC, who / which puts out or farms out a job / work/ service to a
contractor
CONTRACTOR - any person or entity or cooperative engaged in legitimate contracting or

subcontracting providing services, skilled worker, temporary workers or a combination to a
principal under a service agreement
CONTRACTORS EMPLOYEE - employed by the contractor to perform a complete job / work/

service pursuant to a service agreement with the principal
Principal - Contractual Worker : no ER-EE relationship

Contractor - Contractual Worker : ER-EE relationship
PROHIBITIONS:
1. Labor-only contracting
2. Arrangement that violate public policy
LABOR-ONLY CONTRACTING
arrangement to merely recruit or place to be employed, supervised and paid by another,
who is the employer
merely to find and supply people; pseudo-contractor
does not have substantial capital - paid up capital stocks of 3M for corporation, partnership
or cooperative OR net worth of 3M for single proprietorship
includes financial capacity to do contracted job - NFCC
does not exercise right of control over the performance of the work
ARRANGEMENT AGAINST PUBLIC POLICY

contracting out a job not done in good faith and not justified by the exigencies of the
business or analogous circumstances
LEGITIMATE CONTRACTING:
1. contractor must be registered in accordance with the law
2. must have substantial capital or investment
3. service agreement ensures compliance with all the rights and benefits under labor law
PRINCIPALS LIABILITY IN LEGITIMATE CONTRACTING

indirect employer is responsible with his contractor or subcontractor for any violation of
any provision of the Labor Code
wages and money claims : if contractor fails to pay, employer shall be jointly and severally
(solidarily) liable with his contractor or subcontractor
cannot escape liability even if he has paid the workers wage rate
ART 110
WORKER PREFERENCE IN CASE OF BANKRUPTCY
in case of bankruptcy or liquidation, workers shall enjoy first preference as regards their
wage and other monetary claims
there mist be a declaration of bankruptcy or judicial liquidation before the workers
preference may be enforced
workers unpaid wages and monetary climax shall be paid in full before claims of the
government and other creditors must be paid.
mortgage will create lien - lien is preferred over the claims of employees
CONDITION SINE QUA NON - to enforce preference

1. prior formal declaration of insolvency
2. bankruptcy
3. judicial liquidation of employers business
ART 111
ATTORNEYS FEES
10% of the amount of wages
unlawful to demand or accept attorneys fees which exceed 10%
not payable to the lawyer but to the client
non-lawyers are not entitled to attorneys fees
PAO lawyers are disqualified from receiving attorneys fees
PROHIBITION REGARDING WAGES
ART 112
NON-INTERFERENCE OF DISPOSAL OF WAGES
no employer can limit or interfere an employees disposal of wages
cannot force employee to buy merchandise, commodities from employer
ART 113
WAGE DEDUCTION
GR: no employer shall make any deduction from wages of employees
EXCEPTIONS: [deductions authorised by law]
1. value of meals and other facilities
2. premiums on insurance
3. union dues - with written authorisation from employees
4. debt that is due and demandable
5. court awards - debts incurred for food, shelter, clothing and medical attendance
6. withholding tax
7. deductions from legally established cooperatives
8. SSS, Philhealth and PAGIBIG
payment made to third persons

deduction must be authorised by employee
employer may agree but not required to do so
employer must not receive any pecuniary benefit, directly or indirectly

ART 114
DEPOSIT FOR LOSS OR DAMAGE
GR:
Deduction for reimbursement of loss or damage to tools, materials, equipment supplied by
employer
EXCEPTION:
employer is engaged in trade where the practice of making deduction or requiring deposit is
recognised and is necessary or desirable
ART 115
LIMITATION
no deduction from the deposits of the actual amount of loss or damage shall be made to the
employee unless he has been heard
Requisites for deductions from the EEs salary:

1. the employee is shown to be responsible for loss or damage
2. the employee is given ample opportunity to show cause to show cause why deduction
should not be made
3. the amount of deduction is fair & reasonable and shall not exceed the actual loss or
damage
4. the deduction from the employees wage does not exceed 20% of the wage in a week
ART 116
WITHHOLDING OF WAGES & KICKBACKS PROHIBITED
unlawful for any person, directly or indirectly to withhold any amount or induce him to give
up his wage by force, stealth, intimidation or threat
ART 117
DEDUCTION TO ENSURE EMPLOYMENT
unlawful to make deductions for the benefit of the employer or intermediary as consideration
of a promise of employment or retention
ART 118
RETALIATORY MEASURES
unlawful to refuse to pay or reduce wages against employee who has filed any complaint or
instituted any proceeding against employer
ART 119
FALSE REPORTING
unlawful to make any statement, report or record filed knowing such to be false in any
material aspect
payroll, time records must be preserved for three years
ART 120-124
NATIONAL WAGE AND PRODUCTIVITY COMMISSION

to review regional wage levels set by the Regional Tripartite Wage and Productivity Board to
determine if these are in accordance to law and national development plan
to review plans and programs of RTWPB to determine whether they are with the national
development plan
REGIONAL TRIPARTITE WAGES & PRODUCTIVITY BOARD (RTWPB)

to determine and fix minimum wage rate applicable in their region, provinces, industries
therein and to issue the corresponding wage order, subject to guidelines issued by the
commission
STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING:

1. the demand for living wage
2. wage adjustment vis-avis the consumer price index
3. the cost of living and changes or increases therein
4. the needs of workers and their families
5. the need to induce industries to invest in the countryside
6. improvements in standards of living
7. the prevailing wage levels
8. fair return of the capital invested and capacity to pay of employers
9. effects on employment generation and family income
10. the equitable distribution of income and wealth along the imperatives of economic and
social development
WAGE ORDER - must not be disturbed within 12 months from effectivity

EXCEPT : supervening events like economic disturbance
ISSUANCE OF WAGE ORDER - within 30 days after conclusion of the last hearing
EFFECTIVITY - 15 days after publication
REVIEW OF WAGE ORDER - motu propio or upon appeal
GROUNDS:
non-conformity to the prescribed guidelines
question of law
grave abuse of discretion
APPEAL - any aggrieved party may appeal to the commission 10 days after
publication of the order
WAGE DISTORTION
a situation wherein an increase in prescribed wage rate results in the elimination or severe
contraction of intentional qualitative 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.
for distortion to exist, the law does not require an elimination or total abrogation of
quantitative wage or salary difference; a severe contraction is enough
must be one arising from compliance with wage order
no distortion if the employees are located in different regions
it is non-strikeable cause

How to correct: (in order)
ORGANIZED(with CBA) UNORGANIZED

1. ER-EE negotiation ER-EE endeavor to correct
2. grievance machinery National Conciliation & Mediation Board
3. voluntary arbitration Labor Arbiter
PRINCIPLES IN SALARY DISTORTION

assumes an existing grouping or classification of employees on legitimate basis
result of government decreed increase in minimum wage
no legal requirement that the gap be restored precisely in the same amount
re-establishment maybe done through grievance procedures or CBA
ART 128
VISITORIAL AND ENFORCEMENT POWER
VISITORIAL POWER - routine or not - when there is a complaint inspection

Sec of Labor and reps shall have access to employers records and premises at any
time or day, to question any employee and investigate any fact, condition or matter which
maybe necessary to determine violations or which may aid enforcement of the Labor
Code, law or wage order
ENFORCEMENT POWER
the power to issue compliance order (then and there) to give effect to the labor
standards provisions of this code; issue writs of execution to the appropriate authority for
the issuance of orders
EXCEPT: where the employer contests the finding of the labor employment and
enforcement officer and raises issues supported by documentary proofs which were
not considered in the courts of inspection (case will be forwarded to Labor Arbiter of
NLRC)
order stoppage of work or suspension of operation of an establishment for non-
compliance with the law or IRR or poses grave and imminent danger to health and safety
of workers
no limitation in power to issue compliance order
applicable only if there is ER-EE RELATIONSHIP
regional directors exercise quasi-judicial power to determine the existence of
employment relationship. Such determination is subject to judicial review not by
NLRC
DOUBLE INDEMNITY LAW - failure or refusal to pay mandatory wage increase is a criminal
offense. the employer shall also be ordered to pay an amount double to the unpaid benefits
owing to the employee
- DOLE Regional Directors and NLRC Labor Arbiters are authorised to impose such
double indemnity (Grand Asian, January 29, 2014)
REMEDY OF EMPLOYER
Motion for reconsideration - 7 days
Appeal to the Sec. of Labor - 10 days
after 10 days, it becomes final
MR > Appeal > Certiorari Rule 65 (CA)
appeal maybe perfected only upon posting of a cash or surety bond equivalent to the
monetary award
no inferior court or entity shall issue a temporary or permanent injunction or restraining
order or otherwise assume jurisdiction over any case involving the enforcement orders
issued in accordance with this article
ART 129
RECOVERY OF WAGES, SIMPLE MONEY CLAIMS, AND OTHER BENEFITS
small money claims
filed with Regional Director
REQUISITES:
No ER-EE Relationship
aggregate money claim of employees should not exceed P5k
no reinstatement claim
5k with reinstatement Labor Arbiter
Kasambahay -
WORKING CONDITIONS FOR SPECIAL GROUPS
WOMEN
ART 130
FACILITIES FOR WOMEN
1. provide proper seats for women and permit to use them
2. separate toilet rooms and lavatories and dressing rooms for women
3. nursery in the workplace
4. appropriate minimum wage and other standard for retirement or termination
ART 131
MATERNITY LEAVE BENEFITS
Normal 60 days
Ceasarean Section 78 days
Battered Woman Leave 5 days (Anti-VAWC Law)
Gynecological Leave 2 months
ART 132
FAMILY PLANNING SERVICES
provide clinic or infirmary with free family planning services
applicable if there are 200 employees
ART 133
DISCRIMINATION PROHIBITED
1. payment of lesser compensation
2. favoring male over female in employment opportunities
EXCEPT:
Bona Fide Occupational Qualification (BFOQ)

job itself necessarily requires a particular qualification, job applicant or worker
maybe disqualified if he does not possess it
ER mus prove a compelling business necessity for which no alternative exists other
than discriminatory practice
1. employment qualification is reasonably related to the essential operation
2. factual basis for believing that all persons meeting the qualification would be
unable to perform properly the duties of the job
ART 134
STIPULATION AGAINST MARRIAGE
unlawful to require as a condition of employment or its continuation that a woman
employee shall not get married or upon getting married woman employee is deemed
resigned by reason of her marriage
ART 136
CLASSIFICATION OF WOMEN WORKERS
a woman working in any night club, lounge, etc. under the effective control or supervision
of the ER for a substantial period of time is considered an EE for purposes of labor and
social legislation
RA No. 7877 ANTI-SEXUAL HARASSMENT ACT

WET Places Work, Education, Training
not necessarily categorical oral or written statements
as long as it creates an intimidating, hostile environment for the employee
employer is solidarily liable if there is no action despite awareness
victim may file other actions maybe male of female
prescription : 3 years
MINORS
ART 137
EMPLOYMENT OF MINORS (RA NO. 7610)
Employable Age:
1. 15 years and below
under sole responsibility of parent or guardian
should not interfere with his schooling
TIME : 20 hours / week, 4 hrs / day
not allowed : 8PM - 6AM
2. Between 15 to 18 years
TIME : 48 hours / week, 8hrs / day
not allowed : 10PM - 6PM
no employment of person below 18 that is hazardous or deleterious in nature

not more than 20% of earnings of the child can be used for family needs
30% must go to a trust fund
if salary is P200K there must be a semi-annual accounting

INDUSTRIAL HOMEWORK
ART 151 - 153
a system of production under which work for an employer or contractor is carried out by a
homeworker at his home
materials may or may not be furnished by employer
decentralized form of production characterised by little supervision or regulation of
methods of work
NOT ALLOWED:
explosives
drugs and poison
exposure to toxic substances
SALIENT FEATURES
[REPUBLIC ACT NO. 10361]
AN ACT INSTITUTING POLICIES FOR THE PROTECTION
AND WELFARE OF DOMESTIC WORKERS
Sec. 4 (c) Domestic work refers to work performed in or for a household or households.
(d) Domestic worker or Kasambahay refers to any person engaged in domestic work within
an employment relationship such as, but not limited to, the following: general househelp,
nursemaid or yaya, cook, gardener, or laundry person, but shall exclude any person who
performs domestic work only occasionally or sporadically and not on an occupational basis.
The term shall not include children who are under foster family arrangement, and are
provided access to education and given an allowance incidental to education, i.e. baon,
transportation, school projec
SEC. 6. Board, Lodging and Medical Attendance. The employer shall provide for the basic
necessities of the domestic worker to include at least three (3) adequate meals a day and
humane sleeping arrangements that ensure safety.
The employer shall provide appropriate rest and assistance to the domestic worker in case of
illnesses and injuries sustained during service without loss of benefits.
At no instance shall the employer withdraw or hold in abeyance the provision of these basic
necessities as punishment or disciplinary action to the domestic worker.
SEC. 10. Prohibition Against Privileged Information. All communication and information
pertaining to the employer or members of the household shall be treated as privileged and
confidential, and shall not be publicly disclosed by the domestic worker during and after
employment. Such privileged information shall be inadmissible in evidence except when the
suit involves the employer or any member of the household in a crime against persons,
property, personal liberty and security, and chastity.
ARTICLE III
PRE-EMPLOYMENT
SEC. 11. Employment Contract. An employment contract shall be executed by and between
the domestic worker and the employer before the commencement of the service in a
language or dialect understood by both the domestic worker and the employer. The domestic
worker shall be provided a copy of the duly signed employment contract which must include
the following:
(a) Duties and responsibilities of the domestic worker;
(b) Period of employment;
(c) Compensation;
(d) Authorized deductions;
(e) Hours of work and proportionate additional payment;
(f) Rest days and allowable leaves;
(g) Board, lodging and medical attention;
(h) Agreements on deployment expenses, if any;
(i) Loan agreement;
(j) Termination of employment; and
(k) Any other lawful condition agreed upon by both parties.
The Department of Labor and Employment (DOLE) shall develop a model employment
contract for domestic workers which shall, at all times, be made available free of charge to
domestic workers, employers, representative organizations and the general public. The DOLE
shall widely disseminate information to domestic workers and employers on the use of such
model employment contract.
In cases where the employment of the domestic worker is facilitated through a private
employment agency, the PEA shall keep a copy of all employment contracts of domestic
workers and shall be made available for verification and inspection by the DOLE.
SEC. 14. Deposits for Loss or Damage. It shall be unlawful for the employer or any other
person to require a domestic worker to make deposits from which deductions shall be made
for the reimbursement of loss or damage to tools, materials, furniture and equipment in the
household.
SEC. 16. Employment Age of Domestic Workers. It shall be unlawful to employ any person
below fifteen (15) years of age as a domestic worker. Employment of working children, as
defined under this Act, shall be subject to the provisionsof Section 10(A), paragraph 2 of
Section 12-A, paragraph 4 of Section 12-D, and Section 13 of Republic Act No. 7610, as
amended, otherwise known as the Special Protection of Children Against Child Abuse,
Exploitation and Discrimination Act.
Working children shall be entitled to minimum wage, and all benefits provided under this Act.
Any employer who has been sentenced by a court of law of any offense against a working
child under this Act shall be meted out with a penalty one degree higher and shall be
prohibited from hiring a working child.
SEC. 20. Daily Rest Period. The domestic worker shall be entitled to an aggregate daily rest
period of eight (8) hours per day.
SEC. 21. Weekly Rest Period. The domestic worker shall be entitled to at least twenty-four
(24) consecutive hours of rest in a week. The employer and the domestic worker shall agree
in writing on the schedule of the weekly rest day of the domestic worker:Provided, That the
employer shall respect the preference of the domestic worker as to the weekly rest day when
such preference is based on religious grounds. Nothing in this provision shall deprive the
domestic worker and the employer from agreeing to the following:
(a) Offsetting a day of absence with a particular rest day;
(b) Waiving a particular rest day in return for an equivalent daily rate of pay;
(c) Accumulating rest days not exceeding five (5) days; or
(d) Other similar arrangements.
SEC. 22. Assignment to Nonhousehold Work. No domestic worker shall be assigned to
work in a commercial, industrial or agricultural enterprise at a wage rate lower than that
provided for agricultural or nonagricultural workers. In such cases, the domestic worker shall
be paid the applicable minimum wage.
SEC 25. Payment of Wages. Payment of wages shall be made on time directly to the
domestic worker to whom they are due in cash at least once a month. The employer, unless
allowed by the domestic worker through a written consent, shall make no deductions from the
wages other than that which is mandated by law. No employer shall pay the wages of a
domestic worker by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or
any object other than the cash wage as provided for under this Act.
The domestic worker is entitled to a thirteenth month pay as provided for by law.
SEC. 29. Leave Benefits. A domestic worker who has rendered at least one (1) year of
service shall be entitled to an annual service incentive leave of five (5) days with
pay: Provided, That any unused portion of said annual leave shall not be cumulative or
carried over to the succeeding years. Unused leaves shall not be convertible to cash.
SEC. 30. Social and Other Benefits. A domestic worker who has rendered at least one (1)
month of service shall be covered by the Social Security System (SSS), the Philippine Health
Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG,
and shall be entitled to all the benefits in accordance with the pertinent provisions provided by
law.
Premium payments or contributions shall be shouldered by the employer. However, if the
domestic worker is receiving a wage of Five thousand pesos (P5,000.00) and above per
month, the domestic worker shall pay the proportionate share in the premium payments or
contributions, as provided by law.
The domestic worker shall be entitled to all other benefits under existing laws.
SEC. 33. Termination Initiated by the Domestic Worker. The domestic worker may terminate
the employment relationship at any time before the expiration of the contract for any of the
following causes:
(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the
household;
(b) Inhuman treatment including physical abuse of the domestic worker by the employer or
any member of the household;
(c) Commission of a crime or offense against the domestic worker by the employer or any
member of the household;
(d) Violation by the employer of the terms and conditions of the employment contract and
other standards set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of
the household; and
(f) Other causes analogous to the foregoing.
SEC. 34. Termination Initiated by the Employer. An employer may terminate the services of
the domestic worker at any time before the expiration of the contract, for any of the following
causes:
(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the
employer in connection with the formers work;
(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of
duties;
(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;
(d) Commission of a crime or offense by the domestic worker against the person of the
employer or any immediate member of the employers family;
(e) Violation by the domestic worker of the terms and conditions of the employment contract
and other standards set forth under this law;
(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of
the household; and
(g) Other causes analogous to the foregoing.
ARTICLE VII
SETTLEMENT OF DISPUTES
SEC. 37. Mechanism for Settlement of Disputes. All labor-related disputes shall be elevated
to the DOLE Regional Office having jurisdiction over the workplace without prejudice to the
filing of a civil or criminal action in appropriate cases. The DOLE Regional Office shall exhaust
all conciliation and mediation efforts before a decision shall be rendered.
Ordinary crimes or offenses committed under the Revised Penal Code and other special
penal laws by either party shall be filed with the regular courts.
NIGHT WORKERS
ART 154
COVERAGE
permitted t work at night during a period of not less than 7 hours
consecutively from 10PM to 6AM
NIGHT WORKER employed person whose work requires performance of a
substantial number of hours at night which specified limit
ART 155
HEALTH ASSESSMENT
1. Before taking up an assignment as night worker
2. at regular intervals during assignment
3. if they experience health problems not cause by factors of work

ART 156
MANDATORY FACILITIES (RA NO. 10028)
suitable first aid
provide safe and healthful working conditions
adequate or reasonable facilities
sleeping or resting quarters
transportation
ART 157
TRANSFER
night workers who are certified as unfit for night work due to health reasons, shall be
transferred to a similar job they see fit
if transfer is not applicable, worker shall be granted the same benefits
temporarily unfit for right work shall have protection against dismissal or notice of
dismissal
ART 158
WOMEN NIGHT WORKERS
GR:
pregnant women and nursing women are not allowed
EXCEPT:
1. before and after childbirth at least 16 weeks
2. for additional periods secure medical certificate
3. certify fitness to render work
EXCEPTION TO THE EXCEPTION:
they may be allowed to work if a competent physician, other than the company physician shall
certify their fitness to render at night
STATE INSURANCE FUND
ART 172
develop insurance separate from SSS and GSIS
contribution is 1% of the monthly salary
employer pays, employee doe snot give a share to the contribution
compensation benefit for injury or disease that is not work-connected
SOURCE of COMPENSATION
direct payment employer pays directly the employee
insurance statutes insurance operated by private company or government
FORMS: medical supplies and services or cash income
NO PRESUMPTIVE COMPENSABILITY except for AFP and PNP
INJURY any harmful result of change in the human organism from any accident arising
out of and on the course (place) of the employment
FOR INJURY TO BE COMPENSABLE

1. employee must have been injured at the place of work he is required
2. employee must have been performing his official function
3. injury is sustained elsewhere, employee must be executing an order for employer
1.1 The act of the employee of going to or coming from the workplace must have been a
continuing act, that is, he had not been diverted from it by any other activity, an she had not
departed from his usual route to, or from, his workplace.
1.2. Regarding an employee on special errand, the special errand must have been official and
in connection with his work
TWENTY-FOUR HOUR DUTY DOCTRINE - acts and circumstances causing the injury or
death of a police officer although not on official line of duty but basically police service in
character shall be compensable.
EXCEPTIONS:
1. INGRESS - EGRESS / PROXIMITY RULE
where the employee is about to enter or about to leave the premises of his employer
by way of exclusive or customary means of ingress-egress
injuries sustained off the premises of the employer but while using a customary means
of ingress and egress
2. STREET - PERIL DOCTRINE - GOING TO OR COMING FROM RULE
must be a continuing act, had not diverted therefrom usual route
running a special errand (1) official (2) in connection with work
3. INCIDENTS OF EMPLOYMENT
acts of personal ministration - lunch, toilet, refreshment
acts for the benefit of employer
acts done to further good will of business
slight deviation from work from curiosity
acts in emergencies - rescue act of employment
ACTS FOR THE BENEFIT OF EMPLOYER
discharging some duty he is authorised or directed to perform for the furtherance of
employers business
4. EXTRA - PREMISES RULE
company provides the means of transportation and employee sustain injury on board,
employer is liable
5. SPECIAL ERRAND RULE
outside company premises doing an office order or locator slip or pass for official
business
6. LIVING, BOARDING & LODGING ON PREMISES OF EMPLOYER / AT WORKING
PLACE
reasonably attributable or incidental to nature of employment
requirement of the contract of hiring
7. DUAL PURPOSE DOCTRINE
sustained injury during a trip for the benefit of employer even if during the course
employee pursues personal purpose
8. EMPLOYER - SPONSORED ACTIVITY / SPECIAL ENGAGEMENT RULE / DIRECT
PREMISES RULE
recreation indulged was fostered and encouraged by the employer to the end of
efficiency of their service
employee is required to attend
join and participate in social club or organization for business reason
9. ACTS OF GOD / FORCE MAJEURE
positional and local risk doctrine if an employee by reason of his duties is exposed
to a special or peculiar danger from the elements, that is, one greater than that to
which other persons in the community are exposed, and an unexpected injury occurred
10. ASSAULT
arising from quarrel over work assignment
11. INCREASED RISK JOB
jobs having to do with keeping the peace or guarding property
keeping or carrying money
expose to direct contact with lawless and irresponsible members of the community
bus driver, taxi driver or street conductor
12. VIOLATION OF RULES
violation of the rule did not cause the accident
serious doubt that prohibition was known to employees
violation was not intentional but due to carelessness or negligence
LIMITATION OF LIABILITY : NOT COMPENSABLE:

due to intoxication
willful intention to injure or kill himself or others
EXCEPT : insanity
notorious negligence - a deliberate act of the employee to disregard his own personal
safety
excluded from coverage of law
SICKNESS any illness definitely accepted as an occupational disease listed by the

commission or any illness caused by employment subject to proof by the employee that the
risk of contracting the same is increased by working condition.
- THEORY OF INCREASED RISK if the illnesses are not occupational disease, the
claimant must present proof that he contracted them in the course of his employment.
- OCCUPATIONAL DISEASE one which results from the nature of the employment and by
nature is meant conditions to which all employment of a class are subject and which
produce the disease as a natural incident of a particular occupation
ART 174
COMPULSORY COVERAGE
all employers and their employees not over 60 yrs of age
ART 178
LIMITATIONS OF LIABILITY
intoxication or drunkeness
self - inflicted injuries
notorious negligence
lack of knowledge or awareness of the peril or the seriousness of the existing danger
the unexpectedness, under circumstances, of the accident
SUICIDE compensable
result from insanity resulting from compensable work injury or disease
when it occurs during delirium resulting from compensable disease
PRIMARY BENEFICIARIES:
spouse separated spouse is entitled to benefits
legitimate children
BENEFITS non - transferrable
prescription: 10 years from the time employee lost earning capacity
GSIS Law RA No. 8291
(c) Employer- The national government, its political subdivisions, branches, agencies or
instrumentalities, including government-owned or controlled corporations, and financial
institutions with original charters, the constitutional commissions and the judiciary;
(d) Employee or Member- Any person receiving compensation while in the service of an
employer as defined herein, whether by election or appointment, irrespective of status of
appointment, including barangay and Sanggunian officials;
(f) Dependents- Dependents shall be the following: (a) the legitimate spouse dependent for
support upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child,
including the illegitimate child, who is unmarried, not gainfully employed, not over the age of
majority, or is over the age of majority but incapacitated and incapable of self-support due to a
mental or physical defect acquired prior to age of majority; and (c) the parents dependent
upon the member for support;
(g) Primary beneficiaries- The legal dependent spouse until he/she remarries and the
dependent children;
(h) Secondary beneficiaries- The dependent parents and, subject to the restrictions on
dependent children, the legitimate descendants
SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all
employees receiving compensation who have not reached the compulsory retirement age,
irrespective of employment status, except members of the Armed Forces of the Philippines
and the Philippine National Police, subject to the condition that they must settle first their
financial obligation with the GSIS, and contractuals who have no employer and employee
relationship with the agencies they serve.
Elective Officials will end upon end of term

Excluded AFP, PNP, employees not receiving basic pay, per diem / honorarium, JO is
there is no employer - employee relationship
BENEFITS:
Retirement 15 years of service and 60 years of age
Separation Benefit resigns 15yrs service but below 60 years
Involuntary Separation benefit
Permanent Total and Partial Disability
Temporary Disability
Funeral
Survivorship
Life Insurance

PRESCRIPTIVE PERIOD four years from contingency
JURISDICTION original and exclusive jurisdiction to settle any disputes arising under this
Act and any other laws administered by the GSIS.
APPEALS
GSIS to Court of Appeals under Rule 43
then to Supreme Court under Rule 45
SS Law RA No. 8282
(j) Employment - Any service performed by an employee for his employer except:
"(1) Employment purely casual and not for the purpose of occupation or
business of the employer;
"(2) Service performed on or in connection with an alien vessel by an employee

if he is employed when such vessel is outside the Philippines;
"(3) Service performed in the employ of the Philippine Government or

instrumentality or agency thereof;
"(4) Service performed in the employ of a foreign government or international

organization, or their wholly-owned instrumentality: Provided, however, That this
exemption notwithstanding, any foreign government, international organization
or their wholly-owned instrumentality employing workers in the Philippines or
employing Filipinos outside of the Philippines, may enter into an agreement with
the Philippine Government for the inclusion of such employees in the SSS
except those already covered by their respective civil service retirement
systems: Provided, further, That the terms of such agreement shall conform with
the provisions of this Act on coverage and amount of payment of contributions
and benefits: Provided, finally, That the provisions of this Act shall be
supplementary to any such agreement; and
"(5) Such other services performed by temporary and other employees which
may be excluded by regulation of the Commission. Employees of bona fide
independent contractors shall not be deemed employees of the employer
engaging the service of said contractors.
"(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent legitimate,
legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries
of the member: Provided, That the dependent illegitimate children shall be entitled to fifty
percent (50%) of the share of the legitimate, legitimated or legally adopted children: Provided,
further, That in the absence of the dependent legitimate, legitimated children of the member,
his/her dependent illegitimate children shall be entitled to one hundred percent (100%) of the
benefits. In their absence, the dependent parents who shall be the secondary beneficiaries of
the member. In the absence of all the foregoing, any other person designated by the member
as his/her secondary beneficiary.
"(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the
member.
"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not
over sixty (60) years of age and their employers: Provided, That in the case of domestic
helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a
month: Provided, further, That any benefit already earned by the employees under private
benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced
or otherwise impaired: Provided, further, That private plans which are existing and in force at
the time of compulsory coverage shall be integrated with the plan of the SSS in such a way
where the employers contribution to his private plan is more than that required of him in this
Act, he shall pay to the SSS only the contribution required of him and he shall continue his
contribution to such private plan less his contribution to the SSS so that the employers total
contribution to his benefit plan and to the SSS shall be the same as his contribution to his
private benefit plan before the compulsory coverage: Provided, further, That any changes,
adjustments, modifications, eliminations or improvements in the benefits to be available under
the remaining private plan, which may be necessary to adopt by reason of the reduced
contributions thereto as a result of the integration, shall be subject to agreements between the
employers and employees concerned: Provided, further, That the private benefit plan which
the employer shall continue for his employees shall remain under the employers
management and control unless there is an existing agreement to the contrary: Provided,
finally, That nothing in this Act shall be construed as a limitation on the right of employers and
employees to agree on and adopt benefits which are over and above those provided under
this Act.
"(b) Spouses who devote full time to managing the household and family affairs, unless they
are also engaged in other vocation or employment which is subject to mandatory coverage,
may be covered by the SSS on a voluntary basis.
"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by
the SSS on a voluntary basis.
"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be
compulsory upon such self-employed persons as may be determined by the Commission
under such rules and regulations as it may prescribe, including but not limited to the following:
"1. All self-employed professionals;
"2. Partners and single proprietors of businesses;
"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall
within the definition of the term "employee" in Section 8 (d) of this Act;
"4. Professional athletes, coaches, trainers and jockeys; and
"5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to covered employees
shall also be applicable to the covered self-employed persons.
Limited Portability Law RA No. 7699
Totalization of contribution from both systems (SSS and GSIS) to qualify for death, disability
or retirement benefits
Covered employees not qualify to either or both
totalization of creditable employment service
ADDENDUM TO LABOR RELATIONS
LABOR RELATIONS
LABOR ARBITER
Additional cases under the jurisdiction of Labor Arbiter

1. money claims arising out of ER-EE relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment, including claims for actual, moral, exemplary and other forms of
damages
2. wage distortion disputes in unorganized establishments not voluntarily settled by parties
3. enforcement of compromise agreements where there is a non-compliance by any of the parties
4. other cases that may be provided by law
Award of Damage under the labor arbiter - Moral Damages

1. dismissal was attended by bad faith or fraud
2. constituted an act oppressive to labor
3. was done in a manner contrary to morals, good customs or public policy
VENUE
- Regional Arbitration Branch having jurisdiction over the workplace of the complainant/petitioner
- OFW : Regional Arbitration Branch where complainant resides OR where the principal office of the
respondent/employer is situated AT THE OPTION of the complainant
INSTANCES WHEN NLRC MAY ISSUE INJUNCTION:

1. prohibited or unlawful acts have been threatened and will be committed unless restrained, or have
been committed and will be continued unless restrained
2. substantial and irreparable injury to complainants property will follow
3. as to each item of relief to be granted, created injury will be inflicted upon complainant by the
denial of relief than he will be inflicted upon defendants by the granting of relief
4. complainant has no adequate remedy at law
5. the public officers charged with the duty to protect complainants property are unable or unwilling
to furnish adequate protection
GROUNDS FOR APPEAL to the NLRC

1. if there is prima facie evidence of abuse of discretion on the part of the labor arbiter
2. if the decision or award or order was secured through fraud or coercion, including graft and
corruption
3. if made purely on the questions of law
4. if serious errors in the finding of facts are raised which would cause grave or irreparable damage
or injury to the appellant
EXTRAORDINARY REMEDIES - allows a party to file with the commission a petition assailing not just
the order of the Labor Arbiter but his alleged abuse of discretion. The petition may seek an order to
suspend or stop the execution of the labor arbiters order or resolution. NLRC may require petitioner
to put up a bond.
- filed within 10 calendar days from receipt of the assailed order or resolution
GROUNDS:
1. if there is prima facie evidence of abuse of discretion on the part of the labor arbiter
2. if serious errors in the finding of facts are raised which would cause grave or irreparable damage
or injury to the appellant
3. if a party, by fraud, accident, mistake or excusable negligence, has been prevented from taking an
appeal
4. if made purely on the questions of law
5. if the order or resolution will cause injustice if not rectified
GR: FINDINGS OF FACTS BY NLRC ARE FINAL

Except:
1. the conclusion is a finding grounded on speculations, surmises and conjectures
2. the inferences made are manifestly mistaken, absurd or impossible
3. there is grave abuse of discretion
4. there is misapprehension of facts
5. the court (quais-judicial body) in arriving at its findings went beyond the issues of the case and the
same are contrary to the admissions of the parties or the evidence presented
6. where respondent commission has sustained irregular procedure and through the invocation
summary methods, including rules on appeal , has affirmed an order which tolerates violation of
due process
COMPROMISE AGREEMENTS - if it pertains to labor standards it must be reduced into writing and
signed in the presence of the regional director or his duly authorized representative
Judgment based on compromise agreements - not appealable and immediately executory unless a
motion is filed to set aside the agreement on the ground of fraud, mistake, or duress, in which case an
appeal may be taken against the order denying the motion
SUBSTITUTIONARY DOCTRINE - employees cannot revoke the validly executed collective

bargaining contract with their employer by the simple expedient of changing their bargaining agent.
EQUITY OF THE INCUMBENT - All existing federations and national unions which meet the
qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue
to maintain their existing affiliates regardless of the nature of the industry and the location of the
affiliates
UNION ACCOUNT EXAMINERS - officers of the BLR or in the regional offices assigned to conduct an
audit of the books of accounts of a legitimate labor organization or workers association
LEVY - imposition of a certain amount
requisites for a valid levy:

1. authorized written resolution of a majority of all members at a general membership meeting called
for that purpose
2. secretarys record of the minutes of the meeting that is attested by the president
3. list of all members present and the votes casted
4. the purpose of the special assessment or fees and the recipient of such
CHECK OFF of a special assessment - arrangement authorising the employer to deduct from the
employees pay at prescribed periods the amount due the union for fees or assessment
requisites for a valid check off:

1. written authorization duly signed by the employee
2. specify the amount, purpose and beneficiary of the deduction
check off of agency fees - no required individual authorization
MERGER / ABSORPTION OF LLO - a process where a labor organization absorbs another, resulting
in the cessation of the absorbed labor organisations existence and the continued existence of the
absorbing labor organization
Effect: transfer to the absorbing union all the rights, interests and obligations of the absorbed
organization
CONSOLIDATION / AMALGAMATION of unions - creation or formation of a new union arising from the
unification of 2 or more unions
Effect: the newly created labor organization acquires all the rights, interests and obligations of the
consolidating labor organisations
Where notice is filed: DOLE regional office where registered or BLR in case of federation or national
union
ULP
INTERFERENCE, RESTRAINT OR COERCION
TOTALITY OF CONDUCT DOCTRINE - expressions of opinion by an employer, though innocent in

themselves, frequently are held to be culpable or objectionable because of the circumstances under
which they uttered.
SUCCESSOR EMPLOYER DOCTRINE - the new company will be treated as a continuation or

successor of the one that closed
- when closure or sale of the business enterprise was attended in bad faith or is calculated to defeat
the workers organizational right
RUN-AWAY SHOP - an industrial plant moved by its owners from one location to another to escape
union labor regulations or state laws. Usually, for anti-union purposes.
COMPANY-DOMINATION OF UNION:
1. initiation of the company union idea
2. financial support to the union
3. employer encouragement and assistance
4. supervisory assistance
EXCEPTION TO THE UNION SECURITY CLAUSE:

1. a bona fide member of a religious organization which prohibits its members from joining labor
unions on religious grounds
2. employees already in the service and already members of a union other than majority at the time
union security clause took effect
3. employees excluded by express terms of agreement
JURISDICTIONAL PRECONDITIONS FOR DUTY TO BARGAIN

1. possession of the status of majority representation of the employees representative in accordance
with any of the means of selection or designation provided for by the Labor Code
2. proof of majority representation
3. a demand to bargain
VIOLATIONS OF DUTY TO BARGAIN

1. failure or refusal to meet and convene
2. evading the purposes of bargaining
3. not observing good faith in bargaining
4. grossly violating the economic provisions of the CBA
Surface-bargaining - for the part of ER, no real intention to bargain

Blue Sky Bargaining - for the part of EE, bargaining too much
Kiok Loy vs NLRC - failure of employer to make counter proposal of the CBA amounts to refusal to
bargain. The unions CBA draft should govern the relationship of the parties
DEADLOCK - when the parties in good faith, fail to resolve the issue despite efforts or attempts to do
so and there are no definite plans for further efforts to harmonise their dissimilar positions
BOULWAREISM - take-it-or-leave-it CBA made by the employer

- company dealt with the employees directly rather than going through the union
EFFECTIVITY OF THE CBA

1. NEW CBA - parties may agree on the date
2. CBA is EXTENSION or RENEGOTIATION -
finished within 6 months after the expiration - effectivity retroacts the day after the expiration
not renegotiated within 6 months - retraction and effectivity date of the new CBA will be left to
the parties to agree on
3. AUTOMATIC RENEWAL - during the 60-day freedom period and/or until a new agreement is
reached by the parties
GR: Only contending unions may file for a petition for certification election
EXCEPT: when ER is requested to bargain collectively and there is no existing certified collective
bargaining agreement in the unit
BUT, even if employer filed a certification election, he remains a bystander to the election.
FACTORS AFFECTING LEGALITY OF STRIKE - An illegal strike is:

1. contrary to a specific prohibition of law, such a strike by employees performing governmental
functions
2. violates specific requirements of law
PROCEDURAL REQUIREMENTS:
1. notice of strike
- bargaining deadlock : only the certified bargaining agent
- ULP : certified bargaining agent or LLO
***only unions and LLO can file notice of strike, ununionized employees are not allowed
2. 24 hours prior notice of strike vote
4. strike vote through secret balloting
5. cooling off period
- 15 days for ULP
- 30 days for bargaining deadlock
- no cooling off period for union busting
6. report of strike vote 7 days prior to the actual strike
3. declared for an unlawful purpose,such as inducing the employer to commit an unfair labor practice
against non-union employees
ECONOMIC STRIKE / BARGAINING STRIKE - intended to force wage and other
concessions from the employer, which he is not required by law to grant. It is declared for
the purpose of securing higher wages and for other immediate conditions of labor.
ULP STRIKE - held against the ulp of the employer, usually for the purpose of making him
desist from further committing them (mastro plastics vs nlrb)
- the strike is declared in protest of unfair labor practice which is found to have been
actually committed
- when a strike is declared in protest of wha the union is believed to be ULP committed by
the management and the circumstances warranted such beliefs in good faith, although
found subsequently as not committed - ULP STRIKE IN GOOD FAITH
4. employs unlawful means in the pursuit of its objective, such as a widespread terrorism of non-
strikers
PICKETING STRIKES SHALL NOT:
1. commit any act of violence, coercion or intimidation
2. obstruct the free ingress to or egress from the employers premises for lawful purposes
3. obstruct public thoroughfares
5. declared in violation of an existing injunction

AUTOMATIC INJUNCTION - the prohibition to continue strike after the assumption of
jurisdiction of the President of the Phils or SOLE in national interest cases
6. contrary to an existing agreement, such as no-strike clause or conclusive arbitration clause

- NO STRIKE CLAUSE : applicable only to economic strike
IMPROVED OFFER BALLOTING - to settle the strike, the DOLE shall conduct a secret balloting on
the improved offer of the employer on or before the 30th day of the strike. When majority accepts the
improved offer, the workers will return to work and the employer shall re-admit them upon signing of
the agreement.
REDUCED OFFER BALLOTING - in case of a lockout. it will be the board of directors or trustees or
partners holding controlling interests who will participate in the secret balloting.
GR: Aliens cannot engage directly or indirectly in all forms of trade union activities
Except:
1. alien is working in the country with a valid permit from DOLE
2. aliens are nationals of a country which grants the same or similar rights to Filipino workers
(principle of reciprocity)
Art 289 (288) Visitorial power
cannot be conducted during the 60-day freedom period nor 30 days immediately preceding the date of
union officials.
SECURITY OF TENURE - the right not to be removed from ones job except for a valid reason and
through proper procedure.
REGULAR EMPLOYEES
1. those who are engaged in the to perform activities that are usually necessary or desirable in the
usual business or trade
2. those who have rendered at least one year of service, whether continuous or broken, with respect
to activity in which they are employed
PROJECT EMPLOYEE
1. assigned to carry out a specific project or undertaking
2. the duration or scope were specified at the time the employees engaged in the project
3. employment is coterminous with the project
PROJECT EMPLOYEE to REGULAR EMPLOYEE if these concur:

1. there is continuous rehiring of project employees even after cessation of the project
2. the tasks performed by the alleged project employee are vital, necessary and indispensable to
the usual business or trade of the employer
REGULAR SEASONAL EMPLOYEES

- those who are employed doing the same task for several yeas or for more than one season

Labor Law Notes

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Labor Law Notes

Diunggah oleh

Hak Cipta:

Format Tersedia

LABOR LAW REVIEW MEMORY AID

SOCIAL LEGISLATIONS - laws that provide particular kinds of protection or benefits to

SOURCES OF LABOR LAWS:

CONSTITUTIONAL PROVISIONS ON LABOR PROTECTION

Paler, Jezzene Gail 1

BASIC RIGHTS OF WORKERS UNDER THE CONSTITUTION (Art XIII, Sec 3)

Paler, Jezzene Gail 2

LIMITATIONS OF MANAGEMENT PREROGATIVES

HOW TO DETERMINE EMPLOYER-EMPLOYEE RELATIONS : FOUR-FOLD TEST

Paler, Jezzene Gail 3

POEA - Philippine Overseas Employment Administration

OVERSEAS SEAFARERS - contractual employees

PREMATURE TERMINATION OF CONTRACT - employer is liable to pay the unexpired

NLRC - National Labor Relations Commission

Paler, Jezzene Gail 4

INVALID SIDE AGREEMENT

PROTECTION OF GOVERNMENT EMPLOYEES

Paler, Jezzene Gail 5

LIMITATIONS OF LICENSING( (PRPA)

Paler, Jezzene Gail 6

RA 8042 - addl prohibited practices

Paler, Jezzene Gail 7

Paler, Jezzene Gail 8

Paler, Jezzene Gail 9

READ ART 62-69 PROVISIONS

Paler, Jezzene Gail 10

RA 7277 MAGNA CARTA FOR DISABLED PERSONS

SEC. 4 (L) - MEMORIZE THIS!!

Paler, Jezzene Gail 11

QUALIFIED DISABLED EMPLOYEE

Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be

Paler, Jezzene Gail 12

THE FOLLOWING CONSTITUTE ACTS OF DISCRIMINATION: (SEC 32)

Paler, Jezzene Gail 13

RA 9442 AN ACT AMENDING REPUBLIC ACT NO. 7277

Paler, Jezzene Gail 14

- This shall apply only to employees in ALL establishments EXCEPT:

shall not exceed eight (8) hours a day for 6 days

L. All time during which an employee is required to be on duty or to be at the prescribed

Paler, Jezzene Gail 15

not less than 60 minutes

10% of his regular wage for each hour

REGULAR DAY : 25% for each hour

COMPRESSED WORK WEEK

Paler, Jezzene Gail 17

FLEXIBLE WORK ARRANGEMENTS

Undertime shall NOT be offset by overtime

1. Country is at war or national or local emergency declared by Congress or Chief Executive

does not include the account of facilities provided by employer

Paler, Jezzene Gail 18

1. actual or impending emergencies

GR: cannot compel to work on the rest day

1. Scheduled rest day - 30%

SPECIAL HOLIDAY (non-working : any day proclaimed by the President)

100% of regular wage EXCEPT establishment less than 10

DOUBLE HOLIDAY - 300% if worked

5 days with pay

CANNOT BE UNILATERALLY WITHDRAWN:

85% covered employees

1. R.A. NO. 8187 - PATERNITY LEAVE

Paler, Jezzene Gail 20

not included in the computation of 13th month pay

3. R.A NO. 8972 - PARENTAL LEAVE FOR SOLO PARENT