LABOR REVIEW – MIDTERMS REVIEWER  enterprises to reasonable returns and

investments and to expansion and growth.

I. EER AS BASIS OF LABOR COURT’S
JURISDICTION TO HEAR AND DECIDE
LABOR DISPUTES Civil Code

Four-Fold Test III. LABOR STANDARDS

(1) Selection and engagement of EE

(2) Payment of wage and salaries
Scope
(3) Exercise of power of dismissal
Conditions of Et
(4) Exercise of power to control EE’s conduct –
Work Hours
whether ER reserved the right to control EE
not only as to result of work but also as to
the means and methods by which it is to be Wage vs.Salary
accomplished
Payment of Wages
II. GENERAL LABOR POLICY
Facilities vs.
Supplements
Constitution Wages
Non-diminution of
benefits
Art. XIII, Sec. 3
State shall: Prohibitions
regarding wages
 afford full protection to labor, local and
overseas, organized and unorganized Wage order, Wage
distortion
 promote full employment and equality of
employment opportunities for all. SIL

State shall guarantee right of workers to: Maternity Leave

 self-organization
 collective bargaining and negotiations Leaves Paternity Leave
 peaceful concerted activities including the
right to strike in accordance with law Parental Leave for
 security of tenure Solo Parents
 humane conditions of work Special Leaves for
 living wage Women Workers
 (participation) in policy and decision-making
Women
processes affecting their rights as may be
provided by law
Minors
State shall:
 promote the principle of shared responsibility Special Groups Kasambahay
between workers and employers and the
preferential use of voluntary modes in Homeworkers
settling disputes
 enforce their mutual compliance therewith to Night workers
foster industrial peace
Arts. 82-90, LC
State shall regulate the relations between workers
and employers, recognizing the right of:
82 Coverage1; Exclusions
 labor to its just share in the fruits of EEs in all establishments, WON for profit except:
production
 Gov’t EEs
 MEs – (a) whose primary duty is management
of establishment/department/subdivision
they’re employed in; (b) other
officers/members of Managerial Staff
 Officers/Members of MS
 Domestic servants/persons in another’s
personal service
- Workers paid by results - those engaged on
task/contract/purely commission basis; paid
a fixed amt for performing work irrespective
of time consumed in performance
 Non-agricultural field personnel – non-
agricultural EEs (a) who regularly perform
duties away from principal place of business
and (b) whose actual hours of work in the
field cannot be determined with reasonable
certainty
 ER’s family members dependent for support
83 Normal Hours of Work
not more than 8 hours
IF health personnel in (a) cities/municipalities
with min. 1M population; or (b) hospitals/clinics
with min. 100 bed capacity – 8 hours/5 days a
week exclusive of mealtime unless exigency
requires 6 days/48 hours. On 6th day, they’re
entitled to additional 30% compensation.
84 Hours worked
All time during which an EE is:
 required to be (a) on duty or (b) at ER’s
premises/prescribed workplace
 suffered/permitted to work
rest periods of short duration counted as HW
85 Meal periods
at least 60 minutes
86 NSD
at least 10% of regular wage for each hour of
work performed from 10pm-6am
87 OT
add 25%
add 30% IF holiday/rest day
88 Undertime not offset by OT
ER not exempted from paying OT because of
1 Applies to Title I Working Conditions and Rest Periods:
Hours of Work; Weekly Rest Periods; Holidays, SIL, SC
permitting EE to go on leave on another day
89 Emergency OT work
- when country is at war; National Assembly or
Chief Executive declared any other nat’l/local
emergency
- necessary to prevent loss of life/property;
imminent danger to public safety due to
actual/impending emergency in the locality
caused by accidents, fire, flood, typhoon,
earthquake, epidemic, or other disaster or
calamity
- urgent work to be performed on machines,
installations, or equipment, to avoid serious
loss/damage to ER; other cause of similar
nature
- work necessary to prevent loss/damage to
perishable goods
- completion or continuation of work started
before 8th hour is necessary to prevent
serious obstruction/prejudice to ER’s
business/operations
90 Computation of additional compensation
“regular wage” includes cash wage only, without
deduction on account of facilities provided by ER
91 Right to weekly rest period
at least 24 hrs after every 6 consecutive work days
92 When ER may require work on a rest day
- actual/impending emergencies caused by
disaster/calamity to prevent loss of
life/property or imminent danger to public
safety
- urgent work to be performed on machines,
installations, or equipment, to avoid serious
loss/damage to ER; other cause of similar
nature
- abnormal pressure of work due to special
circumstances, where ER cannot be expected
to resort to other measures
- work necessary to prevent loss/damage to
perishable goods
- nature of work requires continuous
operations and stoppage of work will result
in irreparable injury/loss to ER
- analogous circumstances as determined by
SOLE
93 Premium pay - compensation for rest day,
Sunday or holiday work
add 30%, if rest day/Sunday which is established
RD/ holiday
add 50% if special holiday falls on rest day communication expense, other incidental
expense, excludes advances/loans by KB;
recoverable if KB leaves within 6 months from
employment without justifiable reason
Kasambahay (Chan Outline)
‘ F. Pre-Employment Req’t
Kasambahay Law Required from KB prior to execution of
employment contract:
A. Express repeal of LC provisions - Medical certificate/health certificate issued
Domestic Workers Act (18 Jan 2013) repealed Art by local gov’t health officer
141-152 - Bgy and police clearance
- NBI clearance
B. Coverage - Birth certificate duly authenticated/any other
Any person engaged in domestic work (work document showing KB’s age (voter’s ID,
performed in/for a household) passport, baptismal record)
Within an employment relationship
Whether on a live-in/live-out arrangement Standard requirements when PEA facilitates KB’s
- General househelp employment
- Yaya Borne by prospective ER or PEA, as case may be
- Cook
- Gardener G. Written Employment Contract
- Laundry person Must be in writing and should contain conditions
- Any person who regularly performs domestic set by law
work in one household on an occupational
basis Contents:
- Duties/responsibilities
C. Exclusions - Period of Et
- Service providers - Compensation
- Family drivers - Authorized Deductions
- Children under foster family arrangement - Hours of Work and Proportionate Addt’l
- Any other person who performs occasionally payment
or sporadically, but not an occupational basis - Rest days/allowable leaves
- Board, lodging, medical attention
D. (Definitions) - Agreements on DE
- Loan agreement
E. Hiring of KB - Termination
Mode of Hiring – directly/indirectly through - Any other lawful condition
licensed Private Employment Agency
(individual/partnership/corporation/entity Read and explained to both parties/witnessed by
licenses by PEA fore recruitment/placement of KB PB/designated officer upon request
for local employment)
(Standard EC)
Cost of Hiring- shouldered by ER whether hired
through PEA Distribution of Copies - To KB and Office of PB
where ER resides
Recruitment and Finder’s Fees (charges collected
by PEA from KB for his R&P) cannot be charged Renewal – new contract to be registered with bgy.
against KB IF none, terms and conditions deemed renewed

Deployment Expenses – paid by ER; expenses KBs cannot acquire regularity of employment -
directly used for KB’s transfer from place of origin becasuse KB have fixed-term Et; No probationary
to place of work, covering transportation, meals, Et; Not covered by Art. 280 (regular Et); Not
entitled to reinstatement/backwages, only to
compensation earned + 15 days salary as
indemnity
H. Rights and Privileges of KB
- Min. wage
- Mandatory benefits (daily/weekly rest pds,
SIL, 13th month pay)
- Non-interference in disposal of wages
- SSS, Philhealth, Pag-IBIG coverage
- Standard of treatment
- Board, lodging, medical attendance
- Right to privacy
- Access to outside communication
- Access to education and training
- Rt to form, joint, assist Labor org
- Rt to copy of Et contract
- Rt to cert of Et
- Rt to terminate Et
- Rt to exercise religious beliefs/cultural
practices
I. Minimum Wage
(Amount)
Payment -
Directly to KB in cash at least monthly
No deductions other than that allowed by law
(SSS/PH/PI); allowed for loss/damage only if:
- KB clearly responsible for L/D
- KB given reasonable opportunity to show
why deduction should not bemade
- Reasonable amt not exceeding actua L/D
- Not more than 20% of monthly wage
Non-interference in disposal of wages –
forcing/compelling/obliging KB to purchase
commodities from ER; making use of ER’s
store/service
Prohibition against withholding of wages – if KB
leaves w/o justifiable reason, unpaid salary for
max. 15 days forfeited
J. Terms and Conditions
Employable age – min. 15 yrs old
Normal daily hours of work – 16 (deduced from
daily 8 hr rest pd), 8 if below 18
13th month pay – KB with min. 1 month service;
not less than (1/12) of total salary earned in
calendar yr paid not later than Dec 24 or upon
separation
Weekly rest pd – 24 hr consecutive rest weekly
SIL- min. 1 yr of service; unused leave not
cumulative or carried over to succeeding years
nor convertible to cash
Social Security Benefits – min. 1 month service;
shouldered by ER unless KB’s monthly wage is
min. 5000
K. Other Terms and Conditions
(Standard of treatment)
Board, lodging, medical attendance – 3 meals/day,
humane sleeping condition, appropriate rest and
medical assistance
(Guarantee of privacy)
(Access to outside communication)
(Prohibition against privileged information)
(Opportunities for education and training)
(Membership in Labor Org)
(Health and Safety)
(Prohibition on debt bondage)
Assignment to non-household work – ER shall not
assign KB to work, full-time or part-time, in a
commercial/industrial/agricultural enterprise at a
wage rate lower than for agricultural/non-
agricultural workers
Apex Mining Company vs. NLRC: that househelper
works within premises of ER’s business and in
relation to/connection with its business warrants
conclusion that househelper is a regular EE
Remington Industrial Industries vs. Castaneda:
That Rt works within company premises and does
not cater exclusively to Pr’s personal comfort
reflects Pr’s right of control over her functions.
Extent of duty outside household – KB and ER can
agree to temporarily perform task for benefit of
another household, provided:
- Agreement on tasks to be performed
between KB and ER
- KB entitled to additional payment not less
than min. wage
- ER responsible for liability incurred by KB on
account of such arrangement
- ER is not charging any amt from other
household for the arrangement
Max. 30 days per assignment
Original Er and other household solidarily liable
for non-payment of wages
L. Standards for Employment of Working
Children
(working children)
(gen prohibition)
(benefits)
Et of working children – they cannot work: past 8
hrs/day and 40 hrs/week; from 10 pm-6 am;
engage in work hazardous/harmful
health/safety/morals
M. Termination of Kasambahay
Pre-termination – if duration specified, ER and KB
can agree upon notice to terminate before term
expires; IF not, ER/KB can give notice 5 days
before intended termination
Initiated by KB -
- Verbal/emotional abuse
- Inhuman treatment
- Commission of crime/offense by Er
- Violation of Et contract
- Disease prejudicial to health of KB/Er
- Analogous causes
Initiated by ER
- Misconduct/willful disobedience of lawful
order in connection with KB’s work
- Gross/habitual neglect/KB’s inefficiency
- Fraud/willful breach of trust
- Commission of crime/offense
- Violation of Et conract
- Disease prejudicial to health of KB/Er
- Analogous
IF no just cause, pay earned compensation + 15
days salary
(Invalid ground for termination)
Et certification – Er shall issue ceritificate upon
termination of Et, within 5 days from request
(nature/duration/description of work)
Management Prerogatives (Chan Outline)
1. Rt of Er to regulate all aspects of Et
San Miguel Brewery Sales Force Union vs. Ople:
Except as limited by special laws, Er is free to
regulate, according to his own discretion and
judgment, all aspects of Et, including
Hiring
work assignments
working methods
time, place and manner of work
tools to be used
processes to be followed
supervision of workers
working regulations
to transfer of EEs
work supervision
lay-off of workers and the
discipline, dismissal and recall of work
Sime Darby Pilipinas vs. NLRC: Mgt retains
prerogative, whenever exigencies of the service so
require, to change the working hours of its EEs. So
long as such prerogative is:
- exercised in GF for the advancement of the ER’s
interest; and
- not for the purpose of defeating or circumventing
EEs rights under special laws or valid agreements.
2. Limitations on exercise of Mgt Prerogatives
A. Discipline
1. Components
2. Rt to Discipline
3. Rt to Dismiss
4. Rt to determine who to punish
5. Rt to prescribe company rules and
regulations/code of discipline
6. Rt to impose penalty; proportionality rule
7. Rt to choose which penalty to impose
8. Rt to impose heavier penalty than what
company rules prescribe
B. Transfer of EEs
1. Concept
2. Some principles on prerogative to transfer
EEs
 3. Prerogative to reorganize
4. Prerogative to promote
5. Prerogative to demote
C. Productivity Standard
1. Concept
2. DOLE to establish standard output rates
3. Standard output rates or piece rates; how
determined
4. Time and motion studies
5. Allowed time; meaning
6. Base rate; meaning
7. Output rates in work paid by results; effect
if determined by Er or DOLE
D. Bonus
1. GR: not demandable or enforceable
2. When demandable or enforceable
3. Forfeiture of bonus
E. Change of Working hours
1. Prerogative to change working hours
2. Illustrative cases
F. Marriage bet EEs of Competitor Ers
1. Prerogative to prescribe rule on marriage
2. Rule against marriage, when valid
3. Rule against marriage, when not valid
4. Reasonable business necessity rule as
applied to prohibition against marriage
policy
G. Post-Employment Ban
1. Right to impose post-employment
prohibitions
a. Non-compete clause
b. PH jurisprudence on non-compete
clause
c. Illustrative case
2. Other post-employment prohibitions
a. Confidentiality and non-disclosure
CWW
DOLE Department Order No. 02, Series of 2004
DOLE Department Advisory No. 02, Series of
2009
A. Definition under D.A. No. 2, Series of 2009 –
workday is increased to more than 8 hours
not exceeding 12 hours, without OT
B. CWW, a kind of flexible work arrangement
C. Other forms of flexible work arrangements
D. Conditions
- result of express and voluntary agreement of
majority of covered EEs or DARs
- IF firm using substances, chemicals,
processes, or operates under conditions
where there are airborne contaminants,
human carcinogens or noise prolonged
exposure which poses hazards to EE’s health
and safety, certification from health/safety
organization or safety committee that work
beyond 8 hrs is within threshold limits or
tolerable limits of exposure
- Notice to DOLE of adoption of CWW scheme
E. Effects
- Work beyond 8 hrs not compensable by OT
- Meal period of at least 60 min
- No diminution of existing benefits
Waiting Time
Considered working time if waiting is an integral part
of his work or EE is required or engaged by Er to wait
1. When waiting time compensable
Arica vs. NLRC: 30-minute assembly time not
compensable. If time spent is primarily not for the
benefit of ER and its business, it is not compensable.
In determining whether waiting time constitutes
hours worked, consider:
- Amount of control Er has over EE during waiting
time
- Whether EE can effectively use that time for his
own purposes
2. On Duty
3. Off Duty
4. Idle Time
5. Commuting Time and Travel time (infra)
Travel Time
a. Travel from home to work
b. Travel that is all in the day’s work
c. Travel away from home – any work in which an
EE is required to perform while traveling must
be counted as hours worked.
Rada vs. NLRC Rada is entitled to EEs. The task of
fetching and delivering EEs is indispensable and
consequently mandatory, then he is doing OT work
and should be paid for such.
Weekly Rest Periods
1. Duration – at least 24 consecutive hours after 6
consecutive normal work days
2. Prerogative of Er to schedule; exception –
religious ground
 H. Right to holiday in case of temporary cessation
3. Emergency Rest Day Work of work – EEs entitled to holiday pay if
When ER may require work on rest day temporary cessation not due to business
Exclusive nature of enumeration reverses
I. Holiday pay/premium pay of teachers, piece
Holiday Pay workers, takay, seasonal workers, seafarers
J. Right to holiday pay of teachers
94 Holiday pay
regular holiday compensable Jose Rizal College vs. NLRC – hourly-paid
add 100% if regular holiday teachers not entitled to holiday pay for regular
holidays, whether during semestral or Christmas
Regular holidays: vacations. However, they are entitled to pay on
New Year days declared as special holidays or if, for some
Maundy Thursday reason, classes are called off or shortened for
Good Friday the hours they are supposed to have taught,
April 9 whether extensions of class days be ordered or
May 1 not; and in case of extensions, said faculty
June 12 members shall likewise be paid their hourly
July 4 rates should they teach during said extensions
November 30
December 25 K. Right to holiday pay of piece-workers, takay and
December 30 others paid by results
Election day
Holiday pay = average daily earnings for last 7 actual
working days preceding regular holiday ; must not be
A. Coverage; Exclusions (Art.822) less than minimum wage
B. Holiday pay, meaning and purpose
C. List of regular holidays If EE’s time and performance are unsupervised (ER’s
D. Total of 12 regular holidays control is over result of work, he is not entitled to
E. Premium pay holiday pay.
F. Computation of premium pay for holidays
G. Right to holiday pay in case of leave of absences3 L. Right to holiday pay of seasonal workers

2 Art. 82 Coverage; Exclusions
EEs in all establishments, WON for profit except:
 Gov’t EEs
 MEs – (a) whose primary duty is management of
establishment/department/subdivision they’re
employed in; (b) other officers/members of
Managerial Staff
 Officers/Members of MS
 Domestic servants/persons in another’s personal
service
- Workers paid by results - those engaged on
task/contract/purely commission basis; paid a fixed
amt for performing work irrespective of time
consumed in performance
 Non-agricultural field personnel – non-agricultural EEs
(a) who regularly perform duties away from principal
place of business and (b) whose actual hours of work
in the field cannot be determined with reasonable
certainty
 ER’s family members dependent for support
3 On leave of absence with pay – entitled to holiday pay
Entitled to holiday pay while working during the
seasson
M. Right to holiday pay of seafarers
N. Important principles on holidays
- On leave of absence without pay on day immediately
preceding holiday – not entitled to holiday pay if
unworked
- On leave while on SSS or EE’s compensation benefits
– entitled to holiday pay as benefit granted by
competent authority in form of EE’s compensation or
social security payment, whichever is higher, if they
are not reporting for work while on such benefits
- Day preceding regular holiday is a non-working day or
scheduled rest day – entitled to holiday pay if they
worked on the day immediately before non-working
day
Non-Muslims entitled to Muslim holiday pay during
Muslim holidays
SMC vs. CA – no distinction bet. Muslims and
non-Muslims as regards payment of benefits for
Muslim holidays. Both Muslim and Christians
working wihin Muslim areas may not report for
work on Muslim holidays. Wages and other
emoluments granted by law are determined
based on criterion laid down by law and not on
basis of workers’ faith or religion
SIL
95 SIL
EE who has rendered at least 1 yr of service
5 days with pay
not applicable to those:
- already enjoying the benefit
- enjoying vacation leave with pay of at least 5
days
- establishments regularly employing <10 EEs
- establishments exempted by DOLE after
considering viability/financial condition
A. Right to SIL
EE who has rendered at least 1 yr of service =
service within 12 months
whether continuous or broken, reckoned from date
EE started working
including authorized absences and paid regular
holidays, UNLESS no. of working days in
establishment
as a matter of practice or policy, or that provided in
the employment contract,
is less than 12 months, in which case, said period
should be considered as 1 yr for the purpose of
determining entitlement to SIL benefit
Entitled to SIL of 5 days with pay
B. Exclusions from coverage
Art. 824+ those already enjoying:
4 Art. 82 Coverage; Exclusions
EEs in all establishments, WON for profit except:
 Gov’t EEs
 MEs – (a) whose primary duty is management of
establishment/department/subdivision they’re
employed in; (b) other officers/members of
Managerial Staff
 Officers/Members of MS
 Domestic servants/persons in another’s personal
service
- benefit provided in law
- vacation leave with pay of at least 5 days
C. Commutable nature of benefit
Commutable to money equivalent if not
used/exhausted at the end of the year
Basis is date of commutation. Availment and
commutation may be availed of on pro-rata basis.
D. Illustrative computation
Pd of Employment: Jan 1 2017-March 1 2018
SIL as of Dec 31 2017 = 5 days
SIL for Jan-Feb 2018 – (2/12) x 5 = 0.833
Total accrued SIL = 5.833
Maternity Leave
A. Coverage
Maternity benefit = salary for 60 days, IF caesarian
78 days
B. Conditions to entitlement
- Female is employed at time of
delivery/miscarriage/abortion
- Given required notification to SS thru her ER
- ER paid 3 months of maternity contributions
within 12-month period immediately before
semester of contingency
- Workers paid by results - those engaged on
task/contract/purely commission basis; paid a fixed
amt for performing work irrespective of time
consumed in performance
 Non-agricultural field personnel – non-agricultural EEs
(a) who regularly perform duties away from principal
place of business and (b) whose actual hours of work
in the field cannot be determined with reasonable
certainty
 ER’s family members dependent for support
On leave of absence with pay – entitled to holiday pay
- On leave of absence without pay on day immediately
preceding holiday – not entitled to holiday pay if
unworked
- On leave while on SSS or EE’s compensation benefits
– entitled to holiday pay as benefit granted by
competent authority in form of EE’s compensation or
social security payment, whichever is higher, if they
are not reporting for work while on such benefits
- Day preceding regular holiday is a non-working day or
scheduled rest day – entitled to holiday pay if they
worked on the day immediately before non-working
day
 Who has rendered service of at least 1 year
C. Availment Not more than 7 working days

Pregnant women, married or unmarried, entitled to “Solo parent”

ML benefits
B. Conditions to Entitlement
Maternity benefits not part of 13th month - Has rendered at least 1 year of service,
computation whether continuous or broken
- Notified Er of availment within reasonable
Computation of maternity benefits period of time
- Presented solo parent identification card to
Entitlement to maternity benefit forecloses Er
entitlement to sickness benefit
C. Availment
Cannot claim sickness benefit for 60/78 days within Non-conversion of parental leave- Unless
which she was already paid maternity benefit specifically agreed upon previously

Notification to SSS in case of pregnancy Crediting of existing leave - Existing/similar

benefit under company policy, CBA, collective
Payment of maternity benefit; how made negotiation agreement shall be credited as such –
Advanced by ER in full/2 equal installments. First if greater than 7 days, greater benefit shall revail
installment to be paid upon receipt of maternity
leave application. Second will be paid not later than Emergency/contingency leave not credited as
30 days after payment of first installment. Upon compliance with parental lave
receipt of proof of payment, SSS will pay back
employer amount of maternity benefit it legally Benefits
advanced to EE. Solo parent whose income is below poverty
threshold; if above, benefits in Sec. 6-8
Paternity Leave
Service Charge
RA 8187
A. Coverage 96 SC
Married male employee distributed at 85% for all covered EEs and 15% for
7 calendar days management
IF abolished, considered integrated in their wages
B. Conditions to Entitlement
For first 4 deliveries of spouse with whom he is IV. WAGES
cohabiting
Male EE should notify Er of pregnancy and Arts. 97-105, LC
expected date of delivery
Can be availed of before or during delivery 97 Definitions
If not availed of, it cannot be converted to cash 98 Application
99 Regional Min Wages
C. Availment 100 Prohibition against elimination or diminution
Full pay, basis salary for 7 calendar days during of benefits
which he is allowed not to report for work Nothing in this book shall be construed to
eliminate or in any way diminish
Parental Leave for Solo Parents supplements/other employee benefits being
enjoyed at the time of promulgation of this code
RA 8972
A. Coverage 101 Payment by results
Granted to male/female solo parent 102 Forms of payment
103 Time of payment Rationale
104 Place of payment Integration of COLA and other monetary benefits
105 Direct payment of wages into the basic pay
No work, No pay principle
A. Wage vs. Salary
C. Facilities vs Supplements
both refer to compensation paid on account of
work/services rendered Facilities Supplements
when benefit is made benefit/privilege given
Wage Salary part of laborer’s basic to employee which
manual skilled or higher or superior level wage constitutes an extra
unskilled labor of employment relates remuneration over and
to a position or office: above his
compensation given for basic/ordinary
official or other service: earning/wage
subject to EAG except not exempt from EAG Deductible from wage, Not deductible
for debts incurred for (GAA vs. CA) provided that:
food, shelter, clothing - Fs are customarily
and medical furnished by the
attendance trade
- Provision of
deductible
B. Payment of Wages facilities is
voluntarily
Basic Wage – all remuneration paid by Er to a worker accepted in
for services rendered on normal working days/hours writing
but does not include COLA, profit-sharing payments, - Fs are charged at
premium payments, 13th month, or other monetary fair and
benefits not considered part of workers’ regular reasonable value
salary
D. Non-Diminution of Benefits
Attributes –
- Remuneration or earnings, however designated, Applicability of Art 100 of LC- Art 100 applicable to
for work done or to be done for services benefits enjoyed “at the time of” and after
rendered or to be rendered promulgation
- Capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, Elimination or Diminution of Benefits may constitute
piece or commission basis, or other method of demotion/constructive dismissal –
calculating the same
- Payable by an Er to an EE under a When demotion – results in lowering the
written/unwritten contract of Et for position/rank or reduction in EE’s salary
work/services done/rendered or to be
done/rendered When constructive dismissal – amounts to an
- Includes fair and reasonable value (excludes any involuntary resignation resorted to because
profit to Er/person affiliated with Er) of board, continued Et is rendered impossible, unreasonable,
lodging, or other facilities customarily furnished unlikely; when there is a demotion in
by Er to EE rank/diminution in pay; when a clear discrimination,
insensibility or disdain by an Er becomes unbearable
Minimum Wage to Eet that it could foreclose any choice by him
Statutory Minimum Wage except to forego his continued Et
Regional Minimum Wage Rates
Wage Rates Company Practice –
No hard and fast rule to establish company practice
The grant of benefit should not be by reason of legal
or contractual obligation but by reason of liberality –
To benefit into a company practice that is
demandable as a matter of right, the giving of the
benefit should be by reason of an act of liberality on
ER’s part (not a strict legal or contractual obligation)
Criteria to determine existence of company practice
–
- Act of Er has been done for a considerable pd of
time
- Act should be done consistently and
intentionally
- Act is not a product of erroneous interpretation
or construction of a doubtful or difficuly
question of law/CBA provision
Sevilla Trading vs Semana – act of including non-
basic benefits in computation of 13 th month pay for
at least two years considered a company practice
E. Prohibitions regarding wages
Art 112-119, LC
112 Non-interference in disposal of wages
Er cannot limit/interfere with freedom of EE to
dispose of his wages
He cannot force/compel/oblige his EEs to
purchase merchandise/commodities/other
property from any other person or otherwise
make use of any store or services of such Er or
other person
113 Wage deduction5
Er cannot make any deductions, EXCEPT:
5 Deductions other LC and other labor laws:
- For loss or damage under Art 114
- For agency fees from non-union members who
accept the benefits under the CBA negotiated by the
bargaining union. This form of deduction does not
require the written authorization of the non-
bargaining union member concerned
- Union service fees
- When the deductions are with the written
authorization of the Ee for payment to a third person
and the Er agrees to do so, provided that the latter
does not receive any pecuniary benefit, directly or
indirectly from the transaction
- For value of meal and other facilities
- Where worker is insured with his consent by
Er and the deduction is to recompense Er for
amount paid by him as premium on the
insurance
- For union dues, in case where right of worker
or his union to check-off has been recognized
by Er or authorized in writing by the
individual worker concerned
- Where Er is authorized by law or regulations
issued by the DOLE secretary
114 Deposits for loss or damage
Er cannot require workers to make a deposit from
which deductions shall be made for
reimbursement of loss of/damage to tools,
materials. Equipment
EXCEPT when Er is engaged in such trades,
occupations or business where the practice of
making deductions or requiring deposits is:
- a recognized one
- necessary or desirable as determined by the
SOLE in appropriate rules nad regulations
115 Limitations
For deduction to be made, EE must be heard
thereon and his responsibility clearly shown
116 Withholding of wages and kickbacks
prohibited
Er cannot withhold amount from wages of worker
or induce him to give any part by force, stealth,
intimidation, threat or other means without
worker’s consent
117 Deduction to ensure Et
Er cannot deduct wages for
Er/representative/intermediary’s benefit as
consideration of promise of Et or retention in Et
118 Retaliatory measures
Er cannot:
- refuse to pay/redice wages and benefits of
- For premiums for SSS, Philhealth, EEs compensation
and Pag-IBIG
- Withholding tax under NIRC
- Wages because of EE’s debt to Er which is already
due
- Those made pursuant to a Ct judgment against the
worker under circumstances where wages may be
subject to EAG
- When ordered by the Ct
- Deductions of a member of a cooperative
 EE
- discharge him from Et
- discriminate against Ee in any manner
the EE who has:
- filed any complaint or instituted any
proceeding under this Title
- testified/is about to testify in such
proceedings
119 False reporting
making of any statement/report/record filed or
kept pursuant ot the provisions of this code
knowing such to be false in any material respect is
unlawful
Five J Taxi vs. NLRC- Art 114 does not permit
deposits to defray and deficiency which the taxi
driver may incur in the remittance of his boundary
F. Wage Order, Wage Distortion
V. WOMEN EMPLOYEES
Art. 130-138
130 Nightwork prohibition
131 Exceptions
132 Facilities
133 Maternity leave
134 Family Planning Services; Incentives for
Family Planning
135 Discrimination prohibited
137 Prohibited acts
138 Classification of Certain Women Workers
A. Discrimination
Under the LC - Act of Er to discriminate against any
EE with respect to terms and conditions of Et solely
on account of her sex, specifically:
- Payment of lesser compensation to a female EE
against a male EE for work of equal value
- Favoring a male EE over a female EE with
respect to promotion, training opportunities,
study and scholarship grants solely on account
of their sexes
B. Stipulation against Marriage (Art 134 ) - it is
unlawful to:
- Require as a condition for continued Et that a
woman EE shall not get married
- Stipulate expressly/tacitly that upon getting
married, a woman EE shall be deemed resigned
or separated
- Dismiss/discharge/discriminate/prejudice a
woman EE by reason of her marriage
C. Prohibited Acts
Prohibited Acts under Art 137 and Implementing
Rules
Denial of Benefits
- Deny any employee the ff: facilities for women,
maternity leave benefits, family planning
services and incentives for family planning (Art
135)
- Discharge any EE for purpose of preventing her
from enjoying any of benefits above
Discharging a Woman due to Pregnancy (Art 135)
- Discharge woman EE on account of her
pregnancy
- Discharge woman EE while she is on leave due
to her pregnancy
- Discharge her while she in in confinement due
to pregnancy
- Discharge her/refuse her admission upon
returning to her work for fear that she may
again be pregnant
Lakpue Drug, Inc vs. Belga – her non-disclosure of
pregnancy is not tantamount to dishonesty. This
argument begs the question as to how one can
conceal a full-term pregnancy.
D. Sexual Harassment
VI. HANDICAPPED EMPLOYEES
A. Legal Basis – Magna Carta for Persons with
Disability (RA 7277 as amended by RA 9442)
B. Definition of Important Terms
“PWD” – those suffering from restriction or different
abilities, as a result of a mental, physical or sensory
impairment, to perform an activity in the manner or
within the range considered normal for a human
being
C. Equal Opportunity
Equal opportunity for Et – PWDs are entitled to equal
opportunity for Et. Consequently, no PWD shall be
denied access to opportunities for suitable Et. A
qualified EE with disability shall be subject to the
same terms and conditions of Et and the same F. Termination by EE
compensation, privileges, benefits, fringe benefits, G. Suspension of Operations
incentives or allowances as a qualified able-bodied
person.

PWDs are eligible for apprenticeship and learnership

Wage rate – 100% in view of RA 7277

Wage rate as apprentice or learner – PWDs are

eligible as apprentices or learners provided that their
handicap is not as to effectively impede the
performance of job operations in the particular
occupation for which they are hired and provided
further that after the lapse of the apprenticeship
period, if found satisfactory in the job performance,
they shall be eligible for Et

D. Discrimination on Employment

VII. APPRENTICES
A. Apprentices and Learners

VIII. JOBSTART PH ACT

IX. ANTI-AGE DISCRMINATION IN

EMPLOYMENT ACT
X. JOB CONTRACTING AND LABOR-ONLY
CONTRACTING
A. Contracting vs Subcontracting
B. Trilateral Relationship
C. Permissible Contracting or Subcontracting
Arrangements
D. Labor-only Contracting
E. Other Illicit Forms of Employment
F. Effects of Labor-Only Contracting and
Engaging in Other Illicit Forms of
Employment
G. Subcontracting vs Labor-Only Contracting
H. Solidary Liability

XI. PROBATIONARY EMPLOYMENT

XII. SECURITY OF TENURE AND TERMINATION

OF EMPLOYMENT

A. Preventive Suspension
B. Just Causes for Termination
Willful Disobedience
Gross Negligence
C. Authorized Causes for Termination
D. Illness or Disease
E. Retirement