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That in all things, God may be glorified.

PJG

LABORLAW1

SUGGESTEDTEXTBOOK:

CAAzucena,TheLaborCodewithCommentsandCases(LatestEdition)

REFERENCES:

SamsonS.Alcantara,andSamsonB.AlcantaraJr.,PhilippineLaborandSocial
LegislationAnnotated
1987PhilippineConstitution
TheLaborCodeofthePhilippinesanditsImplementingRules&
Regulations
Pertinent International Human Rights Instruments and ILO Conventions,
RecommendationsandLaborrelatedlaws
AssignedReadings

I.INTRODUCTIONTOLABORLAW

A.LaborasaConcept

1.GeneralSense
Laborphysicaltoilalthoughitdoesnotnecessarilyexcludetheapplication
ofskill,thusthereisskilledandunskilledlabor.

Skill familiar knowledge of any art or sciencem united with radiness and
dexterity in execution or performance or in the application of the art or
sciencetopracticalpurposes.

Work is broader than labor as work covers all forms of physical or mental
exertion, or both combined, for the attainment of some object other than
recreationoramusementperse.

JRMSU | College of Law

2.Technicalsense

Worker broader than employee as workers may refer to selfemployed


people,andthoseworkingintheserviceandunderthecontrolofanother,
regardlessofrank,title,ornatureofwork.

Employeesalariedpersonworkingforanotherwhocontrolsorsupervises
themeans,mannerormethodofdoingthework.

B.LaborLaw

1.Definition

Laborlegislatonlaborstandards+laborrelations

a. consistsofstatutes,regulationsandjurisprudence
b. governingtherelationsbetweencapitalandlabor
c. byprovidingforcertainemploymentstandardsandalegalframework
d. fornegotiating,adjustingandadministeringthosestandardsandother
incidentsofemployment.

Labor standards: which sets out the minimum terms, conditions, and
benefitsofemploymentthatemployersmustprovideorcomplywithandto
whichemployeesareentitledasamatteroflegalright.

Labor relations law: which defines the status, rights and duties and the
institutional mechanisms that govern the individual and collective
interactionsofemployers,employeesortheirrepresentatives.

SOCIALLEGISLATIONVS.LABORLAWS

Social legislation: provides particular kinds of protection or benefits to


societyorsegmentsthereofinfurtheranceofsocialjustice.

Labor laws are necessarily social legislation. But to differentiate, labor laws
directly affect employment while social legislation governs effects of
employment.

Laborlawsaresociallegislationbutnotallsociallegislationarelaborlaws.

2. SocialJustice,Const.,Art.II,Sec.10;Art.XIII,Sec.13

Section 10. The State shall promote social justice in all phases of national
development.

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
commongood.

To this end, the State shall regulate the acquisition, ownership, use, and
dispositionofpropertyanditsincrements.

Section 2. The promotion of social justice shall include the commitment to


create economic opportunities based on freedom of initiative and self
reliance.

ARTICLEXIIILABOR
Section3.TheStateshallaffordfullprotectiontolabor,localandoverseas,
organized and unorganized, and promote full employment and equality of
employmentopportunitiesforall.
It shall guarantee the rights of all workers to selforganization, collective
bargainingandnegotiations,andpeacefulconcertedactivities,includingthe
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
participateinpolicyanddecisionmakingprocessesaffectingtheirrightsand
benefitsasmaybeprovidedbylaw.

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
compliancetherewithtofosterindustrialpeace.

The State shall regulate the relations between workers and employers,
recognizingtherightoflabortoitsjustshareinthefruitsofproductionand
the right of enterprises to reasonable returns to investments, and to
expansionandgrowth.

Theaimandthereasonand,therefore,thejustificationoflaborlawsissocial
justice.

Social Justice: JP Laurel in Calalang neither communism, nor despotism,


noratomismnotanarchybutthehumanizationoflawsandtheequalization
ofsocialandeconomicforcesbytheStatesothatjusticeinitsrationaland
objectivelysecularconceptionmayatleastbeapproximated.

The promotion of the welfare of all the people, the adoption by the
Government of measures calculated to insure economic stability of all the
component elements of society through the maintenance of proper
economicandsocialequilibriumintheinterrelationsofthemembersofthe
community, constitutionality, through the adoption of measures legally
justifiable, or extraconstitutionally, through the exercise of powers
underlying the existence of all governments, on the timehonored principle
ofsaluspopuliestsupremalex.

Labor is the primary social economic force, thus the State shall protect the
rightsofworkersandpromotetheirwelfare.

ConstitutionalRightsandMandates

The State shall afford fullprotection to labor and this is found in the 1935,
1973,and1987Consti.TheStateaffirmslaborasaprimarysocialeconomic
force thus, it shall protect the right of the workers and promote their
welfare.

Basicrightsofworkersguaranteedbytheconsti:

1. Righttoorganizethemselves
2. Conductcollectivebargainingornegotiationwithmanagement
3. Engage in peaceful concerted activities, including to strike in
accordancewithlaw

4.
5.
6.
7.

Enjoysecurityoftenure
Workunderhumaneconditions
Receivealivingwage
Participateinpolicyanddecisionmakingprocessesaffectingtheir
rightsandbenefitsasmaybeprovidedbylaw.(Sec.3,XIII).
OtherprovisionsintheConsti:

1) Righttoformunions,associations,societiesforpurposesnotcontrary
tolaw.
2) Right to self organization shall not be denied to government
employees.
3) Regularfarmworkersshallhavetherighttoowndirectlyorcollectively
thelandstheytill.
4) TheStateshallbylawandforcommongood,undertakeincooperation
withtheprivatesectoracontinuingprogramofurbanlandreformand
housing.
5) TheStateshallprotectworkingwomenbyprovidingsafeandhealthful
workingconditionstakingintoaccounttheirmaternalfunctions.
6) Laborisentitledtoseatsallottedtopartylistrepresentatives
7) TheStateshallpromoteindustrializationandfullemploymentbasedon
soundagriculturaldevelopmentandagrarianreform.
8) Congressshallcreateanagencytopromotetheviabilityandgrowthof
cooperatives.
9) The Govt shall increase salary scales of the other officials and
employeesoftheNationalGovernment.
10)
Career civil service employees shall be entitled to appropriate
separation pay and to retirement and other benefits under existing
laws.

a.
Definition/BalancingofInterest

Calalangv.Williams,70Phil.726(1940)

Social Justice: JP Laurel in Calalang neither communism, nor despotism,


noratomismnotanarchybutthehumanizationoflawsandtheequalization
ofsocialandeconomicforcesbytheStatesothatjusticeinitsrationaland
objectivelysecularconceptionmayatleastbeapproximated.

Socialjusticeisthepromotionofthewelfareofallthepeople,theadoption
bytheGovernmentofmeasurescalculatedtoinsureeconomicstabilityofall
the component elements of society through the maintenance of proper
economicandsocialequilibriumintheinterrelationsofthemembersofthe
community, constitutionality, through the adoption of measures legally
justifiable, or extraconstitutionally, through the exercise of powers
underlying the existence of all governments, on the timehonored principle
ofsaluspopuliestsupremalex.

ManilaElectricCo.v.Sec.ofLabor,337SCRA90(2000)

WhenwilltheCBAtakeeffect?

<oIx
CBAexpiration 6months

Secretary of Labor may determine the date of retroactivity as part of his


discretionary powers. But this discretionary power shall only be exercised
onlywhenjurisdictionhasbeenvested.

AssailedResolution:
Article 263(g) gives the Secretary jurisdiction. CBA negotiated within six
months after the expiration of the existing CBA retroacts to the day
immediately following such date and if agreed thereafter, the effectivity
depends on the agreement of the parties. But the law is silent as to the
retroactivity of a CBA arbitral award or that granted not by virtue of the
mutual agreement of the parties but by intervention of the government.
Despite the silence of the law, the Court rules herein that CBA arbitral
awards granted after six months from the expiration of the last CBA shall
retroacttosuchtimeagreeduponbybothemployerandtheemployeesor
their union. Absent such an agreement as to retroactivity, the award shall
retroact to the first dayof the sixmonth period following the expiration of
the last day of the CBA should there be one. IN the absence of a CBA, the
Secs determination of the date of retroactivity as part of his discretionary
powersoverarbitralawardsshallcontrol.

Held: Where an arbitral award is granted beyond six months after the
expiration of the existing CBA, and there is no agreement between the
partiesastothedateofeffectivitythereof,thearbitralawardshallretroact
tothefirstdayafterthesixmonthperiodfollowingtheexpirationofthelast
dayoftheCBA.ButinsteadofDec1,1995toNov301997(CBAhada2year
applicabilityperiod),theCourtmodifiedittoJune1,1996toMay31,1998.

On social justice: [T]his Court cannot ignore the enormous cost that
petitioner will have to bear as a consequence of the fill retroaction of the
arbitralawardtothedateoftheexpiryoftheCBAandtheinevitableeffect
thatitwouldhaveonthenationaleconomy.Ontheotherhand,underthe
policy of social justice, the law bends over backward to accommodate the
interestsoftheworkingclassonthehumanejustificationthatthosewithless
privilege in life should have more in law. Balancing these two contrasting
interests, this Court turned to the dictates of fairness and equitable justice
andthusarrivedataformulathatwouldaddresstheconcernsofbothsides.
Thus, Arbitral award must retroact to the first day AFTER the sixmonth
periodfollowingthelastdayoftheCBA.

Azucena:

The Consitution has not overlooked the rights of capital. It provides that,
theStaterecognizestheindispensableroleoftheprivatesector,encourages
private enterprise, and provides incentives to needed investments (Art. II,
Sec.20).

While labor is entitled to a just share in the fruits of production, the


enterprisehasanequallyimportantrightnotonlytoreasonablereturnson
investmentbutalsotoexpansionandgrowth.

SharedResponsibilitybetweenworkersandemployersPreferentialuseof
voluntarymodesofsettlingdisputes.

a. Foundation:PolicePowerandStateProtection

While social justice is the raison detre of labor laws, their basis or
foundationisthepolicepoweroftheState.

a. State legislatures may enact laws for the protection of the safety and
healthofemployees.
b. Rightofeverypersontopursueabusiness,occupation,orprofessionis
subjecttotheparamountrightofthegovernmentasapartofitspolice
powertoimposesuchrestrictionsandregulationsastheprotectionof
thepublicmayrequire.

Legal Classification: (discussed in light of the suspension of deployment of


women)

a. suchclassificationrestonsubstantialdistinctions
b. theyaregermanetothepurposeofthelaw
c. theyarenotconfinedtoexistingconditions
d. theyapplyequallytoallmembersofthesameclass

b. Foundation:PolicePowerandStateProtection

CMSEstate,Inc.v.SocialSecuritySystem,132SCRA108(1984)

Thecaseoftwobusinesses,onewasinrealestateandtheotherwasinthe
logging business. One owner was demanding for a refund from SSS and it
refused to subscribe the employees of the 2nd business to SSS because the
businesshasnotbeeninoperationfor2years(whichwastherequirementof
thelaw)yet.

The Social Security Law was enacted pursuant to the policy of the
government to develop, establish gradually and perfect a social security
system which shall be suitable to the needs of the people throughout the
Philippines, and shall provide protection against the hazards of disability,
sickness,oldageanddeath.Itisthusclearthatsaidenactmentimplements
the general welfare mandate of the Constitution and constitutes a
legitimateexerciseofthepolicepoweroftheState.

It is the intention of the law to cover as many persons as possible so as to


promotetheconstitutionalobjectiveofsocialjustice.

Compulsorycoverageoftheemployershalltakeeffectonthefirstdayofhis
operation,andthatoftheemployeeonthedateofhisemployment(RA1161

asamendedbyRA2658).Thetwoyearprescriptionofthepriorlawmustbe
considered prevailed over by the later law and moreover, the legislative
intentmustbegiveneffect.

c.
LimitsofUse

PLDTv.NLRC,164SCRA671(1988)

PLDT employee promised to facilitate the approval of the complainants


applications for telephone installation and then received from them an
amountofmoneyinconsiderationofherpromise.

TheruleembodiedintheLaborCodeisthatapersondismissedforcauseas
defined therein is not entitled to separation pay. The cases abovecited
(wheredifferentcaseswerecitedprovingthatsomecompaniesstillallowed
separationpaydespitethedegreeofthegrounduponwhichtheemployees
were being dismissed for) constitute the exception, based upon
considerations of equity. Equity has been defined as justice outside law,
beingethicalratherthanjuralandbelongingtothesphereofmoralsthanof
law.Itisgroundedonthepreceptsofconscienceandnotonanysanctionof
positivelaw.Hence,itcannotprevailagainsttheexpressedprovisionofthe
labor laws allowing dismissal of employees for cause and without any
provisionforseparationpay.
Separationpayshallbeallowedasameasureofsocialjusticeonlyinthose
instances where the employee is calidly 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, life theft or illicit sexual relations with a
fellow worker, the employer may not be required to give the dismissed
employeeseparationpayorfinancialassistance,orwhateverothernameitis
calledonthegroundofsocialjustice.

Thepolicyofsocialjusticeisnotintendedtocountenancewrongdoingsimply
becauseitiscommittedbytheunderprivileged.Atbestitmaymitigatethe
penalty but it certainly will not condone the offense. Compassion for the
poorisanimperativeofeveryhumanesocietybutonlywhentherecipientis
not a rascal claiming an underserved privilege. Social justice cannot be
permitted to be refuge of scoundrels any more than can equity be an

impedimenttothepunishmentoftheguilty.Thosewhoinvokesocialjustive
maydosoonlyiftheirhandsarecleanandtheirmotivesblamelessandnot
simplybecausetheyhappentobepoor.

Agabonv.NLRC,442SCRA573(2004)

Employeeswereclaimingillegaldismissal.Employerwasassertingthatthere
wasabandonment.

Abandonment is the deliberate and unjustified refusal of an employee to


resumehisemployment.Itisaformofneglectofduty,hence,ajustcause
for termination of employment by the employer. For a valid finding of
abandonment: (1) failure to report for work or absence without valid or
justifiable reason (2) clear intention to server employeremployee
relationship with the second as the more determinative factor which is
manifestedbyovertactsfromwhichitmaybededucedthattheemployees
hasnomoreintentiontowork.

Wenphil or Belated Due Process Rule: where the employer had a valid
reason to dismiss an employee but did not follow the due process
requirement,thedismissalmaybeupheldbuttheemployerwillbepenalized
topayanindemnitytotheemployee.

But this was reexamined in Serrano case wherein the Court required that
theemployerpaythefullbackwagesfromthetimeofdismissaluntilthetime
the Court finds the dismissal was for a just or authorized cause. It was
because of a significant number of cases involving dismissals without
requisitenotices.

InAgabon,theCourtabandonedSerranoandfollowedWenphilonlythatthe
sanctionsimposedontheemployermustbestifferthanthoseinWenphil.

AnemployeewhoisclearlyguiltyofconductviolativeofArticle282should
not be protected by the Social Justice Clause of the Constitution. Social
justice,asthetermssuggests,shouldbeusedonlytocorrectaninjustice.

JP Laurel, in Calalang: social justice must be founded on the recognition of


thenecessityofinterdependenceamongdiverseunitsofasocietyandofthe
protection that should be equally and evenly extended to all groups as a
combined forc e in our social and economic life, consistent with the
fundamentalandparamountobjectiveofthestateofpromotingthehealth,
comfortandquietofallperson,andofbringingaboutthegreatestgoodto
thegreatestnumber.

Socialjusticeis not based on rigid formulassetin stone. It has to allow for


changingtimesandcircumstances.

5.LegalBasis

a. InternationalConventions
InternationalSchoolAllianceofEducatorsv.Quisumbing,333SCRA13(2000)

Foreignerteachersweregivenmorebenefitsthanthelocalteachers.

International law, which springs from general principle of law, likewise


proscribes discrimination. General principles of law include principles of
equityi.ethegeneralprinciplesoffairnessandjustice,basedonthetestof
whatisreasonable.

Thefollowingembodythegeneralprincipleagainstdiscrimination,thevery
antithesisoffairnessandjustice.

UniversalDeclarationofHumanRights
The International Covenant on Economic, Social, and Cultural
Rights
The International Convention on the Elimination of All Forms of
RacialDiscrimination
TheConventionagainstDiscriminationinEducation
The Convention Concerning Discrimination in Respect of
EmploymentandOccupation

Mentionedinthecase:
BargainingUnit:isagroupofemployeesofagivenemployer,comprisedof
allorlessthanalloftheentirebodyofemployees,consistentwithequityto
theemployerindicatetobethebestsuitedtoservethereciprocalrightsand
dutiesofthepartiesunderthecollectivebargainingprovisionsofthelaw.

The factors determining the appropriate collective bargaining unit are: (1)
the will of the employees (2) affinity and unity of the employees interest,
such as substantial similarity of work and duties, or similarity of
compensation and working conditions (3) prior collective bargaining history
(4)similarityofemploymentstatus.

b. 1987Constitution,Art.II,Secs.5,9,10,13,14,18;Art.XIII,Secs.1,3,14

ART.II

Section5.Themaintenanceofpeaceandorder,theprotectionoflife,liberty,
and property, and promotion of the general welfare are essential for the
enjoymentbyallthepeopleoftheblessingsofdemocracy.

Section9.TheStateshallpromoteajustanddynamicsocialorderthatwill
ensure the prosperity and independence of the nation and free the people
frompovertythroughpoliciesthatprovideadequatesocialservices,promote
full employment, arising standardof living, and an improved quality of life
forall.

Section 10. The State shall promote social justice in all phases of national
development.

Section13.TheStaterecognizesthevitalroleoftheyouthinnationbuilding
and shall promote and protect their physical, moral, spiritual, intellectual,
and social wellbeing. It shall inculcate in the youth patriotism and
nationalism,andencouragetheirinvolvementinpublicandcivicaffairs.

Section 14. The State recognizes the role of women in nationbuilding, and
shallensurethefundamentalequalitybeforethelawofwomenandmen.

Section18.TheStateaffirmslaborasaprimarysocialeconomicforce.Itshall
protecttherightsofworkersandpromotetheirwelfare.

Art.XIII

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
commongood.

Section3.TheStateshallaffordfullprotectiontolabor,localandoverseas,
organized and unorganized, and promote full employment and equality of
employmentopportunitiesforall.
It shall guarantee the rights of all workers to selforganization, collective
bargainingandnegotiations,andpeacefulconcertedactivities,includingthe
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
participateinpolicyanddecisionmakingprocessesaffectingtheirrightsand
benefitsasmaybeprovidedbylaw.

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
compliancetherewithtofosterindustrialpeace.

The State shall regulate the relations between workers and employers,
recognizingtherightoflabortoitsjustshareinthefruitsofproductionand
the right of enterprises to reasonable returns to investments, and to
expansionandgrowth.

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
enablethemtorealizetheirfullpotentialintheserviceofthenation.

Seealso: 1935Const.,Art.XIV,Sec.,6;1973Const.,Art.II,Sec.9

1935Constitution,Art.XIV,Sec.6

Section 6. The State shall afford protection to labor, especially to working


women,andminors,andshallregulatetherelationsbetweenthelandowner
andtenant,andbetweenlaborandcapitalinindustryandinagriculture.The
Statemayprovideforcompulsoryarbitration.

1973Const.Art.II,Sec.9

Section 9. The State shall afford protection to labor, promote full


employment and equality in employment, ensure equal work opportunities
regardlessofsex,race,orcreed,andregulatetherelationbetweenworkers
and employers. The State shall assure the rights of workers to self
organization,collectivebargaining,securityoftenure,andjustandhumane
conditionsofwork.TheStatemayprovideforcompulsoryarbitration.

c. LaborCode(LC)andOmnibusRulesImplementingtheLaborCode

d. NewCivilCodeofthePhilippines(NCC),Arts.19,21,17001701

Art. 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
observehonestyandgoodfaith.

Art.21.Anypersonwhowilfullycauseslossorinjurytoanotherinamanner
that is contrary to morals, good customs or public policy shall compensate
thelatterforthedamage.

Art. 1700. The relations between capital and labor are not merely
contractual.Theyaresoimpressedwithpublicinterestthatlaborcontracts
mustyieldtothecommongood.Therefore,suchcontractsaresubjecttothe
special laws on labor unions, collective bargaining, strikes and lockouts,
closedshop,wages,workingconditions,hoursoflaborandsimilarsubjects.

Art.1701.Neithercapitalnorlaborshallactoppressivelyagainsttheother,
orimpairtheinterestorconvenienceofthepublic.

6.SourcesofLaw

a. LaborCodeandRelatedSpecialLegislation(ImplementingRules)
b. ContractArt.13051306,NewCivilCode

Art. 1305. A contract is a meeting of minds between two persons whereby


onebindshimself,withrespecttotheother,togivesomethingortorender
someservice.(1254a)

Art. 1306. The contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided they are not
contrarytolaw,morals,goodcustoms,publicorder,orpublicpolicy.(1255a)

c. CollectiveBargainingAgreement

DOLEPhils.v.PawisngMakabayangObrero,395SCRA112(2003)

InterpretationofthefreemealsprovisionintheCBA.Isitaftertheemployee
has worked only after more than three hours of work or those who have
renderedexactlythreehoursofovertimework?

The disputed provision of the CBA is clear and unambiguous. The terms of
the CBA is not susceptible to any other interpretation. Hence the literal
meaningoffreemealsafterthree(3)hoursofovertimeworkshallprevail,
which is simply that an employee shall be entitled to a free meal if he has
rendered exactly, or no less than, three hours of overtime work, not after
morethanorinexcessofthreehoursovertimework.

Found in the case: Management prerogative: 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.Thissituationconstitutesoneofthelimitations.TheCBAisthenorm
of conduct between the petitioner and private respondent and compliance
therewithismandatedbytheexpresspolicyofthelaw.

d. PastPractices

DavaoFruitsCorporationv.AssociatedlaborUnion,225SCRA562(1993)

Issue:WONinthecomputationofthe13thmonthpaygivenbyemployersto
their employees under PD 851, payments for sick, vacation and maternity
leaves, premiums for work done rest days and special holidays and pay for
regularholidaysmaybeexcludedinthecomputationandpaymentthereof,
regardlessoflongstandingcompanypractice.

A company practice favorable to the employees had indeed been


established and the payments made pursuant thereto, ripened into
benefitsenjoyedbythem.Andanybenefitandsupplementbeingenjoyed
by the employees cannot be reduced, diminished, discontinued or
eliminated by the employer, by virtue of Sec 10 of the Rules and
Regulations Implementing PD 851 and Art 100 of the Labor Code which
prohibit the diminution or elimination b the employer of the employees
existingbenefits.

Theconsiderablelengthoftimethequestioneditemshadbeenincludedby
petitioner indicates a unilateral and voluntary act on its part, sufficient in
itselftonegateanyclaimofmistake.

SamahangManggagawasaTopFormManufacturingUnitedWorkersofthe
Phil.(SMTFMUWPv.NLRC,295SCRA171
(1998)

Thecasewhereintheemployerwaschargedashavingcommittedanunfair
labor practice by bargaining in bad faith and discriminating against in
employeesbypromisingatacollectivebargainingconferencetoimplement
anygovernmentmandatedwageincreasesonanacrosstheboardbasis.

Past promises which were written in the minutes of the meeting. The
proposal was never embodied in the CBA, thus, the promise remained just
that, a promise, the implementation which cannot be validly demanded
underthelaw.

The law provides remedies to the petitioner union to compel priv resp to
incorporate this specific economic proposal in the CBA, which they did not
do.

The CBA is the law between the contracting partiesthe collective


bargaining representative and the employercompany. Compliance with a
CBAismandatedbytheexpressedpolicytogiveprotectiontolabor.Inthe
samevein,CBAprovisionshouldbeconstruedliberallyratherthannarrowly
and technically, and the courts must place a practical and realistic
construction upon it, giving due consideration to the context in which it is
negotiatedandpurposewhichitisintendedtoserve.Thisisfoundedonthe
dictumthataCBAisnotanordinarycontractbutoneimpressedwithpublic
interest. It goes without saying, however, that only provisions embodied in
theCBAshouldbesointerpretedandcompliedwith.

No benefits or privileges previously enjoyed by petitioner union and the


otheremployeeswerewithdrawnasaresultofthemannerbywhichprivate
respimplementedthewageorders.

American Wire and Cable Daily rated Employees Union American Wire and
Cableco.,Inc.,457SCRA684(2005)

The company suddenly withdrew and denied certain benefits and


entitlements which the employees have long enjoyed like service awards,
35%premiumpayofanemployeesbasicpayforworkrenderedduringHoly
Monday,Tuesday,Wednesday,December23,26,27,28,and29,Christmas
PartyandPromotionalIncreases.

It is critical that a determination must be first made whether the


benefits/entitlementsareinthenatureofabonusornot,andassumingthey
areso,whethertheyaredemandableandenforceableobligations.

Bonus: is an amount granted and paid to an employee for his industry and
loyalty which contributed to the success of the employers business and
madepossibletherealizationofprofits.Itisanactofgenerositygrantedby

an enlightened employer to spur the employee to greater efforts for the


success of the business and realization of bigger profits. The granting of a
bonusisamanagementprerogative,somethinggiveninadditiontowhatis
ordinarily received by or strictly due the recipient. Thus, a bonus is not a
demandableandenforceableobligation,exceptwhenitismadepartofthe
wage,salaryorcompensationoftheemployee.

Issue: WON thesebonuses can beconsidered part of thewage or salaryor


compensationmakingthemenforceableobligations.

Held:No.Forabonustobeenforceable,itmusthavebeenpromisedbythe
employer and expressly agreed upon by the parties or it must have had a
fixed amount and had been a long and regular practice on the part of the
employer.

The benefits/entitlements in question were never subjects of any express


agreement between the parties. They were never incorporated in the CBA.
As observed by the VA, the records reveal that these benefits/entitlements
havenotbeensubjectsofanyexpressagreementbetweentheunionandthe
company,andhavenotyetbeenincorporatedintheCBA.

Downtrend was clear in the service award amount and the parties venue
werechangedfrompaidvenuestoonewhichwasfreeofcharge.

Tobeconsideredaregularpractice,thegivingofthebonusshouldhave
been done over a long period of time, and must be shown to have been
consistentanddeliberate.

e. CompanyPolicies

ChinaBankingCorporationv.Borromeo,440SCRA621(2004)

The case of amanager whowas consistently promoted because of ahighly


satisfactoryperformancewhichlandedhimattheAVPspotonlytofindout
thathehasdoneirregularitiesinapprovingseveralDAUD/BPinfavorofone
Maniwan.

TheBanksSOPprovidesarestitution/forfeitureofbenefitsprovision.

Itiswellrecognizedthatcompanypoliciesandregulationsare,unlessshown
to be grossly oppressive or contrary to law, generally binding, and valid on
the parties and must be complied with until finally revised or amended
unilaterally or preferably through negotiation or by competent authority.
Moreover,managementhastheprerogativetodisciplineitsemployeesand
to impose appropriate penalties on erring workers pursuant to company
rules and regulations. With more reason should these truisms apply to the
respondent, who, by reason of his position, was required to act judiciously
andtoexercisehisauthorityinharmonywithcompanypolicies.

Business enterprises have a prerogative to discipline its employees and to


impose appropriate penalties on erring workers pursuant to company rules
andregulationswhichmustberespected.Thelaw,inprotectingtherightsof
labor, authorized neither oppression nor selfdestruction of an employer
company which itself is possessed of rights that must be entitled to
recognitionandrespect.

7.Classification

a. LaborStandards

b. LaborRelations

c. WelfareLegislation

II. LABORCODEOFTHEPHILIPPINES

A.BriefHistory

B.GeneralProvisions

1. 1.DecreeTitle,Art.1

ARTICLE 1. Name of Decree. This Decree shall be known as the "Labor


CodeofthePhilippines".

2. Effectivity,Art.2

ART.2.Dateofeffectivity.ThisCodeshalltakeeffectsix(6)monthsafter
itspromulgation.
3. PolicyDeclaration,Art.3

ART. 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
selforganization, collective bargaining, security of tenure, and just and
humaneconditionsofwork.

4. ConstructioninFavorofLabor,Art.4

ART.4.Constructioninfavoroflabor.Alldoubtsintheimplementation
and interpretation of the provisions of this Code, including its
implementingrulesandregulations,shallberesolvedinfavoroflabor.

SalinasJr.v.NLRC,319SCRA54(1999)

Reyesv.CourtofAppeals,409SCRA267(2003)

G&MPhilippines,Inc.v.RomilCuambot,GRNo.162308,Nov.22,2006

2.

RuleMakingPower,Art.5
ART. 5. Rules and regulations. The Department of Labor and other
governmentagencieschargedwiththeadministrationandenforcementof
thisCodeoranyofitspartsshallpromulgatethenecessaryimplementing
rules and regulations. Such rules and regulations shall become effective
fifteen(15)daysafterannouncementoftheiradoptioninnewspapersof
generalcirculation.

KapisananngmgaManggagawangPinagyakapv.NLRC,152SCRA6(1987)

3.

TechnicalRulesNotBinding,Art.221
ART.221.Technicalrulesnotbindingandpriorresorttoamicablesettlement.
InanyproceedingbeforetheCommissionoranyoftheLaborArbiters,the
rulesofevidenceprevailingincourtsoflaworequityshallnotbecontrolling
and it is the spirit and intention of this Code that the Commission and its
membersandtheLaborArbitersshalluseeveryandallreasonablemeansto
ascertainthefactsineachcasespeedilyandobjectivelyandwithoutregard
totechnicalitiesoflaworprocedure,allintheinterestofdueprocess.Inany
proceedingbeforetheCommissionoranyLaborArbiter,thepartiesmaybe
represented by legal counsel but it shall be the duty of the Chairman, any
Presiding Commissioner or Commissioner or any Labor Arbiter to exercise
completecontroloftheproceedingsatallstages.

HuntingtonSteelProducts,Inc.v.NLRC,442SCRA551(2004)

4.

Applicability,Art.6,276;Constitution,Art.IXB,Sec.2(1)
ART. 6. Applicability. All rights and benefits granted to workersunder this
Code shall, except as may otherwise be provided herein, apply alike to all
workers, whether agricultural or nonagricultural. (As amended by
PresidentialDecreeNo.570A,November1,1974).
ART.276.Governmentemployees.Thetermsandconditionsofemployment
of all government employees, including employees of governmentowned

andcontrolledcorporations,shallbegovernedbytheCivilServiceLaw,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
employmentbeingenjoyedbythematthetimeoftheadoptionofthisCode.
Constitution,Art.IXB,Sec.2(1)

Section 2. (1) The civil service embraces all branches, subdivisions,


instrumentalities, and agencies of the Government, including government
ownedorcontrolledcorporationswithoriginalcharters.

5. EnforcementandSanctionsArts.217(a)(2),(3),(4),(6);128129;288292;
Consti.,ArtIII,Secs.11and16

ART.217.JurisdictionoftheLaborArbitersandtheCommission.(a)Except
asotherwiseprovidedunderthisCode,theLaborArbitersshallhaveoriginal
andexclusivejurisdictiontohearanddecide,withinthirty(30)calendardays
after the submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the following cases
involvingallworkers,whetheragriculturalornonagricultural:

2.Terminationdisputes;
3. If accompanied with a claim for reinstatement, those cases that
workersmayfileinvolvingwages,ratesofpay,hoursofworkandother
termsandconditionsofemployment;
4. Claims for actual, moral, exemplary and other forms of damages
arisingfromtheemployeremployeerelations;
6.ExceptclaimsforEmployeesCompensation,SocialSecurity,Medicareand
maternity benefits, all other claims arising from employeremployee
relations, including those of persons in domestic or household service,
involvinganamountexceedingfivethousandpesos(P5,000.00)regardlessof
whetheraccompaniedwithaclaimforreinstatement.

ART.128.Visitorialandenforcementpower.(a)TheSecretaryofLaborand
Employment or his duly authorized representatives, including labor
regulationofficers,shallhaveaccesstoemployersrecordsandpremisesat
anytimeofthedayornightwheneverworkisbeingundertakentherein,and
the right to copy therefrom, to question any employee and investigate any
fact,conditionormatterwhichmaybenecessarytodetermineviolationsor
which may aidin the enforcement of thisCodeand of anylaborlaw, wage
orderorrulesandregulationsissuedpursuantthereto.
(b)NotwithstandingtheprovisionsofArticles129and217ofthisCodetothe
contrary, 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 issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the findings of labor employment and enforcement
officersorindustrialsafetyengineersmadeinthecourseofinspection.The
Secretaryorhisdulyauthorizedrepresentativesshallissuewritsofexecution
to the appropriate authority for the enforcement of their orders, except in
caseswheretheemployerconteststhefindingsofthelaboremploymentand
enforcement officer and raises issues supported by documentary proofs
which were not considered in the course of inspection. (As amended by
RepublicActNo.7730,June2,1994).
An order issued by the duly authorized representative of the Secretary of
Labor and Employment under this Article may be appealed to the latter. In
casesaidorderinvolvesamonetaryaward,anappealbytheemployermay
be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Secretary of Labor and
Employment in the amount equivalent to the monetary award in the order
appealedfrom.(AsamendedbyRepublicActNo.7730,June2,1994).
(c)TheSecretaryofLaborandEmploymentmaylikewiseorderstoppageof
work or suspension of operations of any unit or department of an
establishmentwhennoncompliancewiththelaworimplementingrulesand
regulations poses grave and imminent danger to the health and safety of
workers in the workplace. Within twentyfour 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

concernedtheirsalariesorwagesduringtheperiodofsuchstoppageofwork
orsuspensionofoperation.
(d)Itshallbeunlawfulforanypersonorentitytoobstruct,impede,delayor
otherwise render ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives issued pursuant to the
authoritygrantedunderthisArticle,andnoinferiorcourtorentityshallissue
temporaryorpermanentinjunctionorrestrainingorderorotherwiseassume
jurisdiction over any case involving the enforcement orders issued in
accordancewiththisArticle.
(e) Any government employee found guilty of violation of, or abuse of
authority, under this Article shall, after appropriate administrative
investigation,besubjecttosummarydismissalfromtheservice.
(f)TheSecretaryofLaborandEmploymentmay,byappropriateregulations,
requireemployerstokeepandmaintainsuchemploymentrecordsasmaybe
necessaryinaidofhisvisitorialandenforcementpowersunderthisCode.
ART.129.Recoveryofwages,simplemoneyclaimsandotherbenefits.Upon
complaintofanyinterestedparty,theRegionalDirectoroftheDepartment
of Labor and Employment or any of the duly authorized hearing officers of
theDepartmentisempowered,throughsummaryproceedingandafterdue
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 employeremployee relations:
Provided, That such complaint does not include a claim for reinstatement:
Provided further, That the aggregate money claims of each employee or
househelperdoesnotexceedFivethousandpesos(P5,000.00).TheRegional
Directororhearingofficershalldecideorresolvethecomplaintwithinthirty
(30) calendar days from the date of the filing of the same. Any sum thus
recoveredonbehalfofanyemployeeorhousehelperpursuanttothisArticle
shallbeheldinaspecialdepositaccountby,andshallbepaidonorderof,
theSecretaryofLaborandEmploymentortheRegionalDirectordirectlyto
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 within a period of three (3) years, shall be

held as a special fund of the Department of Labor and Employment to be


usedexclusivelyfortheameliorationandbenefitofworkers.
Any decision or resolution of the Regional Director or hearing officer
pursuanttothisprovisionmaybeappealedonthesamegroundsprovidedin
Article223ofthisCode,withinfive(5)calendardaysfromreceiptofacopy
of said decision or resolution, to the National Labor Relations Commission
which shall resolve the appeal within ten (10) calendar days from the
submissionofthelastpleadingrequiredorallowedunderitsrules.
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,
RepublicActNo.6715,March21,1989).
ART.288.Penalties.ExceptasotherwiseprovidedinthisCode,orunlessthe
actscomplainedofhingeonaquestionofinterpretationorimplementation
ofambiguousprovisionsofanexistingcollectivebargainingagreement,any
violation of the provisions of this Code declared to be unlawful or penal in
nature shall be punished with a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Ten Thousand Pesos (P10,000.00) or
imprisonment of not less than three months nor more than three years,or
bothsuchfineandimprisonmentatthediscretionofthecourt.
In addition to such penalty, any alien found guilty shall be summarily
deporteduponcompletionofserviceofsentence.
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
Section3,BatasPambansaBilang70).
ART.289.Whoareliablewhencommittedbyotherthannaturalperson.If
the offense is committed by a corporation, trust, firm, partnership,
associationoranyotherentity,thepenaltyshallbeimposedupontheguilty
officerorofficersofsuchcorporation,trust,firm,partnership,associationor
entity.
TitleII

PRESCRIPTIONOFOFFENSESANDCLAIMS
ART. 290. Offenses.Offenses penalized under this Code and therules and
regulationsissuedpursuanttheretoshallprescribeinthree(3)years.
All unfair labor practice arising from Book V shall be filed with the
appropriate agency within one (1) year from accrual of such unfair labor
practice;otherwise,theyshallbeforeverbarred.
ART.291.Moneyclaims.Allmoneyclaimsarisingfromemployeremployee
relations accruing during the effectivity of this Code shall be filed within
three (3) years from the time the cause of action accrued; otherwise they
shallbeforeverbarred.
All money claims accruing prior to the effectivity of this Code shall be filed
withtheappropriateentitiesestablishedunderthisCodewithinone(1)year
from the date of effectivity, and shall be processed or determined in
accordance with the implementing rules and regulations of the Code;
otherwise,theyshallbeforeverbarred.
WorkmenscompensationclaimsaccruingpriortotheeffectivityofthisCode
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
LabornotlaterthanMarch31,1975;otherwise,theyshallforeverbebarred.
The claims shall be processed and adjudicated in accordance with the law
andrulesatthetimetheircausesofactionaccrued.
ART. 292. 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.
Pendingthefinaldeterminationofthemeritsofmoneyclaimsfiledwiththe
appropriateentity,nocivilactionarisingfromthesamecauseofactionshall
be filed with any court. This provision shall not apply to employees
compensation case which shall be processed and determined strictly in
accordancewiththepertinentprovisionsofthisCode.

ART.III,SEC.11AND16,CONSTITUTION
Section11.Freeaccesstothecourtsandquasijudicialbodiesandadequate
legalassistanceshallnotbedeniedtoanypersonbyreasonofpoverty.

Section 16. All persons shall have the right to a speedy disposition of their
casesbeforealljudicial,quasijudicial,oradministrativebodies.

C. WorkRelationship

1.EmployerandEmployeeRelationship

a. DefinitionofEmployerandEmployee,Arts.97(a)(b)(c),167(f)
(g)(h),212(e)(f)

ART.97.Definitions.AsusedinthisTitle:
(a) "Person" means an individual, partnership, association, corporation,
businesstrust,legalrepresentatives,oranyorganizedgroupofpersons.
(b) "Employer" includes any person acting directly or indirectly in the
interestofanemployerinrelationtoanemployeeandshallincludethe
government and all its branches, subdivisions and instrumentalities, all
governmentowned or controlled corporations and institutions, as well
asnonprofitprivateinstitutions,ororganizations.
(c)"Employee"includesanyindividualemployedbyanemployer.
Art. 167. Definition of Terms.As used in this Title, unless the context
indicatesotherwise:
(f)Employermeansanyperson,naturalorjuridical,employingtheservices
oftheemployee.
(g) Employee means any person compulsorily covered by the GSIS under
Commonwealth Act Numbered One hundred eightysix, as amended,
including the members of the Armed Forces of the Philippines, and any
personemployedascasual,emergency,temporary,substituteorcontractual,

oranypersoncompulsorilycoveredbytheSSSunderRepublicActNumbered
Elevenhundredsixtyone,asamended.
(h) Person means any individual, partnership, firm, association, trust,
corporationorlegalrepresentativethereof.
Art.212.
(e) "Employer" includes any person acting in the interest of an employer,
directlyorindirectly.Thetermshallnotincludeanylabororganizationorany
ofitsofficersoragentsexceptwhenactingasemployer.
(f)"Employee"includesanypersonintheemployofanemployer.Theterm
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 dispute or
because of any unfair labor practice if he has not obtained any other
substantiallyequivalentandregularemployment.
b. Factors/Tests

Rugav.NLRC,181SCRA437(1990)

PerpetualHelpCreditv.Faburadaetal.,366SCRA693(2001)

VicenteSyv.CourtofAppeals,398SCRA301(2003)

Chavezv.NLRC,448SCRA478(2005)

AngelinaFranciscov.NLRC,etal.,GRNo.170087,Aug.31,2006

c. PiercingtheCorporateVeil

PamplonaPlantatinCo.,Inc.v.Tinghil,450SCRA421(2005)

2. Independent Contractor and Laboronly Contractor, Art. 106107, 109; DO


No.1802,S2002

ART.106.Contractororsubcontractor.Wheneveranemployerentersintoa
contractwithanotherpersonfortheperformanceoftheformerswork,the
employeesofthecontractorandofthelatterssubcontractor,ifany,shallbe
paidinaccordancewiththeprovisionsofthisCode.
Intheeventthatthecontractororsubcontractorfailstopaythewagesofhis
employees in accordance with this Code, the employer shall be jointly and
severallyliablewithhiscontractororsubcontractortosuchemployeestothe
extentoftheworkperformedunderthecontract,inthesamemannerand
extentthatheisliabletoemployeesdirectlyemployedbyhim.
The Secretary of Labor and Employment may, by appropriate regulations,
restrict or prohibit the contractingout of labor to protect the rights of
workersestablishedunderthisCode.Insoprohibitingorrestricting,hemay
make appropriate distinctions between laboronly contracting and job
contractingaswellasdifferentiationswithinthesetypesofcontractingand
determinewhoamongthepartiesinvolvedshallbeconsideredtheemployer
for purposes of this Code, toprevent any violation orcircumvention of any
provisionofthisCode.
Thereis"laboronly"contractingwherethepersonsupplyingworkerstoan
employer does not have substantial capital or investment in the form of
tools, equipment, machineries, work premises, among others, and the
workersrecruitedandplacedbysuchpersonareperformingactivitieswhich
aredirectlyrelatedtotheprincipalbusinessofsuchemployer.Insuchcases,
the person or intermediary shall be considered merely as an agent of the

employerwhoshallberesponsibletotheworkersinthesamemannerand
extentasifthelatterweredirectlyemployedbyhim.
ART. 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
contractorfortheperformanceofanywork,task,joborproject.
DEPARTMENT
ORDER
NO.
18

02
(Series
of
2002)
.
.
RULES
IMPLEMENTING
ARTICLES
106
TO
109
OF
THE
LABOR
CODE,
AS
AMENDED
.
.
By virtue of the power vested in the Secretary of Labor and Employment
underArticles5(Rulemaking)and106(ContractororSubcontractor)ofthe
Labor Code of the Philippines, as amended, the following regulations
governingcontractingandsubcontractingarrangementsareherebyissued:
Section 1. Guiding principles. Contracting and subcontracting
arrangements are expressly allowed by law and are subject to regulation
for the promotion of employment and the observance of the rights of
workers to just and humane conditions of work, security of tenure, self
organization, and collective bargaining. Laboronly contracting as defined
hereinshallbeprohibited.
Section2.Coverage.TheseRulesshallapplytoallpartiesofcontracting
and subcontracting arrangements where employeremployee relationship
exists. Placement activities through private recruitment and placement
agenciesasgovernedbyArticles25to39oftheLaborCodearenotcovered
bytheseRules.
Section 3. Trilateral Relationship in Contracting Arrangements. In
legitimate contracting, there exists a trilateral relationship under which
thereisacontractforaspecificjob,workorservicebetweentheprincipal
and the contractor or subcontractor, and a contract of employment
betweenthecontractororsubcontractoranditsworkers.Hence,thereare
three parties involved in these arrangements, the principal which decides

tofarmoutajoborservicetoacontractororsubcontractor,thecontractor
or subcontractor which has the capacity to independently undertake the
performance of the job, work or service, and the contractual workers
engagedbythecontractororsubcontractortoaccomplishthejobworkor
service.
Section4.DefinitionofBasicTerms.Thefollowingtermsasusedinthese
Rules,shallmean:
(a)"Contracting"or"subcontracting"referstoanarrangementwherebya
principalagreestoputoutorfarmoutwithacontractororsubcontractor
the performance or completion of a specific job, work or service within a
definiteorpredeterminedperiod,regardlessofwhethersuchjob,workor
serviceistobeperformedorcompletedwithinoroutsidethepremisesof
theprincipal.
(b)"Contractororsubcontractor"referstoanypersonorentityengagedin
alegitimatecontractingorsubcontractingarrangement.
(c) "Contractual employee" includes one employed by a contractor or
subcontractortoperformorcompleteajob,workorservicepursuanttoan
arrangementbetweenthelatterandaprincipal.
(d) "Principal" refers to any employer who puts out or farms out a job,
serviceorworktoacontractororsubcontractor.
Section 5. Prohibition against laboronly contracting. Laboronly
contracting is hereby declared prohibited. For this purpose, laboronly
contracting shall refer to an arrangement where the contractor or
subcontractormerelyrecruits,suppliesorplacesworkerstoperformajob,
work or service for a principal, and any of the following elements are
present:
(i) The contractor or subcontractor does not have substantial capital or
investmentwhichrelatestothejob,workorservicetobeperformedand
the employees recruited, supplied or placed by such contractor or
subcontractor are performing activities which are directly related to the
mainbusinessoftheprincipal;or
(ii) the contractor does not exercise the right to control over the
performanceoftheworkofthecontractualemployee.

The foregoing provisions shall be without prejudice to the application of


Article248(C)oftheLaborCode,asamended.
"Substantialcapitalorinvestment"referstocapitalstocksandsubscribed
capitalization in the case of corporations, tools, equipment, implements,
machineries and work premises, actually and directly used by the
contractor or subcontractor in the performance or completion of the job,
workorservicecontractedout.
The "right to control" shall refer to the right reserved to the person for
whomtheservicesofthecontractualworkersareperformed,todetermine
notonlytheendtobeachieved,butalsothemannerandmeanstobeused
inreachingthatend.
Section 6. Prohibitions. Notwithstanding Section 5 of these Rules, the
followingareherebydeclaredprohibitedforbeingcontrarytolaworpublic
policy:
(a) Contracting out of a job, work or service when not done in good faith
andnotjustifiedbytheexigenciesofthebusinessandthesameresultsin
the termination of regular employees and reduction of work hours or
reductionorsplittingofthebargainingunit;
(b)Contractingoutofworkwitha"cabo"asdefinedinSection1(ii),RuleI,
BookVoftheseRules."Cabo"referstoapersonorgroupofpersonsortoa
laborgroupwhich,intheguiseofalabororganization,suppliesworkersto
an employer, with or without any monetary or other consideration
whether in the capacity of an agent of the employer or as an ostensible
independentcontractor;
(c)Takingundueadvantageoftheeconomicsituationorlackofbargaining
strengthofthecontractualemployee,orundermininghissecurityoftenure
orbasic rights, or circumventing the provisions of regular employment, in
anyofthefollowinginstances:
(i)Inadditiontohisassignedfunctions,requiringthecontractualemployee
to perform functions which are currently being performed by the regular
employeesoftheprincipalorofthecontractororsubcontractor;

(ii) Requiring him to sign, as a precondition to employment or continued


employment,anantedatedresignationletter;ablankpayroll;awaiverof
laborstandardsincludingminimumwagesandsocialorwelfarebenefits;or
a quitclaim releasing the principal, contractor or subcontractor from any
liabilityastopaymentoffutureclaims;and
(iii)Requiringhimtosignacontractfixingtheperiodofemploymenttoa
termshorterthanthetermofthecontractbetweentheprincipalandthe
contractor or subcontractor, unless the latter contract is divisible into
phasesforwhichsubstantiallydifferentskillsarerequiredandthisismade
knowntotheemployeeatthetimeofengagement;
(d) Contracting out of a job, work or service through an inhouse agency
which refers to a contractor or subcontractor engaged in the supply of
labor which is owned, managed or controlled by the principal and which
operatessolelyfortheprincipal;
(e)Contractingoutofajob,workorservicedirectlyrelatedtothebusiness
oroperationoftheprincipalbyreasonofastrikeorlockoutwhetheractual
orimminent;
(f) Contracting out of a job, work or service being performed by union
memberswhensuchwillinterferewith,restrainorcoerceemployeesinthe
exerciseoftheirrightstoselforganizationasprovidedinArt.248(c)ofthe
LaborCode,asamended.
Section7.Existenceofanemployeremployeerelationship.Thecontractor
or subcontractor shall be considered the employer of the contractual
employee for purposes of enforcing the provisions of the Labor Code and
other social legislation. The principal, however, shall be solidarily liable
with the contractor in the event of any violation of any provision of the
LaborCode,includingthefailuretopaywages.
Theprincipalshallbedeemedtheemployerofthecontractualemployeein
anyofthefollowingcasesasdeclaredbyacompetentauthority:
(a)wherethereislaboronlycontracting;or
(b) where the contracting arrangement falls within the prohibitions
providedinSection6(Prohibitions)hereof.

Section 8. Rights of Contractual Employees. Consistent with Section 7 of


theseRules,thecontractualemployeeshallbeentitledtoalltherightsand
privileges due a regular employee as provided for in the Labor Code, as
amended,toincludethefollowing:
(a)
Safe
and
healthful
working
conditions;
(b)Laborstandardssuchasserviceincentiveleave,restdays,overtimepay,
holiday
pay,
13th
month
pay
and
separation
pay;
(c)
Social
security
and
welfare
benefits;
(d) Selforganization, collective bargaining and peaceful concerted action;
and
(e)Securityoftenure.
Section 9. Contract between contractor or subcontractor and contractual
employee. Notwithstanding oral or written stipulations to the contrary,
thecontractbetweenthecontractororsubcontractorandthecontractual
employee,whichshallbeinwriting,shallincludethefollowingtermsand
conditions:
(a)Thespecificdescriptionofthejob,workorservicetobeperformedby
thecontractualemployee;
(b)Theplaceofworkandtermsandconditionsofemployment,includinga
statement of the wage rate applicable to the individual contractual
employee;and
(c) The term or duration of employment, which shall be coextensive with
thecontractoftheprincipalandsubcontractor,orwiththespecificphase
forwhichthecontractualemployeeisengaged,asthecasemaybe.
The contractor or subcontractor shall inform the contractual employee of
the foregoing terms and conditions on or before the first day of his
employment.
Section10.EffectofTerminationofContractualEmployment.Incasesof
terminationofemploymentpriortotheexpirationofthecontractbetween
the principal and the contractor or subcontractor, the right of the
contractual employee to separation pay or other related benefits shall be
governed by the applicable laws and jurisprudence on termination of
employment.

Wheretheterminationresultsfromtheexpirationofthecontractbetween
theprincipalandthecontractororsubcontractor,orfromthecompletion
ofthephaseofthejob,workorserviceforwhichthecontractualemployee
isengaged,thelattershallnotbeentitledtoseparationpay.However,this
shall be without prejudice to completion bonuses or other emoluments,
including retirement pay as may be provided by law or in the contract
betweentheprincipalandthecontractororsubcontractor.
Section11.RegistrationofContractorsorSubcontractors.Consistentwith
the authority of the Secretary of Labor and Employment to restrict or
prohibit the contracting out of labor through appropriate regulations, a
registration system to govern contracting arrangements and to be
implementedbytheRegionalOfficesisherebyestablished.
The registration of contractors and subcontractors shall be necessary for
purposes of establishing an effective labor market information and
monitoring.
Failuretoregistershallgiverisetothepresumptionthatthecontractoris
engagedinlaboronlycontracting.
Section 12. Requirements for registration. A contractor or subcontractor
shall be listed in the registry of contractors and subcontractors upon
completion of an application form to be provided by the DOLE. The
applicantcontractororsubcontractorshallprovideintheapplicationform
thefollowinginformation:
(a)Thenameandbusinessaddressoftheapplicantandtheareaorareas
whereitseekstooperate;
(b) The names and addresses of officers, if the applicant is a corporation,
partnership,cooperativeorunion;
(c) The nature of the applicant's business and the industry or industries
wheretheapplicantseekstooperate;
(d)Thenumberofregularworkers;thelistofclients,ifany;thenumberof
personnel assigned to each client, if any and the services provided to the
client;

(e) The description of the phases of the contract and the number of
employeescoveredineachphase,whereappropriate;and
(f)Acopyofauditedfinancialstatementsiftheapplicantisacorporation,
partnership, cooperative or a union, or copy of the latest ITR if the
applicantisasoleproprietorship.
Theapplicationshallbesupportedby:
(a)Acertifiedcopyofacertificateofregistrationoffirmorbusinessname
fromtheSecuritiesandExchangeCommission(SEC),DepartmentofTrade
andIndustry(DTI),CooperativeDevelopmentAuthority(CDA),orfromthe
DOLEiftheapplicantisaunion;and
(b) A certified copy of the license or business permit issued by the local
governmentunitorunitswherethecontractororsubcontractoroperates.
Theapplicationshallbeverifiedandshallincludeanundertakingthatthe
contractor or subcontractor shall abide by all applicable labor laws and
regulations.
Section 13. Filing and processing of applications. The application and its
supporting documents shall be filed in triplicate in the Regional Offices
where the applicant principally operates. No application for registration
shallbeacceptedunlessalltheforegoingrequirementsarecompliedwith.
Thecontractororsubcontractorshallbedeemedregistereduponpayment
ofaregistrationfeeofP100.00totheRegionalOffice.
Where all the supporting documents have been submitted, the Regional
Officeshalldenyorapprovetheapplicationwithinseven(7)workingdays
afteritsfiling.
Upon registration, the Regional Office shall return one set of the duly
stampedapplicationdocumentstotheapplicant,retainonesetforitsfile,
and transmit the remaining set to the Bureau of Local Employment. The
Bureau shall devise the necessary forms for the expeditious processing of
allapplicationsforregistration.
Section14.Dutytoproducecopyofcontractbetweentheprincipalandthe
contractor or subcontractor. The principal or the contractor or
subcontractor shall be under an obligation to produce a copy of the

contractbetweentheprincipalandthecontractorintheordinarycourseof
inspection.Thecontractorshalllikewisebeunderanobligationtoproduce
a copy of the contract of employment of the contractual worker when
directedtodosobytheRegionalDirectororhisauthorizedrepresentative.
A copy of the contract between the contractual employee and the
contractor or subcontractor shall be furnished the certified bargaining
agent,ifthereisany.
Section15.AnnualReportingofRegisteredContractors.Thecontractoror
subcontractorshallsubmitintriplicateitsannualreportusingaprescribed
formtotheappropriateRegionalOfficenotlaterthanthe15thofJanuary
ofthefollowingyear.Thereportshallinclude:
(a)Alistofcontractsenteredwiththeprincipalduringthesubjectreporting
period;
(b)Thenumberofworkerscoveredbyeachcontractwiththeprincipal;
(c)Aswornundertakingthatthe benefits fromtheSocialSecuritySystem
(SSS),theHomeDevelopmentMutualFund(HDMF),PhilHealth,Employees
CompensationCommission(ECC),andremittancestotheBureauofInternal
Revenue (BIR) due its contractual employees have been made during the
subjectreportingperiod.
TheRegionalOfficeshallreturnonesetofthedulystampedreporttothe
contractor or subcontractor, retain one set for its file, and transmit the
remainingsettotheBureauofLocalEmploymentwithinfive(5)daysfrom
receiptthereof.
Section 16. Delisting of contractors or subcontractors. Subject to due
process,theRegionalDirectorshallcanceltheregistrationofcontractorsor
subcontractorsbasedonanyofthefollowinggrounds:
(a) Nonsubmission of contracts between the principal and the contractor
orsubcontractorwhenrequiredtodoso;
(b)Nonsubmissionofannualreport;

(c) Findings through arbitration that the contractor or subcontractor has


engagedinlaboronlycontractingandtheprohibitedactivitiesasprovided
inSection6(Prohibitions)hereof;and
(d)Noncompliancewithlaborstandardsandworkingconditions.
Section 17. Renewal of registration of contractors or subcontractors. All
registered contractors or subcontractors may apply for renewal of
registration every three years. For this purpose, the Tripartite Industrial
PeaceCouncil(TIPC)ascreatedunderExecutiveOrderNo.49,shallserveas
theoversightcommitteetoverifyandmonitorthefollowing:
(a)Engaginginallowablecontractingactivities;and
(b)Compliancewithadministrativereportingrequirements.
Section 18. Enforcement of Labor Standards and Working Conditions.
ConsistentwithArticle128(VisitorialandEnforcementPower)oftheLabor
Code, as amended, the Regional Director through his duly authorized
representatives,includinglaborregulationofficersshallhavetheauthority
toconductroutineinspectionofestablishmentsengagedincontractingor
subcontractingandshallhaveaccesstoemployer'srecordsandpremisesat
any time of the day or night whenever work is being undertaken therein,
andtherighttocopytherefrom,toquestionanyemployeeandinvestigate
any fact, condition or matter which may be necessary to determine
violations or which may aid in the enforcement of the Labor Code and of
any labor law, wage order, or rules and regulations issued pursuant
thereto.
Thefindingsofthedulyauthorizedrepresentativeshallbereferredtothe
RegionalDirectorforappropriateactionasprovidedforinArticle128,and
shallbefurnishedthecollectivebargainingagent,ifany.
Based on the visitorial and enforcement power of the Secretary of Labor
and Employment in Article 128 (a), (b), (c) and (d), the Regional Director
shall issue compliance orders to give effect to the labor standards
provisionsoftheLaborCode,otherlaborlegislationandtheseguidelines.
Section 19. Solidary liability. The principal shall be deemed as the direct
employerofthecontractualemployeesandtherefore,solidarilyliablewith
the contractor or subcontractor for whatever monetary claims the

contractual employees may have against the former in the case of


violations as provided for in Sections 5 (LaborOnly contracting), 6
(Prohibitions), 8 (Rights of Contractual Employees) and 16 (Delisting) of
theseRules.Inaddition,theprincipalshallalsobesolidarilyliableincase
the contract between the principal and contractor or subcontractor is
preterminatedforreasonsnotattributabletothefaultofthecontractoror
subcontractor.
Section20.Supersession.AllrulesandregulationsissuedbytheSecretary
ofLaborandEmploymentinconsistentwiththeprovisionsofthisRuleare
hereby superseded. Contracting or subcontracting arrangements in the
construction industry, under the licensing coverage of the PCAB and shall
notincludeshipbuildingandshiprepairingworks,however,shallcontinue
tobegovernedbyDepartmentOrderNo.19,seriesof1993.
Section21.Effectivity.ThisOrdershallbeeffectivefifteen(15)daysafter
completionofitspublicationintwo(2)newspapersofgeneralcirculation.
.
Manila,Philippines,21February2002.
a.

RequirementsforIndependentContractor

SanMiguelCorpv.NLRC&Maliksi,GRNo.147566,Dec.6,2006

LIIKHAPMPBv.Burlinggamecorp.,GRNo.162833,June15,2007

b.

DesirableUnnecessary

CocaColaBottlersPhil.,Inc.v.NLRC,307SCRA131(1999)

c.

LaborContractorOnly;RequisitesandProhibition

ManilaWaterCo.,Inc.v.Pena,434SCRA52(2004)

d.

EffectofFinding

SanMiguelCorporationv.Abella,461SCRA392(2005)

3.LiabilityofIndirectEmployer

Lanzaderasv.AmethystSecurity&GeneralServices,Inc.,supra

D.Preemployment,RecruitmentandPlacementofWorkers

Reference: Arts. 1242; POEA Rules; Book 1, Rules IIIVIII, Omnibus Rules;
Migrant Workers and Overseas Filipinos Act of 1995 (RA 8042); Anti
Trafficking in Persons Act 2003 (RA 9208) and Rules and Regulations
ImplementingRA9208

1. PreemploymentPolicyStatementofObjectives,Art.12(a)(f);
Const.,Art.II,Sec.9;RA8042,Sec.2,4&5.

ART.12.Statementofobjectives.ItisthepolicyoftheState:
a) To promote and maintain a state of full employment through
improvedmanpowertraining,allocationandutilization;
f) To strengthen the network of public employment offices and
rationalizetheparticipationoftheprivatesectorintherecruitmentand
placement of workers, locally and overseas, to serve national
developmentobjectives;

1987Constitution,ArtII,Sec.9

TheStateshallpromoteajustanddynamicsocialorderthatwillensure
the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services,
promotefullemployment,arisingstandardofliving,andanimproved
qualityoflifeforall.

REPUBLICACTNO.8042
SEC.2.DECLARATIONOFPOLICIES
(a) In the pursuit of an independent foreign policy and while
considering national sovereignty, territorial integrity, national interest
and the right to selfdetermination paramount in its relations with

other states, the State shall, at all times, uphold the dignity of its
citizenswhetherincountryoroverseas,ingeneral,andFilipinomigrant
workers,inparticular.
(b) The State shall afford full protection to labor, local and overseas,
organizedandunorganized,andpromotefullemploymentandequality
of employment opportunities for all. Towards thisend, the State shall
provide adequate and timely social, economic and legal services to
Filipinomigrantworkers.
(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
meanstosustaineconomicgrowthandachievenationaldevelopment.
Theexistenceoftheoverseasemploymentprogramrestssolelyonthe
assurancethatthedignityandfundamentalhumanrightsandfreedoms
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
wealthandthebenefitsofdevelopment.
(d) The State affirms the fundamental equality before the law of
womenandmenandthesignificantroleofwomeninnationbuilding.
Recognizingthecontributionofoverseasmigrantwomenworkersand
their particular vulnerabilities, the State shall apply gender sensitive
criteriaintheformulationandimplementationofpoliciesandprograms
affectingmigrantworkersandthecompositionofbodiestaskedforthe
welfareofmigrantworkers.
(e) Free access to the courts and quasijudicial bodies and adequate
legal assistance shall not be denied to any persons by reason of
poverty.Inthisregard,itisimperativethataneffectivemechanismbe
institutedtoensurethattherightsandinterestofdistressedoverseas
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 decisionmaking processes of the State
andtoberepresentedininstitutionsrelevanttooverseasemployment
isrecognizedandguaranteed.

(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,thegovernmentshalldeployand/orallowthedeployment
onlytoskilledFilipinoworkers.
(h)Nongovernmentalorganizations,dulyrecognizedaslegitimate,are
partnersoftheStateintheprotectionofFilipinomigrantworkersand
inthepromotionoftheirwelfare,theStateshallcooperatewiththem
inaspiritoftrustandmutualrespect.
(I) Government fees and other administrative costs of recruitment,
introduction,placementandassistanceto migrant workers shall be
renderedfreewithoutprejudicetotheprovisionofSection36hereof.
Nonetheless, the deployment of Filipino overseas workers, whether
landbased or seabased by local service contractors and manning
agencies employing them shall be encouraged. Appropriate incentives
maybeextendedtothem.
I.DEPLOYMENT
SEC. 4. Deployment of Migrant Workers The State shall deploy
overseasFilipinoworkersonlyincountrieswheretherightsofFilipino
migrantworkersareprotected.Thegovernmentrecognizesanyofthe
following as guarantee on the part of the receiving country for the
protectionandtherightsofoverseasFilipinoworkers:
(a)Ithasexistinglaborandsociallawsprotectingtherightsofmigrant
workers;
(b) It is a signatory to multilateral conventions, declaration or
resolutionsrelatingtotheprotectionofmigrantworkers;
(c) It has concluded a bilateral agreement or arrangement with the
governmentprotectingtherightsofoverseasFilipinoworkers;and
(d) It is taking positive, concrete measures to protect the rights of
migrantworkers.
SEC.5.TERMINATIONORBANONDEPLOYMENTNotwithstandingthe
provisions of Section 4 hereof, the government, in pursuit of the
nationalinterestorwhenpublicwelfaresorequires,may,atanytime,
terminateorimposeabanonthedeploymentofmigrantworkers.

2. PrivateSectorAgenciesandEntities

a.
Parties

1)WorkerArt.13(a)

ART. 13. Definitions. (a) "Worker" means any member of the labor
force,whetheremployedorunemployed.

2)PrivateEmploymentAgencyArts.13(c)(d),12(f),14(a)

ART. 13. (c) "Private feecharging employment agency" means any


personorentityengagedinrecruitmentandplacementofworkersfor
a fee which is charged, directly or indirectly, from the workers or
employersorboth.
(d) "License" means a document issued by the Department of Labor
authorizingapersonorentitytooperateaprivateemploymentagency.
ART.12.Statementofobjectives.ItisthepolicyoftheState:
f) To strengthen the network of public employment offices and
rationalizetheparticipationoftheprivatesectorintherecruitmentand
placement of workers, locally and overseas, to serve national
developmentobjectives;
ART.14.Employmentpromotion.TheSecretaryofLaborshallhavethe
powerandauthority:
(a)Toorganizeandestablishnewemploymentofficesinadditiontothe
existing employment offices under the Department of Labor as the
needarises;

3)PrivateRecruitmentEntityArts.13(e)(f),12(f),14(a)

ART. 13. (e) "Private recruitment entity" means any person or


association engaged in the recruitment and placement of workers,
locallyoroverseas,withoutcharging,directlyorindirectly,anyfeefrom
theworkersoremployers.
(f) "Authority" means a document issued by the Department of Labor
authorizing a person or association to engage in recruitment and
placementactivitiesasaprivaterecruitmententity.
ART.12.Statementofobjectives.ItisthepolicyoftheState:
f) To strengthen the network of public employment offices and
rationalizetheparticipationoftheprivatesectorintherecruitmentand
placement of workers, locally and overseas, to serve national
developmentobjectives;
ART.14.Employmentpromotion.TheSecretaryofLaborshallhavethe
powerandauthority:
(a)Toorganizeandestablishnewemploymentofficesinadditiontothe
existing employment offices under the Department of Labor as the
needarises;
b.

RecruitmentandPlacement

1)

LocalEmployment,Art.13(b)
(b) "Recruitment and placement" refers to 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,Thatanypersonorentitywhich,inanymanner,offersor
promises for a fee, employment to two or more persons shall be
deemedengagedinrecruitmentandplacement.

2)OverseasEmployment,Sec.6,RA8042

Sec.6.DEFINITIONS.ForpurposesofthisAct,illegalrecruitmentshall
mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, procuring workers and includes referring, contact
services,promisingoradvertisingforemploymentabroad,whetherfor
profit or not, when undertaken by a nonlicense or nonholder of
authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the
Philippines.Provided,thatsuchnonlicenseornonholder,who,inany
manner, offers or promises for a fee employment abroad to two or
morepersonsshallbedeemedsoengaged.Itshalllikewiseincludethe
following acts, whether committed by any persons, whether a non
licensee,nonholder,licenseeorholderofauthority.
(a) To charge or accept directly or indirectly any amount greater than
the specified in the schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to make a worker pay any
amountgreaterthanthatactuallyreceivedbyhimasaloanoradvance;
(b)Tofurnishorpublishanyfalsenoticeorinformationordocumentin
relationtorecruitmentoremployment;
(c) To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing a
licenseorauthorityundertheLaborCode;
(d)Toinduceorattempttoinduceaworkeralreadyemployedtoquit
his employment in order to offer him another unless the transfer is
designedtoliberateaworkerfromoppressivetermsandconditionsof
employment;
(e) To influence or attempt to influence any persons or entity not to
employ any worker who has not applied for employment through his
agency;
(f) To engage in the recruitment of placement of workers in jobs
harmfultopublichealthormoralityortodignityoftheRepublicofthe
Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of
LaborandEmploymentorbyhisdulyauthorizedrepresentative;

(h) To fail to submit reports on the status of employment, placement


vacancies,remittancesofforeignexchangeearnings,separationsfrom
jobs, departures and such other matters or information as may be
requiredbytheSecretaryofLaborandEmployment;
(i) To substitute or alter to the prejudice of the worker, employment
contracts approved and verified by the Department of Labor and
Employmentfromthetimeofactualsigningthereofbythepartiesup
toand including the period of the expiration of the same without the
approvaloftheDepartmentofLaborandEmployment;
(j) For an officer or agent of a recruitment or placement agency to
becomeanofficerormemberoftheBoardofanycorporationengaged
in travel agency or to be engaged directly on indirectly in the
managementofatravelagency;
(k) To withhold or deny travel documents from applicant workers
before departure for monetary or financial considerations other than
thoseauthorizedundertheLaborCodeanditsimplementingrulesand
regulations;
(l)Failuretoactuallydeploywithoutvalidreasonsasdeterminedbythe
DepartmentofLaborandEmployment;and
(m) Failure to reimburse expenses incurred by the workers 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
byasyndicateorinlargescaleshallbeconsideredasoffenseinvolving
economicsabotage.
Illegalrecruitmentisdeemedcommittedbyasyndicatecarriedoutbya
group of three (3) or more persons conspiring or confederating with
one another. It is deemed committed in large scale if committed
againstthree(3)ormorepersonsindividuallyorasagroup.
Thepersonscriminallyliablefortheaboveoffensesaretheprincipals,
accomplices and accessories. In case of juridical persons, the officers
having control, management or direction of their business shall be
liable.
c. AllowedandProtectedEntities

1)AllowedPrivateAgenciesandEntities,Arts.16,18,25,12(f)

ART. 16. Private recruitment. Except as provided in ChapterII of this


Title, no person or entity other than the public employment offices,
shallengageintherecruitmentandplacementofworkers.
ART.18.Banondirecthiring.NoemployermayhireaFilipinoworker
for overseas employment except through the Boards and entities
authorizedbytheSecretaryofLabor.Directhiringbymembersofthe
diplomaticcorps,internationalorganizationsandsuchotheremployers
as may be allowed by the Secretary of Labor is exempted from this
provision.
ART. 25. Private sector participation in the recruitmentand placement
ofworkers.Pursuanttonationaldevelopmentobjectivesandinorder
to harness and maximize the use of private sector resources and
initiativeinthedevelopmentandimplementationofacomprehensive
employmentprogram,theprivateemploymentsectorshallparticipate
in the recruitment and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may be issued by the
SecretaryofLabor.
ART.12.Statementofobjectives.ItisthepolicyoftheState:
f) To strengthen the network of public employment offices and
rationalizetheparticipationoftheprivatesectorintherecruitmentand
placement of workers, locally and overseas, to serve national
developmentobjectives;
2)ProhibitedBusinessAgenciesandEntities,Arts.16,18,25,26
ART.16.Privaterecruitment.ExceptasprovidedinChapterIIofthisTitle,
nopersonorentityotherthanthepublicemploymentoffices,shallengagein
therecruitmentandplacementofworkers.

ART. 18. Ban on directhiring. No employer may hire a Filipino worker for
overseasemploymentexceptthroughtheBoardsandentitiesauthorizedby
the Secretary of Labor. Directhiring by members of the diplomatic corps,

internationalorganizationsandsuchotheremployersasmaybeallowedby
theSecretaryofLaborisexemptedfromthisprovision.

ART. 25. Private sector participation in the recruitment and placement of


workers. Pursuant to national development objectives and in order to
harnessandmaximizetheuseofprivatesectorresourcesandinitiativeinthe
development and implementation of a comprehensive employment
program,theprivateemploymentsectorshallparticipateintherecruitment
andplacementofworkers,locallyandoverseas,undersuchguidelines,rules
andregulationsasmaybeissuedbytheSecretaryofLabor.
ART. 26. Travel agencies prohibited to recruit. Travel agencies and sales
agenciesofairlinecompaniesareprohibitedfromengaginginthebusinessof
recruitmentandplacementofworkersforoverseasemploymentwhetherfor
profitornot.
d. GovernmentTechniquesofRegulationPrivateRecruitment
1) Licensing,Arts.27,28,29,30,31,POEArulesandRegulations,BookII,Sec.1
andBookII,RuleII

ART. 27. Citizenship requirement. Only Filipino citizens or


corporations, partnerships or entities at least seventyfive percent
(75%)oftheauthorizedandvotingcapitalstockofwhichisownedand
controlled by Filipino citizens shall be permitted to participate in the
recruitmentandplacementofworkers,locallyoroverseas.
ART.28.Capitalization.Allapplicantsforauthoritytohireorrenewal
oflicensetorecruitarerequiredtohavesuchsubstantialcapitalization
asdeterminedbytheSecretaryofLabor.
ART. 29. Nontransferability 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
statedinthelicenseorauthoritybetransferred,conveyedorassigned
to any other person or entity. Any transfer of business address,
appointment or designation of any agent or representative including

theestablishmentofadditionalofficesanywhereshallbesubjecttothe
priorapprovaloftheDepartmentofLabor.
ART.30.Registrationfees.TheSecretaryofLaborshallpromulgatea
schedule of fees for the registration of all applicants for license or
authority.
ART.31.Bonds.Allapplicantsforlicenseorauthorityshallpostsuch
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.
POEARules,BookII,
LICENSINGANDREGULATION

RULEI
PARTICIPATIONOFTHEPRIVATESECTORINTHEOVERSEASEMPLOYMENT
PROGRAM

Section 1. Qualifications. Only those who possess the following


qualifications may be permitted to engage in the business of
recruitmentandplacementofFilipinoworkers:

a. Filipino citizens, partnerships or corporations at least seventy five


percent (75%) of the authorized capital stock of which is owned and
controlledbyFilipinocitizens;

b. A minimum capitalization of Two Million Pesos (P2,000,000.00) in


case ofa single proprietorship or partnership and a minimum paidup
capital of Two Million Pesos (P2,000,000.00) in case of a corporation;
Providedthatthosewithexistinglicensesshall,withinfouryearsfrom
effectivityhereof,increasetheircapitalizationorpaidupcapital,asthe
casemaybe,toTwoMillionPesos(P2,000,000.00) attherateofTwo
HundredFiftyThousandPesos(P250,000.00)everyyear.

c. Those not otherwise disqualified by law or other government


regulationstoengageintherecruitmentandplacementofworkersfor
overseasemployment.

RULEII
ISSUANCEOFLICENSE

Section 1. Requirements for Issuance of License. Every applicant for


license to operate a private employment agency or manning agency
shall submit a written application together with the following
requirements:
a.AcertifiedcopyoftheArticlesofIncorporationorofPartnershipduly
registered with the Securities and Exchange Commission (SEC), in the
caseofcorporationorpartnershiporCertificateofRegistrationoffirm
orbusinessnamewiththeBureauofDomesticTrade(BDT)inthecase
ofasingleproprietorship;
b.Proofoffinancialcapacity:Inthecaseofasingleproprietorshipor
partnership,verifiedincometaxreturnsforthepasttwo(2)yearsanda
bank certificate of a cash deposit of P250,000.00, provided that the
applicantshouldsubmitanauthoritytoexaminesuchbankdeposit.
In the case of a newly organized corporation, submission of a bank
certificate of a cash deposit of at least P250,000.00 with authority to
examinethesame.Foranexistingcorporation,submissionofaverified
financialstatement,corporatetaxreturnsforthepasttwo(2)yearsand
bank certification of a cash deposit of at least P250,000.00 with the
correspondingauthoritytoexaminesuchdeposit.
c.EscrowagreementintheamountofP200,000.00withanaccredited
reputable banking corporation to primarily answer for valid and legal
claims of recruited workers as a result of recruitment violations or
moneyclaims;
d. Clearance of all members of the Board of Directors, partner, or
proprietor of the applicant agency from the National Bureau of
Investigation (NBI) and other government agencies as the need may
require, Fiscals clearance in case of persons with criminal cases;
providedthatwherethememberorpartnerconcernedisaforeigner,
clearancefromhiscountryoforiginshallbeacceptable;

e.

For

Proof

of
landbased

marketing

capability;
applicants:

An applicant with an actualprincipal/foreign employer to be serviced,


shall at the time of application submit the following documents for
evaluation:

(1) A duly executed Special Power of Attorney authenticated by the


PhilippineEmbassy/ConsulateorLaborAttacheintheplacewherethe
principal/employers
hold
their
office;
or

(2) A concluded service/recruitment agreement authenticated by the


PhilippineEmbassy/Consulate,orLaborAttacheintheplacewherethe
project/job
site
is
located;

(3) An authenticated manpower mobilization request or visa approval


of not less than fifty (50) workers for deployment withina period not
exceedingsix(6)monthsfromissuanceofapprovedlicense;

An applicant who, at the time of application is unable to present a


foreign principal/employer shall, upon compliance with all other
licensing requirements as herein provided, be issued a provisional
license, subject to submission of a verified undertaking to deploy at
least fifty (50) workers, exclusive of direct hired, within a period not
exceedingsix(6)monthsfromdateofissuanceofprovisionallicense.It
isunderstoodthatfailuretocomplywiththisundertakingshallresultin
the automatic revocation of the provisional license.

Formanningapplicants:
(1) A duly executed Special Power of Attorney authenticated by the
Philippine Embassy/Consulate or Labor Attache in place where the

vessel owners/operators/manager hold their principal office; or

(2) A duly concluded manning agreement authenticated by the


PhilippineEmbassy,Consulate,orLaborAttacheintheplacewherethe
vessel/owners/operators/ manager hold their principal office;

(3) A manpower mobilization request of not less than fifty (50)


seafarersfordeploymentwithinaperiodnotexceedingsix(6)months
fromissuanceofapprovedlicense.
f.Averifiedundertakingstatingthattheapplicant:
(1) Shall select only medically and technically qualified recruits;

(2) Shall assume full and complete responsibility for all claims and
liabilities which may arise in connection with the use of license;

(3) Shall assume joint and solidary liability with the employer for all
claims and liabilities which may arise in connection with the
implementationofthecontract,includingbutnotlimitedtopaymentof
wages, death and disability compensation and repatriation;

(4) Shall guarantee compliance with the existing labor and social
legislations of the Philippines and of the country of employment of
recruited
workers;
and

(5) Shall assume full and complete responsibility for all acts of its
officials, employees and representatives done in connection with
recruitmentandplacement;
g. List of all officials and personnel involved in the recruitment and
placement, together with their appointment, biodata and two (2)
copiesoftheirpassportsizepictures.
h. Copy of contract of lease or proof of building ownership together
withofficeaddress.
Section2.ActionontheApplication.Withinthirty(30)calendardays
fromreceiptofapplicationorrequirementsincludingproofofpayment

of a nonrefundable filing fee of P5,000.00, the Administration shall


evaluatepertinentdocumentsoftheapplicant,inspecttheofficesand
equipmentandrecommendtotheSecretarytheapprovalordenialof
theapplication.
Section3.IssuanceofLicense.TheAdministrationshallrecommend
to the Secretary issuance of the corresponding license upon due
evaluationandcompliancewithlicensingrequirementsandoperational
standards.
Section 4. Payment of Fees and Posting of Bonds. Upon approval of
the application, the applicant shall pay a license fee of P30,000.00. It
shall also post a cash bond of P100,000.00 and a surety bond of
P50,000.00fromabondingcompanyacceptabletotheAdministration
and duly accredited by the Insurance Commission. The bonds 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 shall likewise guarantee
compliancewiththeprovisionsoftheCodeanditsimplementingrules
andregulationsrelatingtorecruitmentandplacement,theRulesofthe
Administration and relevant issuances of the Department and all
liabilitieswhichtheAdministrationmayimpose.Thesuretybondsshall
includetheconditionthatnoticetotheprincipalisnoticetothesurety
andthatanyjudgmentagainsttheprincipalinconnectionwithmatters
fallingunderPOEAsjurisdictionshallbebindingandconclusiveonthe
surety.Thesuretybondsshallbecoterminuswiththevalidityperiod
ofthelicense.
Section5.ValidityofLicense.Everylicenseshallbevalidforatleast
two (2) years from the date of issuance unless sooner cancelled or
revoked by the Secretary or suspended by the Administration for
violation of the Code and its rules and relevant decrees, orders and
issuances and other rules and regulations of the Department. Such
licenseshallbevalidonlyattheplace/sstatedthereinandwhenused
bythelicensedperson,partnershiporcorporation.
Section 6. NonTransferability 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.Violationshallcauseautomaticrevocationoflicense.
In case of death of the sole proprietor, and in order to prevent
disruption of operation and so as not to prejudice the interest of
legitimate heirs, the licensed single proprietorship may be allowed to
continueonlyforthepurposeofwindingupitsbusinessoperation.
Section 7. Change of Ownership/Relationship of Single Proprietorship
or Partnership. Transfer or change of ownership of a single
proprietorshiplicensedtoengageinoverseasemploymentshallcause
the automatic revocation of the license. The new owner shall be
requiredtoapplyforalicenseinaccordancewiththeseRules.
A change in the relationship of the partners in a partnership duly
licensedtoengageinoverseasemploymentwhichmateriallyinterrupts
the course of the business or results in the actual dissolution of the
partnership shall likewise cause the automatic revocation of the
license.
Section8.UpgradingofSingleProprietorshiporPartnerships.License
holderswhicharesingleproprietorshipsorpartnershipsmay,subjectto
the guidelines of the Administration, convert into corporation for
purposes of upgrading or raising their capabilities to respond
adequatelytodevelopments/changesintheinternationallabormarket
andtoenablethemtobettercomplywiththeirresponsibilitiesarising
fromtherecruitmentanddeploymentofworkersoverseas.
Theapprovalofmerger,consolidationorupgradingshallautomatically
revokeorcancelthelicensesofthesingleproprietorships,partnerships
orcorporationssomerged,consolidatedorupgraded.
Section 9. Change of Directors of Corporation. Every change in the
composition of the Board of Directors of a corporation licensed to
participate in overseas employment shall be registered with the
Administration within thirty (30) calendar days from the date the
changewasdecidedorapproved.Thecorporationshallberequiredto
submittotheAdministrationtheMinutesofProceedingsdulycertified
by the SEC, the biodata and clearances of the new members of the

BoardfromthegovernmentagenciesidentifiedinSection1(e)ofthis
Rule.
Section10.ChangeofOtherOfficersandPersonnel.Everychangeor
terminationofappointmentofofficers,representativesandpersonnel
shall be registered with the Administration within thirty (30) calendar
daysfromthedateofsuchchange.
The Administration reserves the right to deny the appointment of
officers and employees who were directly involved in recruitment
irregularities.
Section 11. Appointment of Representatives. Every appointment of
representatives or agents of licensed agency shall be subject to prior
approval
or
authority
of
the
Administration.

Theapprovalmaybeissueduponsubmissionoforcompliancewiththe
followingrequirements:
a. Proposed appointment or special power of attorney;

b. Clearances of the proposed representative or agent from NBI;

c. A sworn or verified statement by the designating or appointing


personorcompanyassumingfullresponsibilityforallactsoftheagent
or representative done in connection with the recruitment and
placementofworkers;
Section 12. Publication of Change of Directors/Other Officers and
Personnel/ Revocation or Amendment of Appointment of
Representatives. In addition to the requirement of registration with
andsubmissiontotheAdministration,everychangeinthemembership
oftheBoardofDirectors,resignation/terminationofotherofficersand
personnel, revocation or amendment of appointment of
representatives shall be published at least once in a newspaper of
general circulation, in order to bind third parties. Proof of such
publicationshallbesubmittedtotheAdministration

Section13.TransferofBusinessAddressandStudio.Anytransferof
businessaddressshallbeeffectedonlywithpriorauthorityorapproval
of the Administration. The approval shall be issued only upon formal
noticeoftheintentiontotransferwiththefollowingattachments:
a.CopyofthecompanysnoticetotheBDTortheSEConthetransfer
of
business
address;

b.Inthecaseofacorporation,aBoardResolutiondulyregisteredwith
the SEC authorizing the transfer of business address;

c. In the case of a single proprietorship, a copy of the BDTs


acknowledgment of the notice to transfer; and

d.Copyofthecontractofleaseorproofofbuildingownership.
The new office shall be subject to the normal ocular inspection
proceduresbydulyauthorizedrepresentativesoftheAdministration.
A notice to the public of the new address shall be published in a
newspaperofgeneralcirculation.
Section14.EstablishmentofExecutiveOffice.Theestablishmentof
an executive office outside of theregistered address shall be effected
only with prior approval or authority of the Administration. The
approvalmaybeissueduponsubmissionofanaffidavitofundertaking
to the effect that no recruitment activity whatsoever shall be
conductedthereatandthattheagencyhasavalidcontractofleaseor
buildingownership.
Section 15. Establishment of Branch and Extension Offices. Branch
and extension offices may be established in areas approved by the
Secretary,subjecttoimplementingguidelines.
Section 16. Conduct of Recruitment Outside of Registered Office,
Branch or Extension Office. No licensed agency shall conduct any
provincial recruitment, job fairs or recruitment activities of any form
outside of the address stated in the license, acknowledged Branch or

Extension Office or without first securing prior authority from the


AdministrationoftheCenter.
Section17.RenewalofLicense.Anagencyshallsubmitanapplication
fortherenewalthereoftotheAdministration.Suchapplicationshallbe
supportedbythefollowingdocuments:
a. Proof of foreign exchange earnings issued by the Central Bank;

b.
Surety
bond
duly
renewed
or
revalidated;

c.EscrowagreementintheamountofP200,000.00withanaccredited
reputable banking corporation to primarily answer for valid and legal
claims of recruited workers as a result of recruitment violations or
money
claims;

d.Replenishmentofthecashbondincasesuchoranypartthereofis
garnished;

e.Proofoffinancialcapacitysuchasbutnotlimitedtoverifiedfinancial
statements for the past two (2) years, verified corporate or individual
tax returns with confirmation receipts, and compliance with
capitalizationrequirementsandinfusionthereofasthecasemaybe,as
certified by the Securities and Exchange Commission;

f. Summary of deployment reports during the validity of the license


sought
to
be
renewed;

g. Summary of payroll reports in case of contractors and manning


agenciesduringthevalidityofthelicensesoughttoberenewed;and

h.OtherrequirementsasmaybeimposedbytheAdministration.
Section18.NonexpirationofLicense.Wherethelicenseholderhas
madetimelyandsufficientapplicationforrenewal,theexistinglicense
shallnotexpireuntiltheapplicationshallhavebeenfinallydetermined
bytheAdministration.

Section19.ActiononRenewalofLicense.Withinthirty(30)calendar
days from receipt of the application for renewal the Administration
shall undertake evaluation and inspection and thereafter recommend
totheSecretarythegrantordenialoftheapplication.
Section 20. Failure to Renew. Any agency which fails to obtain a
renewal of its license within thirty (30) calendar days from expiration
thereof, shall be immediately deemed delisted and disallowed from
conductingrecruitmentandplacement.
Section21.DenialofRenewalofLicenses.Licensesofagencieswhich
failtoconcludearecruitmentormanningagreementand/orundertake
minimum levels of worker deployment and foreign exchange
generation or those which fail to meet the minimum operational
standards and requirements set by the Administration, shall not be
renewed.
Section22.WhentoConsiderCashBond/DepositinEscrowGarnished.
As soon as an Order of Garnishment is served upon the
Administration/Bank, andthe sameis correspondingly earmarked, the
cashbond/depositinescrowofanagencyshallnolongerbeconsidered
sufficient.TheAdministrationshallforthwithserveupontheagencya
noticetoreplenish.
Section23.ReplenishmentofCashorSuretyBonds/DepositinEscrow.
Within fifteen (15) calendar days from date of receipt of notice from
the Administration that the bonds/deposit in escrow, or any part
thereof had been garnished, the agency shall replenish the same.
Failure to replenish such bonds/deposit in escrow within the said
periodshallcausethesuspensionofthelicense.
Section 24. Refund of Cash Bond/Release of Deposit in Escrow. A
licensedagencywhichvoluntarilysurrendersitslicenseshallbeentitled
totherefundofitsdepositedcashbondandreleaseofthedepositin
escrow,onlyafterpostingasuretybondofsimilaramountvalidforfour
(4)yearsfromexpirationoflicense.
Section 25. Evaluation of Performance of Agencies. The
Administrationshallundertaketheannualevaluationandratingofthe

performance of licensed agencies to determine the merits of their


continued participation in the overseas employment program taking
intoconsiderationcompliancewithlawsandregulationsandsuchother
criteriaasitmaydeemproper.
Section 26. Classification and Ranking. The Administration may
undertaketheclassificationandrankingofagencies.Inrecognitionof
exemplary performance, it may undertakeschemes for incentives and
rewards.
2) WorkersFees,Art.32

ART. 32. Fees to be paid by workers. Any person applying with a


private feecharging employment agency for employment assistance
shallnotbechargedanyfeeuntilhehasobtainedemploymentthrough
its efforts or has actually commenced employment. Such fee shall be
always covered with the appropriate receipt clearly showing the
amount paid. The Secretary of Labor shall promulgate a schedule of
allowablefees.
3)Reports/EmploymentInformation,Arts.33,14(d)

ART.33.Reportsonemploymentstatus.Wheneverthepublicinterest
requires,theSecretaryofLabormaydirectallpersonsorentitieswithin
the coverage of this Title to submit a report on the status of
employment, including job vacancies, details of job requisitions,
separation from jobs, wages, other terms and conditions and other
employmentdata.
ART.14.Employmentpromotion.TheSecretaryofLaborshallhavethe
powerandauthority:
(d)Torequireanyperson,establishment,organizationorinstitutionto
submit such employment information as may be prescribed by the
SecretaryofLabor.
4)ProhibitedPractices,Art.34

ART. 34. Prohibited practices. It shall be unlawful for any individual,


entity,licensee,orholderofauthority:
(a)Tochargeoraccept,directlyorindirectly,anyamountgreaterthan
that specified in the schedule of allowable fees prescribed by the
SecretaryofLabor,ortomakeaworkerpayanyamountgreaterthan
thatactuallyreceivedbyhimasaloanoradvance;
(b)Tofurnishorpublishanyfalsenoticeorinformationordocumentin
relationtorecruitmentoremployment;
(c) To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing a
licenseorauthorityunderthisCode.
(d)Toinduceorattempttoinduceaworkeralreadyemployedtoquit
hisemploymentinordertoofferhimtoanotherunlessthetransferis
designedtoliberatetheworkerfromoppressivetermsandconditions
ofemployment;
(e)Toinfluenceortoattempttoinfluenceanypersonorentitynotto
employ any worker who has not applied for employment through his
agency;
(f) To engage in the recruitment or placement of workers in jobs
harmfultopublichealthormoralityortothedignityoftheRepublicof
thePhilippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of
Labororbyhisdulyauthorizedrepresentatives;
(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
requiredbytheSecretaryofLabor.
(i) To substitute or alter employment contracts approved and verified
bytheDepartmentofLaborfromthetimeofactualsigningthereofby
the parties up to and including the periods of expiration of the same
withouttheapprovaloftheSecretaryofLabor;

(j) To become an officer or member of the Board of any corporation


engagedintravelagencyortobeengageddirectlyorindirectlyinthe
managementofatravelagency;and
(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.
5)IllegalRecruitment,Art.38;Sec.6,RA8042

ART. 38. Illegal recruitment. (a) Any recruitment activities, including


the prohibited practices enumerated under Article 34 of this Code, to
be undertaken by nonlicensees or nonholders of authority, shall be
deemed illegal and punishable under Article 39 of this Code. The
DepartmentofLaborandEmploymentoranylawenforcementofficer
mayinitiatecomplaintsunderthisArticle.
(b)Illegalrecruitmentwhencommittedbyasyndicateorinlargescale
shall be considered an offense involving economic sabotage and shall
bepenalizedinaccordancewithArticle39hereof.
Illegalrecruitmentisdeemedcommittedbyasyndicateifcarriedoutby
a group of three (3) or more persons conspiring and/or confederating
with one another in carrying out any unlawful or illegal transaction,
enterprise or scheme defined under the first paragraph hereof. Illegal
recruitment is deemed committed in large scale if committed against
three(3)ormorepersonsindividuallyorasagroup.
(c) The Secretary of Labor and Employment or his duly authorized
representativesshallhavethepowertocausethearrestanddetention
ofsuchnonlicenseeornonholderofauthorityifafterinvestigationit
isdeterminedthathisactivitiesconstituteadangertonationalsecurity
andpublicorderorwillleadtofurtherexploitationofjobseekers.The
Secretaryshallorderthesearchoftheofficeorpremisesandseizureof
documents, paraphernalia, properties and other implements used in
illegal recruitment activities and the closure of companies,

establishmentsandentitiesfoundtobeengagedintherecruitmentof
workers for overseas employment, without having been licensed or
authorizedtodoso.
6)Enforcement
a) RegulatoryPower,Art.36

ART. 36. Regulatory power. The Secretary of Labor shall have the
powertorestrictandregulatetherecruitmentandplacementactivities
ofallagencieswithinthecoverageofthisTitleandisherebyauthorized
to issue orders and promulgate rules and regulations to carry out the
objectivesandimplementtheprovisionsofthisTitle.
b) RuleMakingPower,Art.36

c) VisitorialPower,Art.37

ART.37.VisitorialPower.TheSecretaryofLabororhisdulyauthorized
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
violationofanyprovisionsofthisTitle.
7)JointandSeveralLiabilityofAgentandPrincipal,POEARules,BookII,RuleII,
Sec.1(f)

Section 1. Requirements for Issuance of License. Every applicant for


license to operate a private employment agency or manning agency
shall submit a written application together with the following
requirements:
f.Averifiedundertakingstatingthattheapplicant:
(1) Shall select only medically and technically qualified recruits;

(2)Shallassumefullandcompleteresponsibilityforallclaimsandliabilities

which may arise in connection with the use of license;

(3)Shallassumejointandsolidaryliabilitywiththeemployerforallclaims
andliabilitieswhichmayariseinconnectionwiththeimplementationofthe
contract, including but not limited to payment of wages, death and
disability
compensation
and
repatriation;

(4)Shallguaranteecompliancewiththeexistinglaborandsociallegislations
ofthePhilippinesandofthecountryofemploymentofrecruitedworkers;
and

(5)Shallassumefullandcompleteresponsibilityforallactsofitsofficials,
employees and representatives done in connection with recruitment and
placement;
e. Jurisdiction

1)RTCoverCriminalActionarisingfromIllegalRecruitment,RANo.8042,Sec.
9

SEC. 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
filedincourtatthetimeoftheeffectivityofthisAct.

2)LAoverMoneyClaims,RA8042,Sec.10

SEC.10.MONEYCLAIMS.Botwithstandinganyprovisionoflawtothe
contrary, the Labor Arbiters of the National Labor Relations
Commission(NLRC)shallhavethepriginalandexclusivejurisdictionto
hear and decide, within ninety (90) calendar days after filing of the
complaint,theclaimsarisingoutofanemployeremployeerelationship
or by virtue of any law or contract involving Filipino workers for

overseasdeploymentincludingclaimsforactual,moral,exemplaryand
otherformsofdamages.
The liability of the principal/employer and the
recruitment/placementagencyforanyandallclaimsunderthissection
shall be joint and several. This provisions shall be incorporated in the
contract for overseas employment and shall be a condition precedent
for its approval. The performance bond to be filed by the
recruitment/placementagency,asprovidedbylaw,shallbeanswerable
forallmoneyclaimsordamagesthatmaybeawardedtotheworkers.If
the recruitment/placement agency is a juridical being, the corporate
officersanddirectorsandpartnersasthecasemaybe,shallthemselves
be jointly and solidarily liable with the corporation or partnership for
theaforesaidclaimsanddamages.
Such liabilities shall continue during the entire period or
durationoftheemploymentcontractandshallnotbeaffectedbyany
substitution, amendment or modification made locally or in a foreign
countryofthesaidcontract.
Anycompromise/amicablesettlementorvoluntaryagreement
onmoneyclaimsinclusiveofdamagesunderthissectionshallbepaid
within four (4) months from the approval of the settlement by the
appropriateauthority.
In case of termination of overseas employment without just,
valid or authorized cause as defined by law or contract, the workers
shall be entitled to the full reimbursement of his placement fee with
interest of twelve percent (12%) per annum, plus his salaries for the
unexpiredportionofhisemploymentcontractorforthree(3)months
foreveryyearoftheunexpiredterm,whicheverisless.
Noncompliancewiththemandatoryperiodsforresolutionsof
casesprovidedunderthissectionshallsubjecttheresponsibleofficials
toanyorallofthefollowingpenalties:
(a) The salary of any such official who fails to render his
decisionorresolutionswithintheprescribedperiodshallbe,orcaused
tobe,withhelduntilthesaidofficialcompliestherewith;
(b)Suspensionfornotmorethanninety(90)days;or

(c)Dismissalfromtheservicewithdisqualificationstoholdany
appointivepublicofficeforfive(5)years.
Provided,however,thatthepenaltieshereinprovidedshallbe
without prejudice to any liability which any such official may have
incurred under other existing laws or rules and regulations as a
consequenceofviolatingtheprovisionsofthisparagraph.

3)POEAoverAdministrativeCases

a)PreemploymentCases,OmnibusrulesImpl.RANo.8042,Sec.28(a)

Sec. 28. Jurisdiction of the POEA. The POEA shall exercise original
andexclusivejurisdictiontohearanddecide:
(a)allcases,whichareadministrativeincharacter,involvingorarisingout
ofviolationsofrulesandregulationsrelatingtolicensingandregistrationof
recruitmentandemploymentagenciesorentities;and

b)DisciplinaryCases,Sec.28(b)
(b) disciplinary action cases and other special cases, which are
administrative in character, involving employers, principals,
contractingpartnersandFilipinomigrantworkers.

3. Public Sector Agencies Employment Offices, Art. 12 (f); 14 (a); Sec. 3,


ReorganizingPOEA(EONo.247);POEARules

ART.12.Statementofobjectives.ItisthepolicyoftheState:

f)Tostrengthenthenetworkofpublicemploymentofficesandrationalize
theparticipationoftheprivatesectorintherecruitmentandplacementof
workers,locallyandoverseas,toservenationaldevelopmentobjectives;
ART. 14. Employment promotion. The Secretary of Labor shall have the
powerandauthority:
(a)Toorganizeandestablishnewemploymentofficesinadditiontothe
existing employment offices under the Department of Labor as the
needarises;

EONo.247,Sec.3.PowersandFunctions.Inthepursuitofitsmandate,the
Administrationshallhavethefollowingpowersandfunctions:
(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
monitoringtheoverseasemploymentofFilipinoworkerstakinginto
consideration their welfare and the domestic manpower
requirements;

(c)ProtecttherightsofFilipinoworkersforoverseasemploymentto
fair and equitable recruitment and employment practices and
ensure
their
welfare;

(d)Exerciseoriginalandexclusivejurisdictiontohearanddecideall
claimsarisingoutofanemployeremployeerelationshiporbyvirtue
of any law or contract involving Filipino workers for overseas
employment including the disciplinary cases; and all pre
employmentcaseswhichareadministrativeincharacterinvolvingor
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.

Allprohibitedrecruitmentactivitiesandpracticeswhicharepenalin
characterasenumeratedanddefinedunderandbyvirtueofexisting
laws,shallbeprosecutedintheregularcourtsinclosecoordination
with the appropriate Departments and agencies concerned;

(e) Maintain a registry of skills for overseas placement;

(f)Recruitandplaceworkerstoservicetherequirementsfortrained
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)PromoteandprotectthewellbeingofFilipinoworkersoverseas;

(k)Developandimplementprogramsfortheeffectivemonitoringof
returning contract workers, promoting their retraining and re
employmentortheirsmoothreintegrationintothemainstreamof
nationaleconomyincoordinationwithothergovernmentagencies;

(l) Institute a system for ensuring fair and speedy disposition of


casesinvolvingviolationorrecruitmentrulesandregulationsaswell
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
projectswiththeDepartmentofForeignAffairs,PhilippineTourism
Authority, Manila International Airport Authority, Department of
Justice,DepartmentofBudgetandManagementandotherrelevant
government entities, in the pursuit of its objectives. The
Administration shall also establish and maintain joint projects with
private organizations, domestic orforeign, in the furtherance of its
objectives.

4.

Sanctions,Arts.35,39(a)(b)(c)(d)(e);RA8042,Secs.6,7,10
ART. 35. Suspension and/or cancellation of license or authority. The
MinisterofLaborshallhavethepowertosuspendorcancelanylicense

or authority to recruit employees for overseas employment for


violation of rules and regulations issued by the Ministry of Labor, the
Overseas Employment Development Board, or for violation of the
provisionsofthisandotherapplicablelaws,GeneralOrdersandLetters
ofInstructions.

ART.39.Penalties.(a)Thepenaltyoflifeimprisonmentandafineof
OneHundredThousandPesos(P1000,000.00)shallbeimposedifillegal
recruitmentconstituteseconomicsabotageasdefinedherein;
(b) Any licensee or holder of authority found violating or causing
another to violate anyprovision of this Title or its implementing rules
and regulations shall, upon conviction thereof, suffer the penalty of
imprisonmentofnotlessthantwoyearsnormorethanfiveyearsora
fine of not less than P10,000 nor more than P50,000, or both such
imprisonmentandfine,atthediscretionofthecourt;
(c)Anypersonwhoisneitheralicenseenoraholderofauthorityunder
thisTitlefoundviolatinganyprovisionthereoforitsimplementingrules
and regulations shall, upon conviction thereof, suffer the penalty of
imprisonmentofnotlessthanfouryearsnormorethaneightyearsora
fine of not less than P20,000 nor more than P100,000 or both such
imprisonmentandfine,atthediscretionofthecourt;
(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,associationorentityresponsibleforviolation;
and if such officer is an alien, he shall, in addition to the penalties
hereinprescribed,bedeportedwithoutfurtherproceedings;
(e) In every case, conviction shall cause and carry the automatic
revocationofthelicenseorauthorityandallthepermitsandprivileges
grantedtosuchpersonorentityunderthisTitle,andtheforfeitureof
the cash and surety bonds in favor of the Overseas Employment
DevelopmentBoardortheNationalSeamenBoard,asthecasemaybe,
both of which are authorized to use the same exclusively to promote
theirobjectives.

a.

LocalEmployment,Art.39
(SEEABOVE)

b.

OverseasEmployment,Art.35;RA8042,Sec.7
(SEEABOVEFORART.35)

Sec.6.DEFINITIONS.ForpurposesofthisAct,illegalrecruitmentshallmean
any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,
procuring workers and includes referring, contact services, promising or
advertising for employment abroad, whether for profit or not, when
undertakenbyanonlicenseornonholderofauthoritycontemplatedunder
Article13(f)ofPresidentialDecreeNo.442,asamended,otherwiseknownas
the Labor Code of the Philippines. Provided, that such nonlicense or non
holder,who,inanymanner,offersorpromisesforafeeemploymentabroad
totwoormorepersonsshallbedeemedsoengaged.Itshalllikewiseinclude
the following acts, whether committed by any persons, whether a non
licensee,nonholder,licenseeorholderofauthority.
(a) To charge or accept directly or indirectly any amount greater than the
specified in the schedule of allowable fees prescribed by the Secretary of
Labor and Employment, or to make a worker pay any amount greater than
thatactuallyreceivedbyhimasaloanoradvance;
(b) To furnish or publish any false notice or information or document in
relationtorecruitmentoremployment;
(c)Togiveanyfalsenotice,testimony,informationordocumentorcommit
any act of misrepresentation for the purpose of securing a license or
authorityundertheLaborCode;
(d) To induce or attempt to induce a worker already employed to quit his
employmentinordertoofferhimanotherunlessthetransferisdesignedto
liberateaworkerfromoppressivetermsandconditionsofemployment;
(e)Toinfluenceorattempttoinfluenceanypersonsorentitynottoemploy
anyworkerwhohasnotappliedforemploymentthroughhisagency;
(f)Toengageintherecruitmentofplacementofworkersinjobsharmfulto
publichealthormoralityortodignityoftheRepublicofthePhilippines;

(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor


andEmploymentorbyhisdulyauthorizedrepresentative;
(h) To fail to submit reports on the status of employment, placement
vacancies,remittancesofforeignexchangeearnings,separationsfromjobs,
departuresandsuchothermattersorinformationasmayberequiredbythe
SecretaryofLaborandEmployment;
(i) To substitute or alter to the prejudice of the worker, employment
contracts approved and verified by the Department of Labor and
Employmentfromthetimeofactualsigningthereofbythepartiesuptoand
including the period of the expiration of the same without the approval of
theDepartmentofLaborandEmployment;
(j)Foranofficeroragentofarecruitmentorplacementagencytobecome
an officer or member of the Board of any corporation engaged in travel
agencyortobeengageddirectlyonindirectlyinthemanagementofatravel
agency;
(k) To withhold or deny travel documents from applicant workers before
departure for monetary or financial considerations other than those
authorizedundertheLaborCodeanditsimplementingrulesandregulations;
(l) Failure to actually deploy without valid reasons as determined by the
DepartmentofLaborandEmployment;and
(m) Failure to reimburse expenses incurred by the workers in connection
withhisdocumentationandprocessingforpurposesofdeployment,incases
where the deployment does not actually take place without the worker's
fault. Illegal recruitment when committed by a syndicate or in large scale
shallbeconsideredasoffenseinvolvingeconomicsabotage.
Illegal recruitment is deemed committed by a syndicate carried out by a
group of three (3) or more persons conspiring or confederating with one
another.Itisdeemedcommittedinlargescaleifcommittedagainstthree(3)
ormorepersonsindividuallyorasagroup.
The persons criminally liable for the above offenses are the principals,
accomplicesandaccessories.Incaseofjuridicalpersons,theofficershaving
control,managementordirectionoftheirbusinessshallbeliable.
SEC.7.PENALTIES
(a)Anypersonfoundguiltyofillegalrecruitmentshallsufferthepenaltyof
imprisonment of not less than six (6) years and one (1) day but not more

thantwelve(12)yearsandafinenotlessthantwohundredthousandpesos
(P200,000.00)normorethanfivehundredthousandpesos(P500,000.00).
(b)Thepenaltyoflifeimprisonmentandafineofnotlessthanfivehundred
thousand pesos (P500,000.00) nor more than one million pesos
(P1,000,000.00)shallbeimposedifillegalrecruitmentconstituteseconomic
sabotageasdefinedherein.
Provided, however, that the maximum penalty shall be imposed if the
personillegallyrecruitedislessthaneighteen(18)yearsofageorcommitted
byanonlicenseeornonholderofauthority.
SEC. 10. MONEY CLAIMS. Notwithstanding any provision of law to the
contrary, the Labor Arbiters of the National Labor Relations Commission
(NLRC) shall have the priginal and exclusive jurisdiction to hear and decide,
within ninety (90) calendar days after filing of the complaint, the claims
arisingoutofanemployeremployeerelationshiporbyvirtueofanylawor
contractinvolvingFilipinoworkersforoverseasdeploymentincludingclaims
foractual,moral,exemplaryandotherformsofdamages.
The liability of the principal/employer and the
recruitment/placementagencyforanyandallclaimsunderthissectionshall
bejointandseveral.Thisprovisionsshallbeincorporatedinthecontractfor
overseas employment and shall be a condition precedent for its approval.
Theperformancebondtobefiledbytherecruitment/placementagency,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
juridicalbeing,thecorporateofficersanddirectorsandpartnersasthecase
maybe,shallthemselvesbejointlyandsolidarilyliablewiththecorporation
orpartnershipfortheaforesaidclaimsanddamages.
Suchliabilitiesshallcontinueduringtheentireperiodordurationof
the employment contract and shall not be affected by any substitution,
amendmentormodificationmadelocallyorinaforeigncountryofthesaid
contract.
Any compromise/amicable settlement or voluntary agreement on
money claims inclusive of damages under this section shall be paid within
four (4) months from the approval of the settlement by the appropriate
authority.
Incaseofterminationofoverseasemploymentwithoutjust,validor
authorizedcauseasdefinedbylaworcontract,theworkersshallbeentitled

to the full reimbursement of his placement fee with interest of twelve


percent (12%) per annum, plus his salaries for the unexpired portion of his
employmentcontractorforthree(3)monthsforeveryyearoftheunexpired
term,whicheverisless.
Noncompliancewiththemandatoryperiodsforresolutionsofcases
providedunderthissectionshallsubjecttheresponsibleofficialstoanyorall
ofthefollowingpenalties:
(a)Thesalaryofanysuchofficialwhofailstorenderhisdecisionor
resolutionswithintheprescribedperiodshallbe,orcausedtobe,withheld
untilthesaidofficialcompliestherewith;
(b)Suspensionfornotmorethanninety(90)days;or
(c) Dismissal from the service with disqualifications to hold any
appointivepublicofficeforfive(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
violatingtheprovisionsofthisparagraph.

5. IssuesandQuestionsonOverseasEmployment

Readings:

Soriano,Ma.TeresaM.,ImplicationsofInternationalMigration,A
FocusonthePhilippineExperience,PLR,Vol20.No.2(1996)
King, Amelia M., Social and Economic Benefits and Costs, PLR, Vol. 9, No. 1
(1985).
Licuanan,PatriciaB.KatasngSaudi,acloserlook.PLRVol.9,No.1(1985).

6. TraffickinginPersons,RA9208andRulesandRegulationsImplementingRA
9208

Republic
Congress
MetroManila

of
of

Twelfth
SecondRegularSession

the
the

Philippines
Philippines
Congress

BegunheldinMetroManilaonMonday,thetwentyseconddayofJuly,two
thousandtwo
RepublicActNo.9208May26,2003
AN ACT TO INSTITUTE POLICIES TO ELIMINATE TRAFFICKING IN PERSONS
ESPECIALLY WOMEN AND CHILDREN, ESTABLISHING THE NECESSARY

INSTITUTIONAL MECHANISMS FOR THE PROTECTION AND SUPPORT OF


TRAFFICKED PERSONS, PROVIDING PENALTIES FOR ITS VIOLATIONS, AND
FOROTHER
Be it enacted by the Senate and the House of Representatives of the
PhilippinesinCongressassembled:
Section 1. Title.This Act shall beknown as the "AntiTrafficking in Persons
Actof2003".
Section2.DeclarationofPolicy.ItisherebydeclaredthattheStatevalues
thedignityofeveryhumanpersonandguaranteestherespectofindividual
rights. In pursuit of this policy, the State shall give highest priority to the
enactment of measures and development of programs that will promote
human dignity, protect the people from any threat of violence and
exploitation, eliminate trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons, not only to support
trafficked persons but more importantly, to ensure their recovery,
rehabilitationandreintegrationintothemainstreamofsociety.
It shall be a State policy to recognize the equal rights and inherent human
dignity of women and men as enshrined in the United Nations Universal
Declaration on Human Rights, United Nations Convention on the Rights of
theChild,UnitedNationsConventionontheProtectionofMigrantWorkers
and their Families. United Nations Convention Against Transnational
Organized Crime Including its Protocol to Prevent, Suppress and Punish
TraffickinginPersons,EspeciallyWomenandChildrenandallotherrelevant
and universally accepted human rights instruments and other international
conventionstowhichthePhilippinesisasignatory.
Section3.DefinitionofTerms.AsusedinthisAct:
(a) Trafficking in Persons refers to the recruitment, transportation,
transferorharboring,orreceiptofpersonswithorwithoutthevictim's
consent or knowledge, within or across national borders by means of
threat or use of force, or other forms of coercion, abduction, fraud,
deception, abuse of power or of position, taking advantage of the
vulnerability of the person, or, the giving or receiving of payments or
benefitstoachievetheconsentofapersonhavingcontroloveranother

person for the purpose of exploitation which includes at a minimum,


the exploitation or the prostitution of others or other forms of sexual
exploitation,forcedlabororservices,slavery,servitudeortheremoval
orsaleoforgans.
The recruitment, transportation, transfer, harboring or receipt of a
child for the purpose of exploitation shall also be considered as
"traffickinginpersons"evenifitdoesnotinvolveanyofthemeansset
forthintheprecedingparagraph.
(b) Child refers to a person below eighteen (18) years of age or one
whoisovereighteen(18)butisunabletofullytakecareoforprotect
himself/herself from abuse, neglect, cruelty, exploitation, or
discriminationbecauseofaphysicalormentaldisabilityorcondition.
(c) Prostitution refers to any act, transaction, scheme or design
involving the use of a person by another, for sexual intercourse or
lascivious conduct in exchange for money, profit or any other
consideration.
(d)ForcedLaborandSlaveryrefertotheextractionofworkorservices
from any person by means of enticement, violence, intimidation or
threat, use of force or coercion, including deprivation of freedom,
abuseofauthorityormoralascendancy,debtbondageordeception.
(e)SexTourismreferstoaprogramorganizedbytravelandtourism
related establishments and individuals which consists of tourism
packages or activities, utilizing and offering escort and sexual services
as enticement for tourists. This includes sexual services and practices
offeredduringrestandrecreationperiodsformembersofthemilitary.
(f) Sexual Exploitation refers to participation by a person in
prostitutionortheproductionofpornographicmaterialsasaresultof
being subjected to a threat, deception, coercion, abduction, force,
abuseofauthority,debtbondage,fraudorthroughabuseofavictim's
vulnerability.
(g) Debt Bondage refers to the pledging by the debtor of his/her
personalservicesorlabororthoseofapersonunderhis/hercontrolas
securityorpaymentforadebt,whenthelengthandnatureofservices

is not clearly defined or when the value of the services as reasonably


assessedisnotappliedtowardtheliquidationofthedebt.
(h) Pornography refers to any representation, through publication,
exhibition, cinematography, indecent shows, information technology,
orbywhatevermeans,ofapersonengagedinrealorsimulatedexplicit
sexual activities or any representation of the sexual parts of a person
forprimarilysexualpurposes.
(i) Council shall mean the InterAgency Council Against Trafficking
createdunderSection20ofthisAct.
Section4.ActsofTraffickinginPersons.Itshallbeunlawfulforanyperson,
naturalorjuridical,tocommitanyofthefollowingacts:
(a)Torecruit,transport,transfer;harbor,provide,orreceiveaperson
by any means, including those done under the pretext of domestic or
overseasemploymentortrainingorapprenticeship,forthepurposeof
prostitution, pornography, sexual exploitation, forced labor, slavery,
involuntaryservitudeordebtbondage;
(b) To introduce or match for money, profit, or material, economic or
otherconsideration,anypersonor,asprovidedforunderRepublicAct
No.6955,anyFilipinowomantoaforeignnational,formarriageforthe
purpose of acquiring, buying, offering, selling or trading him/her to
engage in prostitution, pornography, sexual exploitation, forced labor,
slavery,involuntaryservitudeordebtbondage;
(c)Toofferorcontractmarriage,realorsimulated,forthepurposeof
acquiring, buying, offering, selling, or trading them to engage in
prostitution,pornography,sexualexploitation,forcedlabororslavery,
involuntaryservitudeordebtbondage;
(d) To undertake or organize tours and travel plans consisting of
tourismpackages oractivities for the purpose of utilizing and offering
personsforprostitution,pornographyorsexualexploitation;
(e) To maintain or hire a person to engage in prostitution or
pornography;

(f) To adopt or facilitate the adoption of persons for the purpose of


prostitution, pornography, sexual exploitation, forced labor, slavery,
involuntaryservitudeordebtbondage;
(g) To recruit, hire, adopt, transport or abduct a person, by means of
threatoruseofforce,fraud,deceit,violence,coercion,orintimidation
forthepurposeofremovalorsaleoforgansofsaidperson;and
(h)Torecruit,transportoradoptachildtoengageinarmedactivitiesin
thePhilippinesorabroad.
Section 5. Acts that Promote Trafficking in Persons. The following acts
whichpromoteorfacilitatetraffickinginpersons,shallbeunlawful:
(a)Toknowinglyleaseorsublease,useorallowtobeusedanyhouse,
building or establishment for the purpose of promoting trafficking in
persons;
(b)Toproduce,printandissueordistributeunissued,tamperedorfake
counseling certificates, registration stickers and certificates of any
governmentagencywhichissuesthesecertificatesandstickersasproof
of compliance with government regulatory and predeparture
requirementsforthepurposeofpromotingtraffickinginpersons;
(c) 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
promotestraffickinginpersons;
(d)Toassistintheconductofmisrepresentationorfraudforpurposes
of facilitating the acquisition of clearances and necessary exit
documents from government agencies that are mandated to provide
predeparture registration and services for departing persons for the
purposeofpromotingtraffickinginpersons;
(e)Tofacilitate,assistorhelpintheexitandentryofpersonsfrom/to
the country at international and local airports, territorial boundaries
and seaports who are in possession of unissued, tampered or

fraudulenttraveldocumentsforthepurposeofpromotingtraffickingin
persons;
(f)Toconfiscate,conceal,ordestroythepassport,traveldocuments,or
personaldocumentsorbelongingsoftraffickedpersonsinfurtherance
of trafficking or to prevent them from leaving the country or seeking
redressfromthegovernmentorappropriateagencies;and
(g) 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,forcedlabor,orslavery.
Section6.QualifiedTraffickinginPersons.Thefollowingareconsideredas
qualifiedtrafficking:
(a)Whenthetraffickedpersonisachild;
(b) When the adoption is effected through Republic Act No. 8043,
otherwiseknownasthe"InterCountryAdoptionActof1995"andsaid
adoption is for the purpose of prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
(c) When the crime is committed by a syndicate, or in large scale.
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
againstthree(3)ormorepersons,individuallyorasagroup;
(d) When the offender is an ascendant, parent, sibling, guardian or a
personwhoexercisesauthorityoverthetraffickedpersonorwhenthe
offenseiscommittedbyapublicofficeroremployee;
(e) When the trafficked person is recruited to engage in prostitution
withanymemberofthemilitaryorlawenforcementagencies;
(f)Whentheoffenderisamemberofthemilitaryorlawenforcement
agencies;and

(g)Whenbyreasonoronoccasionoftheactoftraffickinginpersons,
the offended party dies, becomes insane, suffers mutilation or is
afflicted with Human Immunodeficiency Virus (HIV) or the Acquired
ImmuneDeficiencySyndrome(AIDS).
Section6.Confidentiality.Atanystageoftheinvestigation,prosecutionand
trial of an offense under this Act, law enforcement officers, prosecutors,
judges, court personnel and medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the trafficked person and the
accused.Towardsthisend,lawenforcementofficers,prosecutorsandjudges
to whom the complaint has been referred may, whenever necessary to
ensure a fair and impartial proceeding, and after considering all
circumstances for the best interest of the parties, order a closeddoor
investigation, prosecutionortrial.The name and personal circumstances of
thetraffickedpersonoroftheaccused,oranyotherinformationtendingto
establishtheiridentitiesandsuchcircumstancesorinformationshallnotbe
disclosedtothepublic.
Incaseswhenprosecutionortrialisconductedbehindcloseddoors,itshall
be unlawful for any editor, publisher, and reporter or columnist in case of
printed materials, announcer or producer in case of television and radio,
produceranddirectorofafilmincaseofthemovieindustry,oranyperson
utilizing trimedia facilities or information technology to cause publicity of
anycaseoftraffickinginpersons.
Section8.ProsecutionofCases.Anypersonwhohaspersonalknowledgeof
the commission of any offense under this Act, the trafficked person, the
parents,spouse,siblings,childrenorlegalguardianmayfileacomplaintfor
trafficking.
Section9.Venue.AcriminalactionarisingfromviolationofthisActshallbe
filed where the offense was committed, or where any of its elements
occurred,orwherethetraffickedpersonactuallyresidesatthetimeofthe
commission of the offense: Provided, That the court where the criminal
actionisfirstfiledshallacquirejurisdictiontotheexclusionofothercourts.
Section10.PenaltiesandSanctions.Thefollowingpenaltiesandsanctions
areherebyestablishedfortheoffensesenumeratedinthisAct:

(a)Anypersonfoundguiltyofcommittinganyoftheactsenumerated
in Section 4 shall suffer the penalty of imprisonment of twenty (20)
yearsandafineofnotlessthanOnemillionpesos(P1,000,000.00)but
notmorethanTwomillionpesos(P2,000,000.00);
(b)Anypersonfoundguiltyofcommittinganyoftheactsenumerated
in Section 5 shall suffer the penalty of imprisonment of fifteen (15)
years and a fine of not less than Five hundred thousand pesos
(P500,000.00)butnotmorethanOnemillionpesos(P1,000,000.00);
(c)AnypersonfoundguiltyofqualifiedtraffickingunderSection6shall
sufferthepenaltyoflifeimprisonmentandafineofnotlessthanTwo
million pesos (P2,000,000.00) but not more than Five million pesos
(P5,000,000.00);
(d)AnypersonwhoviolatesSection7hereofshallsufferthepenaltyof
imprisonmentofsix(6)yearsandafineofnotlessthanFivehundred
thousand pesos (P500,000.00) but not more than One million pesos
(P1,000,000.00);
(e) If the offender is a corporation, partnership, association, club,
establishment or any juridical person, the penalty shall be imposed
upon the owner, president, partner, manager, and/or any responsible
officer who participated in the commission of the crime or who shall
haveknowinglypermittedorfailedtopreventitscommission;
(f)TheregistrationwiththeSecuritiesandExchangeCommission(SEC)
and license to operate of the erring agency, corporation, association,
religiousgroup,tourortravelagent,cluborestablishment,oranyplace
of entertainment shall be cancelled and revoked permanently. The
owner, president, partner or manager thereof shall not be allowed to
operatesimilarestablishmentsinadifferentname;
(g)Iftheoffenderisaforeigner,heshallbeimmediatelydeportedafter
serving his sentence and be barred permanently from entering the
country;
(h)Anyemployeeorofficialofgovernmentagencieswhoshallissueor
approve the issuance of travel exit clearances, passports, registration
certificates,counselingcertificates,marriagelicense,andothersimilar

documents to persons, whether juridical or natural, recruitment


agencies, establishments or other individuals or groups, who fail to
observe the prescribed procedures and the requirement as provided
forbylaws,rulesandregulations,shallbeheldadministrativelyliable,
without prejudice to criminal liability under this Act. The concerned
government official or employee shall, upon conviction, be dismissed
from the service and be barred permanently to hold public office.
His/herretirementandotherbenefitsshalllikewisebeforfeited;and
(i) Conviction by final judgment of the adopter for any offense under
this Act shall result in the immediate rescission of the decree of
adoption.
Section11.UseofTraffickedPersons.Anypersonwhobuysorengagesthe
servicesoftraffickedpersonsforprostitutionshallbepenalizedasfollows:
(a) First offense six (6) months of community service as may be
determined by the court and a fine of Fifty thousand pesos
(P50,000.00);and
(b)Secondandsubsequentoffensesimprisonmentofone(1)yearand
afineofOnehundredthousandpesos(P100,000.00).
Section 12. Prescriptive Period. Trafficking cases under this Act shall
prescribe in ten (10) years: Provided, however, That trafficking cases
committedbyasyndicateorinalargescaleasdefinedunderSection6shall
prescribeintwenty(20)years.
The prescriptive period shall commence to run from the day on which the
traffickedpersonisdeliveredorreleasedfromtheconditionsofbondageand
shall be interrupted by the filing of the complaint or information and shall
commence to run again when such proceedings terminate without the
accused being convicted or acquitted or are unjustifiably stopped for any
reasonnotimputabletotheaccused.
Section 13. Exemption from Filing Fees. When the trafficked person
institutes a separate civil action for the recovery of civil damages, he/she
shallbeexemptfromthepaymentoffilingfees.

Section 14. Confiscation and Forfeiture of the Proceeds and Instruments


DerivedfromTraffickinginPersons.Inadditiontothepenaltyimposedfor
theviolationofthisAct,thecourtshallordertheconfiscationandforfeiture,
infavorofthegovernment,ofalltheproceedsandpropertiesderivedfrom
thecommissionofthecrime,unlesstheyarethepropertyofathirdperson
not liable for the unlawful act; Provided, however, That all awards for
damages shall be taken from the personal and separate properties of the
offender; Provided, further, That if such properties are insufficient, the
balanceshallbetakenfromtheconfiscatedandforfeitedproperties.
When the proceeds, properties and instruments of the offense have been
destroyed,diminishedinvalueorotherwiserenderedworthlessbyanyactor
omission, directly or indirectly, of the offender, or it has been concealed,
removed,convertedortransferredtopreventthesamefrombeingfoundor
toavoidforfeitureorconfiscation,theoffendershallbeorderedtopaythe
amount equal to the value of the proceeds, property or instrumentsof the
offense.
Section15.TrustFund.AllfinesimposedunderthisActandtheproceeds
andpropertiesforfeitedandconfiscatedpursuanttoSection14hereofshall
accruetoaTrustFundtobeadministeredandmanagedbytheCounciltobe
usedexclusivelyforprogramsthatwillpreventactsoftraffickingandprotect,
rehabilitate, reintegrate trafficked persons into the mainstream of society.
Suchprogramsshallinclude,butnotlimitedto,thefollowing:
(a)ProvisionformandatoryservicessetforthinSection23ofthisAct;
(b) Sponsorship of a national research program on trafficking and
establishmentofadatacollectionsystemformonitoringandevaluation
purposes;
(c) Provision of necessary technical and material support services to
appropriate government agencies and nongovernment organizations
(NGOs);
(d) Sponsorship of conferences and seminars to provide venue for
consensus building amongst the public, the academe, government,
NGOsandinternationalorganizations;and
(e)Promotionofinformationandeducationcampaignontrafficking.

Section16.ProgramsthatAddressTraffickinginPersons.Thegovernment
shall establish and implement preventive, protective and rehabilitative
programsfortraffickedpersons.Forthispurpose,thefollowingagenciesare
herebymandatedtoimplementthefollowingprograms;
(a) Department of Foreign Affairs (DFA) shall make available its
resources and facilities overseas for trafficked persons regardless of
their manner of entry to the receiving country, and explore means to
further enhance its assistance in eliminating trafficking activities
through closer networking with government agencies in the country
and overseas, particularly in the formulation of policies and
implementationofrelevantprograms.
TheDFAshalltakenecessarymeasuresfortheefficientimplementation
oftheMachineReadablePassportstoprotecttheintegrityofPhilippine
passports,visasandothertraveldocumentstoreducetheincidenceof
traffickingthroughtheuseoffraudulentidentificationdocuments.
It shall establish and implement a premarriage, onsite and pre
departurecounselingprogramonintermarriages.
(b) Department of Social Welfare and Development (DSWD) shall
implement rehabilitative and protective programs for trafficked
persons.Itshallprovidecounselingandtemporarysheltertotrafficked
persons and develop a system for accreditation among NGOs for
purposes of establishing centers and programs for intervention in
variouslevelsofthecommunity.
(c) Department of Labor and Employment (DOLE) shall ensure the
strict implementation and compliance with the rules and guidelines
relative to the employment of persons locally and overseas. It shall
likewise monitor, document and report cases of trafficking in persons
involvingemployersandlaborrecruiters.
(d) Department of Justice (DOJ) shall ensure the prosecution of
persons accused of trafficking and designate and train special
prosecutorswhoshallhandleandprosecutecasesoftrafficking.Itshall
also establish a mechanism for free legal assistance for trafficked

persons, in coordination with the DSWD, Integrated Bar of the


Philippines(IBP)andotherNGOsandvolunteergroups.
(e)NationalCommissionontheRoleofFilipinoWomen(NCRFW)shall
actively participate and coordinate in the formulation and monitoring
ofpoliciesaddressingtheissueoftraffickinginpersonsincoordination
with relevant government agencies. It shall likewise advocate for the
inclusion of the issue of trafficking in persons in both its local and
internationaladvocacyforwomen'sissues.
(f) Bureau of Immigration (BI) shall strictly administer and enforce
immigrationandalienadministrationlaws.Itshalladoptmeasuresfor
the apprehension of suspected traffickers both at the place of arrival
and departure and shall ensure compliance by the Filipino
fiancs/fiancesandspousesofforeignnationalswiththeguidanceand
counselingrequirementasprovidedforinthisAct.
(g) Philippine National Police (PNP) shall be the primary law
enforcementagencytoundertakesurveillance,investigationandarrest
ofindividualsorpersonssuspectedtobeengagedintrafficking.Itshall
closely coordinate with various law enforcement agencies to secure
concerted efforts for effective investigation and apprehension of
suspected traffickers. It shall also establish a system to receive
complaints and calls to assist trafficked persons and conduct rescue
operations.
(h) Philippine Overseas Employment Administration (POEA) shall
implementaneffectivepreemploymentorientationseminarsandpre
departurecounselingprogramstoapplicantsforoverseasemployment.
Itshalllikewiseformulateasystemofprovidingfreelegalassistanceto
traffickedpersons.
(i) Department of the Interior and Local Government (DILG) shall
institute a systematic information and prevention campaign and
likewise maintain a databank for the effective monitoring,
documentationandprosecutionofcasesontraffickinginpersons.
(j)Localgovernmentunits(LGUs)shallmonitoranddocumentcasesof
trafficking in persons in their areas of jurisdiction, effect the

cancellation of licenses of establishments which violate the provisions


of this Act and ensure effective prosecution of such cases. They shall
also undertake an information campaign against trafficking in persons
through the establishment of the Migrants Advisory and Information
Network (MAIN) desks in municipalities or provinces in coordination
withDILG,PhilippineInformationAgency(PIA),CommissiononFilipinos
Overseas (CFO), NGOs and other concerned agencies. They shall
encourageandsupportcommunitybasedinitiativeswhichaddressthe
traffickinginpersons.
In implementing this Act, the agencies concernedmay seek and enlist
theassistanceofNGOs,people'sorganizations(Pos),civicorganizations
andothervolunteergroups.
Section17.LegalProtectiontoTraffickedPersons.Traffickedpersonsshall
berecognizedasvictimsoftheactoractsoftraffickingandassuchshallnot
bepenalizedforcrimesdirectlyrelatedtotheactsoftraffickingenumerated
in this Act or in obedience to the order made by the trafficker in relation
thereto. In this regard, the consent of a trafficked person to the intended
exploitationsetforthinthisActshallbeirrelevant.
Section18.PreferentialEntitlementUndertheWitnessProtectionProgram.
AnyprovisionofRepublicActNo.6981tothecontrarynotwithstanding,any
trafficked person shall be entitled to the witness protection program
providedtherein.
Section 19. Trafficked Persons Who are Foreign Nationals. Subject to the
guidelinesissuedbytheCouncil,traffickedpersonsinthePhilippineswhoare
nationalsofaforeigncountryshallalsobeentitledtoappropriateprotection,
assistance and services available to trafficked persons under this Act:
Provided,ThattheyshallbepermittedcontinuedpresenceinthePhilippines
for a length of time prescribed by the Council as necessary to effect the
prosecutionofoffenders.
Section 20. InterAgency Council Against Trafficking. There is hereby
established an InterAgency Council Against Trafficking, to be composed of
theSecretaryoftheDepartmentofJusticeasChairpersonandtheSecretary
of the Department of Social Welfare and Development as CoChairperson
andshallhavethefollowingasmembers:

(a)Secretary,DepartmentofForeignAffairs;
(b)Secretary,DepartmentofLaborandEmployment;
(c)Administrator,PhilippineOverseasEmploymentAdministration;
(d)Commissioner,BureauofImmigration;
(e)DirectorGeneral,PhilippineNationalPolice;
(f) Chairperson, National Commission on the Role of Filipino Women;
and
(g)Three(3)representativesfromNGOs,whoshallbecomposedofone
(1) representative each from among the sectors representing women,
overseasFilipinoworkers(OFWs)andchildren,withaprovenrecordof
involvementinthepreventionandsuppressionoftraffickinginpersons.
These representatives shall be nominated by the government agency
representativesoftheCouncil,forappointmentbythePresidentfora
termofthree(3)years.
The members of the Council may designate their permanent
representatives who shall have a rank not lower than an assistant
secretary or its equivalent to meetings, and shall receive emoluments
as may be determined by the Council in accordance with existing
budgetandaccounting,rulesandregulations.
Section 21. Functions of the Council. The Council shall have the following
powersandfunctions:
(a)Formulateacomprehensiveandintegratedprogramtopreventand
suppressthetraffickinginpersons;
(b) Promulgate rules and regulations as may be necessary for the
effectiveimplementationofthisAct;
(c)MonitorandoverseethestrictimplementationofthisAct;
(d) Coordinate the programs and projects of the various member
agencies to effectively address the issues and problems attendant to
traffickinginpersons;

(e) Coordinate the conduct of massive information dissemination and


campaign on the existence of the law and the various issues and
problems attendant to trafficking through the LGUs, concerned
agencies,andNGOs;
(f) Direct other agencies to immediately respond to the problems
broughttotheirattentionandreporttotheCouncilonactiontaken;
(g) Assist in filing of cases against individuals, agencies, institutions or
establishmentsthatviolatetheprovisionsofthisAct;
(h) Formulate a program for the reintegration of trafficked persons in
cooperation with DOLE, DSWD, Technical Education and Skills
Development Authority (TESDA), Commission on Higher Education
(CHED),LGUsandNGOs;
(i) Secure from any department, bureau, office, agency, or
instrumentality of the government or from NGOs and other civic
organizations such assistance as may be needed to effectively
implementthisAct;
(j) Complement the shared government information system for
migrationestablishedunderRepublicActNo.8042,otherwiseknownas
the"MigrantWorkersandOverseasFilipinosActof1995"withdataon
cases of trafficking in persons, and ensure that the proper agencies
conductacontinuingresearchandstudyonthepatternsandschemeof
traffickinginpersonswhichshallformthebasisforpolicyformulation
andprogramdirection;
(k) Develop the mechanism to ensure the timely, coordinated, and
effectiveresponsetocasesoftraffickinginpersons;
(l) Recommend measures to enhance cooperative efforts and mutual
assistance among foreign countries through bilateral and/or
multilateral arrangements to prevent and suppress international
traffickinginpersons;
(m) Coordinate with the Department of Transportation and
Communications(DOTC),DepartmentofTradeandIndustry(DTI),and

other NGOs in monitoring the promotion of advertisement of


traffickingintheinternet;
(n) Adopt measures and policies to protect the rights and needs of
traffickedpersonswhoareforeignnationalsinthePhilippines;
(o)Initiatetrainingprogramsinidentifyingandprovidingthenecessary
interventionorassistancetotraffickedpersons;and
(p)Exerciseallthepowersandperformsuchotherfunctionsnecessary
toattainthepurposesandobjectivesofthisAct.
Section 22. Secretariat to the Council. The Department of Justice shall
establishthenecessarySecretariatfortheCouncil.
Section23.MandatoryServicestoTraffickedPersons.Toensurerecovery,
rehabilitation and reintegration into the mainstream of society, concerned
governmentagenciesshallmakeavailablethefollowingservicestotrafficked
persons:
(a)Emergencyshelterorappropriatehousing;
(b)Counseling;
(c)Freelegalserviceswhichshallincludeinformationaboutthevictims'
rights and the procedure for filing complaints, claiming compensation
and such other legal remedies available to them, in a language
understoodbythetraffickedperson;
(d)Medicalorpsychologicalservices;
(e)Livelihoodandskillstraining;and
(f)Educationalassistancetoatraffickedchild.
Sustained supervision and follow through mechanism that will track the
progress of recovery, rehabilitation and reintegration of the trafficked
personsshallbeadoptedandcarriedout.
Section24.OtherServicesforTraffickedPersons.

(a)LegalAssistance.Traffickedpersonsshallbeconsideredunderthe
category "Overseas Filipino in Distress" and may avail of the legal
assistancecreatedbyRepublicActNo.8042,subjecttotheguidelines
asprovidedbylaw.
(b) Overseas Filipino Resource Centers. The services available to
overseasFilipinosasprovidedforbyRepublicActNo.8042shallalsobe
extendedtotraffickedpersonsregardlessoftheirimmigrationstatusin
thehostcountry.
(c) The Country Team Approach. The country team approach under
ExecutiveOrderNo.74of1993,shallbetheoperationalschemeunder
which Philippine embassies abroad shall provide protection to
traffickedpersonsinsofarasthepromotionoftheirwelfare,dignityand
fundamentalrightsareconcerned.
Section 25. Repatriation of Trafficked Persons. The DFA, in coordination
with DOLE and other appropriate agencies, shall have the primary
responsibility for the repatriation of trafficked persons, regardless of
whethertheyaredocumentedorundocumented.
If, however, the repatriation of the trafficked persons shall expose the
victims to greater risks, the DFA shall make representation with the host
government for the extension of appropriate residency permits and
protection,asmaybelegallypermissibleinthehostcountry.
Section 26. Extradition.The DOJ,inconsultation with DFA,shallendeavor
toincludeoffensesoftraffickinginpersonsamongextraditableoffenses.
Section 27. Reporting Requirements. The Council shall submit to the
PresidentofthePhilippinesandtoCongressanannualreportofthepolicies,
programsandactivitiesrelativetotheimplementationofthisAct.
Section28.Funding.Theheadsofthedepartmentsandagenciesconcerned
shall immediately include in their programs and issue such rules and
regulations to implement the provisions of this Act, the funding of which
shallbeincludedintheannualGeneralAppropriationsAct.

Section 29. Implementing Rules and Regulations. The Council shall


promulgate the necessary implementing rules and regulations within sixty
(60)daysfromtheeffectivityofthisAct.
Section30.NonrestrictionofFreedomofSpeechandofAssociation,Religion
and the Right to Travel. Nothing in this Act shall be interpreted as a
restrictionofthefreedomofspeechandofassociation,religionandtheright
totravelforpurposesnotcontrarytolawasguaranteedbytheConstitution.
Section31.SeparabilityClause.If,foranyreason,anysectionorprovision
ofthisActisheldunconstitutionalorinvalid,theothersectionsorprovisions
hereofshallnotbeaffectedthereby.
Section 32. Repealing clause. All laws, presidential decrees, executive
orders and rules and regulations, or parts thereof, inconsistent with the
provisionsofthisActareherebyrepealedormodifiedaccordingly:Provided,
ThatthisActshallnotinanywayamendorrepealtheprovisionofRepublic
ActNo.7610,otherwiseknownasthe"SpecialProtectionofChildrenAgainst
ChildAbuse,ExploitationandDiscriminationAct".
Section33.Effectivity.ThisActshalltakeeffectfifteen(15)daysfromthe
date of its complete publication in at least two (2) newspapers of general
circulation.
RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9208,
OTHERWISEKNOWNASTHEANTITRAFFICKINGINPERSONSACTOF2003
Pursuant to the authority of the InterAgency Council Against Trafficking
(IACAT) underSection29ofRepublicActNo.9208 otherwiseknownasthe
AntiTraffickinginPersonsActof2003,thefollowing
rulesandregulationsareherebypromulgatedtoimplementtheprovisionsof
saidAct:

ArticleI
GENERALPROVISIONS
Sec. 1. Title. These rules and regulations shall be known and cited as The
Rules and Regulations Implementing the AntiTrafficking in Persons Act of
2003.

Sec. 2. Purpose. These rules and regulations are hereby promulgated to


institute policies, establish the institutional mechanism for the support and
protectionoftraffickedpersonsandprescribetheproceduresandguidelines
for the implementation of Republic Act No. 9208 in order to facilitate
compliancetherewithandachievetheobjectivesthereof.

Sec. 3. Declaration of State Policy. The State values the dignity of every
humanpersonandguaranteestherespectforindividualrights.Towardsthis
end, the State shall give the highest priority to the enactment of measures
anddevelopmentofprogramsthatwillpromotehumandignity,protectthe
peoplefromanythreatofviolenceandexploitation,eliminatetraffickingin
persons, and mitigate pressures for involuntary migration and servitude of
persons, not only to support trafficked persons but more importantly, to
ensure
their recovery, rehabilitation and reintegration into the mainstream of
society.

The State also recognizes the equal rights and inherent human dignity of
women and men, as well as the rights of children, as enshrined and
guaranteedinthefollowinginternationalinstruments:
(i) UniversalDeclarationonHumanRights;
(ii) Convention for the Suppression of the Traffic in Persons and
ExploitationoftheProstitutionofOthers;
(iii) ConventionontheEliminationofAllFormsofDiscriminationAgainst
Women;
(iv) ConventionontheRightsoftheChildanditsOptionalProtocols;
(v) Convention on the Protection of Migrant Workers and Members of
theirFamilies;
(vi) Convention Against Transnational OrganizedCrimes including its
Protocol to Prevent,Suppress and Punish Trafficking in Persons,
EspeciallyWomenandChildren;
(vii) ILOConventionNo.182(ConventionConcerningtheProhibitionand
Immediate Action for the Elimination of the Worst Forms of Child
Labor);and
(viii) Allotherrelevantanduniversallyacceptedhumanrightsinstruments
and other international conventions to which the Philippines is a
State Party. In all actions concerning children, their best interests
shallbetheparamountconsideration.

Sec.4.Construction.Theserulesandregulationsshallbeliberallyconstrued
in favor of the trafficked persons to promote their human dignity; ensure
their recovery, rehabilitation and reintegration into the mainstream of
society; eliminate trafficking in persons; and achieve the objectives of the
Act.

ArticleII
DEFINITIONOFTERMS
Sec.5.DefinitionofTerms.Asusedintheserulesandregulations,unlessthe
context otherwise requires, the following terms shall be understood to
mean:

(a)ActreferstoRepublicActNo.9208,otherwise
knownastheAntiTraffickinginPersonsActof2003;

(b) Council refers to the InterAgency Council Against Trafficking (IACAT)


createdunderSection20oftheAct;

(c) Trafficking in Persons refers to the recruitment, transportation,


transfer or harboring, or receipt of persons, with or without the victims
consentorknowledge,withinoracrossnationalbordersbymeansofthreat
or use of force, or other forms of coercion, abduction, fraud, deception,
abuse of power or of position, taking advantage of the vulnerability of the
person,or,thegivingorreceivingofpaymentsorbenefitsto
achievetheconsentofapersonhavingcontroloveranotherpersonforthe
purposeofexploitationwhichincludesataminimum,theexploitationorthe
prostitution of others or other formsof sexual exploitation, forced labor or
services,slavery,servitudeortheremovalorsaleoforgans.

Therecruitment,transportation,transfer,harboringorreceiptofachildfor
thepurposeofexploitation
shallalsobeconsideredastraffickinginpersonsevenifitdoesnotinvolve
anyofthemeanssetforthintheprecedingparagraph.

(d)Childreferstoapersonbeloweighteen(18)yearsofageoronewhois
over eighteen (18) but is unable to fully take care of or protect

himself/herself from abuse, neglect, cruelty, exploitation, or discrimination


becauseofaphysicalormentaldisabilityorcondition;

(e)Prostitutionreferstoanyact,transaction,schemeordesigninvolving
theuseofapersonbyanother,forsexualintercourseorlasciviousconductin
exchangeformoney,profitoranyotherconsideration;

(f) Forced Labor and Slavery refer to the extraction of work or services
from any person by means of enticement, violence, intimidation or threat,
useofforceorcoercion,includingdeprivationoffreedom,abuseofauthority
ormoralascendancy,debtbondageordeception;

(g) Sex Tourism refers to a program organized by travel and tourism


relatedestablishmentsandindividualswhichconsistsoftourismpackagesor
activities,utilizingandofferingescortandsexualservicesasenticementfor
tourists. This includes sexual services and practices offered during rest and
recreationperiodsformembersofthemilitary;

(h)SexualExploitationreferstoparticipationbyapersoninprostitutionor
theproductionofpornographic
materials as a result of being subjected to a threat, deception, coercion,
abduction,force,abuseofauthority,debtbondage,fraudorthroughabuse
ofavictimsvulnerability;

(i)DebtBondagereferstothepledgingbythedebtorofhis/herpersonal
services or labor or those of a person under his/her control as security or
payment for a debt, when the length and nature of services is not clearly
defined or when the value of the services as reasonably assessed is not
appliedtowardtheliquidationofthedebt;

(j) Pornography refers to any representation, through publication,


exhibition,cinematography,indecent
shows,informationtechnology,orbywhatevermeans,ofapersonengaged
in real or simulated explicit sexual activities or any representation of the
sexualpartsofapersonprimarilyforsexualpurposes;and

(k) Involuntary Servitude refers to a condition of enforced, compulsory


serviceinducedbymeansofanyscheme,planorpattern,intendedtocause

apersontobelievethat,ifthepersondidnotenterintoorcontinueinsuch
condition,thatpersonoranotherpersonwouldsufferseriousharmorother
formsofabuseorphysicalrestraint,ortheabuseorthreatenedabuseofthe
legalprocess.

ArticleIII
THEINTERAGENCYCOUNCIL
AGAINSTTRAFFICKING(IACAT)

Sec.6.Creation.TheInterAgencyCouncilAgainstTrafficking(IACAT)shallbe
established which shall be primarily tasked to coordinate, monitor and
overseetheimplementationoftheAct.

Sec.7.Composition.TheCouncilshallbecomposedofthefollowing:

(a)Secretary,DepartmentofJustice(DOJ)asChairperson;
(b)Secretary,DepartmentofSocialWelfareandDevelopment(DSWD)asCo
Chairperson;
(c)Secretary,DepartmentofForeignAffairs(DFA)asMember;
(d)Secretary,DepartmentofLaborandEmployment
(DOLE)asMember;
(e)Administrator,PhilippineOverseasEmployment
Administration(POEA)asMember;
(f)Commissioner,BureauofImmigration(BI)asMember;
(g)DirectorGeneral,PhilippineNationalPolice(PNP)asMember;
(h) Chairperson, National Commission on the Role of Filipino Women
(NCRFW)asMember;
(i) One (1) representative from an NGO representingthe women sector as
Member;
(j) One (1) representative from an NGO representing he Overseas Filipino
Workers(OFWs)sectorasMember;and
(k) One (1) representative from an NGO representing he children sector as
Member.

ThemembersoftheCouncilmaydesignatetheirpermanentrepresentatives
whoshallhavearanknotlowerthananAssistantSecretaryoritsequivalent
toattendthemeetingsoftheCouncil.

Sec. 8. Qualifications, Selection and Appointment of NGO and its


Representatives. The NGOs, with national and international networks, and
its representatives to the Council must have a proven track record of
involvementinthepreventionandsuppressionoftraffickinginpersons.They
shallbenominatedbyany
of the government agency representatives of the Council and shall be
selectedbymajorityvotethereofandendorsedtothePresident.Theyshall
beappointedbythePresidentforatermofthree(3)years.

Sec.9.FunctionsoftheCouncil.TheCouncilshallhavethefollowingpowers
andfunctions:

(a) Formulate a comprehensive and integrated program to prevent and


suppressthetraffickinginpersons;
(b) Promulgate rules and regulations as may be necessary for the effective
implementationoftheAct;
(c)MonitorandoverseethestrictimplementationoftheAct;
(d)Coordinatetheprogramsandprojectsofthevariousmemberagenciesto
effectively address the issues and problems attendant to trafficking in
persons;
(e) Coordinate the conduct of massive information dissemination and
campaign on the existence of the law and the various issues and problems
attendant to trafficking through the local government units (LGUs),
concernedagencies,andNGOs;
(f)Directotheragenciestoimmediatelyrespondtotheproblemsbroughtto
theirattentionandreporttotheCouncilonactiontaken;
(g) Assist in filing of cases against individuals, agencies, institutions or
establishmentsthatviolatethe
provisionsoftheAct;
(h) Formulate a program for the reintegration of trafficked persons in
cooperationwithDOLE,DSWD,TechnicalEducationandSkillsDevelopment
Authority(TESDA),CommissiononHigherEducation(CHED),LGUsandNGOs;
(i)Securefromanydepartment,bureau,office,agency,orinstrumentalityof
thegovernmentorfromNGOs
andothercivicorganizationssuchassistanceasmaybeneededtoeffectively
implementtheAct;
(j) Complement the shared government information system for migration
establishedunderRepublicActNo.8042,otherwiseknownastheMigrant

WorkersandOverseasFilipinosActof1995withdataoncasesoftrafficking
in persons, and ensure that the proper agencies conduct a continuing
research and study on the patterns and scheme of trafficking in persons
whichshallformthebasisforpolicyformulationandprogramdirection;
(k) Develop the mechanism to ensure the timely coordinated and effective
responsetocasesoftraffickingin
persons;
(l) Recommend measures to enhance cooperative efforts and mutual
assistance among foreign countries through bilateral and/or multilateral
arrangementstopreventandsuppressinternationaltraffickinginpersons;
(m)CoordinatewiththeDepartmentofTransportationandCommunications
(DOTC), Department of Trade and Industry (DTI), and other NGOs in
monitoringthepromotionofadvertisementoftraffickingintheInternet;
(n)Adoptmeasuresandpoliciestoprotecttherightsandneedsoftrafficked
personswhoareforeignnationalsinthePhilippines;
(o) Initiate training programs in identifying and roviding the necessary
interventionorassistancetotrafficked
persons;and
(p) Exercise all the powers and perform such other functions necessary to
attainthepurposesandobjectivesoftheAct.

Sec.10.ReportorialFunction.Withinsixty(60)daysaftertheclosingofeach
calendar year, the Council shall submit to the Office of the President a
comprehensivereportontheactionsandprograms
taken by the Council relative to and concerning the implementation of the
Act.

Sec. 11. Meetings of the Council. The Council shall meet regularly at least
once a month. Special meetings may be called by the Chair as the need
arises.MajorityofthemembersoftheCouncil
shallconstituteaquorumtotransactbusiness.

Sec. 12. Honoraria or Emoluments. The Members of the Council or their


designated permanent representatives shall receive honoraria or
emolumentsasmaybedeterminedbytheCouncilin
accordancewithexistingbudgetandaccountingrulesandregulations.

Sec. 13. Implementation of the Law at SubNational and Local Levels. The
Council shall, as far as practicable, develop mechanisms to ensure the
implementation of the law and these rules and regulations at the sub
nationalandlocallevels

ArticleIV
SECRETARIAT

SEC.14.Organization.TheDepartmentofJusticeshallestablishaSecretariat
to assist the Council in the performance of its functions. The Secretary of
Justice shall determine the organizational structure and staffing pattern of
theSecretariat.

Sec.15.Functions.TheSecretariatshallhavethefollowingfunctions:
(a) Coordinate and monitor, under the direction of the Council, the
implementationofthepoliciesandguidelinespromulgatedbytheCouncil;
(b) Establish, maintain and manage a central database on trafficking in
persons;
(c)Providesecretariat,recordskeepingandotherservicestotheCouncil;and
(d)PerformsuchotherfunctionsasmaybedirectedbytheCouncil.

ArticleV
ROLESANDRESPONSIBILITIES

Sec.16.CommonRolesandResponsibilitiesofCouncilMemberAgencies.All
member government agencies of the Council shall have the following
commonrolesandresponsibilities:
(a) Develop policies and programs supportive of and consistent with the
objectivesoftheAct;
(b)Enhancethecapabilityofitsofficersandpersonnelinvolvedintrafficking
issues and concerns through appropriate training and staff support
programs;
(c) Undertake information, education and advocacy campaigns against
traffickinginpersons;
(d) Maintain a databank on trafficking in persons to be shared among
relevantagenciesandcomplementthecentraldatabanktobeestablishedby
theCouncil;and

(e) Document good practices as bases for policy formulation and program
development.

Sec. 17. Specific Roles and Responsibilities of National Government


Agencies which are Members of the Council. The following national
governmentagencies,whicharememberagenciesoftheCouncil,shallhave,
butnotlimitedto,thefollowingrolesandresponsibilitiesintheprevention
andsuppressionoftraffickinginpersons:

(a)DepartmentofJustice(DOJ)

(i)EnsuretheprosecutionofpersonsforviolationsoftheAct;
(ii)Designateandtrainspecialprosecutorswho
shallinvestigateandprosecutecasesoftrafficking;
(iii)Establishamechanismforfreelegalassistancefortraffickedpersons,in
coordination with the DSWD, Commission on Human Rights (CHR),
IntegratedBarofthePhilippines(IBP)andotherNGOsandvolunteergroups;
(iv)Provide,witnessprotectiontotraffickedvictimsandtheirwitnesses;
(v)Conducttrainingandcontinuingeducationprogramoninvestigationand
prosecutionfortraffickingin
persons and other related offenses for prosecutors and law enforcement
officers;
(vi) Receive, evaluate, process and investigate claims for compensation by
trafficked victims, when applicable, pursuant to Republic Act No. 7309
(VictimsCompensation
Act);
(vii) Review and recommend policies and measures to enhance protection
againsttraffickinginpersons;
(viii)Recommendthenegotiationofmutuallegalassistanceandextradition
treatieswithothercountriesin
coordinationwiththeDFA;and
(ix) Coordinate with and/or provide assistance to the AntiMoney
LaunderingCouncil(AMLC)oncasesof
traffickinginpersonswithpossiblemoneylaunderingunderpinnings.

(b)DepartmentofSocialWelfareandDevelopment(DSWD)

(i) Provide psychosocial counseling, temporary shelter and other support


servicestovictims/survivorsof
traffickingandtheirfamilies;
(ii) Make available skills training and livelihood services to victims/survivors
oftrafficking;
(iii) Develop program and other support interventions to facilitate the
recoveryandreintegrationof
traffickedvictimsintotheirfamiliesandcommunities;
(iv) Provide social welfare services to Filipino victims of trafficking in other
countriesthroughtheDSWD
SocialWelfareAttachandsocialworkerspostedinforeigncountries,which
may include but not limited to stress management, repatriation and other
appropriatepsychosocialinterventionsfortheirprotectionandwelfare;
(v) Conduct technical assistance and capability building activities for social
welfareofficers/socialworkers
ofLGUsandNGOs;
(vi) Accredit NGOs that provide programs and services to ensure that they
meetthestandardssetbythe
Department;and
(vii)Providetemporaryshelterandpsychosocialservicestoforeignnationals
whoarevictimsoftrafficking
inpersonsasconfirmedbytheBureauofImmigration.

(c)DepartmentofForeignAffairs(DFA)

(i)Makeavailableitsresourcesandfacilitiesoverseasandtoprovideservices
fortraffickedpersons
regardlessofthemanneroftheirentrytothereceivingcountry;
(ii)Exploremeanstofurtherenhanceitsassistanceineliminatingtrafficking
activitiesthroughcloser
networking with government agencies in the country and overseas,
particularly in the formulation of policies and implementation of relevant
programs;
(iii)Activelyparticipateinbilateral,regionalandinternationalinitiativesand
cooperativearrangements
aimed at suppressing trafficking in persons and protecting and assisting
victimsoftraffickingtoincludemonitoringofintercountryadoptioncases.

(iv) Take necessary measures for the efficient implementation of the


MachineReadablePassportsand
VisastoprotecttheintegrityofPhilippinepassports,visas,andothertravel
documentstoreducetheincidenceoftraffickinginpersonsthroughtheuse
offraudulentidentificationdocuments;
(v) Establish and implement premarriage, onsite and predeparture
counselingprogramonintermarriages.
For this purpose, the DFA shall promulgate the necessary guidelines to
implementthesaidprogram;and
(vi)Integrateintothepredepartureorientationseminarsforforeignservice
personnelatrainingmoduleon
traffickinginpersons.

(d)DepartmentofLaborandEmployment(DOLE)

(i) Ensure the strict implementation of and compliance with rules and
guidelinesrelativetothe
employmentofpersonslocallyandoverseas;and
(ii) Monitor, document and report cases of trafficking in persons involving
employersandlabor
recruiters;
(iii) Make available existing resources such as employment and livelihood
programsaspartofthe
governmentsmeasuretosuppresstraffickinginpersons;and
(iv) Conduct public awareness programs and activities to prevent
victimization.

(e)PhilippineOverseasEmploymentAdministration(POEA)

(i) Implement an effective preemployment orientation seminar and pre


departurecounselingprogram
toapplicantsforoverseasemployment;

(ii) Formulate a system providing free legal assistance to trafficked persons


whichshallincludethe
following:

(a)Provisionoflegalassistancetovictimsoftraffickinginpersonsbymeans
of,orintheguiseof,
recruitment for overseas employment, as defined in Section 6 of R.A. No.
8042, such as free legal advice, assistance in the preparation and filing of
administrative and criminal actions for trafficking as defined in the Act,
without prejudice to the filing of administrative and/or criminal actions for
illegalrecruitment,asdefinedinR.A.No.8042,whenproper;

(b) Assistance in the prosecution of persons who engage in, promote and
facilitatetraffickinginpersons
by means of, or in the guise of, recruitment for overseas employment, as
definedinSection6ofR.A.8042;
Inthisconnection,thePOEAshalllikewiseadoptapolicyofconfidentialityin
allcasesreferredtoitinvolving
possibleviolationsoftheAct.

(iii)Adoptpoliciesandprocedures,prepareandimplementprogramsgeared
towardstheeradicationof
traffickinginpersonsaswellasactsthatpromotetraffickinginpersonssuch
as,butnotlimitedto,thefollowing:
(a) Comprehensive and Integrated Education Program on overseas
employment which shall be undertaken in partnership with other relevant
organizations and government entities. Such education program shall cover
all stages of recruitment and employment and shall provide information
useful for overseas workers including a module on antitrafficking program
andmeasures;

(b)Nationwidemultimediaandsustainablegrassrootsinformationcampaign
to create publicawareness on the realities of overseas employment and
dangersofbecomingvictimsofillegaltraffickingactivities;

(c)Conductspecialoperations,complementarytothepowerofthePNP,on
personsandentitiesengaged
in recruitment for overseas employment reported to be violating the
provisionsoftheActforthepurposeof
effecting closure of said establishments pursuant to the provisions of R.A.
No.8042;and

(d) Database of cases involving, and personalities involved in, trafficking


persons separate and distinct from its illegal Recruitment cases for
monitoringpurposes;

(iv) In cases of repatriation involving workers recruited and deployed by


licensedagencies,thePOEAshall
notify the agency concerned to provide a plane ticket or Prepaid Travel
Advice (PTA) and shall impose sanctions on said agencies for failure to
cooperateinprovidingwelfareassistancetoOFWstheyhavedeployed;and
(v) Continue to regulate private sector participation in the recruitment and
overseasplacementof
workers through its licensing and registration system pursuant to its rules
andregulationonoverseas
employment. It shall formulate and implement, in coordination with
appropriateentitiesconcerned,when
necessary,asystemofpromotingandmonitoringtheoverseasemployment
ofFilipinoworkers,takinginto
consideration their welfare and protection from the dangers and risks
inherentinoverseasemployment,includingillegaltrafficking.

(f)BureauofImmigration(BI)

(i)Strictlyadministerandenforceimmigrationandalienregistrationlaws;
(ii)Adoptmeasuresfortheapprehensionofsuspectedtraffickersbothatthe
placeofarrivaland
departure;
(iii) Ensure compliance by the Filipino fiancs/ fiances and spouses of
foreign nationals with the predeparture and counseling program
requirementoftheAct;
(iv) Strictly implement the requirement for a parental travel authority duly
processedbytheDSWDfor
minors traveling abroad unaccompanied by one parent, and the travel
clearanceforminorstravelingabroad
unaccompaniedbybothparents;
(v) Ensure compliance by Overseas Filipino Workers of the departure
requirementsofthePOEA;
(vi)Conductperiodictrainingandseminaronfraudulentdocumentdetection
andpassengerassessment

to enhance the level of skill and competence of all its immigration officers
andagentsindocumentfrauddetection;
(vii) Conduct periodic study of the trends, routes and modus operandi
employedbythetraffickersincluding
itsrecruitmentbase,transitcountriesandcountryofdestination;
(viii) Establish a network with other law enforcement agencies and
immigrationcounterpartsof
source,transitanddestinationcountriestofacilitateexchangeandsharingof
informationontheactivitiesof
traffickingsyndicates;
(ix)EstablishnetworkwithLGUsfortheeffectiveapprehensionofsuspected
traffickersandtheircohorts;
(x)DevelopaprogramfortheprocurementandinstallationofInternational
CivilAviationOrganization
(ICAO) compliant machine readers and fraud detection equipment at all
international airports and seaports in the country to deter trafficking in
persons;and
(xi)Developanddistributematerialscontainingadvisoryandotherpertinent
informationtoenhance
awarenessagainsttraffickinginpersons.

(g)PhilippineNationalPolice(PNP)

(i)Undertakesurveillance,investigationandarrestofindividualsorpersons
suspectedtobeengagedin
trafficking;
(ii) Coordinate closely with various law enforcement agencies to secure
concertedeffortsforeffective
investigationandapprehensionofsuspectedtraffickers.Forthispurpose,it
shallalso:

(a)Pursuethedetectionandinvestigationofsuspectedorallegedtrafficking
activitiesatairports
through its Aviation Security Group, at seaports and/or harbors through its
MaritimeGroup,andatland
transportationterminalsthroughitspolicestationandwhenproper,filethe
appropriatechargesagainsttraffickersinthepropercourt;

(b) Coordinate with the Philippine Ports Authority (PPA) which may have
initiallyprocessedcomplaintsattheirBalaySilungansaDaungan;and

(c) Coordinate with local and barangay officials with respect to the
apprehensionand/orarrestof
traffickers.

(iii) Establish a system to receive complaints and calls to assist trafficked


persons,andtheconductofrescueoperations;
(iv)DirectandsupervisetheenforcementofitsandateundertheActandits
rulesandregulations;
(v) Supervise the conduct of investigations relating to apprehension
occurringatlandtransportation
terminals, domestic seaports and airports and monitor the filing of
appropriatecasesagainsttraffickers;
(vi) Formulate plans and programs for the prevention and/or reduction of
traffickinginpersons;
(vii)Integrateintheprogramofinstructioncomprehensive,gendersensitive
andchildfriendly
investigationandhandlingofcasesoftraffickinginpersonsinthePhilippine
NationalPoliceAcademy(PNPA),PhilippinePublicSafetyCollege(PPSC)and
othertrainingschoolsoperatedandmanagedbythePNP;and
(viii) Establish antitrafficking section under the Women and Children
ComplaintDesk(WCCD)inallcity
andmunicipalpolicestations.

(h)NationalCommissionontheRoleofFilipinoWomen(NCRFW)

(i)Activelyadvocateandparticipateininternationalandregionaldiscussion
andinitiativesin
trafficking in women and include the same in all of its international
commitmentsandpolicypronouncements.Wherepossibleandappropriate,
work with the Department of Foreign Affairs in forging bilateral and
multilateralcollaborativeprojectsontrafficking;
(ii)AssisttheCouncilintheformulationandmonitoringofpoliciesaddressing
theissueoftraffickingin
personsincoordinationwithrelevantgovernmentagencies;

(iii) Assist the Council in the conduct of information dissemination and


trainingtofrontlinegovernment
agencies,NGOsandthegeneralpublic;
(iv)Assistinthedevelopmentofgenderresponsivedocumentationsystemin
coordination with other agencies and the National Statistical Coordination
Board (NSCB) through its monitoring of the situation of women particularly
onviolenceagainstwomen;
(v) Assist the Council in the formulation of prevention and reintegration
programsforvictimsof
trafficking including the demand side; and (vi) Conduct studies on the root
causes,magnitude
andformsoftraffickinginwomenanddocumentbestpracticesinprevention
programs.

Sec.18.RolesandResponsibilitiesofOtherRelevantNationalGovernment
Agencies. Consistent with their mandates under existing laws, the
following agencies shall integrate human trafficking issues in their strategy
and program formulation and implement programs and services for the
preventionandsuppressionoftraffickingandfortheprotectionoftrafficked
victims.
Theyshalllikewisehavethefollowingrolesandresponsibilities:

(a)DepartmentoftheInteriorandLocalGovernment(DILG)

(i)Conductasystematicinformationdissemination/advocacyandprevention
campaignagainsttraffickinginpersons;
(ii) Maintain a databank for the effective monitoring, documentation and
prosecutionofcaseson
traffickinginpersons;
(iii) Issue directives to the LGUs and barangays to institutionalize recruiter
monitoringmechanismsand
increasepublicawarenessregardingtraffickinginpersons;
(iv) Promote family and community empowerment to prevent trafficking in
persons;and
(v) Strengthen, activate and mobilize existing committees, councils, similar
organizationsandspecial
bodiesatthelocalleveltopreventandsuppresstraffickinginpersons.

(b)DepartmentofTourism(DOT)

(i) Formulate and implement preventive measures to stop sex tourism


packages and other activities of tourism establishments which might
contribute to the trafficking in persons in coordination with local
governmentunits;and
(ii) Provide training to tourist security officers on surveillance, investigation
andrescueoperationstrategies.

(c)DepartmentofEducation(DepEd)

(i)Integrateintheappropriatesubjectareascoremessagesonmigrationand
traffickingintheelementary
andsecondarylevelsbyprovidinglessonwithemphasisontheirimplications
andsocialcoststopersonsandcountry;
(ii) Provide opportunities for trafficked persons in the educational
mainstreamthroughthebasiceducation
andnonformaleducationcurricula;and
(iii) Provide education and raise consciousness of boys/men in schools and
communitiesinordertodiscouragethedemandsideortheuse/buyingof
traffickedwomen
andchildren.

(d)DepartmentofHealth(DOH)

(i) Make available its resources and facilities in providing health care to
victimsoftraffickingwhichshall,
atalltimes,beheldconfidential.

(e)DepartmentofTransportationandCommunication(DOTC)

(i) Provide guidelines for the land, sea and air transport providers to train
theirpersonnelintrafficking
inpersons;
(ii)Standardizeguidelinesformonitoringtraffickinginpersonsineveryport;
and
(iii)MonitorthepromotionofadvertisementoftraffickingintheInternet.

(f)CommissiononHumanRights(CHR)

(i)Conductadvocacyandtrainingprogramsrelatingtoantitrafficking;
(ii)InvestigateandrecommendforprosecutionviolationsoftheAct;
(iii)Providelegalandfinancialassistancetovictimsoftrafficking;and
(iv) Integrate antitrafficking efforts in the Barangay Human Rights Action
Center(BHRAC);and
(v) Monitor government compliance to international human rights treaty
obligationsrelatedtothe
suppression/elimination of trafficking, particularly the Convention for the
Suppression of Traffic in Persons and Exploitation of the Prostitution of
Others, the Convention on the Elimination of All Forms of Discrimination
AgainstWomen,theConventionontheRightsoftheChild,theConvention
on the Protection of Migrant Workers and Members of Their Families, and
the UN Convention Against Transnational Organized Crimes including its
Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially
WomenandChildren.

(g)NationalBureauofInvestigation(NBI)

(i) Conduct surveillance, monitor and investigate recruiters, travel agencies,


hotelsandotherestablishments
suspectedtobeengagedintraffickinginpersons;
(ii) Coordinate closely with all the Council member agencies for effective
detectionandinvestigationofsuspectedtraffickers;
(iii) Formulate plans and programs for the detection and prevention of
trafficking,andthearrestand
prosecutionofsuspectedtraffickers;
(iv) Share intelligence information on suspected traffickers to all Council
memberagencieswhennecessary;
and
(v)Fostercooperationandcoordinationwiththelawenforcementagencies
ofothercountriesandthe
INTERPOLintheinvestigationandapprehensionofsuspectedtraffickers.

(h)PhilippineCenteronTransnationalCrime(PCTC)

(i)ContinuetofunctioninaccordancewithitsmandatepursuanttoExecutive
OrderNo.62,s.1999,on
mattersconcerningtraffickinginpersonswithtransnationaldimension;

(ii) Undertake strategic researches on the structure and dynamics of


traffickinginpersonswithtransnationalcrimedimension,predicttrendsand
analyzegivenfactorsfortheformulationofindividualandcollective
strategiesforthepreventionanddetectionoftraffickinginpersonsandthe
apprehensionofcriminalelementsinvolved;
(iii) Conduct case operations in coordination with other law enforcement
agencies;and
(iv)Serveasthefocalpointininternationallawenforcementcoordinationon
traffickinginpersons
particularlywiththeINTERPOL.

(i)OverseasWorkersWelfareAdministration(OWWA)

(i)AssistintheinformationandadvocacycampaignamongOFWstoprevent
traffickinginpersons;
(ii) Assist in the documentation of cases of trafficking and ensure the
provisionofitsprogramsand
services to OFWs and their families; and (iii) Include a module on anti
traffickingtoitspredeparture
seminar.

(j)CouncilfortheWelfareofChildren(CWC)

(i)Integrateinitsdevelopmentandstrategicframeworksissuesandconcerns
affectingtraffickingin
childrenandensuretheadoptionofsuchframeworksbytheLGUsandother
stakeholders;
(ii)Vigorouslyadvocateagainsttraffickingofchildren;
(iii)Improvedataontraffickinginchildrenthroughintegrationofcriticaland
relevantindicatorsintothe
monitoringsystemforchildren;
(iv)Adoptpoliciesandmeasuresthatwillprotectandpromotetherightsand
welfareofchildrenvictimsof
traffickingandcoordinateandmonitortheirimplementation;and

(v) Address issues on trafficking of children through policy and program


interventions.

(k)PhilippineInformationAgency(PIA)

(i) Enhance public awareness on trafficking in persons, pertinent laws and


possibleactionstoprevent
victimizationandrevictimizationbydevelopingpublicadvocacyprogramas
wellasprintinganddistributing
appropriateinformationmaterials.

(l)TechnicalEducationandSkillsDevelopmentAuthority(TESDA)

(i)Provideskillsandentrepreneurialtrainingtotraffickedvictims;and
(ii)Formulateaspecialprogramtoensuretheprovisionofappropriateskills
trainingfortraffickedvictims.

Sec. 19. Roles and Responsibilities of Local Government Units (LGUs). The
LGUsshallhavethefollowingrolesandresponsibilities:

(a) Monitor and document cases of trafficked persons in their areas of


jurisdiction;
(b) Effect the cancellation of licenses of establishments which violate the
provisionsoftheActand
ensureitseffectiveprosecution;
(c)Undertakeaninformationcampaignagainsttraffickinginpersonsthrough
theestablishmentoftheMigrantsAdvisoryandInformationNetwork(MAIN)
desks in municipalities and provinces in coordination with the DILG, PIA,
CommissiononFilipinoOverseas(CFO),NGOsandotherconcernedagencies;
(d) Encourage and support community based initiatives which address
traffickinginpersons;
(e) Provide basic social services for the prevention, rescue, recovery,
rehabilitation and reintegration/after care support services to victims of
traffickinginpersonsandtheir
families;
(f)Enactordinancesorissuancesaimedatprovidingprotectionandsupport
totraffickedpersonsandadoptmeasurestopreventandsuppresstrafficking
inpersons;and

(g) Strengthen, activate and mobilize existing committees, councils, similar


organizationsandspecialbodies
attheprovincial,city,municipalandbarangaylevelstopreventandsuppress
traffickinginpersons.

Sec.20.RolesandResponsibilitiesofNonGovernmentOrganizationswhich
areMembersoftheCouncil.TheNGOmembersoftheCouncilshallhavethe
followingrolesandresponsibilities:

(a) Assist government agencies in formulating and implementing policies,


programsandIECcampaignagainsttrafficking;
(b)Assistincapabilitybuildingactivitiesofgovernmentpersonnelandshare
theirexperiencesand
expertiseinhandlingtraffickingcases;
(c)Coordinatewithconcernedgovernmentagencies,LGUsandotherNGOs
in reporting alleged perpetrators, rescuing victims of trafficking, and
conductinginvestigation/surveillance,ifindicated;
(d) Undertake programs and activities for the prevention, rescue, recovery
andreintegrationofthevictimsof
traffickingandothersupportservicesfortheirfamilies;
(e)Documentand/orassistinthedocumentationofcasesoftrafficking;
(f)Disseminateguidelinestoallitsnetworkmembers,localandinternational,
onpoliciesandprograms
addressingissuesontraffickinginpersons;
(g)Formulateeducationalmoduletoaddressthedemandsideoftrafficking;
and
(h)PerformsuchothertasksasmaybeagreeduponbytheCouncil.

Sec.21.AssistanceofOtherAgenciesandInstitutions.Inimplementingthe
Act and these rules and regulations, the agencies concerned may seek and
enlisttheassistanceofNGOs,peoples
organizations (POs), civic organizations and other volunteer groups, which
willalllikewisebeencouragedtoassumethesamerolesandresponsibilities
enumeratedintheprecedingSection.

ArticleVI
REPORTINGOFSUSPECTED/ALLEGEDTRAFFICKINGINCIDENT

Sec. 22. Who May and To Whom to Report. Any person who has any
knowledgeorlearnsoffactsorcircumstancesthatgiverisetoareasonable
belief that a person will be, or may be, or has been trafficked shall
immediately report the same, either orally, in writing or through other
means,toanymemberoftheCouncil,thebarangayauthorities,thenearest
policeorotherlawenforcementagency,the
local social welfare and development office or the local Council for the
ProtectionofChildren.
In the case of trafficking cases abroad, the report shall be made to the
Philippine Embassy/Consulate which has jurisdiction over the place where
thetraffickingoccurredorwherethetraffickedpersonis
found.

Sec.23.ActionontheReport.Theagency,entityorperson
to whom the report is made shall immediately act as soon as the report is
received in coordination with other relevant government agency for
appropriate intervention. For this purpose, the Council shall develop a
mechanismtoensurethetimely,coordinatedandeffectiveresponsetocases
oftraffickinginpersons.

ArticleVII
INTERCEPTION,ARRESTAND
INVESTIGATIONOFTRAFFICKERS

Sec. 24. Procedure in the Interception, Arrest and Investigation of


TraffickersinPersonsatInternationalAirportorSeaport.Whenanoffense
punishableundertheActoranyother
offenseinrelationtheretoorinfurtherancethereofhasbeencommitted,or
is actually being committed in the presence of an immigration officer
assignedattheinternationalairportorseaport,
he/sheshallimmediatelycausetheinterceptionand/orarrestofthepersons
involvedforinvestigation.TheDOJTaskForceAgainstTraffickingshallcause
thefilingofappropriatecaseincourtwhen
evidencewarrants.Ifthepersonarrestedisaforeigner,theconcernedB.I.
investigating unit shall take full custody over the arrested person, conduct
the investigation proper motu proprio and endorse the complaint and
supporting documents to the prosecutor for inquest or MTC Judge for
appropriateproceedings.

Sec. 25. Procedure in the Interception, Arrest and Investigation of


Traffickers in Persons at Local Airport, Seaport and Land Transportation
Terminals.Incaseswheretheviolationiscommittedatlocalseaport,airport
or in land transportation terminals, the members of the law enforcement
agencyshall
immediately cause the interception and/or arrest of the suspected
traffickers. Thereafter, the investigation shall be conducted by the law
enforcementagencyontheperson/sintercepted/arrested,and
referred to the Prosecutors Office of the place where the offense was
committed or to the DOJ Task Force Against Trafficking in Persons or Task
ForceonPassportIrregularitiesorMunicipalTrialCourtof
theplacewherethecrimewascommittedincaseofmunicipalitiesandnon
chartered cities for purposes of inquest or preliminary investigation as the
casemaybe.

Sec.26.CreationofaJointTaskForceAgainstTraffickinginPersons.Forthe
purpose of the above provisions, there shall be created a Joint Task Force
Against Trafficking in Persons to be assigned at airports composed of
Prosecution, BI, PNP, and NBI personnel and another Task Force at land
transportationterminalsandlocalseaportsandairportstobecomposedof
Prosecution,PNP,BI,PPA,andPCGpersonnel.TheDOJNationalTaskForce
AgainstTraffickinginPersonsshallissuethenecessary
operational guidelines for the effective coordination, apprehension,
investigation and prosecution of violations of the Act. The DOJ Task Force
assignedatlocalseaports,airportsandlandtransportation
terminalsshallcooperateorcoordinatewiththelocalauthorities,localsocial
welfareanddevelopmentofficersoractiveNGOsconcernedwithtrafficking
inpersonsinthelocality.

Sec.27.RightsofthePersonArrested,InvestigatedorDetained.Inallcases,
therightsofthepersonarrested,investigatedordetainedasprovidedbythe
Philippine Constitution and under Republic Act No. 7438 (An Act Defining
CertainRightsofPersonsArrested,DetainedorUnderCustodialInvestigation
AsWellAsTheDutiesoftheArresting,DetainingandInvestigatingOfficers,
and Providing Penalties For Violations Thereof) shall, at all times, be
respected.

ArticleVIII
RESCUE/RECOVERYANDREPATRIATIONOFVICTIMS

Sec. 28. The Country Team Approach. The country team approach under
ExecutiveOrderNo.74,seriesof1993andfurtherenunciatedinRepublicAct
No.8042shallbetheoperationalschemeunderwhichPhilippineembassies
abroad shall provide protection to trafficked persons regardless of their
immigration status. Under the Country Team Approach, all officers,
representatives and personnel of the Philippine government posted abroad
regardlessoftheirmotheragenciesshall,onapercountrybasis,actasone
country team with mission under the leadership of the Ambassador or the
headofmission.

Sec.29.RescueattheCountryofDestination.

(a)Procedure.WhenthevictimisaFilipinonationalandatthetimeofrescue
isresidingabroad,theembassyorconsulatewhichhasjurisdictionoverthe
place where the victim is residing shall verify the veracity of the report of
incidenceoftraffickingandinquireabouttheconditionofthevictim.
Consistentwiththecountryteamapproach,thePostconcernedshallsenda
team composed of a consular officer and personnel from the Philippine
Overseas Labor Office (POLO) or the Filipino Workers Resource Center
(FWRC), the Office of the Social Welfare Attach as the case may be, to
conductavisittothejail,establishment,worksiteorresidenceofthevictim.
InthecaseofPostswithoutattachedservices,theteam
willbecomposedofaconsularofficerandpersonnelfromtheAssistanceto
Nationalssection.
The Post shall make representations with the police authorities or other
relevant law enforcement agencies with respect to the conduct of rescue
operations.

Rescue operation shall also be made in cooperation and close coordination


withsomeNGOs,localcontactsorprivateindividualswhennecessary.

In countries and areas where the services of the FWRC is not accessible, a
mobiletypeofservicesshallbeextendedbythecountryteammembersto
traffickedpersonsregardlessoftheirstatusinthehostcountry.

Thereafter, the victim will be encouraged to execute a sworn statement,


recounting among others, the people/establishment involved in the
recruitment/transfer and deployment, the modus operandi employed to
recruit, transport and deploy the victim, and other pertinent information
whichcouldprovidealeadintheinvestigationandeventualprosecutionof
theperpetrators.

(b)AssistancetoTraffickedPersons.Thetraffickedpersonshallbeprovided
withtemporaryshelterandotherformsofassistance.

IncountrieswherethereisanFilipinoWorkersResourceCenter,theservices
availabletooverseasFilipinosasprovidedforinRepublicActNo.8042shall
alsobeextendedtotraffickedpersonsregardlessoftheirstatusinthehost
country.

(c) Legal Assistance Fund. Trafficked persons shall be considered under the
categoryOverseasFilipinosin
DistressandmayavailoftheLegalAssistanceFundcreatedbyRepublicAct
No. 8042, subject to the guidelines as provided by law, including rules and
regulationsissuedbytheDFAas
toitsutilizationanddisbursement.

Sec. 30. Repatriation of Trafficked Persons. The DFA, in coordination with


DOLE and other appropriate agencies, shall have the primary responsibility
for the repatriation of trafficked persons, regardless of whether they are
documentedorundocumented.

If,however,therepatriationoftraffickedpersonsshallexposethevictimsto
greater risks, the DFA shall make representation with the host government
fortheextensionofappropriateresidencypermits
andprotection,asmaybelegallypermissibleinthehostcountry.

Sec. 31. Procedure for Repatriation. In accordance with existing rules and
regulationsontheuseanddisbursementofAssistancetoNationalsFundof
theDFAfortherepatriationofdistressedOFWs,thePostshallimmediately
request the DFA, through the Office of the Undersecretary for Migrant
WorkersAffairs

(OUMWA), allocation of funds for the repatriation of the victim. In


appropriatecasesandtoavoidrevictimization,thePostmaywithdrawthe
passportofthevictimandforwardittotheDFAandin
itsplaceissueaTravelDocument(FAForm79(B))validfordirecttraveltothe
Philippines.
The Post concerned shall report to the DFA, through the OUMWA, copy
furnished the Office of Consular Affairs, the actual date of repatriation and
otherpertinentinformationandsubmitacopyoftheswornstatementand
otherrelevantdocuments.

In appropriate cases, especially when the victim is suffering from mental


illness,hassufferedphysicalorsexualabuseorhasreceivedseriousthreats
tohisorherlifeandsafety,thevictimwillbe
metuponarrivalinthePhilippinesbyDSWDpersonnel,incoordinationwith
the Joint Task Force Against Trafficking in Persons and other government
agencies such as OWWA, BI and DOH. In the case of mentally ill patients,
minors,and otherpersons requiring specialcare, the Post shall designate a
dulyauthorizedindividualtoescortsaidvictimstothePhilippines.

The victim will be encouraged, if he or she has not done so before, to


execute a sworn statement with the view of filing the appropriate charges
againstthesuspectedtraffickerinthePhilippines.Shouldthevictimrequest
the assistance of DFA, OUMWA shall interview the victim and make
recommendations for investigation with law enforcement agencies such as
thePNPandtheNBI.Incaseswhererecruitmentagenciesareinvolved,the
case shall also be referred to the POEA for appropriate action. The report
shall also be forwarded to the BI for case build up. The victim may be
referredtotheDSWD/LocalSocialWelfare
And Development Office or to the NBI OneStop Shop for psychosocial
interventions, psychological and medical examination and followthrough
therapy sessions. Protective custody and emergency shelter shall also be
providedtothevictim,inappropriatecases.

Sec. 32. Rescue Within the Country. Rescue operations within the country
shall be primarily undertaken by the law enforcement agencies in
coordinationwithLGUs,DOLE,DSWDandDOH.Uponreceiptofareportofa
suspected or alleged trafficking ncident or activity, the law enforcement
agency to which the report is made shall conduct rescue operations of

traffickedpersons.Attheminimum,rescueoperationsshallbeguidedbythe
following:

(a) Conduct of rescue operation of trafficked persons shall be properly


coordinated with the concerned agencies particularly DSWD/local social
welfareanddevelopmentofficer;
(b)Therescueteamshallensurefullprotectionoftherightsofthetrafficked
personaswellasthetraffickerswhileunderitscustodyandcontrol;
(c)Aftertherescueoperation,theinvestigationofthecaseshallbereferred
to the Women and Children Complaint Desk (WCCD) desk of PNP, the
ViolenceAgainstWomenandChildrenDivision(VAWCD)oftheNBIorother
similarunitsordesks;
(d)Afterthecompletionofthenecessarydocumentsforthefilingofcases,
therescueteamshalleffecttheappropriateandimmediateturnoverofthe
traffickedpersontoDSWD/localsocialwelfareanddevelopmentofficer;and
(e) In the course of investigation of the trafficked person, the investigator
handlingthecaseshallensurethat
the victim shall be accorded with proper treatment and investigated in a
childfriendlyandgendersensitive
environment.Intheconductofinvestigativeinterviewsonchildren,thelaw
enforcersshalllikewisebeguidedbytheRuleontheExaminationofaChild
Witness promulgated by Supreme Court, as may be applicable. For this
purpose,theinvestigatorsshallbeproperlytrainedinthehandlingofcases
oftrafficked
persons.

ArticleIX
REHABILITATIONAND
REINTEGRATIONOFVICTIMS

Sec. 33. Comprehensive Program. The DSWD, LGUs and other concerned
agencies shall provide a comprehensive, gendersensitive and child friendly
programfortherecovery,rehabilitation
and reintegration of victims/survivors of trafficking, such as but not limited
tothefollowing:

(a) Implementation of residential care, child placement, educational


assistance,livelihoodandskillstraining

and other communitybased services must be responsive to the specific


needsandproblemsofthevictims/survivorsandtheirfamilies;
(b) Active involvement and participation of the victims/survivors in the
rehabilitation and reintegration process shall be encouraged. In order to
empower them and to prevent their revictimization, capability building
programsmustbeprovided;andLaw,RulesandLocalInstruments53
(c) Active cooperation and coordination with NGOs and other members of
thecivilsocietyincludingthebusinesscommunity,tourismrelatedindustries
as well as the media in the rehabilitation and reintegration of
victims/survivorsshallbeundertaken.

Sec. 34 Procedure. The following procedure shall be undertaken in


implementingacomprehensiveprogramfortherecovery,rehabilitationand
reintegrationofvictims/survivorsoftrafficking:

(a)Thevictim/survivoroftraffickingmaygotothenearestDSWD/LGUSocial
WelfareandDevelopmentOfficeforassistance;
(b)Uponreferral/interviewtheDSWD/LocalGovernmentSocialWorkershall
conductanintakeassessment
todetermineappropriateinterventionwiththevictim/survivor;
(c)Thesocialworkershallprepareasocialcasestudyreport/casesummary
for the victim/survivors admission to a residential facility for temporary
shelterorcommunitybasedservices;
(d) Provide services/interventions based on the rehabilitation plan in
coordinationwithappropriateagencies,
e.g. counseling, legal,medical and educational assistance;livelihood and/or
skills training; aswell asappropriate services to the family of the trafficked
victim/survivor;and
(e) Monitor implementation and periodically evaluate/update the
rehabilitation plan until the victim/ survivor has been reintegrated with
his/herfamilyandcommunity.

Sec.35.CapabilityBuildingofServiceProviders.Thefrontlineagenciesand
the service providers must undergo training and other capability building
activities to enhance their knowledge and skills in handling cases of
trafficking to prevent exacerbation of traumatic stress and facilitate more
effectivecrisisinterventions,healingandreintegrationservices.

Sec.36.Documentation.Databanking,researchanddocumentationofbest
practicesinrehabilitationandreintegrationprogramsshallbeconductedto
identify efficient and effective measures and services for the victims of
traffickingandtheirfamilies.

ArticleX
PROSECUTION,CIVILFORFEITUREANDRECOVERYOFCIVILDAMAGES

Sec.37.WhoMayFileaComplaint.ComplaintsforviolationsoftheActmay
befiledbythefollowing:
(a) Any person who has personal knowledge of the commission of the
offense;
(b)Thetraffickedpersonortheoffendedparty;
(c)Parentsorlegalguardians;
(d)Spouse;
(e)Siblings;or
(f)Children.

The foregoing persons may also seek the assistance of the Council in the
filingofcomplaint.

Sec.38.InstitutionofCriminalAction;Effect.Theinstitutionofthecriminal
actionbeforetheOfficeoftheProsecutororthecourt,asthecasemaybe,
for purposes of preliminary investigation shall interrupt the running of the
periodforprescriptionoftheoffensecharged.Theprescriptiveperiodshall
commence to run again when such proceedings terminate without the
accused being convicted or acquitted or are unjustifiably stopped for any
reasonnotimputabletotheaccused.

Sec. 39. Institution of Criminal and Civil Actions. Pursuant to the Revised
Rules on Criminal Procedure, when a criminal action is instituted, the civil
actionarisingfromtheoffensechargedshallbedeemedinstitutedwiththe
criminalactionunlesstheoffendedpartywaivesthecivilaction,reservesthe

righttoinstituteitseparatelyorinstitutesthecivilactionpriortothecriminal
action.

Sec.40.ExemptionfromFilingFees.Whenthetraffickedpersoninstitutesa
separate civil action for the recovery of civil damages, he/she shall be
exemptfromthepaymentoffilingfees.

Sec.41.Venue.TheoffensespunishableundertheActshallbeconsideredas
a continuing offense and may be filed in the place 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,thatthecourtwherethecriminalactionisfirstfiledshallacquire
jurisdictiontotheexclusionofothercourts.

Sec.42.ForfeitureoftheProceedsandInstrumentsDerivedfromTrafficking
inPersons.
(a) After conviction, all proceeds and instruments, including any real or
personal property used in the commission of the offense, shall be ordered
confiscatedandforfeitedinfavoroftheStateunlesstheownerthereofcan
prove the lack of knowledge of the use of such property in the said illegal
activity.Anyawardfordamagesarisingfromthecommissionoftheoffense
maybesatisfiedandchargedagainstthepersonaland
separatepropertiesoftheoffenderandifthesameisinsufficienttosatisfy
theclaim,thebalanceshallbetakenfromtheforfeitedpropertiesasmaybe
orderedbythecourt.
(b)Duringthependencyofthecriminalaction,nopropertyorincomeused
or derived therefrom which are subject to confiscation and forfeiture, shall
bedisposed,alienatedortransferredandthesameshallbeincustodialegis
andnobondshallbeadmittedforthereleaseofthesame.
(c) The trial prosecutor shall avail of the provisional remedies in criminal
casestoensuretheconfiscation,
preservationandforfeitureofthesaidproperties.
(d) If the offender is a public officer or employee, the forfeiture of his/her
propertyfoundtobeunlawfullyacquiredshallbegovernedbyRepublicAct
No. 1379 otherwise known as An Act Declaring Forfeiture in Favor of the
State Any Property Found to Have Been Unlawfully Acquired by Any Public
OfficerorEmployeeandProvidingfortheProceedingsTherefore.

ArticleXI
LEGALPROTECTIONANDOTHERSERVICES

Sec.43.LegalProtection.Traffickedpersonsshallberecognizedasvictimsof
theactoractsoftrafficking.Assuch,theyshallnotbepenalizedforcrimes
directly related to the acts of trafficking enumerated under the Act or in
obedience to the order made by the trafficker in relation thereto. In this
regard,theconsentofthetraffickedpersontotheintendedexploitationset
forthintheActshallbeirrelevant.

Sec. 44. Preferential Entitlement under the Witness Protection Program.


AnyprovisionofRepublicActNo.6981tothecontrarynotwithstanding,any
trafficked person shall be entitled to the witness protection program
providedtherein.
Sec.45.ImmunityfromCriminalProsecution.Anypersonwhohaspersonal
knowledgeinthecommissionofanyoftheoffensespenalizedundertheAct
andwhovoluntarilygivesmaterialinformationrelativetheretoandwillingly
testifies against the offender shall be exempt from prosecution for the
offense with reference to which his information and testimony were given,
subjecttothefollowingconditions:

(a) The information and testimony are necessary for the conviction of the
accused;and
(b)Suchinformationandtestimonyarenotyetinthepossessionofthestate.

Sec. 46. Mandatory Services. To ensure recovery, rehabilitation and


reintegration into the mainstream of society, concerned government
agenciesshallmakeavailablethefollowingservicestotraffickedpersons:

(a)Emergencyshelterorappropriatehousing;
(b)Counseling;
(c) Free legal services which shall include information about the victims
rights and the procedure for filing complaints, claiming compensation and
suchotherlegalremediesavailabletothem,inalanguageunderstoodbythe
traffickedperson;
(d)Medicalorpsychologicalservices;
(e)Livelihoodandskillstraining;and
(f)Educationalassistancetoatraffickedchild.

Sustained supervision and follow through mechanism that will track the
progress of recovery, rehabilitation and reintegration of the trafficked
personsshallbeadoptedandcarriedout.

Sec.47.LegalProtectionofTraffickedPersonsWhoareForeignNationals.
TraffickedpersonsinthePhilippineswhoarenationalsofaforeigncountry
shallbeentitledtoappropriateprotection,assistanceandservicesavailable
tothetraffickedpersonsandshallbeallowedtocontinuedpresenceinthe
Philippines for a period of fiftynine (59) days to enable them to effect the
prosecutionoftheoffenders.Suchperiodmaybereneweduponshowingof
proofbythetrialprosecutorthattheirfurthertestimonyisessentialtothe
prosecution of the case. The trial prosecutor shall course his request for
extensiontothe Councilwhichshallaccordinglyactuponthesame.Ifsuch
requestisgranted,theregistrationandimmigrationfeesof
such foreign nationals shall be waived. The Council, for this purpose, shall
developadditional
guidelinestoimplementthisprovision.

ArticleXII
TRUSTFUND

Sec. 48. Trust Fund; Sources. All fines imposed under the Act and the
proceedsandpropertiesforfeitedandconfiscatedpursuanttoSection14of
theActandArticleIX,Section5oftheserulesand
regulationsshallaccruetoaTrustFundtobeadministeredandmanagedby
theCouncil.

Sec. 49. Utilization. The Trust Fund shall be used exclusively for programs
that will prevent acts of trafficking and protect, rehabilitate, reintegrate
trafficked persons into the mainstream of society. Such programs shall
include,butnotlimitedtothefollowing:

(a)ProvisionformandatoryservicessetforthinSection23oftheAct;and
Section47oftheseRulesand
Regulations.

(b) Sponsorship of a national research program on trafficking and


establishment of a data collection system for monitoring and evaluation
purposes;
(c) Provision of necessary technical and material support services to
appropriategovernmentagenciesandnongovernmentorganizations(NGOs);
(d)Sponsorshipofconferencesandseminarstoprovidevenueforconsensus
building among the public, the academe, government, NGOs and
internationalorganizations;and
(e)Promotionofinformationandeducationcampaignontrafficking.

The Trust Fund may also be used to support the operations of the
Secretariat.

Sec.50.UseandDisbursementofTrustFund.Theuseanddisbursementof
thetrustfundshallbesubjecttotheapprovalofatleasttwothirds(2/3)of
themembersoftheCouncilandshallbe
governed by existing government accounting and auditing rules and
regulations.

ArticleXIII
INTERNATIONALCOOPERATION
Sec. 51. International Cooperation. The Council, in close coordination with
theDFAandotherconcernedagencies,shallpromotecooperation,technical
assistance and partnership among governments and regional and
internationalorganizationsonthefollowingaspects:

(a) Prevention, protection, prosecution, repatriation and reintegration


aspectsoftraffickinginpersons,especiallywomenandchildren;
(b) Systematic exchange of information and good practices among law
enforcementandimmigrationauthorities;
(c) Prevention, detection, investigation and prosecution of trafficking in
persons,includingtheprotection
ofvictimsthroughexchangesandjointtrainingatthebilateral,regionaland
international levels, between and among relevant officials including police,
judges, prosecutors, immigration officers, other law enforcement agents as
wellasconsularauthorities;and
(d)Repatriationofvictimsoftraffickingwithdueregardtotheirsafetyandin
considerationofhumanitarian

andcompassionatefactors.

ArticleXIV
CONFIDENTIALITY

Sec. 52. Confidentiality. At any stage of the investigation, prosecution and


trial of an offense under this Act, law enforcement officers, prosecutors,
judges, court personnel and medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the trafficked person and the
accused.Towardsthisend,lawenforcementofficers,prosecutorsandjudges
to whom the complaint has been referred may, whenever necessary to
ensure a fair and impartial proceeding, and after considering all
circumstances for the best interest of the parties, order a closeddoor
investigation, prosecutionortrial.The name and personal circumstances of
thetraffickedpersonoroftheaccused,oranyotherinformationtendingto
establishtheiridentitiesandsuchcircumstancesorinformationshallnotbe
disclosed to the public. In case when the prosecution or trial is conducted
behindcloseddoors,itshallbeunlawfulforanyeditor,publisher,reporteror
columnist in case of printed materials, announcer or producer in case of
television and radio, producer and director of a film in case of the movie
industry,oranypersonutilizingtrimediaorinformation
technologytocausepublicityofandcaseoftraffickinginpersons.

ArticleXV
OFFENSESANDPENALTIES

Sec.53.ActsofTraffickinginPersons.Anyperson,naturalorjuridical,who
commitsanyofthefollowingactsshallsufferthepenaltyofimprisonmentof
twenty (20) years and a fine of not less than One million pesos
(P1,000,000.00)butnotmorethanTwomillionpesos(P2,000,000.00):

(a)Torecruit,transport,transfer,harbor,provide,orreceiveapersonbyany
means, including those done under the pretext of domestic or overseas
employment or training or apprenticeship, for the purpose of prostitution,

pornography,sexualexploitation,forcedlabor,slavery,involuntaryservitude
ordebtbondage;
(b)Tointroduceormatchformoney,profitormaterial,economicorother
consideration,anypersonor,as
providedforunderRepublicActNo.6955,anyFilipinowomanwithaforeign
national, for marriage for the purpose of acquiring, buying, offering, selling
or trading him/her to engage in prostitution, pornography, sexual
exploitation,forcedlabor,slavery,involuntaryservitudeordebtbondage;
(c) To offer or contract marriage, real or simulated, for the purpose of
acquiring,buying,offering,selling,ortradingthemtoengageinprostitution,
pornography, sexual exploitation, forced labor or slavery, involuntary
servitudeordebtbondage;
(d) To undertake or organize tours and travel plans consisting tourism
packages or activities for the purpose of utilizing and offering persons for
prostitution,pornographyorsexualexploitation;
(e)Tomaintainorhireapersontoengageinprostitutionorpornography;
(f) To adopt or facilitate the adoption of persons for the purpose of
prostitution, pornography, sexual exploitation,forced labor, slavery,
involuntaryservitudeordebtbondage;
(g)Torecruit,hire,adopt,transportorabductaperson,bymeansofthreat
or use of force, fraud, deceit, violence, coercion, or intimidation for the
purposeofremovalorsaleoforgansofsaidperson;and
(h)Torecruit,transportoradoptachildtoengageinarmedactivitiesinthe
Philippinesorabroad.

Sec. 54. Acts that Promote Trafficking in Persons. Any person, natural or
juridical, who shall commit the following acts which promote or facilitate
traffickinginpersons,shallbepenalizedwiththepenaltyofimprisonmentof
fifteen (15) years and a fine of not less than Five hundred thousand pesos
(P500,000.00)butnotmorethanOnemillionpesos(P1,000,000.00):

(a)Toknowinglyleaseorsublease,useorallowtousedanyhouse,building
orestablishmentforthepurposeofpromotingtraffickinginpersons;
(b) To produce, print and issue or distribute unissued, tampered or fake
counseling certificates, registration stickers and certificates of any
governmentagencywhichissuesthesecertificatesandstickersasproof of
compliancewithgovernmentregulatoryandpredeparturerequirementsfor
thepurposeofpromotingtraffickinginpersons;

(c) To advertise, publish, print, broadcast or distribute, or cause the


advertisement,publication,printing,
broadcastingordistributionbyanymeans,includingtheuseofinformation
technology and the internet of any brochure, flyer, or any propaganda
materialthatpromotestraffickinginpersons;
(d) To assist in the conduct of misrepresentation or fraud for purposes of
facilitatingtheacquisitionofclearancesandnecessaryexitdocumentsfrom
government agencies that are mandated to provide predeparture
registrationandservicesfordepartingpersonsforthepurposeofpromoting
trafficking
inpersons;
(e) 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 and
traveldocumentsforthepurposeofpromotingtraffickinginpersons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or
personal documents or belongings of trafficked persons in furtherance of
trafficking or to prevent them from leaving the country or seeking redress
fromthegovernmentorappropriateagencies;and
(g) 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,
forcedlabor,orslavery.

Sec. 55. Qualified Trafficking in Persons. The following are considered as


qualified trafficking and shall be penalized with the penalty of life
imprisonment and a fine of not less than Two million pesos (2,000,000.00)
butnotmorethanFivemillionpesos(5,000,000.00);

(a)Whenthetraffickedpersonisachild;
(b)WhentheadoptioniseffectedthroughRepublicActNo.8043,otherwise
knownastheInterCountryAdoptionActof1995andsaidadoptionisfor
thepurposeofprostitution,pornography,sexualexploitation,forcedlabor,
slavery,involuntaryservitudeordebtbondage;
(c)Whenthecrimeiscommittedbyasyndicate,orinlargescale.Trafficking
isdeemedcommittedbyasyndicateifcarriedoutbyagroupofthree(3)or
more persons conspiring or confederating with one another. It is deemed
committedinlargescaleifcommittedagainstthree(3)ormorepersons,
individuallyorasagroup;

(d)Whentheoffenderisanascendant,parent,sibling,guardianoraperson
who exercises authority over the trafficked person or when the offense is
committedbyapublicofficeroremployee;
(e)Whenthetraffickedpersonisrecruitedtoengageinprostitutionwithany
memberofthemilitaryorlaw
enforcementagencies;
(f) When the offender is a member of the military orlaw enforcement
agencies;and
(g) When by reason or on occasion of the act of trafficking in persons, the
offended party dies, becomes insane, suffers mutilation or is afflicted with
Human Immunodeficiency Virus HIV or the Acquired Immune Deficiency
Syndrome(AIDS).

Sec. 56. Violation of Confidentiality Provisions. Any person who violates


Section7oftheActandSection52,ArticleXIVhereofshallsufferthepenalty
of imprisonment of six (6) years and a fine not less than Five hundred
thousand pesos (P500,000.00) but not more than One million pesos
(P1,000,000.00).

Sec.57.ApplicationofPenaltiesandOtherSanctions.Thefollowingshallbe
appliedintheimpositionofpenalties:

(a) If the offender is a corporation, partnership, association, club,


establishmentoranyjudicialperson,the
penalty shall be imposed upon the owner, president, partner, manager,
and/or any responsible officer who participated in the commission of the
crime or who shall have knowingly permitted or failed to prevent its
commission;
(b)TheregistrationwiththeSecuritiesandexchangeCommission(SEC)and
license to operate of the erring agency, corporation, association, religious
group, tour or travel agent, club or establishment, or any place or
entertainment shall be cancelled and revoked permanently. The owner,
president, partner or manager thereof shall not be allowed to operate
similarestablishmentinadifferentname;
(c) If the offender is a foreigner, he shall be immediately deported after
servinghissentenceandbebarred
permanentlyfromenteringthecountry;

(d) Any employee or official of government agencies who shall issue or


approve the issuance of travel exit clearances, passports, registration
certificates, counseling certificates, marriage license, and other similar
documents to persons, whether judicial or natural, recruitment agencies,
establishments or other individuals or groups, who fail to observe the
prescribed procedures and the requirement as provided for by laws, rules
and regulations, shall be held administratively liable, without prejudice to
criminal liability under the Act. The concerned government official or
employeeshall,uponconviction,bedismissedfromtheserviceandbe
barred permanently to hold public office. His/her retirement and other
benefitsshalllikewisebeforfeited;and
(e)ConvictionbyfinaljudgmentoftheadopterforanyoffenseunderthisAct
shallresultintheimmediate
rescissionofthedecreeofadoption.

Sec. 58. Use of Trafficked Persons. Any person who buys or engages the
servicesoftraffickedpersonsforprostitutionshallbepenalizedasfollows:

(a) First offense six (6) months of community service as may be


determinedbythecourtandafineofFiftythousandpesos(P50,000.00);and
(b) Second and subsequent offenses imprisonment of one year (1) year
andafineofOnehundredthousandpesos(P100,000.00).

The Council shall coordinate with the Supreme Court through the Office of
the Court Administrator for the issuance of appropriate guidelines and
measures for the judiciary to implement this provision particularly on the
aspectofimplementingthepenaltyofcommunityservice.

ArticleXV
FUNDING

Sec.59.InclusioninAgencyAppropriations.Theheadsofdepartmentsand
agenciesconcernedshallimmediatelyincludeintheirannualappropriations
the funding necessary to implement programsand services required by the
Actandtheseregulations.

In the interim, the funding necessary to carry out their mandate under the
lawmaybechargedagainsttheirGenderandDevelopment(GAD)budget.

ArticleXVII
FINALPROVISIONS

Sec.60.NonRestrictionofFreedomofSpeechandofAssociation,Religion
and the Right to Travel. Nothing in these rules and regulations shall be
interpreted as a restriction of the freedom and of association, religion and
the right to travel for purposes not contrary to law as guaranteed by the
Constitution.

Sec. 61. Saving Clause. The provisions of Republic Act No. 7610, otherwise
known as the Special Protection of Children Against Child Abuse,
ExploitationandDiscriminationActshallremainapplicableandshallnotin
anywaybeamendedorrepealedbytheprovisionsoftheActandtheserules
andregulations.

Sec.62.SeparabilityClause.Thedeclarationofinvalidityofanyprovisionof
theserulesandregulationsorpartthereofshallnotaffectthevalidityofthe
remainingprovisions.

Sec. 63. Repealing Clause. Pertinent provisions of all laws, presidential


decrees, executive orders and rules and regulations, or parts thereof,
contrarytoorinconsistentwiththeprovisionsoftheActandtheserulesand
regulationsareherebyrepealedormodifiedaccordingly.

Sec.64.Effectivity.Theserulesandregulationsshalltakeeffectfifteen(15)
daysafteritscompletepublicationinatleasttwo(2)newspapersofgeneral
circulation.

7. AlienEmploymentRegulation

Reference: Arts. 12 (e), 4042; Omnibus Rules, Book I, Rule XIV, DO 12, 16
Nov. 2001; Omnibus Guidelines for Issuance of Employment Permits to
ForeignNationals);Const.,Art.XII,Sec.12

a.

Coverage

Almodielv.NLRC,223SCRA341(1993)

b.

ConditionsforgrantofPermit,OmnibusGuidelines,RuleIII.1,2,3
RULEIII.Revocation/CancellationofEmploymentPermitsIssued
1. The permits issued may, motu proprio or upon a petition, be
cancelledorrevokedbasedonanyofthefollowinggrounds:
1.1 Misrepresentation of facts or falsification of the documents
submitted;
1.2 The foreign national has been declared as an undesirable alien by
competent
authorities;
1.3NoncompliancewiththeconditionsforwhichtheAEPwasissued;
1.4FailuretorenewAEPwithinone(1)yearafteritsexpiration.
2. Petitions for cancellation or revocation of permits issued shall be
resolvedwithinthirty(30)calendarsfromreceiptthereof.
3. Any aggrieved party may file a Motion for Reconsideration and/or
Appeal and the same shall be resolved based on Paragraph 4 of this
Rule.

GeneralMillingCorp.v.Torres,196SCRA215(1991)

c. ValidityofAEP,OmnibusRules,RuleII.7

7.ValidityofPermitsThevalidityofpermitsshallbeasfollows:
7.1Asageneralrule,thevalidityofpermitsshallbeforaperiodofone
(1) year, unless the employment contract, consultancy services, or
other modes of engagement or term of office for elective officers,
provides
for
a
longer
period.

7.2 The effectivity of the renewal shall be on the day after the
expiration of the previous permit, regardless of whether or not the
renewal is granted before or after the expiration of the previous
permit.
7.3Asageneralrule,thepermitsshallbevalidonlyforthepositionand
theemployerforwhichitwasissued,exceptincaseofforeignnationals
who are holders of multiple positions in one corporation, where one
AEP
shall
be
valid
for
such
multiple
positions.
7.4Thepermitsofresidentforeignnationalsshallbevalidformultiple
employers,regardlessofthenatureanddurationoftheiremployment,
providedthattheyshallreportchangesintheiremploymentstatusand
the identity of theiremployers to the DOLE Regional Officewhich has
issuedthepermit.

d. Revocation/Cancellation/Grounds,OmnibusGuidelines,RuleIII.1

RULEIII.Revocation/CancellationofEmploymentPermitsIssued
1.Thepermitsissuedmay,motupropriooruponapetition,becancelledor
revokedbasedonanyofthefollowinggrounds:
1.1 Misrepresentationoffactsorfalsificationofthedocumentssubmitted;
1.2 The foreign national has been declared as an undesirable alien by
competent
authorities;
1.3 Noncompliance with the conditions for which the AEP was issued;
1.4FailuretorenewAEPwithinone(1)yearafteritsexpiration.
E. HumanResourcesDevelopment

Reference: Arts. 5781; Technical Education and Skills Development


AuthorityActof1994(TESDA)(RA7796);DualTrainingSystemsActof1994
(RA7686);MagnaCartaforDisabledPersons(RA7277)

1. PolicyObjectives,RA7796,Secs.23

SEC.2.DeclarationofPolicy.ItisherebydeclaredthepolicyoftheStateto
provide relevant, accessible, high quality and efficient technical education
andskillsdevelopmentinsupportofthedevelopmentofhighqualityFilipino
middlelevel manpower responsive to and in accordance with Philippine
developmentgoalsandpriorities.
TheStateshallencourageactiveparticipationofvariousconcernedsectors,
particularly
private
enterprises, being direct participants in and immediate beneficiaries of a
trained and skilled workforce, in providing technical education and skills
developmentopportunities.
SEC.3.StatementofGoalsandObjectives.Itisthegoalandobjectiveofthis
Actto:
Promote and strengthen the quality of technical education and skills
development programs to attain international competitiveness;

Focus technical education and skills development on meeting the changing


demands
for
quality
middlelevel
manpower;

Encourage critical and creative thinking by disseminating the scientific and


technical knowledge base of middlelevel manpower development programs;

Recognize and encourage the complementary roles of public and private


institutionsintechnicaleducationandskillsdevelopmentandtrainingsystems;
and

Inculcate desirable values through the development of moral character with


emphasis on work ethic, selfdiscipline, selfreliance and nationalism.

2. Apprentice

a. Definition,RA7796,Sec.4(j)

"Apprentice" is a person undergoing training for an approved apprenticeable


occupation
during
an
apprenticeship
agreement;

b. ApprenticeableOccupation,RA7796,Sec.4(m)

(m) "Apprenticeable Occupation" is an occupation officially endorsed by a


tripartitebodyandapprovedforapprenticeshipbytheauthority;

c. Qualification,RA7610,asamendedbyRA7658,Sec.12

REPUBLICACTNO.7658
ANACTPROHIBITINGTHEEMPLOYMENTOFCHILDRENBELOW15YEARSOF
AGE IN PUBLIC AND PRIVATE UNDERTAKINGS, AMENDING FOR THIS
PURPOSESECTION12,ARTICLEVIIIOFR.A.7610.

Section1.Section12,ArticleVIIIofR.A.No.7610otherwiseknownasthe
"Special Protection of Children Against Child Abuse, Exploitation and
DiscriminationAct"isherebyamendedtoreadasfollows:

"Sec. 12.Employment of Children. Children below fifteen (15) years of


ageshallnotbeemployedexcept:
(1)Whenachildworksdirectlyunderthesoleresponsibilityofhisparents
or legal guardian and where only members of the employer's family are
employed:Provided,however,Thathisemploymentneitherendangershis
life, safety, health and morals, nor impairs his normal development;
Provided, further, That the parent or legal guardian shall provide the said
minorchildwiththeprescribedprimaryand/orsecondaryeducation;or
(2)Whereachild'semploymentorparticipationinpublicentertainmentor
information through cinema, theater, radio or television is essential:
Provided,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 Department of Labor and Employment:
and Provided, That the following requirements in all instances are strictly
compliedwith:

(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,andthedurationandarrangementofworkingtime;and
(c)The employer shall formulate and implement, subject to the approval
andsupervisionofcompetentauthorities,acontinuingprogramfortraining
andskillsacquisitionofthechild.
Intheaboveexceptionalcaseswhereanysuchchildmaybeemployed,the
employershallfirstsecure,beforeengagingsuchchild,aworkpermitfrom
the Department of Labor and Employment which shall ensure observance
oftheaboverequirements.
The Department of Labor and Employment shall promulgate rules and
regulationsnecessaryfortheeffectiveimplementationofthisSection."

Sec. 2.All laws, decrees, executive orders, rules and regulations or parts
thereof contrary to, or inconsistent with this Act are hereby modified or
repealedaccordingly.
Sec. 3.This Act shall take effect fifteen (15) days after its complete
publicationintheOfficialGazetteorinatleasttwo(2)nationalnewspapers
orgeneralcirculationwhichevercomesearlier.

Approved:November9,1993

d. AllowedEmployment;RequirementProgramApproval

NittoEnterprisesv.NLRC,258SCRA654(1995)

e. TermsandConditionsofEmployment,Art.61,72
ART. 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 percent of the applicable minimum wage, may be
enteredintoonlyinaccordancewithapprenticeshipprogramsdulyapproved
by the Secretary of Labor and Employment. The Department shall develop
standard model programs of apprenticeship. (As amended by Section 1,
ExecutiveOrderNo.111,December24,1986).

ART. 72. Apprentices without compensation. The Secretary of Labor and


Employmentmayauthorizethehiringofapprenticeswithoutcompensation
whose training on the job is required by the school or training program
curriculumorasrequisiteforgraduationorboardexamination.

3. Costs,Art.71
ART.71.Deductibilityoftrainingcosts.Anadditionaldeductionfromtaxable
income of onehalf (1/2) of the value of labor training expenses incurred for
developingtheproductivityandefficiencyofapprenticesshallbegrantedtothe
personorenterpriseorganizinganapprenticeshipprogram:Provided,Thatsuch
program is duly recognized by the Department of Labor and Employment:
Provided, further, That such deduction shall not exceed ten (10%) percent of
direct labor wage: and Provided, finally, That the person or enterprise who
wishestoavailhimselforitselfofthisincentiveshouldpayhisapprenticesthe
minimumwage.

4. Enforcement,Arts.65,66,67

ART. 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
authorizedrepresentativeshallinvestigateanyviolationofanapprenticeship
agreement pursuant to such rules and regulations as may be prescribed by
theSecretaryofLaborandEmployment.
ART.66.AppealtotheSecretaryofLaborandEmployment.Thedecisionof
theauthorizedagencyoftheDepartmentofLaborandEmploymentmaybe
appealedbyanyaggrievedpersontotheSecretaryofLaborandEmployment
withinfive(5)daysfromreceiptofthedecision.ThedecisionoftheSecretary
ofLaborandEmploymentshallbefinalandexecutory.
ART. 67. Exhaustion of administrative remedies. No person shall institute
anyactionfortheenforcementofanyapprenticeshipagreementordamages
for breach of any such agreement, unless he has exhausted all available
administrativeremedies.
5. Learners

a. Definition,RA7796,Sec.4

(n) Learners" refer to persons hired as trainees in semiskills and other


industrial occupations which are nonapprenticeable. Learnersship programs
mustbeapprovedbytheAuthority;

b. AllowedEmployment,Art.74(b)

ART. 74. When learners may be hired. Learners may be employed when no
experiencedworkersareavailable,theemploymentoflearnersisnecessaryto
prevent curtailment of employment opportunities, and the employment does
notcreateunfaircompetitionintermsoflaborcostsorimpairorlowerworking
standards.

c. TermsandConditionsofEmployment,Arts.75,76

ART. 75. Learnership agreement. Any employer desiring to employ


learners shall enter into a learnership agreement with them, which
agreementshallinclude:
(a)Thenamesandaddressesofthelearners;
(b)Thedurationofthelearnershipperiod,whichshallnotexceedthree(3)
months;
(c) The wages or salary rates of the learners which shall begin at not less
thanseventyfivepercent(75%)oftheapplicableminimumwage;and
(d) A commitment to employ the learners if they so desire, as regular
employeesuponcompletionofthelearnership.Alllearnerswhohavebeen
allowedorsufferedtoworkduringthefirsttwo(2)monthsshallbedeemed
regularemployeesiftrainingisterminatedbytheemployerbeforetheend
ofthestipulatedperiodthroughnofaultofthelearners.
The learnership agreement shall be subject to inspection by the Secretary
ofLaborandEmploymentorhisdulyauthorizedrepresentative.
ART.76.Learnersinpiecework.Learnersemployedinpieceorincentive
ratejobsduringthetrainingperiodshallbepaidinfullfortheworkdone.

6. DifferentlyAbledWorker(Handicapped),RA7277

a. Definition,RA7277,Sec.4(a)(b)(c)(d)

Sec. 4.Definition of Terms. For purposes of this Act, these terms are
definedasfollows:
(a)Disabled persons are those suffering from restriction or different
abilities,asaresultofamental,physicalorsensoryimpairment,toperform
an activity in the manner or within the range considered normal for a
humanbeing;

(b)Impairment is any loss, diminution or aberration of psychological,


physiological,oranatomicalstructureorfunction;
(c)Disability shall mean 1) a physical or mental impairment that
substantiallylimitsoneormorepsychological,physiologicaloranatomical
functionofanindividualoractivitiesofsuchindividual;2)arecordofsuch
animpairment;or3)beingregardedashavingsuchanimpairment;
(d)Handicapreferstoadisadvantageforagivenindividual,resultingfrom
an impairment or a disability, that limits or prevents the function or
activity,thatisconsiderednormalgiventheageandsexoftheindividual;

b. PolicyDeclaration,RA7277,Sec.2

Sec. 2.Declaration of Policy The grant of the rights and privileges for
disabledpersonsshallbeguidedbythefollowingprinciples:
(a)DisabledpersonsarepartofPhilippinesociety,thustheStateshallgive
fullsupporttotheimprovementofthetotalwellbeingofdisabledpersons
andtheirintegrationintothemainstreamofsociety.Towardthisend,the
Stateshalladoptpoliciesensuringtherehabilitation,selfdevelopmentand
selfrelianceofdisabledpersons.Itshalldeveloptheirskillsandpotentials
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,communityandallgovernmentandnongovernmentorganizations.
Disabledpersons'rightsmustneverbeperceivedaswelfareservicesbythe
Government.
(c)The rehabilitation of the disabled persons shall be the concern of the
Governmentinordertofostertheircapacitytoattainamoremeaningful,
productiveandsatisfyinglife.Toreachouttoagreaternumberofdisabled
persons,therehabilitationservicesandbenefitsshallbeexpandedbeyond
the traditional urbanbased centers to community based programs, that
will ensure full participation of different sectors as supported by national
andlocalgovernmentagencies.
(d)TheStatealsorecognizestheroleoftheprivatesectorinpromotingthe
welfare of disabled persons and shall encourage partnership in programs
thataddresstheirneedsandconcerns.
(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
disabledpersons.
c.
Coverage,RA7277,Sec.3

Sec. 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
theobjectivesofthisAct.

d.
RightsandPrivileges,RA7277,Secs.5,6,7

Sec. 5.Equal Opportunity for Employment. No disable person shall be


denied access to opportunities for suitable employment. A qualified
disabled employee shall be subject to the same terms and conditions of
employment and the same compensation, privileges, benefits, fringe
benefits,incentivesorallowancesasaqualifiedablebodiedperson.
Fivepercent(5%)ofallcasualemergencyandcontractualpositionsinthe
Departments of Social Welfare and Development; Health; Education,

CultureandSports;andothergovernmentagencies,officesorcorporations
engagedinsocialdevelopmentshallbereservedfordisabledpersons.
Sec. 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
atmosphereandefficientproduction.
Sec. 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
performanceofjoboperationsintheparticularoccupationforwhichthey
are hired; Provided, further, That after the lapse of the period of
apprenticeship, if found satisfactoryin the job performance, theyshall be
eligibleforemployment.

Bernardov.NLRC&FEBTC,310SCRA186(1999)

e. Discrimination,RA7277,Secs.32,33

Sec. 32.Discrimination on Employment. No entity, whether public or


private,shalldiscriminateagainstaqualifieddisabledpersonbyreasonof
disabilityinregardtojobapplicationprocedures,thehiring,promotion,or
discharge of employees, employee compensation, job training, and other
terms, conditions, and privileges of employment. The following constitute
actsofdiscrimination:
(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


criteriathatscreenoutortendtoscreenoutadisabledpersonunlesssuch
standards,testsorotherselectioncriteriaareshowntobejobrelatedfor
thepositioninquestionandareconsistentwithbusinessnecessity;
(c)Utilizingstandards,criteria,ormethodsofadministrationthat:
(1)havetheeffectofdiscriminationonthebasisofdisability;or

(2)perpetuate the discrimination of others who are subject to common


administrativecontrol.
(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 nondisabled person
work
is
entitled;
performing
the
same

(e)Favoring a nondisabled employee over a qualified disabled employee


with respect to promotion, training opportunities, study and scholarship
grants,solelyonaccountofthelatter'sdisability;
(f)Reassigningortransferringadisabledemployeetoajoborpositionhe
cannotperformbyreasonofhisdisability;
(g)Dismissingorterminatingtheservicesofadisabledemployeebyreason
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
providereasonableaccommodationsfordisabledpersons;
(h)Failingtoselectoradministerinthemosteffectivemanneremployment
tests which accurately reflect the skills, aptitude or other factor of the
disabledapplicantoremployeethatsuchtestspurportstomeasure,rather
than the impaired sensory, manual or speaking skills of such applicant or
employee,ifany;and
(i)Excluding disabled persons from membership in labor unions or similar
organizations.
Sec. 33.Employment Entrance Examination. Upon an offer of
employment, a disabled applicant may be subjected to medical
examination,onthefollowingoccasions:
(a)allenteringemployeesaresubjectedtosuchanexaminationregardless
ofdisability;

(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)firstaidandsafetypersonnelmaybeinformed,whenappropriate,ifthe
disabilitymayrequireemergencytreatment;
(3)government officials investigating compliance with this Act shall be
providedrelevantinformationonrequest;and
(4)the results of such examination are used only in accordance with this
Act.
f.Enforcement,Secs.44,45,46
Sec.44.EnforcementbytheSecretaryofJustice.
(a)DenialofRight
(1)Duty to Investigate the Secretary of Justice shall investigate alleged
violationsofthisAct,andshallundertakeperiodicreviewsofcomplianceof
coveredentitiesunderthisAct.
(b)Potential Violations If the Secretary of Justice has reasonable cause
tobelievethat
(1)any person or group of persons is engaged in a pattern or practice of
discriminationunderthisAct;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
appropriatecourt.
Sec.45.AuthorityofCourt.Thecourtmaygrantanyequitablereliefthat
suchcourtconsiderstobeappropriate,including,totheextentrequiredby
thisAct:
(a)grantingtemporary,preliminaryorpermanentrelief;

(b)providinganauxiliaryaidorservice,modificationofpolicy,practiceor
procedure,oralternativemethod;and
(c)making facilities readily accessible to and usable by individuals with
disabilities.

Sec.46.PenalClause.(a)Anypersonwhoviolatesanyprovisionofthis
Actshallsufferthefollowingpenalties:
(1)for the first violation, a fine of not less than Fifty thousand pesos
(P50,000.00)butnotexceedingOnehundredthousandpesos(P100,000.00)
orimprisonmentofnotlessthansix(6)monthsbutnotmorethantwo(2)
years,orbothatthediscretionofthecourt;and

(2)for any subsequent violation, a fine of not less than One hundred
thousand pesos (P100,000.00) but not exceeding Two hundred thousand
pesos (P200,000.00) or imprisonment for not less than two (2) years but
notmorethansix(6)years,orbothatthediscretionofthecourt.
(b)Anypersonwhoabusestheprivilegesgrantedhereinshallbepunished
withimprisonmentofnotlessthansix(6)monthsorafineofnotlessthan
Five thousand pesos (P5,000.00), but not more than Fifty thousand pesos
(P50,000.00),orboth,atthediscretionofthecourt.

(c)If the violator is a corporation, organization or any similar entity, the


officialsthereofdirectlyinvolvedshallbeliabletherefor.
(d)If the violator is an alien or a foreigner, he shall be deported
immediately after service of sentence without further deportation
proceedings.
NOTES:
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Habol:
AlienEmploymentRegulation

Reference: Arts. 12 (e), 4042; Omnibus Rules, Book I, Rule XIV, DO 12, 16
Nov. 2001; Omnibus Guidelines for Issuance of Employment Permits to
ForeignNationals);Const.,Art.XII,Sec.12

LaborCode
Art.12(e)Toregulatetheemploymentofaliens,includingtheestablishment
ofaregistrationand/orworkpermitsystem;
ART. 40. Employment permit of nonresident aliens. Any alien seeking
admissiontothePhilippinesforemploymentpurposesandanydomesticor
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 nonresident alien or to the
applicantemployerafteradeterminationofthenonavailabilityofaperson
in the Philippines who is competent, able and willing at the time of
applicationtoperformtheservicesforwhichthealienisdesired.

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.
ART.41.Prohibitionagainsttransferofemployment.(a)Aftertheissuance
of an employment permit, the alien shall not transfer to another job or
changehisemployerwithoutpriorapprovaloftheSecretaryofLabor.
(b)Anynonresidentalienwhoshalltakeupemploymentinviolationofthe
provision of this Title and its implementing rules and regulations shall be
punished in accordance with the provisions of Articles 289 and 290 of the
LaborCode.
Inaddition,thealienworkershallbesubjecttodeportationafterserviceof
hissentence.
ART.42.Submissionoflist.Anyemployeremployingnonresidentforeign
nationals on the effective date of this Code shall submit a list of such
nationals to the Secretary of Labor within thirty (30) days after such date
indicating their names, citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The Secretary of Labor shall
thendetermineiftheyareentitledtoanemploymentpermit.

OmnibusRules,BookI,RuleXIV

RULE
XIV
EmploymentofAliens
SECTION 1. Coverage. This Rule shall apply to all aliens employed or
seeking employment in the Philippines, and their present or prospective
employers.
SECTION2.Submissionoflist.Allemployersemployingforeignnationals,
whetherresidentornonresidentshallsubmitalistofsuchnationalstothe
Bureau indicating their names, citizenship, foreign and local addresses;
natureofemploymentandstatusofstayinthePhilippines.
SECTION 3. Registration of resident aliens. All employed resident aliens
shallregisterwiththeBureauundersuchguidelinesasmaybeissuedbyit.

SECTION 4. Employment permit required for entry. No alien seeking


employment, whether on resident or nonresident status, may enter the
Philippines without first securing an employment permit from the
DepartmentofLaborandEmployment.Ifanalienentersthecountryundera
nonworking visa and wishes to be employed thereafter, he may only be
allowedtobeemployeduponpresentationofadulyapprovedemployment
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,hisworkexperienceandotherdatashowingthathepossesses
hightechnicalskillsinhistradeorprofession;
(b)Contractofemploymentbetweentheemployerandtheprincipalwhich
shallembodythefollowing,amongothers:
(1) That the nonresident alienworker shall complywith allapplicable laws
andrulesandregulationsofthePhilippines;
(2) That the nonresident alien worker and the employer shall bind
themselvestotrainatleasttwo(2)Filipinounderstudiesforaperiodtobe
determinedbytheSecretaryofLaborandEmployment;and
(3) That he shallnot engage in any gainfulemployment otherthan that for
whichhewasissuedapermit.
(c)Adesignationbytheemployerofatleasttwo(2)understudiesforevery
alienworker.Suchunderstudiesmustbethemostrankingregularemployees
in the section or department for which the expatriates are being hired to
ensuretheactualtransferoftechnology.
SECTION6.Issuancesofemploymentpermit.TheSecretaryofLaborand
Employmentmayissueanemploymentpermittotheapplicantbasedon:
a) Compliance by the applicant and his employer with the requirements of
Section2hereof;

b) Report of the Bureau Director as to the availability or nonavailability of


anypersoninthePhilippineswho iscompetent,able,andwillingtodothe
jobforwhichtheservicesoftheapplicantaredesired;
c)Hisassessmentastowhetherornottheemploymentoftheapplicantwill
redoundtothenationalinterest;
d) Admissibility of the alien as certified by the Commission on Immigration
andDeportation;
e) The recommendation of the Board of Investments or other appropriate
governmentagenciesiftheapplicantwillbeemployedinpreferredareasof
investments or in accordance with imperatives of economic developments;
and
f)PaymentsofaP100.00fee.
SECTION 7. Duration of employment permit. Subject to renewal upon
showingofgoodcause,theemploymentpermitshallbevalidforaminimum
period of one (1) year starting from the date of its issuance unless sooner
revoked by the Secretary of Labor and Employment for violation of any
provisionsoftheCodeoroftheseRules.
SECTION 8. Advice to Commission on Immigration and Deportation. The
BureaushalladvicetheCommissiononImmigrationandDeportationonthe
issuanceofanemploymentpermittoanapplicant.
SECTION 9. Understudy Training Program. The employer shall submit a
training program for his understudies to the Bureau within thirty (30) days
upon arrival of the alien workers. The supervision of the training program
shall be the responsibility of the Bureau and shall be in accordance with
standardsestablishedbytheSecretaryofLaborandEmployment.
Omnibus Guidelines for Issuance of Employment Permits to Foreign
NationalsDO12,November12,2001.
DEPARTMENT
(Seriesof2001)
.
.

ORDER

NO.

12

OMNIBUS GUIDELINES FOR THE ISSUANCE OF EMPLOYMENT PERMITS TO


FOREIGN
NATIONALS.
.
.
Pursuant to the provisions of Articles 5 and 40 of P. D. 442, as amended,
the provisions of Rule XIV, Book I of its Implementing Rules and
Regulations,Section17(5),Chapter4,TitleVIIoftheAdministrativeCodeof
1987, the following Omnibus Guidelines for the issuance of Employment
Permits
are
hereby
promulgated:

Rule
I
CoverageandExemption

1.ThefollowingshallapplyforAlienEmploymentPermit(AEP):
1.1. All foreign nationals seeking admission to the Philippines for the
purpose
of
employment;

1.2. Missionaries or religious workers who intend to engage in gainful


employment;

1.3. Holders of Special Investors Resident Visa (SIRV), Special Retirees


Resident Visa (SRRV), Treaty Traders Visa (9d) or Special Nonimmigrant
Visa(47(a)2),whooccupyanyexecutive,advisory,supervisory,ortechnical
position
in
any
establishment;

1.4. Agencies, organizations or individuals whether public or private, who


securetheservicesofforeignprofessionalstopracticetheirprofessionsin
thePhilippinesinthePhilippinesunderreciprocityandotherinternational
agreements;

1.5.NonIndoChineseRefugeeswhoareasylumseekersandgivenrefugee
status by the United Nations High Commissioner on Refugees (UNHCR) or
the Department of Justice under DOJ Department Order No. 94, series of
1998;

1.6.ResidentforeignnationalsseekingemploymentinthePhilippines.
2. Exemption. The following categories of foreign nationals are exempt
fromsecuringanemploymentpermitinordertoworkinthePhilippines.

2.1Allmembersofthediplomaticservicesandforeigngovernmentofficials
accredited
by
the
Philippine
Government;
2.2OfficersandstaffofinternationalorganizationsofwhichthePhilippine
governmentisacooperatingmember,andtheirlegitimatespousedesiring
to
work
in
the
Philippines;
2.3ForeignnationalselectedasmembersoftheGoverningboardwhodo
not occupy any other position, but have only voting rights in the
corporation;
and
2.4 All foreign nationals granted exemption by special laws and all other
lawsthatmaybepromulgatedbytheCongress.
Rule
II
ProceduresintheProcessingofApplicationsforAEP

1.AllforeignnationalsseekingemploymentinthePhilippinesunderRule1
hereofortheirprospectiveemployers,shallfiletheirapplicationswiththe
DOLERegionalOfficehavingjurisdictionovertheintendedplaceofwork.
2. Fees The applicant shall pay filing, publication and permit fees in the
amount of Eight thousand pesos (P8,000.00) for each application for AEP
with a validity of one (1) year. Three thousand pesos (P3,000.00) shall be
chargedforeveryadditionalyearofvalidityorafractionthereof.
3.AnAEPshallbeissuedbasedonthefollowing:
3.1. Compliance bye the applicant employer or the foreign national with
the
substantive
and
documentary
requirements;

3.2.DeterminationoftheDOLESecretarythatthereisnoFilipinonational
whoiscompetent,ableandwillingtodothejobforwhichtheservicesof
the
applicant
is
desired;

3.3.AssessmentoftheDOLESecretarythattheemploymentoftheforeign
nationalwillredoundtonationalbenefit;
4. Denial of Application for AEP An application for AEP may be denied
based ontheground of noncompliance with any of the requirements for
issuance of AEP or for misrepresentation of facts in the application or
submissionoffalsifiedortampereddocuments.

Foreign nationals whose applications have been denied shall not be


allowedtoreapplyinanyoftheDOLERegionalOffices.
5. Renewal of Permit An application for renewal of AEP shall be filed at
least fifteen (15) days before its expiration. For elective officers,
applications for renewal shall be filed upon election or at least thirty (30)
daysbeforetheeffectivityoftheapplicant'stermofofficeifthesucceeding
term
of
office
is
ascertained.

Failure to file the application for renewal of permit within the prescribed
period shall be subject to fines of Five Thousand Pesos (5,000.00), if filed
withinsix(6)monthsaftertheprescribedperiodandTenThousandPesos
(10,000.00), if filed after six (6) months. Failure to renew the AEP within
one (1) year after its expiration shall be a cause for its revocation or
cancellation.
6. The employer shall notify the DOLERO which issued the permit of the
date of the assumption to duty of the foreign national within thirty (30)
daysfromissuanceofthepermit.
7.ValidityofPermitsThevalidityofpermitsshallbeasfollows:
7.1.Asageneralrule,thevalidityofpermitsshallbeforaperiodofone(1)
year, unless the employment contract, consultancy services, or other
modesofengagementortermofofficeforelectiveofficers,providesfora
longer
period.

7.2.Theeffectivityoftherenewalshallbeonthedayaftertheexpiration
ofthepreviouspermit,regardlessofwhetherornottherenewalisgranted
before or after the expiration of the previous permit.

7.3. As a general rule, the permits shall be valid only for the positionand
the employer for which it was issued, except in case of foreign nationals
who are holders of multiple positions in one corporation, where one AEP
shall
be
valid
for
such
multiple
positions.

7.4. The permits of resident foreign nationals shall be valid for multiple
employers, regardless of the nature and duration of their employment,
providedthattheyshallreportchangesintheiremploymentstatusandthe

identity of their employers to the DOLE Regional Office which has issued
thepermit.
Rule
III
Revocation/CancellationofEmploymentPermitsIssued

1.Thepermitsissuedmay,motupropriooruponapetition,becancelledor
revokedbasedonanyofthefollowinggrounds:
1.1Misrepresentationoffactsorfalsificationofthedocumentssubmitted;

1.2 The foreign national has been declared as an undesirable alien by


competent
authorities;

1.3 Noncompliance with the conditions for which the AEP was issued;

1.4FailuretorenewAEPwithinone(1)yearafteritsexpiration.
2. Petitions for cancellation or revocation of permits issued shall be
resolvedwithinthirty(30)calendarsfromreceiptthereof.
3. Any aggrieved party may file a Motion for Reconsideration and/or
AppealandthesameshallberesolvedbasedonParagraph4ofthisRule.
4. Remedies in Case of Denial or Cancellation A Motion for
Reconsideration maybe filed by an aggrieved party within seven (7)
calendar days after receipt of the Order of Denial/Cancellation. The DOLE
RegionalDirectorshallresolvethesaidMotionforReconsiderationwithin
ten(10)calendardaysfromreceiptthereof.
A motion for Reconsideration filed after the period of seven (7) calendar
days but within ten (10) calendar days after receipt of the denial shall be
treatedasanappeal.
An appeal from the decision of the DOLE Regional Director may be filed
withtheSecretaryoflaborandEmploymentwithinten(10)calendardays
fromreceiptofanOrderfromtheDOLERegionalDirector.Thedecisionof
the Secretary of Labor and Employment shall be final and unappealable.

Rule
PenalandTransitoryProvisions

IV

1.TheDOLERegionalDirectors,afterduenoticeandhearing,shallhavethe
power to order and impose a fine of Five Thousand Pesos (P5,000.00) on
foreignnationalsfoundworkingwithoutanAEPforlessthanone(1)year
andTenThousandPesos(P10,000.00)formorethanone(1)year.
2.Allapplicationsforemploymentpermit/certificatespendingattheDOLE
ROupontheeffectivityoftheseGuidelinesshallbecoveredandprocessed
undertheprovisionsoftheseGuidelines.
3. Holders of provisional and extended AEPs issued under Memorandum
dated 24 August 2001 regarding Alternative Interim Measures for the
IssuanceofAlienEmploymentPermits,shallapplyforanAEPpursuantto
these Guidelines on or before the expiration of the provisional and
extendedAEP.
4.Foreignnationalswhoarealreadyworkinginthecountryandwhohave
not yet secured the requisite employment permit shall have ninety (90)
daysfromtheeffectivityoftheseGuidelinestosecurethesaidemployment
permitwithoutpenalty.
Rule
MiscellaneousProvisions

1. Manual of Operations. The Bureau of Local Employment shall issue a


ManualofOperationstoimplementtheprovisionsoftheseGuidelines.
2.SeparabilityClause.IfanyprovisionorpartofthisDepartmentOrderor
theapplicationthereoftoanypersonorcircumstanceisheldinvalidbythe
Courts, the remaining valid provisions of this Department Order shall not
beaffected.
3.RepealingClause.Allguidelines,rulesandregulationsandagreements
inconsistentherewithareherebyrepealedormodifiedaccordingly.
4.Effectivity.Theseguidelinesshalltakeeffect fifteen(15)daysafterits
publicationintwo(2)newspapersofgeneralcirculation.
Constitution,Art.XII,Sec.12

Section 12. The State shall promote the preferential use of Filipino labor,
domestic materials and locally produced goods, and adopt measures that
helpmakethemcompetitive.

F. ConditionsofWork

Reference:Arts.8290;OmnibusRules,BookIII,Rulesl,lA,ll

TitleI
WORKINGCONDITIONS
ANDRESTPERIODS

ChapterI
HOURSOFWORK

ART.82.Coverage.TheprovisionsofthisTitleshallapplytoemployeesinall
establishments and undertakings whether for profit or not, but not to
governmentemployees,managerialemployees,fieldpersonnel,membersof
thefamilyoftheemployerwhoaredependentonhimforsupport,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.
Asusedherein,"managerialemployees"refertothosewhoseprimaryduty
consists of the management of the establishment in which they are
employedorofadepartmentorsubdivisionthereof,andtootherofficersor
membersofthemanagerialstaff.
"Field personnel" shall refer to nonagricultural employees who regularly
perform their duties away from the principal place of business or branch
officeoftheemployerandwhoseactualhoursofworkinthefieldcannotbe
determinedwithreasonablecertainty.
ART.83.Normalhoursofwork.Thenormalhoursofworkofanyemployee
shallnotexceedeight(8)hoursaday.
Healthpersonnelincitiesandmunicipalitieswithapopulationofatleastone
million(1,000,000)orinhospitalsandclinicswithabedcapacityofatleast

one hundred (100) shall hold regular office hours for eight (8) hours a day,
for five (5) days a week, exclusive of time for meals, except where the
exigenciesoftheservicerequirethatsuchpersonnelworkforsix(6)daysor
fortyeight (48) hours, in which case, they shall be entitled to an additional
compensationofatleastthirtypercent(30%)oftheirregularwageforwork
onthesixthday.ForpurposesofthisArticle,"healthpersonnel"shallinclude
resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists,
midwives,attendantsandallotherhospitalorclinicpersonnel.
ART.84.Hoursworked.Hoursworkedshallinclude(a)alltimeduringwhich
an employee is required to be on duty or to be at a prescribed workplace;
and(b)alltimeduringwhichanemployeeissufferedorpermittedtowork.
Rest periods of short duration during working hours shall be counted as
hoursworked.
ART.85.Mealperiods.SubjecttosuchregulationsastheSecretaryofLabor
mayprescribe,itshallbethedutyofeveryemployertogivehisemployees
notlessthansixty(60)minutestimeofffortheirregularmeals.
ART.86.Nightshiftdifferential.Everyemployeeshallbepaidanightshift
differential of not less than ten percent (10%) of his regular wage for each
hourofworkperformedbetweentenoclockintheeveningandsixoclockin
themorning.
ART.87.Overtimework.Workmaybeperformedbeyondeight(8)hoursa
dayprovidedthattheemployeeispaidfortheovertimework,anadditional
compensation equivalent to his regular wage plus at least twentyfive
percent(25%)thereof.Workperformedbeyondeighthoursonaholidayor
rest dayshall be paid an additional compensation equivalent to the rate of
thefirsteighthoursonaholidayorrestdayplusatleastthirtypercent(30%)
thereof.
ART. 88. Undertime not offset by overtime. Undertime work on any
particular day shall not be offset by overtime work on any other day.
Permissiongiventotheemployeetogoonleaveonsomeotherdayofthe
week shall not exempt the employer from paying the additional
compensationrequiredinthisChapter.

ART.89.Emergencyovertimework.Anyemployeemayberequiredbythe
employertoperformovertimeworkinanyofthefollowingcases:chanrobles
virtuallawlibrary
(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
imminentdangertopublicsafetyduetoanactualorimpendingemergency
inthelocalitycausedbyseriousaccidents,fire,flood,typhoon,earthquake,
epidemic,orotherdisasterorcalamity;
(c)Whenthereisurgentworktobeperformedonmachines,installations,or
equipment,inordertoavoidseriouslossordamagetotheemployerorsome
othercauseofsimilarnature;
(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
businessoroperationsoftheemployer.
Any employee required to render overtime work under this Article shall be
paidtheadditionalcompensationrequiredinthisChapter.
ART. 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,withoutdeductiononaccountoffacilitiesprovidedbytheemployer.
BOOK
ConditionsofEmployment
RULE
HoursofWork

THREE
I

SECTION 1. General statement on coverage. The provisions of this Rule


shallapplytoallemployeesinallestablishmentsandundertakings,whether

operated for profit or not, except to those specifically exempted under


Section2hereof.
SECTION 2. Exemption. The provisions ofthis Ruleshall not apply to the
followingpersonsiftheyqualifyforexemptionundertheconditionssetforth
herein:
(a)GovernmentemployeeswhetheremployedbytheNationalGovernment
or any of its political subdivision, including those employed in government
ownedand/orcontrolledcorporations;
(b)Managerialemployees,iftheymeetallofthefollowingconditions:
(1) Their primary duty consists of the management of the establishment in
whichtheyareemployedorofadepartmentorsubdivisionthereof.
(2)Theycustomarilyandregularlydirecttheworkoftwoormoreemployees
therein.
(3)Theyhavetheauthoritytohireorfireemployeesoflowerrank;ortheir
suggestions and recommendations as to hiring and firing and as to the
promotion or any other change of status of other employees, are given
particularweight.
(c) Officers or members of a managerial staff if they perform the following
dutiesandresponsibilities:
(1)Theprimarydutyconsistsoftheperformanceofworkdirectlyrelatedto
managementpoliciesoftheiremployer;
(2)Customarilyandregularlyexercisediscretionandindependentjudgment;
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,specialassignmentsandtasks;and

(4)Whodonotdevotemorethan20percentoftheirhoursworkedinawork
week to activities which are not directly and closely related to the
performanceoftheworkdescribedinparagraphs(1),(2)and(3)above.
(d)Domesticservantsandpersonsinthepersonalserviceofanotherifthey
performsuchservicesintheemployer'shomewhichareusuallynecessaryor
desirable for the maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as well as the
membersofhisemployer'shousehold.
(e)Workerswhoarepaidbyresults,includingthosewhoarepaidonpiece
work,"takay,""pakiao"ortaskbasis,andothernontimeworkiftheiroutput
ratesareinaccordancewiththestandardsprescribedunderSection8,Rule
VII,BookThreeoftheseregulations,orwheresuchrateshavebeenfixedby
the Secretary of Labor and Employment in accordance with the aforesaid
Section.
(f)Nonagriculturalfieldpersonneliftheyregularlyperformtheirdutiesaway
fromtheprincipalorbranchofficeorplaceofbusinessoftheemployerand
whose actual hours of work in the field cannot be determined with
reasonablecertainty.
SECTION 3. Hours worked. The following shall be considered as
compensablehoursworked:
(a)Alltimeduringwhichanemployeeisrequiredtobeondutyortobeat
theemployer'spremisesortobeataprescribedworkplace;and
(b)Alltimeduringwhichanemployeeissufferedorpermittedtowork.
SECTION4.Principlesindetermininghoursworked.Thefollowinggeneral
principles shall govern in determining whether the time spent by an
employeeisconsideredhoursworkedforpurposesofthisRule:
(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
labororinvolvephysicalormentalexertion.
(b)Anemployeeneednotleavethepremisesoftheworkplaceinorderthat
hisrestperiodshallnotbecounted,itbeingenoughthathestopsworking,

mayrestcompletelyandmayleavehisworkplace,togoelsewhere,whether
withinoroutsidethepremisesofhisworkplace.
(c)Iftheworkperformedwasnecessary,oritbenefitedtheemployer,orthe
employee could not abandon his work at the end of his normal working
hoursbecausehehadnoreplacement,alltimespentforsuchworkshallbe
considered as hours worked, if the work was with the knowledge of his
employerorimmediatesupervisor.
(d)Thetimeduringwhichanemployeeisinactivebyreasonofinterruptions
inhisworkbeyondhiscontrolshallbeconsideredworkingtimeeitherifthe
imminence of the resumption of work requires the employee's presence at
theplaceofworkoriftheintervalistoobrieftobeutilizedeffectivelyand
gainfullyintheemployee'sowninterest.
SECTION5.Waitingtime.(a)Waitingtimespentbyanemployeeshallbe
considered as working time if waiting is an integral part of his work or the
employeeisrequiredorengagedbytheemployertowait.
(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
gainfullyforhisownpurposeshallbeconsideredasworkingwhileoncall.An
employee who is not required to leave word at his home or with company
officialswherehemaybereachedisnotworkingwhileoncall.
SECTION6.Lectures,meetings,trainingprograms.Attendanceatlectures,
meetings,trainingprograms,andothersimilaractivitiesshallnotbecounted
asworkingtimeifallofthefollowingconditionsaremet:
(a)Attendanceisoutsideoftheemployee'sregularworkinghours;
(b)Attendanceisinfactvoluntary;and
(c) The employee does not perform any productive work during such
attendance.
SECTION 7. Meal and Rest Periods. Every employer shall give his
employees,regardlessofsex,notlessthanone(1)hourtimeoffforregular
meals, except in the following cases when a meal period of not less than
twenty (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 nonmanual work in nature or does not involve
strenuousphysicalexertion;
(b) Where the establishment regularly operates not less than sixteen (16)
hoursaday;
(c)Incaseofactualorimpendingemergenciesorthereisurgentworktobe
performed on machineries, equipment or installations to avoid serious loss
whichtheemployerwouldotherwisesuffer;and
(d)Wheretheworkisnecessarytopreventseriouslossofperishablegoods.
Rest periods or coffee breaks running from five (5) to twenty (20) minutes
shallbeconsideredascompensableworkingtime.
SECTION 8. Overtime pay. Any employee covered by this Rule who is
permitted or required to work beyond eight (8) hours on ordinary working
daysshallbepaidanadditionalcompensationfortheovertimeworkinthe
amount equivalent to his regular wage plus at least twentyfive percent
(25%)thereof.
SECTION9.Premiumandovertimepayforholidayandrestdaywork.(a)
ExceptemployeesreferredtounderSection2ofthisRule,anemployeewho
ispermittedorsufferedtoworkonspecialholidaysoronhisdesignatedrest
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
holidaysandrestdaysnotfallingonregularholidays,anemployeeshallbe
paidanadditionalcompensationfortheovertimeworkequivalenttohisrate
for the first eight hours on a special holiday or rest day plus at least thirty
percent(30%)thereof.
(b)Employeesofpublicutilityenterprisesaswellasthoseemployedinnon
profit institutions and organizations shall be entitled to the premium and
overtimepayprovidedherein,unlesstheyarespecificallyexcludedfromthe
coverageofthisRuleasprovidedinSection2hereof.

(c)Thepaymentofadditionalcompensationforworkperformedonregular
holidaysshallbegovernedbyRuleIV,BookThree,oftheseRules.
SECTION10.Compulsoryovertimework.Inanyofthefollowingcases,an
employermayrequireanyofhisemployeestoworkbeyondeight(8)hoursa
day, provided that the employee required to render overtime work is paid
theadditionalcompensationrequiredbytheseregulations:
(a) When the country is at war or when any other national or local
emergencyhasbeendeclaredbyCongressortheChiefExecutive;
(b)Whenovertimeworkisnecessarytopreventlossoflifeorproperty,orin
case of imminent danger to public safety due to actual or impending
emergencyinthelocalitycausedbyseriousaccident,fire,floods,typhoons,
earthquake,epidemicorotherdisasterorcalamities;
(c)Whenthereisurgentworktobeperformedonmachines,installations,or
equipment,inordertoavoidseriouslossordamagetotheemployerorsome
othercausesofsimilarnature;
(d) When the work is necessary to prevent loss or damage to perishable
goods;
(e)Whenthecompletionorcontinuationofworkstartedbeforethe8thhour
is necessary to prevent serious obstruction or prejudice to the business or
operationsoftheemployer;or
(f) When overtime work is necessary to avail of favorable weather or
environmental conditions where performance or quality of work is
dependentthereon.
In cases not falling within any of these enumerated in this Section, no
employeemaybemadetoworkbeyondeighthoursadayagainsthiswill.
RULE
HoursofWorkofHospitalandClinicPersonnel
SECTION1.Generalstatementoncoverage.ThisRuleshallapplyto:

IA

(a)Allhospitalsandclinics,includingthose withabedcapacityoflessthan
one hundred (100) which are situated in cities or municipalities with a
populationofonemillionormore;and
(b)Allhospitalsandclinicswithabedcapacityofatleastonehundred(100),
irrespective of the size of the population of the city or municipality where
theymaybesituated.
SECTION2.HospitalsorclinicswithinthemeaningofthisRule.Theterms
"hospitals" and "clinics" as used in this Rule shall mean a place devoted
primarily to the maintenance and operation of facilities for the diagnosis,
treatment and care of individuals suffering from illness, disease, injury, or
deformity,orinneedofobstetricalorothermedicalandnursingcare.Either
termshallalsobeconstruedasanyinstitution,building,orplacewherethere
are installed beds, or cribs, or bassinets for twentyfour (24) hours use or
longer by patients in the treatment of disease, injuries, deformities, or
abnormal physical and mental states, maternity cases or sanitorial care; or
infirmaries, nurseries, dispensaries, and such other similar names by which
theymaybedesignated.
SECTION 3. Determination of bed capacity and population. (a) For
purposesofdeterminingtheapplicabilityofthisRule,theactualbedcapacity
of the hospital or clinic at the time of such determination shall be
considered, regardless of the actual or bed occupancy. The bed capacity of
hospitalorclinicasdeterminedbytheBureauofMedicalServicespursuant
to Republic Act No. 4226, otherwise known as the Hospital Licensure Act,
shallprimafaciebeconsideredastheactualbedcapacityofsuchhospitalor
clinic.
(b)Thesizeofthepopulationofthecityormunicipalityshallbedetermined
from the latest official census issued by the Bureau of the Census and
Statistics.
SECTION4.PersonnelcoveredbythisRule.ThisRuleappliestoallpersons
employed by any privateor public hospital or clinic mentioned in Section 1
hereof, and shall include, but not limited to, resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers, laboratory technicians
paramedicaltechnicians,psychologists,midwives,andattendants.

SECTION 5. Regular working hours. The regular working hours of any


personcoveredbythisRuleshallnotbemorethaneight(8)hoursinanyone
daynormorethanforty(40)hoursinanyoneweek.
ForpurposesofthisRulea"day"shallmeanaworkdayoftwentyfour(24)
consecutivehoursbeginningatthesametimeeachcalendaryear.A"week"
shallmeantheworkof168consecutivehours,orsevenconsecutive24hour
workdays,beginningatthesamehourandonthesamecalendardayeach
calendarweek.
SECTION 6. Regular working days. The regular working days of covered
employeesshallnotbemorethanfivedaysinaworkweek.Theworkweek
may begin at any hour and on any day, including Saturday or Sunday,
designatedbytheemployer.
Employersarenotprecludedfromchangingthetimeatwhichtheworkday
orworkweekbegins,providedthatthechangeisnotintendedtoevadethe
requirementsofthisRule.
SECTION7.Overtimework.Wheretheexigenciesoftheservicesorequire
asdeterminedbytheemployer,anyemployeecoveredbythisRulemaybe
scheduled to work for more than five (5) days or forty (40) hours a week,
provided that the employee is paid for the overtime work an additional
compensation equivalent to his regular wage plus at least thirty percent
(30%) thereof, subject to the provisions of this Book on the payment of
additionalcompensationforworkperformedonspecialandregularholidays
andonrestdays.
SECTION8.Hoursworked.Indeterminingthecompensablehoursofwork
ofhospitalandclinicpersonnelcoveredbythisRule,thepertinentprovisions
ofRule1ofthisBookshallapply.
SECTION 9. Additional compensation. Hospital and clinic personnel
covered by this Rule, with the exception of those employed by the
Government, shall be entitled to an additional compensation for work
performedonregularandspecialholidaysandrestdaysasprovidedinthis
Book. Such employees shall also be entitled to overtime pay for services
renderedinexcessoffortyhoursaweek,orinexcessofeighthoursaday,

whicheverwillyieldthehigheradditionalcompensationtotheemployeein
theworkweek.
SECTION10.RelationtoRuleI.AllprovisionsofRuleIofthisBookwhich
arenotinconsistentwiththisRuleshallbedeemedapplicabletohospitaland
clinicpersonnel.
RULE
NightShiftDifferential

II

SECTION1.Coverage.ThisRuleshallapplytoallemployeesexcept:
(a) Those of the government and any of its political subdivisions, including
governmentownedand/orcontrolledcorporations;
(b)Thoseofretailandserviceestablishmentsregularlyemployingnotmore
thanfive(5)workers;
(c)Domestichelpersandpersonsinthepersonalserviceofanother;
(d)ManagerialemployeesasdefinedinBookThreeofthisCode;
(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
performancethereof.
SECTION 2. Night shiftdifferential. An employeeshall be paid night shift
differential of no less than ten per cent (10%) of his regular wage for each
hourofworkperformedbetweenteno'clockintheeveningandsixo'clockin
themorning.
SECTION3.Additionalcompensation.Whereanemployeeispermittedor
sufferedtoworkontheperiodcoveredafterhisworkschedule,heshallbe
entitledtohisregularwageplusatleasttwentyfivepercent(25%)andan
additionalamountofnolessthantenpercent(10%)ofsuchovertimerate
foreachhourorworkperformedbetween10p.m.to6a.m.
SECTION 4. Additional compensation on scheduled rest day/special holiday.
Anemployeewhoisrequiredorpermittedtoworkontheperiodcovered

duringrestdaysand/orspecialholidaysnotfallingonregularholidays,shall
be paid a compensation equivalent to his regular wage plus at least thirty
(30%)percentandanadditionalamountofnotlessthanten(10%)percent
ofsuchpremiumpayrateforeachhourofworkperformed.
SECTION5.Additionalcompensationonregularholidays.Forworkonthe
periodcoveredduringregularholidays,anemployeeshallbeentitledtohis
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
employerinwithdrawingorreducinganybenefits,supplementsorpayments
as provided in existing individual or collective agreements or employer
practiceorpolicy.
1.HoursofWork

a.

Regulation;Rationale

ManilaTerminalCo.Inc.v.CIR,91Phil.625(1952)

b.

Coverage/Exemptions,Art.82,276;Rulel,Sec.s14

(SeeAbove)

1) GovernmentEmployees,Const.,Art.IXB,Sec.2(1)

ARTICLEIXB.THECIVILSERVICECOMMISSION
Section 2. (1) The civil service embraces all branches, subdivisions,
instrumentalities, and agencies of the Government, including government
ownedorcontrolledcorporationswithoriginalcharters.
2)

ManagerialEmployees,Art.82;RuleI,Sec.2(b)
(c)

(b)Managerialemployees,iftheymeetallofthefollowingconditions:
(1) Their primary duty consists of the management of the establishment in
whichtheyareemployedorofadepartmentorsubdivisionthereof.
(2)Theycustomarilyandregularlydirecttheworkoftwoormoreemployees
therein.

(3)Theyhavetheauthoritytohireorfireemployeesoflowerrank;ortheir
suggestions and recommendations as to hiring and firing and as to the
promotion or any other change of status of other employees, are given
particularweight.
(c) Officers or members of a managerial staff if they perform the following
dutiesandresponsibilities:
(1)Theprimarydutyconsistsoftheperformanceofworkdirectlyrelatedto
managementpoliciesoftheiremployer;
(2)Customarilyandregularlyexercisediscretionandindependentjudgment;
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,specialassignmentsandtasks;and
(4)Whodonotdevotemorethan20percentoftheirhoursworkedinawork
week to activities which are not directly and closely related to the
performanceoftheworkdescribedinparagraphs(1),(2)and(3)above.

AsiaPacificChristening,Inc.v.Farolan,393SCRA454(2004)

CharlitoPerandav.BagangaPlywoodCorp.,etal.,G.R.159577,May3,
2006

3)

FieldPersonnel,Art.82;RuleI,Sec.2(f)
MerdicarFishingCorpv.NLRC,297SCRA440(1998)

Auto Bus Transport Systems, Inc. v. Bautista, 458 SCRA 578


(2005)

4)

DependentFamilyMembers

5)DomesticHelpers,Art.141,145;RuleI,Sec.2(d)

ChapterIII
EMPLOYMENTOFHOUSEHELPERS
ART. 141. Coverage. This Chapter shall apply to all persons rendering
servicesinhouseholdsforcompensation.

"Domesticorhouseholdservice"shallmeanserviceintheemployershome
whichisusuallynecessaryordesirableforthemaintenanceandenjoyment
thereofandincludesministeringtothepersonalcomfortandconvenienceof
the members of the employers household, including services of family
drivers.
ART. 145. Assignment to nonhousehold 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
agriculturalworkersasprescribedherein.

(d)Domesticservantsandpersonsinthepersonalserviceofanotherifthey
performsuchservicesintheemployer'shomewhichareusuallynecessaryor
desirable for the maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as well as the
membersofhisemployer'shousehold.
6)PersonsinthePersonalServiceofAnother,RuleI,Sec.2(d)

(d)Domesticservantsandpersonsinthepersonalserviceofanotherifthey
performsuchservicesintheemployer'shomewhichareusuallynecessaryor
desirable for the maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as well as the
membersofhisemployer'shousehold.
7)

PieceWorkers,RuleI,Sec.2(e)

(e)Workerswhoarepaidbyresults,includingthosewhoarepaidonpiece
work,"takay,""pakiao"ortaskbasis,andothernontimeworkiftheiroutput
ratesareinaccordancewiththestandardsprescribedunderSection8,Rule
VII,BookThreeoftheseregulations,orwheresuchrateshavebeenfixedby
the Secretary of Labor and Employment in accordance with the aforesaid
Section.
LaborCongressv.NLRC,290SCRA509(1998)

c.

NormalHoursofWork,Art.83

ART.83.Normalhoursofwork.Thenormalhoursofworkofanyemployee
shallnotexceedeight(8)hoursaday.
Healthpersonnelincitiesandmunicipalitieswithapopulationofatleastone
million(1,000,000)orinhospitalsandclinicswithabedcapacityofatleast
one hundred (100) shall hold regular office hours for eight (8) hours a day,
for five (5) days a week, exclusive of time for meals, except where the
exigenciesoftheservicerequirethatsuchpersonnelworkforsix(6)daysor
fortyeight (48) hours, in which case, they shall be entitled to an additional
compensationofatleastthirtypercent(30%)oftheirregularwageforwork
onthesixthday.ForpurposesofthisArticle,"healthpersonnel"shallinclude
resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists,
midwives,attendantsandallotherhospitalorclinicpersonnel.

d.

CompensableHoursofWorkIngeneral

1)

OnDuty,Art.84(a);RuleI,Sec.3(a),Sec.4(a)

ART.84.Hoursworked.Hoursworkedshallinclude(a)alltimeduringwhich
an employee is required to be on duty or to be at a prescribed workplace;
and(b)alltimeduringwhichanemployeeissufferedorpermittedtowork.
Rest periods of short duration during working hours shall be counted as
hoursworked.
SECTION 3. Hours worked. The following shall be considered as
compensablehoursworked:
(a)Alltimeduringwhichanemployeeisrequiredtobeondutyortobeat
theemployer'spremisesortobeataprescribedworkplace;and
SECTION4.Principlesindetermininghoursworked.Thefollowinggeneral
principles shall govern in determining whether the time spent by an
employeeisconsideredhoursworkedforpurposesofthisRule:
(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
labororinvolvephysicalormentalexertion.
3) AtWork,Art.84(b);RuleI,Sec.3(b)

ART.84.Hoursworked.Hoursworkedshallinclude(a)alltimeduringwhich
an employee is required to be on duty or to be at a prescribed workplace;
and(b)alltimeduringwhichanemployeeissufferedorpermittedtowork.
Sec.3(b)Alltimeduringwhichanemployeeissufferedorpermittedtowork.

e.

SpecificRules

1)

RestPeriod

a)ShortDurationorCoffeeBreak,Art.84,2ndpar.;BookIII,RuleI,Sec.7,2nd
par.

Rest periods of short duration during working hours shall be counted as


hoursworked.
SECTION 7. Meal and Rest Periods. Every employer shall give his
employees,regardlessofsex,notlessthanone(1)hourtimeoffforregular
meals, except in the following cases when a meal period of not less than
twenty (20) minutes may be given by the employer provided that such
shorter meal period is credited as compensable hours worked of the
employee:
Rest periods or coffee breaks running from five (5) to twenty (20) minutes
shallbeconsideredascompensableworkingtime.
b)Morethan20min.,RulesI,Sec.4(b)

SECTION 4. Principles in determining hours worked. The following


generalprinciplesshallgovernindeterminingwhetherthetimespentbyan
employeeisconsideredhoursworkedforpurposesofthisRule:

(b)Anemployeeneednotleavethepremisesoftheworkplaceinorder
that his rest period shall not be counted, it being enough that he stops
working,mayrestcompletelyandmayleavehisworkplace,togoelsewhere,
whetherwithinoroutsidethepremisesofhisworkplace.
2)

MealPeriod

a)RegularMealPeriod(OneHour),Art.85;RuleI,Sec.7,1stpar.

ART.85.Mealperiods.SubjecttosuchregulationsastheSecretaryofLabor
mayprescribe,itshallbethedutyofeveryemployertogivehisemployees
notlessthansixty(60)minutestimeofffortheirregularmeals.

SECTION 7. Meal and Rest Periods. Every employer shall give his
employees,regardlessofsex,notlessthanone(1)hourtimeoffforregular
meals, except in the following cases when a meal period of not less than
twenty (20) minutes may be given by the employer provided that such

shorter meal period is credited as compensable hours worked of the


employee:

PhilippineAirlines,Inc.v.NLRC,302SCRA582(1999)

b)ShorterMealPeriod(LessthanOneHour,butNotLessthan20min.),Rule
I,Sec.7,1stpar.

(SeeAbove)
4) WaitingTime,RuleI,Sec.5(a)

SECTION5.Waitingtime.(a)Waitingtimespentbyanemployeeshallbe
considered as working time if waiting is an integral part of his work or the
employeeisrequiredorengagedbytheemployertowait.

Aricav.NLRC,170SCRA776(1989)

4)

OnCall,RuleI,Sec.5(b)

b)Anemployeewhoisrequiredtoremainoncallintheemployer'spremises
orsoclosetheretothathecannotusethetimeeffectivelyandgainfullyfor
hisownpurposeshallbeconsideredasworkingwhileoncall.Anemployee
who is not required to leave word at his home or with company officials
wherehemaybereachedisnotworkingwhileoncall.
5) InactiveduetoWorkInterruptions,BookIII,RuleI,Sec.4(d)

SECTION4.Principlesindetermininghoursworked.Thefollowinggeneral
principles shall govern in determining whether the time spent by an
employeeisconsideredhoursworkedforpurposesofthisRule:

(d)Thetimeduringwhichanemployeeisinactivebyreasonofinterruptions
inhisworkbeyondhiscontrolshallbeconsideredworkingtimeeitherifthe
imminence of the resumption of work requires the employee's presence at
theplaceofworkoriftheintervalistoobrieftobeutilizedeffectivelyand
gainfullyintheemployee'sowninterest.

UniversityofPangasinanFacultyUnionv.UniversityofPangasinan,127SCRA
691(1984)

6)WorkafterNormalHours,RuleI,Sec.4(c)
(c)Iftheworkperformedwasnecessary,oritbenefitedtheemployer,orthe
employee could not abandon his work at the end of his normal working
hoursbecausehehadnoreplacement,alltimespentforsuchworkshallbe
considered as hours worked, if the work was with the knowledge of his
employerorimmediatesupervisor.
7)Lectures,Meetings,TrainingPrograms,RuleI,Sec.6
SECTION6.Lectures,meetings,trainingprograms.Attendanceatlectures,
meetings,trainingprograms,andothersimilaractivitiesshallnotbecounted
asworkingtimeifallofthefollowingconditionsaremet:
(a)Attendanceisoutsideoftheemployee'sregularworkinghours;
(b)Attendanceisinfactvoluntary;and

(c) The employee does not perform any productive work during such
attendance.
8)TravelTime
Radav.NLRC,205SCRA69(1992)

f.OvertimeWorkPay,Arts.8790;RuleI,Secs.811

ART.87.Overtimework.Workmaybeperformedbeyondeight(8)hoursa
dayprovidedthattheemployeeispaidfortheovertimework,anadditional
compensation equivalent to his regular wage plus at least twentyfive

percent(25%)thereof.Workperformedbeyondeighthoursonaholidayor
restdayshallbepaidanadditionalcompensationequivalenttotherateof
the first eight hours on a holiday or rest day plus at least thirty percent
(30%)thereof.
ART. 88. Undertime not offset by overtime. Undertime work on any
particular day shall not be offset by overtime work on any other day.
Permissiongiventotheemployeetogoonleaveonsomeotherdayofthe
week shall not exempt the employer from paying the additional
compensationrequiredinthisChapter.
ART.89.Emergencyovertimework.Anyemployeemayberequiredbythe
employer to perform overtime work in any of the following cases:chan
roblesvirtuallawlibrary
(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
imminentdangertopublicsafetyduetoanactualorimpendingemergency
inthelocalitycausedbyseriousaccidents,fire,flood,typhoon,earthquake,
epidemic,orotherdisasterorcalamity;
(c)Whenthereisurgentworktobeperformedonmachines,installations,
orequipment,inordertoavoidseriouslossordamagetotheemployeror
someothercauseofsimilarnature;
(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
eighthhourisnecessarytopreventseriousobstructionorprejudicetothe
businessoroperationsoftheemployer.
AnyemployeerequiredtorenderovertimeworkunderthisArticleshallbe
paidtheadditionalcompensationrequiredinthisChapter.
ART. 90. Computation of additional compensation. For purposes of
computingovertimeandotheradditionalremunerationasrequiredbythis

Chapter, the "regular wage" of an employee shall include the cash wage
only,withoutdeductiononaccountoffacilitiesprovidedbytheemployer.
RULEI
SECTION 8. Overtime pay. Any employee covered by this Rule who is
permitted or required to work beyond eight (8) hours on ordinary working
daysshallbepaidanadditionalcompensationfortheovertimeworkinthe
amount equivalent to his regular wage plus at least twentyfive percent
(25%)thereof.
SECTION9.Premiumandovertimepayforholidayandrestdaywork.(a)
ExceptemployeesreferredtounderSection2ofthisRule,anemployeewho
ispermittedorsufferedtoworkonspecialholidaysoronhisdesignatedrest
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
holidaysandrestdaysnotfallingonregularholidays,anemployeeshallbe
paidanadditionalcompensationfortheovertimeworkequivalenttohisrate
for the first eight hours on a special holiday or rest day plus at least thirty
percent(30%)thereof.
(b)Employeesofpublicutilityenterprisesaswellasthoseemployedinnon
profit institutions and organizations shall be entitled to the premium and
overtimepayprovidedherein,unlesstheyarespecificallyexcludedfromthe
coverageofthisRuleasprovidedinSection2hereof.
(c)Thepaymentofadditionalcompensationforworkperformedonregular
holidaysshallbegovernedbyRuleIV,BookThree,oftheseRules.
SECTION10.Compulsoryovertimework.Inanyofthefollowingcases,an
employermayrequireanyofhisemployeestoworkbeyondeight(8)hoursa
day, provided that the employee required to render overtime work is paid
theadditionalcompensationrequiredbytheseregulations:
(a) When the country is at war or when any other national or local
emergencyhasbeendeclaredbyCongressortheChiefExecutive;
(b)Whenovertimeworkisnecessarytopreventlossoflifeorproperty,orin
case of imminent danger to public safety due to actual or impending

emergencyinthelocalitycausedbyseriousaccident,fire,floods,typhoons,
earthquake,epidemicorotherdisasterorcalamities;
(c)Whenthereisurgentworktobeperformedonmachines,installations,or
equipment,inordertoavoidseriouslossordamagetotheemployerorsome
othercausesofsimilarnature;
(d) When the work is necessary to prevent loss or damage to perishable
goods;
(e)Whenthecompletionorcontinuationofworkstartedbeforethe8thhour
is necessary to prevent serious obstruction or prejudice to the business or
operationsoftheemployer;or
(f) When overtime work is necessary to avail of favorable weather or
environmental conditions where performance or quality of work is
dependentthereon.
In cases not falling within any of these enumerated in this Section, no
employeemaybemadetoworkbeyondeighthoursadayagainsthiswill.
1)

OvertimeinOrdinaryWorkingDay,Art.87;RuleI,Sec.8

2)

EmergencyorCompulsoryOvertimeWork,Art.89

3)

UndertimeWork/Leave,Art.88

4)

AdditionalCompensation,Art.87

5)

NoComputationFormulaBasicContract

ManilaTerminalCo.,Inc.v.CIR,supra

6)ProofofWork/EmployerObligation
SocialSecuritySystemv.CourtofAppeals,348SCRA1(2000)

g.Nightwork,Art.86;RuleII,Secs.16

ART.86.Nightshiftdifferential.Everyemployeeshallbepaidanightshift
differential of not less than ten percent (10%) of his regular wage for each
hourofworkperformedbetweentenoclockintheeveningandsixoclockin
themorning.

SECTION 1. General statement on coverage. This Rule shall apply to all


employers whether operating for profit or not, including public utilities
operatedbyprivatepersons.
SECTION 2. Business on Sundays/Holidays. All establishments and
enterprises may operate or open for business on Sundays and holidays
providedthattheemployeesaregiventheweeklyrestdayandthebenefits
asprovidedinthisRule.
SECTION 3. Weekly rest day. Every employer shall give his employees a
restperiodofnotlessthantwentyfour(24)consecutivehoursaftereverysix
consecutivenormalworkdays.
SECTION4.Preferenceofemployee.Thepreferenceoftheemployeeasto
hisweeklydayofrestshallberespectedbytheemployerifthesameisbased
onreligiousgrounds.Theemployeeshallmakeknownhispreferencetothe
employer in writing at least seven (7) days before the desired effectivity of
theinitialrestdaysopreferred.

Where, however, the choice of the employee as to his rest day based on
religiousgroundswillinevitablyresultinseriousprejudiceorobstructionto
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.
SECTION5.Scheduleofrestday.(a)Wheretheweeklyrestisgiventoall
employeessimultaneously,theemployershallmakeknownsuchrestperiod
bymeansofawrittennoticepostedconspicuouslyintheworkplaceatleast
oneweekbeforeitbecomeseffective.
(b)Wheretherestperiodisnotgrantedtoallemployeessimultaneouslyand
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.
SECTION6.Whenworkonrestdayauthorized.Anemployermayrequire
anyofhisemployeestoworkonhisscheduledrestdayforthedurationof
thefollowingemergenciesandexceptionalconditions:
(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
dangertopublicsafety;
(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)Intheeventofabnormalpressureofworkduetospecialcircumstances,
where the employer cannot ordinarily be expected to resort to other
measures;
(d)Topreventseriouslossofperishablegoods;
(e)Wherethenatureofthework issuchthattheemployeeshaveto work
continuouslyforseven(7)daysinaweekormore,asinthecaseofthecrew
membersofavesseltocompleteavoyageandinothersimilarcases;and

(f) When the work is necessary to avail of favorable weather or


environmental conditions where performance or quality of work is
dependentthereon.
Noemployeeshallberequiredagainsthiswilltoworkonhisscheduledrest
dayexceptundercircumstancesprovidedinthisSection: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
provisionsofSection7hereofregardingadditionalcompensation.
1) Coverage/Exclusion,RuleII,Sec.1

2) AdditionalCompensation,Art.86

Shell Oil Co. of the Philippines, Ltd. v. National Labor Union, 81 Phil. 315
(1948)

2. WeeklyrestPeriods

Reference:Arts.9193;OmnibusRules,BookIII,RuleIII,Secs.19

ChapterII
WEEKLYRESTPERIODS

ART.91.Righttoweeklyrestday.(a)Itshallbethedutyofeveryemployer,
whetheroperatingforprofitornot,toprovideeachofhisemployeesarest
periodofnotlessthantwentyfour(24)consecutivehoursaftereverysix(6)
consecutivenormalworkdays.
(b) The employer shall determine and schedule the weekly rest day of his
employeessubjecttocollectivebargainingagreementandtosuchrulesand
regulations as the Secretary of Labor and Employment may provide.
However,theemployershallrespectthepreferenceofemployeesastotheir
weeklyrestdaywhensuchpreferenceisbasedonreligiousgrounds.
ART.92.Whenemployermayrequireworkonarestday.Theemployermay
requirehisemployeestoworkonanyday:
(a) In case of actual or impending emergencies caused by serious accident,
fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to
preventlossoflifeandproperty,orimminentdangertopublicsafety;
(b)Incasesofurgentworktobeperformedonthemachinery,equipment,or
installation,toavoidseriouslosswhichtheemployerwouldotherwisesuffer;
(c)Intheeventofabnormalpressureofworkduetospecialcircumstances,
where the employer cannot ordinarily be expected to resort to other
measures;
(d)Topreventlossordamagetoperishablegoods;
(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
determinedbytheSecretaryofLaborandEmployment.
ART.93.Compensationforrestday,Sundayorholidaywork.(a)Wherean
employeeismadeorpermittedtoworkonhisscheduledrestday,heshall
be paid an additional compensation of at least thirty percent (30%) of his
regularwage.Anemployeeshallbeentitledtosuchadditionalcompensation
forworkperformedonSundayonlywhenitishisestablishedrestday.chan
roblesvirtuallawlibrary

(b) When the nature of the work of the employee is such that he has no
regularworkdaysandnoregularrestdayscanbescheduled,heshallbepaid
an additional compensation of at least thirty percent (30%) of his regular
wageforworkperformedonSundaysandholidays.
(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.Wheresuchholidayworkfallsontheemployeesscheduledrest
day, he shall be entitled to an additional compensation of at least fifty per
cent(50%)ofhisregularwage.
(d) Where the collective bargaining agreement or other applicable
employmentcontractstipulatesthepaymentofahigherpremiumpaythan
that prescribed under this Article, the employer shall pay such higher rate.

WeeklyRestPeriods
SECTION 1. General statement on coverage. This Rule shall apply to all
employers whether operating for profit or not, including public utilities
operatedbyprivatepersons.
SECTION 2. Business on Sundays/Holidays. All establishments and
enterprises may operate or open for business on Sundays and holidays
providedthattheemployeesaregiventheweeklyrestdayandthebenefits
asprovidedinthisRule.
SECTION 3. Weekly rest day. Every employer shall give his employees a
restperiodofnotlessthantwentyfour(24)consecutivehoursaftereverysix
consecutivenormalworkdays.
SECTION4.Preferenceofemployee.Thepreferenceoftheemployeeasto
hisweeklydayofrestshallberespectedbytheemployerifthesameisbased
onreligiousgrounds.Theemployeeshallmakeknownhispreferencetothe
employer in writing at least seven (7) days before the desired effectivity of
theinitialrestdaysopreferred.
Where, however, the choice of the employee as to his rest day based on
religiousgroundswillinevitablyresultinseriousprejudiceorobstructionto
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.
SECTION5.Scheduleofrestday.(a)Wheretheweeklyrestisgiventoall
employeessimultaneously,theemployershallmakeknownsuchrestperiod
bymeansofawrittennoticepostedconspicuouslyintheworkplaceatleast
oneweekbeforeitbecomeseffective.
(b)Wheretherestperiodisnotgrantedtoallemployeessimultaneouslyand
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.
SECTION6.Whenworkonrestdayauthorized.Anemployermayrequire
anyofhisemployeestoworkonhisscheduledrestdayforthedurationof
thefollowingemergenciesandexceptionalconditions:
(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
dangertopublicsafety;
(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)Intheeventofabnormalpressureofworkduetospecialcircumstances,
where the employer cannot ordinarily be expected to resort to other
measures;
(d)Topreventseriouslossofperishablegoods;
(e)Wherethenatureofthework issuchthattheemployeeshaveto work
continuouslyforseven(7)daysinaweekormore,asinthecaseofthecrew
membersofavesseltocompleteavoyageandinothersimilarcases;and

(f) When the work is necessary to avail of favorable weather or


environmental conditions where performance or quality of work is
dependentthereon.
Noemployeeshallberequiredagainsthiswilltoworkonhisscheduledrest
dayexceptundercircumstancesprovidedinthisSection: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
provisionsofSection7hereofregardingadditionalcompensation.
SECTION 7. Compensation on rest day/Sunday/holiday. (a) Except those
employeesreferredtounderSection2,RuleI,BookThree,anemployeewho
ismadeorpermittedtoworkonhisscheduledrestdayshallbepaidwithan
additional compensation of at least 30% of his regular wage. An employee
shall be entitled to such additional compensation for work performed on a
Sundayonlywhenitishisestablishedrestday.
(b) Where the nature of the work of the employee is such that he has no
regularworkdaysandnoregularrestdayscanbescheduled,heshallbepaid
an additional compensation of at least 30% of his regular wage for work
performedonSundaysandholidays.
(c) Work performed on any special holiday shall be paid with an additional
compensationofatleast30%oftheregularwageoftheemployees.Where
such holiday work falls on the employee's scheduled rest day, he shall be
entitledtoadditionalcompensationofatleast50%ofhisregularwage.
(d)Thepaymentofadditionalcompensationforworkperformedonregular
holidayshallbegovernedbyRuleIV,BookThree,oftheseregulations.
(e) Where the collective bargaining agreement or other applicable
employmentcontractstipulatesthepaymentofahigherpremiumpaythan
thatprescribedunderthisSection,theemployershallpaysuchhigherrate.
SECTION8.Paidoffdays.NothinginthisRuleshalljustifyanemployerin
reducing the compensation of his employees for the unworked Sundays,
holidays,orotherrestdayswhichareconsideredpaidoffdaysorholidaysby
agreementorpracticesubsistingupontheeffectivityoftheCode.

SECTION 9. Relation to agreements. Nothing herein shall prevent the


employer and his employees or their representatives in entering into any
agreementwithtermsmorefavorabletotheemployeesthanthoseprovided
herein,orbeusedtodiminishanybenefitgrantedtotheemployeesunder
existinglaws,agreements,andvoluntaryemployerpractices.

a. Coverage,Art.82,91;RuleIII,Sec.1

ART.82.Coverage.TheprovisionsofthisTitleshallapplytoemployeesinall
establishments and undertakings whether for profit or not, but not to
governmentemployees,managerialemployees,fieldpersonnel,membersof
thefamilyoftheemployerwhoaredependentonhimforsupport,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.
Asusedherein,"managerialemployees"refertothosewhoseprimaryduty
consists of the management of the establishment in which they are
employedorofadepartmentorsubdivisionthereof,andtootherofficersor
membersofthemanagerialstaff.
"Field personnel" shall refer to nonagricultural employees who regularly
perform their duties away from the principal place of business or branch
officeoftheemployerandwhoseactualhoursofworkinthefieldcannotbe
determinedwithreasonablecertainty.
b. Determination;compulsoryWork;Compensation,Arts.91,92
ManilaElectricCo.v.PublicUtilitiesEmployeesAssn,79Phil.409

c. PremiumPay,Art.939a)(b)(c)

d. CBAonHigherPremiumPay,Art.93(d)

3. Holidays

Reference:art.94;ExecutiveOrder203(1987);OmnibusRules,BookIII,Rule
IV

ChapterIII
HOLIDAYS,SERVICEINCENTIVELEAVES

ANDSERVICECHARGES
ART.94.Righttoholidaypay.(a)Everyworkershallbepaidhisregulardaily
wage during regular holidays, except in retail and service establishments
regularlyemployinglessthanten(10)workers;
(b)Theemployermayrequireanemployeetoworkonanyholidaybutsuch
employeeshallbepaidacompensationequivalenttotwicehisregularrate;
and
(c) As used in this Article, "holiday" includes: New Years Day, Maundy
Thursday, Good Friday, the ninth of April, the first of May, the twelfth of
June, the fourth of July, the thirtieth of November, the twentyfifth and
thirtieth of December and the day designated by law for holding a general
election.
EXECUTIVEORDERNO.203June30,1987
PROVIDING A LIST OF REGULAR HOLIDAYS AND SPECIAL DAYS TO BE
OBSERVEDTHROUGHOUTTHEPHILIPPINESANDFOROTHERPURPOSES
WHEREAS, a Cabinet Assistance Secretariat Committee was constituted to
reviewallexistingpublicholidays;
WHEREAS, there are too many holidays being observed which has caused
confusionamongthepublic.
NOW,THEREFORE,I,CORAZONC.AQUINO,PresidentofthePhilippines,do
herebyorder:
Sec. 1. Unless otherwise modified by law, order or proclamation, the
followingregularholidaysandspecialdaysshallbeobservedinthiscountry:
A. RegularHolidays
NewYear'sDay January
Maundy
Movable
Thursday
date
GoodFriday
Movable
date
Araw
ngApril9
Kagitingan

(Bataan
and
CorregidorDay)
LaborDay
May1
Independence June12
Day
National HeroesLastSunday
Day
ofAugust
BonifacioDay November
30
ChristmasDay December
25
RizalDay
December
30
B. Nationwide

SpecialDays
AllSaintsDay November
1
Last Day of theDecember
31
Year

Sec.2.Henceforth,theterms"legalorregularholiday"and"specialholiday",
asusedinlaws,orders,rulesandregulationsorotherissuancesshallnowbe
referredtoas"regularholiday"and"specialday",respectively.
Sec. 3. All laws, orders, issuances, rules and regulations or parts thereof
inconsistent with this Executive Order are hereby repealed or modified
accordingly.
Sec.4.ThisExecutiveOrdershalltakeeffectimmediately.
Done in the City of Manila, this 30th day of June, in the year of Our Lord,
nineteenhundredandeightyseven.
RULE
HolidayswithPay
SECTION1.Coverage.Thisruleshallapplytoallemployeesexcept:

IV

(a) Those of the government and any of the political subdivision, including
governmentownedandcontrolledcorporation;
(b) Those ofretail and service establishments regularly employingless than
ten(10)workers;
(c)Domestichelpersandpersonsinthepersonalserviceofanother;
(d)ManagerialemployeesasdefinedinBookThreeoftheCode;
(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
performancethereof.
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,withasalaryofnotlessthanthestatutoryorestablishedminimum
wageshallbepaidforalldaysinthemonthwhetherworkedornot.
For this purpose, the monthly minimum wage shall not be less than the
statutoryminimumwagemultipliedby365daysdividedbytwelve.
SECTION 3. Holiday Pay. Every employer shall pay his employees their
regulardailywageforanyworkedregularholidays.
Asusedintherule,theterm'regularholiday'shallexclusivelyreferto: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 twentyfifth and thirtieth of December. Nationwide special
daysshallincludethefirstofNovemberandthelastdayofDecember.
AsusedinthisRulelegalorregularholidayandspecialholidayshallnowbe
referredtoas'regularholiday'and'specialday',respectively.
SECTION 4. Compensation for holiday work. Any employee who is
permittedorsufferedtoworkonanyregularholiday,notexceedingeight(8)
hours,shallbepaidatleasttwohundredpercent(200%)ofhisregulardaily
wage.Iftheholidayworkfallsonthescheduledrestdayoftheemployee,he

shallbeentitledtoanadditionalpremiumpayofatleast30%ofhisregular
holidayrateof200%basedonhisregularwagerate.
SECTION5.Overtimepayforholidaywork.Forworkperformedinexcess
ofeighthoursonaregularholiday,anemployeeshallbepaidanadditional
compensationfortheovertimeworkequivalenttohisrateforthefirsteight
hoursonsuchholidayworkplusatleast30%thereof.
Wheretheregularholidayworkexceedingeighthoursfallsonthescheduled
rest day of the employee, he shall be paid an additional compensation for
the overtime work equivalent to his regular holidayrest day for the first 8
hours plus 30% thereof. The regular holiday rest day rate of an employee
shallconsistof200%ofhisregulardailywagerateplus30%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.
Employeeswhoareonleaveofabsencewithoutpayonthedayimmediately
preceding a regular holiday may not be paid the required holiday pay if he
hasnotworkedonsuchregularholiday.
(b) Employees shall grant the same percentage of the holiday pay as the
benefit granted by competent authority in the form of employee's
compensationorsocialsecuritypayment,whicheverishigher,iftheyarenot
reportingforworkwhileonsuchbenefits.
(c)Wherethedayimmediatelyprecedingtheholidayisanonworkingdayin
theestablishmentorthescheduledrestdayoftheemployee,heshallnotbe
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
thenonworkingdayorrestday.
SECTION 7. Temporary or periodic shutdown and temporary cessation of
work. (a) In cases of temporary or periodic shutdown and temporary
cessationofworkofanestablishment,aswhenayearlyinventoryorwhen
the repair or cleaning of machineries and equipment is undertaken, the
regularholidaysfallingwithintheperiodshallbecompensatedinaccordance
withthisRule.

(b)Theregularholidayduringthecessationofoperationofanenterprisedue
to business reverses as authorized by the Secretary of Labor and
Employmentmaynotbepaidbytheemployer.
SECTION8.Holidaypayofcertainemployees.(a)Privateschoolteachers,
includingfaculty members of colleges and universities, maynot bepaidfor
theregularholidaysduringsemestralvacations.Theyshall,however,bepaid
fortheregularholidaysduringChristmasvacation;
(b)Whereacoveredemployee,ispaidbyresultsoroutput,suchaspayment
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,thatinnocaseshalltheholidaypaybelessthan
theapplicablestatutoryminimumwagerate.
(c) Seasonal workers may not be paid the required holiday pay during off
seasonwhentheyarenotatwork.
(d) Workers who have no regular working days shall be entitled to the
benefitsprovidedinthisRule.
SECTION 9. Regular holiday fallingon rest days or Sundays. (a) A regular
holidayfallingontheemployee'srestdayshallbecompensatedaccordingly.
(b) Where a regular holiday falls on a Sunday, the following day shall be
consideredaspecialholidayforpurposesoftheLaborCode,unlesssaidday
isalsoaregularholiday.
SECTION 10. Successive regular holidays. Where there are two (2)
successiveregularholidays,likeHolyThursdayandGoodFriday,anemployee
maynotbepaidforbothholidaysifheabsentshimselffromworkontheday
immediatelyprecedingthefirstholiday,unlessheworksonthefirstholiday,
inwhichcaseheisentitledtohisholidaypayonthesecondholiday.
SECTION11.Relationtoagreements.NothinginthisRuleshalljustifyan
employerinwithdrawingorreducinganybenefits,supplementsorpayments
for unworked holidays as provided in existing individual or collective
agreementoremployerpracticeorpolicy.

a.

Definition

1) RetailEstablishments,RuleImpl.RA6727,par.F

f) Retail Establishment is one principally engaged in the sale of goods to


endusersforpersonalorhouseholduse;

2) ServiceEstablishment,RuleImpl.RA6727,par.g

g)ServiceEstablishmentisoneprincipallyengagedinthesaleofserviceto
individuals for their own or household use and is generally recognized as
such;

b.
Coverage/Exclusions,Art.94(a)

ART.94.Righttoholidaypay.(a)Everyworkershallbepaidhisregulardaily
wage during regular holidays, except in retail and service establishments
regularlyemployinglessthanten(10)workers;

Mantrade/FMMC Division Employees and Workers Union v. Bacungan, 144


SCRA510(1986)

CirineoBowlingPlaza,Inc.v.GerrySensing,etal.,448SCRA175(2005)

c.

HolidayPay,Art.94(b)

(b)Theemployermayrequireanemployeetoworkonanyholidaybutsuch
employeeshallbepaidacompensationequivalenttotwicehisregularrate;
and

1) FacultyinPrivateSchool,RuleIV,Sec.8(a)

SECTION8.Holidaypayofcertainemployees.(a)Privateschoolteachers,
includingfaculty members of colleges and universities, maynot bepaidfor
theregularholidaysduringsemestralvacations.Theyshall,however,bepaid
fortheregularholidaysduringChristmasvacation;

6) DivisorasFactor

TransAsiaPhil.EmployeesAssociationv.NLRC,320SCRA347(1999)

7) Sunday,Art.939a),2ndSentence;RuleIII,Sec.2

ART.93.Compensationforrestday,Sundayorholidaywork.(a)Wherean
employeeismadeorpermittedtoworkonhisscheduledrestday,heshall
be paid an additional compensation of at least thirty percent (30%) of his
regularwage.Anemployeeshallbeentitledtosuchadditionalcompensation
forworkperformedonSundayonlywhenitishisestablishedrestday.

SECTION 2. Business on Sundays/Holidays. All establishments and


enterprises may operate or open for business on Sundays and holidays
providedthattheemployeesaregiventheweeklyrestdayandthebenefits
asprovidedinthisRule.

WellingtonInvestmentInc.v.Trajano,245SCRA561(1995)

8)

MuslimHoliday,Art.169172;PD1083(Feb.1977)

BOOK
MISCELLANEOUSANDTRANSITORYPROVISIONS
TITLE
MUSLIMHOLIDAYS

FIVE
I

Article169.OfficialMuslimholidays.Thefollowingareherebyrecognizedas
legalMuslimholidays:
(a)'AmunJadid(NewYear),whichfallsonthefirstdayofthefirstlunar
monthofMuharram;

(b) MaulidunNabi (Birthday of the Prophet Muhammad), which falls


onthetwelfthdayofthethirdlunarmonthofRabiulAwwal;
(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey and Ascension of the
Prophet Muhammad), which falls on the twentyseventh day of the
seventhlunarmonthofRajab;
(d)'IdulFitr(HariRayaPausa),whichfallsonthefirstdayofthetenth
lunar month of Shawwal, commemorating the end of the fasting
season;and
(e) 'IdulAdha (Hari Raja Haji), which falls on the tenth day of the
twelfthlunarmonthofDhu1Hijja.
Article170.Provincesandcitieswhereofficiallyobserved.
(1) Muslim holidays shall be officially observed in the Provinces of
Basilan,LanaodelNorte,LanaodelSur,Maguindanao,NorthCotabato,
SultanKudarat,Sulu,TawiTawi,ZamboangadelNorteandZamboanga
del Sur, and in the Cities of Cotabato, Iligan, Marawi, Pagadian, and
Zamboanga and in such other Muslim provinces and cities as may
hereafterbecreated.
(2) Upon proclamation by the President of the Philippines, Muslim
holidaysmayalsobeofficiallyobservedinotherprovincesandcities.
Article 171. Dates of observance. The dates of Muslim holidays shall be
determined by the Office of the President of the Philippines in accordance
withtheMuslimLunarCalendar(Hijra).
Article172.ObservanceofMuslimemployees.
(1)AllMuslimgovernmentofficialsandemployeesinplacesotherthan
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


reductionintheirusualcompensation.

SanMiguelCorp.v.CourtofAppeals,375SCRA311(2002)

d.
Absences,RulelV,Secs.6(a),10

SECTION 6. Absences. (a) All covered employees shall be entitled to the


benefit provided herein when they are on leave of absence with pay.
Employeeswhoareonleaveofabsencewithoutpayonthedayimmediately

preceding a regular holiday may not be paid the required holiday pay if he
hasnotworkedonsuchregularholiday.

SECTION 10. Successive regular holidays. Where there are two (2)
successiveregularholidays,likeHolyThursdayandGoodFriday,anemployee
maynotbepaidforbothholidaysifheabsentshimselffromworkontheday
immediatelyprecedingthefirstholiday,unlessheworksonthefirstholiday,
inwhichcaseheisentitledtohisholidaypayonthesecondholiday.

e.
NonWorking/ScheduleofRestDay,RuleIV,Sec.6(c)

(c)Wherethedayimmediatelyprecedingtheholidayisanonworkingdayin
theestablishmentorthescheduledrestdayoftheemployee,heshallnotbe
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
thenonworkingdayorrestday.

4. ServiceIncentiveLeave

Reference:Art.95;OmnibusRules,BookIII,RuleV

ART. 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
incentiveleaveoffivedayswithpay.
(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
viabilityorfinancialconditionofsuchestablishment.
(c)Thegrantofbenefitinexcessofthatprovidedhereinshallnotbemadea
subjectofarbitrationoranycourtoradministrativeaction.
a.

Coverage,Art.95(a)(b)

MakatiHaberdasheryInc.N.NLRC,179SCRA449(1989)

LaborCongressv.NLRC,supra

b.
ComputationandLiability

SentinelSecurityAgency,Inc.v.NLRC,295SCRA1231998)

5.

AutoBusTransportSystems,Inc.v.Bautista,supra

Paternity Leave, Paternity Leave of 1996 (RA 8187), Secs. 16; Impl.
Rules

REPUBLICACTNO.8187

AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY
TOALLMARRIEDMALEEMPLOYEESINTHEPRIVATEANDPUBLICSECTORS
FOR THE FIRST FOUR (4) DELIVERIES OF THE LEGITIMATE SPOUSE WITH
WHOMHEISCOHABITINGANDFOROTHERPURPOSES.

Be it enacted by the Senate and House of Representatives of the


Philippines
in
Congress
assembled:

SECTION1.ShortTitle.ThisActshallbeknownasthe"PaternityLeave
Act
of
1996".

SECTION 2. Notwithstanding any law, rules and regulations to the


contrary, every married male employee in the private and public sectors

shallbeentitledtoapaternityleaveofseven(7)dayswithfullpayforthe
firstfour(4)deliveriesofthelegitimatespousewithwhomheiscohabiting.
Themaleemployeeapplyingforpaternityleaveshallnotifyhisemployerof
the pregnancy of his legitimate spouse and the expected date of such
delivery.

For purposes, of this Act, delivery shall include childbirth or any


miscarriage.

SECTION3.DefinitionofTerm.ForpurposesofthisAct,PaternityLeave
referstothebenefitsgrantedtoamarriedmaleemployeeallowinghimnot
to
report
for
work
for
seven
(7)
daysbutcontinuestoearnthecompensationtherefor,ontheconditionthat
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 and/or in the nursing of the
newlyborn
child.

SECTION4.TheSecretaryofLaborandEmployment,theChairmanofthe
CivilServiceCommissionandtheSecretaryofHealthshall,withinthirty(30)
days
from
the
effectivity
of
this Act, issue such rules and regulations necessary for the proper
implementation
of
the
provisions
hereof.

SECTION5.Anyperson,corporation,trust,firm,partnership,association
or entity found violating this Act or the rules and regulations promulgated
thereundershallbepunishedbyafinenotexceedingTwentyfivethousand
pesos (P25,000) or imprisonment of not less than thirty (30)days nor more
than
six
(6)
months.

Iftheviolationiscommittedbyacorporation,trustorfirm,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, vicepresident, chief executive officer, general manager,
managing director or partner directly responsible therefor.

SECTION6.NondiminutionClause.NothinginthisActshallbeconstrued
to reduce any existing benefits of any form granted under existing laws,

decrees,
executive
orders,
or
any
contract agreement or policy between employer and employee.

SECTION 7. Repealing Clause. All laws, ordinances, rules, regulations,


issuances, or parts thereof which are inconsistent with this Act are hereby
repealed
or
modified
accordingly.

SECTION 8. Effectivity. This Act shall take effect (15) days from its
publication in the Official Gazette or in at least two (2) newspapers of
nationalcirculation.

Approved:

(SGD.)
PresidentoftheSenate

NEPTALI

(SGD.)
JOSE
DE
SpeakeroftheHouseofRepresentatives

A.

GONZALES

VENECIA,

JR.

ThisAct,whichisaconsolidationofSenateBillNo.1032andHouseBill
No.7134wasfinallypassedbytheSenateandtheHouseofRepresentatives
onJune8,1996.

1.
Parental Leave, Solo Parents Welfare Act of 2000 (RA 8972); Impl.
Rules

REPUBLICACTNO.8972
ANACTPROVIDINGFORBENEFITSANDPRIVILEGESTOSOLOPARENTSAND
THEIR CHILDREN, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

BeitenactedbytheSenateandHouseofRepresentativesofthePhilippines
Congressassembled:
Section1.Title.ThisActshallbeknownasthe"SoloParents'WelfareActof
2000."
Section2.DeclarationofPolicy.ItisthepolicyoftheStatetopromotethe
familyasthefoundationofthenation,strengthenitssolidarityandensureits
total development. Towards this end, it shall develop a comprehensive
programofservicesforsoloparentsandtheirchildrentobecarriedoutby
the Department of Social Welfare and Development (DSWD), the
Department of Health (DOH), the Department of Education, Culture and
Sports(DECS),theDepartmentoftheInteriorandLocalGovernment(DILG),
the Commission on Higher Education (CHED), the Technical Education and
SkillsDevelopmentAuthority(TESDA),theNationalHousingAuthority(NHA),
the Department of Labor and Employment (DOLE) and other related
governmentandnongovernmentagencies.
Section 3. Definition of Terms. Whenever used in this Act, the following
termsshallmeanasfollows:
(a) "Solo parent" any individual who falls under any of the following
categories:
(1)Awomanwhogivesbirthasaresultofrapeandothercrimes
against chastity even without a final conviction of the offender:
Provided,Thatthemotherkeepsandraisesthechild;
(2)Parentleftsolooralonewiththeresponsibilityofparenthood
duetodeathofspouse;
(3)Parentleftsolooralonewiththeresponsibilityofparenthood
whilethespouseisdetainedorisservingsentenceforacriminal
convictionforatleastone(1)year;
(4)Parentleftsolooralonewiththeresponsibilityofparenthood
duetophysicaland/ormentalincapacityofspouseascertifiedby
apublicmedicalpractitioner;

(5)Parentleftsolooralonewiththeresponsibilityofparenthood
duetolegalseparationordefactoseparationfromspouseforat
leastone(1)year,aslongashe/sheisentrustedwiththecustody
ofthechildren;
(6)Parentleftsolooralonewiththeresponsibilityofparenthood
duetodeclarationofnullityorannulmentofmarriageasdecreed
byacourtorbyachurchaslongashe/sheisentrustedwiththe
custodyofthechildren;
(7)Parentleftsolooralonewiththeresponsibilityofparenthood
duetoabandonmentofspouseforatleastone(1)year;
(8)Unmarriedmother/fatherwhohaspreferredtokeepandrear
her/his child/children instead of having others care for them or
givethemuptoawelfareinstitution;
(9) Any other person who solely provides parental care and
supporttoachildorchildren;
(10) Any family member who assumes the responsibility of head
offamilyasaresultofthedeath,abandonment,disappearanceor
prolongedabsenceoftheparentsorsoloparent.
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
eligibilityforthesebenefits.
(b)"Children"refertothoselivingwithanddependentuponthesolo
parentforsupportwhoareunmarried,unemployedandnotmorethan
eighteen (18) years of age, or even over eighteen (18) years but are
incapable of selfsupport because of mental and/or physical
defect/disability.
(c)"Parentalresponsibility"withrespecttotheirminorchildrenshall
refertotherightsanddutiesoftheparentsasdefinedinArticle220of
ExecutiveOrderNo.209,asamended,otherwiseknownasthe"Family
CodeofthePhilippines."

(d)"Parentalleave"shallmeanleavebenefitsgrantedtoasoloparent
to enable him/her to perform parental duties and responsibilities
wherephysicalpresenceisrequired.
(e) "Flexible work schedule" is the right granted to a solo parent
employeeto vary his/herarrival anddeparture timewithout affecting
thecoreworkhoursasdefinedbytheemployer.
Section4.CriteriaforSupport.Anysoloparentwhoseincomeintheplace
ofdomicilefallsbelowthepovertythresholdassetbytheNationalEconomic
and Development Authority (NEDA) and subject to the assessment of the
DSWDworkerintheareashallbeeligibleforassistance:Provided,however,
That any solo parent whose income is above the poverty threshold shall
enjoythebenefitsmentionedinSections6,7and8ofthisAct.
Section 5. Comprehensive Package of Social Development and Welfare
Services. A comprehensive package of social development and welfare
servicesforsoloparentsandtheirfamilieswillbedevelopedbytheDSWD,
DOH, DECS, CHED, TESDA, DOLE, NHA and DILG, in coordination with local
government units and a nongovernmental organization with proven track
recordinprovidingservicesforsoloparents.
TheDSWDshallcoordinatewithconcernedagenciestheimplementationof
the comprehensive package of social development and welfare services for
soloparentsandtheirfamilies.Thepackagewillinitiallyinclude:
(a) Livelihood development services which include trainings on
livelihoodskills,basicbusinessmanagement,valueorientationandthe
provisionofseedcapitalorjobplacement.
(b) Counseling services which include individual, peer group or family
counseling. This will focus on the resolution of personal relationship
androleconflicts.
(c) Parent effectiveness services which include the provision and
expansionofknowledgeandskillsofthesoloparentonearlychildhood
development,behaviormanagement,healthcare,rightsanddutiesof
parentsandchildren.

(d)Criticalincidencestressdebriefingwhichincludespreventivestress
management strategy designed to assist solo parents in coping with
crisissituationsandcasesofabuse.
(e)Specialprojectsforindividualsinneedofprotectionwhichinclude
temporary shelter, counseling, legal assistance, medical care, self
conceptoregobuilding,crisismanagementandspiritualenrichment.
Section6.FlexibleWorkSchedule.Theemployershallprovideforaflexible
working schedule for soloparents: Provided, That the same shall not affect
individual and company productivity: Provided, further, That any employer
may request exemption from the above requirements from the DOLE on
certainmeritoriousgrounds.
Section7.WorkDiscrimination.Noemployershalldiscriminateagainstany
soloparentemployeewithrespecttotermsandconditionsofemployment
onaccountofhis/herstatus.
Section 8. Parental Leave. In addition to leave privileges under existing
laws,parentalleaveofnotmorethanseven(7)workingdayseveryyearshall
begrantedtoanysoloparentemployeewhohasrenderedserviceofatleast
one(1)year.
Section 9. Educational Benefits. The DECS, CHED and TESDA shall provide
thefollowingbenefitsandprivileges:
(1)Scholarshipprogramsforqualifiedsoloparentsandtheirchildrenin
institutionsofbasic,tertiaryandtechnical/skillseducation;and
(2) Nonformal education programs appropriate for solo parents and
theirchildren.
The DECS, CHED and TESDA shall promulgate rules and regulations for the
properimplementationofthisprogram.
Section 10. Housing Benefits. Solo parents shall be given allocation in
housingprojectsandshallbeprovidedwithliberaltermsofpaymentonsaid
government lowcost housing projects in accordance with housing law
provisions prioritizing applicants below the poverty line as declared by the
NEDA.

Section 11. Medical Assistance. The DOH shall develop a comprehensive


healthcareprogramforsoloparentsandtheirchildren.Theprogramshallbe
implemented by the DOH through their retained hospitals and medical
centers and the local government units (LGUs) through their
provincial/district/city/municipalhospitalsandruralhealthunits(RHUs).
Section12.AdditionalPowersandFunctionsoftheDSWD.TheDSWDshall
performthefollowingadditionalpowersandfunctionsrelativetothewelfare
ofsoloparentsandtheirfamilies:
(a) Conduct research necessary to: (1) develop a new body of
knowledge on solo parents; (2) define executive and legislative
measuresneededtopromoteandprotecttheinterestofsoloparents
and their children; and (3) assess the effectiveness of programs
designedfordisadvantagedsoloparentsandtheirchildren;
(b) Coordinate the activities of various governmental and
nongovernmental organizations engaged in promoting and protecting
theinterestsofsoloparentsandtheirchildren;and
(c) Monitor the implementation of the provisions of this Act and
suggest mechanisms by which such provisions are effectively
implemented.
Section13.ImplementingRulesandRegulations.Aninteragencycommittee
headed by the DSWD, in coordination with the DOH, DECS, CHED, TESDA,
DOLE, NHA, and DILG is hereby established which shall formulate, within
ninety(90)daysupontheeffectivityofthisAct,theimplementingrulesand
regulationsinconsultationwiththelocalgovernmentunits,nongovernment
organizationsandpeople'sorganizations.
Section 14. Appropriations. The amount necessary to carry out the
provisions of this Act shall be included in the budget of concerned
governmentagenciesintheGeneralAppropriationsActoftheyearfollowing
itsenactmentintolawandthereafter.1awphil.net
Section 15. Repealing Clause. All laws, decrees, executive orders,
administrativeordersorpartsthereofinconsistentwiththeprovisionsofthis
Actareherebyrepealed,amendedormodifiedaccordingly.

Section16.SeparabilityClause.IfanyprovisionofthisActisheldinvalidor
unconstitutional,other provisions notaffected thereby shall continue to be
infullforceandeffect.
Section 17. Effectivity Clause. This Act shall take effect fifteen (15) days
followingitscompletepublicationintheOfficialGazetteorinatleasttwo(2)
newspaperofgeneralcirculation.
Approved.
(Sgd.)
JOSEPH
EJERCITO
ESTRADA
PresidentofthePhilippines

RepublicofthePhilippines
NationalEconomicDevelopmentAuthority
SOCIALDEVELOPMENTCOMMITTEE(SDC)
ResolutionNo.2(Series2002)
APPROVINGTHEIMPLEMENTINGRULESANDREGULATIONS(IRR)
OFREPUBLICACT8972PROVIDINGFORBENEFITSANDPRIVILEGES
TOSOLOPARENTSANDTHEIRCHILDREN
WHEREAS, it is the policy of the State to promote the family as the
foundation of the nation, strengthen its solidarity and ensure its total
development;
WHEREAS,insupportofthisStatepolicy,R.A.8972,otherwiseknownasthe
Solo Parents Welfare Act of 2000, has been enacted to develop a
comprehensiveprogramforsocialdevelopmentandwelfareservicesforsolo
parentsandtheirchildren;
WHEREAS, to ensure the implementation of the Act, the Department of
Social Welfare and Development was tasked to coordinate with concerned
agencies and perform additional functions relative to the welfare and
developmentofsoloparentsandtheirchildren;
WHEREAS, an interagency committee headed by DSWD and participated in
by the Departments of Health (DOH), Education (DepEd), Labor and
Employment(DOLE),andInteriorandLocalGovernment(DILG),Commission
on Higher Education (CHED), Technical Education and Skills Development
Authority(TESDA),andNationalHousingAuthority(NHA)draftedtheIRRin

consultationwiththelocalgovernmentunits,nongovernmentorganizations
andpeoplesorganizations;
WHEREAS, the draft IRR was deliberated upon and approved by the
members of the SDCCabinet level subject to the incorporation of certain
th

commentsduringitsmeetingonthe10 dayofApril2002;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, by the
Chairman and members of the NEDA Boards Social Development
CommitteeCabinetlevel,toapprovetheIRRofR.A.8972.
RESOLVED FURTHER, that this IRR shall be published at least in one
newspaperofgeneralcirculation.
Adopted,this10dayofAprilintheyearofourLord,TwoThousandandTwo,
PasigCity.

RULESANDREGULATIONSINTHEIMPLEMENTATIONOFREPUBLICACTNO.
8972, AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO
PARENTS AND THEIR CHILDREN, APPROPRIATING FUNDS THEREFOR AND
FOROTHERPURPOSES
ARTICLEI
TITLE,PURPOSEANDCONSTRUCTION
Section 1. Title These rules shall be known and cited as the Rules and
RegulationsImplementingRepublicActNo.8972,morecommonlyknownas
theSoloParentsWelfareActof2000.
Section2.PurposeTheseRulesarepromulgatedtoprescribetheprocedure
and guidelines for the implementation of the Solo Parents Welfare Act of
2000 in order to facilitate the compliance therewith and to achieve the
objectivesthereof.
Section3.ConstructionTheseRulesshallbeliberallyconstruedinfavorof
the solo parent and applied in accordance with and in furtherance of the
policyandobjectivesofthelaw.Incaseofconflictand/orambiguity,which
mayariseintheimplementationoftheseRules,theconcernedagenciesshall
issuethenecessaryclarification.
ARTICLEII
DECLARATIONOFPOLICIESANDOBJECTIVES
Section4.DeclarationofPolicyItisthepolicyoftheStatetopromotethe
familyasthefoundationofthenation,strengthenitssolidarityandensureits
total development. Towards this end, it shall develop a comprehensive
programofservicesforsoloparentsandtheirchildrentobecarriedoutby

the Department of Social Welfare and Development (DSWD), the


Department of Health (DOH), the Department of Education (DepEd), the
DepartmentoftheInteriorandLocalGovernment(DILG),theCommissionon
Higher Education (CHED), the Technical Education and Skills Development
Authority(TESDA),theNationalHousingAuthority(NHA),theDepartmentof
Labor and Employment (DOLE) and other related government agencies and
nongovernmentorganizationsorcivilsociety.
Section5.ObjectiveTheseRulesandRegulationsseektoclarifythescope
and application of the Act in order that the proper parties may avail of its
benefits.
ARTICLEIII
DEFINITIONOFTERMS
Section6.DefinitionoftermsAsusedintheseRules,thefollowingterms
shallmeanasfollows:

(a)ActtheSoloParentsWelfareActof2000;

(b)SoloParentanyindividualwhofallsunderanyofthefollowing
categories:

(1)Awomanwhogivesbirthasaresultofrapeorcrimesagainst
chastity,evenwithoutafinalconvictionoftheoffender:Provided,that
themotherkeepsandraisesthechild;

(2)Parentleftsolooralonewiththeresponsibilityofparenthood
duetodeathofspouse;

(3)Parentleftsolooralonewiththeresponsibilityofparenthood
while the spouse is detained, or is serving sentence for a criminal
convictionforatleastone(1)year;

Thelawappliestothespousesofprisoners,whetherornotafinaljudgement
hasbeenrendered,providedtheyareindetentionforaminimumperiodof
one(1)year;

(4)Parentleftsolooralonewiththeresponsibilityofparenthood
due to physical and/or mental incapacity of spouse as certified by a
publicmedicalpractitioner;

(5)Parentleftsolooralonewiththeresponsibilityofparenthood
duetolegalseparationordefactoseparationfromspouseforatleast
one(1)year:Provided,thatheorsheisentrustedwiththecustodyof
thechildren;

(6)Parentleftsolooralonewiththeresponsibilityofparenthood
duetodeclarationofnullityorannulmentofmarrriageasdecreedbya
court or by a church: Provided, that he/she is entrusted with the
custodyofthechildren;

(7)Parentleftsolooralonewiththeresponsibilityofparenthood
duetoabandonmentofspouseforatleastone(1)year;

(8)Unmarriedmother/fatherwhohaspreferredtokeepandrear
his/her child/children instead of having others care for them or give
themuptoawelfareinstitution;

(9) Any other person who solely provides parental care and
support to a child or children provided he/she is duly licensed as a
foster parent by the DSWD or duly appointed legal guardian by the
court;

(10) Any family member who assumes the responsibility of head


of family as a result of the death, abandonment, disappearance, or
absencelastsforatleastone(1)year.

Achangeinthestatusorcircumstanceoftheparentclaimingbenefitsunder
the Act, such that he/she is no longer left alone with the responsibility of
parenthood,shallterminatehis/hereligibilityforthesebenefits;

(c)FamilyshallrefertotheSoloParentandhis/herchild/children;
Provided, however, that the family member referred to in Section 3,
paragraph (a)(10) of these Rules shall include any relative by consanguinity
uptothefourthcivildegree.Thesepersonsshallinclude,butarenotlimited
to,anyuncle,aunt,grandfather,grandmother,niece,nephew,orcousin;

(d) Social Worker a person who is a graduate of Social Work and


dulyregisteredpursuanttoRepublicAct4373andemployedwiththeSocial
WelfareandDevelopmentOfficeofthelocalgovernmentunitwherethesolo
parentresides;

(e)Childrenrefertothoselivingwithanddependentuponthesolo
parentforsupportwhoareunmarried,unemployedandbeloweighteen(18)
years of age, or even eighteen (18) years and above but are incapable of
selfsupportand/ormentallyand/orphysicallychallenged;

(f)Parentalresponsibilitywithrespecttotheirminorchildrenshall
refer to the rights and duties of the parents as defined in Article 220 of
ExecutiveOrderNo.209,asamended,otherwiseknownastheFamilyCode
ofthePhilippines,andhereunderenumeratedasfollows:

(1) To keep them in their company, to support, educate and


instruct them by right precept and good example and to provide for
theirupbringinginkeepingwiththeirmeans;

(2) To give them love and affection, advice and counsel,


companionshipandunderstanding;

(3) To provide them with moral and spiritual guidance, inculcate


in them honesty, integrity, selfdiscipline, selfreliance, industry and
thrift, stimulate their interest in civic affairs, and inspire in them
compliancewiththedutiesofcitizenship;

(4) To furnish them with good and wholesome educational


materials, supervise their activities, recreation and association with
others, protect them from bad company, and prevent them from
acquiringhabitsdetrimentaltotheirhealth,studiesandmorals;

(5)Torepresenttheminallmattersaffectingtheirinterest;

(6)Todemandfromthemrespectandobedience;

(7) To Impose discipline on them as may be required under the


circumstances;and

(8)Toperformsuchotherdutiesasareimposedbylawandupon
parentsandguardians;

(g)Parentalleaveshallmeanleavebenefitsgrantedtoasoloparent
to enable him/her to perform parental duties and responsibilities where
physicalpresenceisrequired;

(h) Flexible work schedule is the right granted to a solo parent


employee to vary his/her arrival and departure time without affecting the
coreworkhoursasdefinedbytheemployer;

(i) DSWD shall refer to the Department of Social Welfare and


Development;

(j)DOHshallrefertotheDepartmentofHealth;
(k)DOLEshallrefertotheDepartmentofLaborandEmployment;

(l)DepEdshallrefertotheDepartmentofEducation;

(m) DILG shall refer to the Department of the Interior and Local
Government;

(n)CHEDshallrefertotheCommissiononHigherEducation;

(o)NHAshallrefertotheNationalHousingAuthority;

(p) TESDA shall refer to the Technical Education and Skills


DevelopmentAuthority;

(q) NEDA shall refer to the National Economic and Development


Authority;

(r) NSCB shall refer to the National Statistical Coordination Board,


an attached agency of NEDA and responsible for determining the regional
povertythreshold.

ARTICLEIV

CRITERIAFORSUPPORT
Section7.CriteriaforSupportAnysoloparentwhoseincomeintheplace
ofdomicilefallsequaltoorbelowthepovertythresholdassetbytheNSCB
and subject to the assessment of the duly appointed or designated social
worker in the area shall be eligible for assistance: Provided, however, That
anysoloparentwhoseincomeisabovethepovertythresholdshallenjoythe
benefitsmentionedinSections16,17,18,19,20,21and23oftheseRules.
ForpurposesoftheActandtheseRules,theplaceofdomicileshallreferto
theresidencementionedinSection8(a)oftheseRules.
Section8.QualificationsofSoloParentAsoloparentseekingbenefitsother
thanthoseprovidedforunderSections16,17,18,19,20,21and23ofthese
Rulesshallbequalifiedonthebasisofthefollowing:

(a)Aresidentoftheareawheretheassistanceissought,ascertifiedby
the barangay captain; Provided, that if the solo parent is a
transferee from another barangay, he/she is required to secure a
clearance from his/her previous barangay, indicating whether or
not he/she has availed of any benefits for solo parents, and the
natureofsuchbenefits.

(b)Withanincomelevelequaltoorbelowthepovertythresholdasset
forthbyNSCBandassessedbyasocialworkerasprovidedforunder
Section7oftheseRules.

Section9.Assessmentanapplicant who manifeststheneedforassistance


under the Act is subject to assessment by a social worker at the
city/municipalSocialWelfareandDevelopmentOffice.Theassessmentshall
cover,butnotbelimitedto,thefollowing:

(a)DeterminationoftheapplicantscategoryasenumeratedinArticle
IIISection6paragraph(b)oftheseRules;

(b) Evaluation of the needs of the applicant and his/her children as


basisforprovisionoftheappropriateserviceandintervention;

(c)Identificationofthelevelofreadinessoftheapplicanttoreceivea
particular service/assistance, which shall serve as basis for the
conductofsocialpreparationactivitiespriortotheprovisionofsuch
service/assistance;and

(d) Identification of existing and potentially available resources that


maysupporttheapplicantandhis/herchildren.

Section10.ProcedureinAccessingServicesforSoloParentsApersonwho
needsassistanceunderthisActshallcomplywiththefollowingprocess;

(a) Visit the Social Welfare and Development Office of the city or
municipality of her/his residence to manifest her/his need for
assistance;

(b)Fillupapplicationformfortheassistance,indicatingbutnotlimited
to,thefollowinginformation:

1.Name

2.Age

3.Address/AreaofDomicile

4.Incomepermonth

5.Source/sofincome

6.Numberofchildren

7.Circumstancesofbeingsolo;

(c)UndergothenecessaryassessmentprocessasstipulatedinSection9
ArticleIVoftheseRules;

(d) A Social Case Study Report shall be prepared by the social worker
basedontheinformation/dataprovidedforbytheapplicant,aswell
as his/her assessment of said applicant, indicating therein the
appropriateservicesneeded.

(e) The Social Case Study Report, together with a referral letter
prepared by the social worker, shall be forwarded by the Office of
the City/Municipal Social Welfare and Development Office to the
agencyconcernedprovidingtheappropriateassistance/service.

(f)Thesocialworkershallinformthesoloparentofthestatusofhis/her
application within thirty (30) working days from the filing of such
and shall require him/her to visit the agency/institution providing
the assistance. In case the applicant is not qualified for services
under this Act, he/she will be referred to the appropriate
agency/programforassistance.

(g) Upon the favorable evaluation of the social worker, a Solo Parent
IdentificationCardshallbeissuedonthesoloparentwithin30days
upon application duly signed by the city/municipal Social Welfare
Officerandthecity/municipalmayor.TheSoloParentIdentification
Card is necessary for the availment of benefits under the Act and
these Rules. Such Identification Card shall be valid for only one (1)
year, but may be renewed subject to a new assessment and
evaluation;

(h) For the publics information and guidance, a list of persons who
appliedandthosewhowereabletoavailofthebenefitsunderthis
Act shall be made available by the concerned city/municipal social
welfareanddevelopmentofficewhichprocessedtheirapplications.

Section 11. Procedure for Application of Benefits An applicant who was


determined by a social worker to be eligible for assistance may apply for
benefitsunderthisActthroughthefollowing;

(a) The solo parent may go to the agency providing such benefit
bringing with her/him the Identification Card issued by the
Municipal/CitySocialWelfareandDevelopmentOffice;

(b) Undergo the necessary qualifying activities required by the agency


asprescribedbytheseRules;and

(c)Complywiththerequirementssetforthbytheagencyprovidingthe
service for the duration of the assistance (e.g. schooling, housing)
subjecttoexistingrulesoftheagenciesconcerned.

Section12.ProcedureforTerminationofBenefits

(a) A solo parent shall manifest to the Social Welfare Office his/her
intentiontowithdrawtheavailmentofthebenefitsunderthisAct.

(b)Ifthesoloparentdoesnotvoluntarilymanifesthis/herintentionto
terminatetheprovisionofbenefitsandservicesbeforethelapseof
one year from the issuance of the Solo Parent I.D., the Social
Worker,basedonareportbytheemployeroranyinterestedperson
shall conduct the necessary assessment/evaluation to ascertain if
grounds for termination and withdrawal of benefits exist. The
IdentificationCardshallceasetobeeffectiveuponthelapseofone
yearfromissuance,unlessrenewedbasedonanewassessmentand
evaluation. Failure to renew will mean that he/she has changed
his/herstatusasasoloparent.

(c) The solo parent shall be informed of the result of the


assessment/evaluationandterminationoftheservice,ifwarranted,
through written notice. The termination shall take effect 30 days
from the receipt of the notice of termination. In cases when the
service cannot be terminated in a period of one month, e.g.
schooling,theserviceshallbecompleteduntilitsduetime.

TheNHAandotherparticipatinghousingagenciesshallissuetheguidelines
in the termination of housing benefits provided in sections 23 and 24 of
theseRules.
(d) The solo parent and his/her children shall undergo psychosocial
counselingwiththesocialworkertopreparethemforindependent
living.

Section13.RelocationoftheFamilyIntheeventasoloparentdecidesto
relocatehis/herfamily,he/sheshallinformthecity/municipalSocialWelfare
andDevelopmentOffice.Saidofficeshallthereupontransmittherecordsto
the city/municipal Social Welfare and Development Office of the place of
relocation.
Section14.DutytoMonitorItshallbethedutyofthecity/municipalSocial
Welfare Officer who receives said records, to assign a social worker to
monitorthestatusoftherelocatedsoloparentandhis/herfamily.
Moreover, it shall also be the duty of said officer to coordinate with the
concernedagenciesofanychangesinthestatusofthesoloparentreceiving
benefitsfromsaidagencies.
ARTICLEV
BENEFITS
Section 15. Comprehensive Package of Social Development and Welfare
Services A comprehensive package of social development and welfare
servicesforsoloparentsandtheirfamilieswillbedevelopedbytheDSWD,
DOH,DepEd,CHED,TESDA,DOLE,NHAandDILG,incoordinationwithlocal
government units and nongovernmental organizations with proven track
recordinprovidingservicesforsoloparents.
TheDSWDshallcoordinatewithconcernedagenciestheimplementationof
the comprehensive package of social development and welfare services for
soloparentsandtheirfamilies.Thepackagewillinitiallyinclude:

(a) Livelihood development services, which include training on


livelihood skills, basic business management, value orientation and
theprovisionofseedcapitalorjobplacement.

Thecriteriaandprocedureforevaluationofbeneficiariesforthepurposesof
availing of the benefits of this item shall be provided for by the DOLE and
TESDA; the provision of seed capital shall be guided by the credit policy of

theNationalCreditCouncilascontainedinE.O.No.138,Rationalizationof
GovernmentDirectedCreditProgram,passedin1999.

(b) Counseling services, which include individual, peer group or family


counseling. These will focus on the resolution of personal
relationshipandroleconflicts.

Thecriteriaandprocedureforevaluationofbeneficiariesforthepurposesof
availingofthebenefitsofthisitemshallbeprovidedforbytheDSWD;

(c) Parent effectiveness services which include the provision and


expansion of knowledge and skills of the solo parent on early
childhood development, behavior management, health care and
propernutrition,rightsanddutiesofparentsandchildren;

(d)Criticalincidencestressdebriefing,whichincludespreventivestress
managementstrategydesignedtoassistsoloparentsincopingwith
crisissituationsandcasesofabuse;

(e)Specialprojectsforindividualsinneedofprotectionwhichinclude
temporary shelter, counseling, legal assistance, medical care, self
concept or egobuilding, crisis management and spiritual
enrichment.

Section16.FlexibleWorkScheduleTheemployershallprovideforaflexible
work schedule for solo parents: Provided, That the same shall not affect
individual and company productivity: Provided further, That any employer
may request exemption from the above requirements from the DOLE on
certainmeritoriousgrounds.
In the case of employees in the government service, flexible working hours
will be subject to the discretionof the headof the agency.In no case shall
the weekly working hours be reduced in the event the agency adopts the
flexibleworkinghoursscheduleformat(flexitime).Intheadoptionofflexi
time, the core working hours shall be prescribed taking into consideration
theneedsoftheservice..
Section 17. Work Discrimination No employer shall discriminate
against any solo parent employee with respect to terms and conditions of
employmentonaccountofhis/herstatus.

Section 18. Parental Leave In addition to leave privileges under existing


laws,parentalleaveofnotmorethanseven(7)workingdayseveryyearshall
begrantedtoanysoloparentemployeewhohasrenderedserviceofatleast
one(1)year.Thesevendayparentalleaveshallbenoncumulative.
Section19.ConditionsforEntitlementofParentalLeaveAsoloparentshall
beentitledtoparentalleaveprovidedthat:

(a) He/She has rendered at least one (1) year of service whether
continuousorbrokenatthetimeoftheaffectivityoftheAct;

(b) He/She has notified his/her employer of the availment thereof


withinareasonabletimeperiod;and

(c) He/She has presented a Solo Parent Identification Card to his/her


employer.

Section20.NonconversionofParentalLeaveIntheeventthattheparental
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
employeeasaresultofnoncompliancewiththeprovisionsoftheseRulesby
an employer, the aforementioned leave may be used a basis for the
computationofdamages.
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
sameisgreaterthantheseven(7)daysprovidedforintheAct,thegreater
benefitshallprevail.
Emergency or contingency leave provided under a company policy or a
collectivebargainingagreementshallnotbecreditedascompliancewiththe
parentalleaveprovidedforundertheActandtheseRules.

Section22.EducationalBenefitsTheDepEd,CHEDandTESDAshallprovide
thefollowingbenefitsandprivileges:

(a)Scholarshipprogramsforqualifiedsoloparentsandtheirchildrenin
institutionsofbasic,tertiaryandtechnical/skillseducation;

(b) Nonformal education programs appropriate for solo parents and


theirchildren.

ApplicationProcedure:

1.ApplicantmustsecureapplicationformfromeitherDepEd,CHEDand
TESDAdependingontheirneed;

2. Submit the duly accomplished application form together with the


requireddocumentstotheappropriateagency.

The following are the documents required to be attached with the


application:

1.SoloParentIdentificationCard

2.BarangayClearance

3.BirthCertificate

4.Noticeofadmissionfromtheschool

5. Original or Certified True Copy of the transcript of record, or


theReportCareofthelastyeartheapplicantattendedschool.

Section23.HousingBenefitsSoloparentswhomeettheeligibilitycriteria
forhousingassistanceunderR.A.No.7279(UrbanDevelopmentandHousing
Actof1992)andotherrelatedrulesandregulationsofparticipatinghousing
agenciesshallbeprovidedwithliberaltermsofpaymentongovernmentlow
costhousingprojects,inaccordancewithhousinglawprovisions,prioritizing
applicantsbelowthepovertylineasdeclaredbytheNSCB.
Section24.TheNHAshallmakeavailablehousingunitstosoloparentsinits
housingprojectssubjecttoexistingdispositionpoliciesormayreferthemto
otherhousingprojects,asappropriate,providedthat:

(a)Theidentifiedsoloparentmustbeeligibleforassistanceunderthe
provisionsofthisAct;

(b) Solo parents applying for housing benefits must meet the
qualification criteria for housing assistance under Republic Act
7279, or the Urban Development and Housing Act (UDHA) and
other NHA eligibility criteria under existing policies, rules and
regulations;and

(c) Eligible solo parents shall file their application for housing unit
directlywiththeconcernedNHAProjectOffices.

Upon written request, the NHA shall provide the DSWD a listing of NHA
projectswithavailablehousingunitsfordisposition.Thislistshallbeupdated
andprovidedsemiannually.
Section 25. Medical Assistance The DOH shall develop a comprehensive
healthcareprogramforsoloparentsandtheirchildren.Theprogramshallbe
implemented by the DOH through their retained hospitals and medical
centers and the local government units (LGUs) through their
provincial/district/city/municipalhospitalsandruralhealthunits(RHUs).
Section26.EssentialHealthPackagesToensurethestateofwellbeingof
the solo parent and his/her family, healthy/medical services shall be made
availableatalltimes,inalllevelsofhealthcaredeliverysystemasmentioned
in the previous section. These health/medical services shall be part of the
regularessentialhealthpackagesbeingprovidedatvariousstagesoflife.

ARTICLEVI
ADDITIONALPOWERSANDFUNCTIONSOFTHEDSWD
Section27.AdditionalPowersandFunctionsoftheDSWDTheDSWDshall
performthefollowingadditionalpowersandfunctionsrelativetothewelfare
anddevelopmentofsoloparentsandtheirfamilies:

(a)Conductresearchnecessaryto:

(1)developanewbodyofknowledgeonsoloparents;

(2) Define executive and legislative measures needed to promote


andprotecttheinterestofsoloparentsandtheirchildren;and

(3) Assess the effectiveness of policies and programs designed for


soloparentsandtheirchildren;

Thecommissioningorcontractingoutfortheconductofsaidresearchshall
beinherentintheperformanceofhereinfunction;

(b)Coordinatetheactivitiesofvariousgovernmentagencies,LGUs,and
nongovernmentorganizationsengagedinpromotingandprotecting
theinterestsofsoloparentsandtheirchildren;

(c)Coordinatethedisseminationofinformationconcerningthebenefits
oftheActandtheseRules,aswellasotheradvocacyactivities;and

(d) Monitor the implementation of the provisions of this Act and


suggest mechanisms by which such provisions are efficiently and
effectivelyimplemented.

Section 28. Review Committee A special review committee comprised of


membersfromtheDSWD,DOH,DepEd,DILG,CHED,TESDA,NHA,DOLEand
other related government agencies and nongovernment organizations or
civilsocietyinvolvedintheimplementationoftheprovisionsoftheActshall
be created and headed by the DSWD for the purpose of evaluating the
efficacyandrelevancyoftheprovisionsoftheActtothepresentsituation.
The duties and responsibilities of the members of this Review Committee
shallbeconsideredaspartoftheirregularfunctions.

ARTICLEVII
FINALPROVISIONS
Section 29. Appropriations The amount necessary to carry out the
provisions of the Act shall be included in the budget of concerned
governmentagenciesintheGeneralAppropriationsActoftheyearfollowing
itsenactmentintolawandthereafter.
Section 30. Repealing Clause All laws, decrees, executive orders,
administrativeordersorpartsthereofinconsistentwiththeprovisionsofthe
Actareherebyrepealed,amendedormodifiedaccordingly.
Section31.SeparabilityClauseIfanyprovisionoftheActisheldinvalidor
unconstitutional,other provisions notaffected thereby shall continue to be
infullforceandeffect.

Section 32. Effectivity Clause These Implementing Rules and Regulations


shalltakeeffectfifteen(15)daysfollowingitspublicationinone(1)national
newspaperofgeneralcirculation.

7. ServiceCharges

Reference:Art.96;OmnibusRules,BookIII,RuleVI

ART.96.Servicecharges.Allservicechargescollectedbyhotels,restaurants
and similar establishments shall be distributed at the rate of eightyfive
percent (85%) for all covered employees and fifteen percent (15%) for
management.Theshareoftheemployeesshallbeequallydistributedamong
them. In case the service charge is abolished, the share of the covered
employees shall be considered integrated in their wages.

RULE
ServiceCharges

VI

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,
andsimilarenterprises,includingthoseentitiesoperatingprimarilyasprivate
subsidiariesoftheGovernment.
SECTION 2. Employees covered. This rule shall apply to all employees of
covered employers, regardless of their positions, designations or
employmentstatus,andirrespectiveofthemethodbywhichtheirwagesare
paidexcepttomanagerialemployees.
Asusedherein,a"managerialemployee"shallmeanonewhoisvestedwith
powers or prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, layoff, recall, discharge, assign, or
discipline employees or to effectively recommend such managerial actions.

Allemployeesnotfallingwithinthisdefinitionshallbeconsideredrankand
fileemployees.
SECTION3.Distributionofservicecharges.Allservicechargescollectedby
coveredemployersshallbedistributedattherateof85%fortheemployees
and 15% for the management. The 85% shall be distributed equally among
thecoveredemployees.The15%shallbeforthedispositionbymanagement
toanswerforlossesandbreakagesanddistributiontomanagerialemployees
atthediscretionofthemanagementinthelattercase.
SECTION4.Frequencyofdistribution.Thesharesreferredtohereinshall
be distributed and paid to the employees not less than once every two (2)
weeksortwiceamonthatintervalsnotexceedingsixteen(16)days.
SECTION 5. Integration of service charges. In case the service charges is
abolishedtheshareofcoveredemployeesshallbeconsideredintegratedin
their wages. The basis of the amount tobe integrated shall be the average
monthly share of each employee for the past twelve (12) months
immediatelyprecedingtheabolitionofwithdrawalofsuchcharges.
SECTION6.Relationtoagreements.NothinginthisRuleshallpreventthe
employer and his employees from entering into any agreement with terms
morefavorabletotheemployeesthanthoseprovidedherein,orbeusedto
diminish any benefit granted to the employees under existing laws,
agreementandvoluntaryemployerpractice.
SECTION7.Thisruleshallbewithoutprejudicetoexisting,futurecollective
bargainingagreements.
Nothinginthisruleshallbeconstruedtojustifythereductionordiminution
of any benefit being enjoyed by any employee at the time of effectivity of
thisrule.
a. CoveredEmployees,Art.96

b. Sharing,Art.96

G.MinimumWagesandWageFixingMachinery

Reference:Art.96;OmnibusRules,BookIII,RulesVIIVIII

ART. 99. Regional minimum wages. The minimum wage rates for
agricultural and nonagricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite
WagesandProductivityBoards.(AsamendedbySection3,RepublicActNo.
6727,June9,1989).

Art XIII, Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment and
equalityofemploymentopportunitiesforall.
It shall guarantee the rights of all workers to selforganization, collective
bargainingandnegotiations,andpeacefulconcertedactivities,includingthe
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
participateinpolicyanddecisionmakingprocessesaffectingtheirrightsand
benefitsasmaybeprovidedbylaw.
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
compliancetherewithtofosterindustrialpeace.
The State shall regulate the relations between workers and employers,
recognizingtherightoflabortoitsjustshareinthefruitsofproductionand
the right of enterprises to reasonable returns to investments, and to
expansionandgrowth.

RULE
Wages

VII

SECTION1.DefinitionofTerms.AsusedinthisRules
a)"Act"meansRepublicActNo.6727;
b)"Commission"meanstheNationalWagesandProductivityCommission;

c)"Board"meanstheRegionalTripartiteWagesandProductivityBoard;
d)"Agriculture"referstoallfarmingactivitiesinallitsbranchesandincludes
amongothers,thecultivationandtillageofthesoil,production,cultivation,
growing and harvesting of any agricultural or horticultural commodities,
dairying,raisingoflivestockorpoultry,thecultureoffishandotheraquatic
productsinfarmsorponds,andanyactivitiesperformedbyafarmerorona
farm as an incident to or in conjunction with such farming operations, but
does not include the manufacturing and/or processing of sugar, coconut,
abaca,tobacco,pineapple,aquaticorotherfarmproducts;
e)"PlantationAgriculturalEnterprise"isoneengagedinagriculturewithinan
areaofmorethan24hectaresinalocalityand/orwhichemploysatleast20
workers. Any other agricultural enterprise shall be considered as "Non
PlantationAgriculturalEnterprises";
f) "Retail Establishment" is one principally engaged in the sale of goods to
endusersforpersonalorhouseholduse;
g)"ServiceEstablishment"isoneprimarilyengagedinthesaleofserviceto
individuals for their own or household use and is generally recognized as
such;
h) "Cottage/Handicraft Establishment" is one engaged in an economic
endeavorinwhichtheproductsareprimarilydoneinthehomeorsuchother
places for profit which requires manual dexterity and craftsmanship and
whose capitalization does not exceed P500,000, regardless of previous
registrationwiththedefunctNACIDA;
i)"NationalCapitalRegion"coversthecitiesofKalookan,Manila,Pasayand
QuezonandthemunicipalitiesofLasPias,Makati,Malabon,Mandaluyong,
Marikina,Muntinlupa,Navotas,Paraaque,Pasig,Pateros,SanJuan,Taguig
andValenzuela;
j) "Region III" covers the provinces of Bataan, Bulacan, Nueva Ecija,
Pampanga, Tarlac, and Zambales and the cities of Angeles, Cabanatuan,
Olongapo,PalayanandSanJose;
k) "Region IV" covers the provinces of Aurora, Batangas, Cavite, Laguna,
Marinduque,OccidentalMindoro,Palawan,Quezon,RizalandRomblonand

the cities of Batangas, Cavite, Lipa, Lucena, Puerto Princesa, San Pablo,
TagaytayandTreceMartires;
l)"Department"referstotheDepartmentofLaborandEmployment;
m)"Secretary"meanstheSecretaryofLaborandEmployment;
n)"BasicWage"meansallremunerationorearningspaidbyanemployerto
aworkerforservicesrenderedonnormalworkingdaysandhoursbutdoes
not include costofliving allowances, profit sharing payments, premium
payments, 13th month pay or other monetary benefits which are not
consideredaspartoforintegratedintotheregularsalaryoftheworkerson
thedatetheActbecameeffective."
o) "Statutory Minimum Wage" is the lowest wage fixed by law that an
employercanpayhisworkers;
p)"WageDistortion"meansasituationwhereanincreaseinprescribedwage
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,orotherlogicalbasesofdifferentiation;
q) "Capitalization" means paidup capital, in the case of a corporation, and
totalinvestedcapital,inthecaseofapartnershiporsingleproprietorship.
CHAPTER
WageIncrease

SECTION 1. Coverage. The wage increase prescribed under the Act shall
applytoallworkersandemployeesintheprivatesectorregardlessoftheir
position,designationorstatus,andirrespectiveofthemethodbywhichtheir
wagesarepaid,except:
a)Householdordomestichelpers,includingfamilydriversandworkersinthe
personalserviceofanother;
b) Workers and employees in retail/service establishments regularly
employingnotmorethan10workers,whenexemptedfromcompliancewith

the Act, for a period fixed by the Commission/Boards in accordance with


Section4(c)oftheActandSection15,Chapter1oftheseRules;
c)WorkersandemployeesinnewbusinessenterprisesoutsidetheNational
Capital Region and export processing zones for a period of not more than
two or three years, as the case may be, from the start of operations when
exemptedinaccordancewithSection5oftheActandSection15,ChapterI
oftheseRules;
d)WorkersandemployeesreceivingabasicwageofmorethanP100.00per
day.
SECTION 2. Effectivity. The Act takes effect on July 1, 1989, 15 days
following its complete publication in two newspapers of general circulation
onJune15,1989pursuanttoSection15thereof.
SECTION3.AmountofMinimumWageIncrease.EffectiveJuly1,1989,the
dailystatutoryminimumwageratesofcoveredworkersandemployeesshall
beincreasedasfollows:
a)P25.00forthoseintheNationalCapitalRegion;
b) P25.00 for those outside the National Capital Region, except for the
following:
P20.00 for those in plantation agricultural enterprises with an annual gross
sales of less than P5 million in the fiscal year immediately preceding the
effectivityoftheAct;
P15.00forthoseinthefollowingenterprises:
1.Nonplantationagriculture
2.Cottage/handicraft
3.Retail/Serviceregularlyemployingnotmorethan10workers
4.BusinessenterpriseswithacapitalizationofnotmorethanP500,000and
employingnotmorethan20workers.

SECTION4.WhenWageIncreaseDueOtherWorkers.a)Allworkersand
employees who, prior to July 1, 1989, were already receiving a basic wage
abovethestatutoryminimumwageratesprovidedunderRepublicAct6640
butnotoverP100.00perdayshallreceiveawageincreaseequivalenttothat
providedintheprecedingSection.
b) Those receiving not more than the following monthly basic wage rates
priortoJuly1,1989shallbedeemedcoveredbytheprecedingsubsection:
(i)P3,257.50wheretheworkersandemployeesworkeveryday,including
premium payments for Sundays or rest days, special days and regular
holidays.
(ii) P3,041.67 where the workers and employees do not work but
consideredpaidonrestdays,specialdaysandregularholidays.
(iii)P2,616.67wheretheworkersandemployeesdonotworkandarenot
consideredpaidonSundaysorrestdays.
(iv)P2,183.33wheretheworkersandemployeesdonotworkandarenot
consideredpaidonSaturdaysandSundaysorrestdays.
c)Workersandemployeeswho,priortoJuly1,1989,werereceivingabasic
wageofmorethanP100.00perdayoritsmonthlyequivalent,arenotbylaw
entitled to the wage increase provided under the Act. They may however,
receive wage increases through the correction of wage distortions in
accordancewithSection16,ChapterIoftheseRules.
SECTION 5. Daily Statutory Minimum Wage Rates. The daily minimum
wageratesofworkersandemployeesshallbeasfollows:
Sector/Industry
Under

R.
A.
6640

(Effective

Dec.
14,
1987)1989)
A.NATIONALCAPITALREGION
NonAgricultureP64.00P89.00

R.

Under
A.
6727
(Effective
July
1,

Agriculture
Plantation54.0079.00
NonPlantation43.5068.50
Cottage/Handicraft
Employing
more
workers52.0077.00
Employing
not
30workers50.0075.00

than
more

Private
With
bed
capacity
than10064.0089.00

than

of

With
bed
capacity
orless60.0085.00
Retail/Service
Employing
more
workers64.0089.00

30

of

Hospitals
more
100

than

15

to

15

more

than

annual

gross

Plantation
with
annual
salesoflessthanP5M54.0074.00

gross

Employing
11
workers60.0085.00
Employing
not
10workers43.0068.00
B.OUTSIDENATIONALCAPITALREGION
NonAgriculture64.0089.00
Agriculture
Plantation
with
salesofP5Mormore54.0079.00

Nonplantation43.5058.50

Cottage/Handicraft
Employing
more
30workers52.0067.00

than

Employing
not
than30workers50.0065.00

more

PrivateHospitals60.0085.00
Retail/Service
Cities
than150,000

w/

population

of

Employing
more
15workers64.0089.00

more
than

Employing11to15workers60.0085.00
Employing
not
10workers43.0058.00

more

than

Plantation
w/
annual
salesofP5Mormore48.5073.50

gross

Plantation
w/
annual
salesoflessthanP5M48.5068.50

gross

SugarMills
Agriculture

Nonplantation43.5058.50
Business
Enterprises
w/
of
not
more
than
employing
not
more
than
NonAgriculture64.0079.00

Capitalization
P500,000
and
20
workers

Agriculture
ProductsOtherthanSugar54.0069.00

Plantation

Sugar48.5063.50

PrivateHospitals60.0075.00
Retail/Service
Cities
than150,000

w/

population

of

Employing
more
15workers64.0079.00

more
than

Employing11to15workers60.0075.00
Municipalities
w/
population
than150,000

and
of

not

Employing
more
than
workers60.0075.00

Cities
more
10

SECTION 6. Suggested Formula in Determining the Equivalent Monthly


Statutory Minimum Wage Rates. Without prejudice to existing company
practices, agreements or policies, the following formula may be used as
guides in determining the equivalent monthly statutory minimum wage
rates:
a) For those who are required to work everyday including Sundays or rest
days,specialdaysandregularholidays:
EquivalentApplicabledailywagerate(ADR)x390.90days
Monthly=
Rate(EMR)12
Where390.90days=
302daysOrdinaryworkingdays
20days10regularholidaysx200%
66.30days51restdaysx130%
2.60days2specialdaysx130%

390.90daysTotalequivalentnumberofdays.
b)Forthosewhodonotworkbutconsideredpaidonrestdays,specialdays
andregularholidays:
ADRx365days
EMR=
12
Where365days=
302daysOrdinaryworkingdays
51daysRestdays
10daysRegularholidays
2daysSpecialdays
365daysTotalequivalentnumberofdays
c)ForthosewhodonotworkandarenotconsideredpaidonSundaysorrest
days:
ADRx314days
EMR=
12
Where314days=
302daysOrdinaryworkingdays
10daysRegularholidays
2daysSpecialdays(Ifconsidered
paid;Ifactuallyworked,
thisisequivalentto2.6days)
314daysTotalequivalentnumberofdays

d)ForthosewhodonotworkandarenotconsideredpaidonSaturdaysor
restdays:
ADRx262days
EMR=
12
Where262days=
250daysOrdinaryworkingdays
10daysRegularholidays
2daysSpecialdays(Ifconsideredpaid;Ifactually
worked,thisisequivalentto2.6days)
262daysTotalequivalentnumberofdays
Note:ForworkerswhoserestdaysfallonSundays,thenumberofrestdaysin
a year is reduced from 52 to 51 days, the last Sunday of August being a
regularholidayunderExecutiveOrderNo.201.Forpurposesofcomputation,
saidholiday,althoughstillarestdayforthem,isincludedinthetenregular
holidays.ForworkerswhoserestdaysdonotfallonSundays,thenumberof
restdaysis52days,asthereare52weeksinayear.
Nothing herein shall be considered as authorizing the reduction of benefits
grantedunderexistingagreementsoremployerpractices/policies.
SECTION7.BasisofMinimumWagesRates.Thestatutoryminimumwage
rulesprescribedundertheActshallbeforthenormalworkinghours,which
shallnotexceedeighthoursworkaday.
SECTION8.CreditableWageIncrease.
a) No wage increase shall be credited as compliance with the increases
prescribed under the Act unless expressly provided under collective
bargainingagreements;and,suchwageincreasewasgrantednotearlierthan
April 1, 1989 but not later than July 1, 1989. Where the wage increase

grantedislessthantheprescribedincreaseundertheAct,theemployershall
paythedifference.
b)Anniversarywageincreaseprovidedincollectiveagreements,meritwage
increase, and those resulting from the regularization or promotion of
employeesshallnotbecreditedascompliancethereto.
SECTION9.WorkersPaidbyResults.
a) All workers paid by results, including those who are paid on piecework,
takay, pakyaw, or task basis, shall receive not less than the applicable
statutory minimum wage rates prescribed under the Act for the normal
workinghourswhichshallnotexceedeighthoursworkaday,oraproportion
thereofforworkoflessthanthenormalworkinghours.
The adjusted minimum wage rates for workers paid by results shall be
computedinaccordancewiththefollowingsteps:
1)AmountofincreaseinAMWPreviousAMWx100=%Increase;
2)Existingrate/piecex%increase=increaseinrate/piece;
3)Existingrate/piece+increaseinrate/piece=Adjustedrate/piece.
WhereAMWistheapplicableminimumwagerate.
b) The wage rates of workers who are paid by results shall continue to be
established in accordance with Article 101 of the Labor Code, as amended
anditsimplementingregulations.
SECTION10.WagesofSpecialGroupsofWorkers.Wagesofapprentices,
learnersandhandicappedworkersshallinnocasebelessthan75percentof
theapplicablestatutoryminimumwagerates.
All recognized learnership and apprenticeship agreements entered into
beforeJuly1,1989shallbeconsideredasautomaticallymodifiedinsofaras
their wage clauses are concerned to reflect the increases prescribed under
theAct.
SECTION 11. Application to Contractors. In the case of contracts for
construction projects and for security, janitorial and similar services, the

prescribed wage increases shall be borne by the principals or clients of the


construction/servicecontractorsandthecontractshallbedeemedamended
accordingly.Intheevent,however,thattheprincipalorclientfailstopaythe
prescribed wage rates, the construction/service contractor shall be jointly
andseverallyliablewithhisprincipalorclient.
SECTION 12. Application to Private Educational Institution. Private
educational institutions which increased tuition fees beginning school year
19891990 shall comply with the P25.00 per day wage increase prescribed
undertheActeffectiveasfollows:
a)Incaseswherethetuitionfeeincreasewaseffectedbeforetheeffectivity
oftheAct,thewageincreaseshalltakeeffectonlyJuly1,1989.
b) In cases where the tuition fee increase was effected on or after the
effectivity of the Act, the wage increase shall take effect not later than the
date the school actually increased tuition but in the latter case, such wage
increasemaynotbemaderetroactiveinJuly1,1989.
Beginning school year 19901991, all schools shall implement the wage
increase regardless of whether or not they have actually increased tuition
fees.
SECTION 13. Mobile and Branch Workers. The statutory minimum wage
rates of workers, who by the nature of their work have to travel, shall be
thoseapplicableinthedomicileorheadofficeoftheemployer.
The minimum wage rates of workers working in branches or agencies of
establishments in or outside the National Capital Region shall be those
applicableintheplacewheretheyarestationed.
SECTION 14. Transfer of Personnel. The transfer of personnel to areas
outside the National Capital Region shall not be a valid ground for the
reduction of the wage rates being enjoyed by the workers prior to such
transfer. The workers transferred to the National Capital Region shall be
entitledtotheminimumwagerateapplicabletherein.
SECTION15.Exemptions.

a)Thefollowingestablishmentsmaybeexemptedfromcompliancewiththe
wageincreaseprescribedundertheAct:
1) Retail/Service establishments regularly employing not more than 10
workersuponapplicationwithandasdeterminedbytheappropriateBoard
inaccordancewithapplicableguidelinestobeissuedbytheCommission.
2) New business enterprises that may be established outside the National
Capital Region and export processing zones from July 1, 1989 to June 30,
1993, whose operation or investments need initial assistance may be
exemptedfornotmorethanthreeyearsfromthestartofoperations,subject
to guidelines to be issued by the Secretary in consultation with the
DepartmentofTradeandIndustryandtheDepartmentofAgriculture.
New business enterprises in Region III (Central Luzon) and Region IV
(Southern Tagalog) may be exempted for two years only from start of
operations, except those that may be established in the provinces of
Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon,
Quezon and Aurora, which may also be exempted for not more than three
yearsfromthestartofoperations.
b) Whenever an application for exemption has been duly filed with the
appropriateofficeintheDepartment/Board,actionbytheRegionalOfficeof
theDepartmentonanycomplaintsforallegednoncompliancewiththeAct
shallbedeferredpendingresolutionoftheapplicantforexemption.
c)Intheeventthattheapplicationforexemptionisnotgranted,theworkers
and employees shall receive the appropriate compensation due them as
provided for under the Act plus interest of one percent per month
retroactivetoJuly1,1989orthestartofoperationswhicheverisapplicable.
SECTION16.EffectsonExistingWageStructure.Wheretheapplicationof
the wage increase prescribed herein results in distortions in the wage
structurewithinanestablishmentwhichgivesrisetoadisputetherein,such
disputeshallfirstbesettledvoluntarilybetweentheparties.Intheeventofa
deadlock, such dispute shall be finally resolved through compulsory
arbitrationbytheregionalarbitrationbranchoftheNationalLaborRelations
Commission(NLRC)havingjurisdictionovertheworkplace.

The NLRC shall conduct continuous hearings and decide any dispute arising
from wage distortions within twenty calendar days from the time said
disputeisformallysubmittedtoitforarbitration.Thependencyofadispute
arisingfromawagedistortionshallnotinanywaydelaytheapplicabilityof
theincreasesinthewageratesprescribedundertheAct.
Anyissueinvolvingwagedistortionshallnotbeagroundforastrike/lockout.
SECTION 17. Complaints for NonCompliance. Complaints for non
compliance with the wage increases prescribed under the Act shall be filed
with the Regional Offices of the Department having jurisdiction over the
workplace and shall be the subject of enforcement proceedings under
Articles128and129oftheLaborCode,asamended.
SECTION 18. Conduct of inspection by the Department. The Department
shall conduct inspections of establishments, as often as necessary, to
determine whether the workers are paid the prescribed wage rates and
other benefits granted by law or any Wage Order. In the conduct of
inspection in unionized companies, Department inspectors shall always be
accompaniedbythepresidentorotherresponsibleofficeroftherecognized
bargaining unit or of any interested union. In the case of nonunionized
establishments,aworkerrepresentingtheworkersinthesaidcompanyshall
accompanytheinspector.
Theworker'srepresentativeshallhavetherighttosubmithisownfindingsto
the Department and to testify on the same if he does not concur with the
findingsofthelaborinspector.
SECTION19.PaymentofWages.Uponwrittenpetitionofthemajorityof
the workers and employees concerned, all private establishments,
companies, businesses and other entities with at least twenty workers and
located within one kilometer radius to a commercial, savings or rural bank,
shallpaythewagesandotherbenefitsoftheirworkersthroughanyofsaid
banks,withintheperiodandinthemannerandformprescribedunderthe
LaborCodeasamended.
SECTION 20. Duty of Bank. Whenever applicable and upon request of
concerned worker or union, the bank through which wages and other

benefitsarepaidissueacertificationoftherecordofpaymentofsaidwages
andbenefitsofaparticularworkerorworkersforaparticularpayrollperiod.
CHAPTER
II
The National Wages and Productivity Commission and Regional Tripartite
WagesandProductivityBoards
SECTION 1. Commission. The National Wages and Productivity
Commission created under the Act shall hold office in the National Capital
Region.TheCommissionshallbeattachedtotheDepartmentforpolicyand
programcoordination.
SECTION 2. Powers and Functions of the Commission. The Commission
shallhavethefollowingpowersandfunctions:
a)ToactasthenationalconsultativeandadvisorybodytothePresidentof
the Philippines and Congress on matters relating to wages, incomes and
productivity;
b)Toformulatepoliciesandguidelinesonwages,incomesandproductivity
improvementattheenterprise,industryandnationallevels;
c) To prescribe rules and guidelines for the determination of appropriate
minimum wage and productivity measures at the regional, provincial or
industrylevels;
d) To review regional wage levels set by the Regional Tripartite Wages and
Productivity Board to determine if these are in accordance with prescribed
guidelinesandnationaldevelopmentplans;
e)Toundertakestudies,researchesandsurveysnecessaryfortheattainment
of its functions and objectives, and to collect and compile data and
periodically disseminate information on wages and productivity and other
relatedinformation,including,butnotlimitedto,employment,costofliving,
laborcosts,investmentsandreturns;
f) To review plans and programs of the Regional Tripartite Wages and
ProductivityBoardstodeterminewhethertheseareconsistentwithnational
developmentplans;

g) To exercise technical and administrative supervision over the Regional


TripartiteWagesandProductivityBoards;
h) To call, from time to time, a national tripartite conference of
representativesofgovernment,workersandemployersfortheconsideration
ofmeasurestopromotewagerationalizationandproductivity;and
i)Toexercisesuchpowersandfunctionsasmaybenecessarytoimplement
thisAct.
SECTION 3. Composition of the Commission. The Commission shall be
composed of the Secretary as exofficio Chairman, the Director General of
theNationalEconomicandDevelopmentAuthority(NEDA)asexofficioVice
Chairmanandtwomemberseachfromworkersandemployerssectorswho
shall be appointed by the President for a term of five years upon
recommendationoftheSecretary.Therecommendeesshallbeselectedfrom
thelistsofnomineessubmittedbytheworkers'andemployers'sectors.The
ExecutiveDirectoroftheCommissionSecretariatshallbealsoamemberof
theCommission.
ThemembersoftheCommissionrepresentinglaborandmanagementshall
have the same rank, emoluments, allowances and other benefits as those
prescribed by law for labor and management representatives in the
Employees'CompensationCommission.
SECTION4.CommissionSecretariat.TheCommissionshallbeassistedbya
SecretariattobeheadedbyanExecutiveDirectorandtwoDeputyDirectors
who shall be appointed by the President upon recommendation of the
Secretary.
The Executive Director shall have the rank of a Department Assistant
Secretary, while the Deputy Directors that of a Bureau Director. The
Executive Director and Deputy Directors shall receive the corresponding
salary,benefitsandotheremolumentsofthepositions.
SECTION 5. Regional Tripartite Wages and Productivity Boards. The
RegionalWagesandProductivityBoardscreatedundertheActinallregions,
including autonomous regions as may be established by law, shall hold
officesinareaswheretheRegionalOfficesoftheDepartmentarelocated.

SECTION6.PowersandFunctionsoftheBoards.TheBoardsshallhavethe
followingpowersandfunctions:
a) To develop plans, programs and projects relative to wages, incomes and
productivityimprovementfortheirrespectiveregions;
b) To determine and fix minimum wage rates applicable in their region,
provincesorindustriesthereinandtoissuethecorrespondingwageorders,
subjecttoguidelinesissuedbytheCommission;
c) To undertake studies, researches, and surveys necessary for the
attainment of their functions, objectives and programs, and to collect and
compiledataonwages,incomes,productivityandotherrelatedinformation
andperiodicallydisseminatethesame;
d) To coordinate with the other Boards as may be necessary to attain the
policyandintentionoftheLaborCode;
e)Toreceive,processandactonapplicationsforexemptionfromprescribed
wageratesasmaybeprovidedbylaworanyWageOrder;and
f)Toexercisesuchotherpowersandfunctionsasmaybenecessarytocarry
outtheirmandateundertheLaborCode.
Implementation of the plans, programs and projects of the Boards shall be
through the respective Regional Offices of the Department, provided,
however,thattheBoardsshallhavetechnicalsupervisionovertheRegional
OfficeoftheDepartmentwithrespecttotheimplementationoftheseplans,
programsandprojects.
SECTION7.CompositionsoftheBoards.EachBoardshallbecomposedof
theRegionalDirectoroftheDepartmentasChairman,theRegionalDirectors
of the National Economic and Development Authority (NEDA) and
DepartmentofTradeandIndustry(DTI)asViceChairmenandtwomembers
each of workers and employers sectors who shall be appointed by the
PresidentforatermoffiveyearsupontherecommendationoftheSecretary.
Therecommendeesshallbeselectedfromthelistofnomineessubmittedby
theworkersandemployerssectors.
EachBoardshallbeassistedbyaSecretariat.

SECTION8.AuthoritytoOrganizeandAppointPersonnel.TheChairmanof
the Commission shall organize such units and appoint the necessary
personnel of the Commission and Board Secretaries, subject to pertinent
laws,rulesandregulations.
CHAPTER
MinimumWageDetermination

III

SECTION 1. Regional Minimum Wages. The minimum wage rates for


agriculturalandnonagriculturalworkersandemployeesineveryregionshall
bethoseprescribedbytheBoardswhichshallinnocasebelowerthanthe
statutory minimum wage rates. These wage rates may include wages by
industry,provinceorlocalityasmaybedeemednecessarybytheBoards.
SECTION 2. Standards/Criteria for Minimum Wage Fixing. The regional
minimumwagestobeestablishedbytheBoardsshallbeasnearlyadequate
as is economically feasible to maintain the minimum standards of living
necessary for the health, efficiency and general wellbeing of the workers
within the framework of the national economic and social development
programs. In the determination of regional minimum wages, the Boards,
shall,amongotherrelevantfactors,considerthefollowing:
a)Thedemandforlivingwages;
b)Wageadjustmentvisavistheconsumerpriceindex;
c)Thecostoflivingandchangesorincreasestherein;
d)Theneedsofworkersandtheirfamilies;
e)Theneedtoinduceindustriestoinvestincountryside;
f)Improvementsinstandardsofliving;
g)Theprevailingwagelevels;
h)Fairreturnofthecapitalinvestedandcapacitytopayofemployers;
i)Effectsonemploymentgenerationandfamilyincome;and

j)Theequitabledistributionofincomeandwealthalongtheimperativesof
economicandsocialdevelopment.
SECTION 3. Wage Order. Whenever conditions in the region so warrant,
the Board shall investigate and study all pertinent facts; and, based on
standards and criteria prescribed herein, shall determine whether a Wage
Ordershouldbeissued.
In the performance of its wage determining functions, the Board shall
conduct public hearings and consultations giving notices to employees' and
employers' groups, provincial, city and municipal officials and other
interestedparties.
SECTION 4. Effectivity of Wage Order. Any Wage Order issued by the
Boardshalltakeeffect15daysafteritscompletepublicationinatleastone
newspaperofgeneralcirculationintheregion.
SECTION5.AppealtotheCommission.AnypartyaggrievedbytheWage
OrderissuedbytheBoardmayfileanappealwiththeCommissionwithinten
calendar days from the publication of the Order. The Commission shall
decidetheappealwithinsixtycalendardaysfromthedateoffiling.
SECTION6.EffectofAppeal.Thefilingoftheappealshallnotsuspendthe
effectivity of the Wage Order unless the person appealing such order files
withtheCommissionanundertakingwithasuretyorsuretiesinsuchamount
asmaybefixedbytheCommission.
SECTION7.WageDistortions.Wheretheapplicationofanywageincrease
resultingfromaWageOrderissuedbyanyBoardresultsindistortionsinthe
wage structure within an establishment, the employer and the union shall
negotiate to correct the distortions using the grievance procedure under
their collective bargaining agreement. If it remains unresolved, it shall be
decided through voluntary arbitration ten calendar days from the time the
dispute was referred for voluntary arbitration, unless otherwise agreed by
thepartiesinwriting.
Where there are no collective agreements or recognized labor unions, the
employer and workers shall endeavor to correct the wage distortion. Any
dispute arising therefrom shall be settled through the National Conciliation
andMediationBoardandifitremainsunresolvedaftertencalendardaysof

conciliation, it shall be referred to the appropriate branch of the National


Labor Relations Commission (NLRC). The NLRC shall conduct continuous
hearingsanddecidethedisputewithintwentycalendardaysfromthetime
saiddisputeissubmittedforcompulsoryarbitration.
Thependencyofadisputearisingfromawagedistortionshallnotinanyway
delay the applicability of any wage increase prescribed pursuant to the
provisionsoflaworWageOrder.
SECTION 8. NonDiminution of Benefits. Nothing in the Act and in these
Rules shall be construed to reduce any existing laws, decrees, issuances,
executive orders, and/or under any contract or agreement between the
workersandemployers.
SECTION 9. 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
Boards.
SECTION 10. Penal Provisions. Any person, corporation trust, firm,
partnership, association or entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage rates made in accordance
with the Act shall be punished by a fine not exceeding P25,000 and/or
imprisonmentofnotlessthanoneyearnormorethantwoyears:Provided,
thatanypersonconvictedundertheActshallnotbeentitledtothebenefits
providedforundertheProbationLaw.
If the violation is committed by a corporation, trust or firm, partnership,
association or any other entity, the penalty of imprisonment shall be
imposedupontheentity'sresponsibleofficers,including,butnotlimitedto,
the president, vicepresident, chief executive officer, general manager,
managingdirectororpartner.
SECTION 11. Registration/Reporting Requirement. Any person, company,
corporation,partnershiporanyotherentityengagedinbusinessshallsubmit
annually a verified itemized listing of their labor component to the
appropriateBoardandtheNationalStatisticsOfficenotlaterthanJanuary31
ofeachyear,startingonJanuary31,1990inaccordancewiththeformtobe
prescribed by the Commission. The listing shall specify the names, salaries

and wages of their workers and employees below the managerial level
includinglearners,apprenticesanddisabled/handicappedworkers.
CHAPTER
TransitoryProvisions

IV

SECTION 1. Abolition of the National Wages Council and the National


Productivity Commission. The National Wages Council created under
Executive Order No. 614 and the National Productivity Commission created
under Executive Order No. 615 are abolished. All properties, records,
equipment, buildings, facilities, and other assets, liabilities and
appropriations of and belonging to the abovementioned offices, as well as
other matters pending herein, shall be transferred to the Commission. All
personneloftheaboveabolishedofficesshallcontinuetofunctioninahold
over capacity and shall be preferentially considered for appointments to or
placementsintheCommission/Boards.
Any official or employee separated from the service as a result of the
abolition of offices pursuant to the Act shall be entitled to appropriate
separation pay of one month salary for every year of service and/or
retirement and other benefits accruing to them under existing laws. In lieu
thereof,attheoptionoftheemployee,heshallbepreferentiallyconsidered
for employment in the government or in any of its subdivisions,
instrumentalities, or agencies, including government owned or controlled
corporationsandtheirsubsidiaries.
SECTION2.InterimProcessingofApplicationsforExemptionandSubmission
ofReports.PendingtheoperationalizationoftheCommissionandBoards,
the National Wages Council shall, in the interim, receive and process
applications for exemption subject to guidelines to be issued by the
Secretary,inaccordancewithSection11oftheAct.
Reports of establishments on their labor component, including wages and
salariesoftheirworkersprescribedundertheAct,shallbesubmittedtothe
NationalWagesCouncilthroughtheRegionalOfficesoftheDepartment.
SECTION 3. Funding Requirement. The funds necessary to carry out the
provisionsoftheActshallbetakenfromtheCompensationandOrganization
AdjustmentFund,theContingentFund,andothersavingsunderRepublicAct

No. 6688, otherwise known as the General Appropriations Act of 1989, or


fromanyunappropriatedfundsoftheNationalTreasury;Provided,thatthe
funding requirements necessary to implement the Act shall be included in
theannualGeneralAppropriationsActforthesucceedingyears.
SECTION 4. Repealing Clause. All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with the provisions of the Act and
this Rules are hereby repealed, amended or modified accordingly. If any
provisionorpartoftheActandthisRules,ortheapplicationthereoftoany
personorcircumstanceisheldinvalidorunconstitutional,theremainderof
theActandtheseRulesortheapplicationofsuchprovisionorpartthereofto
otherpersonsorcircumstanceshallnotbeaffectedthereby.
SECTION5.Effectivity.TheserulesshalltakeeffectonJuly1,1989.
RULE
PaymentofWages

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
prohibitedevenwhenexpresslyrequestedbytheemployee.
SECTION2.Paymentbycheck.Paymentofwagesbybankchecks,postal
checksormoneyordersisallowedwheresuchmannerofwagepaymentis
customaryonthedateoftheeffectivityoftheCode,whereitissostipulated
inacollectiveagreement,orwhereallofthefollowingconditionsaremet:
(a)Thereisabankorotherfacilityforencashmentwithinaradiusofone(1)
kilometerfromtheworkplace;
(b)Theemployeroranyofhisagentsorrepresentativesdoesnotreceiveany
pecuniarybenefitdirectlyorindirectlyfromthearrangement;
(c) The employees are given reasonable time during banking hours to
withdraw their wages from the bank which time shall be considered as
compensablehoursworkedifdoneduringworkinghours;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
wagesbybankchecks.
SECTION3.Timeofpayment.(a)Wagesshallbepaidnotlessthanonce
everytwo(2)weeksortwiceamonthatintervalsnotexceedingsixteen(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
circumstanceshaveceased.
(b) In case of payment of wages by results involving work which cannot be
finishedintwo(2)weeks,paymentshallbemadeatintervalsnotexceeding
sixteen days in proportion to the amount of work completed. Final
settlementshallbemadeimmediatelyuponcompletionofthework.
SECTION4.Placeofpayment.Asageneralrule,theplaceofpaymentshall
be at or near the place of undertaking. Payment in a place other than the
workplaceshallbepermissibleonlyunderthefollowingcircumstances:
(a)Whenpaymentcannotbeeffectedatorneartheplaceofworkbyreason
ofthedeteriorationofpeaceandorderconditions,orbyreasonofactualor
impending emergencies caused by fire, flood, epidemic or other calamity
renderingpaymentthereatimpossible;
(b)Whentheemployerprovidesfreetransportationtotheemployeesback
andforth;and
(c)Underanyotheranalogouscircumstances;Provided,Thatthetimespent
by the employees in collecting their wages shall be considered as
compensablehoursworked;
(d) No employer shall pay his employees in any bar, night or day club,
drinkingestablishment,massageclinic,dancehall,orothersimilarplacesor
in places where games are played with stakes of money or things
representingmoneyexceptinthecaseofpersonsemployedinsaidplaces.
SECTION 5. Direct payment of wages. Payment of wages shall be made
directtotheemployeeentitledtheretoexceptinthefollowingcases:

(a)Wheretheemployerisauthorizedinwritingbytheemployeetopayhis
wagestoamemberofhisfamily;
(b)Wherepaymenttoanotherpersonofanypartoftheemployee'swagesis
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
authorizedinwritingbytheindividualemployeesconcerned;or
(c)IncaseofdeathoftheemployeeasprovidedinthesucceedingSection.
SECTION6.Wagesofdeceasedemployee.Thepaymentofthewagesofa
deceased employee shall be made to his heirs without the necessity of
intestate proceedings. When the heirs are of age, they shall execute an
affidavitattestingtotheirrelationshiptothedeceasedandthefactthatthey
arehisheirstotheexclusionofallotherpersons.Incaseanyoftheheirsisa
minor,suchaffidavitshallbeexecutedinhisbehalfbyhisnaturalguardianor
nextofkin.Uponpresentationoftheaffidavittotheemployer,heshallmake
payment to the heirs as representative of the Secretary of Labor and
Employment.
SECTION7.Civilliabilityofemployerandcontractors.Everyemployeror
indirect employer shall be jointly and severally liable with his contractor or
subcontractor for the unpaid wages of the employees of the latter. Such
employerorindirectemployermayrequirethecontractororsubcontractor
tofurnishabondequaltothecostoflaborundercontractonconditionthat
thebondwillanswerforthewagesduetheemployeesshouldthecontractor
orsubcontractor,asthecasemaybe,failtopaythesame.
SECTION8.JobContracting.Thereisjobcontractingpermissibleunderthe
Codeifthefollowingconditionsaremet:
(a) The contractor carries on an independent business and undertakes the
contractworkonhisownaccountunderhisownresponsibilityaccordingto
his own manner and method, free from the control and direction of his
employerorprincipalinallmattersconnectedwiththeperformanceofthe
workexceptastotheresultsthereof;and

(b)Thecontractorhassubstantialcapitalorinvestmentintheformoftools,
equipment, machineries, work premises, and other materials which are
necessaryintheconductofhisbusiness.
SECTION 9. Laboronly contracting. (a) Any person who undertakes to
supplyworkerstoanemployershallbedeemedtobeengagedinlaboronly
contractingwheresuchperson:
(1) Does not have substantial capital or investment in the form of tools,
equipment,machineries,workpremisesandothermaterials;and
(2)Theworkersrecruitedandplacedbysuchpersonareperformingactivities
which are directly related to the principal business or operations of the
employerinwhichworkersarehabituallyemployed.
(b) Laboronly contracting as defined herein is hereby prohibited and the
person acting as contractor shall be considered merely as an agent or
intermediaryoftheemployerwhoshallberesponsibletotheworkersinthe
samemannerandextentasifthelatterweredirectlyemployedbyhim.
(c) For cases not falling under this Rule, the Secretary of Labor and
Employmentshalldeterminethroughappropriateorderswhetherornotthe
contracting out of labor is permissible in the light of the circumstances of
eachcaseandafterconsideringtheoperatingneedsoftheemployerandthe
rightsoftheworkersinvolved.Insuchcase,hemayprescribeconditionsand
restrictionstoinsuretheprotectionandwelfareoftheworkers.
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
shallbepaidinfullbeforeothercreditorsmayestablishanyclaimtoashare
intheassetsoftheemployer.
SECTION 11. Attorney's fees. Attorney's fees in any judicial or
administrative proceedings for the recovery of wages shall not exceed 10
percent of the amount awarded. The fees may be deducted from the total
amountduethewinningparty.
SECTION 12. Noninterference in disposal of wages. No employer shall
limitorotherwiseinterferewiththefreedomofanyemployeetodisposeof

hiswagesandnoemployershallinanymannerobligeanyofhisemployees
topatronizeanystoreoravailoftheservicesofferedbyanyperson.
SECTION 13. Wages deduction. Deductions from the wages of the
employeesmaybemadebytheemployerinanyofthefollowingcases:
(a)Whenthedeductionsareauthorizedbylaw,includingdeductionsforthe
insurancepremiumsadvancedbytheemployerinbehalfoftheemployeeas
wellasuniondueswheretherighttocheckoffhasbeenrecognizedbythe
employerorauthorizedinwritingbytheindividualemployeehimself.
(b)Whenthedeductionsarewiththewrittenauthorizationoftheemployees
forpaymenttothethirdpersonandtheemployeragreestodoso;Provided,
Thatthelatterdoesnotreceiveanypecuniarybenefit,directlyorindirectly,
fromthetransaction.
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
reimbursementoflossordamagetotools,materials,orequipmentsupplied
bytheemployertotheemployee,theemployermaymakewagedeductions
orrequire the employees to makedeposits from whichdeductions shall be
made,subjecttothefollowingconditions:
(a)Thattheemployeeconcernedisclearlyshowntoberesponsibleforthe
lossordamage;
(b) That the employee is given reasonable opportunity to show cause why
deductionshouldnotbemade;
(c) That the amount of such deduction is fair and reasonable and shall not
exceedtheactuallossordamage;and
(d)Thatthedeductionfromthewagesoftheemployeedoesnotexceed20
percentoftheemployee'swagesinaweek.

1. MinimumWage,Art.99;Consti.,Art.XIII,Sec.3

MINIMUMWAGERATES

ART. 99. Regional minimum wages. The minimum wage rates for
agricultural and nonagricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite
WagesandProductivityBoards.(AsamendedbySection3,RepublicActNo.
6727,June9,1989).

Art XIII, Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment and
equalityofemploymentopportunitiesforall.
It shall guarantee the rights of all workers to selforganization, collective
bargainingandnegotiations,andpeacefulconcertedactivities,includingthe
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
participateinpolicyanddecisionmakingprocessesaffectingtheirrightsand
benefitsasmaybeprovidedbylaw.
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
compliancetherewithtofosterindustrialpeace.
The State shall regulate the relations between workers and employers,
recognizingtherightoflabortoitsjustshareinthefruitsofproductionand
the right of enterprises to reasonable returns to investments, and to
expansionandgrowth.

a. Coverage,Arts.97(b)(c)(e),98

ART.97.Definitions.AsusedinthisTitle:
(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
governmentowned or controlled corporations and institutions, as well as
nonprofitprivateinstitutions,ororganizations.
(c)"Employee"includesanyindividualemployedbyanemployer.

e)"Employ"includestosufferorpermittowork.

ART. 98. Application of Title. This Title shall notapply tofarm tenancy or
leasehold,domesticserviceandpersonsworkingintheirrespectivehomes
inneedleworkorinanycottageindustrydulyregisteredinaccordancewith
law.

Philippine Fisheries Development Authority v. NLRC, 213 SCRA 621


(1992)

b.

1)

2)

Rules
Definition
Chavezv.NLRC,supra
NoWork,NoPay(Afairdayswageforafairdayslabor)

AklanElectricCorp.,Inc.v.NLRC,323SCRA259(2000)

3)

EqualPayforWorkofEqualValue
InternationalSchoolAllianceofEducatorsv.Quisumbing,supra

BankardEmployersUnionv.NLRC,423SCRA148(2004)

4)

Form:AgreementforCompensationofServices
ArmsTaxiv.NLRC,219SCRA306(1993)

c.

1)

MinimumWage
DeterminationofCompliancewithMinimumWage
Iranv.NLRC,289SCRA433(1998)

2)

FacilitiesandSupplements/Allowances
Millaresv.NLRC&PICOP,305SCRA500(1999)

3)

CashWage/Commission
Songcov.NLRC,183SCRA610(1990)

BoieTakedav.DelaSerna,228SCRA329(1993)

PhilippineDuplicatorsv.NLRC,241SCRA380(1995)

4) GratuityandSalary/Wages,Difference

PlasticTownCentercorp.v.NLRC,172SCRA580
(1989)

5) EffectonBenefits

Davao Fruits Corporation v. Associated Labor Union, 225 SCRA 562


(1993)

2. WageFixingMachinery

Reference:WageRationalizationAct(RA6727);Art.120127;Omnibus
Rules,BookIII,RuleIX

Republic
of
the
Philippines
Congress
of
the
Philippines
MetroManila
SecondRegularSession
Begun and held in Metro Manila, on Monday, the twenty
fifth
day
of
July,
nineteen
hundred
and
eightyeight

[REPUBLICACTNO.6727]

AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING


THEMECHANISMANDPROPERSTANDARDSTHEREFOR,AMENDINGFORTHE
PURPOSEARTICLE99OF,ANDINCORPORATINGARTICLES120,121,122,123,
124, 126 AND 127 INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISEKNOWNASTHELABORCODEOFTHEPHILIPPINES,FIXINGNEW
WAGERATES,PROVIDINGWAGEINCENTIVESFORINDUSTRIALDISPERSALTO
THECOUNTRYSIDE,ANDFOROTHERPURPOSES
BeitenactedbytheSenateandHouseofRepresentativesofthePhilippines
inCongressassembled:
Sec.1.ThisActshallbeknownasthe"WageRationalizationAct."
Sec.2.ItisherebydeclaredthepolicyoftheStatetorationalizethefixing
of minimum wages and to promote productivityimprovement and gain
sharingmeasurestoensureadecentstandardoflivingfortheworkersand
theirfamilies;toguaranteetherightsoflabortoitsjustshareinthefruitsof
production; to enhance employment generation in the countryside through
industrydispersal;andtoallowbusinessandindustryreasonablereturnson
investment,expansionandgrowth.
The State shall promote collective bargaining as the primary mode of
setting wages and other terms and conditions of employment; and,
whenevernecessary,theminimumwageratesshallbeadjustedinafairand
equitable manner, considering existing regional disparities in the cost of
livingandothersocioeconomicfactorsandthenationaleconomicandsocial
developmentplans.
Sec. 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
PresidentialDecreeNo.442,asamended,toreadasfollows:
"Art. 99. Regional Minimum Wages. The minimum wage rates for
agricultural and nonagricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite
WagesandProductivityBoards."
"Art.120.CreationoftheNationalWagesandProductivityCommission.
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."
"Art. 121. Powers and Functions of the Commission. The Commission
shallhavethefollowingpowersandfunctions:
(a)ToactasthenationalconsultativeandadvisorybodytothePresidentof
the Philippines and Congress on matters relating to wages, incomes and
productivity;
(b)Toformulatepoliciesandguidelinesonwages,incomesandproductivity
improvementattheenterprise,industryandnationallevels;
(c) To prescribe rules and guidelines for the determination of appropriate
minimum wage and productivity measures at the regional, provincial or
industrylevels;
(d)ToreviewregionalwagelevelssetbytheRegionalTripartiteWagesand
ProductivityBoardstodetermineiftheseareinaccordancewithprescribed
guidelinesandnationaldevelopmentplans;
(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
otherrelatedinformation,including,butnotlimitedto,employment,costof
living,laborcosts,investmentsandreturns;
(f) To review plans and programs of the Regional Tripartite Wages and
ProductivityBoardstodeterminewhethertheseareconsistentwithnational
developmentplans;
(g) To exercise technical and administrative supervision over the Regional
TripartiteWagesandProductivityBoards;
(h) To call, from time to time, a national tripartite conference of
representativesofgovernment,workersandemployersfortheconsideration
ofmeasurestopromotewagerationalizationandproductivity;and

(i)Toexercisesuchpowersandfunctionsasmaybenecessarytoimplement
thisAct.
"The Commission shall be composed of the Secretary of Labor and
Employment as exofficio chairman, the DirectorGeneral of the National
Economic and Development Authority (NEDA) as exofficio vicechairman,
andtwo(2)memberseachfromworkersandemployerssectorswhoshallbe
appointedbythePresidentofthePhilippinesuponrecommendationofthe
Secretary of Labor and Employment to be made on the basis of the list of
nomineessubmittedbytheworkersandemployerssectors,respectively,and
who shall serve for a term of five (5) years. The Executive Director of the
CommissionSecretariatshallalsobeamemberoftheCommission."
"The Commission shall be assisted by a Secretariat to be headed by an
ExecutiveDirectorandtwo(2)DeputyDirectors,whoshallbeappointedby
the President of the Philippines, upon recommendation of the Secretary of
LaborandEmployment."
"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
emolumentsasthatofaBureauDirector.ThemembersoftheCommission
representinglaborandmanagementshallhavethesamerank,emoluments,
allowances and other benefits as those prescribed by law for labor and
managementrepresentativesintheEmployees'CompensationCommission."
"Art.122.CreationofRegionalTripartiteWagesandProductivityBoards.
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
determinetheoffices/headquartersoftherespectiveRegionalBoards.
"The Regional Boards shall have the following powers and functions in
theirrespectiveterritorialjurisdiction:
(a)Todevelopplans,programsandprojectsrelativetowages,incomesand
productivityimprovementfortheirrespectiveregions;

(b) To determine and fix minimum wage rates applicable in their region,
provincesorindustriesthereinandtoissuethecorrespondingwageorders,
subjecttoguidelinesissuedbytheCommission;
(c) To undertake studies, researches, and surveys necessary for the
attainment of their functions, objectives and programs, and to collect and
compiledataonwages,incomes,productivityandotherrelatedinformation
andperiodicallydisseminatethesame;
(d) To coordinate with the other Regional Boards as may be necessary to
attainthepolicyandintentionofthisCode;
(e)Toreceive,processandactonapplicationsforexemptionfromprescribed
wageratesasmaybeprovidedbylaworanyWageOrder;and
(f)Toexercisesuchotherpowersandfunctionsasmaybenecessarytocarry
outtheirmandateunderthisCode.
"Implementation of the plans, programs and projects of the Regional
Boardsreferredtointhesecondparagraph,letter(a)ofthisArticle,shallbe
through the respective regional offices of the Department of Labor and
Employmentwithintheirterritorialjurisdiction;Provided,however,Thatthe
Regional Boards shall have technical supervision over the regional office of
the Department of Labor and Employment with respect to the
implementationofsaidplans,programsandprojects.
"Each Regional Board shall be composed of the Regional Director of the
DepartmentofLaborandEmploymentaschairman,theRegionalDirectorsof
theNationalEconomicandDevelopmentAuthorityandDepartmentofTrade
andIndustryasvicechairmenandtwo(2)memberseachfromworkersand
employers sectors who shall be appointed by the President of the
Philippines, upon recommendation of the Secretary of Labor and
Employment,tobemadeonthebasisofthelistofnomineessubmittedby
the workers and employers sectors, respectively, and who shall serve for a
termoffive(5)years.
"Each Regional Board to be headed by its chairman shall be assisted by a
Secretariat."

"Art. 123. Wage Order. Whenever conditions in the region so warrant,


theRegionalBoardshallinvestigateandstudyallpertinentfacts;and,based
onthestandardsandcriteriahereinprescribed,shallproceedtodetermine
whetheraWageOrdershouldbeissued.
Any such Wage Order shall take effect after fifteen (15) days from its
complete publication in at least one (l) newspaper of general circulation in
theregion.
"Intheperformanceofitswagedeterminingfunctions,theRegionalBoard
shallconductpublichearings/consultations,givingnoticestoemployees'and
employers' groups, provincial, city and municipal officials and other
interestedparties.
"AnypartyaggrievedbytheWageOrderissuedbytheRegionalBoardmay
appealsuchordertotheCommissionwithinten(l0)calendardaysfromthe
publicationofsuchorder.ItshallbemandatoryfortheCommissiontodecide
suchappealwithinsixty(60)calendardaysfromthefilingthereof.
"The filing of the appeal does not operate to stay the order unless the
person appealing such order shall file with the Commission an undertaking
withasuretyorsuretiessatisfactorytotheCommissionforthepaymentto
the employees affected by the order of the corresponding increase, in the
eventsuchorderisaffirmed."
"Art. 124. Standards/Criteria for Minimum Wage Fixing. The regional
minimum wages to be established by the Regional Board shall be as nearly
adequateasiseconomicallyfeasibletomaintaintheminimumstandardsof
living necessary for the health, efficiency and general wellbeing of the
employees within the framework of the national economic and social
development program. In the determination of such regional minimum
wages,theRegionalBoardshall,amongotherrelevantfactors,considerthe
following:
(a)
The
demand
for
living
wages;

(b) Wage adjustment visvis 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)Theequitabledistributionofincomeandwealthalongtheimperativesof
economicandsocialdevelopment.
"ThewagesprescribedinaccordancewiththeprovisionsofthisTitleshall
be the standard prevailing minimum wages in every region. These wages
shall include wages varying with industries, provinces or localities if in the
judgment of the Regional Board conditions make such local differentiation
properandnecessarytoeffectuatethepurposeofthisTitle.
"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
listingof theirlabor component, specifying thenames oftheir workers and
employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed
intheemploymentcontracts,andtheircorrespondingsalariesandwages.
"Wheretheapplicationofanyprescribedwageincreasebyvirtueofalaw
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
voluntaryarbitration.Unlessotherwiseagreedbythepartiesinwriting,such
dispute shall be decided by the voluntary arbitrator or panel of voluntary

arbitrators within ten (10) calendar days from the time said dispute was
referredtovoluntaryarbitration.
"In cases where there are no collective agreements or recognized labor
unions, the employers and workers shall endeavor to correct such
distortions. Any dispute arising therefrom shall be settled through the
NationalConciliationandMediationBoardand,ifitremainsunresolvedafter
ten (10) calendar days of conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission (NLRC). It shall be
mandatory for the NLRC to conduct continuous hearings and decide the
dispute within twenty (20) calendar days from the time said dispute is
submittedforcompulsoryarbitration.
"Thependencyofadisputearisingfromawagedistortionshallnotinany
waydelaytheapplicabilityofanyincreaseinprescribedwageratespursuant
totheprovisionsoflaworWageOrder.
"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
obliteratethedistinctionsembodiedinsuchwagestructurebasedonskills,
lengthofservice,orotherlogicalbasesofdifferentiation.
"All workers paid by result, including those who are paid on piecework,
takay,pakyawortaskbasis,shallreceivenotlessthantheprescribedwage
ratespereight(8)hoursworkaday,oraproportionthereofforworkingless
thaneight(8)hours.
"All recognized learnership and apprenticeship agreements shall be
considered automatically modified insofar as their wage clauses are
concernedtoreflecttheprescribedwagerates."
"Art. 126. Prohibition Against Injunction. No preliminary or permanent
injunction or temporary restraining order may be issued by any court,
tribunal or other entity against any proceedings before the Commission or
theRegionalBoards."

"Art. 127. NonDiminution of Benefits. No Wage Order issued by any


Regional Board shall provide for wage rates lower than the statutory
minimumwageratesprescribedbyCongress."
Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage
ratesofallworkersandemployeesintheprivatesector,whetheragricultural
ornonagricultural,shallbeincreasedbytwentyfivepesos(P25.00)perday,
except that workers and employees in plantation agricultural enterprises
outside of the National Capital Region (NCR) with an annual gross sales of
less than five million pesos (P5,000,000.00) in the preceding year shall be
paid anincreaseof twenty pesos (P20.00), and except further thatworkers
and employees of cottage/handicraft industries, nonplantation agricultural
enterprises,retail/serviceestablishmentsregularlyemployingnotmorethan
ten(10)workers,andbusinessenterpriseswithacapitalizationofnotmore
than five hundred thousand pesos (P500,000.00) and employing not more
thantwenty(20)employees,whicharelocatedoroperatingoutsidetheNCR,
shallbepaidonlyanincreaseoffifteenpesos(P15.00):Provided,Thatthose
alreadyreceiving above the minimum wage ratesup to onehundredpesos
(P100.00) shall also receive an increase of twentyfive pesos (P25.00) per
day, and except that the workers and employees mentioned in the first
exceptionclauseofthissectionshallalsobepaidonlyanincreaseoftwenty
pesos(P20.00),andexceptfurtherthatthoseemployeesenumeratedinthe
secondexceptionclauseofthisSectionshallalsobepaidonlyanincreaseof
fifteenpesos(P15.00):Provide,further,ThattheappropriateRegionalBoard
is hereby authorized to grant additional increases to the workers and
employeesmentionedintheexceptionclausesofthisSectionif,onthebasis
ofitsdeterminationpursuanttoArticle124oftheLaborCodesuchincreases
arenecessary.
(b) The increase of twentyfive pesos (P25.00) prescribed under this
Section shall apply to all workers and employees entitled to the same in
privateeducationalinstitutionsassoonastheyhaveincreasedoraregranted
authority to increase their tuition fees during school year 19891990.
Otherwise,suchincreaseshallbesoapplicablenotlaterthantheopeningof
thenextschoolyearbeginning1990.
(c) Exempted from the provisions of this Act are household or domestic
helpersandpersonsemployedinthepersonalserviceofanother,including
familydrivers.

Retail/service establishments regularly employing not more than ten (10)


workersmaybeexemptedfromtheapplicabilityofthisActuponapplication
with and as determined by the appropriate Regional Board in accordance
with the applicable rules and regulations issued by the Commission.
Whenever an application for exemption has been duly filed with the
appropriate Regional Board, action on any complaint for alleged non
compliance with this Act shall be deferred pending resolution of the
applicationforexemptionbytheappropriateRegionalBoard.
Intheeventthatapplicationsforexemptionsarenotgranted,employees
shallreceivetheappropriatecompensationduethemasprovidedforbythis
Actplusinterestofonepercent(1%)permonthretroactivetotheeffectivity
ofthisAct.
(d) If expressly provided for and agreed upon in the collective bargaining
agreements, all increases in the daily basic wage rates granted by the
employersthree(3)monthsbeforetheeffectivityofthisActshallbecredited
as compliance with the increases in the wage rates prescribed herein,
providedthat,wheresuchincreasesarelessthantheprescribedincreasesin
the wage rates under this Act, the employer shall pay the difference. Such
increasesshallnotincludeanniversarywageincreases,meritwageincreases
andthoseresultingfromtheregularizationorpromotionofemployees.
WheretheapplicationoftheincreasesinthewagerateunderthisSection
results in distortions as defined under existing laws in the wage structure
withinanestablishmentandgivesrisetoadisputetherein,suchdisputeshall
first be settled voluntarily between the parties and in the event of a
deadlock,thesameshallbefinallyresolvedthroughcompulsoryarbitration
by the regional arbitration branch of the National Labor Relations
Commission(NLRC)havingjurisdictionovertheworkplace.
It shall be mandatory for the NLRC to conduct continuous hearings and
decideanydisputearisingunderthisSectionwithintwenty(20)calendardays
from the time said dispute is formally submitted to it for arbitration. The
pendency of a dispute arising from a wage distortion shall not in any way
delay the applicability of the increases in the wage rates prescribed under
thisSection.

Sec.5.Withinaperiodoffour(4)yearsfromtheeffectivityofthisActand
without prejudice to collective bargaining negotiations or agreements or
otheremploymentcontractsbetweenemployersandworkers,newbusiness
enterprisesthatmaybeestablishedoutsidetheNCRandexportprocessing
zones whose operation or investments need initial assistance as may be
determined by the Department of Labor and Employment in consultation
withtheDepartmentofTradeandIndustryortheDepartmentofAgriculture,
asthecasemaybeshallbeexemptfromtheapplicationofthisActfornot
morethanthree(3)yearsfromthestartoftheiroperations:Provided,That
such new business enterprises established in Region III (Central Luzon) and
Region IV (Southern Tagalog) shall be exempt from such increases only for
two(2)yearsfromthestartoftheiroperations,exceptthoseestablishedin
the Provinces of Palawan, Oriental Mindoro, Occidental Mindoro,
Marinduque, Romblon, Quezon and Aurora, which shall enjoy such
exemption for not more than three (3) years from the start of their
operations.
Sec.6.In thecase of contracts for construction projects and for security,
janitorialandsimilarservices,theprescribedincreasesinthewageratesof
the workers shall be borne by the principals or clients of the
construction/servicecontractorsandthecontractshallbedeemedamended
accordingly.Intheevent,however,thattheprincipalorclientfailstopaythe
prescribed wage rates, the construction/service contractor shall be jointly
andseverallyliablewithhisprincipalorclient.
Sec.7.Uponwrittenpetitionofthemajorityoftheemployeesorworkers
concerned, all private establishments, companies, businesses, and other
entitieswithtwentyfive(25)ormoreemployeesandlocatedwithinone(1)
kilometerradiustoacommercial,savingsorruralbankshallpaythewages
andotherbenefitsoftheiremployeesthroughanyofsaidbanksandwithin
the period for payment of wages fixed by Presidential Decree No. 442, as
amended,otherwiseknownastheLaborCodeofthePhilippines.
Sec. 8. Whenever applicable and upon request of a concerned worker or
union,thebankshallissueacertificationoftherecordofpaymentofwages
ofaparticularworkerorworkersforaparticularpayrollperiod.
Sec. 9. The Department of Labor and Employment shall conduct
inspectionsasoftenaspossiblewithinitsmanpowerconstraintofthepayroll

and other financial records kept by the company or business to determine


whethertheworkersarepaidtheprescribedwageratesandotherbenefits
grantedbylaworanyWageOrder.Inunionizedcompanies,theDepartment
of Labor and Employment inspectors shall always be accompanied by the
presidentoranyresponsibleofficeroftherecognizedbargainingunitofany
interested union in the conduct of the inspection. In nonunionized
companies,establishmentsorbusinesses,theinspectionshallbecarriedout
in the presence of a workerrepresentingthe workers in the saidcompany.
Theworkers'representativeshallhavetherighttosubmithisownfindingsto
the Department of Labor and Employment and to testify on the sameif he
cannotconcurwiththefindingsofthelaborinspector.
Sec.10.ThefundsnecessarytocarryouttheprovisionsofthisActshallbe
taken from the Compensation and Organizational Adjustment Fund, the
ContingentFund,andothersavingsunderRepublicActNo.6688,otherwise
known as the General Appropriations Act of 1989, or from any
unappropriated funds of the National Treasury: Provided, That the funding
requirementsnecessarytoimplementthisActshallbeincludedintheannual
GeneralAppropriationsActforthesucceedingyears.
Sec. 11. The National Wages Council created under Executive Order No.
614 and the National Productivity Commission created under Executive
Order No. 615 are hereby abolished. All properties, records, equipment,
buildings, facilities, and other assets, liabilities and appropriations of and
belongingto the abovementioned offices, as wellas other matters pending
therein, shall be transferred to the Commission. All personnel of the above
abolished offices shallcontinue to functionin a holdover capacity and shall
be preferentially considered for appointments to or placement in the
Commission.
Any official or employee separated from the service as a result of the
abolition of offices pursuant to this Act shall be entitled to appropriate
separation pay and retirement and other benefits accruing to them under
existing laws. In lieu thereof, at the option of the employee, he shall be
preferentiallyconsideredforemploymentinthegovernmentorinanyofits
subdivisions,instrumentalities,oragencies,includinggovernmentownedor
controlledcorporationsandtheirsubsidiaries.

Sec. 12. Any person, corporation, trust, firm, partnership, association or


entity which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be
punished by a fine not exceeding twentyfive thousand pesos (P25,000.00)
and/or imprisonment of not less than one (1) year nor more than two (2)
years: Provided, That any person convicted under this Act shall not be
entitledtothebenefitsprovidedforundertheProbationLaw.
If the violation is committed by a corporation, trust or firm, partnership,
association or any other entity, the penalty of imprisonment shall be
imposedupontheentity'sresponsibleofficers,including,butnotlimitedto,
the president, vice president, chief executive officer, general manager,
managingdirectororpartner.
Sec. 13. The Secretary of Labor and Employment shall promulgate the
necessaryrulesandregulationstoimplementtheprovisionsofthisAct.
Sec.14.Alllaws,orders,issuances,rulesandregulationsorpartsthereof
inconsistentwiththeprovisionsofthisActareherebyrepealed,amendedor
modifiedaccordingly.InanyprovisionorpartofthisAct,ortheapplication
thereoftoanypersonorcircumstance,isheldinvalidorunconstitutional,the
remainderofthisActortheapplicationofsuchprovisionorpartthereofto
otherpersonsorcircumstancesshallnotbeaffectedthereby.
Nothing in this Act shall be construed to reduce any existing wage rates,
allowancesandbenefitsofanyformunderexistinglaws,decrees,issuances,
executive orders, and/or under any contract or agreement between the
workersandemployers.
Sec. 15. This Act shall take effect fifteen (15) days after its complete
publicationintheOfficialGazetteorinatleasttwo(2)nationalnewspapers
ofgeneralcirculation,whichevercomesearlier.
WAGESTUDIES,WAGEAGREEMENTS
ANDWAGEDETERMINATION
ART.120.CreationofNationalWagesandProductivityCommission.Thereis
hereby created a National Wages and Productivity Commission, hereinafter
referredtoastheCommission,whichshallbeattachedtotheDepartmentof

Labor and Employment (DOLE) for policy and program coordination. (As
amendedbyRepublicActNo.6727,June9,1989).
ART. 121. Powers and functions of the Commission. The Commission shall
havethefollowingpowersandfunctions:
(a)ToactasthenationalconsultativeandadvisorybodytothePresidentof
the Philippines and Congress on matters relating to wages, incomes and
productivity;
(b)Toformulatepoliciesandguidelinesonwages,incomesandproductivity
improvementattheenterprise,industryandnationallevels;
(c) To prescribe rules and guidelines for the determination of appropriate
minimum wage and productivity measures at the regional, provincial, or
industrylevels;
(d)ToreviewregionalwagelevelssetbytheRegionalTripartiteWagesand
ProductivityBoardstodetermineiftheseareinaccordancewithprescribed
guidelinesandnationaldevelopmentplans;
(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
otherrelatedinformation,including,butnotlimitedto,employment,costof
living,laborcosts,investmentsandreturns;
(f) To review plans and programs of the Regional Tripartite Wages and
ProductivityBoardstodeterminewhethertheseareconsistentwithnational
developmentplans;
(g) To exercise technical and administrative supervision over the Regional
TripartiteWagesandProductivityBoards;chanroblesvirtuallawlibrary
(h) To call, from time to time, a national tripartite conference of
representativesofgovernment,workersandemployersfortheconsideration
ofmeasurestopromotewagerationalizationandproductivity;and
(i)Toexercisesuchpowersandfunctionsasmaybenecessarytoimplement
thisAct.

The Commission shall be composed of the Secretary of Labor and


Employment as exofficio chairman, the DirectorGeneral of the National
Economic and Development Authority (NEDA) as exofficio vicechairman,
andtwo(2)memberseachfromworkersandemployerssectorswhoshall
be appointed by the President of the Philippines upon recommendation of
theSecretaryofLaborandEmploymenttobemadeonthebasisofthelistof
nominees submitted by the workers and employers sectors, respectively,
andwhoshallserveforatermoffive(5)years.TheExecutiveDirectorofthe
CommissionshallalsobeamemberoftheCommission.
The Commission shall be assisted by a Secretariat to be headed by an
ExecutiveDirectorandtwo(2)DeputyDirectors,whoshallbeappointedby
thePresidentofthePhilippines,upontherecommendationoftheSecretary
ofLaborandEmployment.
The Executive Director shall have the same rank, salary, benefits and other
emoluments as that of a Department Assistant Secretary, while the Deputy
Directorsshallhavethesamerank,salary,benefitsandotheremolumentsas
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
representativesintheEmployeesCompensationCommission.(Asamended
byRepublicActNo.6727,June9,1989).
ART. 122. Creation of Regional Tripartite Wages and Productivity Boards.
There is hereby created Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall
determinetheoffices/headquartersoftherespectiveRegionalBoards.
The Regional Boards shall have the following powers and functions in their
respectiveterritorialjurisdictions:
(a)Todevelopplans,programsandprojectsrelativetowages,incomesand
productivityimprovementfortheirrespectiveregions;
(b) To determine and fix minimum wage rates applicable in their regions,
provincesorindustriesthereinandtoissuethecorrespondingwageorders,
subjecttoguidelinesissuedbytheCommission;

(c) To undertake studies, researches, and surveys necessary for the


attainment of their functions, objectives and programs, and to collect and
compiledataonwages,incomes,productivityandotherrelatedinformation
andperiodicallydisseminatethesame;
(d) To coordinate with the other Regional Boards as may be necessary to
attainthepolicyandintentionofthisCode;
(e)Toreceive,processandactonapplicationsforexemptionfromprescribed
wageratesasmaybeprovidedbylaworanyWageOrder;and
(f)Toexercisesuchotherpowersandfunctionsasmaybenecessarytocarry
outtheirmandateunderthisCode.
Implementationoftheplans,programs,andprojectsoftheRegionalBoards
referredtointhesecondparagraph,letter(a)ofthisArticle,shallbethrough
therespectiveregionalofficesoftheDepartmentofLaborandEmployment
within their territorial jurisdiction; Provided, however, That the Regional
Boards shall have technical supervision over the regional office of the
DepartmentofLaborandEmploymentwithrespecttotheimplementationof
saidplans,programsandprojects.
Each Regional Board shall be composed of the Regional Director of the
DepartmentofLaborandEmploymentaschairman,theRegionalDirectorsof
the National Economic and Development Authority and the Department of
Trade and Industry as vicechairmen and two (2) members each from
workersandemployerssectorswhoshallbeappointedbythePresidentof
the Philippines, upon the recommendation of the Secretary of Labor and
Employment,tobemadeonthebasisofthelistofnomineessubmittedby
theworkersandemployerssectors,respectively,andwhoshallservefora
termoffive(5)years.
Each Regional Board to be headed by its chairman shall be assisted by a
Secretariat.(AsamendedbyRepublicActNo.6727,June9,1989).
ART.123.WageOrder.Wheneverconditionsintheregionsowarrant,the
RegionalBoardshallinvestigateandstudy allpertinentfacts;andbasedon
the standards and criteria herein prescribed, shall proceed to determine
whether a Wage Order should be issued. Any such Wage Order shall take

effectafterfifteen(15)daysfromitscompletepublicationinatleastone(1)
newspaperofgeneralcirculationintheregion.
In the performance of its wagedetermining functions, the Regional Board
shallconductpublichearings/consultations,givingnoticestoemployeesand
employers groups, provincial, city and municipal officials and other
interestedparties.
Any party aggrieved by the Wage Order issued by the Regional Board may
appealsuchordertotheCommissionwithinten(10)calendardaysfromthe
publicationofsuchorder.ItshallbemandatoryfortheCommissiontodecide
suchappealwithinsixty(60)calendardaysfromthefilingthereof.
Thefilingoftheappealdoesnotstaytheorderunlessthepersonappealing
such order shall file with the Commission, an undertaking with a surety or
sureties satisfactory to the Commission for the payment to the employees
affectedbytheorderofthecorrespondingincrease,intheeventsuchorder
isaffirmed.(AsamendedbyRepublicActNo.6727,June9,1989).
ART. 124. Standards/Criteria for minimum wage fixing. The regional
minimum wages to be established by the Regional Board shall be as nearly
adequateasiseconomicallyfeasibletomaintaintheminimumstandardsof
living necessary for the health, efficiency and general wellbeing of the
employees within the framework of the national economic and social
development program. In the determination of such regional minimum
wages,theRegionalBoardshall,amongotherrelevantfactors,considerthe
following:

(a)Thedemandforlivingwages;
(b)Wageadjustmentvisvistheconsumerpriceindex;
(c)Thecostoflivingandchangesorincreasestherein;
(d)Theneedsofworkersandtheirfamilies;
(e)Theneedtoinduceindustriestoinvestinthecountryside;
(f)Improvementsinstandardsofliving;

(g)Theprevailingwagelevels;
(h)Fairreturnofthecapitalinvestedandcapacitytopayofemployers;
(i)Effectsonemploymentgenerationandfamilyincome;and
(j)Theequitabledistributionofincomeandwealthalongtheimperativesof
economicandsocialdevelopment.

ThewagesprescribedinaccordancewiththeprovisionsofthisTitleshallbe
the standard prevailing minimum wages in every region. These wages shall
include wages varying with industries, provinces or localities if in the
judgment of the Regional Board, conditions make such local differentiation
properandnecessarytoeffectuatethepurposeofthisTitle.
Anyperson,company,corporation,partnershiporanyotherentityengaged
in business shall file and register annually with the appropriate Regional
Board, Commission and the National Statistics Office, an itemized listing of
theirlaborcomponent,specifyingthenamesoftheirworkersandemployees
below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed
intheemploymentcontracts,andtheircorrespondingsalariesandwages.
Wheretheapplicationofanyprescribedwageincreasebyvirtueofalawor
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
voluntaryarbitration.Unlessotherwiseagreedbythepartiesinwriting,such
disputeshallbedecidedbythevoluntaryarbitratorswithinten(10)calendar
daysfromthetimesaiddisputewasreferredtovoluntaryarbitration.
In cases where there are no collective agreements or recognized labor
unions, the employers and workers shall endeavor to correct such
distortions. Any dispute arising therefrom shall be settled through the
NationalConciliationandMediationBoardand,ifitremainsunresolvedafter
ten (10) calendar days of conciliation, shall be referred to the appropriate

branch of the National Labor Relations Commission (NLRC). It shall be


mandatory for the NLRC to conduct continuous hearings and decide the
dispute within twenty (20) calendar days from the time said dispute is
submittedforcompulsoryarbitration.
Thependencyofadisputearisingfromawagedistortionshallnotinanyway
delay theapplicability ofany increase in prescribedwage rates pursuant to
theprovisionsoflaworwageorder.
Asusedherein,awagedistortionshallmeanasituationwhereanincreasein
prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and
amongemployeegroupsinanestablishmentastoeffectivelyobliteratethe
distinctions embodied in such wage structure based on skills, length of
service,orotherlogicalbasesofdifferentiation.
Allworkerspaidbyresult,includingthosewhoarepaidonpiecework,takay,
pakyaw or task basis, shall receive not less than the prescribed wage rates
per eight (8) hours of work a day, or a proportion thereof for working less
thaneight(8)hours.
All recognized learnership and apprenticeship agreements shall be
considered automatically modified insofar as their wage clauses are
concernedtoreflecttheprescribedwagerates.(AsamendedbyRepublicAct
No.6727,June9,1989).
ART.125.Freedomtobargain.Nowageordershallbeconstruedtoprevent
workers in particular firms or enterprises or industries from bargaining for
higherwageswiththeirrespectiveemployers.(AsamendedbyRepublicAct
No.6727,June9,1989).
ART. 126. Prohibition against injunction. No preliminary or permanent
injunction or temporary restraining order may be issued by any court,
tribunal or other entity against any proceedings before the Commission or
theRegionalBoards.(AsamendedbyRepublicActNo.6727,June9,1989).
ART.127.Nondiminutionofbenefits.Nowageorderissuedbyanyregional
boardshallprovideforwagerateslowerthanthestatutoryminimumwage
ratesprescribedbyCongress.(AsamendedbyRepublicActNo.6727,June9,
1989).

RULE
WageStudiesandDetermination

IX

SECTION1.Definitionofterms.(a)"Industry"shallmeananyidentifiable
groupofproductiveunitsorenterprises,whetheroperatedforprofitornot,
engaged in similar or allied economic activities in which individuals are
gainfullyemployed.
(b)A"branch"ofanindustryisawork,productorservicegroupingthereof
whichcanbeconsideredadistinctdivisionforwagefixingpurposes.
(c) "Substantial number" shall mean such an appreciable number of
employees in an industry as, in the Commission's opinion, considering all
relevantfacts, may require action under Art. 121 ofthe Code to effectuate
the purposes of wage determination, regardless of the proportion of such
employeestothetotalnumberofemployeesintheindustry.
SECTION 2. Wage studies. The National Wages Council shall conduct a
continuing study of wage rates and other economic conditions in all
industries,agriculturalandnonagricultural.Theresultsofsuchstudyshallbe
periodicallydisseminatedtothegovernment,laborandmanagementsectors
fortheirinformationandguidance.
SECTION3.Wagesrecommendation.Ifaftersuchstudy,theCommissionis
oftheopinionthatasubstantialnumberofemployeesinanygivenindustry
or branch thereof are receiving wages, which although complying with the
minimum provided by law, are less than sufficient to maintain them in
health,efficiencyandgeneralwellbeing,takingintoaccount,amongothers,
thepeculiarcircumstancesoftheindustryanditsgeographicallocation,the
Commission shall, with the approval of the Secretary of Labor and
Employment, proceed to determine whether a wage recommendation
shouldbeissued.
SECTION 4. Criteria for wage fixing. (a) In addition to the criteria
established by Art. 123 of the Code for minimum wage fixing, the
Commissionshallconsider,amongotherfactors,socialservicesandbenefits
given free to workers and the possible effect of a given increase in the
minimum wage on prices, money supply, employment, labor mobility and

productivity, labor organization efficacy, domestic and foreign trade, and


otherrelevantindicatorsofsocialandeconomicdevelopment.
(b)Whereafairreturntocapitalinvestedcannotbereasonablydetermined,
or where the industry concerned is not operated for profit, its capacity to
pay,takingintoaccountallresourcesavailabletoit,shallbeconsidered.
SECTION5.Quorum.Three(3)membersoftheCommission,includingits
Chairman,shallconstituteaquorumtotransacttheCommission'sbusiness.
SECTION6.Commissionactions,numberofvotesrequired.Thevotesofat
leastthree(3)membersoftheCommissionshallbenecessarytoeffectany
decisionorrecommendationitisauthorizedtoissueundertheCodeandthis
rule:Provided,Thatintheinternalregulationanddirectionofthefunctions
ofthe Commission's staff including the conductof administrative processes
and the maintenance of proper liaison and coordination with other
organizations,theChairmanshallnotneedtheconsentoftheCommissionor
anymemberthereof.
SECTION 7. Outside assistance. The Commission may call upon the
assistance and cooperation of any government agency or official, and may
inviteanyprivatepersonororganizationtofurnishinformationinconnection
withindustrystudiesandwagefixinghearingsorinaidoftheCommission's
deliberations.
SECTION 8. Schedule of hearings and notices. The Commission shall
prepare a schedule of hearings for the reception of evidence necessary for
wagefixinginanindustry,includingalistofwitnessesthatitwillinviteand
thedate,timeandplaceofthehearings.Anoticethereoftoallsectorsofthe
industry shall be given in the most expeditious manner. It may have prior
consultations with labor and management leaders in the industry for the
abovepurpose.
SECTION9.Unsolicitedtestimony.Personswhooffertotestifybeforethe
CommissionshallbeheardonlyaftertheCommissionissatisfied,uponbrief
preliminaryexamination,thattheyareinpossessionoffactsrelevanttothe
subject of inquiry. The Chairman, or in other cases, the person conducting
the hearing, shall revise the schedule of hearings whenever necessary to
achievelogicalsequenceoftestimony.

SECTION 10. Compulsory processes. Recourse to compulsory processes


under the Revised Administrative Code to ensure the attendance of
witnessesand/ortheproductionofrelevantdocumentaryevidenceshallbe
used only on occasions of extreme importance and after other means shall
have failed, subject to the approval of the Secretary of Labor and
Employment.
SECTION11.Hearings;where,bywhomconducted.Commissionhearings
maybeconductedbytheCommissionenbanc,or,whenauthorizedbythe
Commission,byanymemberorhearingofficerdesignatedbytheChairman.
The hearings may be held wherever the industry or branches thereof are
situated; otherwise they shall be held in the Greater Manila Area. The
hearingsshallbeopentothepublic.
SECTION 12. Hearings before single member or hearing officer. Hearings
conducted by a duly authorized member or hearing officer shall be
consideredashearingsbeforetheCommission.Therecordsofsuchhearings
shall be submitted to the Commission as soon as they are completed,
indicating the time and place of the hearings and the appearances thereat,
togetherwithabriefstatementofthefindingsandrecommendationsofthe
memberorhearingofficerconcerned.
SECTION13.Testimonyunderoath.Thetestimonyofallwitnessesshallbe
madeunderoathoraffirmationandshallbetakendownandtranscribedby
adulyappointedstenographicreporter.
SECTION 14. Nonapplicability of technical rules. The technical rules of
evidence applied by the courts in proceedings at law or equity shall not
strictlyapplyinanyproceedingsconductedbeforetheCommission.
SECTION15.Stipulationoffact.Stipulationsoffactmaybeadmittedwith
respecttoanymatteratissueintheproceedings.
SECTION 16. Documentary evidence. Written evidence submitted to the
Commission or any member or hearing officer shall be properly marked to
facilitateidentification.
SECTION17.Submissionofindustryreport.Withinsixty(60)workingdays
from the date of the first hearing, the Commission shall submit to the
SecretaryofLaborandEmploymentan"IndustryReport"whichshallrelate

inbrieftheoperationsthatledthereto,thebasicfindingsofeconomicfacts
abouttheindustryandtherecommendationsmadeonthebasisthereof.
SECTION 18. Action by the Secretary of Labor and Employment. Within
thirty (30) working days after the submission of the "Industry Report," the
Secretary of Labor and Employment shall either reject or approve the
recommendationoftheCommissioninaccordancewithArt.122oftheCode.
If he approves the recommendation, he shall issue a Wage Order adopting
the same, subject to the approval of the President of the Philippines,
prescribingtheminimumwageorwagesfortheindustryconcerned.
SECTION 19. Wage Order. The Wage Order shall specify the industry or
branch to which the minimum wages prescribed therein shall apply;
Provided, That no definite rates shall be prescribed for specific job titles in
theindustry.
SECTION20.Varyingminimumwages.Tojustifydifferentminimumwages
for different localities, the economic and other conditions found in a
particular locality must not only be more or less uniform therein but also
differentfromthoseprevailinginotherlocalities.
SECTION 21. Publication of Wage Order. Only such portions of a Wage
Order shall be published as shall effectively give notice to all interested
parties that such an Order has been issued, the industry affected, the
minimumwagesprescribedandthedateofitseffectivity.
SECTION22.Effectivity.AWageOrdershallbecomeeffectiveafterfifteen
(15)daysfromitspublicationasprovidedinArticle124oftheCode.
SECTION23.InternalrulesoftheCommission.Subjecttotheapprovalof
the Secretary of Labor and Employment, the National Wages Council may
issuerulesandregulationsgoverningitsinternalprocedure.

a.

RationaleforWageRationalization,RA6727,Sec.2

Sec.2.ItisherebydeclaredthepolicyoftheStatetorationalizethefixingof
minimumwagesandtopromoteproductivityimprovementandgainsharing
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
industrydispersal;andtoallowbusinessandindustryreasonablereturnson
investment,expansionandgrowth.
TheStateshallpromotecollectivebargainingastheprimarymodeofsetting
wages and other terms and conditions of employment; and, whenever
necessary,theminimumwageratesshallbeadjustedinafairandequitable
manner, considering existing regional disparities in the cost of living and
other socioeconomic factors and the national economic and social
developmentplans.
b.
AgenciesinWageFixingMachinery

1) National Wages and Productivity Commission, RA 6727, Sec. 3; Arts.


120,121,126

2) RegionalTripartiteWagesandProductivityBoard,RA6727,Sec.3;Arts.
122,126

NasipitLumberCo.v.NLRC,289SCRA667(1998)

c.
Standards/Criteria for Minimum Wage Fixing, RA 6727, Sec. 3; Art.
124

d.
WageOrder,Arts.123,124

1)MethodsofFixing

a) FloorWagemethod

b)SalaryCeilingMethod

EmployersConfederationofthePhil.V.NationalWageandProductivity
Commission,201SCRA759(1991)

2)Validity

(1998)

Cagayan Sugar Milling Co. v. Secretary, DOLE, 284 SCRA 150

3)WageDistortion

Prubankers Association v. Prudential Bank & Trust Co., 302


SCRA74(1999)

a.

3.

WagePaymentandProtection

FormofPayment,Art.202;CivilCode,Art.1705;RuleVIII,Secs.1,2

ART.202.Erroneouspayment.(a)IftheSystemingoodfaithpaysincome
benefittoadependentwhoisinferiorinrighttoanotherdependentorwith
whomanotherdependentisentitledtoshare,suchpaymentsshalldischarge
theSystemfromliability,unlessanduntilsuchotherdependentnotifiesthe
Systemofhisclaimpriortothepayments.
(b)Incaseofdoubtastotherespectiverightsofrivalclaimants,theSystem
isherebyempoweredtodetermineastowhompaymentsshouldbemadein
accordance with such regulations as the Commission may approve. If the
moneyispayabletoaminororincompetent,paymentshallbemadebythe
Systemtosuchpersonorpersonsasitmayconsidertobebestqualifiedto
take care and dispose of the minors or incompetents property for his
benefit.
NCCArt.1705.Thelaborer'swagesshallbepaidinlegalcurrency.
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
prohibitedevenwhenexpresslyrequestedbytheemployee.
SECTION2.Paymentbycheck.Paymentofwagesbybankchecks,postal
checksormoneyordersisallowedwheresuchmannerofwagepaymentis

customaryonthedateoftheeffectivityoftheCode,whereitissostipulated
inacollectiveagreement,orwhereallofthefollowingconditionsaremet:
(a)Thereisabankorotherfacilityforencashmentwithinaradiusofone(1)
kilometerfromtheworkplace;
(b)Theemployeroranyofhisagentsorrepresentativesdoesnotreceiveany
pecuniarybenefitdirectlyorindirectlyfromthearrangement;
(c) The employees are given reasonable time during banking hours to
withdraw their wages from the bank which time shall be considered as
compensablehoursworkedifdoneduringworkinghours;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
wagesbybankchecks.

Congsonv.NLRC,243SCRA260(1995)

b.

TimeofPayment,Art.103,Sec.3

ART.103.Timeofpayment.Wagesshallbepaidatleastonceeverytwo(2)
weeks or twice a month at intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances beyond the employers 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
frequencythanonceamonth.
The payment of wages of employees engaged to perform a task which
cannot be completed in two (2) weeks shall be subject to the following
conditions,intheabsenceofacollectivebargainingagreementorarbitration
award:
(1)Thatpaymentsaremadeatintervalsnotexceedingsixteen(16)days,in
proportiontotheamountofworkcompleted;
(2)Thatfinalsettlementismadeuponcompletionofthework.
SECTION3.Timeofpayment.(a)Wagesshallbepaidnotlessthanonce
everytwo(2)weeksortwiceamonthatintervalsnotexceedingsixteen(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
circumstanceshaveceased.
(b) In case of payment of wages by results involving work which cannot be
finishedintwo(2)weeks,paymentshallbemadeatintervalsnotexceeding

sixteen days in proportion to the amount of work completed. Final


settlementshallbemadeimmediatelyuponcompletionofthework.
c.

PlaceofPayment,Art.104,Sec.4

SECTION4.Placeofpayment.Asageneralrule,theplaceofpaymentshall
be at or near the place of undertaking. Payment in a place other than the
workplaceshallbepermissibleonlyunderthefollowingcircumstances:
(a)Whenpaymentcannotbeeffectedatorneartheplaceofworkbyreason
ofthedeteriorationofpeaceandorderconditions,orbyreasonofactualor
impending emergencies caused by fire, flood, epidemic or other calamity
renderingpaymentthereatimpossible;
(b)Whentheemployerprovidesfreetransportationtotheemployeesback
andforth;and
(c)Underanyotheranalogouscircumstances;Provided,Thatthetimespent
by the employees in collecting their wages shall be considered as
compensablehoursworked;
(d) No employer shall pay his employees in any bar, night or day club,
drinkingestablishment,massageclinic,dancehall,orothersimilarplacesor
in places where games are played with stakes of money or things
representingmoneyexceptinthecaseofpersonsemployedinsaidplaces.
LCART.104.Placeofpayment.Paymentofwagesshallbemadeatornear
the place of undertaking, except as otherwise provided by such regulations
astheSecretaryofLaborandEmploymentmayprescribeunderconditionsto
ensuregreaterprotectionofwages.
See:LaborAdvisoryonPaymentofSalariesThruAutomatedTellerMachines
(ATM)

d. PersontoPay,Art.105,Secs.5,6

SECTION 5. Direct payment of wages. Payment of wages shall be made


directtotheemployeeentitledtheretoexceptinthefollowingcases:
(a)Wheretheemployerisauthorizedinwritingbytheemployeetopayhis
wagestoamemberofhisfamily;
(b)Wherepaymenttoanotherpersonofanypartoftheemployee'swagesis
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
authorizedinwritingbytheindividualemployeesconcerned;or
(c)IncaseofdeathoftheemployeeasprovidedinthesucceedingSection.
SECTION6.Wagesofdeceasedemployee.Thepaymentofthewagesofa
deceased employee shall be made to his heirs without the necessity of
intestate proceedings. When the heirs are of age, they shall execute an
affidavitattestingtotheirrelationshiptothedeceasedandthefactthatthey
arehisheirstotheexclusionofallotherpersons.Incaseanyoftheheirsisa
minor,suchaffidavitshallbeexecutedinhisbehalfbyhisnaturalguardianor
nextofkin.Uponpresentationoftheaffidavittotheemployer,heshallmake
payment to the heirs as representative of the Secretary of Labor and
Employment.
ART. 105. Direct payment of wages. Wages shall be paid directly to the
workerstowhomtheyaredue,except:
(a) In cases of force majeure rendering such payment impossible or under
otherspecialcircumstancestobedeterminedbytheSecretaryofLaborand
Employment in appropriate regulations, in which case, the worker may be
paidthroughanotherpersonunderwrittenauthoritygivenbytheworkerfor
thepurpose;or
(b) Where the worker has died, in which case, the employer may pay the
wagesofthedeceasedworkertotheheirsofthelatterwithoutthenecessity
ofintestateproceedings.Theclaimants,iftheyareallofage,shallexecutean
affidavitattestingtotheirrelationshiptothedeceasedandthefactthatthey
are his heirs, to the exclusion of all other persons. If any of the heirs is a
minor,theaffidavitshallbeexecutedonhisbehalfbyhisnaturalguardianor
nextofkin.Theaffidavitshallbepresentedtotheemployerwhoshallmake

payment through the Secretary of Labor and Employment or his


representative. The representative of the Secretary of Labor and
Employmentshallactasrefereeindividingtheamountpaidamongtheheirs.
The payment of wages under this Article shall absolve the employer of any
furtherliabilitywithrespecttotheamountpaid.

a.

Bermisov.Escano,Inc.,105Phil.231(1959)

4.

WageProhibitions

WageInterferenceinDisposalofWages,Art.112;RuleVIII,Sec.9

a. WageInterferenceinDisposalofWages,Art.112;RuleVIII,Sec.9

ART.112.Noninterferenceindisposalofwages.Noemployershalllimitor
otherwise interfere with the freedom of any employee to dispose of his
wages.Heshallnotinanymannerforce,compel,orobligehisemployeesto
purchase merchandise, commodities or other property from any other
person,orotherwisemakeuseofanystoreorservicesofsuchemployeror
anyotherperson.

SECTION 9. Laboronly contracting. (a) Any person who undertakes to


supplyworkerstoanemployershallbedeemedtobeengagedinlaboronly
contractingwheresuchperson:

(1) Does not have substantial capital or investment in the form of tools,
equipment,machineries,workpremisesandothermaterials;and
(2)Theworkersrecruitedandplacedbysuchpersonareperformingactivities
which are directly related to the principal business or operations of the
employerinwhichworkersarehabituallyemployed.
(b) Laboronly contracting as defined herein is hereby prohibited and the
person acting as contractor shall be considered merely as an agent or
intermediaryoftheemployerwhoshallberesponsibletotheworkersinthe
samemannerandextentasifthelatterweredirectlyemployedbyhim.
(c) For cases not falling under this Rule, the Secretary of Labor and
Employmentshalldeterminethroughappropriateorderswhetherornotthe
contracting out of labor is permissible in the light of the circumstances of
eachcaseandafterconsideringtheoperatingneedsoftheemployerandthe
rightsoftheworkersinvolved.Insuchcase,hemayprescribeconditionsand
restrictionstoinsuretheprotectionandwelfareoftheworkers.
b. WageDeduction,Art.113;RuleVIII,Sec.10

ART.113.Wagededuction.Noemployer,inhisownbehalforinbehalfof
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
himaspremiumontheinsurance;
(b) For union dues, in cases where the right of the worker or his union to
checkoff has been recognized by the employer or authorized in writing by
theindividualworkerconcerned;and
(c)Incaseswheretheemployerisauthorizedbylaworregulationsissuedby
theSecretaryofLaborandEmployment.
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

shallbepaidinfullbeforeothercreditorsmayestablishanyclaimtoashare
intheassetsoftheemployer.

Apodacav.NLRC,172SCRA442(1989)

c. RequirementtomakeDepositsforLossorDamage,Art.Arts.114,115;
RuleVIII,Sec.11

ART. 114. Deposits for loss or damage. No employer shall require his
worker to make deposits from which deductions shall be made for the
reimbursement of loss of or damage to tools, materials, or equipment
supplied by the employer, except when the employer is engaged in such
trades,occupationsorbusinesswherethepracticeofmakingdeductionsor
requiring deposits is a recognized one, or is necessary or desirable as
determinedbytheSecretaryofLaborandEmploymentinappropriaterules
andregulations.
ART.115.Limitations.Nodeductionfromthedepositsofanemployeefor
theactualamountofthelossordamageshallbemadeunlesstheemployee
hasbeenheardthereon,andhis
SECTION 11. Attorney's fees. Attorney's fees in any judicial or
administrative proceedings for the recovery of wages shall not exceed 10
percentoftheamountawarded.Thefeesmaybedeductedfromthetotal
amountduethewinningpartyresponsibilityhasbeenclearlyshown.

DentechManufacturingCorp.NLRC,172SCRA588

FiveJTaxiv.NLRC,235SCRA556(1994)

(1989)

e.

WithholdingofWages,Art.116;CivilCode,Art.1706

ART. 116. Withholding of wages and kickbacks prohibited. It shall be


unlawfulforanyperson,directlyorindirectly,towithholdanyamountfrom
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
withouttheworkersconsent.
NCCArt.1706.Withholdingofthewages,exceptforadebtdue,shallnot
bemadebytheemployer.
f.

DeductiontoEnsureEmployment,Art.117

ART.117.Deductiontoensureemployment.Itshallbeunlawfultomakeany
deductionfromthewagesofanyemployeeforthebenefitoftheemployer

or his representative or intermediary as consideration of a promise of


employmentorretentioninemployment.
g.
RetaliatoryMeasures,Art.118

ART. 118. Retaliatory measures. It shall be unlawful for an employer to


refusetopayorreducethewagesandbenefits,dischargeorinanymanner
discriminateagainstanyemployeewhohasfiledanycomplaintorinstituted
anyproceedingunderthisTitleorhastestifiedorisabouttotestifyinsuch
proceedings.

h.
FalseReporting,Art.119;RuleX,Sec.13

ART.119.Falsereporting.Itshallbeunlawfulforanypersontomakeany
statement,report,orrecordfiledorkeptpursuanttotheprovisionsofthis
Code knowing such statement, report or record to be false in any material
respect.
SECTION13.Falsereporting.Itshallbeunlawfulforanyemployerorany
persontomakeanyfalsestatement,reportorrecordonmattersrequiredto
bekeptormaintainedpursuanttotheprovisionsofthisRule.
i.

KeepingofEmployeesRecordsinaPlaceotherthantheWorkplace
SouthMotoristsEnterprisesv.Tosoc,181SCRA386(1990)

j.

Garnishment/Execution,CivilCode,Art.1708

NCC Art. 1708. The laborer's wages shall not be subject to execution or
attachment,exceptfordebtsincurredforfood,shelter,clothingandmedical
attendance.

GAAv.CourtofAppeals,140SCRA304(1985)

SpecialSteelCorp.v.Villareal,434SCRA19(2004)

5. WorkPreferenceintheEventofBankruptcy,Art.110;BookIII,RuleVIII,
Sec.7;civilCode,Arts.1207,2241(6),2242(3),2244(2)

LC ART. 110. Worker preference in case of bankruptcy. In the event of


bankruptcyorliquidationofanemployersbusiness,hisworkersshallenjoy
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,March21,1989).
IRRSECTION7.Civilliabilityofemployerandcontractors.Everyemployer
orindirectemployershallbejointlyandseverallyliablewithhiscontractoror
subcontractor for the unpaid wages of the employees of the latter. Such
employerorindirectemployermayrequirethecontractororsubcontractor
tofurnishabondequaltothecostoflaborundercontractonconditionthat

thebondwillanswerforthewagesduetheemployeesshouldthecontractor
orsubcontractor,asthecasemaybe,failtopaythesame.
NCC Art. 2241. With reference to specific movable property of the debtor,
thefollowingclaimsorliensshallbepreferred:
(6)Claimsforlaborers'wages,onthegoodsmanufacturedorthework
done;xxx
Art. 2242. With reference to specificimmovableproperty and realrights of
thedebtor,thefollowingclaims,mortgagesandliensshallbepreferred,and
shallconstituteanencumbranceontheimmovableorrealright:
(3)Claimsoflaborers,masons,mechanicsandotherworkmen,aswellasof
architects, engineers and contractors, engaged in the construction,
reconstruction or repair of buildings, canals or other works, upon said
buildings,canalsorotherworks;xxx
Art.2244.Withreferencetootherproperty,realandpersonal,ofthedebtor,
thefollowingclaimsorcreditsshallbepreferredintheordernamed:
(2) Credits for services rendered the insolvent by employees, laborers, or
household helpers for one year preceding the commencement of the
proceedingsininsolvency;xxx
Art. 1207. The concurrence of two or more creditors or of two or more
debtorsinoneandthesameobligationdoesnotimplythateachoneofthe
former has a right to demand, or that each one of the latter is bound to
render,entirecompliancewiththeprestation.Thereisasolidaryliabilityonly
whentheobligationexpresslysostates,orwhenthelaworthenatureofthe
obligationrequiressolidarity.(1137a)

Republicv.Peralta,150SCRA37(1987)

ManilaBankingCorp.v.NLRC,279SCRA602,621642(1997)

6. Wage Recovery/Jurisdiction, arts. 128, 129, 217, 111; Book III, Rule X,
Secs.15

ART.128.Visitorialandenforcementpower.(a)TheSecretaryofLaborand
Employment or his duly authorized representatives, including labor
regulationofficers,shallhaveaccesstoemployersrecordsandpremisesat
anytimeofthedayornightwheneverworkisbeingundertakentherein,and
the right to copy therefrom, to question any employee and investigate any

fact,conditionormatterwhichmaybenecessarytodetermineviolationsor
which may aidin the enforcement of thisCodeand of anylaborlaw, wage
orderorrulesandregulationsissuedpursuantthereto.
(b)NotwithstandingtheprovisionsofArticles129and217ofthisCodetothe
contrary, 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 issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the findings of labor employment and enforcement
officersorindustrialsafetyengineersmadeinthecourseofinspection.The
Secretaryorhisdulyauthorizedrepresentativesshallissuewritsofexecution
to the appropriate authority for the enforcement of their orders, except in
caseswheretheemployerconteststhefindingsofthelaboremploymentand
enforcement officer and raises issues supported by documentary proofs
which were not considered in the course of inspection. (As amended by
RepublicActNo.7730,June2,1994).
An order issued by the duly authorized representative of the Secretary of
Labor and Employment under this Article may be appealed to the latter. In
casesaidorderinvolvesamonetaryaward,anappealbytheemployermay
be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Secretary of Labor and
Employment in the amount equivalent to the monetary award in the order
appealedfrom.(AsamendedbyRepublicActNo.7730,June2,1994).
(c)TheSecretaryofLaborandEmploymentmaylikewiseorderstoppageof
work or suspension of operations of any unit or department of an
establishmentwhennoncompliancewiththelaworimplementingrulesand
regulations poses grave and imminent danger to the health and safety of
workers in the workplace. Within twentyfour 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
concernedtheirsalariesorwagesduringtheperiodofsuchstoppageofwork
orsuspensionofoperation.
(d)Itshallbeunlawfulforanypersonorentitytoobstruct,impede,delayor
otherwise render ineffective the orders of the Secretary of Labor and

Employment or his duly authorized representatives issued pursuant to the


authoritygrantedunderthisArticle,andnoinferiorcourtorentityshallissue
temporaryorpermanentinjunctionorrestrainingorderorotherwiseassume
jurisdiction over any case involving the enforcement orders issued in
accordancewiththisArticle.
(e) Any government employee found guilty of violation of, or abuse of
authority, under this Article shall, after appropriate administrative
investigation,besubjecttosummarydismissalfromtheservice.
(f)TheSecretaryofLaborandEmploymentmay,byappropriateregulations,
requireemployerstokeepandmaintainsuchemploymentrecordsasmaybe
necessaryinaidofhisvisitorialandenforcementpowersunderthisCode.
ART.129.Recoveryofwages,simplemoneyclaimsandotherbenefits.Upon
complaintofanyinterestedparty,theRegionalDirectoroftheDepartment
of Labor and Employment or any of the duly authorized hearing officers of
theDepartmentisempowered,throughsummaryproceedingandafterdue
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 employeremployee relations:
Provided, That such complaint does not include a claim for reinstatement:
Provided further, That the aggregate money claims of each employee or
househelperdoesnotexceedFivethousandpesos(P5,000.00).TheRegional
Directororhearingofficershalldecideorresolvethecomplaintwithinthirty
(30) calendar days from the date of the filing of the same. Any sum thus
recoveredonbehalfofanyemployeeorhousehelperpursuanttothisArticle
shallbeheldinaspecialdepositaccountby,andshallbepaidonorderof,
theSecretaryofLaborandEmploymentortheRegionalDirectordirectlyto
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 within a period of three (3) years, shall be
held as a special fund of the Department of Labor and Employment to be
usedexclusivelyfortheameliorationandbenefitofworkers.
Any decision or resolution of the Regional Director or hearing officer
pursuanttothisprovisionmaybeappealedonthesamegroundsprovidedin
Article223ofthisCode,withinfive(5)calendardaysfromreceiptofacopy

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.chan
roblesvirtuallawlibrary
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,
RepublicActNo.6715,March21,1989).
ART.217.JurisdictionoftheLaborArbitersandtheCommission.(a)Except
asotherwiseprovidedunderthisCode,theLaborArbitersshallhaveoriginal
andexclusivejurisdictiontohearanddecide,withinthirty(30)calendardays
after the submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the following cases
involvingallworkers,whetheragriculturalornonagricultural:
1.Unfairlaborpracticecases;
2.Terminationdisputes;
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
conditionsofemployment;
4. Claims for actual, moral, exemplary and other forms of damages arising
fromtheemployeremployeerelations;
5. Cases arising from any violation of Article 264 of this Code, including
questionsinvolvingthelegalityofstrikesandlockouts;and
6.ExceptclaimsforEmployeesCompensation,SocialSecurity,Medicareand
maternity benefits, all other claims arising from employeremployee
relations, including those of persons in domestic or household service,
involvinganamountexceedingfivethousandpesos(P5,000.00)regardlessof
whetheraccompaniedwithaclaimforreinstatement.

(b)TheCommissionshallhaveexclusiveappellatejurisdictionoverallcases
decidedbyLaborArbiters.
(c) Cases arising from the interpretation or implementation of collective
bargaining agreements and those arising from the interpretation or
enforcementofcompanypersonnelpoliciesshallbedisposedofbytheLabor
Arbiter by referring the same to the grievance machinery and voluntary
arbitrationasmaybeprovidedinsaidagreements.(AsamendedbySection
9,RepublicActNo.6715,March21,1989).

ART.111.Attorneysfees.(a)Incasesofunlawfulwithholdingofwages,the
culpablepartymaybeassessedattorneysfeesequivalenttotenpercentof
theamountofwagesrecovered.

SECTION 1. Visitorial power. The Secretary of Labor and Employment or


his duly authorized representatives, including Labor Regulations Officers or
Industrial Safety Engineers, shall have access to employer's records and
premisesatanytimeofthedayornightwheneverworkisbeingundertaken
therein, and right to copy therefrom, to question any employee, and to
investigateanyfact,conditionormatterrelevanttotheenforcementofany
provision of the Code and of any labor law, wage order or rules and
regulationsissuedpursuantthereto.
SECTION2.Enforcementpower.(a)TheRegionalDirectorincaseswhere
employerrelationsshallexist,shallhavethepowertoorderandadminister,
afterduenoticeandhearing,compliancewiththelaborstandardsprovisions
of the Code and other labor legislations based on the findings of the Labor
Regulation Officers or Industrial Safety Engineers (Labor Standard and
WelfareOfficer)andmadeinthecourseofinspection,andtoissuewritsof
execution to the appropriate authority of the enforcement of his order. In
linewiththeprovisionsofArticle128inrelationtoArticles289and290of
theLaborCodeasamendedincases,however,wheretheemployercontests
the findings of the Labor Standards and Welfare Officers and raises issues
which cannot be resolved without considering evidentiary matters that are
not verifiable in the normal course of inspection, the Regional Director

concernedshallindorsethecasetotheappropriatearbitrationbranchofthe
NationalLaborRelationsCommissionforadjudication.
(b) The Regional Director shall give the employer fifteen (15) days within
which to comply with his order before issuing a writ of execution. Copy of
suchorderorwritofexecutionshallimmediatelybefurnishedtheSecretary
ofLaborandEmployment.
SECTION3.Enforcementpoweronhealthandsafetyofworkers.(a)The
Regional Director may likewise order stoppage of work or suspension of
operations of any unit or department of an establishment when non
compliancewiththelaw,safetyorderorimplementingrulesandregulations
posesgraveandimminentdangertothehealthandsafetyofworkersinthe
workplace.
(b)Within24hoursfromissuanceoftheorderofstoppageorsuspension,a
hearingshallbeconductedtodeterminewhethertheorderforthestoppage
of work or suspension of operation shall be lifted or not. The proceedings
shallbeterminatedwithinseventytwo(72)hoursandacopyofsuchorder
or resolution shall be immediately furnished the Secretary of Labor and
Employment.Incasetheviolationisattributabletothefaultoftheemployer,
he shall pay the employees concerned their salaries or wages during the
periodofsuchstoppageofworkorsuspensionofoperation.
SECTION4.Powertoreview.(a)TheSecretaryofLaborandEmployment,
athisowninitiativeoruponrequestoftheemployerand/oremployee,may
reviewtheorderoftheRegionalDirector.TheorderoftheRegionalDirector
shall be immediately final and executory unless stayed by the Secretary of
LaborandEmploymentuponpostingbytheemployerofareasonablecash
orsuretybondasfixedbytheRegionalDirector.
(b)Inaidofhispowerofreview,theSecretaryofLaborandEmploymentmay
directtheBureauofWorkingConditionstoevaluatethefindingsorordersof
the Regional Director. The decision of the Secretary of Labor and
Employmentshallbefinalandexecutory.
SECTION5.Interferenceandinjunctionsprohibited.Itshallbeunlawfulfor
any person or entity to obstruct, impede, delay or otherwise render
ineffectivetheexerciseoftheenforcementpoweroftheSecretaryofLabor

andEmployment,RegionalDirectorortheirdulyauthorizedrepresentatives
pursuant to the authority granted by the Code and its implementing rules
and regulations, 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
the Code. In addition to the penalties provided for by the Labor Code, any
governmentemployeesfoundguiltyofviolationorabuseofauthority,shall
besubjecttotheprovisionsofPresidentialDecreeNo.6.

CirineoBowlingPlazav.GerrySensing,supra

SanMiguelCorporationv.CourtofAppeals,supra
Guicov.Sec.ofLabor,298SCRA667(1998)

H.

ThirteenthMonthPay
1.

HistoryoftheLaw

DentechMfg.Corp.v.NLRC,supra
2.

Coverage

ArchillesManufacturingCorp.v,NLRC,244SCRA750(1995)

UltraVillaFoodHausv.Geniston,309SCRA17(1999)

3. Rationale,PD851,WhereasClausesandLImitations

WHEREAS,itisnecessarytofurtherprotectthelevelofrealwagesfromthe
ravage
of
worldwide
inflation;

WHEREAS,therehasbeennoincreaseinthelegalminimumwageratessince
1970;

WHEREAS,theChristmasseasonisanopportunetimeforsocietytoshowits
concernfortheplightoftheworkingmassessotheymayproperlycelebrate
Christmas
and
New
Year.

Section 1. All employers are hereby required to pay all their employees
receivingabasicsalaryofnotmorethanP1,000amonth,regardlessofthe
natureoftheiremployment,a13thmonthpaynotlaterthanDecember24
of
every
year.

Sec. 2. Employers already paying their employees a 13thmonth pay or its


equivalentarenotcoveredbythisDecree.

4. AmountandDateofPayment

a.
BasicWage/Commissions

BoieTakedav.DelaSerna,Supra

Iranv.NLRC,supra

HondaPhilippinesInc.v.SamahanngMalayangManggagawasaHonda,
460SCRA186(2005)

b.
SubstitutePayment

FramanlisFarms,Inc.v.NLRC,171SCRA87(1989)

c.

14thMonthPay
KamayaPortHotelv.NLRC,177SCRA160(1989)

d.

I.

Diminution
DavaoFruitsCorp.v.AssociatedLaborUnions,supra

Bonus
1.

Nature

PhilippineDuplicatorsInc.v.NLRC,241SCRA380(1995)

2.

Definition;WhenDemandable

Marcosv.NLRC,248SCRA146(1995)

Business Information Systems and Services, Inc. v. NLRC, 221 SCRA 9


(1993)PhilippineApplianceCorp.v.CourtofAppeals,430SCRA525(2004)

American Wire and Cable Daily Rated Employees Union v. American


WireandCableCo.,Inc.,457SCRA684(2005)

J. WorkingConditionsforSpecialGroupofWorkers

1. Women, Arts. 130138; Omnibus Rules, Book III, Rule XII, Sec. 1;
Constitution,Arts.II,Sec.13&XIII,Sec.14;ConventionontheEliminationof
All Forms of Discrimination Against Women (CEDAW), Arts. 1113; ILO
ConventionNos.100&111

ChapterI
EMPLOYMENTOFWOMEN
ART. 130. Nightwork prohibition. No woman, regardless of age, shall be
employedorpermittedorsufferedtowork,withorwithoutcompensation:
(a) In any industrial undertaking or branch thereof between ten oclock at
nightandsixoclockinthemorningofthefollowingday;or
(b)Inanycommercialornonindustrialundertakingorbranchthereof,other
than agricultural, between midnight and six oclock in the morning of the
followingday;or
(c)Inanyagriculturalundertakingatnighttimeunlesssheisgivenaperiodof
restofnotlessthannine(9)consecutivehours.

ART.131.Exceptions.TheprohibitionsprescribedbytheprecedingArticle
shallnotapplyinanyofthefollowingcases:
(a)Incasesofactualorimpendingemergenciescausedbyseriousaccident,
fire,flood,typhoon,earthquake,epidemicorotherdisastersorcalamity,to
prevent loss of life or property, or in cases of force majeure or imminent
dangertopublicsafety;
(b) In case of urgent work to be performed on machineries, equipment or
installation,toavoidseriouslosswhichtheemployerwouldotherwisesuffer;
(c)Wheretheworkisnecessarytopreventseriouslossofperishablegoods;
(d)Wherethewomanemployeeholdsaresponsiblepositionofmanagerial
or technical nature, or where the woman employee has been engaged to
providehealthandwelfareservices;
(e)Wherethenatureoftheworkrequiresthemanualskillanddexterityof
womenworkersandthesamecannotbeperformedwithequalefficiencyby
maleworkers;
(f) Where the women employees are immediate members of the family
operatingtheestablishmentorundertaking;and
(g) Under other analogous cases exempted by the Secretary of Labor and
Employmentinappropriateregulations.
ART. 132. Facilities for women. The Secretary of Labor and Employment
shall establish standards that will ensure the safety and health of women
employees. In appropriate cases, he shall, by regulations, require any
employerto:
(a)Provideseatsproperforwomenandpermitthemtousesuchseatswhen
they are free from work and during working hours, provided they can
performtheirdutiesinthispositionwithoutdetrimenttoefficiency;
(b)Toestablishseparatetoiletroomsandlavatoriesformenandwomenand
provideatleastadressingroomforwomen;
(c) To establish a nursery in a workplace for the benefit of the women
employeestherein;and

(d) To determine appropriate minimum age and other standards for


retirement or termination in special occupations such as those of flight
attendantsandthelike.
ART. 133. Maternity leave benefits. (a) Every employer shall grant to any
pregnant woman employee who has rendered an aggregate service of at
least six (6) months for the last twelve (12) months, maternity leave of at
leasttwo(2)weekspriortotheexpecteddateofdeliveryandanotherfour
(4)weeksafternormaldeliveryorabortionwithfullpaybasedonherregular
or average weekly wages. The employer may require from any woman
employee applying for maternity leave the production of a medical
certificatestatingthatdeliverywillprobablytakeplacewithintwoweeks.
(b)Thematernityleaveshallbeextendedwithoutpayonaccountofillness
medically certified to arise out of the pregnancy, delivery, abortion or
miscarriage,whichrendersthewomanunfitforwork,unlessshehasearned
unusedleavecreditsfromwhichsuchextendedleavemaybecharged.
(c)ThematernityleaveprovidedinthisArticleshallbepaidbytheemployer
onlyforthefirstfour(4)deliveriesbyawomanemployeeaftertheeffectivity
ofthisCode.
ART. 134. Family planning services; incentives for family planning. (a)
Establishments which are required by law to maintain a clinic or infirmary
shall provide free family planning services to their employees which shall
include, but not be limited to, the application or use of contraceptive pills
andintrauterinedevices.
(b) In coordination with other agencies of the government engaged in the
promotion of family planning, the Department of Labor and Employment
shall develop and prescribe incentive bonus schemes to encourage family
planningamongfemaleworkersinanyestablishmentorenterprise.
ART.135.Discriminationprohibited.Itshallbeunlawfulforanyemployerto
discriminate against any woman employee with respect to terms and
conditionsofemploymentsolelyonaccountofhersex.
Thefollowingareactsofdiscrimination:

(a)Paymentofalessercompensation,includingwage,salaryorotherform
ofremunerationandfringebenefits,toafemaleemployeesasagainstamale
employee,forworkofequalvalue;and
(b) Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants solely on
accountoftheirsexes.
Criminalliabilityforthewillfulcommissionofanyunlawfulactasprovidedin
this Article or any violation of the rules and regulations issued pursuant to
Section2hereofshallbepenalizedasprovidedinArticles288and289ofthis
Code: Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an entirely
separateanddistinctactionformoneyclaims,whichmayincludeclaimsfor
damages and other affirmative reliefs. The actions hereby authorized shall
proceed independently of each other. (As amended by Republic Act No.
6725,May12,1989).
ART.136.Stipulationagainstmarriage.Itshallbeunlawfulforanemployer
torequireasaconditionofemploymentorcontinuationofemploymentthat
awomanemployeeshallnotgetmarried,ortostipulateexpresslyortacitly
thatupongettingmarried,awomanemployeeshallbedeemedresignedor
separated, or to actually dismiss, discharge, discriminate or otherwise
prejudiceawomanemployeemerelybyreasonofhermarriage.
ART.137.Prohibitedacts.(a)Itshallbeunlawfulforanyemployer:
(1)TodenyanywomanemployeethebenefitsprovidedforinthisChapteror
todischargeanywomanemployedbyhimforthepurposeofpreventingher
fromenjoyinganyofthebenefitsprovidedunderthisCode.
(2)Todischargesuchwomanonaccountofherpregnancy,orwhileonleave
orinconfinementduetoherpregnancy;
(3) To discharge or refuse the admission of such woman upon returning to
herworkforfearthatshemayagainbepregnant.
ART. 138. Classification of certain women workers . Any woman who is
permitted or suffered to work, with or without compensation, in any night
club,cocktaillounge,massageclinic,barorsimilarestablishmentsunderthe

effective control or supervision of the employer for a substantial period of


time as determined by the Secretary of Labor and Employment, shall be
consideredasanemployeeofsuchestablishmentforpurposesoflaborand
sociallegislation.
RULE
EmploymentofWomenandMinors

XII

SECTION 1. General statement on coverage. This Rule shall apply to all


employers, whether operating for profit or not, including educational,
religious and charitable institutions, except to the Government and to
governmentowned or controlled corporations and to employers of
household helpers and persons in their personal service insofar as such
workersareconcerned.
Constitution Art. II, Section 13. The State recognizes the vital role of the
youthinnationbuildingandshallpromoteandprotecttheirphysical,moral,
spiritual, intellectual, and social wellbeing. It shall inculcate in the youth
patriotism and nationalism, and encourage their involvement in public and
civicaffairs.

ARTICLEXIIIWOMEN
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
enablethemtorealizetheirfullpotentialintheserviceofthenation.

CEDAW
Article11
1. States Parties shall take all appropriate measures to eliminate
discriminationagainstwomeninthefieldofemploymentinordertoensure,
onabasisofequalityofmenandwomen,thesamerights,inparticular:

(a)Therighttoworkasaninalienablerightofallhumanbeings;
(b) The right to the same employment opportunities, including the
applicationofthesamecriteriaforselectioninmattersofemployment;
(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
righttoreceivevocationaltrainingandretraining,includingapprenticeships,
advancedvocationaltrainingandrecurrenttraining;
(d) The right to equal remuneration, including benefits, and to equal
treatmentinrespectofworkofequalvalue,aswellasequalityoftreatment
intheevaluationofthequalityofwork;
(e) The right to social security, particularly in cases of retirement,
unemployment,sickness,invalidityandoldageandotherincapacitytowork,
aswellastherighttopaidleave;
(f) The right to protection of health and to safety in working conditions,
includingthesafeguardingofthefunctionofreproduction.
2. In order to prevent discrimination against women on the grounds of
marriage or maternity and to ensure their effective right to work, States
Partiesshalltakeappropriatemeasures:
(a) To prohibit, subject to the imposition of sanctions, dismissal on the
groundsofpregnancyorofmaternityleaveanddiscriminationindismissals
onthebasisofmaritalstatus;
(b)Tointroducematernityleavewithpayorwithcomparablesocialbenefits
withoutlossofformeremployment,seniorityorsocialallowances;
(c)Toencouragetheprovisionofthenecessarysupportingsocialservicesto
enableparentstocombinefamilyobligationswithworkresponsibilitiesand
participationinpubliclife,inparticularthroughpromotingtheestablishment
anddevelopmentofanetworkofchildcarefacilities;
(d) To provide special protection to women during pregnancy in types of
workprovedtobeharmfultothem.

3. Protective legislation relating to matters covered in this article shall be


reviewed periodically in the light of scientific and technological knowledge
andshallberevised,repealedorextendedasnecessary.

Article12
1. States Parties shall take all appropriate measures to eliminate
discriminationagainstwomeninthefieldofhealthcareinordertoensure,
on a basis of equality of men and women, access to health care services,
includingthoserelatedtofamilyplanning.
2.NotwithstandingtheprovisionsofparagraphIofthisarticle,StatesParties
shall ensure to women appropriate services in connection with pregnancy,
confinement and the postnatal period, granting free services where
necessary,aswellasadequatenutritionduringpregnancyandlactation.
Article13
StatesPartiesshalltakeallappropriatemeasurestoeliminatediscrimination
againstwomeninotherareasofeconomicandsociallifeinordertoensure,
onabasisofequalityofmenandwomen,thesamerights,inparticular:
(a)Therighttofamilybenefits;
(b)Therighttobankloans,mortgagesandotherformsoffinancialcredit;
(c)Therighttoparticipateinrecreationalactivities,sportsandallaspectsof
cultural
life.

C100EqualRemunerationConvention,1951
Convention concerning Equal Remuneration for Men and Women Workers
for Work of Equal Value (Note: Date of coming into force: 23:05:1953.)
Convention:C100
Place:Geneva
Session
of
the
Conference:34
Date
of
adoption:29:06:1951
Subject
classification:
Equal
Remuneration
Subject
classification:
Women
Subject:
Equality
of
Opportunity
and
Treatment

TheGeneralConferenceoftheInternationalLabourOrganisation,
HavingbeenconvenedatGenevabytheGoverningBodyoftheInternational
LabourOffice,andhavingmetinitsThirtyfourthSessionon6June1951,and
Having decided upon the adoption of certain proposals with regard to the
principle of equal remuneration for men and women workers for work of
equalvalue,whichistheseventhitemontheagendaofthesession,and
Having determined that these proposals shall take the form of an
internationalConvention,
adoptsthistwentyninthdayofJuneoftheyearonethousandninehundred
and fiftyone the following Convention, which may be cited as the Equal
RemunerationConvention,1951:
Article1
ForthepurposeofthisConvention
(a)thetermremunerationincludestheordinary,basicorminimumwageor
salary and any additional emoluments whatsoever payable directly or
indirectly, whether in cash or in kind, by the employer to the worker and
arisingoutoftheworker'semployment;
(b)thetermequalremunerationformenandwomenworkersforworkof
equal value refers to rates of remuneration established without
discriminationbasedonsex.
Article2
1.EachMembershall,bymeansappropriatetothemethodsinoperationfor
determining rates of remuneration, promote and, in so far as is consistent
withsuchmethods,ensuretheapplicationtoallworkersoftheprincipleof
equalremunerationformenandwomenworkersforworkofequalvalue.
2.Thisprinciplemaybeappliedbymeansof
(a)nationallawsorregulations;
(b)legallyestablishedorrecognisedmachineryforwagedetermination;

(c)collectiveagreementsbetweenemployersandworkers;or
(d)acombinationofthesevariousmeans.
Article3
1. Where such action will assist in giving effect to the provisions of this
Convention measures shall be taken to promote objective appraisal of jobs
onthebasisoftheworktobeperformed.
2.Themethodstobefollowedinthisappraisalmaybedecideduponbythe
authorities responsible for the determination of rates of remuneration, or,
where such rates are determined by collective agreements, by the partes
thereto.
3. Differential rates between workers which correspond, without regard to
sex,todifferences,asdeterminedbysuchobjectiveappraisal,intheworkto
be performed shall not be considered as being contrary to the principle of
equalremunerationformenandwomenworkersforworkofequalvalue.
Article4
Each Member shall cooperate as appropriate with the employers' and
workers' organisations concerned for the purpose of giving effect to the
provisionsofthisConvention.
Article5
The formal ratifications of this Convention shall be communicated to the
DirectorGeneraloftheInternationalLabourOfficeforregistration.
Article6
1. This Convention shall be binding only upon those Members of the
International Labour Organisation whose ratifications have been registered
withtheDirectorGeneral.
2. It shall come into force twelve months after the date on which the
ratifications of two Members have been registered with the Director
General.

3.Thereafter,thisConventionshallcomeintoforceforanyMembertwelve
monthsafterthedateonwhichitsratificationhasbeenregistered.
Article7
1. Declarations communicated to the DirectorGeneral of the International
Labour Office in accordance with paragraph 2 of Article 35 of the
ConstitutionoftheInternationalLabourOrganisationshallindicate
a)theterritoriesinrespectofwhichtheMemberconcernedundertakesthat
theprovisionsoftheConventionshallbeappliedwithoutmodification;
b)theterritoriesinrespectofwhichitundertakesthattheprovisionsofthe
Conventionshallbeappliedsubjecttomodifications,togetherwithdetailsof
thesaidmodifications;
c) the territories in respect of which the Convention is inapplicable and in
suchcasesthegroundsonwhichitisinapplicable;
d)theterritoriesinrespectofwhichitreservesitsdecisionpendingfurther
considerationoftheposition.
2.Theundertakingsreferredtoinsubparagraphs(a)and(b)ofparagraph1
ofthisArticleshallbedeemedtobeanintegralpartoftheratificationand
shallhavetheforceofratification.
3.AnyMembermayatanytimebyasubsequentdeclarationcancelinwhole
or in part any reservation made in its original declaration in virtue of
subparagraph(b),(c)or(d)ofparagraph1ofthisArticle.
4. Any Member may, at any time at which the Convention is subject to
denunciationinaccordancewiththeprovisionsofArticle9,communicateto
theDirectorGeneraladeclarationmodifyinginanyotherrespecttheterms
ofanyformerdeclarationandstatingthepresentpositioninrespectofsuch
territoriesasitmayspecify.
Article8
1. Declarations communicated to the DirectorGeneral of the International
Labour Office in accordance with paragraph 4 or 5 of Article 35 of the
ConstitutionoftheInternationalLabourOrganisationshallindicatewhether

the provisions of the Convention will be applied in the territory concerned


without modification or subject to modifications; when the declaration
indicates that the provisions of the Convention will be applied subject to
modifications,itshallgivedetailsofthesaidmodifications.
2. The Member, Members or international authority concerned may at any
time by a subsequent declaration renounce in whole or in part the right to
haverecoursetoanymodificationindicatedinanyformerdeclaration.
3.TheMember,Membersorinternationalauthorityconcernedmay,atany
timeatwhichthisConventionissubjecttodenunciationinaccordancewith
the provisions of Article 9, communicate to the DirectorGeneral a
declaration modifying in any other respect the terms of any former
declarationandstatingthepresentpositioninrespectoftheapplicationof
theConvention.
Article9
1. A Member which has ratified this Convention may denounce it after the
expiration of ten years from the date on which the Convention first comes
into force, by an act communicated to the DirectorGeneral of the
InternationalLabourOfficeforregistration.Suchdenunciationshallnottake
effectuntiloneyearafterthedateonwhichitisregistered.
2. Each Member which has ratified this Convention and which does not,
withintheyearfollowingtheexpirationoftheperiodoftenyearsmentioned
intheprecedingparagraph,exercisetherightofdenunciationprovidedforin
this Article, will be bound for another period of ten years and, thereafter,
maydenouncethisConventionattheexpirationofeachperiodoftenyears
underthetermsprovidedforinthisArticle.
Article10
1. The DirectorGeneral of the International Labour Office shall notify all
Members of the International Labour Organisation of the registration of all
ratifications, declarations and denunciations communicated to him by the
MembersoftheOrganisation.
2.WhennotifyingtheMembersoftheOrganisationoftheregistrationofthe
second ratification communicated to him, the DirectorGeneral shall draw

the attention of the Members of the Organisation to the date upon which
theConventionwillcomeintoforce.
Article11
TheDirectorGeneraloftheInternationalLabourOfficeshallcommunicateto
the SecretaryGeneral of the United Nations for registration in accordance
with Article 102 of the Charter of the United Nations full particulars of all
ratifications, declarations and acts of denunciation registered by him in
accordancewiththeprovisionsoftheprecedingarticles.
Article12
At such times as may consider necessary the Governing Body of the
InternationalLabourOfficeshallpresenttotheGeneralConferenceareport
on the working of this Convention and shall examine the desirability of
placingontheagendaoftheConferencethequestionofitsrevisioninwhole
orinpart.
Article13
1.ShouldtheConferenceadoptanewConventionrevisingthisConventionin
wholeorinpart,then,unlessthenewConventionotherwiseprovides
a)theratificationbyaMemberofthenewrevisingConventionshallipsojure
involvetheimmediatedenunciationofthisConvention,notwithstandingthe
provisionsofArticle9above,ifandwhenthenewrevisingConventionshall
havecomeintoforce;
b)asfromthedatewhenthenewrevisingConventioncomesintoforcethis
ConventionshallceasetobeopentoratificationbytheMembers.
2. This Convention shall in any case remain in force in its actual form and
content for those Members which have ratified it but have not ratified the
revisingConvention.

Article14

The English and French versions of the text of this Convention are equally
authoritative.
C111Discrimination(EmploymentandOccupation)Convention,1958
Convention concerning Discrimination in Respect of Employment and
Occupation (Note: Date of coming into force: 15:06:1960.)
Convention:C111
Place:Geneva
Session
of
the
Conference:42
Date
of
adoption:25:06:1958
Subject classification: Nondiscrimination (Employment and Occupation)
Subject
classification:
Women
Subject:
Equality
of
Opportunity
and
Treatment

TheGeneralConferenceoftheInternationalLabourOrganisation,
HavingbeenconvenedatGenevabytheGoverningBodyoftheInternational
Labour Office, and having met in its Fortysecond Session on 4 June 1958,
and
Having decided upon the adoption of certain proposals with regard to
discriminationinthefieldofemploymentandoccupation,whichisthefourth
itemontheagendaofthesession,and
Having determined that these proposals shall take the form of an
internationalConvention,and
Considering that the Declaration of Philadelphia affirms that all human
beings,irrespectiveofrace,creedorsex,havetherighttopursueboththeir
materialwellbeingandtheirspiritualdevelopmentinconditionsoffreedom
anddignity,ofeconomicsecurityandequalopportunity,and
Considering further that discrimination constitutes a violation of rights
enunciatedbytheUniversalDeclarationofHumanRights,
adoptsthistwentyfifthdayofJuneoftheyearonethousandninehundred
and fiftyeight the following Convention, which may be cited as the
Discrimination(EmploymentandOccupation)Convention,1958:

Article1
1.ForthepurposeofthisConventionthetermdiscriminationincludes
(a)anydistinction,exclusionorpreferencemadeonthebasisofrace,colour,
sex,religion,politicalopinion,nationalextractionorsocialorigin,whichhas
the effect of nullifying or impairing equality of opportunity or treatment in
employmentoroccupation;
(b) such other distinction, exclusion or preference which has the effect of
nullifying or impairing equality of opportunity or treatment in employment
or occupation as may be determined by the Member concerned after
consultation with representative employers' and workers' organisations,
wheresuchexist,andwithotherappropriatebodies.
2.Anydistinction,exclusionorpreferenceinrespectofaparticularjobbased
on the inherent requirements thereof shall not be deemed to be
discrimination.
3.ForthepurposeofthisConventionthetermsemploymentandoccupation
includeaccesstovocationaltraining,accesstoemploymentandtoparticular
occupations,andtermsandconditionsofemployment.
Article2
EachMemberforwhichthisConventionisinforceundertakestodeclareand
pursue a national policy designed to promote, by methods appropriate to
national conditions and practice, equality of opportunity and treatment in
respect of employment and occupation, with a view to eliminating any
discriminationinrespectthereof.
Article3
EachMemberforwhichthisConventionisinforceundertakes,bymethods
appropriatetonationalconditionsandpractice
(a) to seek the cooperation of employers' and workers' organisations and
other appropriate bodies in promoting the acceptance and observance of
thispolicy;

(b)toenactsuchlegislationandtopromotesucheducationalprogrammesas
maybecalculatedtosecuretheacceptanceandobservanceofthepolicy;
(c) to repeal any statutory provisions and modify any administrative
instructionsorpracticeswhichareinconsistentwiththepolicy;
(d)topursuethepolicyinrespectofemploymentunderthedirectcontrolof
anationalauthority;
(e)toensureobservanceofthepolicyintheactivitiesofvocationalguidance,
vocationaltrainingandplacementservicesunderthedirectionofanational
authority;
(f)toindicateinitsannualreportsontheapplicationoftheConventionthe
action taken in pursuance of the policy and the results secured by such
action.
Article4
Any measures affecting an individual who is justifiably suspected of, or
engaged in, activities prejudicial to the security of the State shall not be
deemed to be discrimination, provided that the individual concerned shall
havetherighttoappealtoacompetentbodyestablishedinaccordancewith
nationalpractice.
Article5
1. Special measures of protection or assistance provided for in other
Conventions or Recommendations adopted by the International Labour
Conferenceshallnotbedeemedtobediscrimination.
2.AnyMembermay,afterconsultationwithrepresentativeemployers'and
workers' organisations, where such exist, determine that other special
measuresdesignedtomeettheparticularrequirementsofpersonswho,for
reasons such as sex, age, disablement, family responsibilities or social or
cultural status, are generally recognised to require special protection or
assistance,shallnotbedeemedtobediscrimination.
Article6

Each Member which ratifies this Convention undertakes to apply it to non


metropolitanterritoriesinaccordancewiththeprovisionsoftheConstitution
oftheInternationalLabourOrganisation.
Article7
The formal ratifications of this Convention shall be communicated to the
DirectorGeneraloftheInternationalLabourOfficeforregistration.
Article8
1. This Convention shall be binding only upon those Members of the
International Labour Organisation whose ratifications have been registered
withtheDirectorGeneral.
2. It shall come into force twelve months after the date on which the
ratifications of two Members have been registered with the Director
General.
3.Thereafter,thisConventionshallcomeintoforceforanyMembertwelve
monthsafterthedateonwhichitsratificationhasbeenregistered.
Article9
1. A Member which has ratified this Convention may denounce it after the
expiration of ten years from the date on which the Convention first comes
into force, by an act communicated to the DirectorGeneral of the
InternationalLabourOfficeforregistration.Suchdenunciationshallnottake
effectuntiloneyearafterthedateonwhichitisregistered.
2. Each Member which has ratified this Convention and which does not,
withintheyearfollowingtheexpirationoftheperiodoftenyearsmentioned
intheprecedingparagraph,exercisetherightofdenunciationprovidedforin
this Article, will be bound for another period of ten years and, thereafter,
maydenouncethisConventionattheexpirationofeachperiodoftenyears
underthetermsprovidedforinthisArticle.
Article10
1. The DirectorGeneral of the International Labour Office shall notify all
Members of the International Labour Organisation of the registration of all

ratificationsanddenunciationscommunicatedtohimbytheMembersofthe
Organisation.
2.WhennotifyingtheMembersoftheOrganisationoftheregistrationofthe
second ratification communicated to him, the DirectorGeneral shall draw
the attention of the Members of the Organisation to the date upon which
theConventionwillcomeintoforce.
Article11
TheDirectorGeneraloftheInternationalLabourOfficeshallcommunicateto
the SecretaryGeneral of the United Nations for registration in accordance
with Article 102 of the Charter of the United Nations full particulars of all
ratifications and acts of denunciation registered by him in accordance with
theprovisionsoftheprecedingArticles.
Article12
At such times as it may consider necessary the Governing Body of the
InternationalLabourOfficeshallpresenttotheGeneralConferenceareport
on the working of this Convention and shall examine the desirability of
placingontheagendaoftheConferencethequestionofitsrevisioninwhole
orinpart.
Article13
1.ShouldtheConferenceadoptanewConventionrevisingthisConventionin
wholeorinpart,then,unlessthenewConventionotherwiseprovides:
a)theratificationbyaMemberofthenewrevisingConventionshallipsojure
involvetheimmediatedenunciationofthisConvention,notwithstandingthe
provisionsofArticle9above,ifandwhenthenewrevisingConventionshall
havecomeintoforce;
b)asfromthedatewhenthenewrevisingConventioncomesintoforce,this
ConventionshallceasetobeopentoratificationbytheMembers.
2. This Convention shall in any case remain in force in its actual form and
content for those Members which have ratified it but have not ratified the
revisingConvention.

Article14
The English and French versions of the text of this Convention are equally
authoritative.
a.
Equality:FormalEqualityvs.SubstantiveEquality

Readings:

Bartlett, Katharine, Gender Law, in Duke Journal of Gender Law and


Policy(1994)

Formal Equality and Substantive Equality in the Textbook on Gender


andtheLawbyAngelaHarris

Baldoz, Rosalinda, Job discrimination against women in the work


environment:thePhilippinesetting,PLR,Vol.24,No.1(2000).

b.
WomenundertheConstitution,Art.II,Sec.14;ArtXIII,Sec14

Philippine Association of Service Exporters v. Drilon, 163 SCRA 386


(1988)

Phil.TelegraphandTelephoneCo.v.NLRC,272SCRA596(1997)

c.

Coverage,RuleXII,Sec.I

EmploymentofWomenandMinors
SECTION 1. General statement on coverage. This Rule shall apply to all
employers, whether operating for profit or not, including educational,
religious and charitable institutions, except to the Government and to
governmentowned or controlled corporations and to employers of
household helpers and persons in their personal service insofar as such
workersareconcerned.

d.

1)

ProhibitedActs
NightWork/Exception,Art.130131

ART. 130. Nightwork prohibition. No woman, regardless of age, shall be


employedorpermittedorsufferedtowork,withorwithoutcompensation:
(a) In any industrial undertaking or branch thereof between ten oclock at
nightandsixoclockinthemorningofthefollowingday;or
(b)Inanycommercialornonindustrialundertakingorbranchthereof,other
than agricultural, between midnight and six oclock in the morning of the
followingday;or
(c)Inanyagriculturalundertakingatnighttimeunlesssheisgivenaperiodof
restofnotlessthannine(9)consecutivehours.
ART.131.Exceptions.TheprohibitionsprescribedbytheprecedingArticle
shallnotapplyinanyofthefollowingcases:
(a)Incasesofactualorimpendingemergenciescausedbyseriousaccident,
fire,flood,typhoon,earthquake,epidemicorotherdisastersorcalamity,to
prevent loss of life or property, or in cases of force majeure or imminent
dangertopublicsafety;
(b) In case of urgent work to be performed on machineries, equipment or
installation,toavoidseriouslosswhichtheemployerwouldotherwisesuffer;
(c)Wheretheworkisnecessarytopreventseriouslossofperishablegoods;
(d)Wherethewomanemployeeholdsaresponsiblepositionofmanagerial
or technical nature, or where the woman employee has been engaged to
providehealthandwelfareservices;
(e)Wherethenatureoftheworkrequiresthemanualskillanddexterityof
womenworkersandthesamecannotbeperformedwithequalefficiencyby
maleworkers;
(f) Where the women employees are immediate members of the family
operatingtheestablishmentorundertaking;and
(g) Under other analogous cases exempted by the Secretary of Labor and
Employmentinappropriateregulations.

9) Discrimination,Art.135
ART.135.Discriminationprohibited.Itshallbeunlawfulforanyemployerto
discriminate against any woman employee with respect to terms and
conditionsofemploymentsolelyonaccountofhersex.
Thefollowingareactsofdiscrimination:
(a)Paymentofalessercompensation,includingwage,salaryorotherform
ofremunerationandfringebenefits,toafemaleemployeesasagainstamale
employee,forworkofequalvalue;and
(b) Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants solely on
accountoftheirsexes.
Criminalliabilityforthewillfulcommissionofanyunlawfulactasprovidedin
this Article or any violation of the rules and regulations issued pursuant to
Section2hereofshallbepenalizedasprovidedinArticles288and289ofthis
Code: Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an entirely
separateanddistinctactionformoneyclaims,whichmayincludeclaimsfor
damages and other affirmative reliefs. The actions hereby authorized shall
proceed independently of each other. (As amended by Republic Act No.
6725,May12,1989).
10) StipulationAgainstMarriage,Art.136

ART.136.Stipulationagainstmarriage.Itshallbeunlawfulforanemployer
torequireasaconditionofemploymentorcontinuationofemploymentthat
awomanemployeeshallnotgetmarried,ortostipulateexpresslyortacitly
thatupongettingmarried,awomanemployeeshallbedeemedresignedor
separated, or to actually dismiss, discharge, discriminate or otherwise
prejudiceawomanemployeemerelybyreasonofhermarriage.

DuncanAssociationofDetailmanPTGWOv.GlaxoWellcome
Philippines,Inc.,438SCRA343(2004)

11) DischargeonAccountofPregnancy,Art.137

ART.137.Prohibitedacts.(a)Itshallbeunlawfulforanyemployer:
(1)TodenyanywomanemployeethebenefitsprovidedforinthisChapteror
todischargeanywomanemployedbyhimforthepurposeofpreventingher
fromenjoyinganyofthebenefitsprovidedunderthisCode.
(2)Todischargesuchwomanonaccountofherpregnancy,orwhileonleave
orinconfinementduetoherpregnancy;
(3) To discharge or refuse the admission of such woman upon returning to
herworkforfearthatshemayagainbepregnant.

d.

Facilities,Art.132,134

ART. 132. Facilities for women. The Secretary of Labor and Employment
shall establish standards that will ensure the safety and health of women
employees. In appropriate cases, he shall, by regulations, require any
employerto:
(a)Provideseatsproperforwomenandpermitthemtousesuchseatswhen
they are free from work and during working hours, provided they can
performtheirdutiesinthispositionwithoutdetrimenttoefficiency;
(b)Toestablishseparatetoiletroomsandlavatoriesformenandwomenand
provideatleastadressingroomforwomen;
(c) To establish a nursery in a workplace for the benefit of the women
employeestherein;and
(d) To determine appropriate minimum age and other standards for
retirement or termination in special occupations such as those of flight
attendantsandthelike.
ART. 134. Family planning services; incentives for family planning. (a)
Establishments which are required by law to maintain a clinic or infirmary
shall provide free family planning services to their employees which shall
include, but not be limited to, the application or use of contraceptive pills
andintrauterinedevices.
(b) In coordination with other agencies of the government engaged in the
promotion of family planning, the Department of Labor and Employment
shall develop and prescribe incentive bonus schemes to encourage family
planningamongfemaleworkersinanyestablishmentorenterprise.
e.

SpecialWomenWorkers,138

ART. 138. Classification of certain women workers . Any woman who is


permitted or suffered to work, with or without compensation, in any night
club,cocktaillounge,massageclinic,barorsimilarestablishmentsunderthe
effective control or supervision of the employer for a substantial period of
time as determined by the Secretary of Labor and Employment, shall be
consideredasanemployeeofsuchestablishmentforpurposesoflaborand
sociallegislation.

f.
MaternityLeave,SocialSecurityLawof1997(RA1161,asamended
byRA8282),Sec.14A,RA828
"SEC. 14A. Maternity Leave Benefit. A female member who has paid at
least three (3) monthly contributions in the twelvemonth period
immediatelyprecedingthesemesterofherchildbirthormiscarriageshallbe
paidadailymaternitybenefitequivalenttoonehundredpercent(100%)of
heraveragedailysalarycreditforsixty(60)daysorseventyeight(78)daysin
caseofcaesariandelivery,subjecttothefollowingconditions:
"(a) That the employee shall have notified her employer of her pregnancy
andtheprobabledateofherchildbirth,whichnoticeshallbetransmittedto
theSSSinaccordancewiththerulesandregulationsitmayprovide;
"(b) The full payment shall be advanced by the employer within thirty (30)
daysfromthefilingofthematernityleaveapplication;
"(c)Thatpaymentofdailymaternitybenefitsshallbeabartotherecoveryof
sickness benefits provided by this Act for the same period for which daily
maternitybenefitshavebeenreceived;
"(d) That the maternity benefits provided under this section shall be paid
onlyforthefirstfour(4)deliveriesormiscarriages;
"(e)ThattheSSSshallimmediatelyreimbursetheemployerofonehundred
percent (100%) of the amount of maternity benefits advanced to the
employee by the employer upon receipt of satisfactory proof of such
paymentandlegalitythereof;and
"(f) That if an employee member should give birth or suffer miscarriage
without the required contributions having been remitted for her by her
employertotheSSS,orwithoutthelatterhavingbeenpreviouslynotifiedby

theemployerofthetimeofthepregnancy,theemployershallpaytotheSSS
damages equivalent to the benefits which said employee member would
otherwisehavebeenentitledto.
g.

SexualHarassment(RA7877)

REPUBLICACTNO.7877
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE
EMPLOYMENT, EDUACATION OR TRAINING ENVIRONMENT, AND FOR
OTHERPURPOSES
BeitenactedbytheSenateandHouseofRepresentativesofthePhilippines
inCongressassembled:
Section1.Title.ThisActshallbeknownasthe"AntiSexualHarassment
Actof1995."
Sec.2.DeclarationofPolicy.TheStateshallvaluethedignityofevery
individual, enhance the development of it human resources, guarantee full
respect for human rights, and uphold the dignity of workers, employees,
applicants for employment, students or those undergoing training,
instructionoreducation.Towardsthisend,allformsofsexualharassmentin
the employment, education or training environment are hereby declared
unlawful.
Sec.3.Work,EducationorTrainingrelatedSexualHarassmentDefined.
Work,educationortrainingrelatedsexualharassmentiscommittedbyan
employee, manager, supervisor, agent of the employer, teacher, instructor,
professor, coach, trainor, or any other person who, having authority,
influence or moral ascendancy over another in a work or training or
educationenvironment,demands,requestsorotherwiserequiresanysexual
favor from the other, regardless of whether the demand, request or
requirementforsubmissionisacceptedbytheobjectofsaidAct.
(a) In a workrelated or employment environment, sexual
harassmentiscommittedwhen:

(1) The sexual favor is made as a condition in the hiring or in the


employment,reemploymentorcontinuedemploymentofsaidindividual,or
in granting said individual favorable compensation, terms, conditions,
promotions, or privileges; or the refusal to grant the sexual favor results in
limiting, segregating or classifying the employee which in a way would
discriminate, deprive or diminish employment opportunities or otherwise
adverselyaffectsaidemployee;
(2)Theaboveactswouldimpairtheemployeesrightsorprivileges
underexistinglaborlaws;or
(3) The above acts would result in an intimidating, hostile, or
offensiveenvironmentfortheemployee.
(b) In an education or training environment, sexual harassment is
committed:
(1)Againstonewhoisunderthecare,custodyorsupervisionofthe
offender;
(2) Against one whose education, training, apprenticeship or
tutorshipisentrustedtotheoffender;
(3) When the sexual favor is made a condition to the giving of a
passinggrade,orthegrantingofhonorsandscholarships,orthepaymentof
astipend,allowanceorotherbenefits,privileges,orconsiderations;or
(4) When the sexual advances result in an intimidating, hostile or
offensiveenvironmentforthestudent,traineeorapprentice.
Anypersonwhodirectsorinducesanothertocommitanyactof
sexualharassmentashereindefined,orwhocooperatesinthecommission
thereofby another without which it would not have been committed, shall
alsobeheldliableunderthisAct.
Sec.4. Duty of the Employer or Head of Office in a Workrelated,
EducationorTrainingEnvironment.Itshallbethedutyoftheemployeror
the head of the workrelated, educational or training environment or
institution,topreventordeterthecommissionofactsofsexualharassment
andtoprovidetheproceduresfortheresolution,settlementorprosecution

of acts of sexual harassment. Towards this end, the employer or head of


officeshall:
(a) Promulgate appropriate rules and regulations in consultation
withthejointlyapprovedbytheemployeesorstudentsortrainees,through
their duly designated representatives, prescribing the procedure for the
investigation or sexual harassment cases and the administrative sanctions
therefor.
Administrativesanctionsshallnotbeabartoprosecutionintheproper
courtsforunlawfulactsofsexualharassment.
The said rules and regulations issued pursuant to this section (a) shall
include,amongothers,guidelinesonproperdecorumintheworkplaceand
educationalortraininginstitutions.
(c) Create a committee on decorum and investigation of cases on
sexualharassment.Thecommitteeshallconductmeetings,asthecasemay
be, with other officers and employees, teachers, instructors, professors,
coaches, trainors and students or trainees to increase understanding and
preventincidentsofsexualharassment.Itshallalsoconducttheinvestigation
oftheallegedcasesconstitutingsexualharassment.
In the case of a workrelated environment, the committee shall be
composedofatleastone(1)representativeeachfromthemanagement,the
union, if any, the employees from the supervisory rank, and from the rank
andfileemployees.
Inthecaseoftheeducationalortraininginstitution,thecommitteeshall
becomposedofatleastone(1)representativefromtheadministration,the
trainors, teachers, instructors, professors or coaches and students or
trainees,asthecasemaybe.
"Theemployerorheadofoffice,educationalortraininginstitutionshall
disseminateorpostacopyofthisActfortheinformationofallconcerned.
Sec.5.LiabilityoftheEmployer,HeadofOffice,EducationalorTraining
Institution.Theemployerorheadofoffice,educationaltraininginstitution
shall be solidarily liable for damage arising from the acts of sexual
harassment committed in the employment, education or training

environment if the employer or head of office, educational or training


institutionisinformedofsuchactsbytheoffendedpartyandnoimmediate
actionistakenthereon.
Sec. 6. Independent Action for Damages. Nothing in this Act shall
precludethevictimofwork,educationortrainingrelatedsexualharassment
from instituting a separate and independent action for damages and other
affirmativerelief.
Sec. 7. Penalties. Any person who violates the provisions of this Act
shall,uponconviction,bepenalizedbyimprisonmentofnotlessthanone(1)
monthnormorethansix(6)months,orafineofnotlessthanTenthousand
pesos (P10,000) nor more than Twenty thousand pesos (P20,000), or both
suchfineandimprisonmentatthediscretionofthecourt.
Any action arising from the violation of the provision of this Act shall
prescribeinthree(3)years.
Sec. 8. Separability Clause If any portion or provision of this Act is
declared void and unconstitutional, the remaining portions or provisions
hereofshallnotbeaffectedbysuchdeclaration.
Sec.9. Repealing Clause. All laws, decrees, orders, rules and
regulations,otherissuances,orpartsthereofinconsistentwiththeprovisions
ofthisActareherebyrepealedormodifiedaccordingly.
Sec.10. Effectivity Clause. This Act shall take effect fifteen (15) days
after its complete publication in at least two (2) national newspaper of
generalcirculation.

Libresv.NLRC,307SCRA675(1999)

Philippine Aelous Automotive United Corp. v. NLRC, 331SCRA 237


(2000)

RenatoS.Gatbontonv.NLRC,etal.,479SCRA416(2006)

2. Minors

Reference:Art.s139140;OmnibusRules,BookIII,RuleXII,Secs.23;
Special Protection of Children Act of 2003 (RA 7610, as amended by RA
9231);ILOConventionNo.182andILORecommendationNo.190

EMPLOYMENTOFMINORS
ART.139.Minimumemployableage.(a)Nochildbelowfifteen(15)yearsof
age shall be employed, except when he works directly under the sole
responsibilityofhisparentsorguardian,andhisemploymentdoesnotinany
wayinterferewithhisschooling.
(b)Anypersonbetweenfifteen(15)andeighteen(18)yearsofagemaybe
employed for such number of hours and such periods of the day as
determined by the Secretary of Labor and Employment in appropriate
regulations.
(c) The foregoing provisions shall in no case allow the employment of a
person below eighteen (18) years of age in an undertaking which is
hazardousordeleteriousinnatureasdeterminedbytheSecretaryofLabor
andEmployment.

ART. 140. Prohibition against child discrimination. No employer shall


discriminate against any person in respect to terms and conditions of
employmentonaccountofhisage.
SECTION2.Employableage.Childrenbelowfifteen(15)yearsofagemay
be allowed to work under the direct responsibility of their parents or
guardiansinanynonhazardousundertakingwheretheworkwillnotinany
way interfere with their schooling. In such cases, the children shall not be
consideredasemployeesoftheemployersortheirparentsorguardians.
SECTION3.Eligibilityforemployment.Anypersonofeithersex,between
15 and 18 years of age, may be employed in any nonhazardous work. No
employer shall discriminate against such person in regard to terms and
conditionsofemploymentonaccountofhisage.
ForpurposesofthisRule,anonhazardousworkorundertakingshallmean
anyworkoractivityinwhichtheemployeeisnotexposedtoanyriskwhich
constitutes an imminent danger to his safety and health. The Secretary of
Labor and Employment shall from time to time publish a list of hazardous
work and activities in which persons 18 years of age and below cannot be
employed.
Republic
Congress
MetroManila

of
of

the
the

Twelfth
ThirdRegularSession

Philippines
Philippines
Congress

BegunandheldinMetroManila,onMonday,thetwentyeighthdayofJuly,
twothousandthree.
RepublicActNo.9231December19,2003
AN ACT PROVIDING FOR THE ELIMINATION OF THE WORST FORMS OF
CHILDLABORANDAFFORDINGSTRONGERPROTECTIONFORTHEWORKING
CHILD, AMENDING FOR THIS PURPOSE REPUBLIC ACTNO. 7610, AS
AMENDED, OTHERWISE KNOWN AS THE "SPECIAL PROTECTION OF

CHILDREN AGAINST CHILD ABUSE, EXPLOITATION AND DISCRIMINATION


ACT"
Be it enacted by the Senate and the House of Representatives of the
PhilippinesinCongressassembled:
Section1.Section2ofRepublicActNo.7610,asamended,otherwiseknown
as the "Special Protection of Children Against Child Abuse, Exploitation and
DiscriminationAct",isherebyamendedtoreadasfollows:
"Sec.2.DeclarationofStatePolicyandPrinciples.Itisherebydeclaredtobe
thepolicyoftheStatetoprovidespecialprotectiontochildrenfromallforms
of abuse, neglect, cruelty, exploitation and discrimination, and other
conditionsprejudicialtotheirdevelopmentincludingchildlaboranditsworst
forms; provide sanctions for their commission and carry out a program for
prevention and deterrence of and crisis intervention in situations of child
abuse,exploitationanddiscrimination.TheStateshallinterveneonbehalfof
the child when the parent, guardian, teacher or person having care or
custody of the child fails or is unable to protect the child against abuse,
exploitation and discrimination or when such acts against the child are
committedbythesaidparent,guardian,teacherorpersonhavingcareand
custodyofthesame.
"ItshallbethepolicyoftheStatetoprotectandrehabilitatechildrengravely
threatenedorendangeredbycircumstanceswhichaffectorwillaffecttheir
survivalandnormaldevelopmentandoverwhichtheyhavenocontrol.
"The best interests of children shall be the paramount consideration in all
actions concerning them, whether undertaken by public or private social
welfareinstitutions,courtsoflaw,administrativeauthorities,andlegislative
bodies,consistentwiththeprincipleofFirstCallforChildrenasenunciatedin
theUnitedNationsConventionontheRightsoftheChild.Everyeffortshall
be exerted to promote the welfare of children and enhance their
opportunitiesforausefulandhappylife."
Section 2. Section 12 of the same Act, as amended, is hereby further
amendedtoreadasfollows:
"Sec. 2. Employment of Children Children below fifteen (15) years of age
shallnotbeemployedexcept:

"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)Whereachild'semploymentorparticipationinpublicentertainmentor
information through cinema, theater, radio, television or other forms of
mediaisessential:Provided,Thattheemploymentcontractisconcludedby
thechild'sparentsorlegalguardian,withtheexpressagreementofthechild
concerned, if possible, and the approval of the Department of Labor and
Employment: Provided, further, That the following requirements in all
instancesarestrictlycompliedwith:
"(a) The employer shall ensure the protection, health, safety, morals and
normaldevelopmentofthechild;
"(b)Theemployershallinstitutemeasurestopreventthechild'sexploitation
ordiscriminationtakingintoaccountthesystemandlevelofremuneration,
andthedurationandarrangementofworkingtime;and
"(c) The employer shall formulate and implement, subject to the approval
andsupervisionofcompetentauthorities,acontinuingprogramfortraining
andskillsacquisitionofthechild.
"Intheaboveexceptionalcaseswhereanysuchchildmaybeemployed,the
employer shallfirstsecure, beforeengaging such child, a work permit from
theDepartmentofLaborandEmploymentwhichshallensureobservanceof
theaboverequirements.
"ForpurposesofthisArticle,theterm"child"shallapplytoallpersonsunder
eighteen(18)yearsofage."
Section3.ThesameAct,asamended,isherebyfurtheramendedbyadding
new sections to be denominated as Sections 12A, 12B, 12C, and 12D to
readasfollows:

"Sec.2A.HoursofWorkofaWorkingChild.Undertheexceptionsprovided
inSection12ofthisAct,asamended:
"(1)Achildbelowfifteen(15)yearsofagemaybeallowedtoworkfornot
more than twenty (20) hours a week: Provided, That the work shall not be
morethanfour(4)hoursatanygivenday;
"(2) A child fifteen (15) years of age but below eighteen (18) shall not be
allowedtoworkformorethaneight(8)hoursaday,andinnocasebeyond
forty(40)hoursaweek;
"(3) No child below fifteen (15) years of age shall be allowed to work
between eight o'clock in the evening and six o'clock in the morning of the
followingdayandnochildfifteen(15)yearsofagebutbeloweighteen(18)
shallbeallowedtoworkbetweenteno'clockintheeveningandsixo'clockin
themorningofthefollowingday."
"Sec. 12B. Ownership, Usage and Administration of the Working Child's
Income.Thewages,salaries,earningsandotherincomeoftheworkingchild
shall belong to him/her in ownership and shall be set aside primarily for
his/her support, education or skills acquisition and secondarily to the
collectiveneedsofthefamily:Provided,Thatnotmorethantwentypercent
(20%) of the child's income may be used for the collective needs of the
family.
"Theincomeoftheworkingchildand/orthepropertyacquiredthroughthe
work of the child shall be administered by both parents. In the absence or
incapacity of either of the parents, the other parent shall administer the
same. In case both parents are absent or incapacitated, the order of
preferenceonparentalauthorityasprovidedforundertheFamilyCodeshall
apply.
"Sec.12C.TrustFundtoPreservePartoftheWorkingChild'sIncome.The
parentorlegalguardianofaworkingchildbeloweighteen(18)yearsofage
shall set up a trust fund for at least thirty percent (30%) of the earnings of
thechildwhosewagesandsalariesfromworkandotherincomeamountto
at least two hundred thousand pesos (P200,000.00) annually, for which
he/sheshallrenderasemiannualaccountingofthefundtotheDepartment
ofLaborandEmployment,incompliancewiththeprovisionsofthisAct.The

child shall have full control over the trust fund upon reaching the age of
majority.
"Sec.12D.ProhibitionAgainstWorstFormsofChildLabor.Nochildshallbe
engagedintheworstformsofchildlabor.Thephrase"worstformsofchild
labor"shallrefertoanyofthefollowing:
"(1)Allformsofslavery,asdefinedunderthe"AntitraffickinginPersonsAct
of 2003", or practices similar to slavery such as sale and trafficking of
children, debt bondage and serfdom and forced or compulsory labor,
includingrecruitmentofchildrenforuseinarmedconflict;or
"(2) The use, procuring, offering or exposing of a child for prostitution, for
theproductionofpornographyorforpornographicperformances;or
"(3) The use, procuring or offering of a child for illegal or illicit activities,
including the production and trafficking of dangerous drugs and volatile
substancesprohibitedunderexistinglaws;or
"(4)Workwhich,byitsnatureorthecircumstancesinwhichitiscarriedout,
is hazardous or likely to be harmful to the health, safety or morals of
children,suchthatit:
"a)Debases,degradesordemeanstheintrinsicworthanddignityofachild
asahumanbeing;or
"b)Exposesthechildtophysical,emotionalorsexualabuse,orisfoundtobe
highlystressfulpsychologicallyormayprejudicemorals;or
"c)Isperformedunderground,underwateroratdangerousheights;or
"d) Involves the use of dangerous machinery, equipment and tools such as
powerdrivenorexplosivepoweractuatedtools;or
"e) Exposes the child to physical danger such as, but not limited to the
dangerous feats of balancing, physical strength or contortion, or which
requiresthemanualtransportofheavyloads;or
"f) Is performed in an unhealthy environment exposing the child to
hazardousworkingconditions,elements,substances,coagentsorprocesses

involvingionizing,radiation,fire,flammablesubstances,noxiouscomponents
andthelike,ortoextremetemperatures,noiselevels,orvibrations;or
"g)Isperformedunderparticularlydifficultconditions;or
"h) Exposes the child to biological agents such as bacteria, fungi, viruses,
protozoans,nematodesandotherparasites;or
"i)Involvesthemanufactureorhandlingofexplosivesandotherpyrotechnic
products."
Section4.Section13ofthesameActisherebyamendedtoreadasfollows:
"Sec.13.AccesstoEducationandTrainingforWorkingChildren"a)Nochild
shall be deprived of formal or nonformal education. In all cases of
employmentallowedinthisAct,theemployershallprovideaworkingchild
withaccesstoatleastprimaryandsecondaryeducation.
"b)Toensureandguaranteetheaccessoftheworkingchildtoeducationand
training, the Department of Education (DEPED) shall: (1) formulate,
promulgate, and implement relevant and effective course designs and
educational programs; (2) conduct the necessary training for the
implementation of the appropriate curriculum for the purpose; (3) ensure
the availability of the needed educational facilities and materials; and (4)
conduct continuing research and development program for the necessary
andrelevantalternativeeducationoftheworkingchild.
"c) The DEPED shall promulgate a course design under its nonformal
educationprogramaimedatpromotingtheintellectual,moralandvocational
efficiency of working children who have not undergone or finished
elementary or secondary education. Such course design shall integrate the
learningprocessdeemedmosteffectiveundergivencircumstances."
Section5.Section14ofthesameActisherebyamendedtoreadasfollows:
"Sec. 14. Prohibition on the Employment of Children in Certain
Advertisements. No child shall be employed as a model in any
advertisement directly or indirectly promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts, gambling or any form of
violenceorpornography."

Section6.Section16ofthesameAct,isherebyamendedtoreadasfollows:
"Sec.16.PenalProvisions
"a)AnyemployerwhoviolatesSections12,12A,andSection14ofthisact,
asamended,shallbepenalizedbyimprisonmentofsix(6)monthsandone
(1) day to six (6) years or a fine of not less than Fifty thousand pesos
(P50,000.00) but not more than Three hundred thousand pesos
(P300,000.00)orbothatthediscretionofthecourt.
"b)AnypersonwhoviolatestheprovisionofSection12Dofthisactorthe
employerofthesubcontractorwhoemploys,ortheonewhofacilitatesthe
employmentofachildinhazardouswork,shallsufferthepenaltyofafineof
notlessthanOnehundredthousandpesos(P100,000.00)butnotmorethan
Onemillionpesos(P1,000,000.00),orimprisonmentofnotlessthantwelve
(12) years and one (1) day to twenty (20) years, or both such fine and
imprisonmentatthediscretionofthecourt.
"c)AnypersonwhoviolatesSections12D(1)and12D(2)shallbeprosecuted
and penalized in accordance with the penalty provided for by R. A. 9208
otherwise known as the "Antitrafficking in Persons Act of 2003": Provided,
ThatSuchpenaltyshallbeimposedinitsmaximumperiod.
"d) Any person who violates Section 12D (3) shall be prosecuted and
penalized in accordance with R.A. 9165, otherwise known as the
"ComprehensiveDangerousDrugsActof2002";Provided,Thatsuchpenalty
shallbeimposedinitsmaximumperiod.
"e) If a corporation commits any of the violations aforecited, the board of
directors/trustees and officers, which include the president, treasurer and
secretary of the said corporation who participated in or knowingly allowed
the violation, shall be penalized accordingly as provided for under this
Section.
"f) Parents, biological or by legal fiction, and legal guardians found to be
violatingSections12,12A,12Band12CofthisActshallpayafineofnot
lessthanTenthousandpesos(P10,000.00)butnotmorethanOnehundred
thousand pesos (P100,000.00), or be required to rendercommunityservice
fornotlessthanthirty(30)daysbutnotmorethanone(1)year,orbothsuch
fineandcommunityserviceatthediscretionofthecourt:Provided,Thatthe

maximumlengthofcommunityserviceshallbeimposedonparentsorlegal
guardians who have violated the provisions of this Act three (3) times;
Provided,further,Thatinadditiontothecommunityservice,thepenaltyof
imprisonmentofthirty(30)daysbutnotmorethanone(1)yearorbothat
the discretion of the court, shall be imposed on the parents or legal
guardians who have violated the provisions of this Act more than three (3)
times.
"g) The Secretary, of Labor and Employment or his/her duly authorized
representative may, after due notice and hearing, order the closure of any
businessfirmorestablishmentfoundtohaveviolatedanyoftheprovisions
of this Act more than three (3) times. He/she shall likewise order the
immediateclosureofsuchfirmorestablishmentif:
"(1) The violation of any provision of this Act has resulted in the death,
insanityorseriousphysicalinjuryofachildemployedinsuchestablishment;
or
"(2)Suchfirmorestablishmentisengagedoremployedinprostitutionorin
obsceneorlewdshows.
"h) In case of such closure, the employer shall be required to pay the
employee(s)theseparationpayandothermonetarybenefitsprovidedforby
law."
Section7.ThesameActisherebyfurtheramendedbyaddinganewsection
tobedenominatedasSection16A,toreadasfollows:
"Sec. 16A. Trust Fund from Fines and Penalties The fine imposed by the
court shall be treated as a Trust Fund, administered by the Department of
LaborandEmploymentanddisbursedexclusivelyfortheneeds,includingthe
costsofrehabilitationandreintegrationintothemainstreamofsocietyofthe
working children who are victims of the violations of this Act, and for the
programsandprojectsthatwillpreventactsofchildlabor."
Section8.Section27ofthesameActisherebyamendedtoreadasfollows:
"Sec. 27. Who May File a Complaint Complaints on cases of unlawful acts
committed against children as enumerated herein may be filed by the
following:

"(a)Offendedparty;
"(b)Parentsorguardians;
"(c)Ascendantorcollateralrelativewithinthethirddegreeofconsanguinity;
"(d) Officer, social worker or representative of a licensed childcaring
institution;
"(e) Officer or social worker of the Department of Social Welfare and
Development;
"(f)Barangaychairmanoftheplacewheretheviolationoccurred,wherethe
childisresidingoremployed;or
"(g) At least three (3) concerned, responsible citizens where the violation
occurred."
Section9.ThesameActisherebyfurtheramendedbyaddingnewsections
toSection16tobedenominatedasSections16A,16Band16Ctoreadas
follows:
"Sec.16A.JurisdictionThefamilycourtsshallhaveoriginaljurisdictionover
allcasesinvolvingoffensespunishableunderthisAct:Provided,Thatincities
or provinces where there are no family courts yet, the regional trial courts
andthemunicipaltrialcourtsshallhaveconcurrentjurisdictiondependingon
thepenaltiesprescribedfortheoffensecharged.
"The preliminary investigation of cases filed under this Act shall be
terminatedwithinaperiodofthirty(30)daysfromthedateoffiling.
"If the preliminary investigation establishes a prima facie case, then the
correspondinginformationshallbefiledincourtwithinfortyeight(48)hours
fromtheterminationoftheinvestigation.
"TrialofcasesunderthisActshallbeterminatedbythecourtnotlaterthan
ninety(90)daysfromthedateoffilingofinformation.Decisiononsaidcases
shall be rendered within a period of fifteen (15) days from the date of
submissionofthecase.

"Sec. 15. Exemptions from Filing Fees. When the victim of child labor
institutes a separate civil action for the recovery of civil damages, he/she
shallbeexemptfrompaymentoffilingfees.
"Sec. 16C. Access to Immediate Legal, Medical and PsychoSocial Services
Theworkingchildshallhavetherighttofreelegal,medicalandpsychosocial
servicestobeprovidedbytheState."
Section10.ImplementingRulesandRegulationsTheSecretaryofLaborand
Employment, in coordination with the Committees on Labor and
Employment of both Houses of Congress, shall issue the necessary
Implementing Rules and Regulations (IRR) to effectively implement the
provisions of this Act, in consultation with concerned public and private
sectors,withinsixty(60)daysfromtheeffectivityofthisAct.
Suchrulesandregulationsshalltakeeffectupontheirpublicationintwo(2)
nationalnewspapersofgeneralcirculation.
Section 11. Separability Clause. If any provision of this Act is declared
invalid or unconstitutional, the validity of the remaining provisions hereof
shallremaininfullforceandeffect.
Section 12. Repealing Clause. All laws, decrees, or rules inconsistent with
theprovisionsofthisActareherebyrepealedormodifiedaccordingly.
Section13.Effectivity.ThisActshalltakeeffectfifteen(15)daysfromthe
dateofitscompletepublicationintheOfficialGazetteorinatleasttwo(2)
nationalnewspapersofgeneralcirculation.
C182WorstFormsofChildLabourConvention,1999
Convention concerning the Prohibition and Immediate Action for the
Elimination of the Worst Forms of Child Labour (Note: Date of coming into
force:
19:11:2000)
Convention:C182
Place:Geneva
Session
of
the
Conference:87
Date
of
adoption:17:06:1999
Subject
classification:
Elimination
of
Child
Labour
Subject
classification:
Children
and
Young
Persons

Subject:EliminationofChildLabourandProtectionofChildrenandYoung
Persons

TheGeneralConferenceoftheInternationalLabourOrganization,
HavingbeenconvenedatGenevabytheGoverningBodyoftheInternational
LabourOffice,andhavingmetinits87thSessionon1June1999,and
Considering the need to adopt new instruments for the prohibition and
elimination of the worst forms of child labour, as the main priority for
national and international action, including international cooperation and
assistance, to complement the Convention and the Recommendation
concerningMinimumAgeforAdmissiontoEmployment,1973,whichremain
fundamentalinstrumentsonchildlabour,and
Consideringthattheeffectiveeliminationoftheworstformsofchildlabour
requires immediate and comprehensive action, taking into account the
importance of free basic education and the need to remove the children
concerned from all such work and to provide for their rehabilitation and
socialintegrationwhileaddressingtheneedsoftheirfamilies,and
Recalling the resolution concerning the elimination of child labour adopted
bytheInternationalLabourConferenceatits83rdSessionin1996,and
Recognizingthatchildlabouristoagreatextentcausedbypovertyandthat
the longterm solution lies in sustained economic growth leading to social
progress,inparticularpovertyalleviationanduniversaleducation,and
Recalling the Convention on the Rights of the Child adopted by the United
NationsGeneralAssemblyon20November1989,and
RecallingtheILODeclarationonFundamentalPrinciplesandRightsatWork
anditsFollowup,adoptedbytheInternationalLabourConferenceatits86th
Sessionin1998,and
Recallingthatsomeoftheworstformsofchildlabourarecoveredbyother
internationalinstruments,inparticulartheForcedLabourConvention,1930,
and the United Nations Supplementary Convention on the Abolition of

Slavery, the Slave Trade, and Institutions and Practices Similar to Slavery,
1956,and
Havingdecidedupontheadoptionofcertainproposalswithregardtochild
labour,whichisthefourthitemontheagendaofthesession,and
Having determined that these proposals shall take the form of an
internationalConvention;
adoptsthisseventeenthdayofJuneoftheyearonethousandninehundred
andninetyninethefollowingConvention,whichmaybecitedastheWorst
FormsofChildLabourConvention,1999.
Article1
Each Member which ratifies this Convention shall take immediate and
effective measures to secure the prohibition and elimination of the worst
formsofchildlabourasamatterofurgency.
Article2
ForthepurposesofthisConvention,thetermchildshallapplytoallpersons
undertheageof18.
Article3
For the purposes of this Convention, the term the worst forms of child
labourcomprises:
(a) all forms of slavery or practices similar to slavery, such as the sale and
traffickingofchildren,debtbondageandserfdomandforcedorcompulsory
labour, including forced or compulsory recruitment of children for use in
armedconflict;
(b) the use, procuring or offering of a child for prostitution, for the
productionofpornographyorforpornographicperformances;
(c)theuse,procuringorofferingofachildforillicitactivities,inparticularfor
the production and trafficking of drugs as defined in the relevant
internationaltreaties;

(d)workwhich,byitsnatureorthecircumstancesinwhichitiscarriedout,is
likelytoharmthehealth,safetyormoralsofchildren.
Article4
1. The types of work referred to under Article 3(d) shall be determined by
national laws or regulations or by the competent authority, after
consultation with the organizations of employers and workers concerned,
taking into consideration relevant international standards, in particular
Paragraphs 3 and 4 of the Worst Forms of Child Labour Recommendation,
1999.
2. The competent authority, after consultation with the organizations of
employersandworkersconcerned,shallidentifywherethetypesofworkso
determinedexist.
3.Thelistofthetypesofworkdeterminedunderparagraph1ofthisArticle
shallbeperiodicallyexaminedandrevisedasnecessary,inconsultationwith
theorganizationsofemployersandworkersconcerned.
Article5
Each Member shall, after consultation with employers' and workers'
organizations,establishordesignateappropriatemechanismstomonitorthe
implementationoftheprovisionsgivingeffecttothisConvention.
Article6
1. Each Member shall design and implement programmes of action to
eliminateasaprioritytheworstformsofchildlabour.
2. Such programmes of action shall be designed and implemented in
consultation with relevant government institutions and employers' and
workers' organizations, taking into consideration the views of other
concernedgroupsasappropriate.
Article7
1. Each Member shall take all necessary measures to ensure the effective
implementation and enforcement of the provisions giving effect to this

Conventionincludingtheprovisionandapplicationofpenalsanctionsor,as
appropriate,othersanctions.
2. Each Member shall, taking into account the importance of education in
eliminatingchildlabour,takeeffectiveandtimeboundmeasuresto:
(a)preventtheengagementofchildrenintheworstformsofchildlabour;
(b)providethenecessaryandappropriatedirectassistancefortheremoval
ofchildrenfromtheworstformsofchildlabourandfortheirrehabilitation
andsocialintegration;
(c) ensure access to free basic education, and, wherever possible and
appropriate, vocational training, for all children removed from the worst
formsofchildlabour;
(d)identifyandreachouttochildrenatspecialrisk;and
(e)takeaccountofthespecialsituationofgirls.
3.EachMembershalldesignatethecompetentauthorityresponsibleforthe
implementationoftheprovisionsgivingeffecttothisConvention.
Article8
Membersshalltakeappropriatestepstoassistoneanotheringivingeffectto
the provisions of this Convention through enhanced international
cooperation and/or assistance including support for social and economic
development,povertyeradicationprogrammesanduniversaleducation.
Article9
The formal ratifications of this Convention shall be communicated to the
DirectorGeneraloftheInternationalLabourOfficeforregistration.
Article10
1. This Convention shall be binding only upon those Members of the
International Labour Organization whose ratifications have been registered
withtheDirectorGeneraloftheInternationalLabourOffice.

2.Itshallcomeintoforce12monthsafterthedateonwhichtheratifications
oftwoMembershavebeenregisteredwiththeDirectorGeneral.
3. Thereafter, this Convention shall come into force for any Member 12
monthsafterthedateonwhichitsratificationhasbeenregistered.
Article11
1. A Member which has ratified this Convention may denounce it after the
expiration of ten years from the date on which the Convention first comes
into force, by an act communicated to the DirectorGeneral of the
InternationalLabourOfficeforregistration.Suchdenunciationshallnottake
effectuntiloneyearafterthedateonwhichitisregistered.
2. Each Member which has ratified this Convention and which does not,
withintheyearfollowingtheexpirationoftheperiodoftenyearsmentioned
intheprecedingparagraph,exercisetherightofdenunciationprovidedforin
this Article, will be bound for another period of ten years and, thereafter,
maydenouncethisConventionattheexpirationofeachperiodoftenyears
underthetermsprovidedforinthisArticle.
Article12
1. The DirectorGeneral of the International Labour Office shall notify all
Members of the International Labour Organization of the registration of all
ratificationsandactsofdenunciationcommunicatedbytheMembersofthe
Organization.
2.WhennotifyingtheMembersoftheOrganizationoftheregistrationofthe
second ratification, the DirectorGeneral shall draw the attention of the
Members of the Organization to the date upon which the Convention shall
comeintoforce.
Article13
TheDirectorGeneraloftheInternationalLabourOfficeshallcommunicateto
the SecretaryGeneral of the United Nations, for registration in accordance
with article 102 of the Charter of the United Nations, full particulars of all
ratifications and acts of denunciation registered by the DirectorGeneral in
accordancewiththeprovisionsoftheprecedingArticles.

Article14
At such times as it may consider necessary, the Governing Body of the
InternationalLabourOfficeshallpresenttotheGeneralConferenceareport
on the working of this Convention and shall examine the desirability of
placingontheagendaoftheConferencethequestionofitsrevisioninwhole
orinpart.
Article15
1.ShouldtheConferenceadoptanewConventionrevisingthisConventionin
wholeorinpart,then,unlessthenewConventionotherwiseprovides
(a) the ratification by a Member of the new revising Convention shall ipso
jureinvolvetheimmediatedenunciationofthisConvention,notwithstanding
theprovisionsofArticle11above,ifandwhenthenewrevisingConvention
shallhavecomeintoforce;
(b)asfromthedatewhenthenewrevisingConventioncomesintoforce,this
ConventionshallceasetobeopentoratificationbytheMembers.
2. This Convention shall in any case remain in force in its actual form and
content for those Members which have ratified it but have not ratified the
revisingConvention.
Article16
The English and French versions of the text of this Convention are equally
authoritative.
R190WorstFormsofChildLabourRecommendation,1999
Recommendation concerning the prohibition and immediate action for the
elimination
of
the
worst
forms
of
child
labour
Place:Geneva
Session
of
the
Conference:87
Date
of
adoption:17:06:1999
Subject
classification:
Elimination
of
Child
Labour
Subject
classification:
Children
and
Young
Persons
Subject:EliminationofChildLabourandProtectionofChildrenandYoung

Persons

TheGeneralConferenceoftheInternationalLabourOrganization,
HavingbeenconvenedatGenevabytheGoverningBodyoftheInternational
LabourOffice,andhavingmetinitsEightyseventhSessionon1June1999,
and
HavingadoptedtheWorstFormsofChildLabourConvention,1999,and
Havingdecidedupontheadoptionofcertainproposalswithregardtochild
labour,whichisthefourthitemontheagendaofthesession,and
Having determined that these proposals shall take the form of a
Recommendation supplementing the Worst Forms of Child Labour
Convention,1999;
adoptsthisseventeenthdayofJuneoftheyearonethousandninehundred
and ninetynine the following Recommendation, which may be cited as the
WorstFormsofChildLabourRecommendation,1999.
1. The provisions of this Recommendation supplement those of the Worst
Forms of Child Labour Convention, 1999 (hereafter referred to as "the
Convention"),andshouldbeappliedinconjunctionwiththem.
I.Programmesofaction
2.TheprogrammesofactionreferredtoinArticle6oftheConventionshould
be designed and implemented as a matter of urgency, in consultation with
relevantgovernmentinstitutionsandemployers'andworkers'organizations,
taking into consideration the views of the children directly affected by the
worst forms of child labour, their families and, as appropriate, other
concerned groups committed to the aims of the Convention and this
Recommendation.Suchprogrammesshouldaimat,interalia:
(a)identifyinganddenouncingtheworstformsofchildlabour;
(b) preventing the engagement of children in or removing them from the
worstformsofchildlabour,protectingthemfromreprisalsandprovidingfor

their rehabilitation and social integration through measures which address


theireducational,physicalandpsychologicalneeds;
(c)givingspecialattentionto:
(i)youngerchildren;
(ii)thegirlchild;
(iii)theproblemofhiddenworksituations,inwhichgirlsareatspecialrisk;
(iv)othergroupsofchildrenwithspecialvulnerabilitiesorneeds;
(d)identifying,reachingouttoandworkingwithcommunitieswherechildren
areatspecialrisk;
(e) informing, sensitizing and mobilizing public opinion and concerned
groups,includingchildrenandtheirfamilies.
II.Hazardouswork
3. In determining the types of work referred to under Article 3(d) of the
Convention, and in identifying where they exist, consideration should be
given,interalia,to:
(a)workwhichexposeschildrentophysical,psychologicalorsexualabuse;
(b) work underground, under water, at dangerous heights or in confined
spaces;
(c)workwithdangerousmachinery,equipmentandtools,orwhichinvolves
themanualhandlingortransportofheavyloads;
(d) work in an unhealthy environment which may, for example, expose
children to hazardous substances, agents or processes, or to temperatures,
noiselevels,orvibrationsdamagingtotheirhealth;
(e)workunderparticularlydifficultconditionssuchasworkforlonghoursor
during the night or work where the child is unreasonably confined to the
premisesoftheemployer.

4.ForthetypesofworkreferredtounderArticle3(d)oftheConventionand
Paragraph3above,nationallawsorregulationsorthecompetentauthority
could, after consultation with the workers' and employers' organizations
concerned, authorize employment or work as from the age of 16 on
condition that the health, safety and morals of the children concerned are
fully protected, and that the children have received adequate specific
instructionorvocationaltrainingintherelevantbranchofactivity.
III.Implementation
5. (1) Detailed information and statistical data on the nature and extent of
childlabourshouldbecompiledandkeptuptodatetoserveasabasisfor
determiningprioritiesfornationalactionfortheabolitionofchildlabour,in
particularfortheprohibitionandeliminationofitsworstformsasamatter
ofurgency.
(2) As far as possible, such information and statistical data should include
data disaggregated by sex, age group, occupation, branch of economic
activity,statusinemployment,schoolattendanceandgeographicallocation.
The importance of an effective system of birth registration, including the
issuingofbirthcertificates,shouldbetakenintoaccount.
(3) Relevant data concerning violations of national provisions for the
prohibition and elimination of the worst forms of child labour should be
compiledandkeptuptodate.
6.Thecompilationandprocessingoftheinformationanddatareferredtoin
Paragraph 5 above should be carried out with due regard for the right to
privacy.
7. The information compiled under Paragraph 5 above should be
communicatedtotheInternationalLabourOfficeonaregularbasis.
8.Membersshouldestablishordesignateappropriatenationalmechanisms
tomonitortheimplementationofnationalprovisionsfortheprohibitionand
elimination of the worst forms of child labour, after consultation with
employers'andworkers'organizations.
9. Members should ensure that the competent authorities which have
responsibilitiesforimplementingnationalprovisionsfortheprohibitionand

eliminationoftheworstformsofchildlabourcooperatewitheachotherand
coordinatetheiractivities.
10. National laws or regulations or the competent authority should
determinethepersonstobeheldresponsibleintheeventofnoncompliance
with national provisions for the prohibition and elimination of the worst
formsofchildlabour.
11.Membersshould,insofarasitiscompatiblewithnationallaw,cooperate
with international efforts aimed at the prohibition and elimination of the
worstformsofchildlabourasamatterofurgencyby:
(a) gathering and exchanging information concerning criminal offences,
includingthoseinvolvinginternationalnetworks;
(b) detecting and prosecuting those involved in the sale and trafficking of
children,orintheuse,procuringorofferingofchildrenforillicitactivities,for
prostitution, for the production of pornography or for pornographic
performances;
(c)registeringperpetratorsofsuchoffences.
12. Members should provide that the following worst forms of child labour
arecriminaloffences:
(a) all forms of slavery or practices similar to slavery, such as the sale and
traffickingofchildren,debtbondageandserfdomandforcedorcompulsory
labour, including forced or compulsory recruitment of children for use in
armedconflict;
(b) the use, procuring or offering of a child for prostitution, for the
productionofpornographyorforpornographicperformances;and
(c)theuse,procuringorofferingofachildforillicitactivities,inparticularfor
the production and trafficking of drugs as defined in the relevant
internationaltreaties,orforactivitieswhichinvolvetheunlawfulcarryingor
useoffirearmsorotherweapons.
13. Members should ensure that penalties including, where appropriate,
criminalpenaltiesareappliedforviolationsofthenationalprovisionsforthe

prohibitionandeliminationofanytypeofworkreferredtoinArticle3(d)of
theConvention.
14.Membersshouldalsoprovideasamatterofurgencyforothercriminal,
civil or administrative remedies, where appropriate, to ensure the effective
enforcementofnationalprovisionsfortheprohibitionandeliminationofthe
worstformsofchildlabour,suchasspecialsupervisionofenterpriseswhich
have used the worst forms of child labour, and, in cases of persistent
violation, consideration of temporary or permanent revoking of permits to
operate.
15. Other measures aimed at the prohibition and elimination of the worst
formsofchildlabourmightincludethefollowing:
(a)informing,sensitizingandmobilizingthegeneralpublic,includingnational
andlocalpoliticalleaders,parliamentariansandthejudiciary;
(b) involving and training employers' and workers' organizations and civic
organizations;
(c) providing appropriate training for the government officials concerned,
especially inspectors and law enforcement officials, and for other relevant
professionals;
(d) providing for the prosecution in their own country of the Member's
nationals who commit offences under its national provisions for the
prohibition and immediate elimination of the worst forms of child labour
evenwhentheseoffencesarecommittedinanothercountry;
(e) simplifying legal and administrative procedures and ensuring that they
areappropriateandprompt;
(f)encouragingthedevelopmentofpoliciesbyundertakingstopromotethe
aimsoftheConvention;
(g) monitoring and giving publicity to best practices on the elimination of
childlabour;
(h)givingpublicitytolegalorotherprovisionsonchildlabourinthedifferent
languagesordialects;

(i) establishing special complaints procedures and making provisions to


protect from discrimination and reprisals those who legitimately expose
violations of the provisions of the Convention, as well as establishing
helplinesorpointsofcontactandombudspersons;
(j)adoptingappropriatemeasurestoimprovetheeducationalinfrastructure
andthetrainingofteacherstomeettheneedsofboysandgirls;
(k)asfaraspossible,takingintoaccountinnationalprogrammesofaction:
(i) the need for job creation and vocational training for the parents and
adults in the families of children working in the conditions covered by the
Convention;and
(ii) the need for sensitizing parents to the problem of children working in
suchconditions.
16. Enhanced international cooperation and/or assistance among Members
for the prohibition and effective elimination of the worst forms of child
labour should complement national efforts and may, as appropriate, be
developed and implemented in consultation with employers' and workers'
organizations. Such international cooperation and/or assistance should
include:
(a)mobilizingresourcesfornationalorinternationalprogrammes;
(b)mutuallegalassistance;
(c)technicalassistanceincludingtheexchangeofinformation;
(d) support for social and economic development, poverty eradication
programmesanduniversaleducation.
a.
MinorsundertheConstitution,Art.II,Sec.13

Section13.TheStaterecognizesthevitalroleoftheyouthinnationbuilding
and shall promote and protect their physical, moral, spiritual, intellectual,
and social wellbeing. It shall inculcate in the youth patriotism and
nationalism,andencouragetheirinvolvementinpublicandcivicaffairs.

b.
Coverage,RA9231,Sec.2,par.3onSec.12;BookIII,RuleXII,Sec.1

(SeeAbove)

c.
EmploymentofChildren,Art.139;RA7610,Sec.1216;DOLEMemo
CircularNo.2,S1998Re;HazardousandNonHazardousEstablishments

RA7610
ARTICLE
WorkingChildren

VIII

Section 12. Employment of Children. Children below fifteen (15) years of


agemaybeemployedexcept:
(1) When a child works directly under the sole responsibility of his
parents or legal guardian and where only members of the employer's
familyareemployed:Provided,however,Thathisemploymentneither
endangershislife,safetyandhealthandmorals,norimpairshisnormal
development:Provided,further,Thattheparentorlegalguardianshall
provide the said minor child with the prescribed primary and/or
secondaryeducation;or
(2) When a child's employment or participation in public &
entertainment or information through cinema, theater, radio or
television is essential: Provided, The employment contract concluded
by the child's parent or guardian, with the express agreement of the
child concerned, if possible, and the approval of the Department of
Labor and Employment: Provided, That the following requirements in
allinstancesarestrictlycompliedwith:
(a)Theemployershallensuretheprotection,health,safetyandmorals
ofthechild;
(b) the employer shall institute measures to prevent the child's
exploitationordiscriminationtakingintoaccountthesystemandlevel
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
programfortrainingandskillacquisitionofthechild.
Intheaboveexceptionalcaseswhereanysuchchildmaybeemployed,the
employer shallfirstsecure, beforeengaging such child, a work permit from
theDepartmentofLaborandEmploymentwhichshallensureobservanceof
theaboverequirement.
TheDepartmentofLaborEmploymentshallpromulgaterulesandregulations
necessaryfortheeffectiveimplementationofthisSection.
Section13.NonformalEducationforWorkingChildren.TheDepartmentof
Education, Culture and Sports shall promulgate a course design under its
nonformal education program aimed at promoting the intellectual, moral
and vocational efficiency of working children who have not undergone or
finished elementary or secondary education. Such course design shall
integrate the learning process deemed most effective under given
circumstances.
Section 14. Prohibition on the Employment of Children in Certain
Advertisements.Nopersonshallemploychildmodelsinallcommercialsor
advertisements promoting alcoholic beverages, intoxicating drinks, tobacco
anditsbyproductsandviolence.
Section15.DutyofEmployer.Everyemployershallcomplywiththeduties
providedforinArticles108and109ofPresidentialDecreeNo.603.
Section 16. Penalties. Any person who shall violate any provision of this
ArticleshallsufferthepenaltyofafineofnotlessthanOnethousandpesos
(P1,000)butnotmorethanTenthousandpesos(P10,000)orimprisonment
ofnotlessthanthree(3)monthsbutnotmorethanthree(3)years,orboth
atthediscretionofthecourt;Provided,That,incaseofrepeatedviolations
of the provisions of this Article, the offender's license to operate shall be
revoked.

d.

HoursofWork,RA9231,Sec.3onSec.12a

e.
ProhibitionsAgainstWorstFormsofChildLabor,Sec.3onSec.12d;
Sec5onsec.14

f.
Discrimination,Art.140

g.
Jurisdiction,Sec.9onSec.16A

Reading:

DelRosarioandBonga,IssuesandGapsGoverningChildLabor,inChild
LaborinthePhilippines,AReviewofSelectedStudiesandPolicyPapers,pp.
178183(2000).

3. Househelpers/Caregivers

Reference:Arts.141152;OmnibusRules,BookIII,RuleXIII

ChapterIII
EMPLOYMENTOFHOUSEHELPERS
ART. 141. Coverage. This Chapter shall apply to all persons rendering
servicesinhouseholdsforcompensation.
"Domesticorhouseholdservice"shallmeanserviceintheemployershome
whichisusuallynecessaryordesirableforthemaintenanceandenjoyment
thereofandincludesministeringtothepersonalcomfortandconvenienceof
the members of the employers household, including services of family
drivers.
ART. 142. Contract of domestic service. The original contract of domestic
serviceshallnotlastformorethantwo(2)yearsbutitmayberenewedfor
suchperiodsasmaybeagreeduponbytheparties.
ART. 143. Minimum wage. (a) Househelpers shall be paid the following
minimumwagerates:
(1) Eight hundred pesos (P800.00) a month for househelpers in Manila,
Quezon, Pasay, and Caloocan cities and municipalities of Makati, San Juan,
Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque, Las Pias, Pasig,
Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly
urbanizedcities;
(2) Six hundred fifty pesos (P650.00) a month for those in other chartered
citiesandfirstclassmunicipalities;and
(3) Five hundred fifty pesos (P550.00) a month for those in other
municipalities.
Provided,Thattheemployersshallreviewtheemploymentcontractsoftheir
househelpers every three (3) years with the end in view of improving the
termsandconditionsthereof.
Provided, further, That those househelpers who are receiving at least One
thousand pesos (P1,000.00) shall be covered by the Social Security System

(SSS)andbeentitledtoallthebenefitsprovidedthereunder.(Asamendedby
RepublicActNo.7655,August19,1993).
ART.144.Minimumcashwage.Theminimumwageratesprescribedunder
this Chapter shall be the basic cash wages which shall be paid to the
househelpersinadditiontolodging,foodandmedicalattendance.
ART. 145. Assignment to nonhousehold 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
agriculturalworkersasprescribedherein.
ART.146.Opportunityforeducation.Ifthehousehelperisundertheageof
eighteen(18)years,theemployershallgivehimorheranopportunityforat
least elementary education. The cost of education shall be part of the
househelperscompensation,unlessthereisastipulationtothecontrary.
ART. 147. Treatment of househelpers. The employer shall treat the
househelperinajustandhumanemanner.Innocaseshallphysicalviolence
beuseduponthehousehelper.
ART. 148. Board, lodging, and medical attendance. The employer shall
furnishthehousehelper,freeofcharge,suitableandsanitarylivingquarters
aswellasadequatefoodandmedicalattendance.
ART. 149. Indemnity for unjust termination of services. If the period of
household service is fixed, neither the employer nor the househelper may
terminate the contract before the expiration of the term, except for a just
cause. If the househelper is unjustly dismissed, he or she shall be paid the
compensation already earned plus that for fifteen (15) days by way of
indemnity.
If the househelper leaves without justifiable reason, he or she shall forfeit
anyunpaidsalaryduehimorhernotexceedingfifteen(15)days.
ART. 150. Service of termination notice. If the duration of the household
serviceisnotdeterminedeitherinstipulationorbythenatureoftheservice,
the employer or the househelper may give notice to put an end to the
relationshipfive(5)daysbeforetheintendedterminationoftheservice.

ART.151.Employmentcertification.Upontheseveranceofthehousehold
servicerelation,theemployershallgivethehousehelperawrittenstatement
of the nature and duration of the service and his or her efficiency and
conductashousehelper.
ART.152.Employmentrecord.Theemployermaykeepsuchrecordsashe
may deem necessary to reflect the actual terms and conditions of
employment of his househelper, which the latter shall authenticate by
signatureorthumbmarkuponrequestoftheemployer.

RULE
EmploymentofHousehelpers

XIII

SECTION1.Generalstatementoncoverage.(a)TheprovisionsofthisRule
shallapplytoallhousehelperswhetheremployedonfullorparttimebasis.
(b) The term "househelper" as used herein is synonymous to the term
"domestic servant" and shall refer to any person, whether male or female,
whorendersservicesinandabouttheemployer'shomeandwhichservices
are usually necessary or desirable for the maintenance and enjoyment
thereof,andministersexclusivelytothepersonalcomfortandenjoymentof
theemployer'sfamily.
SECTION 2. Method of payment not determinant. The provisions of this
Rule shall apply irrespective of the method of payment of wages agreed
uponbytheemployerandhousehelper,whetheritbehourly,daily,weekly,
ormonthly,orbypieceoroutputbasis.
SECTION 3. Children of househelpers. The children and relatives of a
househelper who live under the employer's roof and who share the
accommodationsprovidedforthehousehelpersbytheemployershallnotbe
deemedashousehelpersiftheyarenototherwiseengagedassuchandare
notrequiredtoperformanysubstantialhouseholdwork.

SECTION 4. Employment contract. The initial contract for household


service shall not last for more than two (2) years. However, such contract
mayberenewedfromyeartoyear.
SECTION 5. Minimum monthly wage. The minimum compensation of
househelpersshallnotbelessthanthefollowingrates:
(a)Sixtypesos(P60.00)amonthforthoseemployedinthecitiesofManila,
Quezon,PasayandCaloocan,andinthemunicipalitiesofMakati,SanJuan,
Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque, Las Pias, Pasig
andMarikina,intheProvinceofRizal.
(b)Fortyfivepesos(P45.00)amonthforthoseemployedinotherchartered
citiesandfirstclassmunicipalities;and
(c)Thirtypesos(P30.00)amonthforthoseinothermunicipalities.
SECTION6.Equivalentdailyrate.Theequivalentminimumdailywagerate
of househelpers shall be determined by dividing the applicable minimum
monthlyratebythirty(30)days.
SECTION7.Paymentbyresults.Wherethemethodofpaymentofwages
agreed upon by the employer and the househelper is by piece or output
basis,thepieceoroutputratesshallbesuchaswillassurethehousehelper
of the minimum monthly or the equivalent daily rate as provided in this
issuance.
SECTION 8. Minimum cash wage. The minimum wage rates prescribed
under this Rule shall be basic cash wages which shall be paid to the
househelpersinadditiontolodging,foodandmedicalattendance.
SECTION9.Timeandmannerofpayment.Wagesshallbepaiddirectlyto
thehousehelpertowhomtheyaredueatleastonceamonth.Nodeductions
therefrom shall be made by the employer unless authorized by the
househelperhimselforbyexistinglaws.
SECTION10.Assignmenttononhouseholdwork.Nohousehelpershallbe
assigned to work in a commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for agricultural and non
agriculturalworkers.

SECTION 11. Opportunity for education. If the househelper is under the


ageofeighteen(18)years,theemployershallgivehimorheranopportunity
foratleastelementaryeducation.Thecostofsucheducationshallbepartof
thehousehelper'scompensation,unlessthereisastipulationtothecontrary.
SECTION 12. Treatment of househelpers. The employer shall treat the
househelperinajustandhumanemanner.Innocaseshallphysicalviolence
beinflicteduponthehousehelper.
SECTION 13. Board, lodging and medical attendance. The employer shall
furnishthe househelper freesuitable and sanitaryliving quarters as wellas
adequatefoodandmedicalattendance.
SECTION14.Indemnityforunjustterminationofservice.Iftheperiodfor
household service is fixed, neither the employer nor the househelper may
terminate the contract before the expiration of the term, except for a just
cause. If the househelper is unjustly dismissed, he or she shall be paid the
compensation already earned plus that for fifteen (15) days by way of
indemnity.
If the househelper leaves without justifiable reason, he or she shall forfeit
anyunpaidsalaryduehimorhernotexceedingfifteen(15)days.
SECTION 15. Employment certification. Upon the severance of the
household service relationship, the househelper may demand from the
employerawrittenstatementofthenatureanddurationoftheserviceand
hisorherefficiencyandconductashousehelper.
SECTION 16. Funeral expenses. In case of death of the househelper, the
employershallbearthefuneralexpensescommensuratetothestandardsof
lifeofthedeceased.
SECTION17.Dispositionofthehousehelper'sbody.Unlesssodesiredby
thehousehelperorbyhisorherguardianwithcourtapproval,thetransferor
useofthebodyofthedeceasedhousehelperforpurposesotherthanburial
isprohibited.Whensoauthorizedbythehousehelper,thetransfer,useand
dispositionofthebodyshallbeinaccordancewiththeprovisionsofRepublic
ActNo.349.

SECTION 18. Employment records. The employermay keep such records


as he may deem necessary to reflect the actual terms and conditions of
employment of his househelper which the latter shall authenticate by
signatureorthumbmarkuponrequestoftheemployer.
SECTION19.Prohibitedreductionofpay.Whenthecompensationofthe
househelperbeforethepromulgationoftheseregulationsishigherthanthat
prescribedintheCodeandinthisissuance,thesameshallnotbereducedor
diminishedbytheemployeronoraftersaiddate.
SECTION20.Relationtootherlawsandagreements.NothinginthisRule
shall deprive a househelper of the right to seek higher wages, shorter
working hours and better working conditions than those prescribed herein,
nor justify an employer in reducing any benefit or privilege granted to the
househelper under existing laws, agreements or voluntary employer
practices with terms more favorable to the househelpers than those
prescribedinthisRule.
a. Definition,RuleXIII,Sec.1(b)

(b) The term "househelper" as used herein is synonymous to the term


"domestic servant" and shall refer to any person, whether male or female,
whorendersservicesinandabouttheemployer'shomeandwhichservices
are usually necessary or desirable for the maintenance and enjoyment
thereof,andministersexclusivelytothepersonalcomfortandenjoymentof
theemployer'sfamily.

b. Coverage,Art.141

ART. 141. Coverage. This Chapter shall apply to all persons rendering
servicesinhouseholdsforcompensation.
"Domesticorhouseholdservice"shallmeanserviceintheemployershome
whichisusuallynecessaryordesirableforthemaintenanceandenjoyment
thereofandincludesministeringtothepersonalcomfortandconvenienceof
the members of the employers household, including services of family
drivers.
c.

NonHouseholdWork,Art.145

ART. 145. Assignment to nonhousehold 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
agriculturalworkersasprescribedherein.

ApexMiningCo.NLRC,196SCRA251(1991)

e.
Conditions of Employment, Arts. 121152; Civil Code, Arts. 1689
1699

ART.151.Employmentcertification.Upontheseveranceofthehousehold
servicerelation,theemployershallgivethehousehelperawrittenstatement
of the nature and duration of the service and his or her efficiency and
conductashousehelper.
ART.152.Employmentrecord.Theemployermaykeepsuchrecordsashe
may deem necessary to reflect the actual terms and conditions of
employment of his househelper, which the latter shall authenticate by
signatureorthumbmarkuponrequestoftheemployer.
CIVILCODE
Art. 1689. Household service shall always be reasonably compensated. Any
stipulation that household service is without compensation shall be void.
Suchcompensationshallbeinadditiontothehousehelper'slodging,food,
andmedicalattendance.
Art.1690.Theheadofthefamilyshallfurnish,freeofcharge,tothehouse
helper,suitableandsanitaryquartersaswellasadequatefoodandmedical
attendance.
Art.1691.Ifthehousehelperisundertheageofeighteenyears,theheadof
the family shall give an opportunity to the house helper for at least
elementary education. The cost of such education shall be a part of the
househelper'scompensation,unlessthereisastipulationtothecontrary.
Art. 1692. No contract for household service shall last for more than two
years.However,suchcontractmayberenewedfromyeartoyear.
Art. 1693. The house helper's clothes shall be subject to stipulation.
However, any contract for household service shall be void if thereby the
househelpercannotaffordtoacquiresuitableclothing.
Art. 1694. The head of the family shall treat the house helper in ajust and
humanemanner.Innocaseshallphysicalviolencebeuseduponthehouse
helper.
Art.1695.Househelpershallnotberequiredtoworkmorethantenhoursa
day. Every house helper shall be allowed four days' vacation each month,
withpay.

Art.1696.Incaseofdeathofthehousehelper,theheadofthefamilyshall
bear the funeral expenses if the house helper has no relatives in the place
wheretheheadofthefamilylives,withsufficientmeanstherefor.
Art.1697.Iftheperiodforhouseholdserviceisfixedneithertheheadofthe
family nor the house helper may terminate the contract before the
expirationoftheterm,exceptforajustcause.Ifthehousehelperisunjustly
dismissed, he shall be paid the compensation already earned plus that for
fifteen days by way of indemnity. If the house helper leaves without
justifiable reason, he shall forfeit any salary due him and unpaid, for not
exceedingfifteendays.
Art.1698.Ifthedurationofthehouseholdserviceisnotdeterminedeither
bystipulationorbythenatureoftheservice,theheadofthefamilyorthe
househelpermaygivenoticetoputanendtotheservicerelation,according
tothefollowingrules:
(1)Ifthecompensationispaidbytheday,noticemaybegivenonany
daythattheserviceshallendatthecloseofthefollowingday;
(2)Ifthecompensationispaidbytheweek,noticemaybegiven,atthe
latest on the first business day of the week, that the service shall be
terminated at the end of the seventh day from the beginning of the
week;
(3)Ifthe compensation ispaid by the month, notice may begiven,at
thelatest,onthefifthdayofthemonth,thattheserviceshallceaseat
theendofthemonth.
Art.1699.Upontheextinguishmentoftheservicerelation,thehousehelper
maydemandfromtheheadofthefamilyawrittenstatementonthenature
and duration of the service and the efficiency and conduct of the house
helper.

3. Homeworkers

a. CoverageandRegulation,Arts.153155;DO5,DOLE,4Feb.1992,now
BookIII,RuleXIV

ART. 153. Regulation of industrial homeworkers. The employment of


industrial homeworkers and field personnel shall be regulated by the
government through the appropriateregulations issued by the Secretary of
Labor and Employment to ensure the general welfare and protection of
homeworkersandfieldpersonnelandtheindustriesemployingthem.
ART. 154. Regulations of Secretary of Labor. The regulations or
orderstobeissuedpursuanttothisChaptershallbedesignedto
assure the minimum terms and conditions of employment
applicable to the industrial homeworkers or field personnel
involved.
ART. 155. Distribution of homework. For purposes of this
Chapter, the "employer" of homeworkers includes any person,
naturalorartificialwho,forhisaccountorbenefit,oronbehalfof
anypersonresidingoutsidethecountry,directlyorindirectly,or
through an employee, agent contractor, subcontractor or any
otherperson:
(1) Delivers, or causes to be delivered, any goods, articles or
materials to be processed or fabricated in or about a home and
thereafter to be returned or to be disposed of or distributed in
accordancewithhisdirections;or
(2)Sellsanygoods,articlesormaterialstobeprocessedorfabricatedinor
about a home and then rebuys them after such processing or fabrication,
eitherbyhimselforthroughsomeotherperson.

RULE
EmploymentofHomeworkers

XIV

SECTION 1. General statement on coverage. This Rule shall apply to any


homeworkerwhoperformsinorabouthishomeanyprocessingofgoodsor
materials, in whole or in part, which have been furnished directly or
indirectlybyanemployerandthereaftertobereturnedtothelatter.
SECTION2.Definitions.AsusedinthisRule,thefollowingtermsshallhave
themeaningsindicatedhereunder:

(a) "Home" means any room, house, apartment, or other premises used
regularly, in whole or in part, as a dwelling place, except those situated
withinthepremisesorcompoundofanemployer,contractor,andthework
performedthereinisundertheactiveorpersonalsupervisionby,orfor,the
latter.
(b) "Employer" means any natural or artificial person who, for his own
account or benefit, or on behalf of any person residing outside the
Philippines, directly or indirectly, or through any employee, agent,
contractor,subcontractor;oranyotherperson:
(1)Deliversorcausestobedeliveredanygoodsorarticlestobeprocessedin
or about a home and thereafter to be returned or to be disposed of or
distributedinaccordancewithhisdirection;or
(2)Sellsanygoodsorarticlesforthepurposeofhavingsuchgoodsorarticles
processedinoraboutahomeandthenrepurchasesthemhimselforthrough
anotheraftersuchprocessing.
(c)"Contractor"or"subcontractor"meansanypersonwho,fortheaccount
or benefit of an employer, delivers or caused to be delivered to a
homeworker goods or articles to be processed in or about his home and
thereaftertobereturned,disposedofordistributedinaccordancewiththe
directionoftheemployer.
(d) "Processing" means manufacturing, fabricating, finishing, repairing,
altering,packing,wrappingorhandlinganymaterial.
SECTION 3. Payment for work. (a) Immediately upon receipt of the
finished goods or articles, the employer shall pay the homeworker or the
contractor or subcontractor, as the case may be, for the work performed;
Provided, However, that where payment is made to a contractor or sub
contractor, the homeworker shall be paid within the week after the
contractor or subcontractor has collected the goods or articles from the
homeworkers.
(b)TheSecretaryofLaborandEmploymentshallfromtimetotimeestablish
the standard minimum piece or output rate in appropriate orders for the
particularworkorprocessingtobeperformedbythehomeworkers.

SECTION4.Deductions.Noemployee,contractor,orsubcontractorshall
make any deduction from the homeworker's earnings for the value of
materials which have been lost, destroyed, soiled or otherwise damaged
unlessthefollowingconditionsaremet:
(a)Thehomeworkerconcernedisclearlyshowntoberesponsiblefortheloss
ordamage;
(b) The employee is given reasonable opportunity to show cause why
deductionsshouldnotbemade;
(c)Theamountofsuchdeductionisfairandreasonableandshallnotexceed
theactuallossordamages;and
(d)Thedeductionismadeatsuchratethattheamountdeducteddoesnot
exceed20%ofthehomeworker'searningsinaweek.
SECTION5.Conditionsforpaymentofwork.(a)Theemployermayrequire
thehomeworkertoredoworkwhichhasbeenimproperlyexecutedwithout
havingtopaythestipulatedratemorethanonce.
(b) An employer, contractor, or subcontractor need not pay the
homeworkerforanyworkwhichhasbeendoneongoodsandarticleswhich
havebeenreturnedforreasonsattributabletothefaultofthehomeworker.
SECTION6.Disagreementbetweenhomeworkersandemployer.Incases
ofdisagreementbetweenthehomeworkerandtheemployer,contractoror
subcontractor on matters falling under Section 4 (a), 5 and 6 of this Rule,
eitherpartymayreferthecasetotheRegionalOfficehavingjurisdictionover
the homeworker. The Regional Office shall decide the case within ten (10)
working days from receipt of the case. Its decision shall be final and
unappealable.
SECTION 7. Liability of employer and contractor. Whenever an employer
shall contract with another for the performance of the employer's work, it
shall be the duty of such employer to provide in such contract that the
employeesorhomeworkersofthecontractorandthelatter'ssubcontractor
shallbepaidinaccordancewiththeprovisionsofthisRule.Intheeventthat
such contractor or subcontractor fails to pay the wages or earnings of his
employeesorhomeworkersasspecifiedinthisRule,suchemployershallbe

jointly and severally liable with the contractor or subcontractor to the


workersofthelatter,totheextentthatsuchworkisperformedundersuch
contract, in the same manner as if the employees or homeworkers were
directlyengagedbytheemployer.
b.

c.

d.

f.

g.

h.

Definition,DO5,Sec.2,DO5
Registration,Secs.46
ConditionsofEmployment/Deductions,Secs.69
JointandSeveralLiabilityofEmployer/Contractor,Sec.11
Prohibitions,Sec.13
Enforcement,Sec.10

NOTES:
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K. Mental,DentalandOccupationalSafety

Reference: Art. 156165; Omnibus Rules, Book IV, Rule I, Secs. 110;
RuleII,Secs.1!0

1. Coverage,RuleI,Sec.1

2. FirstAidTreatment,Art.156

3. EmergencyMedicalandDentalServices

a. WhenRequired,Art.157

b. WhenNotRequired,Art.158

4. Employerassistance,Art.161

5. OccupationalSafetyandHealthStandards,Trainingof
Supervisor/Technician

a. WhenRequired,RuleII,Secs.5(a)(d)

b. WhenNotRequired,RuleII,Sec.5(e)

6. Enforcement/DOLEObligations,Arts.162165

Note: Arts. 166208: repealed by SSS Law of 1997 (RA 1161, as


amended); Re: Art. 209, see National Health Insurance act of 1995 (RA
7875);BookIV,RuleII,Sec.8

L.EmployeeClassification

1. Coverage,Art.278

2. EmployerRecognition

PhilippineFederationofCreditCooperatives,Inc.v.NLRC,300SCRA72
(1998)

Pangilinanv.GeneralMillingcorp.,434SCRA159(2004)

3. EmployerDetermination/Designation

DeLeonv.NLRC,176SCRA615(1989)

Violetav.NLRC,280SCRA520(1997)

SanMiguelCorporationv.NLRC,297SCRA277(1998)

4. ManagementPrerogative

ManilaElectricCo.v.NLRC,263SCRA531(1996)

PAL,Inc.v.Pascua,409SCRA195(2003)

CocacolaBottlersPhil.,Inc.SalesForceUnionPTGWOBALAISv.Coca
colaBottlersPhil.,Inc.,GRNo.155651,464SCRA507(2005)

5. KindsofEmployee

a. RegularEmployees,art.280,1stpar.;280,2ndpar.;281,lastsentence;
75(d);Omnibusrules,BookVI,Rule1,Secs.5(a),(b)and6.

1)Type

Pangilinanv.GeneralMillingCorporation.,434SCRA159(2004)

2)NatureofWork

Perpetual Help Credit Corp., Inc. v. Faburada, et al., 366 SCRA 693 (
2001)

Magsalin v. National Organization of Working Men, 403 SCRA 199


(2003)

HaciendaFatimav.NationalFederationofSugarcaneWorkersFoodand
GeneralTrade,396SCRA518(2003)

PentagonInternationalShipping,Inc.v.Adelantar,235SCRA342(2004)

Lopez v. Metropolitan Waterworks and Sewerage System, 462 SCRA


428(2005)

3)ExtendedPeriod

AndonElectricco.,Inc.v.NLRC,308SCRA340(1999)

4)RepeatedRenewalofContract

Maraguinotv.NLRC,284SCRA539(1998)

UniversalPlasticCorp.v.Catapang,473SCRA189(2005)

b.
ProjectEmployee,art.280,1stpar.

1)Definition

Imbuidov.NLRC,329SCRA357(2000)

AssociationofTradeUnionv.Comm.Abella,323SCRA50(2005)

2)ProjectEmployees

SandovalShipyards,Inc.v.NLRC,136SCRA674(1985)

Villav.NLRC,284SCRA105(1998)

Chuav.CourtofAppeals,440SCRA121(2004)

3)
WorkpoolEmployees

AguilarCorp.v.NLRC,269SCRA596(1997)

Maraguinotv.NLRC,supra

Casual,Art.280,2ndpar.;Omnibusrules,BookVI,Rule1,Sec.5(b)

1)NatureofWork

A.M.OretaandCo.Inc.v.NLRC,176SCRA218(1989)
2)OneYearService

Kimberlyv.Drilon,185SCRA190(1990)

Integrated Contractor and Plumbing Works, Inc. v. Court of Appeals,


464SCRA544(2005)

SanMiguelCorp.v.Abella,supra

c.
FixedTerm

BrentSchoolv.Zamora,181SCRA702(1990)

Palomaresv.NLRC,277SCRA439(1997)

PhilipsSemiconductoretc.v.Fadriquela,422SCRA408(2004)

d.
Seasonal

Phil.TobaccoFluecuring&RedryingCorp.v.NLRC,300SCRA37(1998)

HaciendaBinov.Cuenca,456SCRA300(2005)

e.
Probationary

1)Definition

PhilippineFederationofCreditCooperatives,Inc.v.NLRC,supra

CebuMarineBeachResortv.NLRC,414SCRA173(2003)

2)EmployerRighttoSetPeriod/Obligation

OrientExpressPlacementPhilippinesv.NLRC,273SCRA2561997)

3)Duration/Exception

APrimeSecurityServices,Inv.V.NLRC,322SCRA283(2000)

MitsubishiMotorsv.NLRC,226SCRA417(1993)

4)CriteriaRegularization

Alcirav.NLRC,431SCRA508(2004)

5)ExtensionofContract

MariwasaManufacturing,Inc.v.Leogardo,169SCRA465(1989)

6)AbsorbedEmployees

CebuStevedoringCo.Inc.v.RegionalDirector,168SCRA315(1988)

7)RuleonPrivateSchoolTeachers

Escorpizov.Univ.ofBaguio,306SCRA497(1999)

LaConsolacionCollegev.NLRC,366SCRA226(2001)

ChiangKaiSheckCollegev.CourtofAppeals,437SCRA171(2004)

I. TerminationofEmployment

1.Coverage,Art.278;BookVI,Rule1,Sec.1

2.SecurityofTenure,Art279;277(b)

a.
Nature/Rationale

LlosaTanv.SilahisInternatioinalHotel,181SCRA738(1990)

Sonzav.ABSCBNBroadcastingCorp.,431SCRA381(2004)

Metro Eye Security, Inc. v. Julie V. Solsona, GR No. 167637, Sept. 28,
2007

b.
Coverage

Labajov.Alejandro,165SCRA747(1988)

SkihworldManagementandmarketingCorporationv.NLRC,186SCRA
465(1990)

InterorientMaritimeEnterprisesInc.v.NLRC,235SCRA268(1994)

c.
ManagementPrerogative

PhilippineAmericanLife&GeneralInsuranceCo.v.Gramaze,442
SCRA274(2004)

d.
RequisitesforLawfulDismissal

PerpetualHelpCreditCorp.,Inc.v.Faburada,supra

e.
BurdenofProof

AzcorManufacturingv.NLRC,303SCRA26(1999)

Chavezv.NLRC,supra

f.
MeasureofPenalty

Farrolv.CourtofAppeals,435SCRA543(2000)

Valiaov.CourtofAppeals,435SCRA543(2004)

Etcubanv.SulpicioLines,Inc.448SCRA516(2005)

g.
Factors

AssociatedLaborUnionv.NLRC,302SCRA708(1999)

PhilippineLongdistanceTelephoneC.Inc.v.NLRC,303SCRA9(1999)

3.TerminationofEmploymentbyEmployee

a.
Resignation

CheniverDecoPrintv.NLRC,325SCRA758(2000)

ChinaBankingCorp.v.Borromeo,supra

WilliHahnEnterprisesv.Maghuyo,447SCRA349(2004)

BMGRecords(Phils.),Inc.etal.v.AidaC.Aparecio,etal.,GR153290,
Sept.5,2007

1)JustCauses,Art.285(b)

2)WithoutJustCauseRequisites,Art.285(a);Const.Art.III,Sec.18(2)

Pascuav.NLRC,287SCRA554(1998)

Azcorv.NLRC,supra

Phil.WirelessInc.v.NLRC,310SCRA653(1999)

APrimeSecurityServices,Inc.v.NLRC,supra

b. PerformanceofMilitaryorCivicduty,Art.286,BookVI,RuleI,Sec.12

4.TerminationofEmploymentbyEmployer

a.
BasisofRightandRequirements,Arts.282284;277(b)

1)Basis

PLDTv.Tolentino,438SCRA555(2004)

2) SubstantiveandProceduralDueProcess

PhilippineNationalBankv.Cabanag,460SCRA514(2005)

b. JustCausesSubstantiveDueProcess

1)
SeriousMisconduct/WillfulDisobedience(Insubordination)

Valiaov.CourtofAppeals,supra

VillamorGolfClubv.Phil,472SCRA36(2005)

CocaColaBottlers,Phil.,Inc.v.KapisananngMalayangManggagawasa
CocaCola,452SCRA480(2005)

RTransportCorp.v.Ejaneira,428SCRA725(2004)

MicroSalesOperationNetworkv.NLRC,472SCRA328(2005)

2)
GrossandHabitualNeglectofDuties

CebuFilveneerCorporationv.NLRC,286SCRA556(1998)

Reyesv.MaximsTeaHouse,398SCRA288(2003)

Chuav.NLRC,453SCRA244(2005)

3)
FraudorWillfulBreachofTrust

Santosv.SanMiguelCorp.,399SCRA172(2003)

DelaCruz,NLRC,416SCRA226(2003)

Phil.NationalConstructionCorp.v.Matias,395SCRA720(2003)

4)
CommissionofCrime,Art.282(d)

SampaguitaGarmentsCorporationv.NLRC,233SCRA260(1994)

5)
Analogous,Art.282(e)

CathedralSchoolofTechnologyv.NLRC,214SCRA551,559(1992)

6)
OthersJustCausesClaimedbyEmployer

a)
Abandonment

NuevaEcijaElectricCooperativev.NLRC,461SCRA169(2005)

Chavezv.NLRC,supra

FlorenHotelv.NLRC,456SCRA128(2005)

b)

c)

d)

e)

f)

g)

h)

i)

j)

CourtesyResignation

Batongbacalv.AssociatedBank,168SCRA600(1988)
ChangeofOwnership
Manlimosv.NLRC,242SCRA145(1995)
HabitualAbsenteeism
UnionMotorCorp.v.NLRC,445SCRA683(2004)
FixedTermEmployment
Magsalinv.NationalOrganizationofWorkingMen,supra
Pastoffenses
LaCarlotaPlantersAssn.v.NLRC,298SCRA252(1998)
Ramoranv.JardineCMG,Inc.326SCRA208(2000)

HabitualInfractions
Gustilov.WyethPhil.,Inc.,440SCRA67(2004)
Immorality
Santosv.NLRC,287SCRA117(1998)
ConvictionofCrime
SampaguitaGarmentsCorp.v.NLRC,233SCRA2601994)
QualificationRequirements
Lanzaderasv.AmethystSecurity&GeneralServices,Inc.,supra

7) ConstructiveDismissal

PhilippineAmericanLifev.Gramaje,442SCRA274(2003)

Dinglasanv.Atienza,433SCRA263(2004)

Dusit Hotel Nikko v. National Union in Hotel, Restaurant and Allied


Industires,466SCRA374(2005)

AngelinaFranciscov.NLRC,etal.,supra

8) Transfer

OSSSecurityandAlliedServicesInc.v.NLRC,325SCRA157(2000)

Lanzaderasv.AmethystSecurityandGeneralServices,Inc.,supra

Mendozav,RuralBank,etc.,433SCRA756(2004)

9) Promotion

Phil. Telegraph & Telephone Corp. v. Court of Appeals, 412


SCRA263(2003)

10) PreventiveSuspension

PhilippineAirlines,Inc.v.NLRC,292SCRA40(1998)

11) ResidencyTraining

Felixv.Buenaseda,240SCRA139(1995)

c. SubstantiveRequirementsBusinessRelatedCauses,Art.283

1)
Basis

EdgeApparelInc.v.NLRC,286SCRA302(1998)

2)
BusinessRelatedorAuthorizedCauses

a)InstallationofLaborSavingDevices,Art.283

ComplexElectronicsEmployeesAssn.v.NLRC,310SCRA403(1999)

b)RetrenchmenttoPreventLosses,Art.283

AsianAlcoholCorp.v.NLRC,305SCRA415(1999)

NDCGuthriePlantations,Inc.v.NLRC,362SCRA416.(2001)

Composite Enterprises, Inc. v. Emilio M. Caparoso, et al., GR No.


159919,Aug.8,2007

c)Redundancy,Art.283

Asufrinv.SanMiguelCorp.,425SCRA270(2004)

GoldenTreadKnittingIndustries,Inc.v.NLRC,304SCRA568

LopezSugarCorp.v.Franco,458SCRA515(2005)

d)ClosureofBusiness,Art.283

Mac Adams Metal Engineering Workers UnionIndependent v. Mac


AdamsMetalEngineering,414SCRA411(2003)

SSSv.Hon.Chaves,440SCRA269(2004)

MESHURN Corporation v. MESHURN Workers UnionFSM, 448 SCRA


41(2005)

e)TemporaryClosure,Art.286

Valdezv.NLRC,286SCRA87(1998)

3)
Disease,Art284

VicenteSyv.CourtofAppeals,supra

d. Procedural Requirements, Art. 277 (b); Book VI, Rule I, Secs. 13


OmnibusRules

1) InGeneral/LiabilityforNonCompliancewithProceduralRequirements

2)

3)

4)

a)

b)

5)

6)

7)

Serranov.NLRC,323SCRA445(2000)
Santosv.SanMiguelCorp.,supra
Agabonv.NLRC,supra
RighttoCounsel
Salawv.NLRC,202SCRA7,1215(1991)
Notice
Agabonv.NLRC,supra
Caingatv.NLRC,453SCRA142(2005)
Hearing
Hearing
Permex,Inc.v.NLRC,323SCRA121(2000)
Arboledav.NLRC,303SCRA39(1999)
UseofPositionPaper
ShoppesManila,Inc.v.NLRC,419SCRA354(2004)
Decision/AwardConst.,Art.VIII,Sec.14
PepsiColaProductsPhil.,Inc.v.CourtofAppeals,443SCRA580(2004)
BurdenofProof
EquitablePCIBankv.Caguioa,466SCRA658(2005)
DegreeofProof/SubstantialEvidence
PhiltreadTire&TubberCorp.v.Vicente,441SCRA574(2004)
Etcubanv.SulpicioLines,Inc.,supra

8)
Prescription

Salvadorv.Phil.MiningserviceCorp.,395SCRA729(2003)

9)
DismissalofCase,PurelyonTechnicalGround

Quintanov.NLRC,446SCRA195(2004)

10)
CriminalCases

Quiambaov.NLRC,254SCRA211(1996)

5. Reliefs/RemediesinIllegalDismissal,Art.279;223

a. InGeneral;TwinRemedies

NuevaEcijaElectricCooperativev.NLRC,supra

Mt.CarmelCollegev.JocelynResuena,etal.,GRNo.173076,October
10,2007

Lorenzo Ma. D.G. Aguilar v. Burger Machine Holdings Corp., et al., GR


172062,Feb.21,2007

1) Reinstatement

a)Definition

PNOCEDC,etal.v.Abella,448SCRA549(2005)

PheschemIndustrialCorp.v.Moldez,458SCRA339(2005)

b)EffectofFailuretoAskRelief

PheschemIndustrialCorp.v.Moldez,supra

c) Exceptions

i) ClosureofBusiness

ii) EconomicBusinessConditions

Union of Supervisors (RB) NATU, etc. v. Sec. of Labor, 128 SCRA 442
(1984)

iii) EmployeesUnsuitability

DivineWordHighSchoolv.NLRC,143SCRA346(1986)

iv) EmployeesRetirement/Overage

Espejov.NLRC,255SCRA430(1996)

v) AntipathyandAntagonismStrainedRelations

AcesiteCorp.v.NLRC,449SCRA360(2005)

BPIEmployeesUnionv.BPI,454SCRA357(2005)

Sagumv.CourtofAppeals,459SCRA223(2005)

vi) NotFeasible

Bustamantev.NLRC,265SCRA1(1996)

c) OffertoReinstate

Ranarav.NLRC,212SCRA631(1992)

2) Backwages

a)
EffectofFailuretoClaim

DeLaCruzv.NLRC,299SCRA1(1998)

b)
EffectofFailuretoOrder

AuroraLandetc.v.NLRC,212SCRA48(1997)

St.MichaelsInst.v.Santos,371SCRA383(2001)

b)Computation

MercuryDrugCo.Inc.v.CIR,56SCRA694(1974)

Bustamantev.NLRC,supra

Torresv.NLRC,330SCRA311(2000)

KayProducts,Inc.v.CA464SCRA544(2005)

Standard Electric Manufacturing Corp. v. Standard Electric Employees


Union,468SCRA316(2005)

BPIEmployeesUnionv.BPI,supra

c)FringeBenefit

AuroraLandetc.v.NLRC,supra

b.
Damages

CollegiodeSanJuandeLetranCalambav.Villas,399SCRA550(2003)

Tolosav.NLRC,401SCRA391(2003)

Maguilingv.Phil.TuberculosisSociety,Inc.450SCRA465(2005)

AcesiteCorpv.NLRC,supra

Sagumv.CourtofAppeals,459SCRA223(2005)

CentralLuzonConferencev.CA,466SCRA711(04)

c. SeparationPay

1)
WhenAsAlternative

CocaColaBottlersPhils.Inc.v.Vital,438SCRA278(2004)

NationalFederationofLaborv.CourtofAppeals,440SCRA604
(2004)

EtcubanJr.v.SulpicioLines,Inc.,supra

Compositeenterprises,Inc.v.EmilioM.Caparoso,etal.,supra

2)
Computation/Rationale

BusinessDayInformationSystemsandServices,Inc.v.NLRC,221SCRA
9(1993)

Millaresv.NLRC,305SCRA500(1999)

3) EffectofReceipt

Arinov.NLRC,290SCRA489(1998)

c.
FinancialAssistance

1) WhenAllowed

PhilippineLongDistanceTelephoneCo.v.NLRC,164SCRA671(1988)

Pinerov.NLRC,437SCRA112(2004)

2) WhenNotAllowed

Phil.ConstructionCorp.v.NLRC,170SCRA207(1989)

Chuav.NLRC,218SCRA545(1993)

e. Indemnity

ArmsTaxiv.NLRC,supra

Serranov.NLRC,supra

f. LiabilityofCorporateOfficers

AcesiteCorp.v.NLRC,supra

J. Retirement,Art.287;BookVI,RuleII,OmnibusRules;RANo.7641;RA
No.8558(1998);LaborAdvisoryonRetirementPay(Oct.1999)

1. Retirement

a. TypesofRetirementPlan

PALv.AirlinePilotsAssociationofthePhil.,373SCRA302(2002)

Naguitv.NLRC,408SCRA617(2003)

Sta.CatalinaCollegev.NLRC,416SCRA233(2003)

Gerlachv.ReutersLtd.,Phil.448SCRA535(2005)

1)Basis

Gamogamov.PNOCshippingandTransportCorp.,381SCRA742(2002)

2)Interpretation

Lopezv.NationalSteelCorp.,423SCRA109(2004)

Solomon v. Association of International Shipping Lines, Inc., 457 SCRA


254(2005)

4)Eligibility

Brionv.SouthPhil.UnionMissionoftheSeventhDayAdventistChurch,
307SCRA497(1999)

REMINDERS:

1. Voluntaryrecitationwillbegradedgenerously.Theprofessorhowever
reservestherighttocallonstudentsforrecitation.
2. The 20% rule on absences will be strictly observed. Three times of
tardinesswillbeconsideredabsent.Allthosewhocomebetween15to30
minutesaftertheclasswillbemarkedlate;after30mins,absent.
3. Nomakeupmidtermexaminationwillbegiven.

REQUIREMENT:

Attendance/Recitation/AssignedWork
30%
MidTermExamination

30%
FinalExamination

30%