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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW


Any form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE
7.Right to Participate in Policy &
CHAPTER I Decision-Making Processes affecting
GENERAL PROVISIONS their rights and benefits as may be
provided by law

RELATED LAWS:
ART 1. NAME OF DECREE
0 CIVIL CODE: see Arts. 1700, 1701and 1703
LABOR LEGISLATION - Consists of 1 REVISED PENAL CODE: Art. 289
statutes, regulations and jurisprudence 2 OTHERS: SSS Law, GSIS Law, Agrarian
governing the relations between capital and Reform Law, the 13th month pay law, the
labor, by providing for certain standards of terms
Magna Carta for Public Health Workers, etc.
and conditions of employment or providing a
legal framework within which these terms and RATIONALE :
conditions and the employment relationship may
be negotiated, adjusted and administered. It is 23 The raison d etre of labor laws is the
divided into labor standards and labor relations. POLICE POWER of the State
LABOR STANDARDS - Are the minimum
ART 3. DECLARATION OF BASIC
requirements prescribed by existing laws,
rules and regulations relating to wages, POLICY
hours of work, cost-of-living allowance, and The State shall afford protection to labor,
other monetary and welfare benefits, promote full employment, ensure equal work
including occupational safety, and health opportunities regardless of sex, age or creed,
standards. and regulate the relations between workers and
employers. The State shall assure the right of
LABOR RELATIONS LAW - defines the
workers to self -organization, collective
status, rights, and duties and the institutional
bargaining, security of tenure, and just and
mechanisms that govern the individual and
humane conditions of work.
collective interactions of employers, employees
or their representatives. EMPLOYER - one who employs the
0 The law which
services of others; one for whom employees
seeks to stabilize the relation between employer
work and who pays their wages or salaries.
and employee, to forestall and thresh out their
differences through the encouragement of
EMPLOYEE - one who works for an
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and employer; a person working for salary or wages
arbitration.

ART. 2. DATE OF EFFECTIVITY ART 4. CONSTRUCTION IN FAVOR OF


LABOR
The Labor Code took effect on November 1,
1974 (six months after its promulgation on May CONSTRUCTION IN FAVOR OF
1,1974) LABOR CLAUSE -this is with a view to apply
the Code to the greater number of employees to
SEVEN (7) BASIC RIGHTS OF enable them to avail of the benefits under the
WORKERS AS GUARANTEED BY law (Abella vs. NLRC). The working mans
THE CONSTITUTION (OCESHLP): welfare should be the primordial consideration.

5888 Right to Organize 23 This rule is applicable if there is a doubt as


5889 Right to Conduct Collective to the meaning of the legal or contractual
Bargaining or Negotiation with provision. If the provision is clear and
Management unambiguous, it must be applied in
5890 Right to Engage in Peaceful accordance with its express terms.
Concerted Activities including strike in
accordance with law 24 These laws should be interpreted with a
5891 Right to Enjoy Security of Tenure view to the fact that they are remedial in
5.Right to Work Under Humane Conditions nature, they are enacted to better the lot
6.Right to Receive a Living Wage
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of the


laboring class.
ART 6. APPLICABILITY
5888 Reservation of essential
attributes of sovereign power is read AGRICULTURAL OR FARM WORKER -
into contracts as a postulate of the legal one employed in an agricultural or farm
order. enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
- Courts adopt a liberal approach that the employer, such as cultivation and tillage of
favors the exercise of labor rights. the soil, dairying, growing and harvesting of any
The mandate under Art. 4 is simply to agricultural and horticultural commodities, the
resolve doubt, if any, in favor of labor. If raising of livestock or poultry, and any activities
there is no doubt in implementing and performed by a farmer as an incident to or in
interpreting the law, labor will enjoy no conjunction with such farming operations.
built-in advantage and the law will have
to be applied as it is. 23 There may be in one employer both
agricultural as well as industrial workers.

MANAGEMENT RIGHTS: (CPST) 24 PURPOSE of the provision: intended to


encourage workers to seek employment in
23 Right to conduct business agricultural enterprises instead of migrating
PRight to prescribe rules to already overcrowded urban areas to find
SRight to select employees work in industrial establishments
TRight to transfer or discharge employees
25 The LC applies to all workers, whether
MANAGEMENT PREROGATIVE agricultural or non-agricultural, including
employees in a government corporation
Except as limited by special laws, an incorporated under the Corporation Code.
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including: FARM
HIRING, WORK ASSIGNMENTS, EMPLOYER- TENANCY
WORKING METHODS, TIME PLACE AND FARM RELATIONSHIP
MANNER OF WORK, TOOLS TO BE USED, WORKER
PROCESSES TO BE FOLLOWED, RELATIONSHI
SUPERVISION OF WORKERS, WORKING P
REGULATIONS, TRANSFER OF EMPLOYEES,
- The lease is one - It is the landowner
WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL of labor with the who is the lessor
AND RECALL OF WORKERS. (HW5T2PLSD) agricultural laborer and the tenant the
as the lessor of his lessee of
Thus, so long as management prerogatives services and the agricultural land
are exercised in good faith for farm employer as
the advancement of the the lessee
employers interest and not for - The agricultural - The tenant derives
the purpose of defeating or
circumventing the rights of worker works for his income from the
the farm employer agricultural produce
employees under special law or
and for his labor he or harvest
under valid agreements, it shall receives a salary or
be upheld. wage, regardless of
whether the
ART 5. RULES AND REGULATIONS employer makes a
profit.
5888 The rules and regulations issued by the
DOLE shall become effective 15 days after
announcement of their adoption in
newspapers of general circulation.

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 70
WORKER -any member of the labor force,
whether employed or unemployed

RECRUITMENT AND PLACEMENT - any act


of canvassing, enlisting, contracting,
CHAPTER II transporting, utilizing, hiring or procuring
EMANCIPATION OF TENANTS workers, and includes referrals, contract
(Note: not included as per SC Memo) services, promising or advertising for
employment, locally or abroad, whether for profit
ART 7-11 or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
5888 Share tenancy has been abolished fee employment to two or more persons shall be
placing in its stead leasehold system. deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
5889 Under Art. 8, the land covered by
operation land transfer must be private -The number of persons dealt with is not
agricultural land, tenanted, primarily an essential ingredient of the act of recruitment
devoted to rice and/or corn, and more and placement of workers. The proviso merely
than seven hectares in are. creates the presumption.

Present retention limits: ART 16. PRIVATE RECRUITMENT


23 5 hectares per landowner and 3 hectares
per child provided the child is: ENTITIES AUTHORIZED TO RECRUIT

5888 Is at least 15 years of age; and 0 Public employment offices


5889 Actually tilling the land or directly 1 Private recruitment entities; private
employment agencies
managing the farm
2 Shipping or manning agents or
EXCEPTIONS: representatives
23 those covered by homestead patents 3 The POEA
24 those covered by PD 27 4 Construction contractors if authorized by the
DOLE and the Construction Industry
EMANCIPATION PATENT - is the title issued Authority
to the tenant upon compliance with all the 5 Members of the diplomatic corps (but hirings
must also go thru POEA)
requirements of the government. It represents
6 Other persons or entities as may be
the full emancipation pf the tenant from the
bondage of the soil. authorized by the DOLE secretary

PROHIBITION AGAINST ALIENATION DOCUMENTATION OF WORKERS:


IS INTENDED TO: 5888 Contract Processing workers hired
thru the POEA shall be issued the individual
23 Preserve the landholding in the hands of the employment contract and such other
owner-tiller and his heirs; documents as may be necessary for travel
24 minimize land speculation; and 5889 Passport Documentation
25 prevent a return to the regime of land 5890 Visa Arrangement
ownership by a few.
ART 17. (POEA)
BOOK ONE
PRE-EMPLOYMENT 5888 POEA has taken over the functions of
the
OEDB
TITLE I
RECRUITMENT AND PLACEMENT OF ADJUDICATORY FUNCTIONS OF THE
WORKERS POEA :

CHAPTER I a. All cases which are administrative in


GENERAL PROVISIONS character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
ART 13. DEFINITIONS employment agencies or entities; and
5888 Disciplinary action cases and other
special cases which are administrative in
character,
involving employers, principals, contracting valid any agreement to receive less
partners and Filipino Migrant Workers compensation than what the worker is
entitled to recover.
JURISDICTION TRANSFERRED TO (MR Yard Crew Union vs. PNR)
THE LABOR ARBITERS OF THE NLRC :
ART 18. BAN ON DIRECT-HIRING
5888 claims arising out of an employer-
employee relationship or by virtue of any law Direct hiring of Filipino workers by a
or contract involving Filipino workers for foreign employer is not allowed.
overseas deployment including claims for
actual, moral, exemplary and other forms of EXCEPTIONS :
damages.
the members of the diplomatic
Venue Money claims or claims for damages corps; international organizations;
should be filed before the Regional Arbitration such other employers as may be allowed by the
branch of the NLRC where the complainant Department of Labor and employment
resides or where the principal office of the 5888 name hirees individual workers who
respondent/employer is situated, at the option of are able to secure contracts for overseas
the complainant. employment on their own efforts and
representations without the assistance or
Compromise Agreement - Consistent with participation or any agency
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows RATIONALE OF THE PROHIBITION
resolution by compromise of cases filed with the 0 Filipino workers hired directly by a
NLRC. foreign employer, without government
intervention may not be assured of the
PREMATURE TERMINATION OF best possible terms and conditions of
CONTRACT - Where the workers employment work. The foreign employer must also be
contract is terminated long before its agreed protected and may chance upon a Filipino
termination date, and the termination is not worker who do not possess sufficient
shown to be based on lawful or valid grounds, knowledge for which he is employed.
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired MINIMUM EMPLOYMENT
portion of their employment contract. (Tierra CONDITIONS OF OVERSEAS
Intl Construction Corp. vs. NLRC).
EMPLOYMENT:
HOWEVER, under R.A. 8042, if the illegal 0.0 Guaranteed wages for regular
dismissal took place on or after July 15, 1995, working hours and overtime pay for
the illegally dismissed overseas worker shall be services rendered beyond regular
entitled to the full reimbursement of his working hours in accordance with
placement fee with interest at the rate of 12% the standards established by the
per annum plus salary for the unexpired Administration
portion of his employment contract or for 3 0 Free Transportation from point of hire to site
mos. for every year of the unexpired term of employment and return;
whichever is LESS. 1 Free emergency medical and dental
treatment and facilities;
2 Just causes for termination of the contract or
5888 Claims for death and burial benefits of the services of the workers;
involving seamen OCWs which the POEA 3 Workmens compensation benefits and war
has jurisdiction are not the same as the hazard protection;
claims against the State Insurance Fund 4 Repatriation of workers remains and
of the LC. properties in case of death to the point of
hire, or if this is not possible the possible
5889 The basis for the award of backwages is disposition thereof
the parties employment contract, stipulating the 5 Assistance on remittance of workers
wages and benefits. salaries, allowances or allotments to his
beneficiaries; and
5890 The fact that the employee has 6 Free and adequate board and lodging
signed a satisfaction receipt does not facilities or compensatory food allowance at
result in waiver; the law does not prevailing cost of living standards at the
consider as jobsite.
program and their relatives within the 4th
ART 22. MANDATORY REMITTANCE degree of consanguinity or affinity; or
5888 Those whose license has been
OF FOREIGN EXCHANGE EARNINGS
previously canceled or revoked.
MANDATORY REMITTANCE
REQUIREMENTS: CHAPTER II
5888 Seamen or mariners: 80% of the basic REGULATIONS OF RECRUITMENT
salary; AND PLACEMENT ACTIVITIES
5889 Workers for Filipino Contractors and
Construction Companies: 70% of the basic ART 29. NON-TRANSFERABILITY OF
salary;
5890 Doctors, engineers, teachers, nurses, LICENSE OR AUTHORITY
and other professionals whose employment
0 No license or authority shall be used
contract provide for lodging facilities: same
directly or indirectly by any person other
as #2
than the one in whose favor it was issued
5891 All other professionals without board
or at any place other than that stated in the
and lodging: 50% of the basic salary;
license or authority, nor may such license or
5892 Domestic and other service of workers;
authority be transferred, conveyed or
50% of the basic salary. assigned to any other person or entity.

1 Licensees or holders of authority or their


ART 25. PRIVATE SECTOR duly authorized representatives may as a
PARTICIPATION IN THE RECRUITMENT rule, undertake recruitment and placement
AND PLACEMENT OF WORKERS activities only at their authorized official
addresses.
QUALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS 2 Change of ownership or relationship of
EMPLOYMENT PROGRAM: single proprietorship licensed to engage
in overseas employment shall cause the
5888 Filipino citizens, partnerships or automatic revocation of the license.
corporations at least 75% of the authorized
and voting capital stock of which is owned 3 All overseas landbased workers shall be
and controlled by Filipino citizens; provided both life and personal accident
5889 Minimum capitalization of 1M in case of insurance.
single proprietorship or partnership and a
minimum of 1M paid-up capital for GROUNDS FOR DISCIPLINARY
corporations; ACTION (Under the MWA of 1995) ;
5890 Those not otherwise disqualified by law
or these guidelines to engage in the 0 Commission of a felony punishable by the
recruitment and placement of workers for laws of the Philippines or by the host
overseas employment country;
1 Drug addiction or possession or trafficking of
DISQUALIFICATIONS: prohibited drugs;
2 Desertion or abandonment;
23 Travel agencies and sales agencies of 3 Drunkenness, especially where the laws of
airline companies; the of the host country prohibit the same;
24 Officers or members of the board of any 4 Gambling, especially where the laws of the
corporation or members in a partnership host country prohibit the same;
engaged in the business of a travel agency; 5 Initiating or joining a strike or work stoppage
25 Corporations and partnerships, when any of where the laws of the host country prohibit
its officers, members of the board or strikes or similar actions;
partners, is also an officer, member of the 6 Creating trouble at the worksite or in the
board or partner of a corporation engaged in vessel;
the business of a travel agency. 7 Embezzlement of company funds or of
26 Persons, partnerships, or corporations which money an properties of a fellow worker
have derogatory records; entrusted for delivery to kins or relatives in
27 Persons employed in the Department of the Philippines;
Labor or in other government agencies 8 Theft or robbery;
directly involved in overseas employment 9 Prostitution;
10 Vandalism or destroying company property;
0 Gunrunning or possession of deadly MISCELLANEOUS PROVISIONS
weapons;
1 Unjust refusal to depart for the worksite after ART 38. ILLEGAL RECRUITMENT (as
all employment and travel documents have
per RA 8042 otherwise known as the
been duly approved by the appropriate
government agency; and Migrant Workers Act of 1995)
2 Violation of the laws and sacred practices of
ILLEGAL RECRUITMENT - Any act of
the host country and unjustified breach of
canvassing, enlisting, contracting,
government approved employment contract transporting, utilizing, hiring or procuring
by a worker. workers and includes referring contract
services, promising or advertising for
ART 31. BONDS employment abroad, whether for profit or
not when undertaken by a non-licensee
23 Cash bond filed by applicants for license
or non-holder of authority.
or authority is not subject to garnishment PROVIDED that any such non -licensee
by judgment creditor of agency or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
ART 32. FEES TO BE PAID BY to two or more persons shall be deemed so
WORKERS engaged. It shall likewise include the
commission of prohibited acts whether
23 Suspension or cancellation of licenses may committed by a non-licensee or non-holder of
include award of damages to repair the authority or a licensee or holder of authority.
injury caused to its victims.
PROHIBITED PRACTICES:
ART 34. PROHIBITED PRACTICES (CFGIIEOFSBWF)
23 A supplementary contract beneficial to to charge or accept amount beyond amount
worker not violative of protection allowed by law
afforded by the State to workers. to furnish or publish false notice or information in
relation to Recruitment and Placement
ART 35. SUSPENSION AND/OR to give any false notice and information or
CANCELLATION OF LICENSE OR commit any act of misrepresentation to
AUTHORITY secure license or authority
Induce or attempt to induce workers to quit
NON-LICENSEE OR NON-HOLDER OF employment to offer him another except
AUTHORITY - any person, corporation or entity if the transfer is to liberate a worker from
which has not been issued a valid license or oppressive terms and conditions of
authority to engage in recruitment and employment (NOTE: it is not necessary
placement by the Secretary of Labor, or whose that worker was actually induced or did
license or authority has been suspended, quit employment)
revoked, or cancelled by the POEA and the to influence or attempt to influence any person
Secretary. or entity not to employ any worker who
has not applied for employment in his
agency
to engage in the recruitment or placement of
workers in jobs harmful to public health
or morality or to the dignity of the Phil.
Obstruct or attempt to obstruct inspection by
Secretary
Fail to file reports
Substitute or alter employment contracts
BBecome officer or Board member of
corporation engaged in travel agency
WWithhold or deny travel documents before the
departure for monetary or financial
consideration other than those
authorized by the Code.
FFailure to actually deploy without valid reason
as determined by the DOLE
CHAPTER III
Failure to reimburse expenses incurred by the TITLE II
worker in connection with his EMPLOYMENT OF NON-RESIDENT
documentation and processing for
ALIENS
purposes of deployment, in cases where
the deployment does not actually take
ART 40. EMPLOYMENT PERMIT OF
place without the workers fault
NON-RESIDENT ALIENS
THE QUALIFYING CIRCUMSTANCES -Foreigners or domestic and foreign employers
THAT WOULD MAKE ILLEGAL desiring to employ aliens must secure
employment permit from the DOLE upon
RECRUITMENT AS A CRIME
determination of the non-availability of a person
INVOLVING ECONOMIC SABOTAGE in the Philippines who is competent, able and
ARE : willing at the time of the application to perform
the services for which the alien is desired.
When committed by a SYNDICATE i.e., if it is
carried out by a group of three (3) or more Foreigners may not be employed in certain
persons conspiring and confederating with
nationalized business.
one another; or
When committed in a LARGE SCALE i.e., if it is a non-resident alien worker and the employer
committed against three (3) or more shall bind themselves to train at least 2 Filipino
persons understudies.
VENUE OF ACTIONS ON ILLEGAL PROHIBITION AGAINST
RECRUITMENT: EMPLOYMENT OF ALIENS
RTC of the province or city where the offense Section 2-A of the Anti-Dummy Law prohibits
was committed; or the employment of aliens in establishment or
where the offended party resides at the time of entities which have under their name or control a
the commission of the offense right, franchise, privilege, property or business
at the option of the complainant the exercise or enjoyment of which property or
business the exercise or enjoyment of which is
These circumstances only qualify. They do not expressly reserved by the Constitution or the
define the offense themselves laws to citizens of the Philippines or to
corporations or associations at least 60% of the
Recruitment and placement activities of capital of which is owned by such citizens.
agents or representatives appointed by a
licensee, whose appointments were not EXCEPTIONS TO THE
previously authorized by the POEA shall
PROHIBITION:
likewise constitute illegal recruitment.
where the Secretary of Justice specifically
ART. 38 ( c ) declared unconstitutional since
authorizes the employment of technical
only a judge may issue search
personnel; or
warrant/ warrant of arrest. The Sec.
where the aliens are elected members of the
Of Labor may only recommend not
board of directors or governing body of
issue. However, Closure of
establishments of illegal recruiters corporations or association in proportion to
may still be ordered by Secretary of their allowable participation in the capital of
Labor, same being essentially such entities.
administrative and regulatory in
nature.(Salazar vs.
Achacoso and Marquez)

PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.

BOOK TWO
HUMAN RESOURCES binds himself to train the apprentice and the
DEVELOPMENT apprentice in turn accepts the terms of training

ON-THE-JOB TRAINING the practical


TITLE I work experience through actual participation
NATIONAL MANPOWER in productive activities given to or acquired by
DEVELOPMENT PROGRAM an apprentice

HIGHLY TECHNICAL INDUSTRIES trade,


CHAPTER I business, enterprise, industry or other activity,
NATIONAL POLICIES AND which is engaged in the application of
ADMINISTRATIVE MACHINERY FOR advanced technology
THEIR IMPLELENTATION
ART 59. QUALIFICATIONS OF
ART 45. DEFINITIONS APPRENTICES

MANPOWER - that portion of the nations Qualifications of an Apprentice


population which has actual or potential
capability to contribute directly to the production at least 15 years of age; provided those who are
of goods and services. at least 15 years of age but less than
eighteen may be eligible for apprenticeship
ENTREPRENEURSHIP - training for self- only in non-hazardous occupations and the
employment or assisting individual or small apprenticeship agreement shall be signed in
industries within the purview of this the LC. his behalf by the parent or guardian or
authorized representative of DOLE.
TITLE II vocational aptitude/ capacity for appropriate test
TRAINING AND EMPLOYMENT OF ability to comprehend and follow oral and written
SPECIAL WORKERS instructions

ART 60. EMPLOYMENT OF


CHAPTER I APPRENTICES
APPRENTICES
Only employers in highly technical industries
Types of Special Workers: may hire apprentices and only in
apprenticeable occupations as
Apprentice determined by the Sec. Of Labor
Learners
Handicapped Requisites for a VALID
APPRENTICESHIP
ART 58. DEFINITION OF TERMS QUALIFICATIONS OF THE APPRENTICE
APPRENTICESHIP AGREEMENT DULY
APPRENTICESHIP - practical training on the EXECUTED AND SIGNED PROVIDING FOR
job supplemented by related theoretical COMPENSATION NOT LESS THAN 75% OF
instruction THE APPLICABLE MINIMUM WAGE, EXCEPT
ON-THE-JOB TRAINING (OJT)
APPRENTICE - worker who is covered by a 3.APPRENTICESHIP PROGRAM DULY
written apprenticeship agreement with an APPROVED BY DOLE
individual employer or any of the entities PERIOD OF APPRENTICESHIP SHALL NOT
recognized under this chapter EXCEED 6 MONTHS.
APPRENTICEABLE OCCUPATION - any
trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction
ART 71. DEDUCTIBILITY OF TRAINING
COSTS

APPRENTICESHIP AGREEMENT - an
employment contract wherein the employer
Requisites for tax deductions in case learner as regular
employers have apprenticeship employee if he
programs: desires upon
completion of
Program duly recognized by the Department of learnership
Labor 4. In case of 4. Learner is
Deduction shall not exceed 10% of direct
labor wage pretermination of considered as a
Pay his apprentices the minimum wage the apprenticeship regular employee
agreement, the in case of
worker is not pretermination of
ART 72. APPRENTICES WITHOUT
considered as a contract after 2
COMPENSATION regular employee mos. of training
and the dismissal
Apprentices who may be hired without is without fault of
compensation: learner
5. Highly technical 5. Semi-skilled /
1.those whose training on the job
is required by the school; industries and only industrial
2.Training Program Curriculum; in industrial occupations
3.Requisite for Graduation; or occupation
4.A requisite for Board Examination
Learners in piecework/ incentive - rate jobs
are to be paid in full for the work done.
CHAPTER II
LEARNERS
CHAPTER III
ART 73. LEARNERS DEFINED HANDICAPPED WORKERS
LEARNERS - persons hired as trainees in ART 78. DEFINITION
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be HANDICAPPED WORKERS - Are those
learned thru practical training on the job in a whose earning capacity is impaired by age or
relatively short period of time which shall not physical or mental deficiency or injury.
exceed 3 mos.
Subject to the provisions of the Code,
APPRENTICESHIP LEARNERSHIP handicapped workers may be hired as
regular workers, apprentices or learners
1. Practical training on 1. Hiring of persons if their handicap is not such as to
effectively impede the performance of job
the job as trainees in operations in the particular occupations for
supplemented by semi-skilled and which they were hired.
related theoretical other industrial
instruction. occupations which qualified disabled employee shall be subject to
are non- the same terms and conditions of
apprenticeable and employment and the same compensation,
which may be privileges, benefits, fringe benefits,
learned thru incentives or allowances as a qualified able-
practical training bodied person. Even a handicapped worker
on the job in a can acquire the status of a regular
relatively short employee.
period of time.
2. Not less than 3 2. Practical training Duration of employment - no minimum, no
maximum. Dependent on agreement but is
months practical on the job not to necessary that there is a specific duration
training on the job exceed 3 mos.
but not more than 6 BOOK THREE
months CONDITIONS OF EMPLOYMENT
3. No Commitment to 3. With Commitment

hire to employ the


TITLE I MANAGERIAL EMPLOYEES - Refer to those
WORKING CONDITIONS AND REST whose primary duty consists of the
management of the establishment in which
PERIODS
they are employed or of a department or
subdivision thereof and to other members
CHAPTER I of the managerial staff
HOURS OF WORK
Note: Definition applies only to the 8-
ART 82. COVERAGE hour Labor law

ELEMENTS OF EMPLOYER- FIELD PERSONNEL - Refer to non-


EMPLOYEE RELATIONSHIP: agricultural employees who regularly
perform their duties away from the principal
selection and engagement of the place of business or branch office of the
employee employer and whose actual hours of work
the payment of wages in the field cannot be determined with
the power of dismissal reasonable certainty.
the employers power to control the
WORKERS PAID BY RESULTS - Method of
employee (with respect to the
computing compensation based on the
means and methods by which the
work is to be accomplished) work completed and not on the time spent
in working.
The last element as mentioned above is what is
known as the CONTROL TEST - whether PIECE-RATE METHOD - Where pay is
the employer controls or has reserved the dependent on unit of product finished, preferred
right to control the employee not only as to where the work process is repetitive and the out
the result of the work to be done but also as put is standardized and easily countable.
to the means and methods by which the DOMESTIC HELPERS/ PERSONS
same is to be accomplished. This last RENDERING PERSONAL SERVICES - Perform
element is the most important index of the services in the employers home which are
existence of the relationship. usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
EMPLOYEE - A natural person who is hired, to the personal comfort, convenience or safety
directly or indirectly, by a natural or juridical of the employer, as well as the members of the
person to perform activities related to the employers household.
business of the hirer who, directly or
through an agent, supervises or controls The existence of employment relationship is
the work performance and pays the salary determined by law and not by contract.
or wage of the hire.
Whether or not an employer-employee
relationship exists between the parties is a
Employees Exempt from the Benefits question of fact. The findings of the
of E-E Relationship NLRC are accorded not only respect but
finality if supported by substantial
Government Employees
Managerial Employees evidence.
Field Personnel MANAGEMENT PREROGATIVE - except as
Family Members dependent on the otherwise limited by special laws, an employer is
employer for support free to regulate, according to his own discretion
Domestic Helpers
and judgment, all aspects of employment,
Persons on the Personal Service of another
including hiring, work assignments, working
Workers Paid by Result
methods, time, place, and manner of work, tools
to be used, processes to be followed,
GOVERNMENT EMPLOYEES - Refers only
supervision of workers, working regulations,
to employees of government agencies,
transfer of employees, work supervision, lay-off
instrumentalities or political subdivisions
of workers and discipline, dismissal and recall of
and of government corporations that are
workers.
not incorporated under the Corporation
Code, meaning those which have original Management prerogative recognizes the right
charters. of the employer to advance its interest to
prescribe standards of work and impose
reasonable quotas or work
assignments, and failure on the part of the work is with the knowledge of his employer
employees to meet the requirement, impose or immediate supervisor
in good faith, constitutes a just cause for his The time during which an employee is inactive
dismissal. by reason of interruptions in his work
beyond his control shall be considered time
New owner/management group has no either if the imminence of the resumption of
obligation to re-employ workers who work requires the employees presence at
freely and voluntarily accepted their the place of work or if the interval is too brief
separation pay and other benefits. A to be utilized effectively and gainfully in the
change of ownership in a business concern employees own interest.
is not proscribed by law.
Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
ART 83. NORMAL HOURS OF WORK
ENGAGED TO WAIT - when waiting is an
Shall not exceed 8 hours in a regular working integral part of the job, it is compensable
day
WAITING TO BE ENGAGED - idle time is not
PURPOSE working time, not compensable
to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts
WHEN TRAVEL TIME COMPENSABLE:
REGULAR WORKING DAYS: The regular
working days of covered employees shall not be
more than five days in a workweek. The Travel from home to work- refers to ordinary
workweek may begin at any hour and on any work travel but where the worker is made to
day, including Saturday or Sunday, designated work on an emergency call and travel is
by the employer. necessary in proceeding to the workplace,
the time spent on travel is compensable
Travel that is all in a days work- time spent by
ART 84. HOURS WORKED an employee in travel as part of his principal
SHALL INCLUDE: activity, such as travel from jobsite to jobsite
during the workday, must be counted as
All time during which an employee is required to hours worked.
be on duty or to be at a prescribed Travel away from home- travel that keeps an
workplace; and employee away from home overnight.
All time during which an employee is suffered or
Work hours of seamen are governed by
permitted to work the same rules as land based employees.
Thus, they must show sufficient proof that
PRINCIPLES IN DETERMINING said work is actually performed.
HOURS WORKED: Rest Periods of short duration during
working hours shall be considered as
All hours are hours worked which the employee
is required to give to his employer, hours worked.
regardless of whether or not such hour are Preliminary activities compensable when
spent in productive labor or involve physical
controlled or required by employer and are
or mental exertion;
pursued necessarily and primarily for the
An employee need not leave the premises of the
workplace in order that his rest period shall employers benefit,
not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
ART 85. MEAL PERIODS
workplace;
If the work performed was necessary, or it
benefited the employer, or the employee MEAL PERIODS
could not abandon his work at the end of his
Should not be less than sixty (60) minutes, and
normal working hours because he had no
is time-off/non-compensable
replacement, all time spent for such work
Under specified cases, may be less than sixty
shall be considered as hours worked if the
(60) minutes, but should not be less
than twenty (20) minutes an must be with full ART 87. OVERTIME WORK
pay.
If less than twenty(20) minutes, it becomes only O VERTIME PAY- Additional compensation
a rest period and is thus considered as work for work performed beyond eight (8) hours
time within the workers 24-hour workday.
NOTE: Employee must be completely 30% of 130% if on a special holiday/rest day
relieved from duty. Otherwise, it is 25% of regular wage if done on a regular
compensable as hours worked. workday
30% of 150% if on special holiday AND rest day
Mealtime is not compensable EXCEPT in 30% of 200% if on a regular holiday
cases where the lunch period or meal time is
predominantly spent for the employers RATIONALE
benefit or where it is less than 60 employee is given OT pay because he is made
minutes. to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
Employees may request that their meal period
or voluntarily agreed hours of labor he is
be shortened so that they can leave work
supposed to do.
earlier that the previously established
schedule. As a rule, cannot be waived, as it is intended to
benefit laborers and employees. But when
REQUISITES : the waiver is made in consideration of
benefits and privileges which may even
The employees voluntarily agree in writing to a exceed the overtime pay, the waiver may be
shortened meal period and are willing to permitted.
waive the overtime pay for such shortened
meal period; NOTE: OT pay will not preclude payment of
No diminution whatsoever in the salary and night shift differential pay.
other fringe benefits of the employees
existing before the effectivity of the Meal periods during overtime work is not
shortened meal period; given to workers performing overtime for
Work does not involve strenuous physical the reason that OT work is usually for a
exertion and they are provided with short period ranging from one to three hours
adequate coffee breaks; and to deduct from the same one full hour
The value of benefits is equal with the as meal period would reduce to nothing the
compensation due them for the shortened employees OT work.
meal period
OT pay will become due and demandable after WORK DAY - the 24-hour period which
the new time schedule; and commences from the time the employee
The arrangement is of temporary duration. regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
ART 86. NIGHT SHIFT DIFFERENTIAL today up to 8 am tom.

NIGHT SHIFT DIFFERENTIAL -Additional The minimum normal working hours fixed by the
compensation of not less than ten percent Act need not be continuous to constitute
(10%) of an employees regular wage for every the legal working day
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the Express approval by a superior is not a
workers regular shift. prerequisite to make overtime work
compensable. HOWEVER, written authority
If work done between 10 PM and 6 AM is after office hours during rest days and
overtime work, then the 10% night shift holidays are required for entitlement to
differential should be based on his compensation.
overtime rate.
The right to OT pay cannot be waived.
RATIONALE Such waiver is contrary to law and
- it serves as an inducement of employment public policy.

EXCEPTIONS:
When the waiver stipulates higher payment or
rate of OT pay; or 1. Country is at war or any other national/local
Where the contract of employment requires emergency has been
work for more than eight hours of work at declared by the Chief
specified wage per day providing for a fixed Executive/Congress
hourly rate or that the daily wages include 2. Necessary to prevent loss of life/property/ in
overtime pay. case of actual/impending emergency in
the locality
COMPRESSED WORKWEEK -allowable 3. There is urgent work to be performed on
under the following conditions: machines, installations, or equipment in
It is voluntary on the part of the worker order to avoid serious loss/damage to
There will be no diminution of the weekly or the employer or some other causes of
monthly take-home pay and fringe benefits similar nature
of the employees; 4. Work is necessary to prevent loss/damage to
The value of the benefits that will accrue to the perishable goods; and
employees under the proposed schedule is 5. where the completion or continuation of the
more than or at least commensurate with the work started before the eighth hour is
one-hour OT pay that is due them during necessary to prevent serious obstruction
weekdays based on the employees or prejudice to the business or
quantification operations of the employer.
The one-hour OT pay will become due and 6. when it is necessary to avail of favorable
payable if they are made or permitted to weather or environmental conditions
work on a day not scheduled for work on the where performance or quality of work is
compressed work week dependent thereon
The work does not involve strenuous physical
exertion and employees must have adequate ART 90. REGULAR WAGE
rest periods
5. The arrangement is of temporary duration. include the cash wage only, without deduction
on account of facilities provided by the
ART 88. UNDERTIME NOT OFFSET BY employer
OVERTIME CHAPTER II
WEEKLY REST PERIOD
Undertime work on any particular day shall
not be offset by overtime work on any ART 91. RIGHT TO A WEEKLY REST
other day. Permission given to the
DAY
employee to go on leave on some other
day of the week shall not exempt the Employees should be provided a rest period of
employer from paying the additional not less than twenty four (24)
compensation. consecutive hours after every six (6)
RATIONALE consecutive normal work days.
An employees regular pay rate is lower than the Employer shall schedule the weekly rest day of
overtime rate. Offsetting the undertime hours his employees subject to collective
against the overtime hours would result in bargaining agreement. However, the
undue deprivation of the employees extra employer shall respect the preference of
pay for overtime work. employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employees choice
for at least two (2) days a month
ART 92. WHEN EMPLOYER MAY
ART 89. EMERGENCY OVERTIME
REQUIRE WORK ON A REST DAY
WORK
WHEN EMPLOYEE MAY BE REQUIRED
WHEN WORKER MAY BE REQUIRED
TO RENDER WORK ON A REST
TO RENDER OT:
(WNUNCN) DAY:
In case of actual or impending emergencies ART 94. RIGHT TO HOLIDAY PAY
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other HOLIDAY PAY - A days pay given by law to
disaster or calamity, to prevent loss of life or an employee even if he does not work on a
property or in cases of force majeure or regular holiday. It is limited to the ten (10)
imminent danger to public safety regular holidays listed by law.
urgent work to be performed on the machinery, employee should not have been absent without
equipment or installation to avoid serious pay on the working day preceding the regular
loss which the employer would otherwise holiday
suffer
abnormal pressure of work due to special Art. 94(b) refers to regular holidays, special
circumstances, where the employer cannot holidays are taken care of under Art. 93.
ordinarily be expected to resort to other
measures PREMIUM PAY - Additional compensation for
prevent serious loss of perishable goods work performed on a scheduled rest day or
nature of work requires continuous operation for holiday.
seven days a week
work is necessary to avail of favorable weather REGULAR HOLIDAYS:
or environmental conditions where
performance or quality of work depends 1. New Years Day -January 1
upon them 2. Maundy Thursday -Movable date
3. Good Friday- Movable date
ART 93. COMPENSATION FOR REST Araw ng Kagitingan -April 9
DAY, SUNDAY OR HOLIDAY WORK Labor Day -May 1
Independence Day -June 12
this article does not prohibit a stipulation in the National Heroes Day`-Last Sunday of August
CBA for higher benefits Bonifacio Day-November 30
Christmas Day-December 25
SPECIAL HOLIDAYS Rizal Day-December 30

All Saints Day -November 1 Note: Compensable whether worked or


Last Day of the Year-December 31 unworked.
And all other days declared by law or ordinances
to be a special holiday or non-working day DOUBLE HOLIDAY PAY
NOTE: worked = regular wage plus 30% 200% of the basic wage provided, he works
premium pay on that day and was present or on leave
with pay on the preceding workday. If on
not worked = none leave without pay, rate still applies if leave is
authorized.
ADDITIONAL COMPENSATION FOR 400% if he worked as per DOLE Memo if there
WORK ON A REST DAY, SUNDAY OR are 2 regular holidays in one day eg. April 9
HOLIDAY WORK: and Good Friday. Provided the employee
worked on the day prior to the regular
Work on a scheduled rest day - 30% of regular holiday or on leave with pay or on
wage authorized absence.
No regular workdays and rest days -30% of If there are two succeeding holidays eg.,
regular wage for work on Sundays & Maundy Thursday and Good Friday, the
Holidays employee must be present the day before
Work on Special Holidays -30% of regular wage the scheduled regular holiday to be entitled
Holiday Work falls on Scheduled Rest Day - to compensation to both otherwise, he must
50% of regular wage work on the first holiday to be entitled to
CHAPTER III holiday pay on the second regular holiday.
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
REGULAR SPECIAL
HOLIDAY HOLIDAY

- compensable even - not compensable if


if unworked subject unworked considered integrated in their wages on
to certain conditions the basis of the average monthly share of
- limited to the 10 - not exclusive since each employee for the past 12 months
immediately preceding the abolition.
enumerated by the law may provide for
LC other special
holidays TITLE II
- rate is twice the - rate is 130% if WAGES
regular rate if worked
worked CHAPTER I
PRELIMINARY MATTERS

ART 95. RIGHT TO SERVICE ART 97. DEFINITION


INCENTIVE LEAVE
WAGE - the remuneration or earnings,
SERVICE INCENTIVE LEAVE (SIL) - Five (5) however designated, capable of being
days leave with pay for every employee expressed in terms of money, whether fixed
who has rendered at least one (1) year of or ascertained on a time, task, piece, or
service. commission basis or other method or
calculating the same, which is payable by
BUT DOES NOT APPLY TO THOSE an employer to an employee under a
WHO ARE: written or unwritten contract of employment
for work done or to be done or for services
already enjoying the said benefits; or rendered or to be rendered and includes
enjoying vacation leave with pay for at least 5 the fair and reasonable value of board,
days lodging, or other facilities customarily
those employed in establishments regularly furnished by the employer to the employee.
employing less than 10 employees
those employed in establishments exempted FAIR DAYS WAGE FOR A FAIR DAYS
from granting this benefit by the Secretary LABOR - if there is no work performed by
of Labor. the employee, there can be no wage or
pay unless the laborer was able, willing,
ONE (1) YEAR OF SERVICE.- service within and ready to work but was prevented by
12 months, whether continuous or broken, management or was illegally locked out,
reckoned from the date the employee started suspended or dismissed.
working including authorized absences and paid
regular holidays unless the number of working WAGE SALARY
day in the establishment as a matter of practice - compensation for - denotes higher
or policy, or provided in the employment contract
is less than 12 mos. manual labor degree of
employment
SIL is commutable i.e., convertible to cash- the - Not subject to - subject to execution
cash equivalent is aimed primarily at
encouraging workers to work continuously execution (Gaa vs. CA)
and with dedication to the company.
FACILITIES shall include all articles or
ART 96. SERVICE CHARGES services for the benefit of the employee or his
family but shall not include tools of the trade or
TO BE DISTRIBUTED TWICE A articles or services primarily for the benefit of the
MONTH AND AT THE RATE OF: employer or necessary to the conduct of the
employers business.
85% for all covered employees to be equally
distributed among them
15% for management (may answer for losses
and breakages or distributed to FACILITIES SUPPLEMENTS
management)

If collection of service charges is abolished, the


share of covered employees shall be
- Are items of - Constitute extra 3. It is not due to an error in the construction
/application of a doubtful or difficult question
expense necessary remuneration or of law.
for the laborers and special privileges or
his familys benefits given to or But even in cases of error, it should be shown
existence and received by the that the correction is being done soon after
subsistence laborers over and the discovery of the error.
above their ordinary
earnings wages BONUS - A supplement or employment
- part of the wage - independent of the benefit given under certain conditions, such
as success of the business or greater
wage production or output. As a rule, it is an
- deductible from the - not wage amount granted voluntarily to an employee
for his industry and loyalty which
wage deductible contributed to the success and realization
of profits of the employers business.
ART. 98. APPLICATION OF TITLE Therefore, from a legal point of view, it is
not a demandable and enforceable
This Title shall not apply to the obligation. Unless, it was promised to be
following: given without any conditions imposed for its
payment, as such, it is deemed part of the
household or domestic helpers wage.
homeworkers engaged in needle-work
workers employed in any establishment duly 13 TH MONTH PAY (OR ITS EQUIVALENT)
registered with the National Cottage Industry -additional income based on wage required by
P.D. 851 which is equivalent to 1/12 of the total
Workers in any duly registered cooperatives basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than Dec.
24
CHAPTER II
MINIMUM WAGE RATES COVERAGE:
All rank-and-file employees regardless of their
ART 100. PROHIBITION AGAINST designation or employment status and
ELIMINATION OR DIMUNITION OF irrespective of the method by which their wages
BENEFITS are paid, are entitled to this benefit, provided,
that they have worked for at least one (1)
LEGAL REQTS. BEFORE FACILITIES month during the calendar year.
CAN BE DEDUCTED FROM THE FORMS:
EMPLOYEES WAGES:
Christmas bonus
Proof that such facilities are customarily midyear bonus
furnished by the trade ; profit sharing payments; and
Voluntarily Accepted in writing by the employee other cash bonuses amounting to not less than
Charged at Fair & Reasonable Value
1/12 of its basic salary.
THE NON-DIMINUTION RULE -the benefits Difference of opinion on how to compute the 13th
being given to employees cannot be taken
month pay does not justify a strike
back or reduced unilaterally by the
employer because the benefit has become It must always be in the form of legal tender
part of the employment contract, written or . Free rice, electricity cash and stock
unwritten. dividends, COLA not equivalent
The rule is applicable if it is shown that
the grant of the benefit is:
based on an express policy, or
has ripened into practice over a long period of
time, and the practice is consistent and
deliberate. ART 101. PAYMENT BY RESULTS
wages shall be paid directly to the workers to
whom they are due.

EXCEPTIONS:
in case of force majeure/special circumstances,
payment may be made through another
person under written authority where the
worker has died, the
employer may pay the wages of the deceased
worker to the heirs of the latter, through the
Secretary of Labor or his representative,
without the necessity of intestate
proceedings, after the heirs have executed
an affidavit attesting to their relationship to
the deceased and the fact that they are his
heirs to the exclusion of all others

ART 106. CONTRACTOR OR


SUBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.

INDEPENDENT CONTRACTOR - one who


exercises independent employment and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer except as to the result
thereof.

A mere statement in a contract with a


company that laborers who are paid
according to the amount and quality of work
are independent contractors does not
change their status as mere employees
in contemplation of labor laws.

REQUISITES FOR A CONTRACTING


OR SUBCONTRACTING TO BE :
where the contractor or subcontractor carries on
a distinct and independent business and
undertakes to perform the job on his own
account and under his own responsibility,
according to its own manner and method
and free from the control and direction of the
principal in all matters connected with the
performance of the work except as to the
results thereof;
the contractor or subcontractor has
substantial capital or investment; and
3.
distinctions embodied in such wage structure
Regional Tripartite Wages and Productivity based on skills, length of service or other logical
Board bases of differentiation.
Congress
CORRECTING WAGE DISTORTION
MINIMUM WAGE - The lowest wage rate fixed
by law that an employer can pay his Unionized Establishment
employees.
Negotiate to correct the distortion.
ART. 123 WAGE ORDER Any dispute arising therefrom should be
resolved through grievance procedure under
WAGE ORDER an order issued by the their CBA.
Regional Board whenever the conditions in the If the dispute remains unresolved, through
region so warrant after investigating and voluntary arbitration.
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the Establishments without Unions
Regional Board proceeds to determine whether
to issue the same or not. The employers and workers shall endeavor to
correct the distortion.
EFFECTIVITY of a wage Order it shall take Any dispute arising therefrom shall be
effect after 15 days from the its complete settled through the NCMB and
publication in at least one newspaper of general If it remains unresolved after 10 days of
circulation in the region. conciliation, it shall be referred to the NLRC.

FREQUENCY of a wage order - Wage Order Wage distortion is non- strikeable.


issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no Is the employer legally obliged to try
petition for wage increase shall be entertained & correct a wage distortion?
during said period. EXCEPTION: When It appears so. Article 124 of the Code
Congress itself issues a law increasing wages. provides that the employer and the union shall
negotiate to correct the distortions. If there is no
ART 124. STANDARDS/CRITERIA FOR union, the employer and the workers shall
MINIMUM WAGE FIXING endeavor to correct such distortions.

FACTORS FOR DETERMINING Must the previous pay gaps be


REGIONAL MINIMUM WAGE RATES restored?
(DACNNIPFEE) While that is the aim, it need not
necessarily be restored to the last peso. An
Demand for living wages; appreciable differential, a significant pay gap
Wage Adjustment vis-a vis the consumer price should suffice as correction of the distortion.
index;
Cost of living and changes or increases therein;
Needs of workers and their families; CHAPTER VII
Need to induce industries to invest in the ADMINISTRATION AND
countryside;
Improvements in standards of living;
ENFORCEMENT
Prevailing wage levels;
Fair Return of the capital invested and capacity ART. 128. VISITORIAL AND
to pay of employers; ENFORCEMENT POWER
Effects on Employment Generation and Family
Income; ART. 129. RECOVERY OF WAGES,
Equitable Distribution of Income & Wealth along SIMPLE MONEY CLAIMS AND OTHER
the imperatives of economic and social BENEFITS
development
Under Art. 129, the Regional Director is
WAGE DISTORTION - situation where an empowered through summary proceeding
increase in prescribed wage rates results in the and after due notice, to hear and decide
elimination or severe contraction of intentional cases involving recovery of wages and other
quantitative differences in wage or salary rates monetary claims and benefits, including
between and among employee groups in an legal interests.
establishment as to effectively obliterate the
REQUISITES : 1. Visitorial and 1. Power of the

The claim is presented by an employee or enforcement Regional Director or


person employed in domestic or household power of the any duly authorized
service or househelper; Secretary of hearing officers to
The claim arises from employer-employee Labor /his duly hear and decide
relations; authorized matters involving
The claimant does not seek reinstatement; and representatives the recovery of
The aggregate money claim of each employee exercised through wages, upon
or househelper does not exceed P5, 000.00 routine complaint of any
inspections of interested party
Access to employers records and premises establishments
the day/night whenever work is being 2. requires the 2. E-E relationship not
undertaken therein
includes the right to copy therefrom, to existence of E-E necessary since it
question any employee & investigate Relationship should not include a
any fact, condition or matter which may claim for
be necessary to determine violations or reinstatement
which may aid in the enforcement of the 3. No limit as to 3. Aggregate claim of
Code and of any labor law, wage order,
or rules and regulations amount of claim each complainant
does not exceed
Issue Compliance Orders (ART. 128) P5,000
based on the findings of labor 4. Appeal is with 4. Appeal with NLRC;
employment and enforcement officers or
industrial safety engineers made in the Sec.of Labor ; period of appeal is
course of inspection period of appeal 5 calendar days
is 10 calendar
Issue Writs of Execution (ART. 128) days
for the enforcement of orders 5. Person exercising 5. The power is
except in cases where the employer
contests the findings of the said labor the power is the vested upon a
officers and raises issues supported by Sec. Of Labor or regional director or
documentary proofs which were not any of his duly any duly authorized
authorized hearing officer of
considered in the course of inspection.
representatives the DOLE.
Order Work Stoppage/Suspension of who may or may
Operations not be a regional
when non-compliance with the law or director
implementing rules and regulations
poses grave & imminent danger to the
health and safety of the workers in the TITLE III
workplace. WORKING CONDITIONS FOR
Conduct Hearings within 24 hours SPECIAL GROUP OF EMPLOYEES
to determine whether an order for
stoppage of work/suspension of
operations shall be lifted or not. CHAPTER I
employer shall pay the employees EMPLOYMENT OF WOMEN
concerned their salaries in case the
violation is attributable to his fault ART 130. NIGHTWORK PROHIBITION
Require employers to keep and maintain
Employment Records No woman , regardless of age, shall be
- as may be necessary in aid of his employed or permitted or suffered to work,
visitorial and enforcement powers with or without compensation in any :

Industrial undertaking between 10PM-6AM


ART 128 ART 129 Commercial/Non-Industrial undertaking between
12 MN-6AM
Agricultural undertaking at nighttime unless, she
is given a period of rest of not less than 9
consecutive hours
ART 131. EXCEPTIONS
Employee notified her employer of her
Actual/Impending Emergencies caused by pregnancy of the probable date of her
serious accident, flood, typhoon, childbirth
epidemic or other disasters or calamity, Full payment be advanced by the employer
to prevent loss of life or property, or in within 30 days from the filing of the maternity
cases of force majeure or imminent leave application
danger to public safety That payment of daily maternity benefits shall be
Urgent work to be performed on machineries, a bar to the recovery of sickness benefits
equipment or installation, to avoid serious That the maternity benefits shall be paid only for
loss the first four (4) deliveries or miscarriages
Work is necessary to prevent serious loss of That the SSS shall immediately reimburse the
perishable goods employer of 100% of the amount of
Where she holds a responsible position of maternity benefits advanced to the
managerial/technical nature/engaged to employee by the employer
provide health and welfare service That if an employee member should give birth or
Nature of the work requires the manual skill and suffer a miscarriage without the required
dexterity of women workers & cannot be contributions having been remitted for her by
performed with equal efficiency by male her employer to the SSS, or without the
workers latter having been previously notified by the
Where women workers are immediate family employer of the time of the pregnancy, the
members of the family operating the employer shall pay to the SSS damages
establishment or undertaking equivalent to the benefits which said
Analogous cases employee member would otherwise have
been entitled to.
ART 132. FACILITIES FOR WOMEN
ART 133 (b) subsists, i.e., the maternity leave
The Secretary of Labor may require employers shall be extended without pay on account of
to: illness medically certified to arise out of the
Provide seats proper for women and permit pregnancy, delivery, abortion, or
them to use the seats when they are free miscarriage, which renders the woman unfit
from work or during office hours provided for work , unless she has earned unused
the quality of the work will not be leave credits from which such extended
compromised; leave may be charged.
To establish separate toilet rooms and lavatories
for men and women and provide at least a LIMIT OF THE BENEFIT: Applies only for the
dressing room for women; first four deliveries irrespective of who is the
To establish a nursery in the establishment; father of the children, and may not be availed of
To determine appropriate minimum age and in addition to sickness benefit under the Social
other standards for retirement or termination Security program.
in special occupations such as those of flight
attendants and the like RA 8187 (PATERNITY LEAVE)

This law grants paternity leave of seven day


ART. 133 MATERNITY LEAVE with full pay to all married male employees
BENEFITS in the private and public sectors.

MATERNITY LEAVE UNDER THE SSS LAW It is available only for the first four deliveries of
A female member, who need not be the legitimate spouse with whom
legally married, who has paid for at least three the husband is cohabiting.
(3) monthly contributions in the 12-month
period immediately preceding the semester of
DELIVERY includes childbirth, miscarriage, or
her childbirth or miscarriage shall be paid a daily abortion.
maternity benefit equivalent to 100% of her
average daily salary credit for 60 days or 78 Purpose: to enable the husband to lend support
days, in case of caesarian delivery. to his wife during the period of recovery and/or
in the nursing of the newly born child.
REQUISITES :
CONDITIONS : the above acts would impair the employees
rights or privileges under existing
he is an employee at he time of the delivery of labor laws or
his child; The above acts would result in an
he is cohabiting with his spouse at the time she intimidating, hostile, or offensive
gives birth or suffers a miscarriage; environment (Sec. 3[a], RA No. 7877)
he has applied for paternity leave ; and
his wife has given birth or suffered a miscarriage ART 136. STIPULATION AGAINST
MARRIAGE
Paternity leave, if not availed of, is not
convertible to cash. it shall be unlawful for an employer to require as
a condition for employment or continuation of
WIFE - refers to the lawful wife which means the employment that a woman employee shall not
woman who is legally married to the male get married, or to stipulate expressly or tacitly
employee concerned. that upon getting married a woman employee
shall be deemed resigned or separated, or to
Where the male employee is already enjoying actually dismiss, discharge, discriminate or
the paternity leave by reason of any law, otherwise prejudice a woman employee merely
decree, executive orders or any contract, by reason of her marriage.
agreement or policy between employer and
employee and the existing paternity benefit
is greater, the greater benefit shall prevail; ART 138. CLASSIFICATION OF
if lesser, the existing benefit shall be
adjusted to the extent of the difference. CERTAIN WOMEN WORKERS
Any woman who is permitted to work or suffered
to work, with or without compensation, in
ART 135. DISCRIMINATION
any night club, cocktail lounge, massage
PROHIBITED clinic, bar or similar establishment, under the
effective control or supervision of the
It shall be unlawful for any employer to
employer for a substantial period of time as
discriminate against any woman employee determined by the Secretary of Labor, shall
with respect to terms and conditions of be considered as an employee of such
employment solely on account of her sex. establishment for purposes of labor and
social legislation.
Acts of Discrimination:

Payment of a lesser compensation for work of CHAPTER II


equal value.
EMPLOYMENT OF MINORS
Favoring a male employee over a female
employee solely on the account of their
sexes. ART 139. MINIMUM EMPLOYABLE AGE

Sexual Harassment in a Work-Related or Any person between ages 15 and 18 may be


Employment Environment : employed in any non hazardous work.

the sexual favor is made as a condition in Exception and condition on the


the hiring or in the employment, re- employment of a child below 15:
employment or continued employment
of said individual or in granting said When the child works directly under the sole
individual favorable compensation, responsibility of his/her parents or legal guardian
terms, conditions, promotions, or who employs members of his/her family only
privileges; or the refusal to grant the under the following conditions:
sexual favor results in limiting, employment does not endanger the childs
segregating or classifying the life, safety, health and morals
employee which in anyway would employment does not impair the childs
discriminate, deprive or diminish normal development
employment opportunities or otherwise the parent/legal guardian provides the child
adversely affect said employee with the primary and/or secondary
education prescribed by DECS
Where the childs employment or participation in sufficient means in the place where the head
public entertainment or information through of the family lives.
cinema, theater, radio, or television is essential, at least elementary education
provided that: employment certification

employment does not involve CHAPTER IV


advertisements or commercials
promoting alcoholic beverages, EMPLOYMENT OF HOMEWORKERS
intoxicating drinks, tobacco and its by-
products or exhibiting violence; INDUSTRIAL HOMEWORK - a system of
There is a written contract approved by the production under which work for an employer or
DOLE; and contractor is carried out by a homeworker at his
The conditions prescribed for the home.
employment of minors {above stated}
INDUSTRIAL HOMEWORKER - a worker
are met.
who is engaged in industrial homework
NONHAZARDOUS WORK OR UNDERTAKING
one where the employee is not exposed to any BOOK FOUR
risk which constitutes an imminent danger to his HEALTH, SAFETY AND SOCIAL
safety and health. WELFARE BENEFITS
HAZARDOUS WORKPLACES: TITLE I
Where the nature of the work exposes the MEDICAL, DENTAL AND
workers to dangerous environmental OCCUPATIONAL SAFETY
elements, contaminants or work conditions;
Where the workers are engaged in construction CHAPTER I
work, logging, fire-fighting, mining, MEDICAL AND DENTAL SERVICES
quarrying, blasting, stevedoring, dock work,
deep-sea fishing, and mechanized farming;
Where the workers are engaged in the ART 156. FIRST-AID TREATMENT
manufacture or handling of explosives and
FIRST-AID TREATMENT adequate,
other pyrotechnic products;
immediate, and necessary medical and dental
Where the workers use or are exposed to heavy
attention or remedy given in case of injury or
or power-driven machinery or equipment;
illness suffered by a worker during employment,
and
irrespective of whether or not such injury or
Where the workers use or are exposed to
illness is work-connected, before a more
power-driven tools,
extensive medical and/or dental treatment can
CHAPTER III be secured.
EMPLOYMENT OF HOUSEHELPERS FIRST AIDER any person trained and duly
certified as qualified to administer first aid by the
RIGHTS OF HOUSEHELPERS: Phil. National Red Cross or by any other
organization accredited by the former.
minimum cash wage
non-assignment to non- household work TITLE II
opportunity for education: if under 18 (cause of EMPLOYEES COMPENSATION AND
education part of compensation)
STATE INSURANCE FUND
board/ lodging, medical attendance
just and humane treatment
WORKMENS COMPENSATON- A general
indemnity for unjust termination of services
just causes for termination and comprehensive term applied to those laws
right not to be required to work more than 10 providing for compensation for loss resulting
hours a day from the injury, disablement or death of a
for days vacation each month workman through industrial accident, casualty or
to regular wages if employed in industrial or disease.
commercial or agricultural undertaking
funeral expenses must be paid by employer if COMPENSATION - Money relief afforded
according to the scale established under the
the househelper has no relatives with
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.

Conditions for an occupational


disease and the resulting disability or
WORKMENS EMPLOYEES death to be compensable :
COMPENSATION COMPENSATION
ACT LAW The employees work must involve the risk
1. There is a 1. no presumption of described therein
The disease was contracted as a result of the
presumption of compensability employees exposure to the described risks;
compensability The disease was contracted within a period of
2. there is a 2. no presumption of exposure and under such other factors
necessary to contract it;
presumption of aggravation There was no notorious negligence on the part
aggravation
of the employee
3. there is a need for 3. no need for the
DEATH - Loss of life resulting from injury or
the employer to employer to
sickness
controvert the controvert
claim within 14 DISABILITY -Loss or impairment of a
days otherwise
physical or mental function resulting from injury
he is deemed to
or sickness.
have waived the
right DIRECT PREMISES RULE as a general
4. payment of 4. payment of rule, the accident should have occurred at the
place of work to be compensable
compensation compensation
made by the made by SSS/GSIS
employer through the State
EXCEPTIONS TO THE DIRECT
Insurance Fund PREMISES RULE
INGRESS- EGRESS/ PROXIMITY RULE-when
the employer is about to leave or about to
ART 164. DEFINITION OF TERMS. enter the premises of the employer by way
of the customary or exclusive means of
INJURY - Any harmful change in the human
ingress or egress.
organism from any accident arising out of and in
the course of employment. GOING TO OR COMING FROM WORK-when
the injury occurred when the employee is
GROUNDS FOR AN INJURY TO BE proceeding to or from his work on the
COMPENSABLE premises of the employer
must be a continuing act and has not
the employee must have been injured at the diverted therefrom by any other activity
place where the work requires him to be and he has not departed from his usual
the employee must have been performing his route to or from his workplace and if the
official functions employee is on a special errand, it must
if the injury is sustained elsewhere, the have been official and in connection with
employee must have been executing an his work.
order for the employer
the injury was not due to the employees EXTRA-PREMISES RULE (or the shuttle bus
intoxication, willful intention to injure or kill rule) where the company provides the
himself or another, notorious negligence or means of transportation in going to or
otherwise prohibited under this Title. coming from the place of work is liable to the
injury sustained by the employees while on
SICKNESS - Any illness definitely accepted board said means of transportation.
as an occupational disease listed by the
Commission or any illness caused by SPECIAL ERRAND RULE injury sustained
employment subject to proof that the risk of outside the company premises is
contracting the same is increased by working compensable if his being out is covered by
conditions.
an office order or a locator slip or a pass for Willful intention to injure or kill himself or
official business. another;
Notorious negligence; or
DUAL PURPOSE DOCTRINE allows Unless otherwise provided by the LC
compensation where a special trip would
have to be made for the employer if the NOTORIOUS NEGLIGENCE deliberate act
employee had not combined the service for of the employee to disregard his own personal
the employer with his own going or coming safety.
trip.
Is death through suicide compensable ?
SPECIAL ENGAGEMENT RULE covers field As a rule NO. However as held in NAESS
trips, outings, intramurals and picnics when vs. NLRC, the supreme court ruled that a self
initiated or sanctioned by the employer inflicted death could be compensable if :

POSITIONAL AND LOCAL RISKS DOCTRINE by agreement of the parties


If an employee by reason of his duties is The suicide/death is caused by a work
exposed to a special or peculiar danger from related or compensable illness or
the elements, that is, one greater than that disease.
to which other persons in the community are
exposed and an unexpected injury occurs, ART 173. EXTENT OF LIABILITY
the injury is compensable
Simultaneous recovery under the Labor Code
FORCE MAJEURE OR AN ACT OF GOD-when and the Civil Code cannot be made. The
one in the course of his employment is action is selective and the employee may
reasonably required to be at a particular either choose to file the claim under either.
place at a particular time and there meets an But once the election is made, the claimant
accident although one which any other cannot opt for the other remedy.
person then and there present would have
met irrespective of his employment. Simultaneous recovery under the LC and the
SSS can be made as per an advisory
CHAPTER II opinion dated May 23, 1989 of Sec. Drilon
COVERAGE AND LIABILITY since PD 1921 has lifted the ban on
simultaneous recovery.
ART 168. COMPULSORY COVERAGE
STATE INSURANCE FUND: all covered
ECL applies to all employers, public or private, employers are required to remit to a common
and to all employees, public or private fund a monthly contribution equivalent to one
including casual, emergency, temporary, or percent of the monthly salary credit of every
covered employee. The employee pays no
substitute employees.
contribution to the fund. Any agreement to the
Every employee is covered who is not over 60 contrary is prohibited.
years over 60 years of age or over 60 years
of age if he had been paying contributions
prior to the age of 60 CHAPTER VI
DISABILITY BENEFITS
ART 170. EFFECTIVE DATE OF
COVERAGE DISABILITY CATEGORIES:

The employer is covered compulsorily from first TEMPORARY TOTAL - if as a result of the
day of operation and the employee from the injury or sickness, the employee is unable to
first day of employment perform any gainful occupation for a continuous
period not exceeding 120 days
ART 172. LIMITATIONS OF LIABILITY
PERMANENT TOTAL - if as a result of the
NO COMPENSATION can be obtained if the injury or sickness, the employee is unable to
injury, death or disability is a result of the perform any gainful occupation for a continuous
employees: period exceeding 120 days

Intoxication; PERMANENT PARTIAL - if as a result of the


injury or sickness, the employee suffers a
permanent partial loss of the use of any part of LABOR RELATIONS LAW - Concerned with
his body. the stabilization of relations of employer
and
DEATH BENEFITS employees and seeks to forestall and adjust
The System shall pay to the primary grievances through - the encouragement of
beneficiaries upon the death of the covered collective bargaining and the settlement of
employee an amount equal to his monthly labor disputes through conciliation,
income benefit, plus ten percent thereof for mediation and arbitration.
each dependent child, but not exceeding
five, beginning with the youngest and Absent an employer-employee relation, there is
without substitution. The income benefit no labor relations to speak of.
shall be guaranteed for five years.
PARTIES TO LABOR RELATIONS
DEPENDENTS: CASES:
The employees organization,
the legitimate, legitimated, legally adopted or management, and
acknowledged natural child who is the public
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of age The public is always to be considered in
provided that he is incapable of self-support disputes between labor and capital, and it
due to a physical or mental defect which is ahas been held that the rights of the
congenital or acquired during minority general public are paramount.

legitimate spouse living with the employee Labor relations policy under the LC is
the parents of said employee wholly dependent embodied in Section 3 Article XIII of the
upon him for regular support 1987 Constitution which guarantees to all
workers their right among others to self-
BENEFITS organization, collective bargaining and
negotiations, peaceful land concerted
for life to the primary beneficiaries, guaranteed activities including the right to strike in
for five years accordance with law, and to participate in
for not more than 60 months to the secondary policy and decision making processes
beneficiaries in case there are no primary affecting their rights and benefits as may be
beneficiaries provided by law.
in no case shall the total benefit be less that P
15, 000.00
ART. 212. DEFINITIONS
THE BENEFICIARIES ARE:
LABOR DISPUTE INCLUDES:
PRIMARY BENEFICIARIES
Dependent spouse until he remarries any controversy or matter concerning terms or
dependent children ( legitimate, legitimated, conditions of employment or
natural born or legally adopted) the association or representation of persons in
negotiating, fixing, maintaining, charging or
SECONDARY BENEFICIARIES arranging the terms and conditions of
a. Illegitimate children and legitimate employment, regardless of whether the
descendants disputants stand in the proximate relation of
b. parents, grandparents, grandchildren employer and employee.

EMPLOYEE- shall not be limited to the


BOOK FIVE employees of a particular employer.

LABOR RELATIONS it shall include any individual whose


work has ceased: as a result of or in
connection with any current labor
TITLE I dispute; or because of unfair labor
POLICY AND DEFINITIONS practice

If he has not obtained any other:


ART 211. DECLARATION OF POLICY Substantially equivalent and
Permanent employment