LABOR STANDARDS LAW
Civil Code Provisions:
1705 – laborer’s wages shall be paid in legal currency
1706 – withholding the wages, except for a debt due,
shall not be made by the employer
1707 – the laborer’s wages shall be a lien on the goods
manufactured on the work done
1708 – the laborer’s wages shall not be subject to
execution or attachment, except for debts
incurred for food, shelter, clothing and medical
attendance.
1709 – the employer shall neither seize nor retain any
tool or other articles belonging to the laborer
Penalty for violation of Art 112:
> any violation subjects the offender to the general
penalty clause under Art 288 of LC imposing
a. a fine of not less than php 1000 nor more than P
10, 000 or
b. imprisonment for not less than 3 mos nor more
than 3 yrs or
c. both
> RPC: arresto mayor or a fine ranging from 200 to 500
php, or both, upon any person, agent, or officer of
association or corp, who shall force or compel, directly
or indirectly, or shall knowingly permit any laborer or
employee employed by him or by such firm or
corporation, to be forced or compelled, to purchase
merchandise or commodities of any kind.
Art 113. Wage Reduction
GR: No employer, in his own behalf or in behalf of any
person, shall make any deduction from wages in
employees
 Except:
- where the worker is insured with his consent by
the employer, and deduction is to recompense
the employer for the amount paid by him as
premium on the insurance
- for union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer or authorized in
writing by the individual worker concerned
- where the employer is authorized by law or
regulations issued by the Secretary of Labor
Deductions authorized by law:
1. Deduction for value of meals and other facilities
2. In cases where the employee is insured with his
consent by the employer, deductions for the amount
paid by said employer, as premiums on the insurance
3. In cases where the right of the employees or his
union to check off has been recognized by the
employer or authorized in writing by the individual
concerned
4. in cases where the employee is indebted to the
employer, where such indebtedness has become due
and demandable
5. in court awards, wages may be the subject of
execution or attachment, but only for debts incurred
for food, shelter, clothing, and medical attendance
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6. withholding tax
7. Salary deductions of a member of a legally
established cooperative
8. SSS, medicare, and pag-ibig contributions
Payment to Third Person – an employee’s payment of
obligation to a third person is deductible from the
employee’s wages if the deduction is authorized in
writing by the employee. The employer may agree to
make the deduction BUT IS NOT OBLIGED to do so. He
must not receive pecuniary benefit, directly or
indirectly, from the transaction.
Prohibitions Regarding Wages: Wage Deductions
 The LC in requiring an individual written
authorization as a prerequisite to wage deductions,
seeks to protect the employee against unwarranted
practices that would diminish his compensation
without his knowledge and consent
Deductions for absences
GR: allowed.
If employee is monthly paid, determine equivalent daily
rate before making the deduction
- [(MR*12)/number of days considered paid in a yr]
Reduced pay because of reduced work days
 Right to reduce Workdays: where the reduction is
resorted by employer to prevent serious losses due
to causes beyond his control, the reduction was held
by the Bureau of Working Conditions as valid.
It is generally recognized that an employer has the
prerogative to devise and adopt necessary remedial
measures to save his business from serious losses
that may eventually result in its total collapse
Prerogative flows from the right of ownership of
property which includes the right of an employer to
manage, control, and protect his property in a
manner that is not contrary to law, morals and public
policy.
Reduction of Wage/Allowances
 This Bureau is also of the view that the employer
may deduct the wages and living allowances
corresponding to the days taken off from the
workweek, in the absence of an agreement
specifically providing that a reduction in the number
of workdays will not adversely affect the
remuneration of the employees.
 Generally, absence of such agreement gives rise to a
disputable presumption that the initial
understanding of the parties at the time of
engagement of the employees is that the latter would
be paid only for the number of days actually worked,
which number will depend on the availability of
work in a week or within a payroll period.
Principle of ‘no-work-no-pay’. Furthermore,
considering that reduction of workday is resorted to
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LABOR STANDARDS LAW
by an employer precisely to save on operating costs
to prevent losses, it would be unfair to require him to
pay the wages and living allowances even on
unworked days that were taken off from the regular
workweek.
Reduction of Workdays: Effect on Wages
 Where the employer reduce the number of regular
work days to prevent serious losses, such as when
there is a substantial slump in the demand for
his/her good or services or when there is law of raw
materials, the employer may deduct the wages
corresponding to the days taken off from the work
week, consistent with the principle of no work no
pay.
Unjustified Work Reduction: Constructive Dismissal
 Reduction of work days also reduces the employee’s
income cannot be regarded as a standard or routine
employer’s recourse. An extreme measure,
approximating loss of the worker’s source of
livelihood, that needs solid justification, namely the
occurrence of severe financial losses. The losses
must be shown by evidence.
Main consideration in determining the validity of
reduction of working hours (or working days) is that
the company is suffering from losses.
While no definite guidelines have yet been set to
determine what losses sufficiently justify reduction of
work hours, certain standards must be approximated
similar to those applicable to cases of retrenchment or
suspension of work.
Unjustified Work Reduction: Constructive Dismissal and
ULP
 Reducing workdays should be done in good faith,
not as a means to retaliate against employees who
unionized.
Art 114. Deposits for loss or damage
No employer shall require his worker to make deposits
from which deductions shall be made for the
reimbursement of loss of or damage to tools, materials,
or equipment supplied by the employer, except when
the employer is engaged in such trades, occupations or
businesses where the practice of making deductions or
requiring deposits is a recognized one, or is necessary
or desirable as determined by the Secretary of Labor m
appropriate rules and regulations.
Art 115. Limitations
No deduction from the deposits of an employee for the
actual amount of the loss or damage shall be made
unless the employee has been heard thereon, and his
responsibility has been clearly shown.
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 Illegal Deposit
Art. 114 provides the rule on deposits for loss or
damage to tools, materials, or equipment supplied by
the employer.
 Deduction for loss or damage
According to implementing rules, payments for lost
or damaged equipment is deductible from the
employee’s salary if 4 conditions are met, namely:
1. the employee is clearly shown to be responsible
for the loss or damage
2. the employee is given ample opportunity to show
cause why deduction should not be made;
3. the amount of the deduction is fair and reasonable
and shall not exceed the actual loss or damage;
4. the deduction from the employee’s wage does not
exceed 20% of the employee’s wage in a week
Art 116. Withholding of Wages and Kickbacks
Prohibited. — It shall be unlawful for any person,
directly or indirectly, to withhold any amount from the
wages of a worker or induce him to give up any part of
his wages by force, stealth, intimidation, threat or
dismissal or by any other means whatsoever without
the worker’s consent.
Art 117. Deduction to Ensure Employment. — It shall
be unlawful to make any deduction from the wages of
any employee for the benefit of the employer or his
representative or intermediary as consideration of a
promise of employment or retention in employment.
ART. 118. Retaliatory Measures. — It shall be
unlawful for an employer to refuse to pay, reduce the
wages, discharge or in any manner discriminate against
any employee who has filed any complaint or instituted
any proceeding under this Title.
Dismissal as Retaliation
 Dismissal of an employee is illegal where it was
shown to be a consequence of his having filed a
complaint against his employer who pays a
subminimum wage.
Art 119. False Reporting - It shall be unlawful for any
person to make any statement, report, or record filed or
kept pursuant to the provisions of this Code knowing
such statement, report or record to be false in any
material respect.
Records an Employer Must Keep:
1. Length of time to paid;
2. Rate of pay per month, week, day or hours, piece, etc.
3. Amount due for regular work;
4. Amount due for overtime work;
5. Deductions made from the wages; and
6. Amount actually paid.
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LABOR STANDARDS LAW
Art. 120. Creation of National Wages and
Productivity Commission
There is hereby created a National Wages and
Productivity Commission, hereinafter referred to as the
Commission, which shall be attached to the Depatment
of Labor and Employment [DOLE] for policy and
program coordination.
The NWPC
The National Wages and Productivity Commission was
created by RA No. 6727, Wage Rationalization Act. The
NWPC and NPC under EO 615.
Art 121. Powers and Functions of the Commission
The Commission shall have the following powers and
functions:
(a) To act as the national consultative and advisory
body to the President of the Philippines and Congress
on matters relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages,
incomes and productivity improvement at the
enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial or
industry levels;
(d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to determine
if these are in accordance with prescribed guidelines
and national development plans;
(e) To undertake studies, researches and surveys
necessary for the attainment of its functions and
objectives, and to collect and compile data and
periodically disseminate information on wages and
productivity and other related information, including,
but not limited to, employment, cost-of-living, labor
costs, investments and returns;
(f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to determine
whether these are consistent with national
development plans;
(g) To exercise technical and administrative supervision
over the Regional Tripartite Wages and Productivity
Boards;
(h) To call, from time to time, a national tripartite
conference of representatives of government, workers
and employers for the consideration of measures to
promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be
necessary to implement this Act.
Art. 122. Creation of Regional Tripartite Wages and
Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all regions,
including autonomous regions as may be established by
law.
The Commission shall determine the offices/
headquarters of the respective Regional Boards.
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"The Regional Boards shall have the following powers
and functions in their respective territorial jurisdiction:
(a) To develop plans, programs and projects relative to
wages, incomes and productivity improvement for
their respective regions;
(b) To determine and fix minimum wage rates
applicable in their region, provinces or industries
therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys
necessary for the attainment of their functions,
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other
related information and periodically disseminate the
same;
(d) To coordinate with the other Regional Boards as
may be necessary to attain the policy and intention
of this Code;
(e) To receive, process and act on applications for
exemption from prescribed wage rates as may be
provided by law or any Wage Order; and
(f) To exercise such other powers and functions as may
be necessary to carry out their mandate under this
Code.
PURPOSE OF CREATING THE RTWPB
RA 6727 – intention was to rationalize wages, first, by
providing for full-time boards to police wages round-
the-clock, and second, by giving the boards enough
powers to achieve this objective.
Art. 123. Wage Order. - Whenever conditions in the
region so warrant, the Regional Board shall investigate
and study all pertinent facts; and, based on the
standards and criteria herein prescribed, shall proceed
to determine whether a Wage Order should be issued.
Any such Wage Order shall take effect after fifteen (15)
days from its complete publication in at least one (l)
newspaper of general circulation in the region.
"In the performance of its wage-determining functions,
the Regional Board shall conduct public hearings/
consultations, giving notices to employees' and
employers' groups, provincial, city and municipal
officials and other interested parties.
"Any party aggrieved by the Wage Order issued by the
Regional Board may appeal such order to the
Commission within ten (l0) calendar days from the
publication of such order. It shall be mandatory for the
Commission to decide such appeal within sixty (60)
calendar days from the filing thereof.
"The filing of the appeal does not operate to stay the
order unless the person appealing such order shall file
with the Commission an undertaking with a surety or
sureties satisfactory to the Commission for the payment
to the employees affected by the order of corresponding
increase, in the event such order is affirmed.”
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LABOR STANDARDS LAW
Review of Wage Order – The Commission may review
the Wage Order issued by the Board motu proprio or
upon appeal.
An appeal may be filed on the following grounds:
1. Non – conformity with prescribed guidelines and/or
procedure;
2. Questions of law
3. Grave abuse of discretion
RTWPB, not NWPC, approves Wage Order
- NWPC prescribes rules and guidelines for
determination of appropriate minimum wage and
productivity measures at the regional, provincial, or
industry levels.
RTWPBs are empowered “to determine and fix
minimum wage rates applicable in their regions” and “to
issue the corresponding wage orders.”
Labor Code does not require NWPC’s approval of a wage
order. What it requires is for the wage board to conduct
a public hearing over a petition or the wage order, to
decide such petition within thirty (30) days after the
last hearing, and to “furnish the Commission a copy of
the decision on the petition or wage order.”
Appeal – NPWC has the power to review regional wage
levels, to review plans and programs
Guidelines from RTWPB
Wage Rationalization Act, grants National Wages and
Productivity Commission power to prescribe rules and
guidelines for the determination of appropriate wages
in the country. Hence “guidelines” issued by RTWPB
without the approval of or, worse, contrary to those
promulgated by the NWPC are ineffectual, void, and
cannot be the source of rights and privileges.
PUBLIC HEARINGS AND PUBLICATION, MANDATORY
Art. 124. Standards/Criteria for Minimum Wage
Fixing.
The regional minimum wages to be established by the
Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum
standards of living necessary for the health, efficiency
and general well-being of the employees within the
framework of the national economic and social
development program. In the determination of such
regional minimum wages, the Regional Board shall,
among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis-à-vis the consumer price
index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
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AZUCENA[2013] SUMMARY
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to
pay of employers;
(i) Effects on employment generation and family
income; and
(j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
TWO METHODS OF MINIMUM WAGE ADJUSTMENT
1. involves the fixing of determinate amount that would
be added to the prevailing statutory minimum wage
2. other involves “the salary-ceiling method” whereby
the wage adjustment is applied to employees
receiving a certain denominated salary ceiling.
 Floor wage order Does not Require Across the
Board Pay Increase.
Where the wage order prescribes a minimum
or floor wage, to upgrade the wages of
employees receiving less than the minimum
wage set by the Order, the employer cannot be
compelled to grant an across-the-board
increase to its employees who, at the time of
the promulgation of the wage order, were
already being paid more than the existing
minimum wage.
Minimum wage [Reasons]
 Underlying effort of the State to promote
productivity improvement and gain sharing
measures to ensure a decent standard of living
for the workers and their families; to guarantee
the rights of the labor to its just share in the
fruits of production; to enhance employment
generation in the countryside through industry
dispersal and to allow business and industry
and reasonable returns on investment,
expansion and growth
 To affirm labor as a primary social economic
force. The statute would have no need for a
wage board if the question were simply “how
much”
Wage Distortion:
 A situation where an increase in prescribed
wage rates results in the elimination or severe
contraction of intentional quantitative
differences in wage or salary rates between and
among employee groups such wage structure
based on skills, length of service, other logical
bases of differentiation
 Is the effect of increasing the pay of an
employee to such an amount that equals,
almost equals or overtakes another employee’s
pay which has not been similarly increased.
Intentional quantitative differences:
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LABOR STANDARDS LAW
 Differences among job-pay grades under Art.
124. Where jobes are given quantitative ratings
based on such factors such as skills, or
education, degree of responsibility, physical
effort, work condition, and complexity of duties.
For a distortion to exist, the law does not require an
elimination or total abrogation of quantitative wage or
salary differences; a severe contraction thereof is
enough.
Salary Reconstructing: What is NOT Distortion
 the distortion referred to in Art 124 is one
arising from compliance with a wage order. It
does not refer to a revision of salary scale
initiated by the employer.
 is properly a matter of management judgment
and discretion, and ultimately, a subject matter
for bargaining negotiations between employer
and employees.
Absent any indication that the voluntary increase of
salary rates by an employer was done arbitrarily and
illegally for the purpose of circumvention of the law and
was devoid of any legitimate purpose other than to
discriminate against the regular employees, this Court
will not step into interfere with this management
prerogative.
 Employees are not precluded from negotiating
with its employer and lobby for wage increase
through appropriate channels such as through
CBA.
Ways to Correct Distortion
 legislative intent is to encourage the parties to
seek solution to the problem of wage
distortions through voluntary negotiation or
arbitration, rather than strikes, lockouts, or
other concerted activities of the employees or
management.
 Recognition and validation of wage increases
given by employers either unilaterally or as a
result of a CBA negotiation for the purpose of
correcting wage distortion are in keeping with
public policy of encouraging employers to grant
wage and allowance increases to their
employees which are higher than the minimum
rates of increases prescribed by statute or
administrative regulation.
FORMULA FOR WAGE DISTORTION:
Existing Minimum Wage = % x Prescribed Wage
Actual Salary of Employee Increase = Distortion
Adjustment amount
Rectification Need Not be Across the Board
To compel employers simply to add on legislated
increases in salaries or allowances without regard to
what is already being paid, would be to penalize
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AZUCENA[2013] SUMMARY
employers who grant their workers more than the
statutory prescribed minimum rates of increases.
Summation of Principles of Salary Distortion
[National Federation Labor v. NLRC 1994]
(a) The concept of wage distortion assumes an existing
grouping or classification of employees which
establishes distinctions among such employees on
some relevant or legitimate basis. This classification
is reflected in a deferring wage rate for each of the
existing classes of employees.
(b) Wage distortions have often been the result of
government-decreed increases in minimum wages.
There are, however, other causes of wage
distortions, like the merger of two (2) companies
(with differing classifications of employees and
different wage rates) where the surviving company
absorbs all the employees of the dissolved
corporation. (In the present Metro case, as already
noted, the wage distortion arose because the
effectivity dates of wage increases given to each of
the two (2) classes of employees (rank-and-file and
supervisory) had not been synchronized in their
respective CBAs.)
(c) Should a wage distortion exist, there is no legal
requirement that, in the rectification of that
distortion by re-adjustment of the wage rates of the
differing classes of employees, the gap which had
previously or historically existed be restored
in precisely the same amount. In other words,
correction of a wage distortion may be done by re-
establishing a substantial orsignificant gap (as
distinguished from the historical gap) between the
wage rates of the differing classes of employees.
(d) The re-establishment of a significant difference in
wage rates may be the result of resort to grievance
procedures or collective bargaining negotiations.
Wage Distortion: Nonstrikeable
If wage or salary distortion results from implementation
of a wage order, the employer and the union shall
negotiate to correct the distortion. The distortion
dispute should be resolved through grievance
procedure or voluntary arbitration or in the absence of
CBA, through NCMB or LA.
Liability of Contractor’s Principal in Certain Industries
RA No. 6727 – has specific provision on the liability of
the principal for wage rate increases for construction
and similar workers.
It states in Sec. 6. In the case of contracts for
construction projects and for security, janitorial and
similar services, the prescribed increases in the wage
rates of the workers shall be borne by the principals or
clients of the construction/service contractors and the
contract shall be deemed amended accordingly. In the
event, however, that the principal or client fails to pay
the prescribed wage rates, the construction/service
contractor shall be jointly and severally liable with his
principal or client.
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LABOR STANDARDS LAW
ART. 125: Freedom to Bargain
No wage order shall be construed to prevent workers in
particular firms or enterprises of industries from
bargaining for higher wages with their respective
employer.
Art. 126. Prohibition Against Injunction.
No preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal
or other entity against any proceedings before the
Commission or the Regional Boards.
Art. 127. Non-Diminution of Benefits.
No Wage Order issued by any Regional Board shall
provide for wage rates lower than the statutory
minimum wage rates prescribed by
Congress."
Chapter VI: ADMINISTRATION AND ENFORCEMENT
Art. 128. Visitorial and enforcement power.
The Secretary of Labor and Employment or his duly
authorized representatives, including labor regulation
officers, shall have access to employer’s records and
premises at any time of the day or night whenever work
is being undertaken therein, and the right to copy
therefrom, to question any employee and investigate
any fact, condition or matter which may be necessary to
determine violations or which may aid in the
enforcement of this Code and of any labor law, wage
order or rules and regulations issued pursuant thereto.
Notwithstanding the provisions of Articles 129 and 217
of this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the
Secretary of Labor and Employment or his duly
authorized representatives shall have the power to
issue compliance orders to give effect to the labor
standards provisions of this Code and other labor
legislation based on the findings of labor employment
and enforcement officers or industrial safety engineers
made in the course of inspection. The Secretary or his
duly authorized representatives shall issue writs of
execution to the appropriate authority for the
enforcement of their orders, except in cases where the
employer contests the findings of the labor employment
and enforcement officer and raises issues supported by
documentary proofs which were not considered in the
course of inspection. (As amended by Republic Act No.
7730, June 2, 1994).
An order issued by the duly authorized representative
of the Secretary of Labor and Employment under this
Article may be appealed to the latter. In case said order
involves a monetary award, an appeal by the employer
may be perfected only upon the posting of a cash or
surety bond issued by a reputable bonding company
duly accredited by the Secretary of Labor and
Employment in the amount equivalent to the monetary
award in the order appealed from. (As amended by
Republic Act No. 7730, June 2, 1994)
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AZUCENA[2013] SUMMARY
The Secretary of Labor and Employment may likewise
order stoppage of work or suspension of operations of
any unit or department of an establishment when non-
compliance with the law or implementing rules and
regulations poses grave and imminent danger to the
health and safety of workers in the workplace. Within
twenty-four hours, a hearing shall be conducted to
determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case
the violation is attributable to the fault of the employer,
he shall pay the employees concerned their salaries or
wages during the period of such stoppage of work or
suspension of operation.
It shall be unlawful for any person or entity to obstruct,
impede, delay or otherwise render ineffective the
orders of the Secretary of Labor and Employment or his
duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior
court or entity shall issue temporary or permanent
injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement
orders issued in accordance with this Article.
Any government employee found guilty of violation of,
or abuse of authority, under this Article shall, after
appropriate administrative investigation, be subject to
summary dismissal from the service.
The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep and
maintain such employment records as may be necessary
in aid of his visitorial and enforcement powers under
this Code.
Art. 129. Recovery of wages, simple money claims
and other benefits.
Upon complaint of any interested party, the Regional
Director of the Department of Labor and Employment
or any of the duly authorized hearing officers of the
Department is empowered, through summary
proceeding and after due notice, to hear and decide any
matter involving the recovery of wages and other
monetary claims and benefits, including legal interest,
owing to an employee or person employed in domestic
or household service or househelper under this Code,
arising from employer-employee relations: Provided,
That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate
money claims of each employee or househelper does
not exceed Five thousand pesos (P5,000.00). The
Regional Director or hearing officer shall decide or
resolve the complaint within thirty (30) calendar days
from the date of the filing of the same. Any sum thus
recovered on behalf of any employee or househelper
pursuant to this Article shall be held in a special deposit
account by, and shall be paid on order of, the Secretary
of Labor and Employment or the Regional Director
directly to the employee or househelper concerned. Any
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LABOR STANDARDS LAW
such sum not paid to the employee or househelper
because he cannot be located after diligent and
reasonable effort to locate him within a period of three
(3) years, shall be held as a special fund of the
Department of Labor and Employment to be used
exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be
appealed on the same grounds provided in Article 223
of this Code, within five (5) calendar days from receipt
of a copy of said decision or resolution, to the National
Labor Relations Commission which shall resolve the
appeal within ten (10) calendar days from the
submission of the last pleading required or allowed
under its rules.
The Secretary of Labor and Employment or his duly
authorized representative may supervise the payment
of unpaid wages and other monetary claims and
benefits, including legal interest, found owing to any
employee or househelper under this Code. (As amended
by Section 2, Republic Act No. 6715, March 21, 1989)
REGIONAL ADMINISTRATION & ENFORCEMENT
 DOLE – primary policy, programming, coordinating,
and administrative entity of the government
 Primary responsibilities:
(a) The promotion of gainful employment
opportunities and the optimization of the
development and utilization of the country’s
manpower resources;
(b) The advancement of workers’ welfare by
providing for just and humane working
conditions and terms of employment;
(c) The maintenance of industrial peace by
promoting harmonious, equitable, and stable
employment relations that assure equal
protection for the rights of all concerned parties.
REGIONAL LEVEL: offices authorized to the
enforcement of labor laws.
1. DOLE Regional Office headed by RD including
divisions:
a. administrative division
b. labor standards enforcement division
c. industrial relations division
d. workers amelioration and welfare division
e. employment promotion division
2. TESDA [Technical Education and Skills Development
Authority
3. Regional Arbitration Board [RAB] of the NLRC which
handles compulsory arbitration cases affecting labor
and management, aside from enforcing decisions,
awards, or orders of the NLRC.
4. NCMB - which has absorbed the conciliation,
mediation, and voluntary arbitration functions of
Bureau of Labor Relations
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AZUCENA[2013] SUMMARY
5. RTWPB – determines minimum wage in region and
issue wage orders subject to the guidelines set by NWPC.
ENFORCEMENT OF DO NO. 57-04
The Labor Standards Enforcement Framework [LSEF]
shall ensure compliance with labor standards through
the following:
a. Self-assessment. This voluntary mode shall be
encouraged in establishments with at least 200
workers. It shall also apply to unionized
establishments with Certified Collective Bargaining
Agreement regardless of the number of workers.
Employers will be provided with a Checklist for this
purpose.
b. Inspection. This approach shall be undertaken in
workplaces with 10 to 199 workers and effect
restitutions/corrections if there are violations.
c. Advisory services. This approach shall be undertaken
in workplaces with less than 10 workers and those
registered as Barangay Micro-Business Enterprises
(BMBEs).
SCOPE OF VISITORIAL ENFORCEMENT POWER
UNDER ART. 128
 Pursuant to Section 1 of Republic Act 7730
[Approved on June 2, 1994] which amended Article
128 (b) of the Labor Code, the Secretary of Labor and
Employment or his duly authorized representative,
in the exercise of their visitorial and enforcement
powers, are now authorized to issue compliance
orders to give effect to the labor standards
provisions of this Code and other labor legislation
based on the findings of labor employment and
enforcement officers or industrial safety engineers
made in the course of inspection, sans any restriction
with respect to the jurisdictional amount
of P5,000.00 provided under Article 129 and Article
217 of the Code.
WHO DETERMINES THE EXISTENCE OF EMPLOYER-
EMPLOYEE RELATIONSHIP:
BOMBYO RADYO RULING [May 8, 2009]
The existence of an employer-employee relationship is a
statutory prerequisite to and a limitation on the power
of the Secretary of Labor, one which the legislative
branch is entitled to impose. The rationale underlying
this limitation is to eliminate the prospect of competing
conclusions of the Secretary of Labor and the NLRC, on a
matter fraught with questions of fact and law, which is
best resolved by the quasi-judicial body, which is the
NRLC, rather than an administrative official of the
executive branch of the government. If the Secretary of
Labor proceeds to exercise his visitorial and
enforcement powers absent the first requisite, as the
dissent proposes, his office confers jurisdiction on itself
which it cannot otherwise acquire.
The Regional Director, therefore, committed grievous
error in ordering petitioner to answer for respondents
AKD NOTES |SBCA SOL SY 2015-2016 [2ND SEM] |P . 44
LABOR STANDARDS LAW
claims. Moreover, with the conclusion that no employer-
employee relationship has ever existed between
petitioner and respondent, it is crystal-clear that the
DOLE Regional Director had no jurisdiction over
respondents complaint. Thus, the improvident exercise
of power by the Secretary of Labor and the Regional
Director behooves the court to subject their actions for
review and to invalidate all the subsequent orders they
issued.
BOMBO RADYO RULING [MARCH 2012]
The prior decision of this Court in the present case
accepts such answer, but places a limitation upon the
power of the DOLE, that is, the determination of the
existence of an employer-employee relationship cannot
be co-extensive with the visitorial and enforcement
power of the DOLE. But even in conceding the power of
the DOLE to determine the existence of an employer-
employee relationship, the Court held that the
determination of the existence of an employer-
employee relationship is still primarily within the
power of the NLRC, that any finding by the DOLE is
merely preliminary. This conclusion must be revisited.
No limitation in the law was placed upon the power of
the DOLE to determine the existence of an employer-
employee relationship. No procedure was laid down
where the DOLE would only make a preliminary finding,
that the power was primarily held by the NLRC. The law
did not say that the DOLE would first seek the NLRCs
determination of the existence of an employer-
employee relationship, or that should the existence of
the employer-employee relationship be disputed, the
DOLE would refer the matter to the NLRC. The DOLE
must have the power to determine whether or not an
employer-employee relationship exists, and from there
to decide whether or not to issue compliance orders in
accordance with Art. 128(b) of the Labor Code, as
amended by RA 7730.
Under Art. 128(b) of the Labor Code, as amended by RA
7730, the DOLE is fully empowered to make a
determination as to the existence of an employer-
employee relationship in the exercise of its visitorial
and enforcement power, subject to judicial review, not
review by the NLRC.
To recapitulate, if a complaint is brought before the
DOLE to give effect to the labor standards provisions of
the Labor Code or other labor legislation, and there is a
finding by the DOLE that there is an existing employer-
employee relationship, the DOLE exercises jurisdiction
to the exclusion of the NLRC. If the DOLE finds that
there is no employer-employee relationship, the
jurisdiction is properly with the NLRC. If a complaint is
filed with the DOLE, and it is accompanied by a claim for
reinstatement, the jurisdiction is properly with the
Labor Arbiter, under Art. 217(3) of the Labor Code,
which provides that the Labor Arbiter has original and
exclusive jurisdiction over those cases involving wages,
rates of pay, hours of work, and other terms and
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AZUCENA[2013] SUMMARY
conditions of employment, if accompanied by a claim for
reinstatement. If a complaint is filed with the NLRC, and
there is still an existing employer-employee relationship,
the jurisdiction is properly with the DOLE. The findings
of the DOLE, however, may still be questioned through a
petition for certiorari under Rule 65 of the Rules of
Court.
WORK RELATIONSHIP STILL EXISTING
For RD to exercise enforcement power under Art 128[b],
the work relationship between workers and alleged
employers must be existing at the time the complaint is
presented.
Where one of several complainants alleges illegal
dismissal, his allegation deprived the RD of jurisdiction
as the dismissal would fall under the LA jurisdiction. But
the RD retains jurisdiction over his other complainants
and those other complainants about underpayment of
wages and other violations of labor laws, regardless of
amount involved.
SUBJECTS OF ENFORCEMENT
In the cases where the employer contests the findings of
the labor standards and welfare officers and raises
issues which cannot be resolved without considering
evidentiary matters that are not verifiable in the normal
course of inspection, the RD must endorse the case to
the appropriate arbitration branch [LA] of the NLRC for
adjudication.
The visitorial enforcement power is thorough and
piercing; it extends even to issues not formally included
in the complaint.
However, RD is plainly without authority to declare a
law unconstitutional and his duty is merely to enforce a
law which stands valid, unless otherwise declared by SC
to be unconstitutional.
DISPOSITION IN LABOR STANDARD CASES
Labor Standard case – processed administratively under
128-129 of LC. Governed by Rules on Disposition in
Labor Standards Cases [1987]
a. inspection report – Labor Standards and Welfare
Officer [LWSO] shall conduct necessary investigation
and submit report to RD thru Chief of LSED; within 24
hs after investigation or w./in reasonable period
- report specifies violations discovered, if any, and any
recommendation and computation of amount due to
each worker.
b. coverage of complaint inspection –shall not be limited
to the specific allegations but shall be a thorough
inquiry into the verification of the compliance by
employer with existing labor standards and shall cover
all workers similarly situated.
c. restitution – where employer agreed to make the
necessary restitution of violations discovered in the
AKD NOTES |SBCA SOL SY 2015-2016 [2ND SEM] |P . 45
LABOR STANDARDS LAW
course of inspection, such restitution may be effected at
the plant level within 5 days.
d. compromise agreement- should parties arrive at an
agreement as to the whole or part of the dispute, such
arrangement shall be reduced in writing and signed by
the parties in the presence of RD or his duly authorized
representative.
e. hearing – where no proof of compliance is submitted
after 7 days from receipt of the inspection results, RD
shall summon employer and complainants to summary
investigation.
ENFORCEMENT OF WAGE ORDER
Wage Rationalization Act [RA 6727] & IRR – DOLE shall
conduct inspection as often as possible or as necessary,
within its manpower constraint, of the payroll and other
financial records kept by the company or business, to
determine whether the workers are paid the prescribed
wages rates and other benefits granted by law or any
wage order
Penalty for Noncompliance: Double indemnity
RA 6727 specifies penalty for an employer’s refusal or
failure to comply with wage orders – fine of not less
than 25k php nor more than 100k php or imprisonment
of not less than 2 yrs nor more than 4 yrs or both.
Art. 129. Recovery of wages, simple money claims
and other benefits.
GR: Upon complaint of any interested party, the
Regional Director of the Department of Labor and
Employment or any of the duly authorized hearing
officers of the Department is empowered, through
summary proceeding and after due notice, to hear and
decide any matter involving the recovery of wages and
other monetary claims and benefits, including legal
interest, owing to an employee or person employed in
domestic or household service or househelper under
this Code, arising from employer-employee relations:
 That such complaint does not include a claim for
reinstatement:
 That the aggregate money claims of each employee
or househelper does not exceed Five thousand pesos
(P5,000.00).
The Secretary of Labor and Employment [DOLE] or his
duly authorized representative may supervise the
payment of unpaid wages and other monetary claims
and benefits, including legal interest, found owing to
any employee or househelper under this Code. (As
amended by Section 2, Republic Act No. 6715, March 21,
1989)
MONEY CLAIMS ADJUDICATION UNDER ART 129
Art 129 – treats small money claims
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Requisites:
1. claim is presented by an employee, or a person
employed in domestic or household service or
househelper;
2. claim arises from employer-employee relations
3. claimant does not seek reinstatement
4. aggregate money claim of each claimant does not
exceed P5000
In absence of any of above requisites, LA shall have
exclusive original jurisdiction over claims arising from
employer-employee relations, [ claims for employee’s
compensation, social security, medicare and maternity
benefit]
When claim exceeds Php 5k:
- the RD or Hearing Officer shall advise
complainant to amend the complaint if the latter
so desires and file with appropriate legal branch
of NLRC
NATURE OF PROCEEDING
- Shall be summary and non litigious. .
- Subject to requirements of due process, the
technicalities of law, and procedure and rules
governing admissibility and sufficiency of evidence
of the courts of law do not strictly apply thereto.
- RO may avail itself of reasonable means to ascertain
facts of the controversy speedily and objectively,
including ocular inspection and examination of well-
informed persons. Substantial evidence shall be,
whenever necessary, sufficient to support a decision
or order
DUE PROCESS IN ADMINISTRATIVE PROCEEDINGS
- cardinal primary requirements of due process in
administrative proceedings to wit:
[1] the right to a hearing which includes the right to
present one's case and submit evidence in
support thereof;
[2] the tribunal must consider the evidence presented,
[3] the decision must have something to support
itself;
[4] the evidence must be substantial And substantial
evidence means such evidence as a reasonable
mind might accept as adequate to support a
conclusion;
[5] the decision must be based on the evidence
presented at the hearing, or at least contained in
the record and disclosed to the parties affected,
[6] the tribunal or body of any of its judges must act
on its or his own independent consideration of
the law and facts of the controversy, and not
simply accept the views of a subordinate;
[7] the board or body should, in all controversial
questions, render its decisions in such manner
that the parties to the proceeding can know the
various issues involved, and the reason for the
decision rendered.
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LABOR STANDARDS LAW
ART 128 AND 129 COMPARED
1. As to nature and subject of proceedings:
128 - inspection of establishments and the issuance
of orders to compel compliance with labor standards,
wage orders, and other labor laws and regulations;
- enforcement of labor legislation in general
- offshoots of inspections done by labor officers
or safety engineers
129 – adjudication through summary proceeding after
notice of hearing, of employees’ claims for wages and
benefits.
- Limits the proceedings to monetary claims
which therefore involve only labor standards
law
- Initiated by sworn complaints filed by the
interested party.
2. As to workers involved
128 – involves employees still in the service;
129 - applies to present or past employees at the time
the complaint is filed, provided there is no demand for
reinstatement, otherwise LA jurisdiction
3. As to jurisdictional limits
128 – no maximum monetary amount fixed by law for
exercise of enforcement power
129 – money claim per claimant should not exceed
P5000
4. As to officers designated
128 – person exercising visitorial and enforcement
powers is DOLE Secretary or any of his duly authorized
representatives who may or may not be a RD;
129 – vested upon the RD or any duly authorized
hearing officer
5. Regarding appeal -
128 – an order issued is appealable to Sec of DOLE
129 – an order to the NLRC
EMPLOYEES CLAIMS ONLY?
- operative only in the context of employment
relationship. Regular courts have jurisdiction over
claim of an independent contractor to adjust the fee.
- It is well settled in law and jurisprudence that where
no employer-employee relationship exists between
the parties and no issue is involved which may be
resolved by reference to the Labor Code, other labor
statutes or any collective bargaining agreement, it is
the Regional Trial Court that has jurisdiction. In its
complaint, private respondent is not seeking any
relief under the Labor Code but seeks payment of a
sum of money and damages on account of petitioner's
alleged breach of its obligation under their Guard
Service Contract. The action is within the realm of
civil law hence jurisdiction over the case belongs to
the regular courts. While the resolution of the issue
involves the application of labor laws, reference to the
labor code was only for the determination of the
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AZUCENA[2013] SUMMARY
solidary liability of the petitioner to the respondent
where no employer-employee relation exists.[21]
TITLE III: Working Conditions for Special Groups of
Employees
***REPUBLIC ACT NO. 10151 - AN ACT ALLOWING THE
EMPLOYMENT OF NIGHT WORKERS, THEREBY
REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL
DECREE NUMBER FOUR HUNDRED FORTY-TWO, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE
OF THE PHILIPPINES
CHAPTER I: Employment of Women
ARTICLE 130. [132] Facilities for Women. — The
Secretary of Labor and Employment shall establish
standards that will ensure the safety and health of
women employees. In appropriate cases, he shall, by
regulations, require any employer to:
(a) Provide seats proper for women and permit them to
use such seats when they are free from work and during
working hours, provided they can perform their duties
in this position without detriment to efficiency;
(b) To establish separate toilet rooms and lavatories for
men and women and provide at least a dressing room
for women;
(c) To establish a nursery in a workplace for the benefit
of the women employees therein; and
(d) To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the
like.
ARTICLE 131. [133] Maternity Leave Benefits. — (a)
Every employer shall grant to any pregnant woman
employee who has rendered an aggregate service of at
least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) weeks prior to the
expected date of delivery and another four (4) weeks
after normal delivery or abortion with full pay based on
her regular or average weekly wages. The employer
may require from any woman employee applying for
maternity leave the production of a medical certificate
stating that delivery will probably take place within two
weeks.
(b) The maternity leave shall be extended without pay
on account of illness medically certified to arise out of
the pregnancy, delivery, abortion or miscarriage, which
renders the woman unfit for work, unless she has
earned unused leave credits from which such extended
leave may be charged.
(c) The maternity leave provided in this Article shall be
paid by the employer only for the first four (4)
AKD NOTES |SBCA SOL SY 2015-2016 [2ND SEM] |P . 47
LABOR STANDARDS LAW
deliveries by a woman employee after the effectivity of
this Code.
SSS MATERNITY LEAVE BENEFIT
"SECTION 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 caesarean 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.
| (REPUBLIC ACT NO. 8282, [May 1, 1997])
REPUBLIC ACT NO. 9710 – 2 MONTHS LEAVE UNDER
MAGNA CARTA FOR WOMEN
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.||| (An Act
Providing for the Magna Carta of Women, REPUBLIC
ACT NO. 9710, [August 14, 2009])
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AZUCENA[2013] SUMMARY
Anti-Violence Against Women and their Children Act
of 2004, REPUBLIC ACT NO. 9262
SECTION 43. Entitlement 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.
ARTICLE 132. [134] Family Planning Services;
Incentives for Family Planning. —
(a) Establishments which are required by law to
maintain a clinic or infirmary shall provide free family
planning services to their employees which shall
include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices.
(b) In coordination with other agencies of the
government engaged in the promotion of family
planning, the Department of Labor and Employment
shall develop and prescribe incentive bonus schemes to
encourage family planning among female workers in
any establishment or enterprise.
ARTICLE 133. [135] Discrimination Prohibited. — It
shall be unlawful for any employer to discriminate
against any woman employee with respect to terms and
conditions of employment solely on account of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employee as against a male
employee, for work of equal value; and
(b) Favoring a male employee over a female employee
with respect to promotion, training opportunities, study
and scholarship grants solely on account of their sexes.
Criminal liability for the willful commission of any
unlawful act as provided in this article or any violation
of the rules and regulations issued pursuant to Section 2
hereof 95 shall be penalized as provided in Articles 288
and 289 of this Code: Provided, That the institution of
any criminal action under this provision shall not bar
the aggrieved employee from filing an entirely separate
and distinct action for money claims, which may include
claims for damages and other affirmative reliefs. The
actions hereby authorized shall proceed independently
of each other.
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LABOR STANDARDS LAW
 Bona fide occupational qualification
We note that since the finding of a bona fide
occupational qualification justifies an employers no-
spouse rule, the exception is interpreted strictly and
narrowly by these state courts. There must be a
compelling business necessity for which no alternative
exists other than the discriminatory practice. To justify
a bona fide occupational qualification, the employer
must prove two factors: (1) that the employment
qualification is reasonably related to the essential
operation of the job involved; and, (2) that there is a
factual basis for believing that all or substantially all
persons meeting the qualification would be unable to
properly perform the duties of the job.
The concept of a bona fide occupational qualification is
not foreign in our jurisdiction. We employ the standard
of reasonableness of the company policy which is
parallel to the bona fide occupational qualification
requirement.
Women as equal partner
Women in Development and Nation Building. Act RA
NO. 7192, [February 12, 1992]
SECTION 2. Declaration of Policy. — The State
recognizes the role of women in nation building and
shall ensure the fundamental equality before the law of
women and men. The State shall provide women rights
and opportunities equal to that of men.
To attain the foregoing policy:
(1) A substantial portion of official development
assistance funds received from foreign governments
and multilateral agencies and organizations shall be set
aside and utilized by the agencies concerned to support
programs and activities for women;
(2) All government departments shall ensure that
women benefit equally and participate directly in the
development programs and projects of said department,
specifically those funded under official foreign
development assistance, to ensure the full participation
and involvement of women in the development process;
and
(3) All government departments and agencies shall
review and revise all their regulations, circulars,
issuances and procedures to remove gender bias
therein. cd
ARTICLE 134. [136] Stipulation against Marriage. —
It shall be unlawful for an employer to require as a
condition of employment or continuation of
employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed
resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee
merely by reason of her marriage.
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NONDISCRIMINATION: POLICY AGAINST MARRIED
STATUS [CASES]
ZIALCITA V. PAL
Complainant Zialcita, an international flight stewardess
of PAL, was discharged from the service on account of
her marriage. In separating Zialcita, PAL invoked its
policy which stated that flight attendants must be single,
and shall be automatically separated from employment
in the event they subsequently get married. They
claimed that this policy was in accordance with Article
132 of the Labor Code. On the other hand, Zialcita
questioned her termination on account of her marriage,
invoking Article 136 of the same law.
SC RULING: Although Article 132 enjoins the Secretary
of Labor to establish standards that will ensure the
safety and health of women employees and in
appropriate cases shall by regulation require employers
to determine appropriate minimum standards for
termination in special occupations, such as those of
flight attendants, it is logical to presume that, in the
absence of said standards or regulations which are yet
to be established, the policy of PAL against marriage is
patently illegal.
Article 136 is not intended to apply only to women
employed in ordinary occupations, or it should have
categorically expressed so. The sweeping intendment of
the law, be it on special or ordinary occupations, is
reflected in the whole text and supported by Article 135
that speaks of non-discrimination on the employment of
women
STAR PAPER CORPORATION v. SIMBOL
It is true that the policy of petitioners prohibiting close
relatives from working in the same company takes the
nature of an anti-nepotism employment policy.
Companies adopt these policies to prevent the hiring of
unqualified persons based on their status as a relative,
rather than upon their ability. These policies focus upon
the potential employment problems arising from the
perception of favoritism exhibited towards relatives
TWO TYPES OF EMPLOYMENT POLICIES INVOLVE
SPOUSES: 1. policies banning only spouses from
working in the same company (no-spouse employment
policies),
2. those banning all immediate family members,
including spouses, from working in the same company
(anti-nepotism employment policies).
TWO THEORIES OF EMPLOYMENT DISCRIMINATION:
the disparate treatment and the disparate impact.
Under the disparate treatment analysis - an
employment policy is discriminatory on its face. No-
spouse employment policies requiring an employee of a
particular sex to either quit, transfer, or be fired are
facially discriminatory. For example, an employment
policy prohibiting the employer from hiring wives of
AKD NOTES |SBCA SOL SY 2015-2016 [2ND SEM] |P . 49
LABOR STANDARDS LAW
male employees, but not husbands of female employees,
is discriminatory on its face.
On the other hand, to establish disparate impact - a
facially neutral policy has a disproportionate effect on a
particular class. For example, although most
employment policies do not expressly indicate which
spouse will be required to transfer or leave the
company, the policy often disproportionately affects one
sex.
The no-spouse employment policy invalid for failure of
the employer to present any evidence of business
necessity other than the general perception that
spouses in the same workplace might adversely affect
the business.
[A] requirement that a woman employee must
remain unmarried could be justified as a "bona fide
occupational qualification," or BFOQ, where the
particular requirements of the job would justify the
same, but not on the ground of a general principle,
such as the desirability of spreading work in the
workplace. A requirement of that nature would be
valid provided it reflects an inherent quality
reasonably necessary for satisfactory job
performance.
ARTICLE 135. [137] Prohibited Acts. — It shall be
unlawful for any employer:
(1) To deny any woman employee the benefits provided
for in this Chapter or to discharge any woman employed
by him for the purpose of preventing her from enjoying
any of the benefits provided under this Code;
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to
her pregnancy;
(3) To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again
be pregnant.
ARTICLE 136. [138] Classification of Certain Women
Workers. — Any woman who is permitted or suffered
to work, with or without compensation, in any night
club, cocktail lounge, massage clinic, bar or similar
establishments under the effective control or
supervision of the employer for a substantial period of
time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of
such establishment for purposes of labor and social
legislation.
Republic Act 7877 - Anti-Sexual Harassment Act of
1995
- covers only the superiors in a work, education or
training-related environment.
(a) In a work-related or employment environment,
sexual harassment is committed when:
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(1) The sexual favor is made as a condition in the
hiring or in the employment, re-employment or
continued employment of said individual, or in
granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting,
segregating or classifying the employee which in any
way would discriminate, deprive or diminish
employment opportunities or otherwise adversely
affect said employee;
2) The above acts would impair the employee’s rights
or privileges under existing labor laws; or
(3) The above acts would result in an intimidating,
hostile, or offensive environment for the employee.
(b) In an education or training environment, sexual
harassment is committed:
(1) Against one who is under the care, custody or
supervision of the offender;
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the
offender;
(3) When the sexual favor is made a condition to the
giving of a passing grade, or the granting of honors
and scholarships, or the payment of a stipend,
allowance or other benefits, privileges or
considerations; or
(4) When the sexual advances result in an
intimidating, hostile or offensive environment for the
student, trainee or apprentice.
Sexual harassment is committed by an employer,
employee, manager, supervisor, agent of the employer,
teacher, instructor, professor, coach, trainor, or any
other person who, having authority, influence or moral
ascendancy over another in a work or training or
education environment, demands, requests or
otherwise requires any sexual favor from the other,
regardless of whether the demand, request or
requirement for submission is accepted by the object of
the act.
CHAPTER II : Employment of Minors
ARTICLE 137. [139] Minimum Employable Age.—
(a) No child below fifteen (15) years of age shall be
employed, except when he works directly under the sole
responsibility of his parents or guardian, and his
employment does not in any way interfere with his
schooling.
(b) Any person between fifteen (15) and eighteen (18)
years of age may be employed for such number of hours
and such periods of the day as determined by the
Secretary of Labor and Employment in appropriate
regulations.
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LABOR STANDARDS LAW
(c) The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years of
age in an undertaking which is hazardous or deleterious
in nature as determined by the Secretary of Labor and
Employment.
ARTICLE 138. [140] Prohibition against Child
Discrimination. — No employer shall discriminate
against any person in respect to terms and conditions of
employment on account of his age.
Hazardous Work – IRR; Following are considered
hazardous work:
SECTION 8. Hazardous work places. — The Bureau of
Working Conditions, shall, with the approval of the
Secretary of Labor and Employment, issue from time to
time a detailed list of hazardous work places for
purposes of this Rule, in addition to the following:
(a) Where the nature of the work exposes the workers
to dangerous environmental elements,
contaminations or work conditions including
ionizing radiations, chemicals, fire, flammable
substances, noxious components and the like.
(b) Where the workers are engaged in construction
work, logging, fire-fighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing
and mechanized farming.
(c) Where the workers are engaged in the manufacture
or handling of explosives and other pyrotechnic
products.
(d) Where the workers use or are exposed to heavy or
power-driven machinery or equipment.
(e) Where the workers use or are exposed to power-
driven tools.
CHILD ABUSE AND CHILD LABOR
RA 7658 ; RA 9231 –
Sec. 2. Employment of Children - Children below fifteen
(15) years of age shall not be employed except:
"1) When a child works directly under the sole
responsibility of his/her parents or legal guardian and
where only members of his/her family are employed:
Provided, however, That his/her employment neither
endangers his/her life, safety, health, and morals, nor
impairs his/her normal development: Provided, further,
That the parent or legal guardian shall provide the said
child with the prescribed primary and/or secondary
education;
Another XPN: where a child’s employment or
participation in public entertainment or information
through cinema, theater, radio, tv, or other forms of
media is essential.
CHAPTER III : Employment of Househelpers
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ARTICLE 139. [141] Coverage. — This Chapter shall
apply to all persons rendering services in households
for compensation.
"Domestic or household service" shall mean service in
the employer's home which is usually necessary or
desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and
convenience of the members of the employer's
household, including services of family drivers.
ARTICLE 140. [142] Contract of Domestic Service. —
The original contract of domestic service shall not last
for more than two (2) years but it may be renewed for
such periods as may be agreed upon by the parties.
ARTICLE 141. [143] Minimum Wage [amended by
RA 10361]
SEC 24. Minimum Wage. – The minimum wage of
domestic workers shall not be less than the following:
(a) Two thousand five hundred pesos (P2,500.00) a
month for those employed in the National Capital
Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those
employed in chartered cities and first class
municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a
month for those employed in other municipalities.
After one (1) year from the effectivity of this Act, and
periodically thereafter, the Regional Tripartite and
Productivity Wage Boards (RTPWBs) shall review, and
if proper, determine and adjust the minimum wage
rates of domestic workers.
ARTICLE 142. [144] Minimum Cash Wage. — The
minimum wage rates prescribed under this Chapter
shall be the basic cash wages which shall be paid to the
househelpers in addition to lodging, food and medical
attendance.
ARTICLE 143. [145] Assignment to Non-Household
Work. — No househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed
herein.
ARTICLE 144. [146] Opportunity for Education. — If the
househelper is under the age of eighteen (18) years, the
employer shall give him or her an opportunity for at
least elementary education. The cost of education shall
be part of the househelper's compensation, unless there
is a stipulation to the contrary.
ARTICLE 145. [147] Treatment of Househelpers. — The
employer shall treat the househelper in a just and
humane manner. In no case shall physical violence be
used upon the househelper.
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ARTICLE 146. [148] Board, Lodging, and Medical
Attendance. 106 — The employer shall furnish the
househelper, free of charge, suitable and sanitary living
quarters as well as adequate food and medical
attendance.
ARTICLE 147. [149] Indemnity for Unjust Termination
of Services. 107 — If the period of household service is
fixed, neither the employer nor the househelper may
terminate the contract before the expiration of the term,
except for a just cause. If the househelper is unjustly
dismissed, he or she shall be paid the compensation
already earned plus that for fifteen (15) days by way of
indemnity.
If the househelper leaves without justifiable reason, he
or she shall forfeit any unpaid salary due him or her not
exceeding fifteen (15) days.
ARTICLE 148. [150] Service of Termination Notice. 108
— If the duration of the household service is not
determined either in stipulation or by the nature of the
service, the employer or the househelper may give
notice to put an end to the relationship five (5) days
before the intended termination of the service. HSCATc
ARTICLE 149. [151] Employment Certification. 109 —
Upon the severance of the household service relation,
the employer shall give the househelper a written
statement of the nature and duration of the service and
his or her efficiency and conduct as househelper.
ARTICLE 150. [152] Employment Record. — The
employer may keep such records as he may deem
necessary to reflect the actual terms and conditions of
employment of his househelper, which the latter shall
authenticate by signature or thumbmark upon request
of the employer.
Case ON ART. 141: APEX MINING CO, V. NLRC
Under Rule XIII, Section l(b), Book 3 of the Labor Code,
as amended, the terms "househelper" or "domestic
servant" are defined as follows:
The term "househelper" as used herein is synonymous
to the term "domestic servant" and shall refer to any
person, whether male or female, who renders services
in and about the employer's home and which services
are usually necessary or desirable for the maintenance
and enjoyment thereof, and ministers exclusively to the
personal comfort and enjoyment of the employer's
family.
The definition cannot be interpreted to include
househelp or laundrywomen working in staffhouses of a
company like petitioner who attends to the needs of the
company's guest and other persons availing of said
facilities. By the same token, it cannot be considered to
extend to then driver, houseboy, or gardener exclusively
working in the company, the staffhouses and its
premises. They may not be considered as within the
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AZUCENA[2013] SUMMARY
meaning of a "househelper" or "domestic servant" as
above-defined by law.
The criteria is the personal comfort and enjoyment of
the family of the employer in the home of said employer.
While it may be true that the nature of the work of a
househelper, domestic servant or laundrywoman in a
home or in a company staffhouse may be similar in
nature, the difference in their circumstances is that in
the former instance they are actually serving the family
while in the latter case, whether it is a corporation or a
single proprietorship engaged in business or industry or
any other agricultural or similar pursuit, service is being
rendered in the staffhouses or within the premises of
the business of the employer. In such instance, they are
employees of the company or employer in the business
concerned entitled to the privileges of a regular
employee.
Home Development Mutual Fund Law of 2009 [RA
9679]
BEGINNING January 1, 2010, membership in Pag-IBIG
Fund is already required to all employees compulsorily
covered by the Social Security System (SSS), regardless
of employment status, as provided by Republic Act
9679.
- further obliges previously waived companies to
register their employees, upon expiration of their
waiver of coverage.
- Pag-IBIG Fund membership shall also apply to all
employees compulsorily covered by the Government
Service Insurance System (GSIS), including uniformed
personnel of Armed Forces of the Philippines (AFP),
Philippine National Police (PNP), Bureau of Jail
Management and Penology (BJMP), and Bureau of Fire
Protection (BFP).
- Foreign-based employers must also register their
Filipino employees as required by the law.
The membership of the mandatorily covered employees
should take effect upon the date of employment.
However, actual membership in the Fund shall
commence only upon remittance of the initial
contribution and not at point of registration.To date, the
monthly contribution rates shall be as follows: for those
with monthly compensation of P1,500.00 or less the
employee share is 1% while the employer share is 2%.
For those earning monthly compensation of more than
P1,500.00 employee share is 2% and employer share is
2%.
A member may be allowed to contribute more than the
required rates should he or she so desires.
The employer, however, shall only be mandated to
contribute what is required, unless it agrees to match
the member’s increased contribution.
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LABOR STANDARDS LAW
The employer assumes a fiduciary relationship with the
Fund and the member concerned relative to the
collection and remittance of the member’s contribution,
required employer contribution and loan amortization,
when the payment is made through salary deduction.
An annual dividend of not less than 70% of the Fund’s
net disposable income is added proportionately to the
members’ savings. The member’s earned dividend will
be credited to his or her Total Accumulated Value
(TAV). The TAV comprises of the member’s personal
contributions, employer counterpart and earned
dividends.
The benefits of a Pag-IBIG Fund member shall include
the following:
a) housing;
b) short-term loans and other benefit programs;
c) portability of membership;
d) return of contributions; and
e) death benefits.
The termination of Pag-IBIG Fund membership shall be
upon the occurrence of any of the following, provided
that the member’s financial obligations with the Fund
are first fully settled, except in case of death of the
member:
a) membership term maturity;
b) death;
c) retirement;
d) permanent total disability or insanity;
e) permanent departure from the country;
f) termination of service by reason of health; and
g) other causes as may be approved by the Board.
2014 Handbook on Workers’ Statutory Monetary
Benefits [Q&A]
I. WAGES
1. How much is the minimum wage in Metro Manila?
P446.00 (Basic Wage P426.00 + COLA P20.00) is the
current minimum wage in National Capital Region
(NCR) including Metro Manila under Wage Order NCR-
17 which took effect on June 03, 2012 and P456.00
(additional P10.00 COLA) effective November 1, 2012.
2. Where can we find the current minimum wages in the
different regions?
Regional Tripartite Wages and Productivity Board
(RTWPB) which has jurisdiction over the workplace.
3. Who are covered by the wage orders?
All minimum wage earners in the private sector are
covered by wage orders, regardless of their position,
designation or status of employment and irrespective of
the method by which their wages are paid.
4. Who are excluded from the coverage of the minimum
wage law?
a) Household or domestic helpers;
b) Persons employed in the personal service of another;
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c) Workers of registered Barangay Micro Business
Establishments (BMBEs)
5. What is the basis for computing the minimum wage?
It is based on the normal working hours which shall not
exceed eight (8) hours of work a day.
6. What is the basis for entitlement to COLA?
The basis for entitlement to COLA is whether or not a
worker is paid the basic pay. Accordingly, a worker who
is not paid the basic pay is not entitled to the COLA.
Are exemptions from wage orders allowed?
Yes, provided that the wage order expressly provides
for exemption. The following exemptible categories:
(NWPC Amended Rules on Exemption)
a) Distressed establishments;
b) New Business Enterprise;
c) Retail/Service establishments regularly employing
not more than ten (10) workers; and
d) Establishments adversely affected by natural
calamities.
11. What is the maximum duration of exemption?
One (1) year from effectivity of the wage order
12. What is the application of wage orders to
contractors?
Increase shall be borne by the principals or clients
Contract is deemed amended
13. What is the application of wage orders to workers
paid by result?
All workers paid by result, including those who are paid
on piece work, “takay” or task basis, shall be entitled to
receive not less than the prescribed daily minimum
wage or a proportion thereof for working less than eight
(8) hours.
14. Are minimum wage earners exempt from paying
income tax?
Yes, minimum wage earners shall be exempt from
payment of income tax. (Sec. 2(2) of RA 9504 National
Internal Revenue Code)
15. What are the elements of wage distortion?
1. Severe contraction by more than 50%;
2. Existing hierarchy of position with
corresponding salary rates;
3. A significant change in the salary rates of a
lower pay class without a concomitant increase
in the salary rate of a higher one;
4. The eliminations of the distinction between pay
of 2 workers; and
5. The existence of the distinction in the same
region.
16. What are the procedures to correct wage distortion?
– For organized firms:
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LABOR STANDARDS LAW
Employer and union negotiate through grievance
procedure in the CBA
If unresolved, through voluntary arbitration
– For unorganized firms:
Employer and workers negotiate
Dispute settled through the NCMB
If unresolved, through compulsory arbitration at the
NLRC
17. What are the leave benefits that an employee is
entitled to under existing laws?
 5 days service incentive leave with pay for
employee who has rendered at least 1 year of service.
(Article 95 of the Labor Code, as amended)
 Maternity Leave of 60 days for normal delivery and
78 days for caesarian section delivery for every
pregnant employee in the private sector, whether
married or unmarried. A female employee should be
an SSS member and must have paid at least 3
monthly contributions within the 12-month period.
(RA 1161, as amended by RA 8282)
 7 days Paternity Leave for all married male
employees in the private sector regardless of status
of employment. The purpose of this benefit is to
allow the husband to lend support to his wife during
her period of recovery and/or in nursing her
newborn child. (RA 8187)
Conditions for entitlement:
1. He is an employee at the time of the delivery of
his child;
2. He is cohabiting with his spouse at the time that
she gives birth or suffers a miscarriage;
3. He has applied for paternity leave with his
employer within a reasonable period of time;
and
4. His wife has given birth or suffered a
miscarriage.
 (RA 8972)7 days Solo Parent Leave is granted to a
solo parent to enable him/her to perform parental
duties and responsibilities where physical presence
is required.
Conditions for entitlement:
1. He/she has rendered at least 1 year of service,
whether continuous or broken;
2. He/she has notified his/her employer that
he/she will avail himself/herself of it, within a
reasonable period of time; and
3. He/she has presented to his/her employer a
Solo Parent Identification Card, which may be
obtained from the DSWD office of the city or
municipality where he/she resides.
 10 days Leave for Victims of Violence Against
Women and their Children (VAWC) is granted to
women employees who are victims of physical,
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sexual, psychological harm or suffering, or economic
abuse. The leave benefit shall cover the days that the
woman employee has to attend to medical and legal
concerns.
Conditions for entitlement:
1. The victim woman employee should present to
her employer a certification from the barangay
chairman (Punong Barangay) or barangay
councilor (barangay kagawad) or prosecutor or
the Clerk of Court that an action relative to the
matter is pending.
 Special Leave for Women of 2 months with full
pay who have rendered continuous aggregate
employment service of 6 months for the last 12
months, following surgery caused by gynecological
disorders. (RA 9710)
What is the Employees’ Compensation Program?
The Employees’ Compensation Program (ECP) is the
benefit package for public and private sector employees
and their dependents in the event of work-related
sickness, injuries or death.
Who are covered under the ECP?
Employees belonging to both the public and private
sectors are compulsorily covered under the ECP.
When shall coverage of employees under the ECP
start?
Employees shall be covered starting on the first day of
their employment.
What are the administering agencies of the ECP?
The administering agencies of the ECP are:
The Government Service Insurance System (GSIS) for
the public sector, andThe Social Security System (SSS),
for the private sector.
Are Filipinos employed abroad covered under the
ECP?
No. Only Filipino seamen compulsorily covered under
the SSS are covered under the ECP.
Landbased contract workers are covered only if their
employer is engaged in trade or business undertaking in
the Philippines.
What contingencies are compensable under the
ECP?
Any work-connected injury or sickness which resulted
to disability or death shall be compensable under the
ECP.
What are the forms of compensation for injury,
sickness, disability and death?
Cash income benefit – for disability or death;
Medical and related services – for injury or sickness;
Rehabilitation services (in addition to monthly cash
income benefit) for temporary and permanent disability.
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When is the injury compensable?

An injury is compensable when it was sustained due to
an accident arising out of or in the course of
employment.

When is sickness compensable?

Any sickness is compensable when it is listed by the ECC
as an “occupational disease”.

Can an illness not listed as an “occupational disease”

be considered compensable?
Yes, if proof is shown that the risk of contracting the
sickness was increased by the working conditions.

When shall EC claims be filed?

Claims for EC benefits must be filed with the GSIS or the
SSS, as the case may be, within three years from the
time of cause of action occurred (loss of earning
capacity/separation from the service due to work-
related sickness or injury).

Where are EC claims filed?

All EC claims may be filed by the claimant at his option
in the Regional Office/Branch of the System (GSIS/SSS)
nearest to the place of work or residence.

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LABOR STANDARDS LAW AZUCENA[2013] SUMMARY

REPUBLIC ACT NO. 8291 – GSIS LAW vis a vis SSS LAW

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LABOR STANDARDS LAW AZUCENA[2013] SUMMARY

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LABOR STANDARDS LAW AZUCENA[2013] SUMMARY

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UIOGD

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