Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits

Basic Principles

Article 211. Declaration of policy. A. It is the policy of the

State:
(a) To promote and emphasize the primacy of free
collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion of
social justice and development;
(c) To foster the free and voluntary organization of a
strong and united labor movement;
(d) To promote the enlightenment of workers concerning
their rights and obligations as union members and as
employees;

Basic Principles

Article 211. Declaration of policy.

(e) To provide an adequate administrative
machinery for the expeditious settlement of labor
or industrial disputes;
(f) To ensure a stable but dynamic and just
industrial peace; and
(g) To ensure the participation of workers in
decision and policy-making processes affecting
their rights, duties and welfare.

Basic Principles

Article 211. Declaration of policy.

B. To encourage a truly democratic method of
regulating the relations between the employers
and employees by means of agreements freely
entered into through collective bargaining, no
court or administrative agency or official shall
have the power to set or fix wages, rates of pay,
hours of work or other terms and conditions of
employment, except as otherwise provided under
this Code.

Basic Principles

Article 275. Tripartism and tripartite conferences.

(a) Tripartism in labor relations is hereby declared
a State policy. Towards this end, workers and
employers shall, as far as practicable, be
represented in decision and policy-making bodies
of the government.

Constitutional Provisions

Art. II. State Policies

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 18. The State affirms labor as a primary
social economic force. It shall protect the rights of
workers and promote their welfare.

Constitutional Provisions

Art. III. Bill of Rights

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 16. All persons shall have the right to a
speedy disposition of their cases before all
judicial, quasi-judicial, or administrative bodies .

Constitutional Provisions

Art. XIII. Social Justice and Human Rights

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.
It shall guarantee the rights of all workers to selforganization, 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.

Constitutional Provisions

Art. XIII. Social Justice and Human Rights

Section 3.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right of
labor to its just share in the fruits of production and
the right of enterprises to reasonable returns to
investments, and to expansion and growth.

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits

Employer-Employee
Relationship

By operation of law
Not by parties agreement
Not dependent on compensation
Not determined by Art. 280 standards

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.
(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 this Code so explicitly
states. It shall include any individual whose work has
ceased as a result of or in connection with any current
labor dispute or because of any unfair labor practice if
he has not obtained any other substantially equivalent
and regular employment.

Art. 280 is NOT the basis of

ER-EE; BUT a test for
REGULAR EMPLOYMENT

Article 280. Regular and casual employment.

The provisions of written agreement to the
contrary notwithstanding and regardless of the
oral agreements of the parties, an employment
shall be deemed to be regular where the
employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer X X X.

Control

Guidelines indicative of labor law control,

should not merely relate to the mutually
desirable result intended by the contractual
relationship; they must have the nature of
dictating the means or methods to be
employed in attaining the result, or of fixing
the methodology and of binding or restricting
the party hired to the use of these means.

Tongko v. Manufacturers Life Insurance (GR 167622,

June 29, 2010 & January 25, 2011)

Control

The main issue of whether an agency or an

employment relationship exists depends on the
incidents of the relationship. The Labor Code
concept of control has to be compared and
distinguished with the control that must
necessarily exist in a principal-agent relationship.
The principal cannot but also have his or her say in
directing the course of the principal-agent
relationship, especially in cases where the
company-representative relationship in the
insurance industry is an agency.

Tongko v. Manufacturers Life Insurance (GR 167622,

June 29, 2010 & January 25, 2011)

Officer vs. Employee

A position must be expressly mentioned in the ByLaws in order to be considered as a corporate office.
Thus, the creation of an office pursuant to or under a
By-Law enabling provision is not enough to make a
position a corporate office.
The criteria for distinguishing between corporate
officers who may be ousted from office at will, on one
hand, and ordinary corporate employees who may
only be terminated for just cause, on the other hand,
do not depend on the nature of the services
performed, but on the manner of creation of the office.

Matling Industrial v. Coros, October 13, 2010

Talents

Production assistants,
drivers/cameramen, security guards,
are NOT talents
They are employees
Television and Production Exponents v. Servaa, January 28,
2008
ABS-CBN Broadcasting Corp. v. Nazareno, Sept. 26, 2006
Fulache v. ABS-CBN, January 21, 2010

Dual Juridical
Relationship

Under the boundary-hulog scheme

incorporated in the Kasunduan, a dual
juridical relationship was created between
petitioner and respondent: that of employeremployee and vendor-vendee. The
Kasunduan did not extinguish the employeremployee relationship of the parties extant
before the execution of said deed.

Villamaria v. CA, April 19, 2006

Apprentice

Article 58. Definition of terms. As used in this Title:

(a) "Apprenticeship" means practical training on the job
supplemented by related theoretical instruction.
(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.
(c) An "apprenticeable occupation" means any trade, form of
employment or occupation which requires more than three months
of practical training on the job supplemented by related theoretical
instruction.
(d) "Apprenticeship agreement" is an employment contract wherein
the employer binds himself to train the apprentice and the
apprentice in turn accepts the terms of training.

Apprentice

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 a requisite for graduation or
board examination.

Learners

Article 73. Learners defined. Learners are

persons hired as trainees in semi-skilled and
other industrial occupations which are nonapprenticeable and which may be learned
through practical training on the job in a
relatively short period of time which shall not
exceed three months.

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits

Contracting

Section 3, D.O. 18-A, 2011

Contracting or Subcontracting refers to an

arrangement whereby
a principal
agrees to put out or farm out
with a contractor
the performance or completion of a specific job,
work or service
within a definite or predetermined period,
regardless of whether such job, work or service is
to be performed or completed within or outside
the premises of the principal.

Trilateral Relationship

THREE (3) parties:

PRINCIPAL
CONTRACTOR
EMPLOYEES

TWO (2) contracts

Contract for a specific job, work or
service between the PRINCIPAL and the
CONTRACTOR
Contract of employment between the
CONTRACTOR and the EMPLOYEES

Regulating Contracting

Article 106. Contractor or sub-contractor. X X X X X

X XXX
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 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.

Labor-Only Contracting

Article 106. Contractor or sub-contractor. X X X X X X

XXX
There is "labor-only" contracting where the person
supplying workers to an employer does not have
substantial capital or investment in the form of tools,
equipment, machineries, work premises, among
others, and the workers recruited and placed by such
person are performing activities which are directly
related to the principal business of such employer. In
such cases, the person or intermediary shall be
considered merely as an agent of the employer who
shall be responsible to the workers in the same
manner and extent as if the latter were directly
employed by him.

Labor-Only Contracting

Section 6. D.O. No. 18-A, 2011

Labor-only contracting is hereby declared prohibited.
For this purpose, labor only contracting shall refer to
an arrangement where:
(a) the contractor does not have substantial capital or
investments in the form of tools, equipment,
machineries, work premises, among others, and the
employees recruited and placed are performing
activities which are usually necessary or desirable to
the operation of the company, or directly related to
the main business of the principal within a definite or
predetermined period, regardless of whether such
job, work or service is to be performed or completed
within or outside the premises of the principal; or

Labor-Only Contracting

Section 6. D.O. No. 18-A, 2011

Labor-only contracting is hereby declared
prohibited. For this purpose, labor only
contracting shall refer to an arrangement where:
(b) The contractor does not exercise the right to
control over the performance of the work of the
employee.

Labor-Only Contracting

Section 27. D.O. No. 18-A, 2011

A finding by competent authority of labor-only
contracting shall render the principal jointly and
severally liable with the contractor to the latters
employees, in the same manner and extent that the
principal is liable to the 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 Section 7, or violation of either Section 8
or 9 hereof, shall render the principal the direct
employer of the employees of the contractor or
subcontrator, pursuant to Article 109 of the Labor
Code, as amended.

Job Contracting

A person is considered engaged in legitimate job contracting or

subcontracting if the following conditions concur:
(a) The contractor carries on a distinct and independent
business and undertakes the contract work on his account
under his own responsibility according to his own manner and
method, free from the control and direction of his employer or
principal in all matters connected with the performance of his
work except as to the results thereof;
(b) The contractor has substantial capital or investment; and
(c) The agreement between the principal and the contractor or
subcontractor assures the contractual employees' entitlement to
all labor and occupational safety and health standards, free
exercise of the right to self-organization, security of tenure, and
social welfare benefits.
Babas v. Lorenzo Shipping, December 15, 2010 (citing Vinoya)

Job Contracting

A contractors Certificate of Registration is not

sufficient proof that it is an independent contractor. A
Certificate of Registration issued by the Department
of Labor and Employment is not conclusive evidence
of such status.
The fact of registration simply prevents the legal
presumption of being a mere labor-only contractor
from arising.
Babas v. Lorenzo Shipping, December 15, 2010 (citing
San Miguel Corporation v. Vicente B. Semillano,
Nelson Mondejas, Jovito Remada, Alilgilan MultiPurpose Coop (AMPCO), and Merlyn N. Policarpio)

Possession by contractor of
substantial capital NOT ENOUGH

Mere compliance with substantial capital requirement will not

suffice for a contractor to be considered a legitimate
contractor. If the workers supplied by the contractor work
alongside the principals regular employees who are
performing identical work, such is an indicium of labor-only
contracting.
It is the totality of the facts and the surrounding circumstances
of the case which is determinative of the parties relationship.
Several factors may be considered, such as, whether the
contractor was carrying on an independent business; the
nature and extent of the work; the skill required; the term and
duration of the relationship; the right to assign the
performance of specified pieces of work; the control and
supervision of the workers the power of the employer with
respect to the hiring, firing and payment of the workers of the
contractor; the control of the premises; the duty to supply
premises, tools, appliances, materials and labor; and the
mode, manner and terms of payment.
Coca-Cola Bottlers v. Agito, February 13, 2009

Liability for Wages

Article 106. Contractor or sub-contractor. 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 sub-contractor
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.

Solidary Liability

Article 109. Solidary liability. The provisions of

existing laws to the contrary notwithstanding,
every employer or indirect 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.

BPOs not covered

by D.O. 18-A, 2011

Section 3, Department Circular No. 1-2012

(V)endor-vendee relationship for entire business
processes covered by the applicable provisions of the
Civil Code on Contracts is excluded.
DO 18-A Series of 2011 contemplates generic or
focused singular activity in one contract between the
principal and the contractor (for example, janitorial,
security, merchandising, specific production work)
and does not contemplate information technologyenabled services involving an entire business
processes (for example, business process
outsourcing, hardware and/or software support,
medical transcription, animation services, back office
operations/support). X x x
xxx xxx

Construction Industry not

covered by registration
mandated by D.O. 18-A

Section 4, Department Circular No. 1-2012

Thus, the DOLE, through its regional offices,
shall not require contractors licensed by PCAB in
the Construction Industry to register under D.O.
18-A, Series of 2011. Moreover, findings of
violation/s on labor standards and occupational
health and safety standards shall be coordinated
with PCAB for its appropriate action, including
the possible cancellation/suspension of the
contractors license.

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits
Wages

Wages

Article 97. Definitions.

XXX
XXX XXX
(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 Secretary of Labor and Employment, 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.

Facilities vs. Supplements

Facility for the benefit of the employee or

his/her family

Supplement for the benefit of the

employer

NOTE: THE NATURE OF THE ARTICLES OR

SERVICES IS NOT THE DETERMINING FACTOR.
A SERVICE MAY BE A FACILITY OR A
SUPPLEMENT DEPENDING ON WHO IS
PRIMARILY BENEFITTED.

Wage Fixing R.A. 6727

National Wages and Productivity Commission (NWPC):

national consultative and advisory body to the President
and Congress on matters relating to wages, incomes, and
productivity
formulates policies and guidelines on wages, incomes
and productivity improvement
DOES NOT set wage rates; REVIEWS wage rates set by
Regional Wage Boards
Composition:
Secretary of Labor
Director General of NEDA
2 members representing workers
2 members representing employers
Executive Director

Wage Fixing R.A. 6727

Regional Tripartite Wages and Productivity Boards

(RTWPB):
determines and fixes MINIMUM WAGE RATES
applicable in their regions, provinces or
industries
issues WAGE ORDERS
Composition:
Regional Director of DOLE
Regional Director of NEDA
Regional Director of DTI
2 members representing workers
2 members representing employers

Minimum Wage;
Not Across-the-board Increase

Pursuant to its authority, the Regional Wage Boards may

issue wage orders which set the daily minimum wage rates.
It has no authority to grant an across-the-board wage
increase.
In doing so, the Regional Wage Board exceeded its
authority by extending the coverage of the Wage Order to
wage earners receiving more than the prevailing minimum
wage rate, without a denominated salary ceiling. The
Wage Order granted additional benefits not contemplated
by R.A. No. 6727.
Metropolitan Bank and Trust Company v. NWPC, February
6, 2007

Two-Tiered Wage System

NWPC Guidelines No. 2, Series of 2012, Guidelines on the

Implementation of the Two-Tiered Wage System

Section 1. The Two-Tiered Wage System is an approach to

minimum wage setting which aims to improve the coverage of
minimum wages; promote worker and enterprise productivity
and; address the negative effects of minimum wage policies.

Section 2. Definition of Terms

e. Two-Tiered Wage System refers to a pay system consisting
of:
1. minimum wage; and
2. incentive pay based on productivity improvement and
gainsharing

Form of Payment

Article 102. Forms of payment. No employer shall

pay the wages of an employee by means of
promisorry 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 is
stipulated in a collective bargaining agreement.

Form of Payment

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 payments
impossible or under other special circumstances to be
determined by the Secretary of Labor and Employment in
appropriate regulations, in which cases 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 claimant, 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. X X X
XXX XXX

Time and Place of Payment

Article 103. Time of payment. Wages shall be paid at least

once every two weeks or twice a month at intervals not
exceeding sixteen 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.
XXX
XXX XXX
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.

Prohibitions

Article 112. Non-interference in disposal of wages.

Article 113. Wage deduction.

Article 114. Deposits for loss or damage.

Article 116. Withholding of wages and kickbacks

Article 117. Deduction to ensure employment.

Article 118. Retaliatory measures.

Article 119. False reporting.

Withholding of Wages

Management prerogative refers to the right of

an employer to regulate all aspects of
employment, such as the freedom to prescribe
work assignments, working methods, processes
to be followed, regulation regarding transfer of
employees, supervision of their work, lay-off and
discipline, and dismissal and recall of work.
Although management prerogative refers to the
right to regulate all aspects of employment, it
cannot be understood to include the right to
temporarily withhold salary/wages without the
consent of the employee. To sanction such an
interpretation would be contrary to Article 116 of
the Labor Code.

SHS Perforated Materials v. Diaz, October 13, 2010

Payment by Results

Article 101. Payment by results. The Secretary

of Labor and Employment shall regulate the
payment of wages by results, including pakyao,
piecework and other non-time work, in order to
ensure the payment of fair and reasonable
wage rates, preferably through time and motion
studies or in consultation with representatives
of workers' and employers' organizations.

Worker Preference

Article 110. Worker preference in case of

bankruptcy. In the event of bankruptcy or
liquidation of an employer's business, his
workers shall enjoy first preference as regards
their unpaid wages and other monetary claims,
any provision of law to the contrary
notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before the
claims of the Government and other creditors
may be paid.

Wage Distortion

Article 124. x x x
Where the application of any prescribed wage
increase by virtue of a 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 collective
bargaining agreement and, if it remains
unresolved, through voluntary arbitration.

Wage Distortion

Article 124. x x x
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.

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits
Wages
Hours of Work

Hours of Work

Article 83. Normal hours of work. The normal hours of work of

any employee shall not exceed eight in a day.

Health personnel in cities or municipalities with a population

of at least one million or in hospitals or clinics with a bed
capacity of at least one hundred shall hold regular office hours
for eight hours a day, for five days a week, or a total of forty
hours a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for
six days, forty-eight hours, in which case they shall be entitled
to an additional compensation of at least 30 percent of their
regular wage for work on the sixth day.
For purposes of this Article, "health personnel" shall include:
resident physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.

Hours of Work

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 Congress 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,
installation 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;
(e) Where the completion or continuation of the work started
before the 8th hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer.

Hours Worked

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, and
(b) all time during which an employee is
suffered or permitted to work.
Rest periods of short duration during
working hours shall be counted as
hours worked.

Meal Period

Article 85. Meal periods. Subject to such regulations as

the Secretary of Labor and Employment may prescribe,
it shall be the duty of every employer to give his
employees not less than sixty minutes time-off for their
regular meals.

GENERAL RULE: not less than 1 hour time-off for regular meals
non-compensable

EXCEPTIONS: meal period of not less than 20 mins.:

Where the work is non-manual work in nature or does not involve
strenuous physical exertion
Where the establishment regularly operates not less than 16 hours
a day
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
Where the work is necessary to prevent serious loss of perishable
good
Rest periods or coffee breaks

Overtime Pay

Article 87. Overtime work. Work may be performed beyond eight

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 thereof.

Work performed beyond eight hours on a holiday or rest day shall be

paid an additional compensation equivalent to the rate for the first
eight hours on a holiday or rest day plus at least 30 percent thereof.

THUS:
25% OT PREMIUM for ORDINARY DAYS
30% OT PREMIUM for EXTRA-ORDINARY DAYS
(Holidays/Rest Days)

Overtime 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.

Offsetting Prohibited

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.

Night Shift Differential

Article 86. Night shift differential. Every employee

shall be paid a night shift differential of not less than
ten percent of his regular wage for each hour of work
performed between ten o'clock in the evening and six
o'clock in the morning.

NIGHT SHIFT DIFFERENTIAL: 10%

TIME: 10 PM TO 6 AM

NOTE: Night Shift Differential is on top of OVERTIME

PREMIUM

Hours of Work - Coverage

Article 82. Coverage. The provision 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 and Employment in appropriate
regulations.

Hours of Work - Coverage

Article 82. Coverage. X x x

As used herein, "managerial employees" refers 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" refers 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.

Hours of Work - Coverage

FIELD PERSONNEL employees whose

performance of their job is not supervised by the
employer or its representative, as the work is
performed outside the principal office of the
employer
- time and performance is unsupervised by the
employer

REPUBLIC ACT NO. 10151

AN ACT ALLOWING THE EMPLOYMENT OF NIGHT

WORKERS, THEREBY REPEALING ARTICLES 130 AND 131
OF THE LABOR CODE

Article 130. Night work prohibition. No woman, regardless of age, shall be

employed or permitted or suffered to work, with or without compensation:
(a) In any industrial undertaking or branch thereof between ten o'clock at
night and six o'clock in the morning of the following day;
(b) In any commercial or non-industrial undertaking or branch thereof, other
than agricultural, between midnight and six o'clock in the morning of the
following day; or
(c) In any agricultural undertaking at night time unless she is given a period
of rest of not less than nine consecutive hours.
Article 131. Exceptions. The prohibition prescribed by the preceding Article
shall not apply in any of the following cases: X X X X X X X X X

REPUBLIC ACT NO. 10151

Art. 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 oclock
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.

Women Night Workers

Art. 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.

Women Night Workers

Art. 158. Women Night Workers. X X X

XXX
Pregnant women and nursing mothers may be 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 case 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.

Right to HEALTH ASSESSMENT

Art. 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.

Right to ADEQUATE
FACILITIES

Art. 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.

TRANSFER

Art. 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.

CONSULTATION

Art. 161. Night Work Schedules. Before introducing

work schedules requiring the services of night
workers, the employer shall consult the workers
representatives/labor 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.

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits
Wages
Hours of Work
Rest Period

Rest Day

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
consecutive hours after every six consecutive
normal work days.

Schedule of Rest Day

Article 91. Right to weekly rest day. (b) The employer shall
determine and schedule the weekly rest day of his
employees, subject to collective 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.

RULES: 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.

Work on Rest Day

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
accidents, 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 case 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.

Work on Rest Day - Payment

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 percent 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 30 percent of his regular wage for
work performed on Sundays and holidays.

XXX

XXX

XXX

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits
Wages
Hours of Work
Rest Period
Holidays

Holiday Pay

Article 94. Right to holiday pay. (a) Every

worker shall be paid his regular daily wage
during regular holidays, except in retail and
service establishment regularly employing less
than ten workers;
(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; and
XXX
X X XX X X

Work on Special Day

Article 93. Compensation for rest day, Sunday or

holiday work.
XXX
XXX
XXX
(c) Work performed on any special holiday shall
be paid an additional compensation of at least 30
percent 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 50 percent of his
regular wage.

Holiday and Special Day

HOLIDAY

SPECIAL DAY

NO WORK, WITH PAY

NO WORK, NO PAY

WITH WORK,
DOUBLE PAY

WITH WORK, EXTRA

PAY (30% premium)

Holidays and Special Days

HOLIDAY
New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Independence Day
National Heroes Day
Bonifacio Day
Christmas
Rizal Day
Eidl Fitr
Eidl Adha

SPECIAL DAY
Ninoy Aquino Day
All Saints Day
Last Day of the Year

Labor Standards

Employer-Employee Relationship
Contracting
Statutory Benefits
Wages
Hours of Work
Rest Period
Holidays
Leaves

Service Incentive Leave

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 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 after considering the viability or financial
condition of such establishment.
(c) The grant of benefit in excess of that provided herein shall
not be made a subject of arbitration or any court or
administrative action.

SIL

Employees engaged on task or contract

basis or paid on purely commission
basis are not automatically exempted
from the grant of service incentive
leave, unless, they fall under the
classification of field personnel.

Serrano v. Severino Santos Transit, August 9, 2010

Maternity Leave

R.A. 1161, as amended by R.A. 8282

60 days for normal delivery

78 days for caesarian delivery

Married or unmarried

Paternity Leave

R.A. 8187

7 days

Married and cohabiting with the wife

Leave for VAWC victims

R.A. 9262

10 days

As the need arises, at the option of the employee

Special Leave for Women

R.A. 9710

2 months with pay

For gynecological disorders requiring surgical

procedure

Parental (Solo Parent) Leave

Section 8, R.A. 8972

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.

Service Charges

Article 96. Service charges. All service

charges collected by hotels, restaurants and
similar establishments shall be distributed at
the rate of 85 percent for all covered
employees and 15 percent 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 integrated
into their wages.

OFWs entitled to salary for

UNEXPIRED PORTION of
contract
An OFW dismissed from overseas employment

without just, valid or authorized cause as defined by

law or contract, is entitled to:
Full reimbursement of the placement fee with interest
at 12% per annum
His salary for the UNEXPIRED PORTION of his
employment contract
NOTE: The 3-month limit in the law is INVALID
Serrano vs. Gallant Doctrine (2009)

Money claims of seafarers

Article 291 is the law governing the prescription of money claims

of seafarers, a class of overseas contract workers. This law
prevails over Section 28 of the Standard Employment Contract for
Seafarers which provides for claims to be brought only within one
year from the date of the seafarers return to the point of hire.
Section 28 of the Standard Employment Contract for Seafarers,
insofar as it limits the prescriptive period within which the
seafarers may file their money claims, is null and void. The
applicable provision is Article 291 of the Labor Code, it being
more favorable to the seafarers and more in accord with the
States declared policy to afford full protection to labor.
The prescriptive period in the present case is thus three years
from the time the cause of action accrues.
Southeastern Shipping v. Navarra, June 22, 2010

What is the distinction between disability claims under

the Labor Code and under the Social Security Law?

Claims under the Labor Code for compensation and under the
Social Security Law for benefits are not the same as to their
nature and purpose. On the one hand, the pertinent provisions
of the Labor Code govern compensability of work-related
disabilities or when there is loss of income due to workconnected or work-aggravated injury or illness. On the other
hand, the benefits under the Social Security Law are intended
to provide insurance or protection against the hazards or risks
of disability, sickness, old age or death, inter alia, irrespective of
whether they arose from or in the course of the employment.
And unlike under the Social Security Law, a disability is total
and permanent under the Labor Code if as a result of the injury
or sickness the employee is unable to perform any gainful
occupation for a continuous period exceeding 120 days
regardless of whether he loses the use of any of his body parts.

(Ortega v. Social Security Commission, June 25, 2008)

Retirement

Retirement is the result of a bilateral act of the

parties, a voluntary agreement between the
employer and the employee whereby the latter,
after reaching a certain age, agrees to sever his
or her employment with the former.
A retirement plan giving the employer the option
to retire its employees below the ages provided
by law must be assented to and accepted by the
latter, otherwise, its adhesive imposition will
amount to a deprivation of property without due
process of law.
Cercado v. Uniprom, October 13, 2010

Visitorial and Enforcement

Powers

Article 128. Visitorial and enforcement powers. (a) The Secretary of Labor
and Employment or his duly authorized representatives, including labor
regulations officers, shall have access to employer's records and premises
at any time of the day or night whenever work is being undertaken therein,
and the right to copy therefrom, to question any employee and to
investigate any fact, condition or matter which may be necessary to
determine violations or which may aid in the enforcement of this Code and
of any labor law, wage order or rules and regulations issued pursuant
thereto.
(b) The provisions of Article 217 of this Code to the contrary
notwithstanding and in cases where the relationship of employeremployee still exists, the Secretary of Labor and Employment or his duly
authorized representatives shall have the power to order and administer,
after due notice and hearing, compliance with the labor standards
provisions of this Code and other labor legislation based on the findings of
labor regulation officers or industrial safety engineers made in the course
of inspection, and to issue writs of execution to the appropriate authority
for the enforcement of their order, except in cases where the employer
contests the findings of the labor regulation officer and raises issues
which cannot be resolved without considering evidentiary matters that are
not verifiable in the normal course of inspection.

Visitorial and Enforcement

Powers

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 do not exceed five thousand
pesos (P5,000).
XXX
XXX XXX

Stoppage of Work

Article 128. Visitorial and enforcement powers. X X X

XXX
(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.

Secretary of Labor has NO jurisdiction to determine

the existence of employer-employee relationship in the
exercise of the visitorial and enforcement powers under
Article 128.

Article 128s grant of visitorial and enforcement

powers is for the purpose of determining violations
of, and enforcing, the Labor Code and any labor law,
wage order, or rules and regulations. If there is no
employer-employee relationship in the first place, the
duty of the employer to adhere to labor standards
with respect to the non-employees is questionable.
The Secretarys power under Art. 128 does not apply
in two instances: (a) where the employer-employee
relationship has ceased; and (b) where no such
relationship has ever existed. If there is a prima
facie showing of the absence of employer-employee
relationship, the Secretary is precluded from
exercising the visitorial and enforcement powers.
Peoples Broadcasting v. Secretary, May 8, 2009

Attorneys Fees

Article 111. Attorney's fees. (a) In cases of

unlawful withholding of wages the culpable
party may be assessed attorney's fees
equivalent to ten percent of the amount of
wages recovered.
(b) It shall be unlawful for any person to
demand or accept, in judicial or administrative
proceedings for the recovery of the wages,
attorney's fees which exceed ten percent of the
amount of wages recovered.