1 | LABOR LAW 113 MIDTERMS REVIEWER PROF.

BATTAD

3. S O CI AL J U S TI C E AS J U S TI F I CA TI O N

INTRODUCTION TO 1987 C ONSTITUTION

A RTICLE II – D ECLARATION O F P RINCIPLES A ND S TATE
P OLICIES

LABOR LAW Section 10. The State shall promote social justice in all phases
of national development.
A RTICLE XIII – S OCIAL J USTICE A ND H UMAN R IGHTS
Section 1. The Congress shall give highest priority to the
Labor Law enactment of measures that protect and enhance the right of
all the people to human dignity, reduce social, economic, and
1. D E F I N I TI O N S political inequalities, and remove cultural inequities by
Labor Law equitably diffusing wealth and political power for the common
consists of statutes, regulations and jurisprudence governing the good.
relation between capital and labor, by providing for certain To this end, the State shall regulate the acquisition, ownership,
employment standards and a legal framework for negotiating, use, and disposition of property and its increments.
Section 2. The promotion of social justice shall include the
adjusting and administering these standards and other incidents
commitment to create economic opportunities based on
of employment
freedom of initiative and self-reliance.
Labor Section 3. The State shall afford full protection to labor, local
physical toil; does not exclude the application of skill and overseas, organized and unorganized, and promote full
Skill employment and equality of employment opportunities for all.
familiar knowledge of any art or science; dexterity or readiness in It shall guarantee the rights of all workers to self-organization,
execution, performance or application of art or science to collective bargaining and negotiations, and peaceful concerted
practical purposes activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
Work
of work, and a living wage. They shall also participate in policy
covers all forms of physical or mental exertion, or both, for the
and decision-making processes affecting their rights and
attainment of some object other than recreation or amusement
benefits as may be provided by law.
Worker The State shall promote the principle of shared responsibility
can include self-employed and those under the control of between workers and employers and the preferential use of
another, regardless or rank, title, or nature of work voluntary modes in settling disputes, including conciliation,
2. C L A S S I F I CA TI O N and shall enforce their mutual compliance therewith to foster
Labor Standards industrial peace.
 set out the least or basic terms, conditions and benefits of The State shall regulate the relations between workers and
employment that employers must provide and comply with employers, recognizing the right of labor to its just share in the
and to which employees are entitled as a matter of legal fruits of production and the right of enterprises to reasonable
right returns to investments, and to expansion and growth.
 minimum requirements prescribed by existing laws, statutes,
rules and regulations relating to wages, hours of work, cost- COMPARE:
of-living allowances, and other monetary and welfare 1987 C ONST . A RT . 1973 C ONST . 1935 C ONST . A RT .
benefits including occupational, safety, and health standards II A RT . II II
Sec. 10. The State Sec. 6 The State shall Sec. 5 The
Labor Relations shall promote social promote social promotion of social
 define the status, rights and duties, and institutional
justice in ALL justice to ensure the justice to insure the
mechanisms that govern the individual and collective phases of national dignity, welfare, well-being and
interactions of the employers, employees, or their development. and security of all economic security
representatives the people. Towards of all the people
 can be thought of as the material/substance to be processed this end, the State should be the
while labor relations is the mechanism which processes the shall regulate the concern of the State
substance. acquisition,
ownership, use,
enjoyment, and
Social Legislation
disposition of private
 those laws that provide particular kinds of protection or
property, and
benefits to society or segments thereof in furtherance of
equitably diffuse
social justice. property ownership
 Labor laws are necessarily social legislation and profits.

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Definition/Balancing of Interest
1987 C ONSTITUTION
A RTICLE II – D ECLARATION O F P RINCIPLES A ND S TATE
P OLICIES
Section 18. The State affirms labor as a primary social
economic force. It shall protect the rights of workers and
promote their welfare.
Section 20. The State recognizes the indispensable role of the
private sector, encourages private enterprise, and provides
incentives to needed investments.
C ALALANG V . W ILLIAMS (1940)
“Social justice is neither communism nor despotism, nor
atomism, nor anarchy,” but the humanization of laws and the
equalization of social and economic forces by the State so that
justice in its rational and objectively secular conception may at
least be approximated. Social justice means the promotion of
the welfare of all the people, the adoption by the Government
of measures calculated to insure economic stability of all the
competent elements of society, through the maintenance of a
proper economic and social equilibrium in the interrelations of
the members of the community, constitutionally, through the
adoption of measures legally justifiable, or extra-
constitutionally, through the exercise of powers underlying the
existence of all governments on the time-honored principle of
salus populi est suprema lex.”
T OYOTA P HILIPPINES , C ORP . W ORKERS A SSOCIATION V .
NLRC (2007)
“The policy of social justice is not intended to countenance
wrongdoing simply because it is committed by the
underprivileged. At best it may mitigate the penalty but it
certainly will not condone the offense. Compassion for the
poor is an imperative of every humane society but only when
the recipient is not a rascal claiming an undeserved privilege.
Social justice cannot be permitted to be [a] refuge of
scoundrels any more than can equity be an impediment to the
punishment of the guilty. Those who invoke social justice may
do so only if their hands are clean and their motives blameless
and not simply because they happen to be poor. This great
policy of our Constitution is not meant for the protection of
those who have proved they are not worthy of it, like the
workers who have tainted the cause of labor with the
blemishes of their own character.”
Foundation: Police Power and State Protection
While social justice is the raison d’etre of labor laws, their basis or
foundation is the police power of the State.
a. State legislatures may enact laws for the protection of the
safety and health of employees.
b. Right of every person to pursue a business, occupation, or
profession is subject to the paramount right of the
government as a part of its police power to impose such
restrictions and regulations as the protection of the public
may require.
S T . L UKE ’S M ED . C ENTER E MPLOYEE ’S F OUNDATION -AFW
V . NLRC (2007)
An employee’s dismissal following her failure to earn a passing
mark for the Board Examinations for X-Ray Technicians is
VALID. The imposition of a Board exam requirement in RA
7431 is a valid exercise of police power as it is a reasonable
method of protecting public health and safety. It should be
remembered that radiology is a learned profession requiring
scientific and technical knowledge. Thus, the need to regulate
the profession is imperative. St. Luke’s, as the employer, should
not be penalized for situations where it had no participation or
control.
Limits of Use
Police power itself has to respect the Constitution. It cannot grow
faster than the fundamental law.
Police power is both subject to and is controlled by the
paramount authority of the Constitution. It will not be permitted
to violate rights secured and guaranteed or interfere with the
execution of powers and rights guaranteed to the people.
PLDT V . NLRC (1988)
PLDT employee promised to facilitate the approval of the
complainants’ applications for telephone installation and then
received from them an amount of money in consideration of
her promise.
HELD: “We hold that henceforth separation pay shall be
allowed as a measure of social justice only in those instances
where the employee is validly dismissed for causes other than
serious misconduct or those reflecting on his moral character.
Where the reason for the valid dismissal is, for example,
habitual intoxication or an offense involving moral turpitude,
like theft or illicit sexual relations with a fellow worker, the
employer may not be required to give the dismissed employee
separation pay, of financial assistance, or whatever other name
it is called, on the ground of social justice. A contrary rule
would, as the petitioner correctly argues, have the effect of
rewarding rather than punishing the erring employee for his
offense.”
4. L E G AL B AS E S ; S O U R C E S O F R I G H TS AN D
B E N E F I TS
International Instruments
I NTERNATIONAL C OVENANT ON C IVIL AND P OLITICAL
R IGHTS (M ARCH 23 1976)
Article 22
1. Everyone shall have the right to freedom of association
with others, including the right to form and join trade
unions for the protection of his interests.
2. No restrictions may be placed on the exercise of this right
other than those which are prescribed by law and which are
necessary in a democratic society in the interests of national
security or public safety, public order, the protection of public
health or morals or the protection of the rights and freedoms
of others. xx
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C ONVENTION ON THE E LIMINATION OF A LL F ORMS OF
D ISCRIMINATION AGAINS T WOMEN (D ECEMBER 18, 1979)
Article 11
1. States Parties shall take all appropriate measures to
eliminate discrimination against women in the field of
employment in order to ensure, on a basis of equality of men
and women, the same rights, in particular:
(a) The right to work as an inalienable right of all human
beings;
(b) The right to the same employment opportunities,
including the application of the same criteria for selection in
matters of employment;
(c) The right to free choice of profession and employment,
the right to promotion, job security and all benefits and
conditions of service and the right to receive vocational
training and retraining, including apprenticeships, advanced
vocational training and recurrent training;
(d) The right to equal remuneration, including benefits,
and to equal treatment in respect of work of equal value,
as well as equality of treatment in the evaluation of the quality
of work;
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old age and
other incapacity to work, as well as the right to paid leave;
(f) The right to protection of health and to safety in
working conditions, including the safeguarding of the
function of reproduction.
2. In order to prevent discrimination against women on the
grounds of marriage or maternity and to ensure their effective
right to work, States Parties shall take appropriate measures:
(a) To prohibit, subject to the imposition of sanctions,
dismissal on the grounds of pregnancy or of maternity leave
and discrimination in dismissals on the basis of marital status;
(b) To introduce maternity leave with pay or with comparable
social benefits without loss of former employment, seniority or
social allowances;
(c) To encourage the provision of the necessary supporting
social services to enable parents to combine family obligations
with work responsibilities and participation in public life, in
particular through promoting the establishment and
development of a network of child-care facilities;
(d) To provide special protection to women during pregnancy
in types of work proved to be harmful to them. 3. Protective
legislation relating to matters covered in this article shall be
reviewed periodically in the light of scientific and technological
knowledge and shall be revised, repealed or extended as
necessary.
I NTERNATIONAL C OVENANT O N E CONOMIC , S OCIAL A ND
C ULTURAL R IGHTS (J ANUARY 3, 1976)
Article 6
1. The States Parties to the present Covenant recognize the
right to work, which includes the right of everyone to the
opportunity to gain his living by work which he freely chooses
or accepts, and will take appropriate steps to safeguard this
right.
2. The steps to be taken by a State Party to the present
Covenant to achieve the full realization of this right shall
include technical and vocational guidance and training
programmes, policies and techniques to achieve steady
economic, social and cultural development and full and
productive employment under conditions safeguarding
fundamental political and economic freedoms to the
individual.
Article 7
The States Parties to the present Covenant recognize the right
of everyone to the enjoyment of just and favorable conditions
of work which ensure, in particular:
(a) Remuneration which provides all workers, as a minimum,
with: xx
(iii) Fair wages and equal remuneration for work of equal value
without distinction of any kind, in particular women being
guaranteed conditions of work not inferior to those enjoyed
by men, with equal pay for equal work;
(iv) A decent living for themselves and their families in
accordance with the provisions of the present Covenant; xx
(b) Safe and healthy working conditions;
(c) Equal opportunity for everyone to be promoted in his
employment to an appropriate higher level, subject to no
considerations other than those of seniority and competence;
(d) Rest, leisure and reasonable limitation of working hours
and periodic holidays with pay, as well as remuneration for
public holidays.
Article 8
1. The States Parties to the present Covenant undertake to
ensure:
(a) The right of everyone to form trade unions and join the
trade union of his choice, subject only to the rules of the
organization concerned, for the promotion and protection of
his economic and social interests; xx
(b) The right of trade unions to establish national
federations or confederations and the right of the latter to
form or join international trade-union organizations;
(c) The right of trade unions to function freely subject to no
limitations other than those prescribed by law and which are
necessary in a democratic society in the interests of national
security or public order or for the protection of the rights and
freedoms of others;
(d) The right to strike, provided that it is exercised in
conformity with the laws of the particular country. xx
Article 9
The States Parties to the present Covenant recognize the right
of everyone to social security, including social insurance.
I NTERNATIONAL S CHOOL A LLIANCE OF E DUCATORS V .
Q UISUMBING (2000)
The unequal treatment accorded to local-hires compared to
foreign-hires is unjustified. No less than the Constitution
prescribes that “Congress shall give highest priority to the
enactment of measures that protect and enhance the right of
all people to human dignity, reduce social, economic, and
political inequalities.” (Art. XIII) In the same vein, international
law likewise proscribes discrimination. The Universal
Declaration of Human Rights, the International Covenant on
Economic, Social, and Cultural Rights, the International
Convention on the Elimination of All Forms of Racial
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Discrimination, the Convention against Discrimination in
Education, the Convention (No. 111) Concerning
Discrimination in Respect of Employment and Occupation—all
embody the general principle against discrimination, the very
antithesis of fairness and justice. We have integrated these
principles into our Constitution and other statutes.
1987 Constitution
1987 C ONSTITUTION
A RTICLE II – D ECLARATION O F P RINCIPLES A ND S TATE
P OLICIES
Section 5. The maintenance of peace and order, the
protection of life, liberty, and property, and promotion of the
general welfare are essential for the enjoyment by all the
people of the blessings of democracy.
Section 9. The State shall promote a just and dynamic social
order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a
rising standard of living, and an improved quality of life for all.
Section 10. The State shall promote social justice in ALL
phases of national development.
Section 11. The State values the dignity of every human
person and guarantees full respect for human rights.
Section 13. The State recognizes the vital role of the youth in
nation-building and shall promote and protect their physical,
moral, spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and
encourage their involvement in public and civic affairs.
Section 14. The State recognizes the role of women in nation-
building, and shall ensure the fundamental equality before the
law of women and men.
Section 18. The State affirms labor as a primary social
economic force. It shall protect the rights of workers and
promote their welfare.
A RTICLE III – B ILL OF R IGHTS
Section 1. No person shall be deprived of life, liberty, or
property without due process of law, nor shall any person be
denied the equal protection of the laws.
Section 4. No law shall be passed abridging the freedom of
speech, of expression, or of the press, or the right of the
people peaceably to assemble and petition the government
for redress of grievances.
Section 8. The right of the people, including those employed
in the public and private sectors, to form unions, associations,
or societies for purposes not contrary to law shall not be
abridged.
Section 18. (1) No person shall be detained solely by reason
of his political beliefs and aspirations.
A RTICLE XIII – S OCIAL J USTICE A ND H UMAN R IGHTS
Section 1. The Congress shall give highest priority to the
enactment of measures that protect and enhance the right of
all the people to human dignity, reduce social, economic, and
political inequalities, and remove cultural inequities by
equitably diffusing wealth and political power for the common
good.
To this end, the State shall regulate the acquisition, ownership,
use, and disposition of property and its increments.
Section 2. The promotion of social justice shall include the
commitment to create economic opportunities based on
freedom of initiative and self-reliance.
Section 14. The State shall protect working women by
providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them
to realize their full potential in the service of the nation.
COMPARE w/ 1987 Const. Art XIII Sec. 3 (Under Social Justice
as Justification)
1973 C ONST . A RT . II 1935 C ONST . A RT . X III
Sec. 9 The State shall afford Sec. 6 The State shall afford
protection to labor, promote protection to labor, especially
full employment and equality to working women and
in employment, ensure equal minors, and
work opportunities regardless
of sex, race, or creed, and
REGULATE the relation between shall REGULATE the RELATIONS
workers and employers. between landowner and
tenant, and between labor and
capital in industry and in
agriculture.
The State shall assure the rights The State may provide for
of workers to self- compulsory arbitration.
organization, collective
bargaining, security of tenure,
and just and humane
conditions of work.
The State may provide for
compulsory arbitration.
Labor Code (LC) and Omnibus Rules Implementing
the Labor Code
New Civil Code of the Philippines
N EW C IVIL C ODE
Article 19. Every person must, in the exercise of his rights and
in the performance of his duties, act with justice, give everyone
his due, and observe honesty and good faith.
Article 21. Any person who willfully causes loss or injury to
another in manner that is contrary to morals, good customs or
public policy shall compensate the latter for the damage.
Article 1700. The relations between capital and labor are not
merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on
labor unions, collective bargaining, strikes and lockouts, closed
shop, wages, working conditions, hours of labor and similar
subjects.
Article 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest or
convenience of the public.
Collective Bargaining Agreement
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*A CBA is a CONTRACT.
N EW C IVIL C ODE
Article 1305. A contract is a meeting of minds between two
persons whereby one binds himself, with respect to the other,
to give something or to render some service.
Article 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they may deem
convenient, PROVIDED they are not contrary to law, morals,
good customs, public order, or public policy.
D OLE P HILS . V . P AWIS NG M AKABAYANG O BRERO (2003)
Dole cannot deprive its employees of the stipulated meal
allowance/free meals in the guise of exercising its
management prerogatives. Such exercise is limited by (1) law,
and (2) the applicable CBA. In this case, their CBA states that
the free meals shall be granted “after 3 hours of actual
overtime work.” When the terms of a contract are clear and
unambiguous, the literal meaning shall prevail. There is no
room for construction.
“The exercise of management prerogative is not unlimited. It is
subject to the limitations found in law, a collective bargaining
agreement or the general principles of fair play and justice.
This situation constitutes one of the limitations. The CBA is the
norm of conduct between the petitioner and private
respondent and compliance therewith is mandated by the
express policy of the law.
Past Practices
A MERICAN W IRE AND C ABLE D AILY R ATED E MPLOYEES
U NION V . A MERICAN W IRE AND C ABLE C O ., I NC . (2005)
The company suddenly withdrew and denied certain benefits
and entitlements which the employees have long enjoyed like
service awards, 35% premium pay of an employee’s basic pay
for work rendered during Holy Monday, Tuesday, Wednesday,
December 23, 26, 27, 28, and 29, Christmas Party and
Promotional Increases.
HELD: The grant of a bonus is not a demandable obligation
unless it is expressly agreed upon or has become a long and
regular practice by the employer. For it to become a customary
practice, it must be given consistently, deliberately, and
unconditionally by the employer. In this case, it was not
sufficiently shown to the satisfaction of the Court that the
bonuses were in fact being granted by management “since
time immemorial.” Neither did such bonuses form part of the
employees’ compensation, as the same was not mentioned in
the CBA. The respondent gave the bonuses out of generosity
and munificence, in excess of what the law requires.
N ETLINK C OMPUTER I NCORPORATED V . D ELMO (2014)
Delmo earned peso and USD commissions from the sales he
generated for Netlink. When he sought for payment, Netlink
only gave partial. Later on, Delmo was dismissed supposedly
because of his infractions of the attendance policy. He filed for
illegal dismissal.
HELD: There is no specific rule as to the length of time a
company practice ripens to a policy that cannot be unilaterally
reduced, diminished, discontinued or eliminated by the
employer. In this case, Netlink was made liable to pay in USD
because the practice of paying its sales agents in USD for their
USD-denominated sales had become a company policy,
impliedly admitted by Netlink when it did not refute the
allegation that the commissions earned by Delmo and its other
sales agents had been paid in US dollars. To rule otherwise
would amount to a diminution of pay.
Company Policies
C HINA B ANKING C ORPORATION V . B ORROMEO (2004)
Company rules, regulations and policies are binding and valid
between the employer and employee so long as they are not
contrary to law, morals, good customs, public order, or public
policy. Management was merely exercising its prerogative
when it chose to withhold Borromeo’s separation pay and
benefits to guarantee the restitution of its losses. Neither did it
err in imposing disciplinary sanctions on respondent when the
latter was found to have violated the Bank’s Code of Ethics.
LABOR CODE OF
THE PHILIPPINES
Brief History
 Drafting began in 1968 under the direction of Blas Ople,
known as the “Father of the Labor Code.”
 Objectives: Consolidate around 60 pieces of labor legislation;
and Reorient them to the needs of economic development
and justice.
 Ratified by a National Tripartite Congress on April 28, 1973.
 Submitted to Pres. Marcos on May 1, 1973. It underwent
several revisions.
General Provisions
D E CR E E T I TL E
Article 1. Name of Decree. — This Decree shall be known as
the “Labor Code of the Philippines”.
E F F E C TI VI TY
Article 2. Date of Effectivity. — This Code shall take effect six
(6) months after its promulgation.
 Signed into law as PD 442 on May 1, 1974.
 Took effect 6 months after (as per Art. 2), on Nov. 1, 1974.
P O L I C Y D E CL AR A TI O N
Article 3. Declaration of basic policy. — The State shall
afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. The
State shall assure the rights of workers to self-organization,
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collective bargaining, security of tenure, and just and humane
conditions of work.
 Similar to 1973 Const. Art. II Sec. 9
 The basic policy is not meant to favor labor to prejudice
capital.  They are interdependent. One is inutile without
the other.
 BASIC POLICY: to balance/coordinate the rights of both
workers and employers.
C O N S TR U C TI O N I N F A V O R O F L A B O R
Article 4. Construction in favor of labor. — All doubts in the
implementation and interpretation of the provisions of this
Code, including its implementing rules and regulations, shall
be resolved in favor of labor.
 The workingman’s welfare should be the
primordial/paramount consideration.
 POLICY: to extend applicability to a greater number of
employees (maximum and full protection to labor).
 Since the employer necessarily stands on higher footing, the
law must:
o Raise the laborer to equal footing in bargaining
relations; and
o Shield him from the employer’s abuses.
P EÑAFLOR V . O UTDOOR C LOTHING M ANUFACTURING
C ORP . (2010)
When an employee is forced to resign due to harsh, hostile
and unfavorable working conditions set by the employer
or when there is clear discrimination, insensibility or
disdain by an employer such as when there is a diminution
of pay, such employee is deemed constructively dismissed.
GAUGE: Whether a reasonable person in employee’s position
would feel compelled to give up his/her employment under
the prevailing circumstances.
The fact of filing a resignation letter alone does not shift the
burden of proving that the employee’s dismissal was for a just
and valid cause from the employer to the employee.
While the primary issue concerned the voluntariness of
Peñaflor’s resignation, the Court declared that whatever
doubts it may have must be resolved in favor of the laborer.
This is in accordance with the dictate of the law.
RULE MAKING POWER, ART. 5
Article 5. Rules and regulations. — The Department of Labor
and other government agencies charged with the
administration and enforcement of this Code or any of its
parts shall promulgate the necessary implementing rules and
regulations. Such rules and regulations shall become effective
fifteen (15) days after announcement of their adoption in
newspapers of general circulation.
K APISANANG M ANGGAGAWANG P INAGYAKAP V . NLRC &
F RANKLIN B AKER C O . OF THE P HILIPPINES (1997)
The Court, in Philippine Apparel Workers Union v. NLRC
previously declared void Paragraph (k), Section 1 of the Rules
Implementing PD 1123. However, in this case, the Labor
Arbiter ruled that pursuant to such paragraph, petitioners’
P1.33 daily wage increase could be credited to and deducted
from the P60 COLA required by PD 1123.
SC had to reverse the ruling to conform to the decision in
Philippine Apparel. In so doing, it reminded the parties of the
effect of the court’s prior declaration of nullity with regard to
paragraph (k). It adds an exemption not found in the law by
including “those who have granted in addition to the
allowance under PD 525, at least P60 monthly.” The law
exempts only distressed employers. That part of the rule is
ultra vires and void. Private respondents, therefore, have no
basis for claiming an exemption.
The spring cannot rise higher than its source. 
 A rule promulgated by an administrative body is void if
issued in excess of its authority.
 A rule cannot take away a benefit granted by statute. Such
rule would be ultra vires and void.
T E CH N I C AL R U L E S N O T B I N D I N G
Article 221. Technical rules not binding and prior resort to
amicable settlement. - In any proceeding before the
Commission or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or equity shall NOT be
controlling and it is the spirit and intention of this Code that
the Commission and its members and the Labor Arbiters shall
use EVERY and ALL reasonable means to ascertain the facts
in each case speedily and objectively and without regard
to technicalities of law or procedure, all in the interest of
due process. In any proceeding before the Commission or any
Labor Arbiter, the parties may be represented by legal counsel
but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner or any Labor Arbiter to
exercise complete control of the proceedings at all stages.
M A . L IGAYA B. S ANTOS V . L ITTON M ILLS , I NC . (2011)
The Court of Appeals denied petitioner’s appeal on the ground
that she failed to indicate the addresses of the parties in her
appeal. Moreover, she did not state in the Verification and
Certification of Non-forum Shopping that there were no other
pending cases between the parties at the time of filing. The
Supreme Court held that she should be deemed in substantial
compliance with the requirements. Firstly, she stated in her
petition that the parties may be served through counsel.
Secondly, she rectified the errors in her Verification and
Certification. It was thus error for the CA to dismiss her appeal
on technical grounds. Her subsequent and substantial
compliance call for relaxation of the rules.
Technical rules should be used to PROMOTE, not frustrate
the cause the justice. Rules of Procedure are tools designed
not to thwart but to facilitate the attainment of justice such
that strict and rigid application may, for good reasons, have to
give way to the need to aptly dispense substantial justice.
W ALLEM M ARITIME S ERVICES , I NC . V . P EDRAJAS (2014)
What’s involved in this case is the interpretation of evidence
presented by the parties. Hernani Pedrajas’ beneficiaries filed a
claim for death compensation benefits upon finding out that
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PNP and NBI reports did not conclusively ruled out Homicide as 3. No claim but can be made as household service or
cause of his death. The death, which happened on board a amt >5k EXCEPT to its existence). househelper
if employee’s If it’s an illegal 2. Claim arises from
vessel in Italy, was investigated by Italian authorities with the compensation, dismissal the EER
Italian medical examiner concluding that Hernani committed social security, complaint 3. NO claim for
suicide. Wallem Maritime refused to pay the benefits as they medicare and and/or there is a reinstatement
are exempted pursuant to POEA-SEC Sec 20(D). SC held that maternity claim for 4. Amt NOT >5k
Wallem was able to sufficiently prove that Hermani committed benefits reinstatement
 LA/NLRC
suicide and therefore, his death is not compensable.
Officers Labor Secretary of DOLE Regional
It is settled that proceedings before the NLRC are not covered designated Arbiter/CBA Labor, or his/her Director or any duly
by the technical rules of evidence and procedure as observed in interpretation  duly authorized authorized hearing
the regular courts. The LA and the NLRC are directed to use Grievance rep officer
every and all reasonable means to ascertain the facts in each Machinery
case speedily and objectively, without regard to technicalities Appeal NLRC Secretary of NLRC (w/in 5 days)
Labor
of law and procedure all in the interest of substantial justice.

Article 217 [224]. Jurisdiction of the Labor Arbiters and the

A P P L I CA B I L I TY
Article 6. Applicability. — All rights and benefits granted to
workers under this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether agricultural
or non-agricultural. (As amended by Presidential Decree No.
570-A, November 1, 1974).
Article 276. Government employees. — The terms and
conditions of employment of all government employees,
including employees of government-owned and controlled
corporations, shall be governed by the Civil Service Law, rules
and regulations. Their salaries shall be standardized by the
National Assembly as provided for in the new constitution.
However, there shall be no reduction of existing wages,
benefits and other terms and conditions of employment being
enjoyed by them at the time of the adoption of this Code.
1987 C ONSTITUTION
ARTICLE IX-B – T HE C IVIL S ERVICE C OMISSION
Section 2. (1) The civil service embraces all branches,
subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled
corporations with original charters.
Labor Code Civil Service Laws
Employees of GOCCs Employees of GOCCs w/ an
incorporated under the original charter
general Corporation Code
 Government agencies and instrumentalities have no juridical
identity separate from that of the government, therefore its
employees are also subject to Civil Service laws.
Commission. -
a. Except as otherwise provided under this Code, the Labor
Arbiters shall have original and exclusive jurisdiction to hear
and decide, within thirty (30) calendar days after the
submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the
following cases involving all workers, whether agricultural or
non-agricultural:
2. Termination disputes
3. If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of
employment;
4. Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations;
6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other claims
arising from employer-employee relations, including those
of persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement
b. The Commission shall have exclusive appellate jurisdiction
over all cases decided by Labor Arbiters.
c. Cases arising from the interpretation or implementation of
collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies
shall be disposed of by the Labor Arbiter by referring the
same to the grievance machinery and voluntary arbitration as
may be provided in said agreements. (As amended by Section
9, Republic Act No. 6715, March 21, 1989)

E N F O R CE M E N T A N D S A N C TI O N S
ARTICLE 128. Visitorial and enforcement power. -
Jurisdiction a. The Secretary of Labor and Employment or his duly
Table of Jurisdiction authorized representatives, including labor regulation
Art. 217 Art. 128 Art. 129 officers, shall have access to employer’s records and premises
Nature Adjudication Inspection Adjudication at any time of the day or night whenever work is being
Subject Labor Legislation Labor Labor Standards undertaken therein, and the right to copy therefrom, to
Legislation (money claims) question any employee and investigate any fact, condition or
Jurisdictional 1. w/ claim for NO monetary 1. Complainant is an
matter which may be necessary to determine violations or
Requisites reinstatement limit BUT EER employee or person
2. Damages must still exists employed in a
which may aid in the enforcement of this Code and of any
arising from EER (determination domestic or

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8 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD

labor law, wage order or rules and regulations issued pursuant Officer Designated Power given
thereto. SOLE/duly authorized INSPECTION:
b. Notwithstanding the provisions of Articles 129 and 217 of rep/labor regulation officers 1. access to records and
this Code to the contrary, and in cases where the relationship [IRR: Labor Laws Compliance premises & right to copy
of employer-employee still exists, the Secretary of Labor and Officer (LLCO)] 2. investigate any violation
Employment or his duly authorized representatives shall SOLE/duly authorized rep ENFORCEMENT:
have the power to issue compliance orders to give effect to 1. issue compliance orders
the labor standards provisions of this Code and other labor 2. issue writs of execution
legislation based on the findings of labor employment and SOLE only (IRR: or his/her Order stoppage of
enforcement officers or industrial safety engineers made in the duly authorized rep) work/suspension of operation
course of inspection. The Secretary or his duly authorized (IRR: Occupational Safety and
representatives shall issue writs of execution to the Health Standards
appropriate authority for the enforcement of their orders, Investigation (OSHI)
except in cases where the employer contests the findings of
SOLE only Issue regulations requiring
the labor employment and enforcement officer and raises
maintenance of employment
issues supported by documentary proofs which were not
records  DO 131-13
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
IRR of Art. 128
Secretary of Labor and Employment under this Article may be DO 131 (2013)
appealed to the latter. In case said order involves a monetary R ULES ON L ABOR L AWS C OMPLIANCE S YSTEM ( LLCS )
award, an appeal by the employer may be perfected only upon R ULE II
the posting of a cash or surety bond issued by a reputable Section 1. Definition of Terms. –
bonding company duly accredited by the Secretary of Labor
and Employment in the amount equivalent to the monetary
award in the order appealed from. (As amended by Republic
Act No. 7730, June 2, 1994)
c. The Secretary of Labor and Employment may likewise
order stoppage of work or suspension of operations of any
unit or department of an establishment when non-compliance
with the law or implementing rules and regulations poses
grave and imminent danger to the health and safety of
workers in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for the
stoppage of work or suspension of operations shall be lifted or
not. In case the violation is attributable to the fault of the
employer, he shall pay the employees concerned their salaries
or wages during the period of such stoppage of work or
suspension of operation.
d. It shall be unlawful for any person or entity to obstruct,
impede, delay or otherwise render ineffective the orders of the
Secretary of Labor and Employment or his duly authorized
representatives issued pursuant to the authority granted under
this Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order or
otherwise assume jurisdiction over any case involving the
enforcement orders issued in accordance with this Article.
e. Any government employee found guilty of violation of, or
abuse of authority, under this Article shall, after appropriate
administrative investigation, be subject to summary dismissal
from the service.
f. The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep and
maintain such employment records as may be necessary in aid
of his visitorial and enforcement powers under this Code.

Outline of Art. 128

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R ULE IV J OINT A SSESSMENT

R ULE III G ENERAL P ROVISIONS

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10 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
R ULE V
C OMPLIANCE V ISIT
R ULE VI O CCUPATIONAL SAFETY AND HEALTH STANDARDS
INVESTIGATION
ARTICLE. 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 such sum not paid to the employee or
househelper because he cannot be located after diligent and
reasonable effort to locate him w/in 3yrs, 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)
Nature of Proceedings Under Art. 129
 Summary and Non-technical
 Supported by Substantial evidence
C IRENEO B OWLING P LAZA , I NC . V . S ENSING (2005)
Following an inspection of a Labor and Employment Officer,
the DOLE Regional Director ordered petitioner to pay 13
employees their money claims consisting of minimum wage,
13th month pay, and overtime pay, among others. They assail
the jurisdiction of the Regional Office to adjudicate money
claims as Art. 217 states that the Labor Arbiter has original and
exclusive jurisdiction over money claims exceeding 5k.
HELD: Pursuant to RA 7730, the Regional Office, as a duly
authorized representative of the Secretary of Labor, has
jurisdiction over money claims even when the amount claimed
exceeds 5k. Arts. 129 and 217 do not affect the visitorial and
enforcement powers of the Sec. of Labor stated in Art. 128.
P EOPLE ’S B ROADCASTING S ERVICE (B OMBO R ADYO
P HILS ., I NC .) V . SOLE, ET AL . (2012)
Bombo Radyo questions the jurisdiction of the DOLE Regional
Director to adjudicate the complaint for money claims filed by
its employee, Jandeleon Juezan. It posits that the Regional
Director is without jurisdiction to determine the existence of
an EER and it is primarily within NLRC’s power to make the
determination.
HELD: The Regional Director, as a duly authorized
representative of the Secretary of Labor, has jurisdiction
pursuant to Art. 128. The Secretary’s visitorial power would be
rendered nugatory if an employer could just force the issue of
the existence of an EER to be decided by the NLRC. There is no
limitation placed by law and nowhere does it states that DOLE
must first seek NLRC should there be a dispute as to EER. The
DOLE may very well make a finding that no EER exists, thereby
divesting itself of jurisdiction. The important thing is that there
is no claim for reinstatement.
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R AUL C. C OSARE V . B ROADCOM A SIA , I NC (2014)
Cosare filed a complaint against respondents for constructive
dismissal, illegal suspension, and monetary claims with the LA
first then NLRC. Respondents claimed case involved an intra-
corporate controversy which was within the jurisdiction of RTC,
not LA.
HELD:
An intra-corporate controversy pertains to disputes:
(1) between the corporation, partnership or association and
the public;
(2) between the corporation, partnership or association and
the state as regards its franchise, permit or license to operate;
(3) between the corporation, partnership or association and its
stockholders, partners, members or officers; and
(4) among the stockholders, partners or associates, themselves
HOWEVER, if case is an illegal dismissal case then it rightly falls
under the jurisdiction of the LA. The mere fact that Cosare was
a stockholder and an officer of Broadcom at the time the
subject controversy developed does not necessarily make the
case an intra-corporate dispute.
MOREOVER, Cosare, although an officer of Broadcom for
being its AVP for Sales, was not a "corporate officer" as the
term is defined by law.1
Penalties
Article 288 [303]. Penalties. - Except as otherwise provided
in this Code, or unless the acts complained of hinge on a
question of interpretation or implementation of ambiguous
provisions of an existing collective bargaining agreement, any
violation of the provisions of this Code declared to be unlawful
or penal in nature shall be punished with a fine of not 1-10k
OR imprisonment of 3mos-3yrs, OR both such fine and
imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of
sentence.
Any provision of law to the contrary notwithstanding, any
criminal offense punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or City Courts and
the Courts of First Instance. (As amended by Section 3, Batas
Pambansa Bilang 70)
Article. 289. [304] Who are liable when committed by
other than natural person. - If the offense is committed by a
corporation, trust, firm, partnership, association or any other
entity, the penalty shall be imposed upon the guilty officer or
officers of such corporation, trust, firm, partnership,
association or entity.
Article. 290. [305] Offenses. - Offenses penalized under this
Code and the rules and regulations issued pursuant thereto
shall prescribe in 3yrs.
1Two circumstances which must concur in order for an individual to
be considered a corporate officer, as against an ordinary employee or
officer, namely: (1) the creation of the position is under the
All unfair labor practice arising from Book V shall be filed with
the appropriate agency w/in 1yr from accrual of such unfair
labor practice; otherwise, they shall be forever barred.
Money Claims
Article 291. [306] Money claims. - All money claims arising
from employer-employee relations accruing during the
effectivity of this Code shall be filed w/in 3yrs from the time
the cause of action accrued; otherwise they shall be forever
barred.
All money claims accruing prior to the effectivity of this Code
shall be filed with the appropriate entities established under
this Code w/in 1yr from the date of effectivity, and shall be
processed or determined in accordance with the implementing
rules and regulations of the Code; otherwise, they shall be
forever barred.
Workmen’s compensation claims accruing prior to the
effectivity of this Code and during the period from November
1, 1974 up to December 31, 1974, shall be filed with the
appropriate regional offices of the Department of Labor not
later than March 31, 1975; otherwise, they shall forever be
barred. The claims shall be processed and adjudicated in
accordance with the law and rules at the time their causes of
action accrued.
Article 292. [307] Institution of money claims. - Money
claims specified in the immediately preceding Article shall be
filed before the appropriate entity independently of the
criminal action that may be instituted in the proper courts.
Pending the final determination of the merits of money claims
filed with the appropriate entity, no civil action arising from
the same cause of action shall be filed with any court. This
provision shall not apply to employees compensation case
which shall be processed and determined strictly in
accordance with the pertinent provisions of this Code.
1987 C ONSTITUTION
ARTICLE III – B ILL OF R IGHTS
Section 11. Free access to the courts and quasi-judicial bodies
and adequate legal assistance shall not be denied to any
person by reason of poverty.
Section 16. All persons shall have the right to a speedy
disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.
Work Relationship
E M P L O Y E R AN D E M P L O Y E E R E L A TI O N S H I P
Definition of Employer and Employee
corporation’s charter or by-laws; and (2) the election of the officer is
by the directors or stockholders.
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BOOK III CONDITIONS OF EMPLOYMENT
TITLE II WAGES
Article. 97. Definitions. - As used in this Title:
a. "Person" means an individual, partnership, association,
corporation, business trust, legal representatives, or any
organized group of persons.
b. "Employer" includes any person acting directly or indirectly
in the interest of an employer in relation to an employee and
shall include the government and all its branches, subdivisions
and instrumentalities, all government-owned or controlled
corporations and institutions, as well as nonprofit private
institutions, or organizations.
c. "Employee" includes any individual employed by an
employer.
BOOK IV HEALTH, SAFETY AND SOCIAL WELFARE
BENEFITS
TITLE II. EMPLOYEES’ COMPENSATION AND STATE
INSURANCE FUND
Article. 167. Definition of terms. - As used in this Title, unless
the context indicates otherwise:
f. "Employer" means any person, natural or juridical,
employing the services of the employee.
g. "Employee" means any person compulsorily covered by
the GSIS under CA 186, as amended, including the members of
th AFP, and any person employed as casual, emergency,
temporary, substitute or contractual, or any person
compulsorily covered by the SSS under RA 1161, as amended.
h. "Person" means any individual, partnership, firm,
association, trust, corporation or legal representative thereof:
BOOK V LABOR RELATIONS
TITLE I POLICY AND DEFINITIONS
Art 212. Definitions -
e. "Employer" includes any person acting in the interest of an
employer, directly or indirectly. The term shall NOT include any
labor organization or any of its officers or agents EXCEPT when
acting as employer. 2
f. "Employee" includes any person in the employ of an
employer. The term shall not be limited to the employees of a
particular employer, unless the Code so explicitly states. It shall
include any individual whose work has ceased as a result of or
in connection with any current labor dispute3 or because of
any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.4
Factors/Tests
S Y V . C OURT OF A PPEALS (2003)
Jaime Sahot worked as a truck driver for petitioner-company
from when he was 23 years old. When he was already 59 he
went on leave and was terminated upon his return. Petitioners
claim that Sahot is not entitled to separation benefits, not
being an employee of the company but an industrial partner.
2 A labor union is still an institution and it may still hire workers in
their offices
3
E.g. a pending case
HELD: Sahot was an employee and therefore, entitled to
separation pay. The elements to determine the existence of
an EER are:
1. The selection and engagement of the employee;
2. The payment of wages;
3. The power of dismissal; and
4. The employer’s power to control the employee’s
conduct.
The exercise of the power of control is apparent in this case
because it was petitioner who determined where Sahot would
go, what he would do, and how he would do it.
C HAVEZ V . NLRC (2005)
Truck driver Chavez filed with the NLRC a complaint for illegal
dismissal and unfair labor practice against respondent
company. Respondent raised the defense that there existed no
EER as he was an independent contractor. As evidence, the
company showed their “Contract of Service” w/c denominated
Chavez as an “Independent Contractor”.
HELD: Applying the four-fold test, the Court held that Chavez
was an employee as all the four elements are present.
The fact that he was labeled an “Independent Contractor” in
the service contract is irrelevant. The employment status of a
person is defined and prescribed by law and not by what
the parties say it should be.
S OUTH E AST I NTERNATIONAL R ATTAN , I NC . V . J.J.
C OMING (2014)
JJ Coming filed a complaint for illegal dismissal but Rattan Inc.
denied having hired him, stating that he failed to present a
single payslip, voucher or a copy of a company payroll
showing that he rendered service and that he was not in the
list of employees reported to the SSS.
HELD: In resolving the issue of whether such relationship exists
in a given case, substantial evidence – that amount of
relevant evidence which a reasonable mind might accept as
adequate to justify a conclusion – is sufficient.
The fact that he isn’t included in the list of employees to the
SSS is not conclusive proof of the absence of EER nor does the
fact that respondent’s name does not appear in the
payrolls.
For a payroll to be utilized to disprove the employment of a
person, it must contain a true and complete list of the
employee.
In this case, the exhibits offered by petitioners before the NLRC
consisting of copies of payrolls and pay earnings records are only
for the years 1999 and 2000; they do not cover the entire 18-year
period during which respondent supposedly worked for SEIRI
therefore Rattan Inc. is presumed to have maintained a separate
payroll for certain employees or willfully retained a portion of the
payroll.
4Gaining another employment = Overt act that you have severed EER
BUT it must be substantially equivalent OR better.
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13 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
T ESORO , ET AL . V . M ANILA R ETREADERS , I NC . (B ANDAG
(2014)
Tesoro, Ang, and Sharp worked as salesmen for Bandag. Upon
the devt of a franchising scheme, they quit as salesmen and
entered into separate Service Franchise Agreements (SFAs). At
first, Tesoro et al. did not have any problems. After a period,
however, they began to default on their obligation to submit
periodic liquidations of their operational expenses in relation
to the revolving funds provided them. So Bandag terminated
their respective SFAs. They filed a complaint for constructive
dismissal.
HELD: When petitioners agreed to operate the franchise
branches they knew that this substantially changed their
relationships and that they cease working as Bandag’s
salesmen. It was pointed out that Bandag continued, like an
employer, to exercise control over petitioner’s work. It pointed
out that Bandag: (a) retained the right to adjust the price rates
of products and services; (b) imposed minimum processed tire
requirement; (c) reviewed and regulated credit applications;
and (d) retained the power to suspend petitioner’s services for
failure to meet service standards. This is not “control”
contemplated in an EER. Moreover, the revolving funds feature
do not represent wages as they are mere capital advances to
attract franchisees.
L EONEN DISSENT
A franchise agreement is typified by two features: (1)
collaboration and (2) a shared interest (i.e., risk) in the success
or failure, the gains or losses, of the enterprise. These features
indicate that a franchisee is himself engaged in a business
concern, albeit in association with another (i.e., the franchisor).
It is these features which, despite the presence of some degree
of control by the franchisor, negate the existence of an
employer–employee relationship.
Conversely, where an arrangement purporting to be a
franchise agreement does not cater to the mutual interests of
the franchisor and the franchisee — as collaborating
entrepreneurs — and instead reveals a lopsided relation that
funnels gains only to the supposed franchisor, courts must
decline from recognizing it as a valid franchise agreement. It is
an artifice to conceal and circumvent safeguards established
by law — such as security of tenure — courts must refuse to
sanction such an illicit and iniquitous arrangement.
Relations pertaining to labor and employment are impressed
with public interest. As such, contracts designed to circumvent
the legal requirement of security of tenure run afoul of our
laws and of public policy. Article 1409 of the Civil Code
identifies as inexistent and void from the beginning those
contracts whose cause, object or purpose is contrary to law,
morals, good customs, public order or public policy. The SFAs
are, therefore, void.
B ENIGNO , ET AL . V . ABS-CBN C ORPORATION (2015)
Begino et al have been working for ABS-CBN under Talent
Contracts for almost 10 years. These talent contracts were
regularly renewed with terms ranging from 3 months to 1 year.
They filed a case against the company seeking regularization,
overtime pay, holiday pay, etc. ABS-CBN, in reply, denied the
regularization as due to unpredictability of viewer preferences,
the company cannot afford to provide regular work for talents
with whom it negotiates professional fees on a per project,
weekly/daily basis.
HELD: The test to determine whether employment is regular or
not is the reasonable connection between the activity
performed by the employee in relation to the business or
trade of the employer. As cameramen/editors and reporters,
petitioners were undoubtedly performing functions necessary
and essential to ABS-CBN’s business of broadcasting television
and radio content.
Aside from the fact that said program is a regular weekday
fare of ABS at that province, records shows that petitioners
were continuously re-hired over the years. Such repeated
hiring positively indicates that the latter were ABS-CBN’s
regular employees. An employment stops being co-
terminous with specific projects where the employee is
continuously re-hired due to the demands of the
employer’s business.
It also appears that petitioners were subject to the control and
supervision of respondents as their Talent Contracts provided
that ABS retained “all creative, administrative, financial and
legal control” of the program to which they were assigned.
Evidence of Employee Status
B ERNARD A. TENAZAS , ET AL ., V . R. V ILLEGAS T AXI
T RANSPORT (2014)
Jaime Francisco and 2 others filed a complaint for illegal
dismissial against R. Villegas Taxi Transport, who denied
employing him.
HELD: No particular form of evidence is required to prove
the existence of an EER, but a mere allegation in a position
paper is insufficient. In this case, Francisco failed to present
sufficient evidence to prove regular employment such as
company ID, SSS membership, withholding tax certificates or
similar articles. The burden of proof rests upon the party
who asserts the affirmative of an issue.
Burden of Proving Employer-Employee Relationship
B ITOY J AVIER V . F LY ACE C ORPORATION (2012)
Bitoy Javier claimed to be an employee of respondent
corporation, tasked with cleaning and arranging canned goods
and accompanying delivery vehicles on trips. One day, he was
simply not allowed to enter the premises. As it turns out, his
immediate superior was courting his daughter who rejected
the former’s advances. This prompted Javier to file a complaint
for illegal dismissal.
HELD: Javier was not able to prove the existence of an
employer-employee relationship. The rule of liberality in
favour of labor does not mean complete dispensation of
proof.
Piercing the Veil of Corporate Entity
P AMPLONA P LANTATION C O ., I NC . V . T INGHIL (2005)
Respondents are employees of petitioner and its sister
company, Pamplona Plantation Leisure Corporation. Following
a meeting with the members of the Pamplona Plantation
Independent Labor Union, company manager Bondoc refused
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to allow respondents to continue working. This prompted the
latter to file complaints for illegal dismissal. Pamplona argues
that respondents only specified that they had worked in the
golf course and performed related jobs in the recreational
facilities of the leisure corporation, and not in the plantation.
Hence, they claim that they are not the real party in interest, as
it is a sugar and coconut plantation company separate and
distinct from the Pamplona Plantation Leisure Corporation.
HELD: The Court denies this. This fiction of law cannot be
invoked to further an end contrary to justice.
1. The golf course and the coconut plantation are under the
same management (whom the laborers deal with).
2. A portion of the plantation has been converted into a golf
course and other recreational facilities.
3. The weekly payrolls received bore the name of Pamplona
Plantation Co., Inc. (only one payroll)
4. All of the respondents received their pay from petitioner
Bondoc. (same incorporators and directors, same office)
The principle requiring the piercing of the corporate veil
mandates courts to see through the protective shroud that
distinguishes one corporation from a seemingly separate
one. Where badges of fraud exist, where public convenience is
defeated, where a wrong is sought to be justified thereby, or
where a separate corporate identity is used to evade financial
obligations to employees or to third parties, the notion of
separate legal entity should be set aside and the factual truth
upheld.
S ARONA V . NLRC, ET AL . (2012)
“The doctrine of piercing the corporate veil is applicable on
alter ego cases, where a corporation is merely a farce since it is
a mere alter ego or business conduit of a person, or where the
corporation is so organized and controlled and its affairs so
conducted as to make it merely an instrumentality, agency or
adjunct of another.”
I N D E P E N D E N T C O N TR A C T O R A N D L A B O R - O N L Y
C O N TR A C TO R
Article 106. Contractor or subcontractor. - Whenever an
employer enters into a contract with another person for the
performance of the former’s work, the employees of the
contractor and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay
the wages of his employees in accordance with this Code, the
employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent of
the work performed under the contract, in the same manner
and extent that he is liable to employees directly employed by
him.
The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the contracting out
of labor to protect the rights of workers established under this
Code. In so prohibiting or restricting, he may make
appropriate distinctions between labor-only contracting and
job contracting as well as differentiations within these types of
contracting and determine who among the parties involved
shall be considered the employer for purposes of this Code, to
prevent any violation or circumvention of any provision of this
Code.
xx
Requirements for Independent Contractor; Trilateral
Relationship
DO 18- A (2011)
R ULES I MPLEMENTING 106-109 OF THE LC
Section 3. Definition of terms.
(m) TRILATERAL RELATIONSHIP refers to the relationship in
a contracting/subcontracting arrangement where there is a
contract for a specific job, work or service between the
principal and the contractor and a contract of employment
between the contractor and its workers.
There are 3 parties involved in these arrangements: the
principal who decides to farm out a job, work or service to a
contractor; the contractor who has the capacity to
independently undertake the performance of the job, work or
service; and the contractual workers engaged by the
contractor to accomplish the job, work or service.
Section 5. Trilateral relationship in contracting
arrangements; Solidary liability. - In legitimate contracting
or subcontracting arrangement there exists:
(a) An EER between the contractor and the employees it
engaged to perform the specific job, work or service being
contracted; and
(b) A contractual relationship between the principal and the
contractor as governed by the provisions of the Civil Code.
In the event of any violation of any provision of the Labor
Code, including the failure to pay wages, there exists a solidary
liability on the part of the principal and the contractor for
purposes of enforcing the provisions of the Labor Code and
other social legislation, to the extent of the work performed
under the employment contract.
HOWEVER, the principal shall be deemed the direct
employer of the contractor’s employee in cases where there is
a finding by a competent authority of labor-only contracting,
or commission of prohibited activities as provided in Section 7,
or a violation of either Sections 8 or 9 thereof.
S AN M IGUEL C ORP . V . S EMILLANO (2010)
AMPCO hired respondents to work in SMC’s bottling plant.
After rendering 6 months of service, they were no longer
allowed to enter the premises of the plant. They filed a
complaint for illegal dismissal.
HELD: AMPCO was indeed a labor-only contractor. Despite the
fact that it had an independent business (trading), it was not
able to prove that it had substantial capital or investment in
the form of tools, machinery, etc. The tools and equipment
used by the respondents actually belong to SMC. Neither did it
exercise the power of control over respondents as they always
have to wait for instructions from SMC’s supervisor. The fact
that AMPCO is registered in accordance with the Rules does
not mean it cannot be a labor-only contractor. The fact of
registration merely prevents the presumption of labor-only
contracting from arising.
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C OCA -C OLA B OTTLERS P HIL ., I NC . V . NLRC (1999)

Service Agreement COCA COLA entered into a contract of janitorial services with
DO 18- A (2011) Bacolod Janitorial Services (BJS). COCA COLA hired Canonicato
R ULES I MPLEMENTING 106-109 OF THE LC as a casual employee and terminated him after a few months.
Section 3. Definition of terms. He was hired again for painting services which lasted for 30
(j) “Service Agreement” - contract between the principal and days. Canonicato was hired by BJS and was assigned to COCA
contractor containing the terms and conditions governing the COLA. He filed a complaint against COCA COLA for
performance or completion of a specific job, work or service regularization to the Labor Arbiter w/c the LA denied.
being farmed out for a definite or predetermined period. HELD: Canonicato was not a regular employee of Coca Cola.
The Court took judicial notice of the prevailing practice of
Section 9. Required contracts under these Rules.-
hiring janitorial services on an ‘Independent Contractor’ basis.
(a) Employment contract (b) Service Agreement
The definition that regular employees are those who perform
between the contractor and between the principal and
activities which are desirable and necessary for the business of
its employee. the contractor.
the employer is not determinative in this case. Any agreement
i. The specific description of the job, work or service may provide that one party shall render services for and in
ii. Place of work and terms and conditions of employment, behalf of another for a consideration (no matter how
including a statement of the wage rate applicable to the necessary for the latter's business) even without being
individual employee hired as an employee. Thus, although directly related to
iii. Term or duration of iii. Provisions ensuring the business of an employer, such services are deemed
employment that must be co- compliance w/ all the rights unnecessary in the conduct of its regular or official
extensive with the Service & benefits of the employees business.
Agreement or with the under the LC & these Rules
specific phase of work iv. Provision on the Net Labor Contractor Only; Requisites and Prohibition
The contractor shall inform Financial Contracting Article 106. Contractor or subcontractor. - xx
the employee of the Capacity of the contractor,
There is "labor-only" contracting where the person supplying
foregoing terms and w/c must be equal to the
workers to an employer does not have substantial capital or
conditions of employment in total contract cost.
investment in the form of tools, equipment, machineries, work
writing on or before the first v. Provision on the issuance
premises, among others, and the workers recruited and placed
day of his/her employment. of the bond/s as defined in
by such person are performing activities which are directly
Section 3(m) renewable yrly.
related to the principal business of such employer. In such
vi. The contractor or
cases, the person or intermediary shall be considered merely
subcontractor shall directly
as an agent of the employer who shall be responsible to the
remit monthly the employers’
workers in the same manner and extent as if the latter were
share and employees’
directly employed by him.
contribution to the SSS, ECC,
Philhealth & Pagibig.
vii. The term or duration of DO 18- A (2011)
engagement. R ULES I MPLEMENTING 106-109 OF THE LC
Section 4. Legitimate Section 6. Prohibition
Elements of Independent Contracting contracting or against labor-only
1. Parties – the principal must contract with the contractor, and
subcontracting. - contracting. – Labor-only
Contracting or contracting shall refer to an
the latter with its employees.
subcontracting shall be arrangement where:
2. Specific job – contemplates the performance of a job, work,
legitimate if all the following (a) The contractor does not
or service.
circumstances concur: have substantial capital or
3. Period – must be definite or predetermined. (a) The contractor must be investments in the form of
4. Location – may be within or outside the premises of the registered in accordance tools, equipment,
principal’s place of work. with these Rules and carries machineries, work premises,
a distinct and independent among others, and the
What is Substantial Capital? business and undertakes to employees recruited and
 P3 million in paid-up capital stocks/shares for corporations, perform the job, work or placed are performing
partnerships, or cooperatives. service on its own activities which are usually
 P3 million net worth for a single proprietorship. responsibility, according to its necessary or desirable to the
 Tools, equipment, implements, machineries and work own manner and method, operation of the company, or
and free from control and directly related to the main
premises actually and directly used by the contractor or sub-
direction of the principal in all business of the principal
contractor for the performance of work contracted out.
matters connected with the within a definite or
performance of the work predetermined period,
Desirable – Unnecessary
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except as to the results regardless of whether such
thereof; job, work or service is to be
(b) The contractor has performed or completed
substantial capital and/or within or outside the
investment; and premises of the principal; or
(c) The “service agreement” (b) The contractor does not
ensures compliance with all exercise the right to control
the rights and benefits under over the performance of the
Labor Laws. work of the employee.
Effect of A Contractor’s Failure To Register
A presumption of labor-only contracting arises.
P OLYFOAM -RGC I NTERNATIONAL C ORP . V . E DGARDO
C ONCEPCION (2012)
After having worked for petitioner for 6 years as an all-around
factory worker, Edgardo Concepcion came to work one day to
find his time card missing. He had been dismissed. He filed a
complaint for illegal dismissal against Polyfoam. PAGES moved
to intervene on the ground that it was Concepcion’s employer.
HELD: PAGES is a labor-only contractor. In this case,
petitioners failed to adduce evidence that PAGES had any
substantial capital, investment or assets to perform the work
contracted for. Furthermore, it did not carry on an
independent business as it’s shown that its apparent role
having been merely to recruit persons to work for Polyfoam.
P ETRON V . C ABERTE (2015)
Respondents were workers at Petron for 20 years. Later on,
they formed ABC company which was contracted by Petron.
They were later fired. Petron claims ABC was an independent
contractor.
HELD: Where the principal is the one claiming that the
contractor is a legitimate contractor, the burden of
proving the supposed status of the contractor rests on the
principal. To determine whether a contractor is engaged in
labor-only contracting or permissible job contracting, the
totality of the facts and the surrounding circumstances of the
case are to be considered.
Solidary Liability of Indirect Employer/Direct
Employer,
Article 107. Indirect employer. - The provisions of the
immediately preceding article shall likewise apply to any
person, partnership, association or corporation which, not
being an employer, contracts with an independent contractor
for the performance of any work, task, job or project.
Article 109 Solidary liability. - The provisions of existing laws
to the contrary notwithstanding, every employer or indirect
5Also called “Statutory employers”
6
“Cabo” refers to a person or group of persons or to a labor group
which, in the guise of a labor organization, cooperative or any entity,
supplies workers to an employer, with or without any monetary or
other consideration, whether in the capacity of an agent of the
employer or as an ostensible independent contractor.
employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code.
For purposes of determining the extent of their civil liability
under this Chapter, they shall be considered as direct
employers.5
DO 18- A (2011)
R ULES I MPLEMENTING 106-109 OF THE LC
Section 27. Effects of finding of labor-only contracting
and/or violation of Sections 7,8 or 9 of the Rules. – A
finding by competent authority or labor-only contracting shall
render the principal jointly and severally liable with the
contractor to the latter’s employees, in the same manner and
extent that the principal is liable to employees directly hired by
him/her, as provided in Article 106 of the Labor Code, as
amended.
A finding of commission of any of the prohibited activities in
Sec 7 or violation of either Secs 8 or 9 hereof, shall render the
principal the direct employer of the employees of the
contractor/subcontractor, pursuant to Article 109 of the Labor
Code, as amended.
Section 7. Other Prohibitions. - Notwithstanding Section 6 of
these Rules, the following are hereby declared prohibited for
being contrary to law or public policy:
A. Contracting out of jobs, works or services when not done in
good faith and not justified by the exigencies of the business
such as the following:
a. Contracting out of jobs, works or services when the same
results in the termination or reduction of regular
employees and reduction of work hours or reduction
or splitting of the bargaining unit.
b. Contracting out of work with a “Cabo”.6
c. Taking undue advantage of the economic situation or
lack of bargaining strength of the contractor’s
employees, or undermining their security of tenure or
basic rights, or circumventing the provisions of regular
employment, in any of the following instances:
i. Requiring them to perform functions which are
currently being performed by the regular employees
of the principal; and
ii. Requiring them to sign, as a precondition to
employment or continued employment, an antedated
resignation letter; a blank payroll; a waiver of labor
standards including minimum wages and social or
welfare benefits; or a quitclaim releasing the principal,
contractor or from any liability as to payment of future
claims.
d. Contracting out of a job, work or service through an in-
house agency. 7
e. Contracting out of a job, work or service that is necessary
or desirable or directly related to the business or
7“In-house agency” refers to a contractor which is owned, managed,
or controlled directly or indirectly by the principal or one where the
principal owns/represents any share of stock, and which operates
solely or mainly for the principal.
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operation of the principal by reason of a strike or
lockout whether actual or imminent.
f. Contracting out of a job, work or service being performed
by union members when such will interfere with, restrain
or coerce employees in the exercise of their rights to self-
organization
g. Repeated hiring of employees under an employment
contract of short duration or under a Service
Agreement of short duration with the same or different
contractors, which circumvents the Labor Code provisions
on Security of Tenure.
h. Requiring employees under a subcontracting
arrangement to sign a contract fixing the period of
employment to a term shorter than the term of the
Service Agreement, UNLESS the contract is divisible into
phases for which substantially different skills are
required and this is made known to the employee AT
THE TIME of engagement.
i. Refusal to provide a copy of the Service Agreement and
the employment contracts between the contractor and
the employees deployed to work in the bargaining unit of
the principal’s certified bargaining agent to the sole and
exclusive bargaining agent (SEBA).
j. Engaging or maintaining by the principal of subcontracted
employees in excess of those provided for in the
applicable CBA or as set by the Industry Tripartite
Council (ITC).
B. Contracting out of jobs, works or services analogous to the
above when not done in good faith and not justified by
the exigencies of the business.
Section 8. Rights of contractor’s employees. - All
contractor’s employees, shall be entitled to all the rights and
privileges as provided for in the LC to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as but not limited to service incentive
leave, rest days, overtime pay, holiday pay, 13th month pay,
and separation pay as may be provided in the Service
Agreement or under the Labor Code;
(c) Retirement benefits under the SSS or retirement plans of
the contractor, if there is any;
(d) Social security and welfare benefits;
(e) Self-organization, collective bargaining and peaceful
concerted activities; and
(f) Security of tenure.
E PARWA S ECURITY AND J ANITORIAL S ERVICES , I NC . V .
L ICEO DE C AGAYAN U NIVERSITY (2007)
Petitioner and respondent entered into a contract for security
services. 11 security guards filed a complaint for
underpayment of wages, legal holiday pay, and 13th month
pay, among others. LDCU filed a cross-claim against Eparwa
for reimbursement. The LA held both parties solidarily liable
and LDCU is entitled to reimbursement from Eparwa.
8The joint and several liability is mandated by the LC to assure
compliance of the provisions therein including the statutory min.
wage. This liability facilitates, if not guarantees, payment of the
HELD: LDCU is not entitled to reimbursement. Being the
principal, it bears the burden of paying wage differentials
to the employees, even if the latter are employed by the
independent contractor. There is solidary liability only
because it doesn’t matter to the security guards who pays:
What matters is they are paid.8 But ultimately, it is LDCU which
should be held accountable for the wage differentials.
B ENIGNO M. V IGILLA , ET AL . V . P HILIPPINE C OLLEGE OF
C RIMINOLOGY , I NC . AND / OR G REGORY ALAN F. B AUTISTA
(2013)
Petitioners were janitors, janitresses and supervisor in the
Maintenance Department of respondent Philippine College of
Criminology (PCCr). However, petitioners were made to
understand that they were under MBMSI, a janitorial service. In
2008, PCCr terminated their relationship with MBMSI.
Petitioners filed complaints for illegal dismissal.
HELD: PCCr and MBMSI are engaged in labor-only contracting
and are thus solidarily liable to whatever money claims
contractual employees may have. However, due to the
quitclaim in favour of MBMSI, liability has been extinguished.
Such releases, waivers, and quitclaims in favor of the
contractor will redound to the benefit of the principal.9
Pre-employment, Recruitment and
Placement of Workers
P R E - E M P L O Y M E N T P O L I CY – S T A T E M E N T O F
O B J E C TI VE S
Article 3. Declaration of basic policy. - The State shall afford
protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. xx
Article 12. Statement of objectives. - It is the policy of the
State:
a. To promote and maintain a state of full employment
through improved manpower training, allocation and
utilization;
b. To protect every citizen desiring to work locally or
overseas by securing for him the best possible terms and
conditions of employment;
f. To strengthen the network of public employment offices
and rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas, to
serve national development objectives;
1987 C ONSTITUTION
A RTICLE II – D ECLARATION O F P RINCIPLES A ND S TATE
P OLICIES
Section 9. The State shall promote a just and dynamic social
order that will ensure the prosperity and independence of the
workers’ performance of any work, task, job or project, thus giving the
workers ample protection as mandated by the Constitution.
9 Article 1217 of the Civil Code provides that “payment made by one
of the solidary debtors extinguishes the obligation.”
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nation and free the people from poverty through policies that
provide adequate social services, promote full employment,
a rising standard of living, and an improved quality of life for
all.
A RTICLE XIII – S OCIAL J USTICE A ND H UMAN R IGHTS
Section 3. The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for
all.
RA 8042, AS AMENDED BY RA 10022
M IGRANT WORKERS AND O VERSEAS F ILIPINOS A CT OF
1995
Section 2. Declaration of Policies. -
(a) In the pursuit of an independent foreign policy and while
considering national sovereignty, territorial integrity, national
interest and the right to self-determination paramount in its
relations with other states, the State shall, at all times, uphold
the dignity of its citizens whether in country or overseas, in
general, and Filipino migrant workers, in particular.
(b) The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
Towards this end, the State shall provide adequate and timely
social, economic and legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino
migrant workers to the national economy through their
foreign exchange remittances, the State does NOT promote
overseas employment as a means to sustain economic
growth and achieve national development. The existence of
the overseas employment program rests solely on the
assurance that the dignity and fundamental human rights and
freedoms of the Filipino citizens shall not, at any time, be
compromised or violated. The State, therefore, shall
continuously create local employment opportunities and
promote the equitable distribution of wealth and the benefits
of development.
(d) The State affirms the fundamental equality before the law
of women and men and the significant role of women in
nation-building. Recognizing the contribution of overseas
migrant women workers and their particular vulnerabilities, the
State shall apply gender sensitive criteria in the formulation
and implementation of policies and programs affecting
migrant workers and the composition of bodies tasked for the
welfare of migrant workers.
(e) Free access to the courts and quasi-judicial bodies and
adequate legal assistance shall not be denied to any persons
by reason of poverty. In this regard, it is imperative that an
effective mechanism be instituted to ensure that the rights and
interest of distressed overseas Filipinos, in general, and Filipino
migrant workers, in particular, documented or undocumented,
are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas
Filipinos to participate in the democratic decision-making
processes of the State and to be represented in institutions
relevant to overseas employment is recognized and
guaranteed.
(g) The State recognizes that the ultimate protection to all
migrant workers is the possession of skills. Pursuant to this and
as soon as practicable, the government shall deploy and/or
allow the deployment only to skilled Filipino workers.
(h) Non-governmental organizations, duly recognized as
legitimate, are partners of the State in the protection of
Filipino migrant workers and in the promotion of their welfare,
the State shall cooperate with them in a spirit of trust and
mutual respect.
(I) Government fees and other administrative costs of
recruitment, introduction, placement and assistance to migrant
workers shall be rendered free without prejudice to the
provision of Section 36 hereof.
Nonetheless, the deployment of Filipino overseas workers,
whether land-based or sea-based by local service contractors
and manning agencies employing them shall be encouraged.
Appropriate incentives may be extended to them.
Section 4. Deployment of Migrant Workers. - The State
shall deploy overseas Filipino workers ONLY in countries
where the rights of Filipino migrant workers are protected.
The govt recognizes any of the following as guarantee on the
part of the receiving country for the protection & the rights of
OFWs:
(a) It has existing labor and social laws protecting the rights of
migrant workers;
(b) It is a signatory to multilateral conventions, declaration or
resolutions relating to the protection of migrant workers;
(c) It has concluded a bilateral agreement or arrangement with
the government protecting the rights of overseas Filipino
workers; and
(d) It is taking positive, concrete measures to protect the rights
of migrant workers.
Section 5. Termination or Ban on Deployment -
Notwithstanding the provisions of Section 4 hereof, the
government, in pursuit of the national interest or when public
welfare so requires, may, at any time, terminate or impose a
ban on the deployment of migrant workers.
P R I VA T E S E C T O R – A G E N CI E S AN D E N TI TI E S
Parties
Worker
Article 13. Definitions. — (a) “Worker” means any member
of the labor force, whether employed or unemployed.
RA 8042, AS AMENDED BY RA 10022
Section 3. Definitions. — For purposes of this Act:
(a) “Overseas Filipino Worker” refers to a person who is to
be engaged, is engaged or has been engaged in a
remunerated activity in a state of which he or she is not a
citizen or on board a vessel navigating the foreign seas other
than a government ship used for military or non-commercial
purposes or on an installation located offshore or on the high
seas; to be used interchangeably with migrant worker.
Private Employment Agency
Article 13. Definitions. —
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(c) “Private fee-charging employment agency” - any person
or entity engaged in recruitment and placement of workers for
a fee which is charged, directly/indirectly, from the
workers/employers/both.
(d) “License” means a document issued by the Department of
Labor authorizing a person or entity to operate a private
employment agency.
Article 12. Statement of objectives. —
(f) To strengthen the network of public employment offices
and rationalize the participation of the private sector in the
recruitment and placement of workers, locally & overseas, to
serve national development objectives;
Article 14. Employment promotion. — The Secretary of
Labor shall have the power and authority:
(a) To organize and establish new employment offices in
addition to the existing employment offices under the
Department of Labor as the need arises;
Private Recruitment Entity
Article 13. Definitions. —
(e) “Private recruitment entity” - any person/assoc. engaged
in the recruitment & placement of workers, locally/overseas,
without charging, directly/indirectly, any fee
(f) “Authority” - doc issued by DOLE authorizing a person/
assoc to engage in recruitment & placement activities as a
private recruitment entity.
Government Agencies in Charge of Recruitment & Placement
•Local employment – Bureau of Local Employment (BLE); and
•Overseas employment – Philippine Overseas Employment
Administration (POEA).
Recruitment and Placement
Local Employment
Article 13. Definitions. —
(b) “Recruitment and placement” - any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or
procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad,
whether for profit or not: PROVIDED, That any person or entity
which, in any manner, offers or promises for a fee,
employment to two or more persons shall be deemed
engaged in recruitment and placement.
Overseas Employment
RA 8042, AS AMENDED BY RA 10022
Section 6. Definition. — For purposes of this Act, illegal
recruitment shall mean any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, or procuring workers
and includes referring, contract services, promising or
advertising for employment abroad, whether for profit or not,
when undertaken by non-licensee or non -holder of authority
contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the
Philippines: Provided, That any such non-licensee or non-
holder who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed
so engaged.
Allowed and Protected Entities
Allowed Private Agencies and Entities
Article 16. Private recruitment. - Except as provided in
Chapter II of this Title, NO person or entity other than the
public employment offices, shall engage in the recruitment
and placement of workers.
Article 25. Private sector participation in the recruitment
and placement of workers. - Pursuant to national
development objectives and in order to harness and maximize
the use of private sector resources and initiative in the
development and implementation of a comprehensive
employment program, the private employment sector shall
participate in the recruitment and placement of workers,
locally and overseas, under such guidelines, rules and
regulations as may be issued by the Secretary of Labor.
Article 18. Ban on direct-hiring. - No employer may hire a
Filipino worker for overseas employment except through the
Boards and entities authorized by the Secretary of Labor.
Direct-hiring by members of the diplomatic corps,
international organizations and such other employers as
may be allowed by the Secretary of Labor is exempted from
this provision.
Article 12. Statement of objectives. - It is the policy of the
State:
f. To strengthen the network of public employment offices and
rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas, to
serve national development objectives
2002 POEA R ULES & R EGULATIONS
P ART II, R ULE I
Section 1. Qualifications. — ONLY those who possess the
following qualifications may be permitted to engage in the
business of recruitment and placement of Filipino workers:
xx
Entities Allowed To Recruit And Place Workers For Overseas
Employment
 Public employment offices
 Private employment sector
o Private fee-charging employment agencies
o Private recruitment entities
 Members of the Diplomatic Corps
 International Organizations (e.g. IRRI, ICRC)
 Such other employers as maybe allowed by the SOLE
ARTICLE 18 DOES NOT INCLUDE NAME-HIRES
Name-hires are those who are able to secure employment
without intervention of any agency or entity. Their employment
still has to be processed by the POEA
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Prohibited Business Agencies and Entities
Article 26. Travel agencies prohibited to recruit. -Travel
agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for
profit or not.
2002 POEA R ULES & R EGULATIONS
P ART II, R ULE I
Section 2. Disqualification. — The following are NOT
qualified to engage in the business of recruitment and
placement of Filipino workers overseas:
a. Travel agencies and sales agencies of airline companies;
b. Officers or members of the Board of any corporation or
members in a partnership engaged in the business of a travel
agency;
c. Corporations and partnerships, when any of its officers,
members of the board or partners, is also an officer, member
of the board or partner of a corporation or partnership
engaged in the business of a travel agency;
d. Persons, partnerships or corporations which have
derogatory records, such as but not limited to the following:
1. Those certified to have derogatory record or information
by the National Bureau of Investigation or by the Anti-
Illegal Recruitment Branch of the POEA;
2. Those against whom probable cause or prima facie
finding of guilt for illegal recruitment or other related
cases exists;
3. Those convicted for illegal recruitment or other related
cases and/or crimes involving moral turpitude; and
4. Those agencies whose licenses have been previously
revoked or cancelled by the Administration for violation
of RA 8042, PD 442 as amended and their implementing
rules and regulations as well as these rules and
regulations.
All applicants for issuance/renewal of license shall be required
to submit clearances from the National Bureau of Investigation
and Anti-illegal Recruitment Branch, POEA, including
clearances for their respective officers and employees.
e. Any official or employee of the DOLE, POEA, OWWA, DFA
and other government agencies directly involved in the
implementation of R.A. 8042, otherwise known as Migrant
Workers and Overseas Filipino Act of 1995 and/or any of
his/her relatives within the fourth civil degree of consanguinity
or affinity; and
f. Persons or partners, officers and Directors of corporations
whose licenses have been previously cancelled or revoked for
violation of recruitment laws.
H ORNALES V . NLRC (2001)
Hornales was employed by JEAC on behalf of Step Up agency
as a fisherman in Singapore. While there, he was maltreated
and subjected to inhumane working conditions. Upon
repatriation, he filed a complaint against JEAC which denied
knowing Step Up Agency or Min Fee Fishery, the company he
worked for (“Total Strangers Theory”) and further alleged that
there exists no POEA approved employment contract.
HELD: Among the evidence presented were photocopies of
checks issued by Cayanan, owner of JEAC to represent
advances to Hornales’ family while he was in Singapore and an
agreement wherein Hornales authorized Victor Lim to deduct
this advances from his salary. The mere presentation of these
documents bearing private respondents names and that of
Step-Up Agency and Lim is enough to defeat their extreme
"total strangers theory."
Though, the Revised Rules on Evidence requires original
documents for evidence to be admissible, exceptions are
provided when the original cannot be produced (or lost or
destroyed, etc.) such as in this case because the checks are
with the bank while the agreements are with Cayanan. Besides,
the proceedings before the POEA are non-litigious in nature.
Government Techniques of Regulation – Private
Recruitment
Licensing
Qualifications
Article 27. Citizenship requirement. - ONLY Filipino citizens
or corporations, partnerships or entities at least seventy-five
percent (75%) of the authorized & voting capital stock of
which is owned and controlled by Filipino citizens shall be
permitted to participate in the recruitment and placement of
workers, locally or overseas.
Article 28. Capitalization. - All applicants for authority to hire
or renewal of license to recruit are required to have such
substantial capitalization as determined by the Secretary of
Labor.
2002 POEA R ULES & R EGULATIONS
P ART II, R ULE I
Section 1. Qualifications. — Only those who possess the
following qualifications may be permitted to engage in the
business of recruitment and placement of Filipino workers:
a. Filipino citizens, partnerships or corporations at least
seventy five percent (75%) of the authorized capital stock of
which is owned and controlled by Filipino citizens;
b. A minimum capitalization of Two Million Pesos
(P2,000,000.00) in case of a single proprietorship or
partnership and a minimum paid-up capital of Two Million
Pesos (P2,000,000.00) in case of a corporation; Provided that
those with existing licenses shall, within four years from
effectivity hereof, increase their capitalization or paid up
capital, as the case may be, to Two Million Pesos
(P2,000,000.00) at the rate of Two Hundred Fifty Thousand
Pesos (P250,000.00) every year.
c. Those not otherwise disqualified by law or other
government regulations to engage in the recruitment and
placement of workers for overseas employment.
Overseas Local
Min. Cap/Paid-up Cap: 2M in Min. Cap: 1M - single
case of single proprietorship/partnership
proprietorship/partnership or
corporation
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Min Paid-up Cap: 1M -
corporation10
Issuance of License
Article 29. Non-transferability of license or authority. - No
license or authority shall be used directly or indirectly by any
person other than the one in whose favor it was issued or at
any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or
entity. Any transfer of business address, appointment or
designation of any agent or representative including the
establishment of additional offices anywhere shall be subject
to the prior approval of the Department of Labor.
Article 30. Registration fees. - The Secretary of Labor shall
promulgate a schedule of fees for the registration of all
applicants for license or authority.
Article 31. Bonds. - All applicants for license or authority shall
post such cash and surety bonds as determined by the
Secretary of Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms and
conditions of employment as may be appropriate.
2002 POEA R ULES & R EGULATIONS
P ART II, R ULE II
Section 4. Payment of Fees and Posting of Bonds. — Upon
approval of the application, the applicant shall pay a license
fee of P50,000.00. It shall submit an Escrow Agreement in the
amount of P1,000,000.00, confirmation of escrow deposit with
an accredited reputable bank and a surety bond of
P100,000.00 from a bonding company acceptable to the
Administration and accredited with the Insurance Commission.
Agencies with existing licenses shall, within four years from
effectivity hereof, increase their Escrow Deposit to One Million
Pesos.
The bonds and escrow shall answer for all valid and legal
claims arising from violations of the conditions for the grant
and use of the license, and/or accreditation and contracts of
employment. The bonds and escrow shall likewise guarantee
compliance with the provisions of the Code and its
implementing rules and regulations relating to recruitment
and placement, the Rules of the Administration and relevant
issuances of the Department and all liabilities which the
Administration may impose. The surety bonds shall include the
condition “that notice to the principal is notice to the surety
and that any judgment against the principal in connection with
matters falling under POEA’s/NLRC’s jurisdiction shall be
binding and conclusive on the surety. The surety bonds shall
cover the validity period of the license.
Section 5. Provisional License. — Applicants for new license
shall be issued a provisional license which shall be valid for a
limited period of one (1) year within which the applicant
should be able to comply with its undertaking to deploy 100
workers to its new principal. The license of a complying agency
shall be upgraded to a full license entitling them to another
10
Pursuant to DO 141-14
three years of operation. Non-complying agencies will be
notified of the expiration of their license.
Section 6. Validity of the License. — Except in case of a
provisional license, every license shall be valid for four (4) years
from the date of issuance unless sooner cancelled, revoked or
suspended for violation of applicable Philippine law, these
rules and other pertinent issuances. Such license shall be valid
only at the place/s stated therein and when used by the
licensed person, partnership or corporation.
Section 7. Non-Transferability of License. — No license shall
be transferred, conveyed or assigned to any person,
partnership or corporation. It shall not be used directly or
indirectly by any person, partnership or corporation other than
the one in whose favor it was issued.
In case of death of the sole proprietor and to prevent
disruption of operation to the prejudice of the interest of
legitimate heirs, the license may be extended upon request of
the heirs, to continue only for the purpose of winding up
business operations.
Section 8. Change of Ownership/Relationship of Single
Proprietorship or Partnership. — Transfer or change of
ownership of a single proprietorship licensed to engage in
overseas employment shall cause the automatic revocation
of the license.
A change in the relationship of the partners in a
partnership duly licensed to engage in overseas employment
which materially interrupts the course of the business or
results in the actual dissolution of the partnership shall
likewise cause the automatic revocation of the license.
Section 9. Upgrading of Single Proprietorship or
Partnerships. — License holders which are single
proprietorships or partnerships may, subject to the guidelines
of the Administration, convert into corporation for purposes of
upgrading or raising their capabilities to respond adequately
to developments/changes in the international labor market
and to enable them to better comply with their responsibilities
arising from the recruitment and deployment of workers
overseas.
The approval of merger, consolidation or upgrading shall
automatically revoke or cancel the licenses of the single
proprietorships, partnerships or corporations so merged,
consolidated or upgraded.
Conduct of Business
• Only at the authorized business address; Cannot be done in
houses or secluded places.
• Cannot be transferred to another person/entity
• Any change of address, appointment/designation of any
agent or rep  subj. to prior approval
Bond Requirement
Overseas Local
License Fee: 50k License Fee: 15k
to be paid BEFORE approval
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to be paid UPON approval Cash Bond: 50k promissory note for P10,000. She also authorized the
and confirmation Surety: 100k deduction of NT$60,000 from her salary. She went to Taiwan
Escrow: 1M Validity: 2 yrs and was made to work as a domestic helper and also in a
Surety: 100k Refund? Upon voluntary poultry farm. Upon her return, she filed a complaint with the
Validity: covers period of surrender of license valid POEA for violation of Arts. 32, 34 (a) and (b), LC. Her complaint
validity of the license  4yrs 3yrs after expiration11 was dismissed.
Refund? Upon voluntary HELD: The evidence presented was insufficient to prove that
surrender of license  valid Sunace charged petitioner excessive fees. Mere general
4yrs from expiration allegations of payment of excessive placement fees cannot be
given merit as the charge of illegal exaction is considered a
When is there Automatic Revocation grave offense which could cause the suspension or
 Death of the SOLE proprietor BUT license MAY be cancellation of the agency’s license. They should be proven
and substantiated by clear, credible, and competent evidence.
extended for the purposes of winding up the business
Although a receipt (for payment of placement fees issued by
 Transfer or change of ownership of a single
the agency) is NOT conclusive evidence, failure to disclose
proprietorship any other evidence sufficient and strong enough to overturn
 A change in the relationship of the partners in a the acknowledgment embodied in the agent’s receipt as to
partnership which MATERIALLY INTERRUPTS the course the amount it actually received from the applicant binds the
of the business OR RESULTS IN THE ACTUAL applicant to the contents of the receipt issued.
DISSOLUTION of the partnership
 Upon approval of merger, consolidation or upgrading Reports/Employment Information
Article 33. Reports on employment status. - Whenever the
Workers’ Fees public interest requires, the Secretary of Labor may direct ALL
Article 32. Fees to be paid by workers. - Any person persons or entities within the coverage of this Title to submit a
applying with a private fee-charging employment agency for report on the status of employment, including job vacancies,
employment assistance shall NOT be charged any fee until details of job requisitions, separation from jobs, wages, other
he has obtained employment through its efforts or has terms and conditions and other employment data.
actually commenced employment. Such fee shall be Article 14. Employment promotion. - The Secretary of Labor
ALWAYS covered with the appropriate receipt clearly showing shall have the power and authority:
the amount paid. The Secretary of Labor shall promulgate a d. To require any person, establishment, organization or
schedule of allowable fees. institution to submit such employment information as may be
prescribed by the Secretary of Labor.
Overseas Local
Governed by Part II, Rule V of the POEA Shall NOT be Illegal Recruitment (See Annex A for comparison of Art. 34
Rules. Section 2. > 20% of and Sec 6 of RA 8042)
Principal is Worker is responsible worker’s first
responsible for: mo’s basic Article 38. Illegal recruitment. –
for:  Placement fee salary; Cannot a. Any recruitment activities, including the prohibited practices
 Visa fees; equivalent to 1mo be charged enumerated under Article 34 of this Code, to be undertaken
 Airfare; salary, exclusive of prior to start by non-licensees or non-holders of authority, shall be
 POEA documentation costs of deemed illegal and punishable under Article 39 of this Code.
processing  Passport; employment. The DOLE or any law enforcement officer may initiate
fees  NBI/Police/Barangay complaints under this Article.
 OWWA clearance; b. Illegal recruitment when committed by a syndicate or in
membership  Authentication; large scale shall be considered an offense involving
fee  Birth certificate; economic sabotage and shall be penalized in accordance
 Medicare; with Article 39 hereof. Illegal recruitment is deemed
 Trade tests; committed by a syndicate if carried out by a group of
 Inoculation; three (3) or more persons conspiring and/or
 Medical exam. confederating with one another in carrying out any
unlawful or illegal transaction, enterprise or scheme defined
under the first paragraph hereof. Illegal recruitment is
S AGUN V . S UNACE I NTERNATIONAL M ANAGEMENT
deemed committed in large scale if committed against
S ERVICES , I NC . (2011)
three (3) or more persons individually or as a group.
Avelina Sagun claimed that respondent hired her to be a
caregiver in Taiwan. She paid P30,000 in cash and executed a

11
Pursuant to Do 141-14
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The Secretary of Labor and Employment or his duly authorized
representatives shall have the power to cause the arrest and
detention of such non-licensee or non-holder of authority if
after investigation it is determined that his activities constitute
a danger to national security and public order or will lead to
further exploitation of job-seekers. The Secretary shall order
the search of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal
recruitment activities and the closure of companies,
establishments and entities found to be engaged in the
recruitment of workers for overseas employment, without
having been licensed or authorized to do so.12
When Liable?
LC RA 8042
Art. 34 Sec. 6
Licensee/Holder
upon commission of any of the
of Authority
prohibited acts provided therein
Non-
Licensee/Holder Art. 38 Sec. 6
of Authority
H ON . P ATRICIA A. S TO . T OMAS V . R EY S ALAC , ET AL .
(2012)
In this case, the Court upheld the constitutionality of Sections
6, 7, 9 and 10 of RA 8042.
Section 6 is clear and unambiguous and, contrary to the RTC’s
finding, actually makes a distinction between licensed and
non-licensed recruiters. By its terms, persons who engage in
"canvassing, enlisting, contracting, transporting, utilizing,
hiring, or procuring workers" without the appropriate
government license or authority are guilty of illegal
recruitment whether or not they commit the wrongful acts
enumerated in that section. On the other hand, recruiters who
engage in the canvassing, enlisting, etc. of OFWs, although
with the appropriate government license or authority, are
guilty of illegal recruitment only if they commit any of the
wrongful acts enumerated in Section 6.
Section 7 which prescribes penalties was also upheld. In fixing
uniform penalties for each of the enumerated acts under
Section 6, Congress was within its prerogative to determine
what individual acts are equally reprehensible, consistent with
the State policy of according full protection to labor, and
deserving of the same penalties. Obviously, in fixing such
tough penalties, the law considered the unsettling fact that
OFWs must work outside the country’s borders and beyond its
immediate protection.
Section 9 of R.A. 8042, as an exception to the rule on venue of
criminal actions is, consistent with that law’s declared policy of
providing a criminal justice system that protects and serves the
best interests of the victims of illegal recruitment.
Section 10 on solidary liability was challenged on due process
grounds, but the challenge failed because the Court clarified
that in order for a director of a juridical entity to be liable, it
12
Declared UNCONSTITUTIONAL in the case of Salazar v Achacoso
must be proven that he or she was remiss in his or her duty or
that he or she actively participated in the illegal recruitment.
Prohibited Practices
RA 8042, AS AMENDED BY RA 10022
Section 6. Definition. —
xx In addition to the acts enumerated above, it shall also be
unlawful for any person or entity to commit the following
prohibited acts:
(1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum, which will
be used for payment of legal and allowable placement fees
and make the migrant worker issue, either personally or
through a guarantor or accommodation party, postdated
checks in relation to the said loan;
(2) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to avail of a
loan only from specifically designated institutions, entities
or persons;
(3) Refuse to condone or renegotiate a loan incurred by an
overseas Filipino worker after the latter’s employment contract
has been prematurely terminated through no fault of his or
her own;
(4) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to undergo
health examinations only from specifically designated
medical clinics, institutions, entities or persons, except in the
case of a seafarer whose medical examination cost is
shouldered by the principal;
(5) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to undergo
training, seminar, instruction or schooling of any kind only
from specifically designated institutions, entities or persons,
EXCEPT for recommendatory trainings mandated by principals
where the latter shoulder the cost of such trainings;
(6) For a suspended recruitment/manning agency to engage in
any kind of recruitment activity including the processing of
pending workers’ applications; and
(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino worker or
deduct from his or her salary the payment of the cost of
insurance fees, premium or other insurance related charges, as
provided under the compulsory worker’s insurance coverage.
xx
S TOLT -N IELSEN T RANSPORTATION G ROUP , I NC . & C HUNG
G AI S HIP M GMT . V . S ULPECIO M EDEQUILLO , J R . (2012)
Madequillo filed a complaint for Illegal dismissal. He only
worked 3 months in his 9 month contract. His second contact,
although noted and approved by POEA was not enforced and
he was not deployed with the vessel.
HELD: Actual deployment of the seafarer is a suspensive
condition for the commencement of the employment.
HOWEVER, even without actual deployment, the perfected
contract gives rise to obligations on the part of petitioners.
The failure to deploy without any justifiable reason creates a
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cause of action for damages, despite the fact that there is no
employer-employee relationship yet.
P EOPLE V . B ERNADETTE P ANSACALA (2012)
It was held that for a case of syndicated illegal recruitment
to prosper, there need not be at least 3 persons who are
actually convicted. Conspiracy among the three accused was
duly proven, despite there being only two of them who were
eventually convicted. As long as it can be shown that the
illegal recruitment was performed through the concerted
efforts of at least 3 persons, a charge for syndicated illegal
recruitment can stand.
Elements of Syndicated Illegal Recruitment:
(1) accused have no valid license or authority reqd by law
(2) accused engaged in this activity of recruitment and
placement by actually recruiting, deploying and transporting.
(3) committed by three persons conspiring and confederating
with one another
P EOPLE V . J ERIC F ERNANDEZ (2014)
The law imposes a higher penalty when the illegal recruitment
is committed by a syndicate or in large scale as they are
considered an offense involving economic sabotage.
Elements of Illegal Recruitment Committed In Large Scale:
(1) accused undertook a recruitment activity under Article
13(b) or any prohibited practice under Article 34;
(2) accused did not have the license or the authority to lawfully
engage in the recruitment and placement of workers; and
(3) accused committed such illegal activity against three or
more persons individually or as a group.
S ALAZAR V . ACHACOSO (2014)
Art. 38 (c) is UNCONSTITUTIONAL. The Constitution
mandates that it is only a judge who may issue warrants of
search and arrest. The Secretary of Labor may no longer do so
in light of this provision and neither may it be done by a mere
prosecuting body . Although his office "is to see that justice is
done and not necessarily to secure the conviction of the
person accused," a prosecutor is naturally interested in the
success of his case.
Enforcement
Regulatory and Rule-Making Power
Article 36. Regulatory power. — The Secretary of Labor
shall have the power to restrict and regulate the recruitment
and placement activities of all agencies within the coverage of
this Title and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives
and implement the provisions of this Title.
Visitorial Power
Article 37. Visitorial Power. — The Secretary of Labor or his
duly authorized representatives may, at any time, inspect the
premises, books of accounts and records of any person or
entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any
provisions of this Title.
POEA Standard Employment Contract
The POEA rules and regulations require that the POEA SEC,
which contains the standard terms and conditions of the
seafarers’ employment in foreign oceangoing vessels, be
integrated in every employment contract.
W ALLEN M ARITIME S ERVICES , I NC . V . E RNESTO C.
T ANAWAN (2012)
Tanawan suffered a foot injury while aboard a vessel owned by
petitioner. Upon his repatriation to the Philippines, he went to
the company-designated physician for diagnosis. After an
operation and physical therapy, the doctor declared him fit for
work. The Court held that Tanawan is entitled to disability
benefits pursuant to the POEA SEC, because despite being
declared fit for work, he was incapacitated for work for more
than 120 days.
Liberal Construction
Provisions of the SEC must be construed and applied fairly,
reasonably, and liberally in favor of the worker.
Terms and Conditions
 Minimum benefits for the workers: such as guaranteed
wages, including OT rate; free food, or allowance; free
transportation, or allowance; free accommodations, or
allowance
 If the terms and conditions are not expressly found in the
employment contract, they are still deemed incorporated.
 There is nothing in the law or the rules which prohibits the
employer from giving more favorable benefits to the
employee. The law just prescribes a minimum standard to be
observed.
ABANTE V . KJGS F LEET M ANAGEMENT , M ANILA (2009)
The diagnosis of a company-designated physician is not
binding on the Court. While it is the company-designated
physician who must declare that the seaman suffers a
permanent disability during employment, it does not
deprive the seafarer of his right to seek a second opinion.
Joint and Several Liability of Agent and Principal
2002 POEA R ULES & R EGULATIONS
P ART II, R ULE II
Section 1. Requirements for Licensing. — Every applicant for
license to operate a private employment agency shall submit a
written application together with the following requirements:
(f) A verified undertaking stating that the applicant:
xx
3. Shall assume joint and solidary liability with the employer
for all claims and liabilities which may arise in connection with
the implementation of the contract, including but not limited
to payment of wages, death and disability compensation and
repatriations; xx
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RA 8042, AS AMENDED BY RA 10022
Section 10. Money Claims. — xx
The liability of the principal/employer and the
recruitment/placement agency for any and all claims under
this section shall be joint and several. This provision shall be
INCORPORATED in the contract for overseas employment and
shall be a condition precedent for its approval. The
performance bond to de filed by the recruitment/placement
agency, as provided by law, shall be answerable for all money
claims or damages that may be awarded to the workers. If the
recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the case
may be, shall themselves be jointly and solidarily liable with
the corporation or partnership for the aforesaid claims and
damages. xx
Jurisdiction
RTC over Criminal Action arising from Illegal Recruitment
RA 8042, AS AMENDED BY RA 10022
Section 9. Venue. — A criminal action arising from illegal
recruitment as defined herein shall be filed with the Regional
Trial Court of the province or city where the offense was
committed OR where the offended party actually resides at the
same time of the commission of the offense: PROVIDED, That
the court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other courts.
PROVIDED, however, That the aforestated provisions shall also
apply to those criminal actions that have already been filed in
court at the time of the effectivity of this Act.
LA over Money Claims, RA 8042, Sec. 10, as amended
RA 8042, AS AMENDED BY RA 10022
Section 10. Money Claims. — Notwithstanding any provision
of law to the contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall have the original
and exclusive jurisdiction to hear and decide, within ninety
(90) calendar days after the filing of the complaint, the claims
arising out of an employer-employee relationship or by virtue
of any law or contract involving Filipino workers for overseas
deployment including claims for actual, moral, exemplary and
other forms of damage. Consistent with this mandate, the
NLRC shall endeavor to update and keep abreast with the
developments in the global services industry.
The liability of the principal/employer and the
recruitment/placement agency for any and all claims
under this section shall be joint and several. This provision
shall be incorporated in the contract for overseas employment
and shall be a condition precedent for its approval. The
performance bond to de filed by the recruitment/placement
agency, as provided by law, shall be answerable for all money
claims or damages that may be awarded to the workers. If the
recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the case may
be, shall themselves be jointly and solidarily liable with the
13“whichever is less”  Purpose of this provision is to support local
employment agencies; NOT in favor of labor
corporation or partnership for the aforesaid claims and
damages.
Such liabilities shall continue during the entire period or
duration of the employment contract and shall NOT be
affected by any substitution, amendment or modification
made locally or in a foreign country of the said contract.
Any compromise/amicable settlement or voluntary agreement
on money claims inclusive of damages under this section shall
be paid within thirty (30) days from approval of the settlement
by the appropriate authority.
In case of termination of overseas employment without just,
valid or authorized cause as defined by law or contract, or any
unauthorized deductions from the migrant worker’s salary, the
worker shall be entitled to the full reimbursement if his
placement fee and the deductions made with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired
portion of his employment contract or for three (3) months for
every year of the unexpired term, whichever is less.13
In case of a final and executory judgment against a foreign
employer/principal, it shall be automatically disqualified,
WITHOUT further proceedings, from participating in the
Philippine Overseas Employment Program and from recruiting
and hiring Filipino workers UNTIL and UNLESS it fully satisfies
the judgment award.
Noncompliance with the mandatory periods for resolutions of
case provided under this section shall subject the responsible
officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his
decision or resolution within the prescribed period shall be,
or caused to be, withheld until the said official complies
therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualification to hold any
appointive public office for five (5) years.
PROVIDED, however, That the penalties herein provided shall
be without prejudice to any liability which any such official
may have incurred under other existing laws or rules and
regulations as a consequence of violating the provisions of this
paragraph.
F LOURISH M ARITIME S HIPPING V . ALMANZOR (2008)
Paragraph 5, Sec. 10 of RA 8042 provides that in cases of
termination of contract, the employee is entitled to his
“salaries for the unexpired portion of his employment contract
or for three (3) months for every year of the unexpired term,
whichever is less.” The Court held that in case the contract of
the employee is for at least one year, the 3-month rule applies.
P OSEIDON I NTERNATIONAL M ARITIME S ERVICES , I NC . V .
T ITO R. T AMALA , F ELIPE S. S AURIN , J R ., ARTEMIO A. B O -
OC AND J OEL S. F ERNANDEZ (2013)
The waivers and quitclaims signed by the respondents
are valid and binding. Generally, this Court looks with
disfavor at quitclaims executed by employees for being
contrary to public policy. Where the person making the
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waiver, however, has done so voluntarily, with a full
understanding of its terms and with the payment of
credible and reasonable consideration, we have no
option but to recognize the transaction to be valid and
binding.
The respondents are mature and intelligent individuals, with
college degrees, and are far from the naive and unlettered
individuals they portrayed themselves to be. There is no
support on the claim that the respondents were coerced and
unduly influenced to accept the settlement pay and to sign
the waivers and quitclaims
S ERRANO V . G ALLANT M ARITIME S ERVICES , I NC . (2009)
In this case, the Court declared the subject clause (Par. 5
above) as unconstitutional for being violative of the equal
protection clause. It held that the subject clause contains a
suspect classification in that, in the computation of the
monetary benefits of fixed-term employees who are
illegally discharged, it imposes a 3-month cap on the claim
of OFWs with an unexpired portion of one year or more in
their contracts, but none on the claims of other OFWs or local
workers with fixed-term employment. The subject clause
singles out one classification of OFWs and burdens it with
a peculiar disadvantage. There being a suspect classification
involving a vulnerable sector protected by the
Constitution, the Court subjected the classification to a
strict judicial scrutiny, and concluded that the State has not
proven to the Court’s satisfaction that there is a compelling
state interest that would warrant unequal treatment among
classes of workers.
P ERT /CPM M ANPOWER E XPONENT C O ., I NC . V . V INUYA , ET
AL (2012)
The Court declared that the ruling in Serrano could be given
retroactive effects, because a declaration of nullity retroacts to
the day when the law was enacted. However, the Congress
restored the subject clause in RA 10022. The SC refused to rule
on its constitutionality because it is not the lis mota of the
case.
S AMEER O VERSEAS P LACEMENT AGENCY , I NC . V . J OY
C ABILES (2014)
Putting a cap on the money claims of certain overseas workers
does not increase the standard of protection afforded to them.
On the other hand, foreign employers are more incentivized by
the reinstated clause (see discussion in Issue No. 2) to enter into
contracts of at least a year because it gives them more
flexibility to violate our overseas workers’ rights.
POEA over Administrative Cases
Pre-employment Cases
RULES IMPLEMENTING RA 8042, AS AMENDED BY
RA 10022
RULE X. A.
Section 6. Jurisdiction of the POEA. — The POEA shall
exercise original and exclusive jurisdiction to hear and decide:
(a) All pre-employment/recruitment violation cases which are
administrative in character, involving or arising out of
violations of Rules and Regulations relating to licensing and
registration, including refund of fees collected from the
workers or violation of the conditions for issuance of license or
authority to recruit workers; and
Disciplinary Cases
RULES IMPLEMENTING RA 8042, AS AMENDED BY
RA 10022
RULE X. A.
Section 6. Jurisdiction of the POEA. — The POEA shall
exercise original and exclusive jurisdiction to hear and decide:
(b) Disciplinary action cases and other special cases, which are
administrative in character, involving employers, principals,
contracting partners and OFWs processed by the POEA.
E ASTERN M EDITERRANEAN M ARITIME L TD . & AGEMAR
M ANNING AGENCY , I NC . V . E STANISLAO S URIO , ET AL .
(2012)
Upon the repatriation of respondents, petitioners filed an
action based on breach of discipline and for the
reimbursement of wage increases against Eastern Agency
before the POEA. During the pendency of the complaint,
RA 8042 took effect w/c vested original and exclusive
jurisdiction over all money claims arising out of EERs
involving OFWs in Labor Arbiters (Sec. 10). The complaint
was dismissed and petitioners filed an appeal with the NLRC.
The Commission dismissed the complaint for lack of
jurisdiction.
HELD: RA 8042 did not divest the POEA of jurisdiction over
disciplinary cases, ONLY money claims. MOREOVER, there is no
law or rule which provides that decisions of the POEA in
administrative cases are appealable to the NLRC. Appellate
jurisdiction properly rests with the SOLE, who has the
power of general supervision and control over the POEA, a
subordinate office.
RA 8042: Table of Jurisdiction
LA (Sec. 10) POEA (Sec. 6) RTC (Sec. 9)
Claims  pre-  Illegal
 arising out of an employment/ recruitment cases
EER recruitment
 by virtue of any violations
law or contract14 related to
involving Filipino licensing and
workers for registration

14
See Stolt-Nielsen v Medequillo
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overseas  disciplinary
employment cases involving
 actual, moral, employers,
exemplary principals,
damages contracting
partners
BOTH
administrative in
character
P U B L I C S E C T O R A G E N CI E S – E M P L O Y M E N T
O F F I CE S
Article 12. Statement of objectives. - It is the policy of the
State:
f. To strengthen the network of public employment offices
and rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas, to
serve national development objectives;
Article 14. Employment promotion. — The Secretary of
Labor shall have the power and authority:
(a) To organize and establish new employment offices in
addition to the existing employment offices under the
Department of Labor as the need arises;
E XECUTIVE O RDER N O . 247 – R EORGANIZING T HE POEA
Section 3. Powers and Functions. — In the pursuit of its
mandate, the Administration shall have the following powers
and functions:
(a) Regulate private sector participation in the recruitment and
overseas placement of workers by setting up a licensing and
registration system;
(b) Formulate and implement, in coordination with appropriate
entities concerned, when necessary, a system for promoting
and monitoring the overseas employment of Filipino workers
taking into consideration their welfare and the domestic
manpower requirements;
(c) Protect the rights of Filipino workers for overseas
employment to fair and equitable recruitment and
employment practices and ensure their welfare;
(d) Exercise original and exclusive jurisdiction to hear and
decide all claims arising out of an employer--‐employee
relationship or by virtue of any law or contract involving
Filipino workers for overseas employment including the
disciplinary cases; and all pre--‐employment cases which are
administrative in character involving or arising out of violation
or requirement laws, rules and regulations including money
claims arising therefrom, or violation of the conditions for
issuance of license or authority to recruit workers.
All prohibited recruitment activities and practices which are
penal in character as enumerated and defined under and by
virtue of existing laws, shall be prosecuted in the regular courts
in close coordination with the appropriate Departments and
agencies concerned;
(e) Maintain a registry of skills for overseas placement;
(f) Recruit and place workers to service the requirements for
trained and competent Filipino workers by foreign
governments and their instrumentalities and such other
employers as public interest may require;
(g) Promote the development of skills and careful selection of
Filipino workers;
(h) Undertake overseas market development activities for
placement of Filipino workers;
(i) Secure the best terms and conditions of employment of
Filipino contract workers and ensure compliance therewith;
(j) Promote and protect the well-being of Filipino workers
overseas;
(k) Develop and implement programs for the effective
monitoring of returning contract workers, promoting their re-
training and re-employment or their smooth re‐integration
into the mainstream of national economy in coordination with
other government agencies;
(l)Institute a system for ensuring fair and speedy disposition of
cases involving violation or recruitment rules and regulations
as well as violation of terms and conditions of overseas
employment;
(m) Establish a system for speedy and efficient enforcement of
decisions laid down through the exercise of its adjudicatory
function;
(n) Establish and maintain close relationship and enter into
joint projects with the Department of Foreign Affairs,
Philippine Tourism Authority, Manila International Airport
Authority, Department of Justice, Department of Budget and
Management and other relevant government entities, in the
pursuit of its objectives. The Administration shall also establish
and maintain joint projects with private organizations,
domestic or foreign, in the furtherance of its objectives.
S AN C TI O N S
Local Employment
Article 39. Penalties. —
a. The penalty of life imprisonment and a fine of 100k shall be
imposed if illegal recruitment constitutes economic sabotage
as defined herein;
b. Any licensee or holder of authority found violating or
causing another to violate any provision of this Title or its
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of 2-5y OR a fine
of 10-50k, OR BOTH such imprisonment and fine, at the
discretion of the court;
c. Any person who is neither a licensee nor a holder of
authority under this Title found violating any provision thereof
or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of 4-8y
OR a fine of 20-100k OR BOTH such imprisonment and fine, at
the discretion of the court;
d. If the offender is a corporation, partnership, association or
entity, the penalty shall be imposed upon the officer or officers
of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall,
in addition to the penalties herein prescribed, be deported
without further proceedings;
e. In every case, conviction shall cause and carry the automatic
revocation of the license or authority and all the permits and
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privileges granted to such person or entity under this Title, and Association or solidarily liable
the forfeiture of the cash and surety bonds xx Entity w/ the
corp/partnership
Overseas Employment Alien Summarily deported AFTER service of
Article 35. Suspension and/or cancellation of license or sentence
authority. — The Minister of Labor shall have the power to IN EVERY CASE, conviction shall cause and carry the
suspend or cancel any license or authority to recruit automatic revocation of the license or authority
employees for overseas employment for violation of rules and
regulations issued by the Ministry of Labor, the Overseas T R AF F I CK I N G I N P E R S O N S , C O N VE N TI O N O N TH E
Employment Development Board, or for violation of the S U P P R E S S I O N O F TH E T R AF F I C I N P E R S O N S A N D
provisions of this and other applicable laws, General Orders
O F TH E P R O S TI TU TI O N O F O TH E R S
and Letters of Instructions.
Elements of Trafficking in Persons
1. It involves the recruitment, obtaining, hiring, providing,
RA 8042, AS AMENDED BY RA 10022
offering, transportation, transfer, maintaining, harboring, or
Section 7. Penalties. —
receipt of persons;
(a) Any person found guilty of illegal recruitment shall suffer
2. It is committed with or without the victim’s consent 0r
the penalty of imprisonment of 12-20y AND a fine of 1-2m.
(b) The penalty of life imprisonment AND a fine of 2-5m shall knowledge;
be imposed if illegal recruitment constitutes economic 3. It is done within or across national borders;
sabotage as defined therein. 4. It is committed by means of threat, or use of force, or other
PROVIDED, however, That the maximum penalty shall be forms of coercion, abduction, fraud, deception, abuse of power or
imposed if the person illegally recruited is less than eighteen of position, taking advantage of the vulnerability of the person,
(18) years of age or committed by a non-licensee or non- or, the giving or receiving of payments or benefits to achieve the
holder of authority. consent of a person having control over another person;
(c) Any person found guilty of any of the prohibited acts shall 5. It is done for the purpose of exploitation which includes at a
suffer the penalty of imprisonment of 6y and 1d-12y AND a minimum, the exploitation or the prostitution of others or other
fine of 500k-1m.
forms of sexual exploitation, forced labor or services, slavery,
If the offender is an alien, he or she shall, in addition to the
servitude or the removal or sale of organs.
penalties herein prescribed, be deported without further
proceedings.
In every case, conviction shall cause and carry the automatic Distinction
revocation of the license or registration of the Trafficking in Persons Illegal Recruitment
recruitment/manning agency, lending institutions, training  May or may not involve  Does not usually involve
school or medical clinic. coercion, fraud, deception, coercion but uses more
abuse of vulnerability, etc. deception, promises and
LC RA 8042 fraud
Art. 39 Sec. 7/Sec. 10  Characterized by subsequent  Characterized by facilitating
Licensee/Holder Imprisonment of exploitation after the illegal entry of one person from
Imprisonment of 2-
of Authority 12y & 1d-20y entry of one person from one country to another
5y OR a fine of
AND a fine of 1m- one place to another or one through an unauthorized or
10k-50k OR both
2m country to another unlicensed agency
Non- Maximum  There is a need to prove the  Mere recruitment without
Imprisonment of 4-
Licensee/Holder Penalty: Also, presence of exploitation or license is punishable, no
8y OR a fine of
of Authority when committed that the recruitment was need to prove
20k-100k OR both
against a minor facilitated for the purpose of consequential exploitation
Economic exploitation
Life Imprisonment  Human rights issue  Migration concern
Sabotage: Life Imprisonment
AND fine of 2m-  Higher Penalties  Lower Penalties
Syndicate or In AND fine of 100k
5m Regular Trafficking  20y Regular IR  12y
Large Scale
For Prohibited Qualified Trafficking  Life Syndicated/Large scale 
Acts: Imprisonment Life Imprisonment
Imprisonment of
6y & 1d AND a
fine of 500k-1m Categories of Trafficking in Persons
Corporation, corporate officers
Officer/officers
Partnership, and directors or
responsible
partners

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Acts of Trafficking in Persons
 To recruit, obtain, hire, provide, offer, transport, transfer,
maintain, harbor, or receive a person by any means,
including those done under the pretext of domestic or
overseas employment or training or apprenticeship, for the
purpose of prostitution, pornography, or sexual
exploitation;
 To introduce or match for money, profit, or material,
economic or other consideration, any person or, as
provided for under Republic Act No. 6955, any Filipino
woman to a foreign national, for marriage for the purpose
of acquiring, buying, offering, selling or trading him/her to
engage in prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt
bondage;
 To offer or contract marriage, real or simulated, for the
purpose of acquiring, buying, offering, selling, or trading
them to engage in prostitution, pornography, sexual
exploitation, forced labor or slavery, involuntary servitude
or debt bondage;
 To undertake or organize tours and travel plans consisting
of tourism packages or activities for the purpose of utilizing
and offering persons for prostitution, pornography or
sexual exploitation;
 To maintain or hire a person to engage in prostitution or
pornography;
 To adopt persons by any form of consideration for
exploitative purposes or to facilitate the same for purposes
of prostitution, pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or debt bondage;
 To adopt or facilitate the adoption of persons for the
purpose of prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt
bondage;
 To recruit, hire, adopt, transport, transfer, obtain, harbor,
maintain, provide, offer, receive or abduct a person, by
means of threat or use of force, fraud, deceit, violence,
coercion, or intimidation for the purpose of removal or sale
of organs of said person;
 To recruit, transport, obtain, transfer, harbor, maintain,
offer, hire, provide, receive or adopt a child to engage in
armed activities in the Philippines or abroad;
 To recruit, transport, transfer, harbor, obtain, maintain,
offer, hire, provide or receive a person by means defined in
Section 3 of this Act for purposes of forced labor, slavery,
debt bondage and involuntary servitude, including a
scheme, plan, or pattern intended to cause the person
either:
o To believe that if the person did not perform such
labor or services, he or she or another person would
suffer serious harm or physical restraint;
o To abuse or threaten the use of law or the legal
processes; and
 To recruit, transport, harbor, obtain, transfer, maintain, hire,
offer, provide, adopt or receive a child for purposes of
exploitation or trading them, including but not limited to,
the act of baring and/or selling a child for any consideration
or for barter for purposes of exploitation. Trafficking for
purposes of exploitation of children shall include:
o All forms of slavery or practices similar to slavery,
involuntary servitude, debt bondage and forced labor,
including recruitment of children for use in armed
conflict;
o The use, procuring or offering of a child for
prostitution, for the production of pornography, or for
pornographic performances;
o The use, procuring or offering of a child for the
production and trafficking of drugs; and
o The use, procuring or offering of a child for illegal
activities or work which, by its nature or the
circumstances in which it is carried out, is likely to
harm their health, safety or morals; and
 To organize or direct other persons to commit the offenses
defined as acts of trafficking under this Act.
Acts that Promote Trafficking in Persons
 To knowingly lease or sublease, use or allow to be used any
house, building or establishment for the purpose of
promoting trafficking in persons;
 To produce, print and issue or distribute unissued,
tampered or fake counseling certificates, registration
stickers, overseas employment certificates or other
certificates of any government agency which issues these
certificates, decals and such other markers as proof of
compliance with government regulatory and pre-departure
requirements for the purpose of promoting trafficking in
persons;
 To advertise, publish, print, broadcast or distribute, or cause
the advertisement, publication, printing, broadcasting or
distribution by any means, including the use of information
technology and the internet, of any brochure, flyer, or any
propaganda material that promotes trafficking in persons;
 To assist in the conduct of misrepresentation or fraud for
purposes of facilitating the acquisition of clearances and
necessary exit documents from government agencies that
are mandated to provide pre-departure registration and
services for departing persons for the purpose of
promoting trafficking in persons;
 To facilitate, assist or help in the exit and entry of persons
from/to the country at international and local airports,
territorial boundaries and seaports who are in possession of
unissued, tampered or fraudulent travel documents for the
purpose of promoting trafficking in persons;
 To confiscate, conceal, or destroy the passport, travel
documents, or personal documents or belongings of
trafficked persons in furtherance of trafficking or to prevent
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them from leaving the country or seeking redress from the

government or appropriate agencies; and
 To knowingly benefit from, financial or otherwise, or make
use of, the labor or services of a person held to a condition
of involuntary servitude, forced labor, or slavery.
 To tamper with, destroy, or cause the destruction of
evidence, or to influence or attempt to influence witnesses,
in an investigation or prosecution of a case under this Act;
 To destroy, conceal, remove, confiscate or possess, or
attempt to destroy, conceal, remove, confiscate or possess,
any actual or purported passport or other travel,
immigration or working permit or document, or any other
actual or purported government identification, of any
person in order to prevent or restrict, or attempt to prevent
or restrict, without lawful authority, the person’s liberty to
move or travel in order to maintain the labor or services of
that person; or
 To utilize his or her office to impede the investigation,
prosecution or execution of lawful orders in a case under
this Act.
Syndicated and Large Scale Trafficking in Persons
Trafficking is deemed committed by a syndicate if carried out by a
group of three (3) or more persons conspiring or confederating
with one another. It is deemed committed in large scale if
committed against three (3) or more persons, individually or as a
group.
Who Can File
Any person who has personal knowledge of the commission of
any offense under this Act, such as the trafficked person, the
parents, spouse, siblings, children or legal guardian may file a
complaint for trafficking.
Venue
A criminal action arising from violation of this Act shall be filed
where the offense was committed, or where any of its elements
occurred, or where the trafficked person actually resides at the
time of the commission of the offense: Provided, That the court
where the criminal action is first filed shall acquire jurisdiction to
the exclusion of other courts.

Qualified Trafficking in Persons Penalties

 When the trafficked person is a child; Acts of trafficking in persons Imprisonment of 20y AND a
 When the adoption is effected through Republic Act No. fine of 1-2m
Attempted trafficking in
8043, otherwise known as the “Inter- Country Adoption Act
persons
of 1995” and said adoption is for the purpose of Imprisonment of 15y AND a
Accomplice liability
prostitution, pornography, sexual exploitation, forced labor, fine of 500k-1m
Acts that promote trafficking
slavery, involuntary servitude or debt bondage;
in persons
 When the crime is committed by a syndicate, or in large
Qualified Trafficking Life imprisonment AND a fine
scale. Trafficking is deemed committed by a syndicate if of 500k-1m
carried out by a group of three (3) or more persons Breach of confidentiality Imprisonment of 6y AND a
conspiring or confederating with one another. It is deemed fine of 500k-1m
committed in large scale if committed against three (3) or Use of trafficked persons Imprisonment of 6–12y AND
more persons, individually or as a group; a fine of 50-10k
 When the offender is a spouse, an ascendant, parent, Sexual intercourse/lascivious Imprisonment of 17-40y AND
sibling, guardian or a person who exercises authority over conduct w/ a child a fine of 500k– 1m
the trafficked person or when the offense is committed by a Sexual intercourse with a Imprisonment of 40y AND a
public officer or employee; trafficking victim under the fine of 1–5m
 When the trafficked person is recruited to engage in qualifying circumstances of
prostitution with any member of the military or law rape
enforcement agencies;
 When the offender is a member of the military or law Prescriptive Period
enforcement agencies;  10y; Large Scale/Syndicated  20y
 When by reason or on occasion of the act of trafficking in
persons, the offended party dies, becomes insane, suffers A L I E N E M P L O Y M E N T R E G U L A TI O N
mutilation or is afflicted with Human Immunodeficiency 1987 C ONSTITUTION
Virus (HIV) or the Acquired Immune Deficiency Syndrome A RTICLE XII – N ATIONAL E CONOMY AND P ATRIMONY
(AIDS); Section 12. The State shall promote the preferential use of
 When the offender commits one or more violations of Filipino labor, domestic materials and locally produced goods,
Section 4 over a period of sixty (60) or more days, whether and adopt measures that help make them competitive.
those days are continuous or not; and
 When the offender directs or through another manages the Article 12. Statement of objectives. — It is the policy of the
trafficking victim in carrying out the exploitative purpose of State:
trafficking.
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e. To regulate the employment of aliens, including the
establishment of a registration and/or work permit system;
Coverage
Article 40. Employment permit of non-resident aliens. —
Any alien seeking admission to the Philippines for employment
purposes and any domestic or foreign employer who desires
to engage an alien for employment in the Philippines shall
obtain an employment permit from the Department of
Labor.
The employment permit may be issued to a non-resident alien
or to the applicant employer after a determination of the
non-availability of a person in the Philippines who is
competent, able and willing at the time of application to
perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments,
said employment permit may be issued upon recommendation
of the government agency charged with the supervision of
said registered enterprise.
DO 146-15
Application
ALMODIEL V . NLRC (1993)
Almodiel claimed that he was illegally dismissed after the
installation of a standard cost accounting system in the
company where Almodiel works, rendering his job
redundant according to the company. Almodiel, however,
claims that the functions of his position were merely absorbed
by Ang Tan Chai, a resident alien without any working
permit.
HELD: Art 40 does not apply since Ang Tan Chai is a resident
alien. As regards his dismissal, the Court held that an
objection founded on the ground that one has better
credentials over the appointee is frowned upon so long
as the latter possesses the minimum qualifications for
the position. In the case at bar, since petitioner does not
allege that Ang Tan Chai does not qualify for the position, the
Court cannot substitute its discretion and judgment for that
which is clearly and exclusively management prerogative.
To do so would take away from the employer what rightly
belongs to him.
OMNIBUS RULES IMPLEMENTING THE LABOR CODE
BOOK I, RULE XIV
Section 1. Coverage. — This Rule shall apply to all aliens
employed or seeking employment in the Philippines, and their
present or prospective employers.
Section 2. Submission of list. — All employers employing
foreign nationals, whether resident or non-resident shall
submit a list of such nationals to the Bureau indicating their
names, citizenship, foreign and local addresses; nature of
employment and status of stay in the Philippines.
Section 3. Registration of resident aliens. — All employed
resident aliens shall register with the Bureau under such
guidelines as may be issued by it.
Section 4. Employment permit required for entry. — No
alien seeking employment, whether on resident or non-
resident status, may enter the Philippines w/o first securing an
employment permit from the DOLE. If an alien enters the
country under a non-working visa and wishes to be employed
thereafter, he may only be allowed to be employed upon
presentation of a duly approved employment permit.
Section 5. Requirements for employment permit
application. — The application for an employment permit
shall be accompanied by the following:
a. Curriculum vitae duly signed by the applicant indicating
his educational background, his work experience and other
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data showing that he possesses high technical skills in his DO 146-15

trade or profession;
b. Contract of employment between the employer and the
principal which shall embody the following, among others:
1. That the non-resident alien worker shall comply with all
applicable laws and rules and regulations of the
Philippines;
2. That the non-resident alien worker and the employer shall
bind themselves to train at least two (2) Filipino
understudies for a period to be determined by the
Secretary of Labor and Employment; and
3. That he shall not engage in any gainful employment other
than that for which he was issued a permit.
c. A designation by the employer of at least two (2)
understudies for every alien worker. Such understudies must
be the most ranking regular employees in the section or
department for which the expatriates are being hired to ensure
the actual transfer of technology.
Section 6. Issuances of employment permit. — The SOLE
may issue an employment permit to the applicant based on:
a. Compliance by the applicant and his employer with the
requirements of Section 2 hereof;
b. Report of the Bureau Director as to the availability or non-
availability of any person in the Philippines who is competent,
able, and willing to do the job for which the services of the
applicant are desired;
c. His assessment as to whether or not the employment of the
applicant will redound to the national interest;
d. Admissibility of the alien as certified by the Commission
on Immigration and Deportation; Conditions for Grant of Permit; Denial
e. The recommendation of the Board of Investments or Article 41. Prohibition against transfer of employment. —
other appropriate government agencies if the applicant will be a. After the issuance of an employment permit, the alien shall
employed in preferred areas of investments or in accordance NOT transfer to another job OR change his employer
with imperatives of economic developments; and WITHOUT prior approval of the Secretary of Labor.
f. Payment of a P100.00 fee. b. Any non-resident alien who shall take up employment in
Section 7. Duration of employment permit. — Subject to violation of the provision of this Title and its implementing
renewal upon showing of good cause, the employment permit rules and regulations shall be punished in accordance with the
shall be valid for a minimum period of one (1) year starting provisions of Articles 289 and 290 of the Labor Code.
from the date of its issuance unless sooner revoked by the In addition, the alien worker shall be subject to deportation
Secretary of Labor and Employment for violation of any after service of his sentence.
provisions of the Code or of these Rules. Article 42. Submission of list. — Any employer employing
Section 8. Advice to Commission on Immigration and non-resident foreign nationals on the effective date of this
Deportation. — The Bureau shall advice the Commission on Code shall submit a list of such nationals to the Secretary of
Immigration and Deportation on the issuance of an Labor within thirty (30) days after such date indicating their
employment permit to an applicant. names, citizenship, foreign and local addresses, nature of
Section 9. Understudy Training Program. — The employer employment and status of stay in the country. The Secretary of
shall submit a training program for his understudies to the Labor shall then determine if they are entitled to an
Bureau within thirty (30) days upon arrival of the alien workers. employment permit.
The supervision of the training program shall be the
responsibility of the Bureau and shall be in accordance with
standards established by the Secretary of Labor and
Employment.

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DO 146-15 that there was no employer-employee relationship

between it and the said employee.
As to the venue, the Court held venue stipulations in a
contract do not supersede the venue set forth in the Rules
of Court in the absence of qualifying or restrictive words.
Since no words were used in the contract, it cannot be said
that the London Court of Arbitration is the exclusive venue
for the filing of actions re: employer-employee relations.

Renewal; Validity of AEP

DO 146-15

Revocation; Cancellation; Grounds

DO 146-15

G ENERAL M ILLING C ORP . V . T ORRES (1991)

Timothy Cone was employed as a basketball coach by
petitioner. He was granted an AEP. The Basketball Coaches
Association appealed the issuance of his AEP to the SOLE. The
latter reversed and cancelled the permit on the ground that
there is no showing that there is no person in the Philippines
who is competent, able, and willing to perform the work, or
that Cone’s employment would redound to the national
interest. The Court upheld the SOLE’s authority to make such a
finding of availability, and to determine the benefits of his
employment to the national interest. The legal basis for his
authority is Art. 40 of the Labor Code. The use of the word
“may” is permissive which means that the SOLE can exercise
discretion in allowing the issuance of AEPs. He is also
mandated by Art. 12 to regulate employment.

P ACIFIC C ONSULTANTS I NTERNATIONAL ASIA , I NC . V .

S CHONFELD (2007)
PCIJ hires respondent Schonfeld from Canada, and assigns
him to petitioner PPI in Manila. PPI acquires an Alien
Employment Permit for him. Schonfeld was later dismissed,
and he filed for illegal dismissal. Petitioners say that it was
PCIJ, a Japanese company, who employed him; therefore,
the action should be filed in Japan. Also, their contract also
stated that the proper venue for employment-related
Human Resources Development
Dual Training Systems Act of 1994 (RA 7686)
disputes is the London Court of Arbitration.
HELD: Since an employment contract is a requirement for
P O L I C Y O B J E CTI V E S
an Alien Employment Permit, a company that acquired an
RA 7796 TESDA A CT OF 1994
Alien Employment Permit for an employee cannot claim
Section 2. Declaration of Policy. — It is hereby declared the
policy of the State to provide relevant, accessible, high quality

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and efficient technical education and skills development in
support of the development of high quality Filipino middle-
level manpower responsive to and in accordance with
Philippine development goals and priorities.
The State shall encourage active participation of various
concerned sectors, particularly private enterprises, being direct
participants in and immediate beneficiaries of a trained and
skilled workforce, in providing technical education and skills
development opportunities.
Section 3. Statement of Goals and Objectives. — It is the
goal and objective of this Act to:
a) Promote and strengthen the quality of technical education
and skills development programs to attain international
competitiveness;
b) Focus technical education and skills development on
meeting the changing demands for quality middle-level
manpower;
c) Encourage critical and creative thinking by disseminating
the scientific and technical knowledge base of middle-level
manpower development programs;
d) Recognize and encourage the complementary roles of
public and private institutions in technical education and skills
development and training systems; and
e) Inculcate desirable values through the development of
moral character with emphasis on work ethic, self-discipline,
self-reliance and nationalism.
A P P R E N TI CE
Article 57. Statement of objectives - This Title aims:
1. To help meet the demand of the economy for trained
manpower;
2. To establish a national apprenticeship program through the
participation of employers, workers and
government and non-government agencies; and
3. To establish apprenticeship standards for the protection of
apprentices.
Definition
Article 58. Definition of terms. — As used in this Title:
b. An “apprentice” is a worker who is covered by a written
apprenticeship agreement with an individual employer or any
of the entities recognized under this Chapter.
RA 7796 TESDA A CT OF 1994
Section 4. Definition of terms. — As used in this Act:
j. “Apprenticeship” training w/in employment w/ compulsory
related theoretical instruction involving a contract between an
apprentice & an employer on an approved apprenticeable
occupation;
k. “Apprentice” is a person undergoing training for an
approved apprenticeable occupation during an apprenticeship
agreement;
l. “Apprenticeship Agreement” is a contract wherein a
prospective employer binds himself to train the apprentice
who in turn accepts the terms of training for a recognized
apprenticeable occupation emphasizing the rights, duties and
responsibilities of each party;
Apprenticeable Occupation
OMNIBUS RULES IMPLEMENTING THE LABOR CODE
BOOK II RULE VI
Section 11. Qualifications of apprentices. — To qualify as
apprentice, an applicant shall:
(a) Be at least fifteen years of age; PROVIDED those who are
at least fifteen years of age but less than eighteen may be
eligible for apprenticeship only in non-hazardous occupations;
(b) Be physically fit for the occupation in which he desires to
be trained;
(c) Possess vocational aptitude and capacity for the
particular occupation as established through appropriate tests;
and
(d) Possess the ability to comprehend and follow oral and
written instructions.
Trade and industry associations may, however, recommend to
the Secretary of Labor and Employment appropriate
educational qualifications for apprentices in certain
occupations. Such qualifications, if approved, shall be the
educational requirements for apprenticeship in such
occupations unless waived by an employer in favor of an
applicant who has demonstrated exceptional ability. A
certification explaining briefly the ground for such waiver, and
signed by the person in charge of the program, shall be
attached to the apprenticeship agreement of the applicant
concerned.
RA 7610, AS AMENDED BY RA 7658 AND RA 9231
Section 12. 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; or
2) Where a child’s employment or participation in public
entertainment or information through cinema, theater,
radio, television or other forms of media is ESSENTIAL:
PROVIDED, That the employment contract is concluded by the
child’s parents or legal guardian, with the express agreement
of the child concerned, if possible, AND the approval of the
DOLE: PROVIDED, FURTHER, That the following requirements
in all instances are strictly complied with:
(a) The employer shall ensure the protection, health,
safety, morals and normal development of the child;
(b) The employer shall institute measures to prevent the
child’s exploitation or discrimination taking into
account the system and level of remuneration, and the
duration and arrangement of working time; and
(c) The employer shall formulate and implement, subject
to the approval and supervision of competent
authorities, a continuing program for training and
skills acquisition of the child.
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In the above-exceptional cases where any such child may be
employed, the employer shall first secure, before engaging
such child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above
requirements.
For purposes of this Article, the term “child” shall apply to all
persons under eighteen (18) years of age
Qualification
RA 7796 TESDA A CT OF 1994
Section 4. Definition of terms. — As used in this Act:
m. “Apprenticeable Occupation” is an occupation officially
endorsed by a tripartite body and approved for apprenticeable
by the Authority
Allowed Employment; Requirement Program
Approval
Article 60. Employment of apprentices. — Only employers in
the highly technical industries may employ apprentices and
only in apprenticeable occupations approved by the Secretary
of Labor and Employment. (As amended by Section 1,
Executive Order No. 111, December 24, 1986)
N ITTO E NTERPRISES V . NLRC (1995)
In this case, the Court held that since Capili is a regular
employee entitled to reinstatement and backwages, and NOT
an apprentice. Capili entered into an apprenticeship
agreement with Nitto Enterpises sometimes in May but such
was only filed with the DOLE a month after. Not having duly
approved by the DOLE, the apprenticeship agreement
cannot be effective. The act of filing the proposed
apprenticeship program with the Department of Labor and
Employment is a preliminary step towards its final approval
and does not instantaneously give rise to an employer-
apprentice relationship.
Terms and Conditions of Employment
Article 61. Contents of apprenticeship agreements. —
Apprenticeship agreements, including the wage rates of
apprentices, shall conform to the rules issued by the Secretary
of Labor and Employment. The period of apprenticeship shall
not exceed six months. Apprenticeship agreements providing
for wage rates below the legal minimum wage, which in no
case shall start below 75% of the applicable minimum wage,
may be entered into only in accordance with apprenticeship
programs duly approved by the Secretary of Labor and
Employment. The Department shall develop standard model
programs of apprenticeship. (As amended by Section 1,
Executive Order No. 111, December 24, 1986)
Article 72. Apprentices without compensation. — The
Secretary of Labor and Employment may authorize the hiring
of apprentices without compensation whose training on the
job is required by the school or training program curriculum or
as requisite for graduation or board examination.
Costs
Article 71. Deductibility of training costs. — An additional
deduction from taxable income of 1/2 of the value of labor
training expenses incurred for developing the productivity
and efficiency of apprentices shall be granted to the person or
enterprise organizing an apprenticeship program:
PROVIDED, That such program is duly recognized by the DOLE:
PROVIDED, FURTHER, That such deduction shall not exceed
10% percent of direct labor wage: and PROVIDED, FINALLY,
That the person or enterprise who wishes to avail himself or
itself of this incentive should pay his apprentices the minimum
wage.
Enforcement
Article 65. Investigation of violation of apprenticeship
agreement. — Upon complaint of any interested person or
upon its own initiative, the appropriate agency of the
Department of Labor and Employment or its authorized
representative shall investigate any violation of an
apprenticeship agreement pursuant to such rules and
regulations as may be prescribed by the Secretary of Labor
and Employment.
Article 66. Appeal to the Secretary of Labor and
Employment. — The decision of the authorized agency of the
Department of Labor and Employment may be appealed by
any aggrieved person to the Secretary of Labor and
Employment within 5 days from receipt of the decision. The
decision of the Secretary of Labor and Employment shall be
final and executory.
Article 67. Exhaustion of administrative remedies. — No
person shall institute any action for the enforcement of any
apprenticeship agreement or damages for breach of any such
agreement, unless he has exhausted all available
administrative remedies.
L E AR N E R S
Definition
Article 73. Learners defined. — Learners are persons hired as
trainees in semi-skilled and other industrial occupations
which are non-apprenticeable and which may be learned
through practical training on the job in a relatively short
period of time which shall not exceed three (3) months.
RA 7796 TESDA A CT OF 1994
Section 4. Definition of terms. — As used in this Act:
n. “Learners” refers to persons hired as trainees in semi-skilled
and other industrial occupations which are non-
apprenticeable. Learnership programs must be approved by
the Authority;
Allowed Employment
Article 74. When learners may be hired. — Learners may be
employed when no experienced workers are available, the
employment of learners is necessary to prevent curtailment
of employment opportunities, and the employment does
not create unfair competition in terms of labor costs or
impair or lower working standards.
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Terms and Conditions of Employment
Article 75. Learnership agreement. — Any employer desiring
to employ learners shall enter into a learnership agreement
with them, which agreement shall include:
a. The names and addresses of the learners;
b. The duration of the learnership period, which shall not
excee 3 mos;
c. The wages or salary rates of the learners which shall begin
at not less than 75% of the applicable minimum wage; and
d. A commitment to employ the learners if they so desire, as
regular employees upon completion of the learnership.
ALL learners who have been allowed or suffered to work
during the first two (2) months shall be deemed regular
employees IF training is terminated by the employer before
the end of the stipulated period through NO fault of the
learners.
The learnership agreement shall be subject to inspection by
the Secretary of Labor and Employment or his duly authorized
representative.
Article 76. Learners in piecework. — Learners employed in
piece or incentive-rate jobs during the training period shall
be PAID IN FULL for the work done.
As Distinguished from Apprentice
Learners Apprentices
 NOT exceed 3 months;  NOT exceed 6 months;
Semi-skilled Skilled
 Practical training  Practical training +
 No industry reqt theoretical instruction
 Commitment to employ  Highly technical
the learners after industries
completion IF the  No commitment to
LATTER so desire employ after completion
P E R S O N S W I TH D I S A B I L I TI E S (H A N D I CA P P E D )
RA 7277, as amended by RA 9442, and further amended by RA
10070, 6 April 2010
See Annex D for ILO Convention - Vocational Rehabilitation and
Employment (Disabled Persons) Conventio (1983)
Definition
Article 78. Definition. - Handicapped workers are those
whose earning capacity is impaired by age or physical or
mental deficiency or injury.
Article 79. When employable. - Handicapped workers may
be employed when their employment is necessary to prevent
curtailment of employment opportunities and when it does
not create unfair competition in labor costs or impair or lower
working standards.
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 4. Definition of terms. — For purposes of this Act,
the ff terms are defined as follows:
a) Disabled persons are 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;
b) Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical structure or
function;
c) Disability shall mean:
1) a physical or mental impairment that substantially limits
one or more psychological, physiological or anatomical
function of an individual or activities of such individual;
2) a record of such an impairment; or
3) being regarded as having such an impairment;
d) Handicap refers to a disadvantage for a given individual,
resulting from an impairment or a disability, that limits or
prevents the function or activity, that is considered normal
given the age and sex of the individual
Policy Declaration
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 2. Declaration of Policy. — The grant of the rights
and privileges for disabled persons shall be guided by the
following principles:
a) Disabled persons are part of Philippine society, thus the
State shall give full support to the improvement of the total
well-being of disabled persons and their integration into the
mainstream of society. Toward this end, the State shall adopt
policies ensuring the rehabilitation, self-development and self-
reliance of disabled persons. It shall develop their skills and
potentials to enable them to compete favorably for available
opportunities.
b) Disabled persons have the same rights as other people to
take their proper place in society. They should be able to live
freely and as independently as possible. This must be the
concern of everyone — the family, community and all
government and nongovernment organizations. Disabled
persons’ rights must never be perceived as welfare services by
the Government.
c) The rehabilitation of the disabled persons shall be the
concern of the Government in order to foster their capacity to
attain a more meaningful, productive and satisfying life. To
reach out to a greater number of disabled persons, the
rehabilitation services and benefits shall be expanded beyond
the traditional urban-based centers to community based
programs that will ensure full participation of different sectors
as supported by national and local government agencies.
d) The State also recognizes the role of the private sector in
promoting the welfare of disabled persons and shall
encourage partnership in programs that address their needs
and concerns.
e) To facilitate integration of disabled persons into the
mainstream of society, the State shall advocate for and
encourage respect for disabled persons. The State shall exert
all efforts to remove all social, cultural, economic,
environmental and attitudinal barriers that are prejudicial to
disabled persons.
Coverage
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RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 3. Coverage. — This Act shall cover all disabled
persons and, to the extent herein provided, departments,
offices and agencies of the National Government or
nongovernment organizations involved in the attainment of
the objectives of this Act.
Employment Agreement
Article 80. Employment agreement. - Any employer who
employs handicapped workers shall enter into an employment
agreement with them, which agreement shall include:
1. The names and addresses of the handicapped workers to
be employed;
2. The rate to be paid the handicapped workers which shall
not be less than 75% of the applicable legal minimum wage;
3. The duration of employment period; and
4. The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by
the Secretary of Labor or his duly authorized representative.
Eligibility for Apprenticeship
Article 81. Eligibility for apprenticeship. - Subject to the
appropriate provisions of this Code, handicapped workers may
be hired as apprentices or learners if their handicap is not
such as to effectively impede the performance of job
operations in the particular occupations for which they are
hired.
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 7. Apprenticeship. — Subject to the provisions of the
Labor Code as amended, disabled persons shall be eligible as
apprentices or learners: PROVIDED, that their handicap is not
as much as to effectively impede the performance of job
operations in the particular occupation for which they are
hired; PROVIDED, FURTHER, that after the lapse of the
period of apprenticeship, if found satisfactory in the job
performance, they shall be eligible for employment.15
Rights and Privileges
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 5. Equal Opportunity for Employment. — No person
with disability shall be denied access to opportunities for
suitable employment. A qualified employee with disability shall
be subject to the same terms and conditions of employment
and the same compensation, privileges, benefits, fringe
benefits, incentives or allowances as a qualified able-bodied
person.
At least 1% of all positions in ALL government agencies, offices
or corporations shall be reserved for persons with disability16:
PROVIDED, that private corporations w/ more than 100
employees are encouraged to reserve at least 1% of all
positions for persons with disability.
15
Why specify apprentices only? Art. 75 already provides
commitment to employ learners
Section 6. Sheltered Employment. — If suitable employment
for disabled persons cannot be found through open
employment as provided in the immediately preceding
Section, the State shall endeavor to provide it by means of
sheltered employment. In the placement of disabled persons
in sheltered employment, it shall accord due regard to the
individual qualities, vocational goals and inclinations to ensure
a good working atmosphere and efficient production.
B ERNARDO V . NLRC & FEBTC (1999)
Petitioners were 43 deaf-mutes employed by Far East Bank as
money sorters and counters. Their contracts were consistently
renewed every 6 months. After several years, the positions
were abolished. Petitioners filed a complaint for illegal
dismissal. FEBTC’s defense was that it was merely
accommodating petitioners, and that the positions were
created especially for them since the functions they performed
regularly pertained to bank tellers.
HELD: Petitioners were illegally dismissed. They became
regular employees when their contracts were renewed after 6
months. They performed tasks necessary and desirable to
FEBTC. Moreover, Sec. 5, RA 7277 provides that qualified
disabled employees should be given the same terms and
conditions of employment as a qualified able-bodied person.
Discrimination
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 32. Discrimination on Employment. — No entity,
whether public or private, shall discriminate against a qualified
disabled person by reason of disability in regard to job
application procedures, the hiring, promotion, or discharge of
employees, employee compensation, job training, and other
terms, conditions, and privileges of employment. The
following constitute acts of discrimination:
a) Limiting, segregating or classifying a disabled job
applicant in such a manner that adversely affects his work
opportunities;
b) Using qualification standards, employment tests or
other selection criteria that screen out or tend to screen out
a disabled person unless such standards, tests or other
selection criteria are shown to be job-related for the position
in question and are consistent with business necessity;
c) Utilizing standards, criteria, or methods of
administration that:
1) Have the effect of discrimination on the basis of
disability; or
2) Perpetuate the discrimination of others who are subject
to common administrative control.
d) Providing less compensation, such as salary, wage or
other forms of remuneration and fringe benefits, to a qualified
disabled employee, by reason of his disability, than the
amount to which a non-disabled person performing the same
work is entitled;
e) Favoring a non-disabled employee over a qualified
disabled employee with respect to promotion, training
16
An example of affirmative action i.e. you can compel the govt to
give you certain benefits
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38 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
opportunities, study and scholarship grants, solely on account
of the latter’s disability;
f) Re-assigning or transferring a disabled employee to a job
or position he cannot perform by reason of his disability;
g) Dismissing or terminating the services of a disabled
employee by reason of his disability UNLESS the employer
can prove that he impairs the satisfactory performance of
the work involved to the prejudice of the business entity:
PROVIDED, however, that the employer first sought to
provide reasonable accommodations for disabled persons;
h) Failing to select or administer in the most effective
manner employment tests which accurately reflect the skills,
aptitude or other factor of the disabled applicant or employee
that such tests purports to measure, rather than the impaired
sensory, manual or speaking skills of such applicant or
employee, if any; and
i) Excluding disabled persons from membership in labor
unions or similar organizations.
Section 33. Employment Entrance Examination. — Upon an
offer of employment, a disabled applicant may be subjected to
medical examination, on the following occasions:
a) ALL entering employees are subjected to such an
examination regardless of disability;
b) Information obtained during the medical condition or
history of the applicant is collected and maintained on
separate forms and in separate medical files and is treated as
a confidential medical record; PROVIDED, however, that:
1) Supervisors and managers may be informed regarding
necessary restrictions on the work or duties of the
employees and necessary accommodations;
2) First aid and safety personnel may be informed, when
appropriate, if the disability may require emergency
treatment;
3) Government officials investigating compliance with this
Act shall be provided relevant information on request; and
4) The results of such examination are used only in
accordance with this Act.
Enforcement
RA 7277 M AGNA C ARTA FOR D ISABLED P ERSONS
Section 44. Enforcement by the Secretary of Justice. —
a) Denial of Right
1) Duty to Investigate — the Secretary of Justice shall
investigate alleged violations of this Act, & shall undertake
periodic reviews of compliance of covered entities.
b) Potential Violations — If the Secretary of Justice has
reasonable cause to believe that:
1) Any person or group of persons is engaged in a pattern
or practice of discrimination under this Act; or
2) Any person or group or persons has been discriminated
against under this Act and such discrimination raises an
issue of general public importance, the Secretary of
Justice may commence a legal action in ANY appropriate
court.
Section 45. Authority of Court. — The court may grant any
equitable relief that such court considers to be appropriate,
including, to the extent required by this Act:
a) Granting temporary, preliminary or permanent relief;
b) Providing an auxiliary aid or service, modification of
policy, practice or procedure, or alternative method; and
c) Making facilities readily accessible to and usable by
individuals with disabilities.
Section 46. Penal Clause. —
a) Any person who violates any provision of this Act shall
suffer the following penalties:
1) For the first violation, a fine of 50-100k OR
imprisonment of 6mo-2y OR both at the discretion of the
court; and
2) For any subsequent violation, a fine of 100-200k or
imprisonment for 2-6y, OR both at the discretion of the
court.
b) Any person who abuses the privileges granted herein shall
be punished with imprisonment of not less than six (6) months
or a fine of not less than Five thousand pesos (P5,000.00), but
not more than Fifty thousand pesos (P50,000.00), or both, at
the discretion of the court.
c) If the violator is a corporation, organization or any similar
entity, the officials thereof directly involved shall be liable
therefore.
Conditions of Work
HOURS OF WORK
Regulation; Rationale
M ANILA T ERMINAL C O . I NC . V . CIR (1952)
Petitioner hired 30 watchmen to work 12-hour shifts. They
wrote to DOLE asking for an investigation on the matter of OT
pay. No action was taken. Meanwhile, petitioner implemented
strict 8-hr shifts w/o reducing the salary rates. The watchmen
filed a petition with the CIR seeking OT pay from MTC. The
Court upheld the decision of the CIR. First, they rejected the
argument that the stipulated salary rates already included OT
pay. The watchmen worked the 12-hour shifts out of necessity
and consequently, the law gives them the right to such extra
compensation. They could not have waived their right to OT
pay for the simple reason that they could not have expressly
done the same. Neither can their claim be barred by estoppel
or laches, because to accept the argument would be to
frustrate the purpose of the law. Petitioners claim that the
watchmen are not entitled to OT pay because the parties are in
pari delicto, the employment contracts being void for being
contrary to public policy. The argument is unmeritorious
because the provision on nullity in the Eight-Hour Labor Law is
meant for the benefit of the employee.
Purpose of the Eight-Hour Labor Law
• Safeguard the health and welfare of laborers
• Minimize unemployment (by working in shifts).
Part-Time Work Allowed
• The law only prescribes a maximum.
• Work for less than 8 hours a day is not prohibited by law.
• Wages and benefits of a part-time worker must be in
proportion to the number of hours worked.
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39 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
Coverage
Article 82. Coverage. — The provisions of this Title shall
apply to employees in ALL establishments and
undertakings WHETHER for PROFIT or NOT, BUT NOT TO
government employees, managerial employees, field
personnel, members of the family of the employer who are
dependent on him for support, domestic helpers, persons in
the personal service of another, and workers who are paid by
results as determined by the Secretary of Labor in appropriate
regulations.
As used herein, “managerial employees” refer to those
whose primary duty consists of the management of the
establishment in which they are employed or of a department
or subdivision thereof, and to other officers or members of the
managerial staff.
“Field personnel” shall refer to non-agricultural employees
who regularly perform their duties away from the principal
place of business or branch office of the employer and whose
actual hours of work in the field cannot be determined with
reasonable certainty.
Book III does NOT apply to:
 Govt Employees
 Managerial Employees
 Field Personnel
 Family members of the employer who are dependent on
him for support
 Domestic Helpers
 Persons in the Personal Service of another
 Workers who are paid by Results
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 1. General statement on coverage. — The
provisions of this Rule shall apply to all employees in all
establishments and undertakings, whether operated for profit
or not, except to those specifically exempted under Section 2
hereof.
Section 2. Exemption. — The provisions of this Rule shall not
apply to the following persons if they qualify for exemption
under the conditions set forth herein:
(a) Government employees whether employed by the
National Government or any of its political subdivision,
including those employed in government-owned and/or
controlled corporations;
(b) Managerial employees, if they meet all of the following
conditions:
(1) Their primary duty consists of the management of the
establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of two or
more employees therein.
(3) They have the authority to hire or fire employees of
lower rank; or their suggestions and recommendations
as to hiring and firing and as to the promotion or any
other change of status of other employees, are given
particular weight.
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of work
directly related to management policies of their
employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or technical
lines requiring special training, experience, or
knowledge; or (iii) execute, under general supervision,
special assignments and tasks; and
(4) Who do not devote more than 20 percent of their hours
worked in a work week to activities which are not
directly and closely related to the performance of the
work described in paragraphs (1), (2) and (3) above.
(d) Domestic servants and persons in the personal service
of another if they perform such services in the employer's
home which are usually necessary or desirable for the
maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as
well as the members of his employer's household.
(e) Workers who are paid by results, including those who are
paid on piece-work, "takay," "pakiao" or task basis, and other
non-time work if their output rates are in accordance with the
standards prescribed under Section 8, Rule VII, Book Three of
these regulations, or where such rates have been fixed by the
SOLE in accordance with the aforesaid Section.
(f) Non-agricultural field personnel if they regularly perform
their duties away from the principal or branch office or place
of business of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.
Government Employees
Article 276. Government employees. - The terms and
conditions of employment of ALL government employees,
INCLUDING employees of GOCCs, shall be governed by the
Civil Service Law, rules and regulations. Their salaries shall
be standardized by the National Assembly as provided for in
the New Constitution. However, there shall be no reduction of
existing wages, benefits and other terms and conditions of
employment being enjoyed by them at the time of the
adoption of this Code.
1987 C ONSTITUTION
ARTICLE IX-B – T HE C IVIL S ERVICE C OMISSION
Section 2. (1) The civil service embraces all branches,
subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled
corporations with original charters.
Managerial Employees
Article 82. Coverage. — The provisions of this Title shall
apply to employees in all establishments and undertakings
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40 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
whether for profit or not, BUT NOT TO government
employees, managerial employees, xx
As used herein, “managerial employees” refer to those
whose primary duty consists of the management of the
establishment in which they are employed or of a department
or subdivision thereof, and to other officers or members of the
managerial staff.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 2. Exemption. — The provisions of this Rule shall not
apply to the following persons if they qualify for exemption
under the conditions set forth herein:
xx
(b) Managerial employees, if they meet all of the following
conditions:
(1) Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of 2
or more employees therein.
(3) They have the authority to hire or fire employees of
lower rank; or their suggestions and
recommendations as to hiring and firing and as to
the promotion or any other change of status of other
employees, are given particular weight.17
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of
work directly related to management policies of
their employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience, or
knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
(4) Who do NOT devote more than 20 percent of their
hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3) above.
xx
ASIA P ACIFIC C HRISTENING , I NC . V . F AROLAN (2004)
Linda Farolan was hired by petitioner as Sales Manager for the
Scandinavian Airlines System. Following a decline in sales,
Zorobado was tasked to investigate the situation and ended
up assuming some of Farolan’s responsibilities. Working
together, the revenues improved. Despite improvements,
Farolan received a letter of termination on the ground of loss
of confidence. She filed a complaint for illegal dismissal.
17
Effective recommendatory power
Employer contends it is its prerogative to terminate or dismiss
based on loss of trust or confidence.
HELD: She was illegally dismissed. There is a distinction
between managerial and rank and file employees as regards
dismissal due to loss of trust and breach of confidence. For
the former, there must be proof of involvement in the
alleged events in question and that mere suppositions are
insufficient. On the other hand, for managerial employees,
mere existence of basis for a belief is sufficient. HOWEVER,
the mere fact that one is labeled a manager does not ipso
facto make him one. In the case of Farolan, she was a
manager, but the absence of a written description of her job
renders it impossible for the court to determine the nature of
her work. Assuming that she is a manager under the law,
breach of confidence was still not duly proven because there
was no evidence of willful breach on her part. Neither was she
inefficient.
C HARLITO P EÑARANDA V . B AGANGA P LYWOOD C ORP
(2006)
Peñaranda claims he was illegally dismissed by BPC. The latter
counters that when BPC closed for repairs, petitioner opted to
sever the employment relationship and collect his separation
pay. Peñaranda likewise claims OT pay.
HELD: He is not entitled to OT pay because although he is not
a managerial employee, he is part of the managerial staff.
Being a shift engineer (foreman), he exercised supervision over
the operations and maintenance of BPC’s steam plant boiler.
Furthermore, he was part of the 10% of 354 employees who
were paid on a monthly basis.
Field Personnel
Article 82. Coverage. — The provisions of this Title shall
apply to employees in all establishments and undertakings
whether for profit or not, BUT NOT TO government
employees, managerial employees, field personnel, xx
“Field personnel” shall refer to NON-agricultural employees
who regularly perform their duties away from the principal
place of business or branch office of the employer and whose
actual hours of work in the field cannot be determined with
reasonable certainty.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 2. Exemption. — The provisions of this Rule shall not
apply to the following persons if they qualify for exemption
under the conditions set forth herein:
xx
(f) Non-agricultural field personnel if they regularly perform
their duties away from the principal or branch office or place
of business of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.
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M ERDICAR F ISHING C ORP . V . NLRC (1998)
Agao, a “bodegero”18 is not considered a field employee. In a
previous case, the Court explained the meaning of “whose
actual hours of work in the field cannot be determined with
reasonable certainty”. It said that whether or not an
employee’s actual working hours in the field can be
determined with reasonable certainty, query must be made as
to whether or not such employee’s time and performance is
constantly supervised by the employer. In this case, it is readily
apparent that Agao’s work was constantly supervised by the
employer because he had no choice to stay on petitioner’s
vessel, subjecting him to the supervision and control of the
vessel’s master. He is therefore entitled to 13th month pay and
service incentive leave pay.
AUTO B US T RANSPORT S YSTEMS , I NC . V . B AUTISTA (2005)
Bautista, a driver-conductor, is not a field employee pursuant
to Mercidar because he is constantly being supervised by
petitioner. He is required to be in specific places at specific
times as evidenced by inspectors assigned at strategic points
along the routes plied by the bus. There is also the mandatory
once a week car barn or shop day where the bus is regularly
checked. There is a dispatcher in each and every depot whose
job is to make sure the buses leave and arrive on time.
F AR E AST AGRICULTURAL S UPPLY , I NC . V . L EBATIQUE
(2007)
Lebatique, a truck driver, cannot be considered field personnel.
He is a regular employee whose performance is supervised by
the employer. He was tasked to deliver items at specific times
to specific places. He had no discretion to solicit, select, and
contract prospective clients. The performance of his tasks was
dependent on petitioner’s production of agricultural feeds.
Lebatique is entitled to OT pay for the second delivery he was
tasked to make.
Dependent Family Members
Domestic Workers
Art. 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.
RA 10361 “D OMESTIC W ORKERS A CT ” OR “B ATAS
K ASAMBAHAY A CT ”
Section 4. Definition of terms. — As used in this Act:
(c) Domestic work refers to work performed in or for a
household or households.
(d) Domestic worker or “Kasambahay” refers to any person
engaged in domestic work within an employment relationship
such as, but not limited to, the following: general househelp,
18
quartermaster
nursemaid or “yaya”, cook, gardener, or laundry person, but
shall EXCLUDE any person who performs domestic work only
occasionally or sporadically and not on an occupational
basis.
The term shall NOT include children who are under foster
family arrangement, and are provided access to education and
given an allowance incidental to education, i.e. “baon”,
transportation, school projects and school activities.
(e) Employer refers to any person who engages and controls
the services of a domestic worker and is party to the
employment contract.
(f) Household refers to the immediate members of the family
or the occupants of the house that are directly provided
services by the domestic worker.
Domestic worker/”Kasambahay”
 Engages in domestic work – work performed in/for a
household
 Performs work on an occupational basis
 Does NOT include foster children provided access to
education
 LC includes drivers while IRR of RA 10361 excludes them.
RULES IMPLEMENTING RA 10361
Section 2. Coverage. – The IRR shall apply to ALL parties to
an employment contract for the services of the following
Kasambahay, whether on a live-in or live-out arrangement,
such as but not limited to:
(a) General Househelp
(b) Yaya
(c) Cook
(d) Gardener
(e) Laundry Person
(f) Any person who regularly performs domestic work in one
household on an occupational basis
The following are NOT covered:
(a) Service Providers
(b) Family Drivers
(c) Children under Foster Arrangement
(d) Any other person who performs work occasionally or
sporadically and not on an occupational basis
Extent of Duty
RA 10361 “D OMESTIC W ORKERS A CT ” OR “B ATAS
K ASAMBAHAY A CT ”
Section 23. Extent of Duty. – The domestic worker and the
employer MAY MUTUALLY AGREE for the former to
temporarily perform a task that is outside the latter’s
household for the benefit of another household. However,
any liability that will be incurred by the domestic worker on
account of such arrangement shall be borne by the original
employer. In addition, such work performed outside the
household shall entitle the domestic worker to an additional
payment of not less than the existing minimum wage rate of a
domestic worker. It shall be unlawful for the original employer
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to charge any amount from the said household where the
service of the domestic worker was temporarily performed.
RULES IMPLEMENTING RA 10361
Section 11. Extent of Duty Outside the Household. — The
Kasambahay and the employer may mutually agree for the
Kasambahay to temporarily perform a task for the benefit of
another household under the following conditions:
(a) There is an agreement between the Kasambahay and the
employer for the purpose, particularly on the task/s to be
performed;
(b) The Kasambahay is entitled to additional payment of not
less than the applicable minimum wage rate;
(c) The original employer shall be responsible for any
liability incurred by the Kasambahay on account of such
arrangement;
(d) The original employer is not charging any amount from
the other household for the arrangement.
The other household where the Kasambahay is temporarily
assigned is solidarily liable with the original employer for any
nonpayment of wages during such temporary assignment.
The temporary performance referred herein shall NOT exceed
30 days per assignment.
It shall be unlawful for the original employer to charge any
amount from the said household where the service of the
Kasambahay was temporarily performed.
Assignment to Non-Household Work
Article 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.
RA 10361 “D OMESTIC W ORKERS A CT ” OR “B ATAS
K ASAMBAHAY A CT ”
Section 22. Assignment to Nonhousehold Work. – No
domestic worker shall be assigned to work in a commercial,
industrial or agricultural enterprise at a wage rate lower than
that provided for agricultural or nonagricultural workers. In
such cases, the domestic worker shall be paid the applicable
minimum wage.
RULES IMPLEMENTING RA 10361
Section 10. Assignment to Non-household Work. — The
employer shall not, at any point of the duration of
employment, assign the Kasambahay to work whether in full
or part-time in a commercial, industrial or agricultural
enterprise.
When assigned to work in a commercial, industrial or
agricultural enterprise, the Kasambahay must be paid the
applicable minimum wage and benefits for workers in such
enterprise.
Persons in the Personal Service of Another
Piece Workers
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 2. Exemption. — The provisions of this Rule shall not
apply to the following persons if they qualify for exemption
under the conditions set forth herein:
xx
(e) Workers who are paid by results, including those who are
paid on piece-work, "takay," "pakiao" or task basis, and other
non-time work IF their output rates are in accordance with the
standards prescribed under Section 8, Rule VII, Book Three of
these regulations, OR where such rates have been fixed by the
SOLE in accordance with the aforesaid Section.
xx
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VII-A
Section 8. Payment by Results. —
(a) On petition of any interested party or upon its initiative, the
DOLE shall use all available devices including the use of time
and motion studies and consultation w/ representatives of
employees’ and workers’ organizations, to determine whether
the employees in any industry or enterprise are being
compensated in accordance w/ the min. wage requirements of
this rule.
(b) The basis of the establishment of rules
(c)
L ABOR C ONGRESS V . NLRC (1998)
Despite being piece-rate workers, petitioners are entitled to
13th month pay, holiday pay, and service incentive leave pay
because the status and nature of their employment was that of
regular employees. First, their job of repacking food was
necessary and desirable to the employer. Second, they worked
throughout the year, as opposed to being employed only for a
specific project or season. Third, the Court considered the
length of time the employees worked for Empire.
Normal Hours of Work
See also Flexible Work Arrangements
Article 83. Normal hours of work. — The normal hours of
work of any employee shall NOT exceed 8 HOURS A DAY.
Health personnel in cities and municipalities with a
population of at least 1m or in hospitals and clinics with a bed
capacity of at least 100 shall hold regular office hours for 8hrs
a day, for 5 days a week, exclusive of time for meals, except
where the exigencies of the service require that such personnel
work for six (6) days or forty-eight (48) hours, in which case,
they shall be entitled to an additional compensation of at least
thirty percent (30%) of their regular wage for work on the sixth
day.
For purposes of this Article, “health personnel” shall include
resident physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians,
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paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.
Compensable Hours of Work – In general
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 3. Hours worked. — The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to be on
duty or to be at the employer's premises or to be at a
prescribed work place; and
(b) All time during which an employee is suffered or permitted
to work.
Section 4. Principles in determining hours worked. — The
following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:
(a) All hours are hours worked which the employee is required
to give his employer, regardless of whether or not such hours
are spent in productive labor or involve physical or mental
exertion.
(b) An employee need not leave the premises of the work
place in order that his rest period shall not be counted, it
being enough that he stops working, may rest completely and
may leave his work place, to go elsewhere, whether within or
outside the premises of his work place.
(c) If the work performed was necessary, or it benefited the
employer, or the employee could not abandon his work at the
end of his normal working hours because he had no
replacement, all time spent for such work shall be considered
as hours worked, if the work was with the knowledge of his
employer or immediate supervisor.
(d) The time during which an employee is inactive by reason of
interruptions in his work beyond his control shall be
considered working time either if the imminence of the
resumption of work requires the employee's presence at the
place of work or if the interval is too brief to be utilized
effectively and gainfully in the employee's own interest.
On Duty
Article 84. Hours worked. — Hours worked shall include:
(a) all time during which an employee is required to be on
duty or to be at a prescribed workplace xx
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 3. Hours worked. — The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to be on
duty or to be at the employer's premises or to be at a
prescribed work place; and
xx
Section 4. Principles in determining hours worked. — The
following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:
(a) All hours are hours worked which the employee is required
to give his employer, regardless of whether or not such hours
are spent in productive labor or involve physical or mental
exertion.
xx
At Work
Article 84. Hours worked. — Hours worked shall include:
xx and (b) all time during which an employee is suffered or
permitted to work.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 3. Hours worked. — The following shall be
considered as compensable hours worked:
xx
(b) All time during which an employee is suffered or permitted
to work.
Specific Rules
Rest Period
Short Duration or “Coffee Break”
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 7. Meal and Rest Periods. —
Xx
Rest periods or coffee breaks running from 5 to 20 minutes
shall be considered as compensable working time.
More than 20 min.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 4. Principles in determining hours worked. — The
following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:
xx
(b) An employee need not leave the premises of the work
place in order that his rest period shall not be counted, it
being enough that he stops working, may rest completely and
may leave his work place, to go elsewhere, whether within or
outside the premises of his work place.
xx
Meal Period
Regular Meal Period (One Hour)
Article 85. Meal periods. — Subject to such regulations as
the Secretary of Labor may prescribe, it shall be the duty of
every employer to give his employees not less than 60
minutes time-off for their regular meals.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 7. Meal and Rest Periods. — Every employer shall
give his employees, regardless of sex, not less than 1 hour
Time-off for regular meals, EXCEPT in the following cases when
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44 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
a meal period of not less than 20 minutes may be given by
the employer PROVIDED that such shorter meal period is
credited as compensable hours worked of the employee:
(a) Where the work is non-manual work in nature or does not
involve strenuous physical exertion;
(b) Where the establishment regularly operates not less than
16 hours a day;
(c) In case of actual or impending emergencies or there is
urgent work to be performed on machineries, equipment or
installations to avoid serious loss which the employer would
otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of
perishable goods.
P HILIPPINE AIRLINES , I NC . V . NLRC (1999)
Herminio Fabros worked as a flight surgeon for PAL with a
4pm-12mn shift. At 7pm he went home (about 5 minutes
away) to have dinner. An employee had a heart attack, so he
was contacted and he immediately returned to the office. The
nurse-on-duty had already taken the employee to the hospital,
where he died after a few days. PAL suspended Fabros for
abandoning his post.
HELD: Suspension was illegal. Fabros is entitled to a 60-min.
meal period. The law does not state that employees must
take their meals within the work premises.
Shorter Meal Period (Less than One Hour, but Not Less than 20
min.)
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 3. Hours worked. — The following shall be
considered as compensable hours worked:
xx
(b) All time during which an employee is suffered or permitted
to work.
Waiting Time
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 5. Waiting time. — (a) Waiting time spent by an
employee shall be considered as working time IF waiting is
an integral part of his work or the employee is required or
engaged by the employer to wait. xx
ARICA V . NLRC (1989)
Petitioners filed a complaint against STANFILCO for assembly
time, moral damages, and attorney’s fees. They claim that they
should be compensated for the time spent in preliminary
activities (roll call, individual assignments, accomplishment
report, etc.).
HELD: Complaint dismissed on the ground of res judicata. It
was held in that case that the 30-min. waiting time was
institutionalized by the mutual consent of the parties and that
it is a deeply-rooted, routinary practice that does not deprive
19
Emergency Cost of Living Allowances
workers of time to attend to personal pursuits (their houses
are near so they can easily go back).
S ARMIENTO D ISSENT
Factual circumstances have changed. The management has
placed a number of restrictions upon the employees. The 30-
min assembly therefore should be compensable.
On Call
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 5. Waiting time. — (b) An employee who is required
to remain on call in the employer's premises or so close
thereto that he cannot use the time effectively and
gainfully for his own purpose shall be considered as
working while on call. An employee who is not required to
leave work at his home or with company officials where he
may be reached is not working while on call.
Inactive due to Work Interruptions
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 4. Principles in determining hours worked. — The
following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:
xx
(d) The time during which an employee is inactive by reason of
interruptions in his work beyond his control shall be
considered working time either if the imminence of the
resumption of work requires the employee's presence at the
place of work or if the interval is too brief to be utilized
effectively and gainfully in the employee's own interest.
 When work is not continuous, the time when a laborer can
leave work and completely rest is non-compensable.
 BUT, if he is required by the employer to be at work before
or after working hours, such time should not be discounted
from his compensable working hours
U NIVERSITY OF P ANGASINAN F ACULTY U NION V .
U NIVERSITY OF P ANGASINAN (1984)
Faculty members are entitled to their ECOLA19 during
semestral break, since they receive their regular salary during
the same period. PDs 1614, 1634, 1678 and 1713 mandate the
release of FULL ECOLA regardless of the days worked if the
employee has not incurred any absences. The teachers are
forced to go on mandatory leave during sembreak, which is
considered a work interruption beyond their control. Since the
law entitles them to their regular wages, they are likewise
entitled to ECOLA.
“Not only do the teachers continue to work during this short
recess but much less do they cease to live for which the cost of
living allowance is intended.”
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45 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
Work after Normal Hours
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 4. Principles in determining hours worked. — The
following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:
xx
(c) If the work performed was necessary, or it benefited the
employer, or the employee could not abandon his work at the
end of his normal working hours because he had no
replacement, all time spent for such work shall be considered
as hours worked, if the work was with the knowledge of his
employer or immediate supervisor.
xx
Lectures, Meetings, Training Programs
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 6. Lectures, meetings, training programs. —
Attendance at lectures, meetings, training programs, and other
similar activities shall NOT be counted as working time if all of
the following conditions are met:
(a) Attendance is outside of the employee's regular working
hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive work
during such attendance.
Travel Time
Emergency or Compulsory Overtime Work
R ADA V . NLRC (1992)
In this case, the Court held that the time Rada spent picking up
and dropping off employees along EDSA on the way to and
from work is compensable, it being beneficial to the employer.
It found that this practice is indispensable and mandatory,
because Philnor even looks for substitutes when Rada is
unavailable. It is not a mere incident to his employment.
Overtime Work Pay
Article 90. Computation of additional compensation. - For
purposes of computing overtime and other additional
remuneration as required by this Chapter, the "regular wage"
of an employee shall include the cash wage only, WITHOUT
deduction on account of facilities provided by the employer.
Overtime in Ordinary Working Day
Article 87. Overtime work. — Work may be performed
beyond 8 hours a day PROVIDED that the employee is paid
for the overtime work, an additional compensation equivalent
to his regular wage plus at least 25% thereof. Work
performed beyond eight hours on a holiday or rest day shall
be paid an additional compensation equivalent to the rate of
the first eight hours on a holiday or rest day plus at least 30%
thereof.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 8. Overtime pay. — Any employee covered by this
Rule who is permitted or required to work beyond 8 hours on
ordinary working days shall be paid an additional
compensation for the overtime work in the amount equivalent
to his regular wage plus at least twenty-five percent (25%)
thereof.
Section 9. Premium and overtime pay for holiday and rest
day work. —
(a) Except employees referred to under Section 2 of this Rule,
an employee who is permitted or suffered to work on special
holidays or on his designated rest days not falling on regular
holidays, shall be paid with an additional compensation as
premium pay of not less than thirty percent (30%) of his
regular wage. For work performed in excess of eight (8) hours
on special holidays and rest days not falling on regular
holidays, an employee shall be paid an additional
compensation for the overtime work equivalent to his rate for
the first eight hours on a special holiday or rest day plus at
least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as those
employed in non-profit institutions and organizations shall be
entitled to the premium and overtime pay provided herein,
unless they are specifically excluded from the coverage of this
Rule as provided in Section 2 hereof.
(c) The payment of additional compensation for work
performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.
Article 89. Emergency overtime work. — Any employee may
be required by the employer to perform overtime work in any
of the following cases:
a. When the country is at war or when any other national or
local emergency has been declared by the National Assembly
or the Chief Executive;
b. When it is necessary to prevent loss of life or property or in
case of imminent danger to public safety due to an actual or
impending emergency in the locality caused by serious
accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity;
c. When there is urgent work to be performed on machines,
installations, or equipment, in order to avoid serious loss or
damage to the employer or some other cause of similar
nature;
d. When the work is necessary to prevent loss or damage to
perishable goods; and
e. Where the completion or continuation of the work started
before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the
employer.
Any employee required to render overtime work under this
Article shall be paid the additional compensation required in
this Chapter.
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46 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE I
Section 10. Compulsory overtime work. — In any of the
following cases, an employer may require any of his
employees to work beyond eight (8) hours a day, provided
that the employee required to render overtime work is paid
the additional compensation required by these regulations:
(a) When the country is at war or when any other national
or local emergency has been declared by Congress or the
Chief Executive;
(b) When overtime work is necessary to prevent loss of life
or property, or in case of imminent danger to public safety
due to actual or impending emergency in the locality caused
by serious accident, fire, floods, typhoons, earthquake,
epidemic or other disaster or calamities;
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to avoid
serious loss or damage to the employer or some other causes
of similar nature;
(d) When the work is necessary to prevent loss or damage
to perishable goods;
(e) When the completion or continuation of work started
before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business or operations of
the employer; or
(f) When overtime work is necessary to avail of favorable
weather or environmental conditions where performance or
quality of work is dependent thereon.
In cases not falling within any of these enumerated in this
Section, no employee may be made to work beyond eight
hours a day against his will.
ABDULJUAHID R. P IGCAULAN V . S ECURITY & C REDIT
I NVESTIGATION , I NC ., (2012)
Undertime Work/Leave
Article 88. Undertime not offset by overtime. — Undertime
work on any particular day shall not be offset by overtime
work on any other day. Permission given to the employee to
go on leave on some other day of the week shall not exempt
the employer from paying the additional compensation
required in this Chapter.
Additional Compensation
Article 87. Overtime work. — Work may be performed
beyond eight (8) hours a day provided that the employee is
paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five percent
(25%) thereof. Work performed beyond eight hours on a
holiday or rest day shall be paid an additional compensation
equivalent to the rate of the first eight hours on a holiday or
rest day plus at least thirty percent (30%) thereof.
Proof of Work/Employer Obligation
S OCIAL S ECURITY S YSTEM V . C OURT OF APPEALS (2000)
Night shift Differential
See Annex B for ILO Conventions 89 (1948) and 171 (1990)
Article 86. Night shift differential. — Every employee shall
be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in the
morning.
S HELL O IL C O . OF THE P HILIPPINES , L TD . V . L ABOR U NION
(1948)
L EPANTO C ONSOLIDATED M INING C O . V . L EPANTO L OCAL
S TAFF U NION , (2008)
Coverage/Exclusion
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE II
Section 1. Coverage. — This Rule shall apply to ALL
employees EXCEPT:
(a) Those of the government and any of its political
subdivisions, including government-owned and/or controlled
corporations;
(b) Those of retail and service establishments regularly
employing not more than five (5) workers;
(c) Domestic helpers and persons in the personal service of
another;
(d) Managerial employees as defined in Book Three of this
Code;
(e) Field personnel and other employees whose time and
performance is unsupervised by the employer including those
who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing
work irrespective of the time consumed in the performance
thereof.
Additional Compensation
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE II
Section 2. Night shift differential. — An employee shall be
paid night shift differential of no less than ten per cent (10%)
of his regular wage for each hour of work performed between
ten o'clock in the evening and six o'clock in the morning.
Section 3. Additional compensation. — Where an employee
is permitted or suffered to work on the period covered after
his work schedule, he shall be entitled to his regular wage plus
at least twenty-five per cent (25%) and an additional amount
of no less than ten per cent (10%) of such overtime rate for
each hour or work performed between 10 p.m. to 6 a.m.
Section 4. Additional compensation on scheduled rest
day/special holiday. — An employee who is required or
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permitted to work on the period covered during rest days
and/or special holidays not falling on regular holidays, shall be
paid a compensation equivalent to his regular wage plus at
least thirty (30%) per cent and an additional amount of not
less than ten (10%) per cent of such premium pay rate for each
hour of work performed.
Section 5. Additional compensation on regular holidays. —
For work on the period covered during regular holidays, an
employee shall be entitled to his regular wage during these
days plus an additional compensation of no less than ten
(10%) per cent of such premium rate for each hour of work
performed.
Section 6. Relation to agreements. — Nothing in this Rule
shall justify an employer in withdrawing or reducing any
benefits, supplements or payments as provided in existing
individual or collective agreements or employer practice or
policy.
Night Worker
RA 10151 E MPLOYMENT OF N IGHT WORKERS
Section 4. A new chapter is hereby inserted after Book Three, Title
III of Presidential Decree No. 442, to read as follows:
“Chapter V
Employment of Night Workers
Article 154. Coverage. — This chapter shall apply to all
persons, who shall be employed or permitted or suffered to
work at night, except those employed in agriculture, stock
raising, fishing, maritime transport and inland navigation,
during a period of not less than seven (7) consecutive hours,
including the interval from midnight to five o’clock in the
morning, to be determined by the Secretary of Labor and
Employment, after consulting the workers’
representatives/labor organizations and employers.
Night worker means any employed person whose work
requires performance of a substantial number of hours of
night work which exceeds a specified limit. This limit shall be
fixed by the Secretary of Labor after consulting the workers’
representatives/labor organizations and employers.
Article 155. Health Assessment, – At their request, workers
shall have the right to undergo a health assessment without
charge and to receive advice on how to reduce or avoid health
problems associated with their work:
(a) Before taking up an assignment as a night worker;
(b) At regular intervals during such an assignment; and
(c) If they experience health problems during such an
assignment which are not caused by factors other than the
performance of night work.
With the exception of a finding of unfitness for night work, the
findings of such assessments shall not be transmitted to others
without the workers’ consent and shall not be used to their
detriment.
Article 156. Mandatory Facilities. — Suitable first-aid
facilities shall be made available for workers performing night
work, including arrangements where such workers, where
necessary, can be taken immediately to a place for appropriate
treatment. The employers are likewise required to provide safe
and healthful working conditions and adequate or reasonable
facilities such as sleeping or resting quarters in the
establishment and transportation from the work premises to
the nearest point of their residence subject to exceptions and
guidelines to be provided by the DOLE.
Article 157. Transfer.— Night workers who are certified as
unfit for night work, due to health reasons, shall be
transferred, whenever practicable, to a similar job for which
they are fit to work.
If such transfer to a similar job is not practicable, these workers
shall be granted the same benefits as other workers who are
unable to work, or to secure employment during such period.
A night worker certified as temporarily unfit for night work
shall be given the same protection against dismissal or notice
of dismissal as other workers who are prevented from working
for reasons of health.
Article 158. Women Night Workers.— Measures shall be
taken to ensure that an alternative to night work is available to
women workers who would otherwise be called upon to
perform such work:
(a) Before and after childbirth, for a period of at least sixteen
(16) weeks, which shall be divided between the time before
and after childbirth;
(b) For additional periods, in respect of which a medical
certificate is produced stating that said additional periods are
necessary for the health of the mother or child:
(1) During pregnancy;
(2) During a specified time beyond the period, after
childbirth is fixed pursuant to subparagraph (a) above,
the length of which shall be determined by the DOLE
after consulting the labor organizations and employers.
During the periods referred to in this article:
(i) A woman worker shall not be dismissed or given notice of
dismissal, except for just or authorised causes provided for in
this Code that are not connected with pregnancy, childbirth
and childcare responsibilities.
(ii) A woman worker shall not lose the benefits regarding her
status, seniority, and access to promotion which may attach to
her regular night work position.
Pregnant women and nursing mothers may he allowed to
work at night only if a competent physician, other than the
company physician, shall certify their fitness to render night
work, and specify, in the ease of pregnant employees, the
period of the pregnancy that they can safely work.
The measures referred to in this article may include transfer to
day work where this is possible, the provision of social security
benefits or an extension of maternity leave.
The provisions of this article shall not have the effect of
reducing the protection and benefits connected with maternity
leave under existing laws.
Article 159. Compensation.— The compensation for night
workers in the form of working time, pay or similar benefits
shall recognize the exceptional nature of night work.
Article 160. Social Services. —Appropriate social services
shall be provided for night workers and, where necessary, for
workers performing night work.
Article 161. Night Work Schedules.— Before introducing
work schedules requiring the services of night workers, the
employer shall consult the workers’ representatives/labor
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organizations concerned on the details of such schedules and
the forms of organization of night work that are best adapted
to the establishment and its personnel, as well as on the
occupational health measures and social services which are
required. In establishments employing night workers,
consultation shall take place regularly.
Section 8. Penalties.— Any violation of this Act, and the rules
and regulations issued pursuant hereof shall be punished with
a fine of not less than Thirty thousand pesos (P30,000.00) nor
more than Fifty thousand pesos (P50,000.00) or imprisonment
of not less than six (6) months, or both, at the discretion of the
court. If the offense is committed by a corporation, trust, firm,
partnership or association, or other entity, the penalty shall be
imposed upon the guilty officer or officers of such corporation,
trust, firm, partnership or association, or entity.
Compulsory Work
WEEKLY REST PERIODS
Article 91. Right to weekly rest day. –
a. It shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest period of
not less than twenty-four (24) consecutive hours after every six
(6) consecutive normal work days.
b. The employer shall determine and schedule the weekly rest
day of his employees subject to collective bargaining
agreement and to such rules and regulations as the Secretary
of Labor and Employment may provide. However, the
employer shall respect the preference of employees as to their
weekly rest day when such preference is based on religious
grounds.
Coverage
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE III
Section 1. General statement on coverage. — This Rule shall
apply to ALL employers whether operating for profit or not,
including public utilities operated by private persons.
Section 2. Business on Sundays/Holidays. — All
establishments and enterprises may operate or open for
business on Sundays and holidays provided that the
employees are given the weekly rest day and the benefits as
provided in this Rule.
Section 3. Weekly rest day. — Every employer shall give his
employees a rest period of not less than twenty-four (24)
consecutive hours after every six consecutive normal work
days.
Determination
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE III
Section 4. Preference of employee. — The preference of the
employee as to his weekly day of rest shall be respected by the
employer if the same is based on religious grounds. The
employee shall make known his preference to the employer in
writing at least seven (7) days before the desired effectivity of
the initial rest day so preferred. Where, however, the choice of
the employee as to his rest day based on religious grounds will
inevitably result in serious prejudice or obstruction to the
operations of the undertaking and the employer cannot
normally be expected to resort to other remedial measures,
the employer may so schedule the weekly rest day of his
choice for at least two (2) days in a month.
Section 5. Schedule of rest day. — (a) Where the weekly rest
is given to all employees simultaneously, the employer shall
make known such rest period by means of a written notice
posted conspicuously in the work place at least one week
before it becomes effective. (b) Where the rest period is not
granted to all employees simultaneously and collectively, the
employer shall make known to the employees their respective
schedules of weekly rest through written notices posted
conspicuously in the work place at least one week before they
become effective.
Article 92. When employer may require work on a rest day.
– The employer may require his employees to work on any
day:
a. In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity to prevent loss of life and property,
or imminent danger to public safety;
b. In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the
employer would otherwise suffer;
c. In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be
expected to resort to other measures;
d. To prevent loss or damage to perishable goods;
e. Where the nature of the work requires continuous
operations and the stoppage of work may result in irreparable
injury or loss to the employer; and
f. Under other circumstances analogous or similar to the
foregoing as determined by the Secretary of Labor and
Employment.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE III
Section 6. When work on rest day authorized. — An
employer may require any of his employees to
work on his scheduled rest day for the duration of the
following emergencies and exceptional conditions:
(a) In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity, to prevent loss of life or property, or
in cases of force majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on machineries,
equipment or installations to avoid serious loss which the
employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be
expected to resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the employees
have to work continuously for seven (7) days in a week or
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more, as in the case of the crew members of a vessel to
complete a voyage and in other similar cases; and
(f) When the work is necessary to avail of favorable
weather or environmental conditions where performance or
quality of work is dependent thereon.
No employee shall be required against his will to work on his
scheduled rest day except under circumstances provided in
this Section: Provided, However, that where an employee
volunteers to work on his rest day under other circumstances,
he shall express such desire in writing, subject to the
provisions of Section 7 hereof regarding additional
compensation.
Premium Pay
Article 93. Compensation for rest day, Sunday or holiday
work.--
a. Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular
wage. An employee shall be entitled to such additional
compensation for work performed on Sunday only when it is
his established rest day.
b. When the nature of the work of the employee is such that
he has no regular workdays and no regular rest days can be
scheduled, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage for work
performed on Sundays and holidays.
c. Work performed on any special holiday shall be paid an
additional compensation of at least thirty percent (30%) of the
regular wage of the employee. Where such holiday work falls
on the employee’s scheduled rest day, he shall be entitled to
an additional compensation of at least fifty
per cent (50%) of his regular wage.
(e) Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of a
higher premium pay than that prescribed under this Section,
the employer shall pay such higher rate.
Section 8. Paid-off days. — Nothing in this Rule shall justify
an employer in reducing the compensation of his employees
for the unworked Sundays, holidays, or other rest days which
are considered paid-off days or holidays by agreement or
practice subsisting upon the effectivity of the Code.
CBA on Higher Premium Pay
Article 93. Compensation for rest day, Sunday or holiday
work.--
d. Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of a
higher premium pay than that prescribed under this Article,
the employer shall pay such higher rate.
F L E X I B L E W O R K A R R AN G E M E N TS
Compressed Workweek Schemes
D EPT . A DVISORY 02-04
I MPLEMENTATION OF C OMPRESSED WORKWEEK S CHEMES

O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE

B OOK III, R ULE III
Section 7. Compensation on rest day/Sunday/holiday. —
(a) Except those employees referred to under Section 2, Rule I,
Book Three, an employee who is made or permitted to work
on his scheduled rest day shall be paid with an additional
compensation of at least 30% of his regular wage. An
employee shall be entitled to such additional compensation
for work performed on a Sunday only when it is his established
rest day
(b) Where the nature of the work of the employee is such that
he has no regular work days and no regular rest days can be
scheduled, he shall be paid an additional compensation of at
least 30% of his regular wage for work performed on Sundays
and holidays.
(c) Work performed on any special holiday shall be paid with
an additional compensation of at least 30% of the regular
wage of the employees. Where such holiday work falls on the
employee's scheduled rest day, he shall be entitled to
additional compensation of at least 50% of his regular wage.
(d) The payment of additional compensation for work
performed on regular holiday shall be governed by Rule IV,
Book Three, of these regulations.

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D EPT . A DVISORY 02-09

G UIDELINES ON THE A DOPTION OF F LEXIBLE WORK
A RRANGEMENTS

Flexible Work Arrangements

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51 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD

D EPT . A DVISORY 04-10

G UIDELINES ON THE I MPLEMENTATION OF F LEXIBLE WORK
A RRANGEMENTS AND THE E XEMPTION FROM THE
N IGHTWORK P ROHIBITION FOR WOMEN E MPLOYEES IN
THE B USINESS P ROCESS OUTSOURCING I NDUSTRY

H O L I D AY S
See Annex C for Full Omnibus Rules Book III Rule IV (Holiday Pay)
Executive Order 203 (1987); EO No. 292, 26 July 2007; R.A.
9177; R.A. 9492; R.A. 9849; Proc. 831 & Labor Advisory No.
9,series of 2014

Definition

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52 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
R ULES I MPLEMENTING RA 6727
W AGE R ATIONALIZATION A CT 20
f) "Retail Establishment" is one principally engaged in the
sale of goods to end-users for personal or household use;
g) "Service Establishment" is one principally engaged in the
sale of service to individuals for their own or household use &
is generally recognized as such;
Coverage/Exclusions
Article 94. Right to holiday pay.-
a. Every worker shall be paid his regular daily wage during
regular holidays, except in retail and service
establishments regularly employing less than ten (10) workers;
M ANTRADE /FMMC D IVISION E MPLOYEES AND W ORKERS
U NION V . B ACUNGAN (1986)
Holiday Pay
Article 94. Right to holiday pay.-
b. The employer may require an employee to work on any
holiday but such employee shall be paid a compensation
equivalent to twice his regular rate;
Faculty in Private School
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE IV
Section 8. Holiday pay of certain employees. — (a) Private
school teachers, including faculty members of colleges and
universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the
regular holidays during Christmas vacation; premium pay than
that prescribed under this Section, the employer shall pay such
higher rate.
xx
Divisor as Factor
T RANS -ASIA P HIL . E MPLOYEES ASSOCIATION V . NLRC
(1999)
Sunday
Article 93. Compensation for rest day, Sunday or holiday
work.--
a. Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional
compensation of at least 30% of his regular wage. An
employee shall be entitled to such additional compensation
for work performed on Sunday only when it is his established
rest day.
W ELLINGTON I NVESTMENT I NC . V . T RAJANO (1995)
20
Discussed under Wage Fixing Machinery
Muslim Holiday
PD 1083 C ODE OF M USLIM P ERSONAL L AWS
Article 169. Official Muslim holidays. The following are
hereby recognized as legal Muslim holidays:
(a) 'Amun Jadid (New Year), which falls on the first day of the
first lunar month of Muharram;
(b) Maulid-un-Nabi (Birthday of the Prophet Muhammad),
which falls on the twelfth day of the third lunar month of Rabi-
ul-Awwal;
(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey and Ascension of
the Prophet Muhammad), which falls on the twenty-seventh
day of the seventh lunar month of Rajab;
(d) 'Id-ul-Fitr (Hari Raya Pausa), which falls on the first day of
the tenth lunar month of Shawwal, commemorating the end of
the fasting season; and
(e) 'Id-ul-Adha (Hari Raja Haji), which falls on the tenth day of
the twelfth lunar month of Dhu 1-Hijja.
Article 170. Provinces and cities where officially observed.
(1) Muslim holidays shall be officially observed in the Provinces
of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao,
North Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga
del Norte and Zamboanga del Sur, and in the Cities of
Cotabato, Iligan, Marawi, Pagadian, and Zamboanga and in
such other Muslim provinces and cities as may hereafter be
created.
(2) Upon proclamation by the President of the Philippines,
Muslim holidays may also be officially observed in other
provinces and cities.
Article 171. Dates of observance. - The dates of Muslim
holidays shall be determined by the Office of the President of
the Philippines in accordance with the Muslim Lunar Calendar
(Hijra).
Article 172. Observance of Muslim employees.
(1) All Muslim government officials and employees in places
other than those enumerated under Article 170 shall also be
excused from reporting to office in order that they may be
able to observe Muslim holidays.
(2) The President of the Philippines may, by proclamation,
require private offices, agencies or establishments to excuse
their Muslim employees from reporting for work during a
Muslim holiday without reduction in their usual compensation.
S AN M IGUEL C ORP . V . C OURT OF APPEALS (2002)
Absences
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE IV
Section 6. Absences. — (a) All covered employees shall be
entitled to the benefit provided herein when they are on leave
of absence with pay. Employees who are on leave of absence
without pay on the day immediately preceding a regular
holiday may not be paid the required holiday pay if he has not
worked on such regular holiday.
xx
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Non-Working/Schedule of Rest Day
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE IV
Section 6. Absences. —
Xx
(c) Where the day immediately preceding the holiday is a non-
working day in the establishment or the scheduled rest day of
the employee, he shall not be deemed to be on leave of
absence on that day, in which case he shall be entitled to the
holiday pay if he worked on the day immediately preceding
the nonworking day or rest day.
S E R V I C E I N C E N TI V E L E A V E
Coverage
Article 95. Right to service incentive leave. –
a. Every employee who has rendered at least one year of
service shall be entitled to a yearly service incentive leave of
five days with pay.
b. This provision shall not apply to those who are already
enjoying the benefit herein provided, those enjoying vacation
leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees or
in establishments exempted from granting this benefit by the
Secretary of Labor and Employment after considering the
viability or financial condition of such establishment.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE V
Section 1. Coverage. — This rule shall apply to all employees
except:
(a) Those of the government and any of its political
subdivisions, including government-owned and controlled
corporations;
(b) Domestic helpers and persons in the personal service of
another;
(c) Managerial employees as defined in Book Three of this
Code;
(d) Field personnel and other employees whose performance is
unsupervised by the employer including those who are
engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof;
(e) Those who are already enjoying the benefit herein
provided;
(f) Those enjoying vacation leave with pay of at least five days;
and
(g) Those employed in establishments regularly employing less
than ten employees.
M AKATI H ABERDASHERY I NC . N. NLRC (1989)
L ABOR C ONGRESS V . NLRC (1998)
D AVID V . M ACASIO (2014)
Requirements; Treatment of Benefit
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE V
Section 2. Right to service incentive leave. — Every
employee who has rendered at least one year of service shall
be entitled to a yearly service incentive leave of five days with
pay.
Section 3. Definition of certain terms. — The term "at least
one-year service" shall mean service for not less than 12
months, whether continuous or broken reckoned from the
date the employee started working, including authorized
absences and paid regular holidays unless the working days in
the 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 shall be considered as one year.
Section 5. Treatment of benefit. — The service incentive
leave shall be commutable to its money equivalent if not used
or exhausted at the end of the year.
Computation and Liability
S ENTINEL S ECURITY AGENCY , I NC . V . NLRC (1998)
AUTO B US T RANSPORT S YSTEMS , I NC . V . B AUTISTA ,
SUPRA
P A T E R N I TY L E A V E
Coverage
RA 8187 P ATERNITY L EAVE A CT OF 1996
Section 2. Notwithstanding any law, rules & regulations to the
contrary, every married male employee in the private &
public sectors shall be ENTITLED to a paternity leave of
seven (7) days with full pay for the first four (4) deliveries of
the legitimate spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his employer
of the pregnancy of his legitimate spouse & the expected date
of such delivery.
For purposes, of this Act, delivery shall include childbirth or
any miscarriage.
Section 3. Definition of Term. - For purposes of this Act,
Paternity Leave refers to the benefits granted to a married
male employee allowing him not to report for work for 7 days
but continues to earn the compensation therefor, on the
condition that his spouse has delivered a child or suffered a
miscarriage for purposes of enabling him to effectively lend
support to his wife in her period of recovery &/or in the
nursing of the newly-born child.
R EVISED IRR OF RA 8187
Section. 1. Definition of Terms. — As used in these Rules, the
following terms shall have the meaning as indicated
hereunder:
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54 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
a. “Paternity leave” refers to the leave benefits granted to a
married male employee allowing him not to report for work
for seven (7) days but continues to earn the compensation
therefor, on the condition that his spouse has delivered a child
or suffered a miscarriage for the purpose of lending support to
his wife during her period of recovery &/or in nursing of the
newly born child.
b. “Employee” refers to any person who performs services for
another & receives compensation therefor, provided an
employer-employee relationship exists between them.
c. “Delivery” refers to childbirth or miscarriage.
d. “Spouse” refers to the lawful wife. For this purpose, lawful
wife refers to a woman who is legally married to the male
employee concerned.
e. “Cohabiting” refers to the obligation of the husband &
wife to live together.
Section 2. Coverage.— Every married male employee in the
private sector shall be entitled to paternity leave benefits of
seven (7) days with full pay for the first four deliveries by his
lawful spouse under such terms & conditions as hereinafter
provided. The rules on paternity leave of employees in the
public sector shall be promulgated by the Civil Service
Commission.
Conditions for Availment
RA 8187 P ATERNITY L EAVE A CT OF 1996
Section 2. Notwithstanding any law, rules & regulations to the
contrary, every married male employee in the private & public
sectors shall be ENTITLED to a paternity leave of seven (7) days
with full pay for the first four (4) deliveries of the legitimate
spouse with whom he is cohabiting. The male employee
applying for paternity leave shall notify his employer of the
pregnancy of his legitimate spouse & the expected date of
such delivery.
For purposes, of this Act, delivery shall include childbirth or
any miscarriage.
R EVISED IRR OF RA 8187
Section 3. Conditions to entitlement of paternity leave
benefits. — A married male employee shall be entitled to
paternity benefits provided that: a. he is an employee at the
time of delivery of his child; b. he is cohabiting with his spouse
at the time she gives birth or suffers a miscarriage. prcd c. he
has applied for paternity leave in accordance with Sec. 4
hereof; & d. his wife has given birth or suffered a miscarriage.
Section 4. Application for leave. — The married male
employees shall apply for paternity leave with his employer
within a reasonable period of time from the expected date of
delivery by the pregnant spouse, or within such period as may
be provided by company rules & regulations or by collective
bargaining agreement, provided that prior application for
leave shall not be required in case of miscarriage.
Availment
R EVISED IRR OF RA 8187
Section 5. Availment. — Paternity leave benefits shall be
granted to the qualified employee after the delivery by his
wife, without prejudice to an employer allowing an employee
to avail of the benefit before or during the delivery; provided,
that the total number of days shall not exceed seven (7) days
for each delivery.
Benefits, Rules, Sec. 6
R EVISED IRR OF RA 8187
Section 6. Benefits. — The employee is entitled to his full pay,
consisting of basic salary, for the seven (7) days during which
he is allowed not to report for work, provided, that his pay
shall not be less than the mandated minimum wage.
Treatment of Benefit
R EVISED IRR OF RA 8187
Section. 7. Non-commutation of benefits. — In the event
that paternity leave benefit is not availed of, said leave shall
not be convertible to cash.
Section 8. Non-diminution clause. — Nothing in these Rules
shall be construed to reduce or replace any existing benefits of
any kind granted under existing laws, decrees, executive
orders, or any contract, agreement or policy between
employer & employee.
Section 9. Crediting of existing benefits. — Where a male
employee is already enjoying the paternity leave benefits by
reason of contract, company policy or collective bargaining
agreement, the following rules shall apply: a. If the existing
paternity leave benefit is greater than the benefit herein
provided, the greater benefit shall prevail; b. If the existing
paternity leave is less than that provided herein, such existing
benefit shall be adjusted to the extent of the difference.
However, where a contract, company policy or collective
bargaining agreement provides for an emergency or
contingency leave without specific provisions on paternity
leave, the paternity leave as herein provided shall apply in full.
Penalty
RA 8187 P ATERNITY L EAVE A CT OF 1996
Section 5. Penalty - Any person, corporation, trust, firm,
partnership, association or entity found violating this Act or
the rules & regulations promulgated thereunder shall be
punished by a fine not exceeding Twenty-five thousand pesos
(P25,000) or imprisonment of not less than thirty (30)days nor
more than six (6) months.
If the violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entity's responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing
director or partner directly responsible therefor.
R EVISED IRR OF RA 8187
Section. 10. Penalty. — Any person, corporation, trust, firm,
partnership, association or entity found violating any provision
of these Rules shall be penalized by a fine not exceeding
twenty five thousand pesos (P25,000) or imprisonment of not
less than thirty (30) days nor more than six (6) months. If the
violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entity’s responsible
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officers, including but not limited to, the president, vice
president, chief executive officer, general manager, managing
director or partner directly responsible therefor.
P AR E N T A L L E A V E
Coverage
RA 8972 S OLO P ARENTS ’ WELFARE A CT OF 2000
Section 8. Parental Leave - In addition to leave privileges
under existing laws, parental leave of not more than seven (7)
working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year.
Section 3. Definition of Terms. - Whenever used in this Act,
the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the
following categories:
(1) A woman who gives birth as a result of rape & other
crimes against chastity EVEN WITHOUT a final
conviction of the offender: PROVIDED, That the mother
keeps & raises the child;
(2) Parent left solo or alone with the responsibility of
parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of
parenthood while the spouse is detained OR is
serving sentence for a criminal conviction for at
least 1 year;
(4) Parent left solo or alone with the responsibility of
parenthood due to physical &/or mental incapacity
of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of
parenthood due to legal separation or de facto
separation from spouse for at least 1 year, AS LONG
AS he/she is entrusted with the custody of the children;
(6) Parent left solo or alone with the responsibility of
parenthood due to declaration of nullity or
annulment of marriage as decreed by a court or by a
church as long as he/she is entrusted with the custody
of the children;
(7) Parent left solo or alone with the responsibility of
parenthood due to abandonment of spouse for at
least 1 year;
(8) Unmarried mother/father who has preferred to keep
& rear her/his child/children instead of having others
care for them or give them up to a welfare institution;
(9) Any other person who SOLELY provides parental
care & support to a child or children;
(10) Any family member who assumes the responsibility
of head of family as a result of the death,
abandonment, disappearance or prolonged absence of
the parents or solo parent.
A change in the status or circumstance of the parent claiming
benefits under this Act, such that he/she is no longer left alone
with the responsibility of parenthood, shall terminate his/her
eligibility for these benefits.
(b) "Children" - refer to those living with & dependent upon
the solo parent for support who are unmarried, unemployed &
not more than eighteen (18) years of age, or even over
eighteen (18) years but are incapable of self-support because
of mental &/or physical defect/disability.
(c) "Parental responsibility" - with respect to their minor
children shall refer to the rights & duties of the parents as
defined in Art. 220 of Executive Order No. 209, as amended,
otherwise known as the "Family Code of the Philippines."
(d) "Parental leave" - shall mean leave benefits granted to a
solo parent to enable him/her to perform parental duties &
responsibilities where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo
parent employee to vary his/her arrival & departure time
without affecting the core work hours as defined by the
employer.
Criteria for Support
RA 8972 S OLO P ARENTS ’ WELFARE A CT OF 2000
Section 4. Criteria for Support. - Any solo parent whose
income in the place of domicile falls below the poverty
threshold as set by the National Economic & Development
Authority (NEDA) & subj. to the assessment of the DSWD
worker in the area shall be eligible for assistance: Provided,
however, That any solo parent whose income is above the
poverty threshold shall enjoy the benefits mentioned in Sec.s
6, 7 & 8 of this Act.
R ULES & R EGULATIONS I MPLEMENTING RA 8972
Section 7. Criteria for Support – Any solo parent whose
income in the place of domicile falls equal to or below the
poverty threshold as set by the NSCB & subj. to the
assessment of the duly appointed or designated social worker
in the area shall be eligible for assistance: Provided, however,
That any solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in Sections 16,
17, 18, 19, 20, 21 & 23 of these Rules. For purposes of the Act
& these Rules, the place of domicile shall refer to the residence
mentioned in Sec. 8(a) of these Rules.
Conditions for Availment
R ULES & R EGULATIONS I MPLEMENTING RA 8972
Section 18. Parental Leave – In addition to leave privileges
under existing laws, parental leave of NOT MORE than seven
(7) working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year.
The seven-day parental leave shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental Leave –
A solo parent shall be entitled to parental leave provided
that:
(a) He/She has rendered at least one (1) year of service
whether continuous or broken at the time of the affectivity
of the Act;
(b) He/She has notified his/her employer of the availment
thereof within a reasonable time period; &
(c) He/She has presented a Solo Parent Identification Card
to his/her employer.
Other Benefits
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RA 8972 S OLO P ARENTS ’ WELFARE A CT OF 2000
Section 6. Flexible Work Schedule. - The employer shall
provide for a flexible working schedule for solo parents:
Provided, That the same shall not affect individual & company
productivity: Provided, further, That any employer may request
exemption from the above requirements from the DOLE on
certain meritorious grounds.
Section 7. Work Discrimination. - No employer shall
discriminate against any solo parent employee with respect to
terms & conditions of employment on account of his/her
status.
R ULES & R EGULATIONS I MPLEMENTING RA 8972
Section 16. Flexible Work Schedule – The employer shall
provide for a flexible work schedule for solo parents: Provided,
That the same shall not affect individual & company
productivity: Provided further, That any employer may request
exemption from the above requirements from the DOLE on
certain meritorious grounds. In the case of employees in the
govt service, flexible working hours will be subj. to the
discretion of the head of the agency. In no case shall the
weekly working hours be reduced in the event the agency
adopts the flexible working hours schedule format (flexi-time).
In the adoption of flexi-time, the core working hours shall be
prescribed taking into consideration the needs of the service.
Section 17. Work Discrimination – No employer shall
discriminate against any solo parent employee with respect to
terms & conditions of employment on account of his/her
status.
Treatment of Benefit
R ULES & R EGULATIONS I MPLEMENTING RA 8972
Section 3. Construction – These Rules shall be liberally
construed in favor of the solo parent & applied in accordance
with & in furtherance of the policy & objectives of the law. In
case of conflict &/or ambiguity, which may arise in the
implementation of these Rules, the concerned agencies shall
issue the necessary clarification.
Section 20. Non-conversion of Parental Leave – In the event
that the parental leave is not availed of, said leave shall not be
convertible to cash unless specifically agreed upon previously.
However, if said leave were denied an employee as a result of
non-compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a basis for
the computation of damages.
Section 21. Crediting of Existing Leave – If there is an
existing or similar benefit under a company policy, or a
collective bargaining agreement or collective negotiation
agreement the same shall be credited as such. If the same is
greater than the seven (7) days provided for in the Act, the
greater benefit shall prevail. Emergency or contingency leave
provided under a company policy or a collective bargaining
agreement shall not be credited as compliance with the
parental leave provided for under the Act & these Rules.
SERVICE CHARGES
Covered and Exclusion
Art. 96. Service charges. - All service charges collected by
hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five percent (85%) for all
covered employees and fifteen percent (15%) for
management. The share of the employees shall be equally
distributed among them. In case the service charge is
abolished, the share of the covered employees shall be
considered integrated in their wages.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE V I
Section 1. Coverage. — This rule shall apply only to
establishments collecting service charges such as hotels,
restaurants, lodging houses, night clubs, cocktail lounge,
massage clinics, bars, casinos and gambling houses, and
similar enterprises, including those entities operating primarily
as private subsidiaries of the Government.
Section 2. Employees covered. — This rule shall apply to all
employees of covered employers, regardless of their positions,
designations or employment status, and irrespective of the
method by which their wages are paid except to managerial
employees.
As used herein, a "managerial employee" shall mean one who
is vested with powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign, or discipline employees or to
effectively recommend such managerial actions. All employees
not falling within this definition shall be considered rank-and-
file employees.
Sharing and Integration
Art. 96. Service charges. - All service charges collected by
hotels, restaurants and similar establishments shall be
distributed at the rate of 85% for all employees and 15% for
management. The share of the employees shall be equally
distributed among them. In case the service charge is
abolished, the share of the covered employees shall be
considered integrated in their wages.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE V I
Section 3. Distribution of service charges. — All service
charges collected by covered employers shall be distributed at
the rate of 85% for the employees and 15% for the
management. The 85% shall be distributed equally among the
covered employees. The 15% shall be for the disposition by
management to answer for losses and breakages and
distribution to managerial employees at the discretion of the
management in the latter case.
Section 4. Frequency of distribution. — The shares referred
to herein shall be distributed and paid to the employees not
less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days.
Section 5. Integration of service charges. — In case the
service charges is abolished the share of covered employees
shall be considered integrated in their wages. The basis of the
amount to be integrated shall be the average monthly share of
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each employee for the past twelve (12) months immediately
preceding the abolition of withdrawal of such charges.
Minimum Wages and Wage Fixing
Machinery
M I NI M UM W A G E
Article 99. Regional minimum wages. - The minimum wage
rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and
Productivity Boards. (As amended by Sec. 3, RA. 6727, June
9, 1989).
1987 C ONSTITUTION
A RTICLE XIII – S OCIAL J USTICE A ND H UMAN R IGHTS
Section 3. xx
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision-making processes affecting their rights and
benefits as may be provided by law.
xx
The State shall regulate the relations between workers and
employers, recognizing the right of laborIN to its just share
in the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
growth.
Coverage
Article 97. Definitions. -
b. "Employer" includes any person acting directly or indirectly
in the interest of an employer in relation to an employee and
shall include the government and all its branches, subdivisions
and instrumentalities, all government-owned or controlled
corporations and institutions, as well as nonprofit private
institutions, or organizations.
c. "Employee" includes any individual employed by an
employer.
e. "Employ" includes to suffer or permit to work.
Art. 98. Application of Title. - This Title shall not apply to
farm tenancy or leasehold, domestic service and persons
working in their respective homes in needle work or in any
cottage industry duly registered in accordance with law.
P HILIPPINE F ISHERIES D EVELOPMENT AUTHORITY V . NLRC
(1992)
Definition
Article 97. Definitions. -
f. "Wage" paid to any employee shall mean the remuneration
or earnings, HOWEVER designated, capable of being
expressed in terms of money, whether fixed or ascertained
on a time, task, piece, or commission basis, or other method of
calculating the same, which is payable by an employer to an
employee under a written or unwritten contract of
employment for work done or to be done, or for services
rendered or to be rendered and includes the fair and
reasonable value, as determined by the Sec. of Labor, of board,
lodging, or other facilities customarily furnished by the
employer to the employee.
"Fair and reasonable value" shall NOT include any profit to the
employer, or to any person affiliated with the employer.
Rules
No Work, No Pay (A fair day’s wage for a fair day’s labor)
AKLAN E LECTRIC C ORP ., I NC . V . NLRC (2000)
S UGUE V . T RIUMPH I NTERNATIONAL (P HILS .) (2009)
Equal Pay for Work of Equal Value
ILO CONVENTION 100 (1951)
I NTERNATIONAL S CHOOL A LLIANCE OF E DUCATORS V .
Q UISUMBING (2000)
That public policy abhors inequality and discrimination is
beyond contention. In the workplace, where the relations
between capital and labor are often skewed in favor of capital,
inequality and discrimination by the employer are all the more
reprehensible.
“Persons who work with substantially equal qualifications, skill,
effort and responsibility, under similar conditions, should be
paid similar salaries. This rule applies to the School, its
"international character" notwithstanding.
The School contends that petitioner has not adduced evidence
that local-hires perform work equal to that of foreign-
hires. The Court finds this argument a little cavalier. If an
employer accords employees the same position and rank, the
presumption is that these employees perform equal work. This
presumption is borne by logic and human experience. If the
employer pays one employee less than the rest, it is not for
that employee to explain why he receives less or why the
others receive more. That would be adding insult to injury. The
employer has discriminated against that employee; it is for the
employer to explain why the employee is treated unfairly.”
Form: Agreement for Compensation of Services
Article 97. Definitions. -
f. "Wage" paid to any employee shall mean the remuneration
or earnings, HOWEVER designated, capable of being
expressed in terms of money, whether fixed or ascertained on
a time, task, piece, or commission basis, or other method of
calculating the same, which is payable by an employer to an
employee under a written or unwritten contract of
employment for work done or to be done, or for services
rendered or to be rendered xx
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ARMS T AXI V . NLRC (1993)
L EGEND H OTEL (M ANILA ) V . H ERNANI S. R EALUYO (2012)
Wages Rule VII, VII-A, Secs. 4-7; Wage Order Nos.
NCR-16, 9 May 2011; NCR-17, 3 June 2012; NCR-18,
6 Sept 2013; RA No. 9547, secs. 1-2
Determination of Compliance with Minimum Wage
Article 61. Contents of apprenticeship agreements. -
Apprenticeship agreements, including the wage rates of
apprentices, shall conform to the rules issued by the SOLE. The
period of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates below
the legal minimum wage, which in no case shall start below 75
percent of the applicable minimum wage, may be entered into
only in accordance with apprenticeship programs duly
approved by the SOLE. The Department shall develop standard
model programs of apprenticeship. (As amended by Section 1,
Executive Order No. 111, December 24, 1986)
Article 75. Learnership agreement. - Any employer desiring
to employ learners shall enter into a learnership agreement
with them, which agreement shall include:
c. The wages or salary rates of the learners which shall begin at
not <75% of the applicable min. wage
Article 80. Employment agreement. - Any employer who
employs handicapped workers shall enter into an employment
agreement with them, which agreement shall include:
2. The rate to be paid the handicapped workers which shall not
<75% of the applicable min. wage
I RAN V . NLRC (1998)
In this case, the Court addressed the issue as to whether
commissions form part of the wage and therefore should be
taken into consideration in determining compliance with the
minimum wage.
HELD: The definition of wages under Art. 97 (f) explicitly
includes commissions as part of wages. While commissions
are, indeed, incentives or forms of encouragement to inspire
employees to put a little more industry on the jobs particularly
assigned to them, still these commissions are direct
remunerations for services rendered. In fact, commissions
have been defined as the recompense, compensation or
reward of an agent, salesman, executor, trustee, receiver,
factor, broker or bailee, when the same is calculated as a
percentage on the amount of his transactions or on the
profit to the principal.
MOREOVER, there is no law mandating that commissions be
paid only after the minimum wage has been paid to the
employee. Verily, the establishment of a minimum wage only
sets a floor below which an employees remuneration cannot
fall, NOT THAT commissions are excluded from wages in
determining compliance with the minimum wage law.
Facilities and Supplements/Allowances
M ILLARES V . NLRC & PICOP (1999)
SLL I NTERNATIONAL C ABLES S PECIALIST V . NLRC (2011)
Cash Wage/Commission
S ONGCO V . NLRC (1990)
B OIE T AKEDA V . D E LA S ERNA (1993)
P HILIPPINE D UPLICATORS V . NLRC (1995)
Gratuity and Salary/Wages, Difference
P LASTIC T OWN C ENTER C ORP . V . NLRC (1989)
Effect on Benefits
Article 100. Prohibition against elimination or diminution
of benefits. - Nothing in this Book shall be construed to
eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation
of this Code.
D AVAO F RUITS C ORPORATION V . ASSOCIATED L ABOR
U NION (1993)
W AG E F I X I N G M ACH I N E R Y
Rationale
RA 6727 W AGE R ATIONALIZATION A CT
Section 2. It is hereby declared the policy of the State to
rationalize the fixing of minimum wages and 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 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 reasonable returns on investment, expansion and
growth.
The State shall promote collective bargaining as the primary
mode of settling wages and other terms and conditions of
employment; and whenever necessary, the minimum wage
rates shall be adjusted in a fair and equitable manner,
considering existing regional disparities in the cost of living
and other socio-economic factors and the national economic
and social development plans.
Agencies in Wage Fixing Machinery
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National Wages and Productivity Commission
RA 6727 W AGE R ATIONALIZATION A CT
Section 3. In line with the declared policy under this Act,
Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and
127 are hereby incorporated into Presidential Decree No. 442,
as amended, to read as follows:
Article 120. Creation of the 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
Department of Labor and Employment (DOLE) for policy and
program coordination."
Article 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.
The Commission shall be composed of the SOLE as ex-officio
chairman, the Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice-chairman,
and two (2) members each from workers and employers
sectors who shall be appointed by the President of the
Philippines upon recommendation of the SOLE to be made on
the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term
of 5 years. The Executive Director of the Commission shall also
be a member of the Commission.
The Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two (2) Deputy Directors,
who shall be appointed by the President of the Philippines,
upon the recommendation of the Secretary of Labor and
Employment.
The Executive Director shall have the same rank, salary,
benefits and other emoluments as that of a Department
Assistant Secretary, while the Deputy Directors shall have the
same rank, salary, benefits and other emoluments as that of a
Bureau Director. The members of the Commission
representing labor and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management representatives
in the Employees' Compensation Commission.
Article 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.
Regional Tripartite Wages and Productivity Board
RA 6727 W AGE R ATIONALIZATION A CT
Section 3. In line with the declared policy under this Act,
Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and
127 are hereby incorporated into Presidential Decree No. 442,
as amended, to read as follows:
Article 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.
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.
Implementation of the plans, programs and projects of the
Regional Boards referred to in the second paragraph, letter (a)
of this Article, shall be through the respective regional offices
of the DOLE within their territorial jurisdiction; Provided,
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however, That the Regional Boards shall have technical
supervision over the regional office of the DOLE with respect
to the implementation of said plans, programs and projects.
Each Regional Board shall be composed of the Regional
Director of the Department of Labor and Employment as
chairman, the Regional Directors of the National Economic and
Development Authority and the Department of Trade and
Industry as vice-chairmen and two (2) members each from
workers and employers sectors who shall be appointed by the
President of the Philippines, upon the recommendation of the
Secretary of Labor and Employment, to be made on the basis
of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term
of five (5) years.
Each Regional Board to be headed by its chairman shall be
assisted by a Secretariat.
 Nasipit Lumber Company, Inc. v. NLRC,
289 SCRA 667 (1998)
Standards/Criteria for Minimum Wage Fixing
RA 6727 W AGE R ATIONALIZATION A CT
Section 3. In line with the declared policy under this Act,
Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and
127 are hereby incorporated into Presidential Decree No. 442,
as amended, to read as follows:
Article 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-a-vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of
employers;
(i) Effects on employment generation and family income;
and
(j) The equitable distribution of income and wealth along
the imperatives of economic and social development.
The wages prescribed in accordance with the provisions of this
Title shall be the standard prevailing minimum wages in every
region. These wages shall include wages varying within
industries, provinces or localities if in the judgment of the
Regional Board conditions make such local differentiation
proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other
entity engaged in business shall file and register annually with
the appropriate Regional Board, Commission and the National
Statistics Office an itemized listing of their labor component,
specifying the names of their workers and employees below
the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the
terms prescribed in the employment contracts, and their
corresponding salaries and wages.
Where the application of any prescribed wage increase by
virtue of law or Wage order issued by any Regional Board
results in distortions of the wage structure within an
establishment, the employer and the union shall negotiate to
correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure
under their CBA and, if it remains unresolved, through
voluntary arbitration. UNLESS otherwise agreed by the
parties in writing, such dispute shall be decided by the
voluntary arbitrator or panel of voluntary arbitrators within 10
calendar days from the time said dispute was referred to
voluntary arbitration.
In cases where there are NO CBA or recognized labor
unions, the employers and workers shall endeavor to correct
such distortions. Any dispute arising therefrom shall be settled
through the NCMB and, if it remains unresolved after 10
calendar days of conciliation, shall be referred to the
appropriate branch of the NLRC. It shall be mandatory for the
NLRC to conduct continuous hearings and decide the dispute
within 20 calendar days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall
NOT in ANY WAY DELAY the applicability of any increase in
prescribed wage rates pursuant to the provisions of law or
Wage Order.
As used herein, a wage distortion shall mean a situation
where an increase in prescribed wage rates results in the
elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among
employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiation.
All workers paid by result, including those who are paid on
piecework, takay, pakyaw or task basis, shall receive not less
than the prescribed wage rates per eight (8) hours work a day,
or a proportion thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship agreements
shall be considered automatically modified insofar as their
wage clauses are concerned to reflect the prescribed wage
rates."
Wage Order
RA 6727 W AGE R ATIONALIZATION A CT
Section 3. In line with the declared policy under this Act,
Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and
127 are hereby incorporated into Presidential Decree No. 442,
as amended, to read as follows:
Article 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
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criteria herein prescribed, shall proceed to determine whether
a Wage Order should be issued. Any such Wage Order shall
take effect AFTER 15 days from its complete publication in
at least 1 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 10 calendar days from the publication of such order.
It shall be mandatory for the Commission to decide such
appeal within 60 calendar days from the filing thereof.
The filing of the appeal DOES NOT 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 the corresponding increase, in the event such order is
affirmed.
Methods of Fixing
Floor Wage method
This method involves the fixing of determinate amount that
would be added to the prevailing statutory minimum wage.
Salary – Ceiling Method
As opposed to the floor wage method, the wage adjustment is
applied to employees receiving a certain denominated salary
ceiling. In other words, workers already being paid more than the
existing minimum wage (up to a certain amount stated in the
Wage Order) are also to be given a wage increase.
E MPLOYERS C ONFEDERATION OF THE P HILS . V. N ATIONAL
W AGE AND P RODUCTIVITY C OMMISSION (1991) P LASTIC
T OWN C ENTER C ORP . V . NLRC (1989)
Validity
M ETROPOLITAN B ANK AND T RUST C O ., I NC . V . N ATIONAL
W AGES P RODUCTIVITY C OMMISSION (2007)
Wage Distortion
P RUBANKERS ASSOCIATION V . P RUDENTIAL B ANK &
T RUST C O . (1999)
PBT implemented Wage Orders (wage increase and COLA) to
employees in the specific branches where it was applicable
(Bicol Region – Naga Branch Only). Prubankers Association
wrote PBT requesting that the Labor Management Committee
be immediately convened to discuss and resolve the alleged
wage distortion created in the salary structure upon the
implementation of the said wage orders. It claims that the
wage distortion was because the wages of employees in other
branches were not covered.
HELD:
Wage distortion involves four elements:
1. An existing hierarchy of positions w/ corresponding salary
rates
2. A significant change in the salary rate of a lower pay class
without a concomitant increase in the salary rate of a higher
one
3. The elimination of the distinction between the two levels
4. The existence of the distortion in the same region of the
country.
Wage distortion presupposes an increase in the compensation
of the lower ranks in an office hierarchy without a
corresponding raise for higher-tiered employees in the same
region of the country, resulting in the elimination or the severe
diminution of the distinction between the two groups. Such
distortion does not arise when a wage order gives
employees in one branch of a bank higher compensation
than that given to their counterparts in other regions
occupying the same pay scale, who are not covered by said
wage order. In short, the implementation of wage orders in
one region but not in others does not in itself necessarily
result in wage distortion.
B ANKARD E MPLOYEES U NION -WATU V . NLRC (2004)
The directors of Bankard, Inc. approved a new salary scale for
the purpose of making its hiring rate competitive in the labor
market. The new salary scale increased the hiring rates of new
employees, to wit: Levels I and V were increased by P1k while
Levels II, III and IV were increased by P900. As a result, Bankard
Employees Union-WATU demanded for salary increase of its
old, regular employees. Bankard refused on the ground that it
had no obligation to grant all its employees the same increase.
HELD:
Bankard cannot be legally obligated to correct the alleged
“wage distortion”, should it have existed in this case,
because the increase in the wages and salaries of the newly-
hired was not due to a prescribed law or wage order. The
fixing of hiring rates which resulted to wage increases was a
voluntary and unilateral increase made by Bankard.
W AG E P AY M E N T A N D P R O T E C TI O N
See Annex E for complete version of ILO Convention 95 (1949)
Form of Payment
ILO 95
P ROTECTION OF W AGES C ONVENTION (1949)
Article 3
1. Wages payable in money shall be paid ONLY in legal tender,
and payment in the form of promissory notes, vouchers or
coupons, or in any other form alleged to represent legal
tender, shall be prohibited.
2. The competent authority may permit or prescribe the
payment of wages by bank cheque or postal cheque or money
order in cases in which payment in this manner is customary or
is necessary because of special circumstances, or where a
collective agreement or arbitration award so provides, or,
where not so provided, with the consent of the worker
concerned.
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Article 102. Forms of Payment. - NO employer shall pay the
wages of an employee by means of promissory notes,
vouchers, coupons, tokens, tickets, chits, or any object
OTHER THAN legal tender, EVEN when expressly requested
by the employee. Payment of wages by check or money order
shall be allowed when such manner of payment is customary
on the date of effectivity of this Code, or is necessary because
of special circumstances as specified in appropriate regulations
to be issued by the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 1. Manner of Wage Payment. — As a general rule,
wages shall be paid in legal tender and the use of tokens,
promissory notes, vouchers, coupons, or any other form
alleged to represent legal tender is absolutely prohibited
EVEN when expressly requested by the employee.
Section 2. Frequency of distribution. — Payment of wages
by bank checks, postal checks or money orders is allowed
where such manner of wage payment is customary on the date
of the effectivity of the Code, where it is so stipulated in a
Place of Payment
collective agreement, or where all of the following conditions
are met: (a) There is a bank or other facility for encashment
within a radius of 1km from the workplace;
(b) The employer or any of his agents or representatives does
not receive any pecuniary benefit directly or indirectly from the
arrangement;
(c) The employees are given reasonable time during banking
hours to withdraw their wages from the bank which time shall
be considered as compensable hours worked if done during
working hours; and
(d) The payment by check is with the written consent of the
employees concerned if there is no collective agreement
authorizing the payment of wages by bank checks.
N EW C IVIL C ODE
Article 1705. The laborer's wages shall be paid in legal
currency.
C ONGSON V . NLRC (1995)
Time of Payment
Article 103. Definitions. -Wages shall be paid at least once
every 2 weeks OR twice a month at intervals not exceeding
16 days. If on account of force majeure or circumstances
beyond the employer’s control, payment of wages on or within
the time herein provided cannot be made, the employer shall
pay the wages immediately after such force majeure or
circumstances have ceased. No employer shall make
payment with less frequency than once a month. The
payment of wages of employees engaged to perform a task
which cannot be completed in 2 weeks shall be subject to the
following conditions, in the absence of a collective bargaining
agreement or arbitration award:
1. That payments are made at intervals not exceeding 16 days,
in proportion to the amount of work completed;
2. That final settlement is made upon completion of the work.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 3. Time of Payment. —
(a) Wages shall be paid not less than once every 2 weeks OR
twice a month at intervals not exceeding 16 days, UNLESS
payment cannot be made with such regularity due to force
majeure or circumstances beyond the employer's control in
which case the employer shall pay the wages immediately after
such force majeure or circumstances have ceased.
(b) In case of payment of wages by results involving work
which cannot be finished in 2 weeks, payment shall be made at
intervals not exceeding sixteen days in proportion to the
amount of work completed. Final settlement shall be made
immediately upon completion of the work.
G ILLES V . CA, S CHEMA K ONSULT (2009)
Article 104. Place of Payment. - Payment of wages shall be
made at or near the place of undertaking, except as otherwise
provided by such regulations as the Secretary of Labor and
Employment may prescribe under conditions to ensure greater
protection of wages.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 4. Place of Payment. —
As a general rule, the place of payment shall be at or near the
place of undertaking. Payment in a place other than the work
place shall be permissible ONLY under the following
circumstances:
(a) When payment cannot be effected at or near the place
of work by reason of the deterioration of peace and order
conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering
payment thereat impossible;
(b) When the employer provides free transportation to the
employees back and forth; and
(c) Under any other analogous circumstances; Provided, That
the time spent by the employees in collecting their wages shall
be considered as compensable hours worked;
(d) NO employer shall pay his employees in any bar, night or
day club, drinking establishment, massage clinic, dance hall, or
other similar places or in places where games are played with
stakes of money or things representing money except in the
case of persons employed in said places.
LABOR ADVISORY ON PAYMENT OF SALARIES THROUGH
ATM - ( SGD ) LEONARDO QUISUMBING
Payment through automated teller machine (ATM) of
banks provided the following conditions are met:
1. The ATM system of payment is with the written consent of
the employees concerned;
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2. The employees are given reasonable time to withdraw their
wages from the bank facility which time, if done during
working hours, shall be considered compensable hours
worked;
3. The system shall allow workers to receive their wages within
the period or frequency and in the amount prescribed under
the Labor Code, as amended; chanrobles virtual law library
4. There is a bank or ATM facility within a radius of 1km to the
place of work;
5. Upon request of the concerned employee/s, the employer
shall issue a record of payment of wages, benefits and
deductions for a particular period;
6. There shall be no additional expenses and no diminution of
benefits and privileges as a result of the ATM system of
payment;
7. The employer shall assume responsibility in case the wage
protection provisions of law and regulations are not complied
with under the arrangement. (Explanatory Bulletin issued by
DOLE Secretary Leonardo Quisumbing dated November 25,
1996).
Direct Payment of Wages
Article 105. Direct Payment of Wages. - Wages shall be paid
directly to the workers to whom they are due, EXCEPT:
a. In cases of force majeure rendering such payment
impossible or under other special circumstances to be
determined by the Secretary of Labor and Employment in
appropriate regulations, in which case, the worker may be paid
through another person under written authority given by the
worker for the purpose; or
b. Where the worker has died, in which case, the employer
may pay the wages of the deceased worker to the heirs of the
latter without the necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and the fact that
they are his heirs, to the exclusion of all other persons. If any
of the heirs is a minor, the affidavit shall be executed on his
behalf by his natural guardian or next-of-kin. The affidavit shall
be presented to the employer who shall make payment
through the SOLE or his representative. The representative of
the SOLE shall act as referee in dividing the amount paid
among the heirs. The payment of wages under this Article shall
absolve the employer of any further liability with respect to the
amount paid.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 5. Direct Payment of Wages. —
Payment of wages shall be made direct to the employee
entitled thereto EXCEPT in the following cases:
(a) Where the employer is authorized in writing by the
employee to pay his wages to a member of his family;
(b) Where payment to another person of any part of the
employee's wages is authorized by existing law, including
payments for the insurance premiums of the employee and
union dues where the right to checkoff has been recognized
by the employer in accordance with a collective agreement or
authorized in writing by the individual employees concerned;
(c) In case of death of the employee as provided in the
succeeding Section.
Section 6. Wages of Deceased Employee. — The payment of
the wages of a deceased employee shall be made to his heirs
WITHOUT the necessity of intestate proceedings. When the
heirs are of age, they shall execute an affidavit attesting to
their relationship to the deceased and the fact that they are his
heirs to the exclusion of all other persons. In case any of the
heirs is a minor, such affidavit shall be executed in his behalf
by his natural guardian or next of kin. Upon presentation of
the affidavit to the employer, he shall make payment to the
heirs as representative of the SOLE.
B ERMISO V . E SCANO , I NC . (1959)
W AG E P R O H I B I TI O N S
Wage Interference in Disposal of Wages
ILO 95
P ROTECTION OF W AGES C ONVENTION (1949)
Article 6
Employers shall be prohibited from limiting IN ANY
MANNER the freedom of the worker to dispose of his wages.
Article 112. Non-interference in disposal of wages. - No
employer shall limit or otherwise interfere with the freedom of
any employee to dispose of his wages. He shall not in any
manner force, compel, or oblige his employees to purchase
merchandise, commodities or other property from any other
person, or otherwise make use of any store or services of such
employer or any other person.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 12. Non-interference in Disposal of Wages. —
NO employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages and no
employer shall in any manner oblige any of his employees to
patronize any store or avail of the services offered by any
person.
Wage Deduction
ILO 95
P ROTECTION OF W AGES C ONVENTION (1949)
Article 8
1. Deductions from wages shall be permitted only under
conditions and to the extent prescribed by national laws or
regulations or fixed by collective agreement or arbitration
award.
2. Workers shall be informed, in the manner deemed most
appropriate by the competent authority, of the conditions
under which and the extent to which such deductions may be
made.
Article 9
Any deduction from wages with a view to ensuring a direct or
indirect payment for the purpose of obtaining or retaining
employment, made by a worker to an employer or his
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64 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
representative or to any intermediary (such as a labour
contractor or recruiter), shall be prohibited.
Article 113. Wage Deduction. - No employer, in his own
behalf or in behalf of any person, shall make any deduction
from the wages of his employees, except: a. In cases where the
worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid
by him as premium on the insurance;
b. For union dues, in cases where the right of the worker or his
union to check-off has been recognized by the employer or
authorized in writing by the individual worker concerned; and
c. In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor and Employment.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 13. Wage Deduction. —
Deductions from the wages of the employees may be made by
the employer in any of the following cases:
(a) When the deductions are authorized by law, including
deductions for the insurance premiums advanced by the
employer in behalf of the employee as well as union dues
where the right to check-off has been recognized by the
employer or authorized in writing by the individual employee
himself.
(b) When the deductions are with the written authorization of
the employees for payment to the third person and the
employer agrees to do so; Provided, That the latter does not
receive any pecuniary benefit, directly or indirectly, from the
transaction.
L ABOR A DVISORY N O . 11, S . 2014
N ON - INTERFERENCE IN THE D ISPOSAL OF W AGES AND
A LLOWABLE D EDUCTIONS
Genesis Transport Service, Inc. v. UMMGT & Taroy (2010)
Niña Jewelry Manufacturing of Medal Arts, Inc. v. Madeline C.
Montecillo & Liza M. Trinidad (2011)
Marietta N. Portillo v. Rudolf Lietz, Inc. (2012)
Requirement to Make Deposits for Loss or Damage
Article 114. Deposits for loss or damage. - No employer
shall require his worker to make deposits from which
deductions shall be made for the reimbursement of loss of or
damage to tools, materials, or equipment supplied by the
employer, except when the employer is engaged in such
trades, occupations or business where the practice of making
deductions or requiring deposits is a recognized one, or is
necessary or desirable as determined by the SOLE in
appropriate rules and regulations
Article 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.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 14. Deduction for loss or damage. — Where the
employer is engaged in a trade, occupation or business where
the practice of making deductions or requiring deposits is
recognized to answer for the reimbursement of loss or
damage to tools, materials, or equipment supplied by the
employer to the employee, the employer may make wage
deductions or require the employees to make deposits from
which deductions shall be made, subject to the following
conditions: (a) That the employee concerned is clearly shown
to be responsible for the loss or damage;
(b) That the employee is given reasonable opportunity to show
cause why deduction should not be made;
(c) That the amount of such deduction is fair and reasonable
and shall not exceed the actual loss or damage; and
(d) That the deduction from the wages of the employee does
not exceed 20 percent of the employee's wages in a week.
L ABOR A DVISORY N O . 11, S . 2014
N ON - INTERFERENCE IN THE D ISPOSAL OF W AGES AND
A LLOWABLE D EDUCTIONS
Dentech Manufacturing Corp. NLRC (1989)
Five J Taxi v. NLRC 556 (1994)
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Withholding of Wages
Article 116. Withholding of wages and kickbacks
prohibited. - It shall be unlawful for any person, directly or
indirectly, to withhold any amount from the wages of a worker
or induce him to give up any part of his wages by force,
stealth, intimidation, threat or by any other means whatsoever
without the worker’s consent.
N EW C IVIL C ODE
Article 1706. Withholding of the wages, EXCEPT for a debt
due, shall not be made by the employer.
SHS Perforated Materials v. Diaz (2010)
Deduction to Ensure Employment
Article 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.
Retaliatory Measures
Article 118. Retaliatory Measures. - It shall be unlawful for
an employer to refuse to pay or reduce the wages and
benefits, discharge or in any manner discriminate against any
employee who has filed any complaint or instituted any
proceeding under this Title or has testified or is about to
testify in such proceedings.
False Reporting
Article 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.
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE X
Section 12. False Reporting. —
It shall be unlawful for any employer or any person to make
any false statement, report or record on matters required to be
kept or maintained pursuant to the provisions of this Rule.
Keeping of Employee’s Records in a Place other than
the Workplace
South Motorists Enterprises v. Tosoc (1990)
Garnishment/Execution
N EW C IVIL C ODE
Article 1708. The laborer's wages shall not be subject to
execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance.
 GAA v. Court of Appeals, 140 SCRA 304
(1985)
W O R K P R E F E R E N CE I N T H E E V E N T O F
B A N K R U P T CY
Article 110. Worker Preference in the event of Bankruptcy.
- In the event of bankruptcy or liquidation of an employer’s
business, his workers shall enjoy first preference as regards
their wages and other monetary claims, any provisions of law
to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the
government and other creditors may be paid. (As amended by
Section 1, Republic Act No. 6715, March 21, 1989)
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
B OOK III, R ULE VIII
Section 10. Payment of wages in case of bankruptcy. —
Unpaid wages earned by the employees before the declaration
of bankruptcy or judicial liquidation of the employer's business
shall be given first preference and shall be paid in full before
other creditors may establish any claim to a share in the assets
of the employer.
N EW C IVIL C ODE
Article 1207. The concurrence of two or more creditors or of
two or more debtors in one and the same obligation does not
imply that each one of the former has a right to demand, or
that each one of the latter is bound to render, entire
compliance with the prestation. There is a solidary liability only
when the obligation expressly so states, or when the law or the
nature of the obligation requires solidarity.
Article 2241. With reference to specific movable property of
the debtor, the following claims or liens shall be preferred:
xx
(6) Claims for laborers' wages, on the goods manufactured or
the work done;
xx
Article 2242. With reference to specific immovable property
and real rights of the debtor, the following claims, mortgages
and liens shall be preferred, and shall constitute an
encumbrance on the immovable or real right:
xx
(3) Claims of laborers, masons, mechanics and other workmen,
as well as of architects, engineers and contractors, engaged in
the construction, reconstruction or repair of buildings, canals
or other works, upon said buildings, canals or other works;
xx
Article 2244. With reference to other property, real and
personal, of the debtor, the following claims or credits shall be
preferred in the order named:
xx
(4) Compensation due the laborers or their dependents under
laws providing for indemnity for damages in cases of labor
accident, or illness resulting from the nature of the
employment;
xx
Article 2246. Those credits which enjoy preference with
respect to specific movables, exclude all others to the extent of
the value of the personal property to which the preference
refers.
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66 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD

Article 2248. Those credits which enjoy preference in relation (c) When the evidence shows that the claim amounts to more
to specific real property or real rights, exclude all others to the than 5k, the Regional Director or Hearing Officer shall advise
extent of the value of the immovable or real right to which the the complainant to amend the complaint if the latter so desires
preference refers. and file the same with the appropriate regional branch of the
Article 2250. The excess, if any, after the payment of the National Labor Relations Commission.
credits which enjoy preference with respect to specific Section 2. The complaint shall be in writing, under oath and
property, real or personal, shall be added to the free property shall substantially comply with the form prescribed by the
which the debtor may have, for the payment of the other Department. Within two (2) working days from receipt of the
credits. complaint, the Regional Director or Hearing Officer shall serve
a copy of the complaint and all pertinent documents to the
 Republic v. Peralta (1987) respondents who may, within five (5) calendar days, file an
 Manila Banking Corp. v. NLRC 621-642 (1997) answer thereto.
Section 3. Any sum recovered on behalf of an employee or
W AG E R E C O V E R Y /J U R I S D I CTI O N househelper pursuant to this Rule shall be held in a special
Art. 217 Art. 128 Art. 129 deposit account by, and shall be paid, on order of the
Nature Adjudication Inspection Adjudication Secretary of Labor and Employment or the Regional Director,
Subject Labor Legislation Labor Labor Standards directly to the employee or househelper concerned or to his
Legislation (money claims) heirs, successors or assigns. Any such sum not paid to the
Jurisdictional 1. w/ claim for NO monetary 1. Complainant is an employee or househelper, because he cannot be located after
Requisites reinstatement limit BUT EER employee or person
diligent and reasonable effort to locate him within a period of
2. Damages must still exists employed in a
arising from EER (determination domestic or three (3) years, shall be held as a special fund of the
3. No claim but can be made as household service or Department of Labor and Employment to be used exclusively
amt >5k EXCEPT to its existence). househelper for the amelioration and benefit of workers: Provided,
if employee’s If it’s an illegal 2. Claim arises from however, that thirty (30) calendar days before any sum is
compensation, dismissal the EER
social security, complaint 3. NO claim for
turned over to the fund, a notice of entitlement shall be posted
medicare and and/or there is a reinstatement conspicuously in at least two (2) public places in the locality
maternity claim for 4. Amt NOT >5k where he is last known to have resided. The Secretary of Labor
benefits reinstatement and Employment or his duly authorized representative may
 LA/NLRC
supervise the payment of unpaid wages and other monetary
Officers Labor Secretary of DOLE Regional
designated Arbiter/CBA Labor, or his/her Director or any duly
claims and benefits, including legal interests, found owing to
interpretation  duly authorized authorized hearing any employee or househelper.
Grievance rep officer Section 4. Any decision or resolution of the Regional Director
Machinery or any of the duly authorized Hearing Officers of the
Appeal NLRC Secretary of NLRC (w/in 5 days)
Department of Labor and Employment may be appealed on
Labor
the same grounds and following the procedure for perfecting
O MNIBUS R ULES I MPLEMENTING THE L ABOR C ODE
an appeal provided in Article 223 of the Labor Code, within five
B OOK III, R ULE XI
(5) calendar days from receipt of a copy of said decision or
Section 1. Recovery of wages, simple money claims and
resolution, to the National Labor Relations Commission which
other benefits. — (a) The Regional Director or any duly shall resolve the appeal within ten (10) calendar days from
authorized Hearing Officer of the Department of Labor and submission of the last pleading required or allowed under its
Employment shall have the power through summary rules.
proceedings and after due notice to hear and decide any
complaint involving the recovery of wages and other monetary  Cirineo Bowling Plaza v. Gerry Sensing, supra
claims and benefits, including legal interest, owing to an  Meteoro, et al. v. Creative Creatures, Inc., 592
employee or person, employed in domestic or household SCRA 481 (2009)
service or househelper arising from employer-employee
relations; Provided, that such complaint does not include a
claim for reinstatement and; Provided, further, that the
Thirteenth Month Pay
aggregate money claims of each employee or househelper See Annex F for complete version of PD 851 and the Revised
does not exceed five thousand pesos (P5,000.00), inclusive of Guidelines on the Implementation of 13th Month Pay Law (1987)
legal interest.
(b) When the claims of two or more claimants, each not H I S TO R Y O F TH E L A W
exceeding 5k arising out of or involving the same cause of
action and against the same respondent, are subject of  Dentech Mfg. Corp. v. NLRC, supra
separate complaints, the complaints may, upon motion or
either party, be consolidated into one for purposes of the
hearing and reception of evidence.

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67 | LABOR LAW 113 MIDTERMS REVIEWER PROF. BATTAD
C O V E R A G E R E V I S E D G U I D E L I N E S O N TH E
I M P L EM E N T A TI O N O F 13 T H M O N TH P A Y L A W , 1 6
N O V . 1987, S E CS . 1, 2, 3, 5, 6, 7, 8
P D 851
Section 1. All employers are hereby required to pay all their
employees receiving a basic salary of not more than P1k a
month, regardless of the nature of their employment, a 13th-
month pay not later than December 24 of every year
Section 2. Employers already paying their employees a 13th-
month pay or its equivalent are not covered by this Decree.
R EVISED G UIDELINES ON THE I MPLEMENTATION
1. Removal of Salary Ceiling.
On August 13, 1986, President Corazon C. Aquino issued
Memorandum Order No. 28 which provides as
"Section 1 of Presidential Decree No. 851 is hereby
modified to the extent that all employers are hereby required
to pay all their rank-and-file employees a 13th month pay not
later than December 24 of every year."
Before its modification by the aforecited Memorandum Order,
P.D. No. 851 excludes from entitlement to the 13th month pay
those employees who were receiving a basic salary of more
than P1,000.00 a month. With the removal of the salary ceiling
of P1,000.00, all rank and file employees are now entitled to a
13th month pay regardless of the amount of basic salary that
they receive in a month if their employers are not otherwise
exempted from the application of P.D. No. 851. Such
employees are entitled to the benefit regardless of their
designation or employment status, and irrespective of the
method by which their wages are paid, provided that they
have worked for at least one (1) month during a calendar year.
2. Exempted Employers.
The following employers are still NOT covered by P.D. No. 851:
a. The Government and any of its political subdivisions,
including government-owned and controlled corporations,
excepts those corporations operating essentially as private
subsidiaries of the Government;
b. Employers already paying their employees a 13th month
pay or more in a calendar year or its equivalent at the time of
this issuance;
c. Employers of household helpers and persons in the personal
service of another in relation to such workers; and
d. Employers of those who are paid on purely commission,
boundary, or task basis, and those who are paid a fixed
amount for performing specific work, irrespective of the time
consumed in the performance thereof, except where the
workers are paid on piece-rate basis in which case the
employer shall grant the required 13th month pay to such
workers.
As used herein, workers paid on piece-rate basis shall refer to
those who are paid a standard amount for every piece or unit
of work produced that is more or less regularly replicated,
without regard to the time spent in producing the same.
The term "its equivalent" as used on paragraph (b) hereof shall
include Christmas bonus, mid-year bonus, cash bonuses and
other payments amounting to not less than 1/12 of the basic
salary but shall not include cash and stock dividends, cost of
living allowances and all other allowances regularly enjoyed by
the employee, as well as non-monetary benefits. Where an
employer pays less than required 1/12th of the employees
basic salary, the employer shall pay the difference
3. Who are Rank-and File Employees.
The Labor Code distinguishes a rank-and-file employee from a
managerial employee. It provides that a managerial employee
is one who is vested with powers of prerogatives to lay down
and execute management policies and/or to hire, transfer,
suspend, lay-off, recall discharge, assign or discipline
employees, or to effectively recommend such managerial
actions. All employees not falling within this definition are
considered rank-and-file employees.
The above distinction shall be used as guide for the purpose of
determining who are rank-and-file employees entitled to the
mandated 13th month pay.
 Archilles Manufacturing Corp. v, NLRC, 244 SCRA
750 (1995)
 Ultra Villa Food Haus v. Geniston, 309 SCRA 17
(1999)
R ATI O N AL E , PD N O . 851, W H E R E A S C L AU S E S
AN D LI M I TATI O N S
P D 851
WHEREAS, it is necessary to further protect the level of real
wages from the ravage of worldwide inflation;
WHEREAS, there has been no increase in the legal minimum
wage rates since 1970;
WHEREAS, the Christmas season is an opportune time for
society to show its concern for the plight of the working
masses so they may properly celebrate Christmas and New
Year.
A M O U N T AN D D A TE O F P A Y M E N T , R E VI S E D
G U I D E L I N E S O N TH E I M PL E M E N T A TI O N O F TH E
13 T H M O N TH P AY L A W
Basic Wage/Commissions, Sec. 4
R EVISED G UIDELINES ON THE I MPLEMENTATION
4. Amount and payment of 13th Month Pay
(a) Minimum of the Amount. — The minimum 13th month
pay required by law shall not be less than one-twelfth of the
total basic salary earned by an employee within a calendar
year. For the year 1987, the computation of the 13th month
pay shall include the cost of living allowances (COLA)
integrated into the basic salary of a covered employee
pursuant to Executive Order 178.
E.O. No. 178 provides, among other things, that the P9.00 of
the daily COLA of P17.00 for non-agricultural workers shall be
integrated into the basic pay of covered employees effective 1
May 1987, and the remaining P8.00 effective 1 October 1987.
For establishments with less than 30 employees and paid-up
capital of P500,000 or less, the integration of COLAs shall be as
follows: P4.50 effective on 1 May 1987; P4.50 on 1 October
1987; and P8.00 effective 1 January 1988. Thus, in the
computation of the 13th month pay for 1987, the COLAs
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integrated into the basic pay shall be included as of the date

of their integration.
Where the total P17.00 daily COLA was integrated effective 1
May 1987 or earlier the inclusion of said COLA as part of the of
the basic pay for the purpose of computing the 13th month
pay shall be reckoned from the date of actual integration.
The "basic salary" of an employee for the purpose of
computing the 13th month pay shall include all remunerations
or earning paid by this employer for services rendered but
does not include allowances and monetary benefits which are
not considered or integrated as part of the regular or basic
salary, such as the cash equivalent of unused vacation and sick
leave credits, overtime, premium, night differential and holiday
pay, and cost-of-living allowances. However, these salary-
related benefits should be included as part of the basic salary
in the computation of the 13th month pay if by individual or
collective agreement, company practice or policy, the same are
treated as part of the basic salary of the employees.
(b) Time of Payment. — The required 13th month pay shall
be paid not later than December 24 of each year. An employer,
however, may give to his employees one half (½) of the
required 13th month pay before the opening of the regular
school year and the other half on before the 24th of December
of every year. The frequency of payment of this monetary
benefit may be the subject of agreement between the
employer and the recognized/collective bargaining agent of
the employees.

Boie Takeda v. Dela Serna, supra

Iran v. NLRC, supra
Intercontinental Broadcasting Corporation v. Panganiban (2007)

Substitute Payment, Sec. 2

 Framanlis Farms, Inc. v. NLRC, 171

SCRA 87 (1989)

14th Month Pay

 Kamaya Port Hotel v. NLRC, 177 SCRA

160 (1989)

Diminution
R EVISED G UIDELINES ON THE I MPLEMENTATION
8. Prohibitions against reduction or elimination of
benefits.
Nothing herein shall be construed to authorize any employer
to eliminate, or diminish in any way, supplements, or other
employee benefits or favorable practice being enjoyed by the
employee at the time of promulgation of this issuance.

 Davao Fruits Corp. v. Associated Labor

Unions, supra

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annex A
Comparison of Art. 34 LC and Sec. 6 of RA 8042
Art. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee,
or holder of authority:
(a) To charge or accept, directly or indirectly, any amount greater than that specified in
the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker
pay any amount greater than that actually received by him as a loan or advance
(b) To furnish or publish any false notice or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
(d) To induce or attempt to induce a worker already employed to quit his employment
in order to offer him to another unless the transfer is designed to liberate the worker
from oppressive terms and conditions of employment;
(e) To influence or to attempt to influence any person or entity not to employ any
worker who has not applied for employment through his agency;21
(f) To engage in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his
duly authorized representatives
(h) To fail to file reports on the status of employment, placement vacancies, remittance
of foreign exchange earnings, separation from jobs, departures and such other matters
or information as may be required by the Secretary of Labor.
21 Prevent collaboration between agencies
SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act
of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring
workers and includes referring, contract services, promising or advertising for
employment abroad, whether for profit or not, when undertaken by non-licensee or
non-holder of authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines: Provided,
That any such nonlicensee or non-holder who, in any manner, offers or promises
for a fee employment abroad to two or more persons shall be deemed so engaged.
It shall likewise include the following acts, whether committed by any person,
whether a non-licensee, non-holder, licensee or holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in
the schedule of allowable fees prescribed by the Secretary of Labor and Employment, or
to make a worker pay or acknowledge any amount greater than that actually received
by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor
Code, or for the purpose of documenting hired workers with the POEA, which
include the act of reprocessing workers through a job order that pertains to
nonexistent work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA;
(d) To include or attempt to induce a worker already employed to quit his employment
in order to offer him another unless the transfer is designed to liberate a worker from
oppressive terms and conditions of employment;
(e) To influence or attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency or who has formed, joined
or supported, or has contacted or is supported by any union or workers'
organization;
(f) To engage in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and
Employment or by his duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures and such
other matters or information as may be required by the Secretary of Labor
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(i) To substitute or alter employment contracts approved and verified by the
Department of Labor from the time of actual signing thereof by the parties up to and
including the periods of expiration of the same without the approval of the Secretary of
Labor;22
(j) To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and
its implementing rules and regulations.
22 Also called “Contract Substitution”
23 Prevent collusion e.g. thru referral fees
(i) To substitute or alter to the prejudice of the worker, employment contracts
approved and verified by the Department of Labor and Employment from the time of
actual signing thereof by the parties up to and including the period of the expiration of
the same without the approval of the Department of Labor
(j) For an officer or agent of a recruitment or placement agency to become an officer or
member of the Board of any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations, or for any other reasons, other than those
authorized under the Labor Code and its implementing rules and regulations;
(l) Failure to actually deploy a contracted worker without valid reason as
determined by the Department of Labor and Employment;
(m) Failure to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the worker's fault. Illegal
recruitment when committed by a syndicate or in large scale shall be considered
an offense involving economic sabotage; and
(n) To allow a non-Filipino citizen to head or manage a licensed
recruitment/manning agency.
In addition to the acts enumerated above, it shall also be unlawful for any person or
entity to commit the following prohibited acts:
(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent
(8%) per annum, which will be used for payment of legal and allowable placement fees
and make the migrant worker issue, either personally or through a guarantor or
accommodation party, postdated checks in relation to the said loan;
(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino
worker is required to avail of a loan only from specifically designated institutions,
entities or persons;23
(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker
after the latter's employment contract has been prematurely terminated through no
fault of his or her own;
(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino
worker is required to undergo health examinations only from specifically designated
medical clinics, institutions, entities or persons, except in the case of a seafarer whose
medical examination cost is shouldered by the principal/shipowner;
(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino
worker is required to undergo training, seminar, instruction or schooling of any kind
only from specifically designated institutions, entities or persons, except fpr
recommendatory trainings mandated by principals/shipowners where the latter
shoulder the cost of such trainings;
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(6) For a suspended recruitment/manning agency to engage in any kind of recruitment

activity including the processing of pending workers' applications;
(7) For a recruitment/manning agency or a foreign principal/employer to pass on the
overseas Filipino worker or deduct from his or her salary the payment of the cost of
insurance fees, premium or other insurance related charges, as provided under the
compulsory worker's insurance coverage.
The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officers having ownership, control,
management or direction of their business who are responsible for the commission of
the offense and the responsible employees/agents thereof shall be liable.
In the filing of cases for illegal recruitment or any of the prohibited acts under this
section, the Secretary of Labor and Employment, the POEA Administrator or their duly
authorized representatives, or any aggrieved person may initiate the corresponding
criminal action with the appropriate office. For this purpose, the affidavits and
testimonies of operatives or personnel from the Department of Labor and Employment,
POEA and other law enforcement agencies who witnessed the acts constituting the
offense shall be sufficient to prosecute the accused.
In the prosecution of offenses punishable under this section, the public prosecutors of
the Department of Justice shall collaborate with the anti-illegal recruitment branch of
the POEA and, in certain cases, allow the POEA lawyers to take the lead in the
prosecution. The POEA lawyers who act as prosecutors in such cases shall be entitled to
receive additional allowances as may be determined by the POEA Administrator.
The filing of an offense punishable under this Act shall be without prejudice to the filing
of cases punishable under other existing laws, rules or regulations."

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annex B
ILO Convention 89 (1948)
Article 1
 1. For the purpose of this Convention, the term industrial undertakings includes particularly:
 (a) mines, quarries, and other works for the extraction of minerals from the earth;
 (b) undertakings in which articles are manufactured, altered, cleaned, repaired,
ornamented, finished, adapted for sale, broken up or demolished, or in which materials
are transformed, including undertakings engaged in ship-building or in the generation,
transformation or transmission of electricity or motive power of any kind;
 (c) undertakings engaged in building and civil engineering work, including
constructional, repair, maintenance, alteration and demolition work.
 2. The competent authority shall define the line of division which separates industry from
agriculture, commerce and other non-industrial occupations.
Article 2
For the purpose of this Convention the term night signifies a period of at least eleven
consecutive hours, including an interval prescribed by the competent authority of at least 
seven consecutive hours falling between ten o'clock in the evening and seven o'clock in the
morning; the competent authority may prescribe different intervals for different areas,
industries, undertakings or branches of industries or undertakings, but shall consult the
employers' and workers' organisations concerned before prescribing an interval beginning 
after eleven o'clock in the evening.
Article 3
Women without distinction of age shall not be employed during the night in any public or
private industrial undertaking, or in any branch thereof, other than an undertaking in which
only members of the same family are employed.
Article 4
Article 3 shall not apply:
 (a) in cases of force majeure, when in any undertaking there occurs an interruption of
work which it was impossible to foresee, and which is not of a recurring character;
 (b) in cases where the work has to do with raw materials or materials in course of
treatment which are subject to rapid deterioration when such night work is necessary 
to preserve the said materials from certain loss.
Article 5
 1. The prohibition of night work for women may be suspended by the government, after
consultation with the employers' and workers' organisations concerned, when in case of
serious emergency the national interest demands it.
 2. Such suspension shall be notified by the government concerned to the Director-General of
the International Labour Office in its annual report on the application of the Convention.
Article 6
In industrial undertakings which are influenced by the seasons and in all cases where
exceptional circumstances demand it, the night period may be reduced to ten hours on sixty
days of the year.
ILO Convention 171 (1990)
Article 1
For the purposes of this Convention:
 (a) the term night work means all work which is performed during a period of not less
than seven consecutive hours, including the interval from midnight to 5 a.m., to be
determined by the competent authority after consulting the most representative
organisations of employers and workers or by collective agreements;
 (b) the term ni means an employed person whose work requires performance of a
substantial number of hours of night work which exceeds a specified limit. This limit
shall be fixed by the competent authority after consulting the most representative
organisations of employers and workers or by collective agreements.
Article 2
 1. This Convention applies to all employed persons except those employed in agriculture,
stock raising, fishing, maritime transport and inland navigation.
2. A Member which ratifies this Convention may, after consulting the representative
organisations of employers and workers concerned, exclude wholly or partly from its scope
limited categories of workers when the application of the Convention to them would raise
special problems of a substantial nature.
3. Each Member which avails itself of the possibility afforded in paragraph 2 of this Article
shall, in its reports on the application of the Convention under article 22 of the Constitution
of the International Labour Organisation, indicate the particular categories of workers thus
excluded and the reasons for their exclusion. It shall also describe all measures taken with a
view to progressively extending the provisions of the Convention to the workers concerned.
Article 3
 1. Specific measures required by the nature of night work, which shall include, as a minimum,
those referred to in Articles 4 to 10, shall be taken for night workers in order to protect their
health, assist them to meet their family and social responsibilities, provide opportunities for
occupational advancement, and compensate them appropriately. Such measures shall also be
taken in the fields of safety and maternity protection for all workers performing night work.
2. The measures referred to in paragraph 1 above may be applied progressively.
Article 4
 1. At their request, workers shall have the right to undergo a health assessment without
charge and to receive advice on how to reduce or avoid health problems associated with their
work:
 (a) before taking up an assignment as a night worker;
 (b) at regular intervals during such an assignment;
 (c) if they experience health problems during such an assignment which are not caused
by factors other than the performance of night work.
 2. With the exception of a finding of unfitness for night work, the findings of such
assessments shall not be transmitted to others without the workers' consent and shall not be
used to their detriment.
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Article 7 Article 5
In countries where the climate renders work by day particularly trying, the night period may Suitable first-aid facilities shall be made available for workers performing night work,
be shorter than that prescribed in the above articles if compensatory rest is accorded during including arrangements whereby such workers, where necessary, can be taken quickly to a
the day. place where appropriate treatment can be provided.
Article 8 Article 6
This Convention does not apply to:  1. Night workers certified, for reasons of health, as unfit for night work shall be transferred,
 (a) women holding responsible positions of a managerial or technical character; and whenever practicable, to a similar job for which they are fit.
 (b) women  2. If transfer to such a job is not practicable, these workers shall be granted the same benefits
as other workers who are unable to work or to secure employment.
 3. A night worker certified as temporarily unfit for night work shall be given the same
protection against dismissal or notice of dismissal as other workers who are prevented from
working for reasons of health.
Article 7
 1. Measures shall be taken to ensure that an alternative to night work is available to women
workers who would otherwise be called upon to perform such work:
 (a) before and after childbirth, for a period of at least sixteen weeks of which at least
eight weeks shall be before the expected date of childbirth;
 (b) for additional periods in respect of which a medical certificate is produced stating
that it is necessary for the health of the mother or child:
 (i) during pregnancy;
 (ii) during a specified time beyond the period after childbirth fixed pursuant to
subparagraph (a) above, the length of which shall be determined by the
competent authority after consulting the most representative organisations of
employers and workers.
 2. The measures referred to in paragraph 1 of this Article may include transfer to day work
where this is possible, the provision of social security benefits or an extension of maternity
leave.
 3. During the periods referred to in paragraph 1 of this Article:
 (a) a woman worker shall not be dismissed or given notice of dismissal, except for
justifiable reasons not connected with pregnancy or childbirth;
 (b) the income of the woman worker shall be maintained at a level sufficient for the
upkeep of herself and her child in accordance with a suitable standard of living. This
income maintenance may be ensured by any of the measures listed in paragraph 2 of
this Article, by other appropriate measures or by a combination of these measures;
 (c) a woman worker shall not lose the benefits regarding status, seniority and access to
promotion which may attach to her regular night work position.
 4. The provisions of this Article shall not have the effect of reducing the protection and
benefits connected with maternity leave.
Article 8
Compensation for night workers in the form of working time, pay or similar benefits shall
recognise the nature of night work.
Article 9
Appropriate social services shall be provided for night workers and, where necessary, for
workers performing night work.
Article 10

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 1. Before introducing work schedules requiring the services of night workers, the employer
shall consult the workers' representatives concerned on the details of such schedules and the
forms of organisation of night work that are best adapted to the establishment and its
personnel as well as on the occupational health measures and social services which are
required. In establishments employing night workers this consultation shall take place
regularly.
 2. For the purposes of this Article the workers' representatives means persons who are
recognised as such by national law or practice, in accordance with the Workers'
Representatives Convention, 1971.
Article 11
 1. The provisions of this Convention may be implemented by laws or regulations, collective
agreements, arbitration awards or court decisions, a combination of these means or in any
other manner appropriate to national conditions and practice. In so far as they have not been
given effect by other means, they shall be implemented by laws or regulations.
 2. Where the provisions of this Convention are implemented by laws or regulations, there
shall be prior consultation with the most representative organisations of employers and
workers.

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annex C
RULE IV Holidays with Pay
SECTION 1. Coverage. — This rule shall apply to all employees except: (a) Those of the
government and any of the political subdivision, including government-owned and
controlled corporation; (b) Those of retail and service establishments regularly
employing less than ten (10) workers; (c) Domestic helpers and persons in the personal
service of another; (d) Managerial employees as defined in Book Three of the Code; (e)
Field personnel and other employees whose time and performance is unsupervised by
the employer including those who are engaged on task or contract basis, purely
commission basis, or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof.
SECTION 2. Status of employees paid by the month. — Employees who are uniformly
paid by the month, irrespective of the number of working days therein, with a salary of
not less than the statutory or established minimum wage shall be paid for all days in the
month whether worked or not. For this purpose, the monthly minimum wage shall not
be less than the statutory minimum wage multiplied by 365 days divided by twelve.
SECTION 3. Holiday Pay. — Every employer shall pay his employees their regular daily
wage for any worked regular holidays. As used in the rule, the term 'regular holiday'
shall exclusively refer to: New Year's Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the last Sunday of August, the thirtieth of
November, the twenty-fifth and thirtieth of December. Nationwide special days shall
include the first of November and the last day of December. As used in this Rule legal or
regular holiday and special holiday shall now be referred to as 'regular holiday' and
'special day', respectively.
SECTION 4. Compensation for holiday work. — Any employee who is permitted or
suffered to work on any regular holiday, not exceeding eight (8) hours, shall be paid at
least two hundred percent (200%) of his regular daily wage. If the holiday work falls on
the scheduled rest day of the employee, he shall be entitled to an additional premium
pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate.
SECTION 5. Overtime pay for holiday work. — For work performed in excess of eight
hours on a regular holiday, an employee shall be paid an additional compensation for
the overtime work equivalent to his rate for the first eight hours on such holiday work
plus at least 30% thereof. Where the regular holiday work exceeding eight hours falls on
the scheduled rest day of the employee, he shall be paid an additional compensation for
the overtime work equivalent to his regular holiday-rest day for the first 8 hours plus
30% thereof. The regular holiday rest day rate of an employee shall consist of 200% of
his regular daily wage rate plus 30% thereof.
SECTION 6. Absences. — (a) All covered employees shall be entitled to the benefit
provided herein when they are on leave of absence with pay. Employees who are on
leave of absence without pay on the day immediately preceding a regular holiday may
not be paid the required holiday pay if he has not worked on such regular holiday. (b)
Employees shall grant the same percentage of the holiday pay as the benefit granted by
competent authority in the form of employee's compensation or social security
payment, whichever is higher, if they are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday is a non-working day in the
establishment or the scheduled rest day of the employee, he shall not be deemed to be
on leave of absence on that day, in which case he shall be entitled to the holiday pay if
he worked on the day immediately preceding the nonworking day or rest day.
SECTION 7. Temporary or periodic shutdown and temporary cessation of work. — (a) In
cases of temporary or periodic shutdown and temporary cessation of work of an
establishment, as when a yearly inventory or when the repair or cleaning of machineries
and equipment is undertaken, the regular holidays falling within the period shall be
compensated in accordance with this Rule. (b) The regular holiday during the cessation
of operation of an enterprise due to business reverses as authorized by the Secretary of
Labor and Employment may not be paid by the employer.
SECTION 8. Holiday pay of certain employees. — (a) Private school teachers, including
faculty members of colleges and universities, may not be paid for the regular holidays
during semestral vacations. They shall, however, be paid for the regular holidays during
Christmas vacation; (b) Where a covered employee, is paid by results or output, such as
payment on piece work, his holiday pay shall not be less than his average daily earnings
for the last seven (7) actual working days preceding the regular holiday; Provided,
However, that in no case shall the holiday pay be less than the applicable statutory
minimum wage rate. (c) Seasonal workers may not be paid the required holiday pay
during off-season when they are not at work. (d) Workers who have no regular working
days shall be entitled to the benefits provided in this Rule.
SECTION 9. Regular holiday falling on rest days or Sundays. — (a) A regular holiday
falling on the employee's rest day shall be compensated accordingly. (b) Where a
regular holiday falls on a Sunday, the following day shall be considered a special holiday
for purposes of the Labor Code, unless said day is also a regular holiday.
SECTION 10. Successive regular holidays. — Where there are two (2) successive regular
holidays, like Holy Thursday and Good Friday, an employee may not be paid for both
holidays if he absents himself from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which case he is entitled to his holiday
pay on the second holiday.
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annex D
C159 - Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159)
C ONVENTION CONCERNING V OCATIONAL R EHABILITATION AND E MPLOYMENT (D ISABLED P ERSONS ) (E NTRY INTO FORCE : 20 J UN 1985)
PART I. DEFINITION AND SCOPE
Article 1
1. For the purposes of this Convention, the term disabled person means an individual
whose prospects of securing, retaining and advancing in suitable employment are
substantially reduced as a result of a duly recognised physical or mental impairment.
2. For the purposes of this Convention, each Member shall consider the purpose of
vocational rehabilitation as being to enable a disabled person to secure, retain and
advance in suitable employment and thereby to further such person's integration or
reintegration into society.
3. The provisions of this Convention shall be applied by each Member through
measures which are appropriate to national conditions and consistent with national
practice.
4. The provisions of this Convention shall apply to all categories of disabled persons.
PART II. PRINCIPLES OF VOCATIONAL REHABILITATION AND EMPLOYMENT POLICIES
FOR DISABLED PERSONS
Article 2
Each Member shall, in accordance with national conditions, practice and possibilities,
formulate, implement and periodically review a national policy on vocational
rehabilitation and employment of disabled persons.
Article 3
The said policy shall aim at ensuring that appropriate vocational rehabilitation measures
are made available to all categories of disabled persons, and at promoting employment
opportunities for disabled persons in the open labour market.
Article 4
The said policy shall be based on the principle of equal opportunity between disabled
workers and workers generally. Equality of opportunity and treatment for disabled men
and women workers shall be respected. Special positive measures aimed at effective
equality of opportunity and treatment between disabled workers and other workers
shall not be regarded as discriminating against other workers.
Article 5
The representative organisations of employers and workers shall be consulted on the
implementation of the said policy, including the measures to be taken to promote co-
operation and co-ordination between the public and private bodies engaged in
vocational rehabilitation activities. The representative organisations of and for disabled
persons shall also be consulted.
ART III. ACTION AT THE NATIONAL LEVEL FOR THE DEVELOPMENT OF VOCATIONAL
REHABILITATION AND EMPLOYMENT SERVICES FOR DISABLED PERSONS
Article 6
Each Member shall, by laws or regulations or by any other method consistent with
national conditions and practice, take such steps as may be necessary to give effect to
Articles 2, 3, 4 and 5 of this Convention.
Article 7
The competent authorities shall take measures with a view to providing and evaluating
vocational guidance, vocational training, placement, employment and other related
services to enable disabled persons to secure, retain and advance in employment;
existing services for workers generally shall, wherever possible and appropriate, be used
with necessary adaptations.
Article 8
Measures shall be taken to promote the establishment and development of vocational
rehabilitation and employment services for disabled persons in rural areas and remote
communities.
Article 9
Each Member shall aim at ensuring the training and availability of rehabilitation
counsellors and other suitably qualified staff responsible for the vocational guidance,
vocational training, placement and employment of disabled persons.
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annex E

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Article 1
In this Convention, the term wages means remuneration or earnings, however designated or
calculated, capable of being expressed in terms of money and fixed by mutual agreement or by
national laws or regulations, which are payable in virtue of a written or unwritten contract of
employment by an employer to an employed person for work done or to be done or for services
rendered or to be rendered.
Article 2
 1. This Convention applies to all persons to whom wages are paid or payable.
 2. The competent authority may, after consultation with the organisations of employers and
employed persons directly concerned, if such exist, exclude from the application of all or any of the
provisions of the Convention categories of persons whose circumstances and conditions of
employment are such that the application to them of all or any of the said provisions would be
inappropriate and who are not employed in manual labour or are employed in domestic service or
work similar thereto.
 3. Each Member shall indicate in its first annual report upon the application of this Convention
submitted under Article 22 of the Constitution of the International Labour Organisation any
categories of persons which it proposes to exclude from the application of all or any of the
provisions of the Convention in accordance with the provisions of the preceding paragraph; no
Member shall, after the date of its first annual report, make exclusions except in respect of
categories of persons so indicated.
 4. Each Member having indicated in its first annual report categories of persons which it proposes
to exclude from the application of all or any of the provisions of the Convention shall indicate in
subsequent annual reports any categories of persons in respect of which it renounces the right to
have recourse to the provisions of paragraph 2 of this Article and any progress which may have
been made with a view to the application of the Convention to such categories of persons.
Article 3
 1. Wages payable in money shall be paid only in legal tender, and payment in the form of
promissory notes, vouchers or coupons, or in any other form alleged to represent legal tender,
shall be prohibited.
 2. The competent authority may permit or prescribe the payment of wages by bank cheque or
postal cheque or money order in cases in which payment in this manner is customary or is
necessary because of special circumstances, or where a collective agreement or arbitration award
so provides, or, where not so provided, with the consent of the worker concerned.
Article 4
 1. National laws or regulations, collective agreements or arbitration awards may authorise the
partial payment of wages in the form of allowances in kind in industries or occupations in which
payment in the form of such allowances is customary or desirable because of the nature of the
industry or occupation concerned; the payment of wages in the form of liquor of high alcoholic
content or of noxious drugs shall not be permitted in any circumstances.
 2. In cases in which partial payment of wages in the form of allowances in kind is authorised,
appropriate measures shall be taken to ensure that--
 (a) such allowances are appropriate for the personal use and benefit of the worker and his
family; and
 (b) the value attributed to such allowances is fair and reasonable.
Article 5

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Wages shall be paid directly to the worker concerned except as may be otherwise provided by
national laws or regulations, collective agreement or arbitration award or where the worker
concerned has agreed to the contrary.
Article 6
Employers shall be prohibited from limiting in any manner the freedom of the worker to dispose of
his wages.
Article 7
 1. Where works stores for the sale of commodities to the workers are established or services are
operated in connection with an undertaking, the workers concerned shall be free from any
coercion to make use of such stores or services.
 2. Where access to other stores or services is not possible, the competent authority shall take
appropriate measures with the object of ensuring that goods are sold and services provided at fair
and reasonable prices, or that stores established and services operated by the employer are not
operated for the purpose of securing a profit but for the benefit of the workers concerned.
Article 8
 1. Deductions from wages shall be permitted only under conditions and to the extent prescribed
by national laws or regulations or fixed by collective agreement or arbitration award.
 2. Workers shall be informed, in the manner deemed most appropriate by the competent authority,
of the conditions under which and the extent to which such deductions may be made.
Article 9
Any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of
obtaining or retaining employment, made by a worker to an employer or his representative or to
any intermediary (such as a labour contractor or recruiter), shall be prohibited.
Article 10
 1. Wages may be attached or assigned only in a manner and within limits prescribed by national
laws or regulations.
 2. Wages shall be protected against attachment or assignment to the extent deemed necessary for
the maintenance of the worker and his family.
Article 11
 1. In the event of the bankruptcy or judicial liquidation of an undertaking, the workers employed
therein shall be treated as privileged creditors either as regards wages due to them for service
rendered during such a period prior to the bankruptcy or judicial liquidation as may be prescribed
by national laws or regulations, or as regards wages up to a prescribed amount as may be
determined by national laws or regulations.
 2. Wages constituting a privileged debt shall be paid in full before ordinary creditors may establish
any claim to a share of the assets.
 3. The relative priority of wages constituting a privileged debt and other privileged debts shall be
determined by national laws or regulations.
Article 12
 1. Wages shall be paid regularly. Except where other appropriate arrangements exist which ensure
the payment of wages at regular intervals, the intervals for the payment of wages shall be
prescribed by national laws or regulations or fixed by collective agreement or arbitration award.
 2. Upon the termination of a contract of employment, a final settlement of all wages due shall be
effected in accordance with national laws or regulations, collective agreement or arbitration award
or, in the absence of any applicable law, regulation, agreement or award, within a reasonable
period of time having regard to the terms of the contract.

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Article 13
 1. The payment of wages where made in cash shall be made on working days only and at or near
the workplace, except as may be otherwise provided by national laws or regulations, collective
agreement or arbitration award, or where other arrangements known to the workers concerned are
considered more appropriate.
 2. Payment of wages in taverns or other similar establishments and, where necessary to prevent
abuse, in shops or stores for the retail sale of merchandise and in places of amusement shall be
prohibited except in the case of persons employed therein.
Article 14
Where necessary, effective measures shall be taken to ensure that workers are informed, in an
appropriate and easily understandable manner--
(a) before they enter employment and when any changes take place, of the conditions in respect of
wages under which they are employed; and
(b) at the time of each payment of wages, of the particulars of their wages for the pay period
concerned, in so far as such particulars may be subject to change.

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