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salus populi est suprema lex.” (Calalang vs. Williams, 70


Key Notes on LABOR Phil. 726.)

STANDARDS and While social justice is the raison d'etre of labor laws, their
basis or foundation is the police power of the State.

related labor cases Police Power – is the power of the government to enact laws,
within constitutional limits, to promote the order, safety,
health, morals and general welfare of society.
Art. 1. Name of Decree. This Decree shall be known as the
"Labor Code of the Philippines". It is settled that state legislatures may enact laws for the
protection of the safety and health of employees as an exercise
of police power.
Presidential Decree No. 442 – otherwise known as the
“Labor Code of the Philippines. Art. 2. Date of effectivity. This Code shall take effect six (6)
months after its promulgation.
Social legislation – include laws that provide particular kinds
of protection or benefits to society or segments thereof in May 1, 1974 – PD No. 442 was signed into law.
furtherance of social justice.
November 01, 1974 – effectivity date of the Labor Code.
Labor Legislation – consists of statutes, regulations and
jurisprudence governing the relations between capital and Related Laws: Civil Code, RPC, Special Laws
labor, by providing for employment standards and a legal
framework for negotiating, adjusting and administering those Art. 3. Declaration of basic policy. The State shall afford
standards and other incidents of employment. protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed and
Classifications of Labor Legislation regulate the relations between workers and employers. The
State shall assure the rights of workers to self-
1. Labor standards law – is that which sets out the organization, collective bargaining, security of tenure, and
minimum terms, conditions and benefits of just and humane conditions of work.
employment that employers must provide or comply
with and to which employees are entitled as a matter
of legal right. The Basic Policy of the Labor Code (social economic goals)
1. Protection to labor;
As defined more specifically by jurisprudence, “are the 2. Promote full employment;
minimum requirements prescribed by existing laws, rules 3. Ensure equal work opportunities regardless of sex,
and regulations relating to wages, hours of work, cost-of- race or creed, and
living allowance, and other monetary welfare benefits, 4. Regulate the relations between workers and
including occupational safety, and health standards.” employers
(Maternity Children's Hospital vs. Secretary of Labor, GR
No. 78909, June 30, 1989.) Both sectors (employees and employers) need each other.
They are interdependent – one is inutile without the other.
2. Labor relations law – defines the status, rights and The basic policy is to balance or to coordinate the rights
duties, and the institutional mechanisms, that govern and interests of both workers and employers.
the individual and collective interactions of
employers, employees or their representatives. Rights of Workers Under Art. 3 of the Labor Code
1. Self-organization;
Labor - is understood as physical toil although it does not 2. Collective bargaining;
necessarily exclude the application of skill, thus there is 3. Security of tenure; and
skilled and unskilled labor. 4. Just and humane conditions of work

Distinction: Labor law and social legislation Constitutional Basis of the Labor Code
Labor laws- directly affect employment
Social legislation- governs effects of Employment.  Art. II, Sec. 18 - the 1987 Constitution declares as a
- are social legislation state policy: “The State affirms labor as a primary
- not all SL are Labor Laws social economic force. It shall protect the rights of
workers and promote their welfare.”
Social Justice – is “neither communism, nor despotism, nor  Art. III, Sec. 18, par. 2 – no involuntary servitude
atomism nor anarchy, but the humanization of laws and the  Art. IX-B, Sec. 2, Par. 1 – CSC embraces all
equalization of social and economic forces by the State so that branches... agencies of government, including
justice in its rational and objectively secular conception may at GOCCs with original charters.
least be approximated. Social justice means the promotion of  Art. IX-B, Sec. 2, par. 3 – No officer or employee
the welfare of all the people, the adoption by the Government shall be removed or suspended except for cause
of measures calculated to insure economic stability of all the provided by law
component elements of society, through the maintenance of a  Art. IX-B, Sec. 5 – standardization of compensation
proper economic and social equilibrium in the interrelations of of government officials and employees.
the members of the community, constitutionally, through the  Art. XII, Sec. 6 – the right to own, establish
adoption of measures legally justifiable, or extra- economic enterprises subject to the duty of the State
constitutionally, the exercise of powers underlying the to promote distributive justice
existence of all governments on the time-honored principle of  Art. XII, Sec. 12 – preferential use of Filipino labor

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 Art. XII, Sec. 14, par. 2 – practice of all professions


shall be limited to Filipinos  Right to Return of Investments (ROI) – the
 Art. XII, Sec. 16 – Congress shall not provide for the employer has the right to recover his investments and
formation, organization, or regulation of private to make profit. The Constitution provides that the
corporations State shall regulate the relations between workers and
 Art. XIII, Sec. 1 – protect and enhance right to employers, recognizing the right of labor to its just
human dignity, reduce social, economic and political share... and the right of enterprises to reasonable
irregularities, and remove cultural inequalities by returns on investments, and to expansion and growth.
equitably diffusing wealth and political power for the
common good  The Right to Prescribe Rules – employers have the
 Art. XIII, Sec. 2 – promotion of social justice shall right to make reasonable rules and regulations for the
include the commitment to create economic government of their employees, and when
opportunities employees, with knowledge of an established rule,
 Art. XIII, Sec. 3, par. 1 – protection to labor, local enter the service, the rule becomes part of the
and overseas, organized and organized, and promote contract of employment.
full employment and equality of employment
opportunities for all  The Right to Select Employees – an employer has a
 Art. XIII, Sec. 3, par. 2 – guarantee the rights of all right to select his employees and to decide when to
workers: engage them. The State has no right to interfere in a
(1) self-organization; private employment; it cannot interfere with the
(2) collective bargaining and negotiations; liberty of contract with respect to labor except in the
(3) peaceful concerted activities, including the right exercise of the police power. If the employer can
to strike in accordance with law; compel the employee to work against the latter's will,
(4) security of tenure; this is servitude. If the employee can compel the
(5) humane conditions of work; employer to give him work against the employer's
(6) living wage; will, this is oppression.
(7) participate in policy and decision-making
processes affecting their rights and benefits  Right to Transfer or Discharge Employees – the
 Art. XIII, Sec. 3, par. 3 – shared responsibility: employer has the perfect right to transfer, reduce or
voluntary modes in settling disputes lay off personnel in order to minimize expenses and
 Art. XIII, Sec. 3, par. 4 – regulate the relations to insure the stability of the business, and even to
between workers and employers, recognizing the close the business, provided the transfer or dismissal
right of labor to its just share in the fruits of is not abused but is done in good faith and is due to
production and the right of enterprises to reasonable causes beyond control. To hold otherwise would be
returns on investments and to expansion and growth. oppressive and inhuman.
(Constitutional balance between the rights of
workers and employers) Art. 5. Rules and regulations. The Department of Labor
and other government agencies charged with the
Job is a property, and no person shall be deprived of life, administration and enforcement of this Code or any of its
liberty, and property without due process. parts shall promulgate the necessary implementing rules
and regulations. Such rules and regulations shall become
Through distributive justice, labor must receive what is due effective fifteen (15) days after announcement of their
them for the return of investment. adoption in newspapers of general circulation.

Art. 4. Construction in favor of labor. The Labor Code itself in Art. 5 vests the Department of Labor
and Employment with rule-making powers in the enforcement
All doubts in the implementation and thereof.
interpretation of the provisions of this Code,
including its implementing rules and regulations, ART. 6. Applicability. - All rights and benefits granted to
shall be resolved in favor of labor. workers under this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether
The Supreme Court adopts the liberal approach which favors agricultural or non-agricultural. (As amended by
the exercise of labor rights. Presidential Decree No. 570-A, November 1, 1974).
The labor law is liberally construed in favor of the workers
and strictly construed against the employers.
The Code is applicable to all employees in private sector and
Reason for according greater protection to employees government corporations without original charter.

In the matter of employement bargaining, there is no doubt Under the present state of the law, the test in determining
that the employer stands on higher footing than the employee. whether a government-owned or controlled corporation is
Those who have less in life should have more in law. subject to the Civil Service Law is the manner of its creation.
Management Rights Government corporations created by special (original
charter) from Congress are subject to Civil Service rules,
It should not be supposed that every labor dispute will be while those incorporated under the general Corporation Law
automatically decided in favor of labor. Management has also are covered by the Labor Code.
its own rights which are entitled to respect and enforcement in
the interest of simple fair play. The government-owned-and-controlled corporations “with
original charter” refer to corporations chartered by special law
The law, in protecting the rights of the laborer, authorizes as distinguished from corporation organized under our general
neither oppression nor self-destruction of the employer. incorporation statute, the Corporation Code.

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Secretary of Labor and Employment or his duly authorized


While government employees are allowed under the 1987 representatives issued pursuant to the authority granted under
Constitution to organize and join union of their choice, there this Article, and no inferior court or entity shall issue
is no law permitting them to strike. temporary or permanent injunction or restraining order or
otherwise assume jurisdiction over any case involving the
enforcement orders issued in accordance with this Article.

Any government employee found guilty of violation of, or


abuse of authority, under this Article shall, after appropriate
Art. 128. Visitorial and enforcement power. administrative investigation, be subject to summary dismissal
from the service.
Visitorial Power of the Secretary of Labor and
Employment or his duly authorized representatives, Art. 129. Recovery of wages, simple money claims and
including labor regulation officers other benefits.
1. Access to employer’s records and premises at any
time of the day or night whenever work is being The Regional Director of the Department of Labor and
undertaken therein; Employment or any of the duly authorized hearing officers
2. To copy from employer's records; of the Department is empowered, through summary
3. To question any employee proceeding and after due notice, to hear and decide:
4. To investigate any fact, condition or matter which
1. any matter involving the recovery of wages and other
may be necessary to determine violations or which
monetary claims and benefits, including legal
may aid in the enforcement of this Code
interest, provided that the aggregate money claims of
each employee or househelper does not exceed Five
Enforcement Power of the Secretary of Labor and
thousand pesos (P5,000.00).
Employment or his duly authorized representatives
2. owing to an employee or person employed in
1. To to issue compliance orders to give effect to the
domestic or household service or househelper under
labor standards provisions of this Code and other
this Code
labor legislation based on the findings of labor
3. arising from employer-employee relations
employment and enforcement officers or industrial
4. complaint does not include a claim for reinstatement;
safety engineers made in the course of inspection;
and
2. To issue writs of execution to the appropriate
authority for the enforcement of their orders; The Regional Director or hearing officer shall decide or
3. The Secretary of Labor and Employment to order resolve the complaint within thirty (30) calendar days from the
stoppage of work or suspension of operations of any date of the filing of the same.
unit or department of an establishment when non-
compliance with the law or implementing rules and Any sum thus recovered on behalf of any employee or
regulations poses grave and imminent danger to the househelper pursuant to this Article shall be held in a special
health and safety of workers in the workplace. deposit account by, and shall be paid on order of, the (1)
4. The Secretary of Labor and Employment may require Secretary of Labor and Employment or (2) the Regional
employers to keep and maintain such employment Director or (3) directly to the employee or househelper
records as may be necessary in aid of his visitorial concerned.
and enforcement powers under this Code.
Any such sum not paid to the employee or househelper
It is the right of employer to ask authority from visiting labor because he cannot be located after diligent and reasonable
personnel. Failure may result to a waiver. effort to locate him within a period of three (3) years, shall be
held as a special fund of the Department of Labor and
Employer's remedy to contest the findings of the Secretary of Employment to be used exclusively for the amelioration and
Labor and Employment or his duly authorized representatives benefit of workers.
is the presentation of documentary evidence, i.e. payrolls, SSS
payment receipts. Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be appealed
on the same grounds provided in Article 223 of this Code,
An order issued by the duly authorized representative of the
Secretary of Labor and Employment under this Article may be within five (5) calendar days from receipt of a copy of said
appealed to the latter. In case said order involves a monetary decision or resolution, to the National Labor Relations
award, an appeal by the employer may be perfected only upon Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading
the posting of a cash or surety bond issued by a reputable
required or allowed under its rules.
bonding company duly accredited by the Secretary of Labor
and Employment in the amount equivalent to the monetary The Secretary of Labor and Employment or his duly
award in the order appealed from. authorized representative may supervise the payment of
unpaid wages and other monetary claims and benefits,
Within twenty-four hours, a hearing shall be conducted to including legal interest, found owing to any employee or
determine whether an order for the stoppage of work or househelper under this Code. (As amended by Section 2,
suspension of operations shall be lifted or not. In case the Republic Act No. 6715, March 21, 1989)
violation is attributable to the fault of the employer, he shall
pay the employees concerned their salaries or wages during Art. 217. Jurisdiction of the Labor Arbiters and the
the period of such stoppage of work or suspension of Commission.
operation.
The Labor Arbiters shall have original and exclusive
It shall be unlawful for any person or entity to obstruct, jurisdiction to hear and decide, within thirty (30) calendar
impede, delay or otherwise render ineffective the orders of the days after the submission of the case by the parties for
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decision without extension the following cases involving all mentioned in Article 13(b) will constitute recruitment
workers, whether agricultural or non-agricultural: and placement even if only one prospective worker is
 Unfair labor practice cases; involved. In that case, a license or authority from
 Termination disputes; POEA is needed.
 If accompanied with a claim for reinstatement, those License – means a document issued by the Department of
cases that workers may file involving wages, rates of
Labor authorizing a person or entity to operate a private
pay, hours of work and other terms and conditions of employment agency.
employment;
 Claims for actual, moral, exemplary and other forms
of damages arising from the employer-employee
relations; Authority – a document issued by the Department of Labor
 Cases arising from any violation of Article 264 of this authorizing a person or association to engage in recruitment
Code, including questions involving the legality of and placement activities as a private recruitment entity.
strikes and lockouts; and Art. 18. Ban on direct-hiring
 Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other General Rule:
claims arising from employer-employee relations,
including those of persons in domestic or household No employer may hire a Filipino worker for overseas
service, involving an amount exceeding five thousand employment.
pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement. Exception:
The Commission shall have exclusive appellate jurisdiction  Through the Boards and entities authorized by the
over all cases decided by Labor Arbiters. Secretary of Labor
Cases arising from the interpretation or implementation of  Direct-hiring by members of the diplomatic corps,
collective bargaining agreements and those arising from the international organizations and such other employers
interpretation or enforcement of company personnel policies as may be allowed by the Secretary of Labor
shall be disposed of by the Labor Arbiter by referring the same
to the grievance machinery and voluntary arbitration as may
be provided in said agreements. REPUBLIC ACT NO. 8042
Stages in the hearing of cases Migrant Workers and Overseas Filipinos Act of 1995
1. Labor arbiter; and may be appealed to
2. the National Labor Relations Commission (NLRC); An act to institute the policies of overseas employment and
and may be appealed to establish a higher standard of protection and promotion of
3. the Court of Appeals (CA); and may be appealed to the welfare of migrant workers, their families and overseas
4. the Supreme Court (SC). Filipinos in distress, and for other purposes.

SEC. 2. DECLARATION OF POLICIES--


Book One
PRE-EMPLOYMENT  The State does not promote overseas employment as
a means to sustain economic growth and achieve
Title I national development. The existence of the overseas
RECRUIT AND PLACEMENT OF WORKERS employment program rests solely on the assurance
that the dignity and fundamental human rights and
Chapter I freedoms of the Filipino citizens shall not, at any
time, be compromised or violated. The State,
Art. 13. Definitions therefore, shall continuously create local
employment opportunities and promote the
Worker – any member of the labor force, whether employed equitable distribution of wealth and the benefits of
or unemployed. development.

Recruitment and placement – any act of canvassing,


enlisting, contracting, transporting, utilizing, hiring or SEC. 3. DEFINITIONS
procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad, Migrant worker – a person who is to be engaged, is engaged
whether for profit or not: Provided, That any person or entity or has been engaged in a renumerated activity in a state of
which, in any manner, offers or promises for a fee, which he or she is not a legal resident to be used
employment to two or more persons shall be deemed engaged interchangeably with overseas Filipino worker.
in recruitment and placement. Overseas Filipinos – dependents of migrant workers and
 “employment to two or more persons shall be other Filipino nationals abroad who are in distress as
deemed engaged in recruitment and placement” - mentioned in Sections 24 and 26 of this Act.
this is only a matter of evidence. Thus, even the
employment involves only one person, there is
already the engagement of recruitment and
placement.
 The number of persons dealt with is not the basis in
determining whether or not an act constitutes
recruitment and placement. Any of the acts
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considerations other than those authorized under the Labor


Code and its implementing rules and regulations;
(l) Failure to actually deploy without valid reasons as
determined by the Department of Labor and Employment; 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.
II. ILLEGAL RECRUITMENT  Illegal recruitment when committed by a syndicate
Sec. 6. DEFINITIONS or in large scale shall be considered as offense
involving economic sabotage.
Illegal recruitment – any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, procuring workers Syndicate – is illegal recruitment carried out by a group of
and includes referring, contact services, promising or three (3) or more persons conspiring or confederating with one
advertising for employment abroad, whether for profit or not, another.
when undertaken by a non-license or non-holder of Large scale – is illegal recruitment committed against three
authority. Provided, that such non-license or non-holder, who, (3) or more persons individually or as a group.
in any manner, offers or promises for a fee employment
abroad to two or more persons shall be deemed so engaged. It  The persons criminally liable for the above offenses
shall likewise include the following acts, whether committed are the principals, accomplices and accessories.
by any persons, whether a non-licensee, non-holder, licensee
 In case of juridical persons, the officers having
or holder of authority.
control, management or direction of their business
(a) To charge or accept directly or indirectly any amount shall be liable.
greater than the specified in the schedule of allowable fees
 An employee who was merely acting under the
prescribed by the Secretary of Labor and Employment, or to
direction of his superiors and was unaware that his
make a worker pay any amount greater than that actually
acts constituted a crime may not be held criminally
received by him as a loan or advance;
liable.
(b) To furnish or publish any false notice or information or
document in relation to recruitment or employment;
SEC. 7. PENALTIES
(c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for the (a) Any person found guilty of illegal recruitment shall suffer
purpose of securing a license or authority under the Labor the penalty of imprisonment of not less than six (6) years and
Code; one (1) day but not more than twelve (12) years and a fine
not less than two hundred thousand pesos (P200,000.00) nor
(d) To induce or attempt to induce a worker already
more than five hundred thousand pesos (P500,000.00).
employed to quit his employment in order to offer him another
unless the transfer is designed to liberate a worker from (b) The penalty of life imprisonment and a fine of not less
oppressive terms and conditions of employment; than five hundred thousand pesos (P500,000.00) nor more
than one million pesos (P1,000,000.00) shall be imposed if
(e) To influence or attempt to influence any persons or entity
illegal recruitment constitutes economic sabotage as defined
not to employ any worker who has not applied for
herein.
employment through his agency;
Provided, however, that the maximum penalty shall be
(f) To engage in the recruitment of placement of workers in
imposed if the person illegally recruited is less than eighteen
jobs harmful to public health or morality or to dignity of the
(18) years of age or committed by a non-licensee or non-
Republic of the Philippines;
holder of authority.
(g) To obstruct or attempt to obstruct inspection by the
Secretary of Labor and Employment or by his duly
authorized representative; SEC. 8. PROHIBITION ON OFFICIALS AND
EMPLOYEES
(h) To fail to submit reports on the status of employment,
placement vacancies, remittances of foreign exchange It shall be unlawful for:
earnings, separations from jobs, departures and such other
1. any official or employee of the Department of Labor
matters or information as may be required by the Secretary of
and Employment, the Philippine Overseas
Labor and Employment;
Employment Administration, or the Overseas
(i) To substitute or alter to the prejudice of the worker, Workers Welfare Administration, or the Department
employment contracts approved and verified by the of Foreign Affairs, or other government agencies
Department of Labor and Employment from the time of involved in the implementation of this Act,
actual signing thereof by the parties up to and including the
2. or their relatives within the fourth civil degree of
period of the expiration of the same without the approval of
consanguinity or affinity, to engage, directly or
the Department of Labor and Employment;
indirectly, in the business of recruiting migrant
(j) For an officer or agent of a recruitment or placement workers as defined in this Act. The penalties shall be
agency to become an officer or member of the Board of any imposed upon them.
corporation engaged in travel agency or to be engaged
directly on indirectly in the management of a travel agency;
SEC. 9. VENUE
(k) To withhold or deny travel documents from applicant
workers before departure for monetary or financial A criminal action arising from illegal recruitment as defined

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herein shall be filed with the Regional Trial Court of the


province or city where the offense was committed or where
SEC. 15. REPATRIATION OF WORKERS;
the offended party actually resides at the same time of the
EMERGENCY REPATRIATION FUND
commission of the offense: Provided, That the court where
the criminal action is first filed shall acquire jurisdiction to  The repatriation of the worker and the transport of his
the exclusion of other courts. Provided, however, That the personal belongings shall be the primary
aforestated provisions shall also apply to those criminal responsibility of the agency which recruited or
actions that have already been filed in court at the time of the deployed the worker overseas. All costs attendant to
effectivity of this Act. repatriation shall be borne by or charged to the
agency concerned and/or its principal. Likewise, the
SEC. 10. MONEY CLAIMS
repatriation of remains and transport of the personal
But withstanding any provision of law to the contrary, the belongings of a deceased worker and all costs
Labor Arbiters of the National Labor Relations Commission attendant thereto shall be borne by the principal
(NLRC) shall have the original and exclusive jurisdiction to and/or local agency.
hear and decide, within ninety (90) calendar days after filing
 However, in cases where the termination of
of the complaint, the claims arising out of an employer-
employment is due solely to the fault of the worker,
employee relationship or by virtue of any law or contract
the principal/employer or agency shall not in any
involving Filipino workers for overseas deployment including
manner be responsible for the repatriation of the
claims for actual, moral, exemplary and other forms of
former and/or his belongings.
damages.
 The Overseas Workers Welfare Administration
 The liability of the principal/employer and the
(OWWA), in coordination with appropriate
recruitment/placement agency for any and all claims
international agencies, shall undertake the
under this section shall be joint and several.
repatriation of workers in cases of war, epidemic,
 The performance bond to be filed by the disasters or calamities, natural or man-made, and
recruitment/placement agency, as provided by law, other similar events without prejudice to
shall be answerable for all money claims or reimbursement by the responsible principal or
damages that may be awarded to the workers. agency. However, in cases where the principal or
recruitment agency cannot be identified, all costs
 Such liabilities shall continue during the entire
attendant to repatriation shall be borne by the
period or duration of the employment contract and
OWWA.
shall not be affected by any substitution, amendment
or modification made locally or in a foreign country
 Parties to overseas employment contracts are allowed
of the said contract. to agree on terms and conditions, but the stipulations
 Any compromise/amicable settlement or voluntary should not contradict Philippine law, public policy
agreement on money claims inclusive of damages and morals.
under this section shall be paid within four (4)
months from the approval of the settlement by the  The Welfare Fund for Overseas Workers
appropriate authority. Administration (OWWA) was intended to provide
social welfare services.
 In case of termination of overseas employment
without just, valid or authorized cause as defined by  The principal agency has to advance the air
law or contract, the workers shall be entitled to the transport fare to the Philippines and immediately
full reimbursement of his placement fee with bring back the workers, as needed. If the cause of
interest of twelve percent (12%) per annum, plus his termination is due solely to the fault of the worker,
salaries for the unexpired portion of his the principal or agency may recover the cost of
employment contract or for three (3) months for repatriation from the worker after return to the
every year of the unexpired term, whichever is less. country. They cannot remain stranded in a foreign
 Non-compliance with the mandatory periods for land just because of a pending legal proceeding
resolutions of cases provided under this section shall (Equi-Asia Placement Inc. vs. DFA and DOLE,
subject the responsible officials to any or all of the GR No. 152214, September 19, 2006).
following penalties:
Chapter II
(a) The salary of any such official who fails to render his REGULATION OF RECRUITMENT AND PLACEMENT
decision or resolutions within the prescribed period shall be, ACTIVITIES
or caused to be, withheld until the said official complies
therewith; Art. 25. Private sector participation in the recruitment and
placement of workers.
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualifications to hold The private employment sector shall participate in the
any appointive public office for five (5) years. recruitment and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may be
issued by the Secretary of Labor.
SEC. 12. PRESCRIPTIVE PERIODS
Art. 26. Travel agencies prohibited to recruit.
 Illegal recruitment cases under this Act shall
prescribe in five (5) years: Provided, however, That Travel agencies and sales agencies of airline companies are
illegal recruitment cases involving economic prohibited from engaging in the business of recruitment and
sabotage as defined herein shall prescribe in twenty placement of workers for overseas employment whether for
(20) years. profit or not.

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Art. 27. Citizenship requirement. Development Board, or for violation of the provisions of this
and other applicable laws, General Orders and Letters of
Only Filipino citizens or corporations, partnerships or entities Instructions.
at least seventy-five percent (75%) of the authorized and
voting capital stock of which is owned and controlled by  A recruitment agency is solidarily liable for the
Filipino citizens shall be permitted to participate in the unpaid salaries of a worker it recruited for
recruitment and placement of workers, locally or overseas. employment with foreign principal.

 Even if the recruitment agency and the principal had


already ended their agency agreement at the tim the
worker was injured, the recruitment agency may still
be sued for violation of the employment contract, if
Art. 28. Capitalization. no notice of the agency agreement's termination was
given to the employee.
All applicants for authority to hire or renewal of license to
recruit are required to have such substantial capitalization as Chapter III
determined by the Secretary of Labor. MISCELLANEOUS PROVISIONS
Art. 29. Non-transferability of license or authority. Art. 36. Regulatory power.
No license or authority shall be used directly or indirectly by The Secretary of Labor shall have the power to restrict and
any person other than the one in whose favor it was issued or regulate the recruitment and placement activities of all
at any place other than that stated in the license or authority agencies within the coverage of this Title and is hereby
be transferred, conveyed or assigned to any other person or authorized to issue orders and promulgate rules and
entity. Any transfer of business address, appointment or regulations to carry out the objectives and implement the
designation of any agent or representative including the provisions of this Title.
establishment of additional offices anywhere shall be subject
to the prior approval of the Department of Labor. Art. 37. Visitorial Power.
Art. 30. Registration fees. The Secretary of Labor or his duly authorized representatives
may, at any time, inspect the premises, books of accounts and
The Secretary of Labor shall promulgate a schedule of fees records of any person or entity covered by this Title, require
for the registration of all applicants for license or authority. it to submit reports regularly on prescribed forms, and act on
violation of any provisions of this Title.
Art. 31. Bonds.
Art. 38. Illegal recruitment.
All applicants for license or authority shall post such cash
and surety bonds as determined by the Secretary of Labor to  Such acts are already contained in RA No. 8042.
guarantee compliance with prescribed recruitment
procedures, rules and regulations, and terms and conditions of
employment as may be appropriate.
Title II
Art. 32. Fees to be paid by workers. EMPLOYMENT OF NON-RESIDENT ALIENS

Any person applying with a private fee-charging employment Art. 40. Employment permit of non-resident aliens.
agency for employment assistance shall not be charged any
Any alien seeking admission to the Philippines for
fee until he has obtained employment through its efforts or
employment purposes and any domestic or foreign employer
has actually commenced employment. Such fee shall be
who desires to engage an alien for employment in the
always covered with the appropriate receipt clearly showing
Philippines shall obtain an employment permit from the
the amount paid. The Secretary of Labor shall promulgate a
Department of Labor.
schedule of allowable fees.
The employment permit may be issued to a non-resident
Art. 33. Reports on employment status.
alien or to the applicant employer after a determination of
Whenever the public interest requires, the Secretary of Labor the non-availability of a person in the Philippines who is
may direct all persons or entities within the coverage of this competent, able and willing at the time of application to
Title to submit a report on the status of employment, perform the services for which the alien is desired.
including job vacancies, details of job requisitions, separation
For an enterprise registered in preferred areas of investments,
from jobs, wages, other terms and conditions and other
said employment permit may be issued upon
employment data.
recommendation of the government agency charged with the
Art. 34. Prohibited practices. supervision of said registered enterprise.

 These prohibited acts constitutes illegal recruitment Art. 41. Prohibition against transfer of employment
as redefined by RA No. 8042.
After the issuance of an employment permit, the alien shall
Art. 35. Suspension and/or cancellation of license or not transfer to another job or change his employer without
authority. prior approval of the Secretary of Labor.

The Minister of Labor shall have the power to suspend or Any non-resident alien who shall take up employment in
cancel any license or authority to recruit employees for violation of the provision of this Title and its implementing
overseas employment for violation of rules and regulations rules and regulations shall be punished in accordance with
issued by the Ministry of Labor, the Overseas Employment
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the provisions of Articles 289 and 290 of the Labor Code. agreement.

In addition, the alien worker shall be subject to deportation Upon complaint of any interested person or upon its own
after service of his sentence. initiative, the appropriate agency of the Department of Labor
and Employment or its authorized representative shall
Art. 42. Submission of list. investigate any violation of an apprenticeship agreement
pursuant to such rules and regulations as may be prescribed by
Any employer employing non-resident foreign nationals on the Secretary of Labor and Employment.
the effective date of this Code shall submit a list of such
nationals to the Secretary of Labor within thirty (30) days
xxxx. The Secretary of Labor shall then determine if they are
entitled to an employment permit.
Permits to be issued:
Art. 66. Appeal to the Secretary of Labor and
Alien Employment Permit (AEP) – for non-resident alien Employment.
Alien Employment Registration Certificate (AERC) – for The decision of the authorized agency of the Department of
resident alien Labor and Employment may be appealed by any aggrieved
person to the Secretary of Labor and Employment within five
(5) days from receipt of the decision. The decision of the
BOOK TWO Secretary of Labor and Employment shall be final and
HUMAN RESOURCES DEVELOPMENT PROGRAM executory.

Title II Art. 67. Exhaustion of administrative remedies.


TRAINING AND EMPLOYMENT OF SPECIAL
WORKERS No person shall institute any action for the enforcement of any
apprenticeship agreement or damages for breach of any such
Chapter I agreement, unless he has exhausted all available
APPRENTICES administrative remedies.

Art. 58. Definition of Terms. Art. 70. Voluntary organization of apprenticeship


programs; exemptions.
Apprenticeship – practical training on the job supplemented
by related theoretical instruction. General rule:

Apprentice – is a worker who is covered by a written The organization of apprenticeship program shall be primarily
apprenticeship agreement with an individual employer or any a voluntary undertaking by employers;
of the entities recognized under this Chapter.
Apprenticeable occupation – any trade, form of employment Exceptions:
or occupation which requires more than three (3) months of (a) When national security or particular requirements
practical training on the job supplemented by related of economic development so demand, the President
theoretical instruction. of the Philippines may require compulsory training of
Art. 59. Qualifications of apprentice. apprentices in certain trades, occupations, jobs or
employment levels where shortage of trained
(a) Be at least fourteen (14) years of age; manpower is deemed critical as determined by the
Secretary of Labor and Employment. Appropriate
(b) Possess vocational aptitude and capacity for rules in this connection shall be promulgated by the
appropriate tests; and Secretary of Labor and Employment as the need
(c) Possess the ability to comprehend and follow oral arises; and
and written instructions. (b) Where services of foreign technicians are utilized by
private companies in apprenticeable trades, said
Art. 60. Employment of apprentices.
companies are required to set up appropriate
Only employers in the highly technical industries may employ apprenticeship programs.
apprentices and only in apprenticeable occupations approved Art. 71. Deductibility of training costs
by the Secretary of Labor and Employment.
An additional deduction from taxable income of one-half
Art. 61. Contents of apprenticeship agreements. (1/2) of the value of labor training expenses incurred for
developing the productivity and efficiency of apprentices shall
Apprenticeship agreements, including the wage rates of
be granted to the person or enterprise organizing an
apprentices, shall conform to the rules issued by the Secretary
apprenticeship program:
of Labor and Employment. The period of apprenticeship shall
not exceed six months. Apprenticeship agreements providing  Provided: That such program is duly recognized by
for wage rates below the legal minimum wage, which in no the Department of Labor and Employment:
case shall start below 75 percent of the applicable minimum
wage, may be entered into only in accordance with  Provided, further, That such deduction shall not
apprenticeship programs duly approved by the Secretary of exceed ten (10%) percent of direct labor wage:
Labor and Employment. The Department shall develop and
standard model programs of apprenticeship.
◦ Provided, finally, That the person or
Art. 65. Investigation of violation of apprenticeship enterprise who wishes to avail himself or
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itself of this incentive should pay his industrial occupations which are non-apprenticeable and
apprentices the minimum wage. which may be learned through practical training on the job in a
relatively short period of time which shall not exceed three (3)
months.

Art. 72. Apprentices without compensation. Art. 74. When learners may be hired.
The Secretary of Labor and Employment may authorize the Learners may be employed when:
hiring of apprentices without compensation
1. No experienced workers are available;
(a) whose training on the job is required by
2. The employment of learners is necessary to prevent
◦ the school or curtailment of employment opportunities; and,

◦ training program curriculum 3. The employment does not create unfair competition
in terms of labor costs or impair or lower working
(b) or as requisite for standards.
◦ graduation or Art. 75. Learnership agreement.
◦ board examination. Any employer desiring to employ learners shall enter into a
Notes: learnership agreement with them, which agreement shall
include:
 In relation to Art. 72, the Implementing Rules
provide that there is no employer-employee  The names and addresses of the learners;
relationship between students on one hand, and  The duration of the learnership period, which shall
schools on the other, where there is written not exceed three (3) months;
agreement under which the former agree to work for
the latter in exchange for the privilege to study free  The wages or salary rates of the learners which shall
of charge, provided the students are given real begin at not less than seventy-five percent (75%) of
opportunities to finish their chosen courses under the applicable minimum wage; and
such agreement.
 A commitment to employ the learners if they so
 However, in the case of Filamer Christian Institute desire, as regular employees upon completion of the
vs. Hon. Intermediate Apellate Court, et. al., GR learnership.
No. 75112, August 17, 1992, the Supreme Court that All learners who have been allowed or suffered to work
the applicable law was Art. 2180 of the Civil Code during the first two (2) months shall be deemed regular
and not the Labor Code's implementing rule. Under employees if training is terminated by the employer before
Art. 2180, an injured party shall have recourse the end of the stipulated period through no fault of the
against the servant as well as the petitioners school learners.
for whom, at the time of incident, the servant was
performing an act in furtherance of the interest and The learnership agreement shall be subject to inspection by
for the benefit of the school. the Secretary of Labor and Employment or his duly
authorized representative.
Four-Fold Test in Determining Employer-Employee
Relationship Art. 76. Learners in piecework.

1. the selection and engagement of the employee Learners employed in piece or incentive-rate jobs during the
training period shall be paid in full for the work done.
2. the payment of wages
Art. 77. Penalty clause.
3. the power of dismissal Any violation of this Chapter or its implementing rules and
regulations shall be subject to the general penalty clause
4. the employer's power to control with respect to the provided for in this Code.
means and methods by which the work is to be
accomplished (Brotherhood vs. Zamora)

Chapter II
LEARNERS

Art. 73. Learners defined.

Learners – persons hired as trainees in semi-skilled and other

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Learnership vs. Apprenticeship

Learnership Apprenticeship

Similarities:
Similarities:
 Both mean training periods for jobs requiring skills that
can be acquired through actual work experience
 Both mean training periods for jobs requiring skills that
can be acquired through actual work experience
 Both may be paid wages twenty-five percent lower than
the applicable minimum wage
 Both may be paid wages twenty-five percent lower than
the applicable minimum wage
Distinctions:
Distinctions:
 A learner trains in semi-skilled job or in industrial
occupations that require
 An apprentice trains in a highly skilled job or in a job
found only in highly technical industry
 Allowed even for non technical jobs
 Allowed only in highly technical industries
 Training shall not exceed three months
 Training exceeds three months
 A learner is not an apprentice
 Conceptually, an apprentice is also a learner
 An employer is committed to hire the learner-trainee as
 In apprenticeship, no such commitment exists
an employee after the training period

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Art. 136. Stipulation against marriage.


Chapter III
HANDICAPPED WORKERS It shall be unlawful for an employer to require as a condition
of employment or continuation of employment that a woman
Art. 78. Definition.
employee shall not get married, or to stipulate expressly or
Handicapped workers – those whose earning capacity is tacitly that upon getting married, a woman employee shall be
impaired by age or physical or mental deficiency or injury. deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman
Art. 79. When employable. employee merely by reason of her marriage.

Handicapped workers may be employed: Art. 139. Minimum employable age.

1. When their employment is necessary to prevent (a) No child below fifteen (15) years of age shall be
curtailment of employment opportunities; and, employed, except when he works directly under the
sole responsibility of his parents or guardian, and his
2. When it does not create unfair competition in labor employment does not in any way interfere with his
costs or impair or lower working standards. schooling.

Art. 80. Employment agreement.


(b) Any person between fifteen (15) and eighteen (18)
Any employer who employs handicapped workers shall enter years of age may be employed for such number of
into an employment agreement with them, which agreement hours and such periods of the day as determined by
shall include: the Secretary of Labor and Employment in
appropriate regulations.
 The names and addresses of the handicapped
workers to be employed;
(c) The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years of
 The rate to be paid the handicapped workers which age in an undertaking which is hazardous or
shall not be less than seventy five (75%) percent of deleterious in nature as determined by the Secretary
the applicable legal minimum wage; of Labor and Employment.
Art. 140. Prohibition against child discrimination.
 The duration of employment period; and
No employer shall discriminate against any person in respect
to terms and conditions of employment on account of his age.
 The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by
the Secretary of Labor or his duly authorized representative.

Art. 81. Eligibility for apprenticeship.

Subject to the appropriate provisions of this Code,


handicapped workers may be hired as apprentices or
learners if:

 their handicap is not such as to effectively impede


the performance of job operations in the particular
occupations for which they are hired.

Art. 135. Discrimination prohibited.

It shall be unlawful for any employer to discriminate against


any woman employee with respect to terms and conditions of
employment solely on account of her sex.

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REPUBLIC ACT NO. 9231 employed, the employer shall first secure, before engaging
Law Eliminating the Worst Forms of Child Labor such child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above
Section 2. Section 12 of the same Act, as amended, is hereby requirements.
further amended to read as follows:

"Sec. 2. Employment of Children - "For purposes of this Article, the term

General Rule: Children below fifteen (15) years of age shall Child – shall apply to “all persons under eighteen (18) years
not be employed of age.”

except: Section 3. The same Act, as amended, is hereby further


amended by adding new sections to be denominated as
Sections 12-A, 12-B, 12-C, and 12-D to read as follows:
1. When a child works directly under the: (a) sole
responsibility of his/her parents or legal guardian and (b)
where only members of his/her family are employed: "Sec. 2-A. Hours of Work of a Working Child. - Under the
Provided, however, That his/her (c) employment neither exceptions provided in Section 12 of this Act, as amended:
endangers his/her life, safety, health, and morals, nor
impairs his/her normal development: Provided, further, That
(d) the parent or legal guardian shall provide the said child "(1) A child below fifteen (15) years of age may be allowed to
with the prescribed primary and/or secondary education; or work for not more than twenty (20) hours a week: Provided,
That the work shall not be more than four (4) hours at any
given day;
2. Where a child's (a) employment or participation in public
entertainment or information through cinema, theater, radio,
television or other forms of media is essential: Provided, That "(2) A child fifteen (15) years of age but below eighteen (18)
the (b) employment contract is concluded by the child's shall not be allowed to work for more than eight (8) hours a
parents or legal guardian, (c) with the express agreement of day, and in no case beyond forty (40) hours a week;
the child concerned, if possible, and the (d) approval of the
Department of Labor and Employment: Provided, further,
That the (e) following requirements in all instances are
strictly complied with: (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 following day and no child fifteen (15)
years of age but below eighteen (18) shall be allowed to work
"(a) The employer shall ensure the protection, health, safety, between ten o'clock in the evening and six o'clock in the
morals and normal development of the child; morning of the following day.

"(b) The employer shall institute measures to prevent the "Sec. 12-D. Prohibition Against Worst Forms of Child
child's exploitation or discrimination taking into account the Labor. - No child shall be engaged in the worst forms of child
system and level of remuneration, and the duration and labor. The phrase "worst forms of child labor" shall refer to
arrangement of working time; and any of the following:

"(c) The employer shall formulate and implement, subject to "(1) All forms of slavery, as defined under the "Anti-
the approval and supervision of competent authorities, a trafficking in Persons Act of 2003", or practices similar to
continuing program for training and skills acquisition of the slavery such as sale and trafficking of children, debt bondage
child. and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict; or

"In the above-exceptional cases where any such child may be


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"(2) The use, procuring, offering or exposing of a child for "i) Involves the manufacture or handling of explosives and
prostitution, for the production of pornography or for other pyrotechnic products."
pornographic performances; or

Section 5. Section 14 of the same Act is hereby amended to


"(3) The use, procuring or offering of a child for illegal or read as follows:
illicit activities, including the production and trafficking of
dangerous drugs and volatile substances prohibited under
existing laws; or "Sec. 14. Prohibition on the Employment of Children in
Certain Advertisements. -

"(4) Work which, by its nature or the circumstances in which


it is carried out, is hazardous or likely to be harmful to the No child shall be employed as a model in any advertisement
health, safety or morals of children, such that it: directly or indirectly promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts, gambling or
any form of violence or pornography."
"a) Debases, degrades or demeans the intrinsic worth and
dignity of a child as a human being; or
BOOK THREE
CONDITIONS OF EMPLOYMENT
"b) Exposes the child to physical, emotional or sexual abuse, Title I
or is found to be highly stressful psychologically or may WORKING CONDITIONS AND REST PERIODS
prejudice morals; or
Chapter I
HOURS OF WORK
"c) Is performed underground, underwater or at dangerous
Art. 82. Coverage.
heights; or
The provisions of this Title

"d) Involves the use of dangerous machinery, equipment and General Rule: Working Conditions and rest periods shall
tools such as power-driven or explosive power-actuated tools; apply to employees in all establishments and undertakings
or whether for profit or not.

Exceptions:
"e) Exposes the child to physical danger such as, but not 1. government employees
limited to the dangerous feats of balancing, physical strength
or contortion, or which requires the manual transport of heavy 2. managerial employees
loads; or
3. non-agricultural field personnel

4. officers or members of managerial staff


"f) Is performed in an unhealthy environment exposing the
child to hazardous working conditions, elements, substances, 5. domestic helpers and persons in the personal service
co-agents or processes involving ionizing, radiation, fire, of another, and
flammable substances, noxious components and the like, or to
extreme temperatures, noise levels, or vibrations; or 6. workers who are paid by results

Managerial employees – those whose primary duty consists


of the management of the establishment in which they are
"g) Is performed under particularly difficult conditions; or
employed or of a department or subdivision thereof, and to
other officers or members of the managerial staff.

"h) Exposes the child to biological agents such as bacteria,


fungi, viruses, protozoans, nematodes and other parasites; or

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Field personnel – those non-agricultural employees who Modes of Compensation, Not a test of Employment Status
regularly perform their duties away from the principal place of
business or branch office of the employer and whose actual Employment relationship is one thing, pay
hours of work in the field cannot be determined with determination is another
reasonable certainty.
Piece-rate, “boundary”, and “pakyaw” are merely
Law prevails over a contract methods of pay computation and do not prove whether the
payee is an employee or not.
The existence of a employer-employee relationship is not a
matter of stipulation; it is a question of law. “Pakiao” does not make petitioners independent contractors.
Pakiao workers are considered employees as long as the
Employer-employee relationship is also a question of fact – employer exercises control over the means by which such
depends upon the fact of its case. workers are to perform their work. (Zamudio v. NLRC, March
25, 1990)
Employer-employee relationship may exist regardless of the
nature of the activities involved. The kind of work is not exercise of Employment Relationship Determined by Law,
definitive test of whether the worker is an employee or not. Not by Contract (even if the parties call their contract a
“Contract of Lease of Services” under Art. 1642 of the Civil
Employer – includes any person acting in the interest of an Code, the factual existence of an employer-employee
employer in relation to an employee… and an “employee” relationship still prevail)
includes any individual employed by an employer (Art. 97)
WHEN EMPLOYMENT RELATIONSHIP PRESENT
Elements of “tests” of employment relationship
1. Salaried Insurance Agents
“Right of control test” – where the person for whom the
services are performed reserves a right to control not only the 2. School Teachers – university controls the work
end to be achieved but also the means to be used in reaching of the members of its faculty)
such end.
3. Jeepney Driver, Taxi Driver, Barber –jeepney
The existing economic conditions prevailing between the owners/operators exercise supervision and
parties (certain economic parameters)– ex. The inclusion of control over their drivers. The owner as holder of
the employee in the payrolls, in determining the relationship the certificate of public convenience must see to
of employer-employee relationship. it that the driver must follows the route
prescribed by the franchising authority and the
“four fold test” rules promulgated as regards its operation.

a. the selection and engagement of the employee 4. Piece-rate Workers


b. the payment of wages 5. Street-hired Cargadores (note: wielded the
power of dismissal)
c. the power of dismissal
6. Fishermen
d. the employer’s power to control the employee with
respect to the means and methods by which the work 7. Workers in Movie Projects
is to be accomplished
(therefore entitled to the protection of the law and
Evidence of Employment: Identification Card, Vouchers, could not just be terminated without valid and
SSS Registration, Memorandum justifiable reason)

In administrative and quasi-judicial proceedings, “substantial 1 LABOR UNION AND UNREGISTERED


evidence” is sufficient as a basis for judgment on the ASSOCIATION AS EMPLOYER (Bautista v.
existence of employer-employee relationship. No particular Inciong and Orlando Farm Grower v. NLRC.)
form to evidence is required to prove the existence of such
relationship. Any competence and relevant evidence to prove 2 WHEN EMPLOYMENT RELATIONSHIP
the relationship may be admitted. (domasig vs. NLRC, Sept. ABSENT; JOB CONTRACTING OR
16, 1996) INDEPENDENT CONTRACTOR) In labor only
contracting the employer-employee relationship is
between the workers and the enterprise to which they
are supplied.

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3 GENERAL RIGHT OF EMPLOYER OVER Art. 84. Hours worked.


CONDITIONS OF EMPLOYMENT – except as
limited by special law, an employer is free to Hours worked shall include:
regulate, according to his own discretion and
judgment, all aspects of employment, including (a) all time during which an employee is required to be
hiring, work assignments, working methods, time, on duty or to be at a prescribed workplace; and
place and manner of work, tools to be used, processes
to be followed, supervision of workers, working (b) all time during which an employee is suffered or
regulations, transfer of employees, work supervision, permitted to work.
lay-off of workers and discipline, dismissal and recall
(c) Rest periods of short duration during working hours.
of workers. (San Miguel Brewery Sale v. Ople)
Rest periods of short duration during working hours shall be
4 So long as a company’s prerogatives are exercised in
counted as hours worked.
good faith for the advancement of employer’s interest
and not for the purpose of defeating or circumventing
the right of the employees under special laws or
under valid agreements, the SC will uphold them. Compressed Work Week
(San Miguel Brewery Sale v. Ople)
 Resorted to by the employer to prevent serious losses
5 Supervisors, like managers, not entitled to overtime due to causes beyond his control.
pay.
 Instead of working 6 days a week, the employees will
6 A taxi driver who is not observing any working hour be regularly working for less than 6 days but each
is not covered by the eight-hour Labor Law. workday exceeds 8 hours. For the hours exceeding 8
in a workday, the employees waive their OT pay
Art. 83. Normal hours of work. because, in return, they will no longer incur transport
and other expenses.
The normal hours of work of any employee shall not exceed
eight (8) hours a day.  Allowed on condition that it is freely agreed upon
between the employer and majority of the employees.
General Rule applicable to health personnel: Health
Further, the arrangement should not diminish the
personnel in cities and municipalities with a population of at
employees' monthly or daily pay or their established
least one million (1,000,000) or in hospitals and clinics with a
employment benefits.
bed capacity of at least one hundred (100) shall hold regular
office hours for eight (8) hours a day, for five (5) days a week,  Extended workday in CWW should not exceed 12
exclusive of time for meals, work hours. Work exceeding 12 hrs in a day or 48
hrs in a week should be considered OT.
Exception: Where the exigencies of the service require that
such personnel work for six (6) days or forty-eight (48) hours,
in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular Waiting Time
wage for work on the sixth day.
(a) Waiting time spent by an employee shall be
Health personnel for the purpose of Art. 38 of the Labor considered as working time if:
Code, they include resident physicians, nurses, nutritionists,
dietitians, pharmacists, social workers, laboratory ◦ waiting is an integral part of his work, or
technicians, paramedical technicians, psychologists,
midwives, attendants and all other hospital or clinic ◦ the employer is required or engaged by the
personnel. employer to wait.

Part-time work – the wage and the benefits of a part-timer are (b) Working while on call – an employee who is required
in proportion to the number of hours worked. to remain on call in the employer's premises or so
close thereto that he cannot use the time effectively
Forty-hour work week would not be applicable if there is a and gainfully for his own purpose.
training agreement between the resident physician and the
hospital and the training program is duly accredited or
approved by the appropriate government agency.

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Art. 85. Meal periods. 3. managerial employees;

Subject to such regulations as the Secretary of Labor may 4. field personnel and other employees whose time and
prescribe, it shall be the duty of every employer to give his performance is unsupervised by the employer; and,
employees not less than sixty (60) minutes time-off for their
regular meals. 5. domestic helpers, and persons in the personal service
of another.

General Rule: Not less than 1 hour time-off for regular


meals is non-compensable. Art. 87. Overtime work.

Work may be performed beyond eight (8) hours a day


provided that the employee is paid for the overtime work, an
Except: Meal period of not less than 20 minutes in the additional compensation equivalent to his regular wage plus
following cases is compensable hours worked. at least twenty-five percent (25%) thereof. Work performed
beyond eight hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate of the first
eight hours on a holiday or rest day plus at least thirty
(a) Where the work is nonmanual work in nature or percent (30%) thereof.
does not involve strenuous physical exertion;

(b) Where the establishment regularly operates not less


than sixteen hours a day; Art. 88. Undertime not offset by overtime.
(c) In cases of actual or impending emergencies or Undertime work on any particular day shall not be offset by
there is urgent work to be performed on machineries, overtime work on any other day. Permission given to the
equipment or installations to avoid serious loss which employee to go on leave on some other day of the week shall
the employer would otherwise suffer; and, not exempt the employer from paying the additional
compensation required in this Chapter.
(d) Where the work is necessary to prevent serious loss
of perishable goods. Reason: Offsetting the undertime hours against OT hours
would result in undue deprivation of the employee's extra pay
 Rest periods or coffee breaks running from 5 to 20 for OT work.
minutes are considered as compensable working
time.  Right to OT cannot be waived. But when the alleged
waiver of OT pay is in consideration of benefits and
 To shorten meal time to less than 20 minutes is not privileges which may even exceed the OT pay, the
allowed. If the so-called “meal time” is less than 20 waiver may be permitted.
minutes, it becomes only a rest period.

Art. 89. Emergency overtime work.


Art. 86. Night shift differential.
Any employee may be required by the employer to perform
Every employee shall be paid a night shift differential of not overtime work in any of the following cases:
less than ten percent (10%) of his regular wage for each
hour of work performed between ten o’clock in the evening 1. When the country is at war or when any other
and six o’clock in the morning. national or local emergency has been declared by the
National Assembly or the Chief Executive;
 If work done between 10 pm and 6 am is OT work,
the NSD should be based on the OT rate. 2. When it is necessary to prevent loss of life or
property or in case of imminent danger to public
Employees Not Covered by Night Shift Differential safety due to an actual or impending emergency in
the locality caused by serious accidents, fire, flood,
1. government employees; typhoon, earthquake, epidemic, or other disaster or
calamity;
2. retail and service establishments regularly employing
not more than five (5) workers; 3. When there is urgent work to be performed on
machines, installations, or equipment, in order to

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avoid serious loss or damage to the employer or employee as to his weekly day of rest shall be
some other cause of similar nature; respected by the employer if the same is based on
religious grounds.
4. When the work is necessary to prevent loss or
damage to perishable goods; and, ◦ The employee shall make known his preference
5. Where the completion or continuation of the work to the employer in writing at least 7 days
started before the eighth hour is necessary to before the desired effectivity of the initial rest
prevent serious obstruction or prejudice to the day so preferred.
business or operations of the employer.
◦ Where, however, the choice of the employee as
6. When overtime work is necessary to avail of to his rest day based on religious grounds will
favorable weather or environmental conditions inevitably result in serious prejudice or
where performance or quality or work is dependent obstruction to the operations of the undertaking
thereon. and the employer cannot normally be expected to
resort to other remedial measures, the employer
Any employee required to render overtime work under this
may so schedule the weekly rest day of his
Article shall be paid the additional compensation required in
choice for at least 2 days in a month.
this Chapter.

Art. 90. Computation of additional compensation.  Schedules of Rest Day shall be made known to the
employees through written notices posted
For purposes of computing overtime and other additional conspicuously in the work place at least one week
remuneration as required by this Chapter, the "regular wage" before they become effective.
of an employee shall include the cash wage only, without
deduction on account of facilities provided by the employer.
Art. 92. When employer may require work on a rest day.
Regular Wage – includes the cash wage only, without
deduction on account of facilities provided by the employer. General Rule: The employer cannot compel employees to
work on a rest day.
Chapter II Exceptions: The employer may require his employees to
WEEKLY REST PERIODS work on any day:

1. In case of actual or impending emergencies caused


Art. 91. Right to weekly rest day. by serious accident, fire, flood, typhoon, earthquake,
epidemic or other disaster or calamity to prevent loss
It shall be the duty of every employer, whether operating for of life and property, or imminent danger to public
profit or not, to provide each of his employees a rest period of safety;
not less than twenty-four (24) consecutive hours after every
six (6) consecutive normal work days. 2. In cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid
The employer shall determine and schedule the weekly rest
serious loss which the employer would otherwise
day of his employees subject to collective bargaining suffer;
agreement and to such rules and regulations as the Secretary
of Labor and Employment may provide. However, the 3. In the event of abnormal pressure of work due to
employer shall respect the preference of employees as to their special circumstances, where the employer cannot
weekly rest day when such preference is based on religious ordinarily be expected to resort to other measures;
grounds.
4. To prevent loss or damage to perishable goods;
 Business on Sundays/Holidays - all establishments
and enterprises may operate or open for business on 5. Where the nature of the work requires continuous
Sunday and Holidays provided that the employees are operations and the stoppage of work may result in
given the weekly rest day and the befits as provided irreparable injury or loss to the employer;
in this Rule.
 Weekly Rest Day – every employer shall give his
6. Under other circumstances analogous or similar to
employees a rest period of not less than 24
the foregoing as determined by the Secretary of
consecutive hours after every six consecutive normal Labor and Employment; and
work days.
 Preference of employee – the preference of the
7. When the work is necessary to avail of favorable
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weather or environmental conditions where


performance or quality of work is dependent thereon.
Employees Not Covered by Holidays Pay
 When an employee volunteers to work on his rest 1. government employees;
day under other circumstances, he shall express such
desire in writing, he shall express such desire in 2. retail and service establishments regularly employing
writing, subject to payment of additional less than ten (10) workers;
compensation.
3. managerial employees;

Art. 93. Compensation for rest day, Sunday or holiday 4. field personnel and other employees whose time and
work. performance is unsupervised by the employer; and,

Where an employee is made or permitted to work on his 5. domestic helpers, and persons in the personal service
scheduled rest day, he shall be paid an additional of another.
compensation of at least thirty percent (30%) of his regular
wage. An employee shall be entitled to such additional Absences
compensation for work performed on Sunday only when it is
his established rest day.  Employee on leave of absence with pay – entitled to
the benefit provided herein.
When the nature of the work of the employee is such that he
has no regular workdays and no regular rest days can be  Employee on leave of absence without pay on the day
scheduled, he shall be paid an additional compensation of at immediately preceding a regular holiday – may not
least thirty percent (30%) of his regular wage for work be paid the required holiday pay if he has not worked
performed on Sundays and holidays. on such regular holiday.

Work performed on any special holiday shall be paid an  Where the day immediately preceding the holiday is
additional compensation of at least thirty percent (30%) of a non-working day in the establishment or the
the regular wage of the employee. Where such holiday work sche4duled rest day of the employee, he shall not be
falls on the employee’s scheduled rest day, he shall be entitled deemed to be on leave of absence on that day, in
to an additional compensation of at least fifty per cent (50%) which case he shall be entitled to the holiday pay if
of his regular wage. he worked on the day immediately preceding the
non-working day or rest day.
Where the collective bargaining agreement or other applicable
employment contract stipulates the payment of a higher  Temporary or Periodic Shutdown and Temporary
premium pay than that prescribed under this Article, the Cessation of Work (I.e inventory, repair of
employer shall pay such higher rate. equipment) – regular holidays falling within this
period is compensable.

Chapter III  Temporary or Periodic Shutdown and Temporary


HOLIDAYS, SERVICE INCENTIVE LEAVES AND Cessation of Work Due to Business Reverses –
SERVICE CHARGES regular holidays falling within this period is not
compensable.
Art. 94. Right to holiday pay.

Every worker shall be paid his regular daily wage during Holiday Pay of Certain Employees
regular holidays, except in retail and service establishments
regularly employing less than ten (10) workers; (a) Private School Teachers including faculty members
of college and universities – may not be paid regular
The employer may require an employee to work on any holidays during semestral vacations. Paid for the
holiday but such employee shall be paid a compensation regular holidays during Christmas vacation.
equivalent to twice his regular rate; and
(b) Employee Paid by Results (Payment on Piece Work)
As used in this Article, "holiday" includes: New Year’s Day, – holiday pay shall not be less than his average daily
Maundy Thursday, Good Friday, the ninth of April, the first of earnings for the last 7 actual working days preceding
May, the twelfth of June, the fourth of July, the thirtieth of the regular holiday; Provided however, that in no case
November, the twenty-fifth and thirtieth of December and the shall the holiday pay be less than the applicable
day designated by law for holding a general election.
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statutory minimum wage rate.  Worked:


o 1st 8 hrs -
(c) Seasonal Workers – may not be paid the required 200%
holiday pay during off-season when they are not at o Excess of 8 hrs -
work. +30% of hourly rate on
said day
(d) Workers Without Regular Working Days – entitled
to the benefits. b. If it is employee’s rest day:
 Unworked: - 100%
Double Holiday – an employee who is entitled to holiday pay  Worked:
should receive at least 200% of his basic wage even if he did o 1st 8 hrs -
not work on that day, provided, he was present or on leave +30% of 200%
with pay on the preceding work day. If he worked, he is o Excess of 8 hrs -
entitled to 300% of his basic wage. +30% of hourly rate on
said day
Successive Regular Holidays – where there are two (2)
successive regular holidays, an employee may not be paid for 2. Special Days
both holidays if he absents himself from work on the day
immediately preceding the first holiday, unless he works on  Unworked – no pay unless there is a
the first holiday, in which case he is entitled to his holiday pay favorable company policy, practice or
on the second holiday. CBA granting payment of wages on
special days even if unworked.
To be entitled to two (2) successive holidays, employee must:
(1) be present on the day immediately preceding the 1st  Worked
holiday; or (2) be on leave with pay.
o 1st 8 hrs -
Holidays +30% of the daily rate of
100%
1. New Year’s day - Jan. 1 o Excess of 8 hrs -
2. Maundy Thursday - Movable date +30% of hourly rate on
3. Good Friday - Movable date said day
4. Araw ng Kagitingan - April 9
5. Labor Day - May 1  Falling on employee’s rest day and if
6. Independence Day - June 12 worked
7. National heroes Day - Last Sunday of
August o 1st 8 hrs -
8. Bonifacio Day - Nov. 30 +50% of the daily rate of
9. Eidul Fit’r - Movable 100%
date o Excess of 8 hrs -
10. Christmas Day - Dec. 25 +30% of hourly rate on
11. Rizal Day - Dec. 30 said day

Special Days 3. Special Working Holidays – only basic rate

1. Special Non-working Days


2. Special Public Holidays
3. Special national Holiday Art. 95. Right to service incentive leave.
4. All Saint’s Day - Nov. 1
5. Last Day of the Year - Dec. 31 Every employee who has rendered at least one year of service
6. Ninoy Aquino Day - Aug. 21 shall be entitled to a yearly service incentive leave of five
days with pay.

Rules on Payment of Holiday Pay This provision shall not apply to those who are already
enjoying the benefit herein provided, those enjoying vacation
1. Regular Holidays leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees
a. If it is employee’s regular work day: or in establishments exempted from granting this benefit by
 Unworked: - 100% the Secretary of Labor and Employment after considering the
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viability or financial condition of such establishment. regardless of their positions, designations or employment
status, and irrespective of the method by which their wages are
The grant of benefit in excess of that provided herein shall not paid except to managerial employees.
be made a subject of arbitration or any court or administrative
action. Distribution

 Service Incentive Leave (SIL) is commutable to its  85% distributed equally among the covered
money equivalent if not used or exhausted at the end employees.
of the year.  15% for the disposition by management to answer
losses and breakages and distribution to managerial
At least 1 year service – service for not less than 12 months, employees at the discretion of the management in the
whether continuous or broken reckoned from the date the latter case.
employee started working.  Distributed and paid to the employees not less than
once every 2 weeks or twice a month at intervals not
Employees Not Covered by SIL exceeding 16 days.
 Supervisors share in the 15%. The Labor Code
1. government employees; speaks of “management,” not “managerial
employees.”
2. managerial employees;

3. field personnel and other employees whose time and Vacation Leave / Sick Leave – not required by law and
performance is unsupervised by the employer; depends on voluntary employer policy or collective
bargaining.
4. domestic helpers, and persons in the personal service
of another; Solo Parent Leave – a parental leave of not more than 7
working days every years shall be granted to any solo parent
5. those who are already enjoying the benefit herein employee who has rendered service of at least one (1) year.
provided;
 Solo parent – woman who gives birth as a result of
6. those enjoying vacation leave with pay of at least five
rape or crimes against chastity, a widow or widower,
(5) days;
a spouse separated legally or de facto for at least one
7. those employed in establishments regularly year and so forth. The claimant must show that
employing less than ten (10) employees; and, he/she is left alone with the responsibility of
parenthood.
8. those exempted by the Secretary of Labor.
Leave Under RA 9262 (Anti-Violence Against Women and
their Children Act of 2004) – allows the victim of violence,
which may be physical, sexual, or psychological, to apply for
the issuance of a protection order. If suchvictim is an
Art. 96. Service charges. employee, she is entitled to a paid leave of up to 10 days in
addition to other paid leaves under the Labor Code, other laws
All service charges collected by hotels, restaurants and similar and company policies.
establishments shall be distributed at the rate of eighty-five
percent (85%) for all covered employees and fifteen percent  The employee has to submit a certification from the
(15%) for management. The share of the employees shall be Punong Barangay or Kagawad, or prosecutor or clerk
equally distributed among them. In case the service charge is of court that an action under RA 9262 has been filed
abolished, the share of the covered employees shall be and is pending.
considered integrated in their wages.

Paternity Leave Act of 1996 (R.A. No. 88187)


Service Charges – apply only to establishments collecting
service charges such as hotels, restaurants, lodging houses, It grants seven days of paternity leave with full pay to married
nightclubs, cocktail lounge, massage clinics, bars, casinos and male employees in the private and public sectors. The
gambling houses, and similar enterprises, including those conditions for entitlement are:
entities operating primarily as private subsidiaries of the
Government. (a) the claimant, married male employee is employed at
the time of delivery of his child;
Employees covered – all employees of employers are covered,
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are paid a fixed amount for performing a specific


(b) he is cohabiting with his wife at the time she gives work, irrespective of the time consumed in the
birth or suffers a miscarriage; performance thereof, except where the workers are
paid on piece-rate basis in which case the employer
(c) he has applied for paternity leave in accordance with shall be covered by this issuance insofar as such
Sec. 4 of the law's implementing rules; workers are concerned.

(d) his wife has given birth or suffered a miscarriage. As used herein, workers paid on piece-rate basis shall refer to
those who are paid a standard amount for every piece or unit
 In the Revised Implementing Rules issued by DOLE of work produced that is more or less regularly replicated,
and the Department of Health, abortion has been without regard to the time spent in producing the same.
delisted from the coverage of paternity leave law.
The term "its equivalent" as used in paragraph c) hereof shall
 Moreover, the entitlement of leave is seven calendar include Christmas bonus, mid-year bonus nd other cash
days. bonuses amounting to not less than 1/12th of the basic salary
but shall not include cash and stock dividends, cost of living
allowances and all other allowances regularly enjoyed by the
employee, as well as non-monetary benefits.
PRESIDENTIAL DECREE NO. 851
Requiring All Employers to Pay Their Employees A 13th- Minimum amount - the minimum 13th month pay required by
Month Pay law shall not be less than 1/12 of the total basic salary earned
by an employee within a calendar year.

Basic Salary - for the purpose of computing the 13th month


Revised Guidelines on the Implementation of the 13th
pay shall include all remuneration or earning paid by his
Month pay Law
employer for services rendered but does not include
allowances and monetary benefits which are considered or
integrated as part of the regular or basic salary, such as the
Payment of 13th-month Pay. - All employers are hereby cash equivalent of unused vacation and sick leave credits,
required to pay all their rank-and-file employees a 13th- overtime premium, night differential and holiday pay, and cost
month pay not later than December 24 of every year. of living allowances.
Thirteenth-month pay – shall mean one twelfth (1/12) of the
basic salary of an employee within a calendar year; 13th-month Pay for Certain Types of Employees

a. Employees paid by results – entitled to the mandated


Employers covered. - The Decree shall apply to all 13th-month pay based on their total earnings during
employers the calendar year.
except to: b. Those with multiple employer – entitled to the
required 13th month pay from all their private
employers regardless of their total earnings from each
(a) The Government and any of its political or all of their employers.
subdivisions, including government-owned and
controlled corporations, except those corporations c. Private school teachers – entitled to the required 13th
operating essentially as private subsidiaries of the month pay if they have rendered service for at least
Government; one (1) month within a year.
(b) Employers already paying their employees 13-
month pay or more in a calendar year or its
equivalent at the time of this issuance;

(c) Employers of household helpers and persons in the


personal service of another in relation to such
workers; and

(d) Employers of those who are paid on purely


commission, boundary, or task basis, and those who
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13th-month Pay of resigned or Separated Employee Wage Includes Facilities or Commodities (Art. 97 (f)

Such resigned or separated employee is entitled of the amount Facilities – include articles or services (such as board and
equivalent to 1/12 of his total basic salary earned during such lodging) for the benefit of the employee or his family (IRR of
year when he was still working with his employer. the Labor Code).

Consistent with the principle of equity, the employer can also


require the employee to demand the employee to clear himself Facilities as Distinguished from Supplements
of all the liabilities and accountabilities upon the termination
of the relationship. Supplement – when the benefit or privilege given to the
employee constitute an extra remuneration over and above his
basic or ordinary earning or wage. It is not wage deductible.

Requirements for facilities to be wage-deductible

Title II (a) Proof must be shown that such facilities are


WAGES customarily furnished by the trade;
(b) Provision of deductible facilities must be voluntarily
Chapter I accepted in writing by the employee; and,
PRELIMINARY MATTERS (c) facilities must be charged at fair and reasonable value
as determined by the Secretary of Labor and
Employment.

Art. 97. Definitions.


As used in this Title: Art. 98. Application of Title.

Person – means an individual, partnership, association, This Title shall not apply to farm tenancy or leasehold,
corporation, business trust, legal representatives, or any domestic service and persons working in their respective
organized group of persons. homes in needle work or in any cottage industry duly
registered in accordance with law.
Employer – includes any person acting directly or indirectly
in the interest of an employer in relation to an employee and  The intention of this article is to exclude small
shall include the government and all its branches, subdivisions businesses that probably cannot afford to pay the
and instrumentalities, all government-owned or controlled wage rates set by law.
corporations and institutions, as well as non-profit private
institutions, or organizations.
Chapter II
Employee – includes any individual employed by an MINIMUM WAGE RATES
employer.

Employ – includes to suffer or permit to work. Art. 99. Regional minimum wages.

Wage – paid to any employee shall mean the remuneration or The minimum wage rates for agricultural and non-
earnings, however designated, capable of being expressed in agricultural employees and workers in each and every region
terms of money, whether fixed or ascertained on a time, task, of the country shall be those prescribed by the Regional
piece, or commission basis, or other method of calculating the Tripartite Wages and Productivity Boards. (As amended by
same, which is payable by an employer to an employee under Section 3, Republic Act No. 6727, June 9, 1989).
a written or unwritten contract of employment for work done
or to be done, or for services rendered or to be rendered and  Who sets minimum wage?
includes the fair and reasonable value, as determined by the o Regional Tripartite Wages and Productivity
Secretary of Labor and Employment, of board, lodging, or Board
other facilities customarily furnished by the employer to the o Congress
employee.
Minimum wage – the lowest wage rate fixed by law that an
employer can pay his employees.

Complaint may be brought before the DOLE regional office


(Art. 129) or Labor Arbiter (Art. 217).
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A worker is daily-paid if he gets paid only for days he actually But if the amount is lower than the legal daily rate, the
worked. employer must make up the difference.

A worker is monthly-paid if his monthly rate covers all the Piece-rate Employees are Entitled to the Following
days of the month. Minimum Wage and Benefits

Agricultural wage rates are generally lower than the industrial. (a) the applicable statutory minimum daily rate
Agricultural rate applies to farm work from land preparation (b) yearly service incentive leave of five (5) days with
to harvesting; industrial rate applies to manufacturing or pay
processing of farm products. (c) night shift differential pay
(d) holiday pay
(e) meal and rest periods
Art. 100. Prohibition against elimination or diminution of (f) overtime pay (conditional)
benefits. (g) premium pay
(h) 13th month pay
Nothing in this Book shall be construed to eliminate or in any (i) other benefits granted by law, individual or collective
way diminish supplements, or other employee benefits being agreement or company policy or practice.
enjoyed at the time of promulgation of this Code.
Chapter III
Non-diminution rule – it essentially means that benefits PAYMENT OF WAGES
being given to employees cannot be taken back or reduced
unilaterally by the employer because the benefit has become Art. 102. Forms of payment.
part of the employment contract, written or unwritten.
No employer shall pay the wages of an employee by means of
Exceptions: promissory notes, vouchers, coupons, tokens, tickets, chits, or
any object other than legal tender, even when expressly
(a) if the practice is due to error (but it must be done requested by the employee.
soon after the discovery of the error);
(b) the benefit being claimed is a contingent or Payment of wages by check or money order shall be allowed
conditional benefit when such manner of payment is customary on the date of
effectivity of this Code, or is necessary because of special
circumstances as specified in appropriate regulations to be
Art. 101. Payment by results. issued by the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
The Secretary of Labor and Employment shall regulate the
payment of wages by results, including pakyao, piecework,
and other non-time work, in order to ensure the payment of
fair and reasonable wage rates, preferably through time and
motion studies or in consultation with representatives of
workers’ and employers’ organizations.

Piece-rate workers may be subdivided into two categories

(a) those who are paid piece rates which are prescribed
in Piece Rate Orders issued by DOLE;

(b) those who are paid output rates which are prescribed
by the employer and are not yet approved by the
DOLE.

Under the first category, wages or earnings are determined by


simply multiplying the number of pieces produced by the pay
rate per piece.

Under the second category, the number of pieces produced is


multiplied by the rate per piece as determined by the
employer.
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Art. 103. Time of payment. may be paid through another person under written
authority given by the worker for the purpose; or
General Rule: Wages shall be paid at least once every two
(2) weeks or twice a month at intervals not exceeding sixteen  Where the worker has died, in which case, the
(16) days. employer may pay the wages of the deceased worker
to the heirs of the latter without the necessity of
Exception: If on account of force majeure or circumstances intestate proceedings. The claimants, if they are all of
beyond the employer’s control payment of wages on or within age, shall execute an affidavit attesting to their
the time herein provided cannot be made relationship to the deceased and the fact that they are
his heirs, to the exclusion of all other persons. If any
 The employer shall pay the wages immediately after of the heirs is a minor, the affidavit shall be executed
such force majeure or circumstances have ceased. on his behalf by his natural guardian or next-of-kin.
No employer shall make payment with less frequency The affidavit shall be presented to the employer who
than once a month. shall make payment through the Secretary of Labor
and Employment or his representative. The
The payment of wages of employees engaged to perform a representative of the Secretary of Labor and
task which cannot be completed in two (2) weeks shall be Employment shall act as referee in dividing the
subject to the following conditions, in the absence of a amount paid among the heirs. The payment of wages
collective bargaining agreement or arbitration award: under this Article shall absolve the employer of any
further liability with respect to the amount paid.
(a) That payments are made at intervals not exceeding
sixteen (16) days, in proportion to the amount of
Art. 106. Contractor or subcontractor.
work completed;
Whenever an employer enters into a contract with another
(b) That final settlement is made upon completion of the person for the performance of the former’s work, the
work. employees of the contractor and of the latter’s subcontractor, if
any, shall be paid in accordance with the provisions of this
The IRR of the Code requires every employer to pay his Code.
employees through payroll. They payroll should clearly,
among other data, the employee's pay rate, the deductions In the event that the contractor or subcontractor fails to
made, and the amount actually paid. pay the wages of his employees in accordance with this
Code:
Also required are employees' individual time records.
 the employer shall be jointly and severally liable
with his contractor or subcontractor to such
Art. 104. Place of payment. employees---

General Rule: Payment of wages shall be made at or near ▪ to the extent of the work performed under
the place of undertaking the contract, in the

Exception: As otherwise provided by such regulations as the ▪ same manner and extent that he is liable to
Secretary of Labor and Employment may prescribe under employees directly employed by him.
conditions to ensure greater protection of wages.
The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the contracting-
Art. 105. Direct payment of wages. out of labor to protect the rights of workers established under
this Code. In so prohibiting or restricting, he may make
General Rule: Wages shall be paid directly to the workers to appropriate distinctions between (a) labor-only contracting
whom they are due. and (b) job contracting as well as differentiations within
these types of contracting and determine who among the
Exceptions: parties involved shall be considered the employer for purposes
of this Code, to prevent any violation or circumvention of any
 In cases of force majeure rendering such payment provision of this Code.
impossible or

 under other special circumstances to be determined


by the Secretary of Labor and Employment in
appropriate regulations, in which case, the worker
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Types of Contracting-out of Labor performance or completion of a specific job, work or service


within a definite or predetermined period regardless of
(a) Labor-only contracting ( which is prohibited under whether such job, work or service is to be performed or
DO No. 18-02) completed within or outside the premises of the principal.

(b) Job Contracting (which is permissible under DO. No. More Contracting Prohibitions Under Section 6 of D.O.
18-02) No. 18-02
Labor-only contracting – where the person supplying (a) contracting out that results in termination of regular
workers to an employer: employees and reduction of work hours or reduction
or splitting of the bargaining unit (such contracting
(a) does not have substantial capital or investment in the out is prohibited only if it is not done in good faith
form of tools, equipment, machineries, work and not justified by exigencies of the business);
premises, among others, and
(b) requiring the contractor's employee to perform, aside
(b) the workers recruited and placed by such person are from his assigned functions, the functions of regular
performing activities which are directly related to the employees;
principal business of such employer.
(c) requiring the contractor's employee to sign a waiver
▪ In such cases, the person or intermediary of labor standards, or a quitclaim freeing the principal
shall be considered merely as an agent of or contractor from liability for future claims;
the employer who shall be responsible to the
workers in the same manner and extent as if (d) make the contractor's employee sign a contract fixing
the latter were directly employed by him. the period of employment to a term shorter than the
term of the contract between the principal and the
contractor unless the latter contract is divisible into
phases for which substantially different skills are
(c) the contractor does not exercise the right to control required and this (fact) is made known to the
the performance of the work of the contractual employee at the time of the engagement.
employee (as provided in DO No. 18-02).
All in all, the additional prohibitions refer to schemes which:
Job Contractor – someone who: (a) skirt around the workers' rights to security of tenure and to
self-organize, or which (b) take advantage of the economic
(a) carries on an independent business and undertakes
hardship of the contractual employees.
the contracted work on his own manner and method,
free from the control and direction of his employer or They are circumventive and exploitative schemes.
principal in all the matters connected with the
performance of the work, except as to the results
thereof; and
Art. 107. Indirect employer.
(b) has substantial capital or investment in the form of
tools, equipment, machineries, work premises, and The provisions of the immediately preceding article shall
other materials necessary to conduct the business. likewise apply to any person, partnership, association or
corporation which, not being an employer, contracts with an
 Court decisions have been using “job contractor” independent contractor for the performance of any work,
and “independent contractor” interchangeably. task, job or project.
To contract out is a proprietary right of employer to exercise
an inherent management prerogative, unless such employer
is acting in a malicious or arbitrary manner. Art. 108. Posting of bond.

The employer has the right to “promote efficiency and attain An employer or indirect employer may require the contractor
economy” and to determine whether services “should be or subcontractor to furnish a bond equal to the cost of labor
performed by its personnel or contracted to outside under contract, on condition that the bond will answer for the
agencies.” Unless it is proved that management acted in a wages due the employees should the contractor or
malicious or arbitrary manner, “ the Court will not interfere subcontractor, as the case may be, fail to pay the same.
with the exercise of judgment by an employer.”

Contracting – an arrangement whereby a principal agrees to


put out or farm out with a contractor or subcontractor the
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Art. 109. Solidary liability. Art. 113. Wage deduction.

The provisions of existing laws to the contrary General Rule: No employer, in his own behalf or in behalf of
notwithstanding, every employer or indirect employer shall be any person, shall make any deduction from the wages of his
held responsible with his contractor or subcontractor for any employees.
violation of any provision of this Code. For purposes of
determining the extent of their civil liability under this Exceptions:
Chapter, they shall be considered as direct employers.
(a) In cases where the worker is insured with his
If the liability is in the nature of penalty, such as backwages consent by the employer, and the deduction is to
and separation pay because of a wrongful dismissal, the recompense the employer for the amount paid by
liability should be solely that of the contractor if there is no him as premium on the insurance;
proof that the principal conspired with the contractor in
committing the wrongful dismissal of the contractor's worker. (b) For union dues, in cases where the right of the
worker or his union to check-off has been recognized
by the employer or authorized in writing by the
Art. 110. Worker preference in case of bankruptcy. individual worker concerned; and

In the event of bankruptcy or liquidation of an employer’s (c) In cases where the employer is authorized by law or
business, his workers shall enjoy first preference as regards regulations issued by the Secretary of Labor and
their wages and other monetary claims, any provisions of law Employment.
to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the Additional to the Authorized Deductions
government and other creditors may be paid. (As amended by
Section 1, Republic Act No. 6715, March 21, 1989) (a) In cases where the employee is indebted to the
employer, where such indebtedness has become due
Liquidation – is what happens when a corporation terminates and demandable;
its corporate existence: it settles and closes its affairs by
disposing of its assets and paying off its debts, including (b) In court awards, wages may be subject of execution
claims of its employees. or attachment, but only for debts incurred for food,
shelter, clothing, and medical attendance;
Art. 111. Attorney’s fees.
(c) Withholding tax;
In cases of unlawful withholding of wages, the culpable
party may be assessed attorney’s fees equivalent to ten (d) Salary deductions of a member of a legally
percent of the amount of wages recovered. established cooperative;

It shall be unlawful for any person to demand or accept, in (e) Deductions for payment to third persons, upon
any judicial or administrative proceedings for the recovery of written authorization of the employee;
wages, attorney’s fees which exceed ten percent of the
amount of wages recovered. (f) Union dues;
Chapter IV
PROHIBITIONS REGARDING WAGES (g) Agency fee;

(h) Deductions for value of meal and other facilities;

Art. 112. Non-interference in disposal of wages. (i) Deductions for loss or damage;

No employer shall limit or otherwise interfere with the (j) SSS, Medicare, PagIBIG premiums.
freedom of any employee to dispose of his wages. He shall
not in any manner force, compel, or oblige his employees to Under the circumstance of employee's payment obligation to a
purchase merchandise, commodities or other property from third person, the employer may agree to make deduction but is
any other person, or otherwise make use of any store or not obliged to do so. He must not receive any pecuniary
services of such employer or any other person. benefit, directly or indirectly, from the transaction.

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Art. 114. Deposits for loss or damage. of employment or retention in employment.

General Rule: No employer shall require his worker to make


deposits from which deductions shall be made for the Art. 118. Retaliatory measures.
reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer. It shall be unlawful for an employer:

Exceptions: When the employer is engaged in such trades,  to refuse to pay or


occupations or business where the practice of making  reduce the wages and benefits,
deductions or requiring deposits is a recognized one, or is  discharge or in any manner discriminate against any
necessary or desirable as determined by the Secretary of employee who has filed any complaint or instituted
Labor and Employment in appropriate rules and regulations. any proceeding under this Title
 or has testified or is about to testify in such
proceedings.
Art. 115. Limitations.

No deduction from the deposits of an employee for the actual Art. 119. False reporting.
amount of the loss or damage shall be made unless the
employee has been heard thereon, and his responsibility has It shall be unlawful for any person to make any statement,
been clearly shown. report, or record filed or kept pursuant to the provisions of
this Code knowing such statement, report or record to be
Four Conditions to Met Before Payments for Lost or false in any material respect.
Damaged Equipment May Be Deducted

(a) the employee is shown to be responsible for the loss Chapter V


or damage; WAGE STUDIES, WAGE AGREEMENTS AND WAGE
DETERMINATION
(b) the employee is given ample opportunity to show
cause why deduction should not be made; Art. 120. Creation of National Wages and Productivity
Commission.
(c) the amount of the deduction is fair and reasonable
and shall not exceed the actual loss or damage; and, There is hereby created a National Wages and Productivity
Commission, hereinafter referred to as the Commission, which
(d) the deduction from the employee's wage does not shall be attached to the Department of Labor and
exceed 20% of the employee's wages in a week. Employment (DOLE) for policy and program coordination.
(As amended by Republic Act No. 6727, June 9, 1989).

Art. 116. Withholding of wages and kickbacks prohibited.


Art. 121. Powers and functions of the Commission.
It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce The Commission shall have the following powers and
him to give up any part of his wages by force, stealth, functions:
intimidation, threat or by any other means whatsoever without
the worker’s consent. (a) To act as the national consultative and advisory body
to the President of the Philippines and Congress on
The earned wages must be paid on time and in full. The matters relating to wages, incomes and productivity;
employer cannot refuse to pay the wages because the
employee has not yet submitted a required report or has (b) To formulate policies and guidelines on wages,
violated certain company policy. The inefficiency or incomes and productivity improvement at the
violation can be acted upon in some way but not by enterprise, industry and national levels;
withholding the wages.
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
Art. 117. Deduction to ensure employment. productivity measures at the regional, provincial, or
industry levels;
It shall be unlawful to make any deduction from the wages
of any employee for the benefit of the employer or his (d) To review regional wage levels set by the Regional
representative or intermediary as consideration of a promise Tripartite Wages and Productivity Boards to
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determine if these are in accordance with prescribed Bureau Director. The members of the Commission
guidelines and national development plans; representing labor and management shall have the same rank,
emoluments, allowances and other benefits as those prescribed
(e) To undertake studies, researches and surveys by law for labor and management representatives in the
necessary for the attainment of its functions and Employees’ Compensation Commission. (As amended by
objectives, and to collect and compile data and Republic Act No. 6727, June 9, 1989)
periodically disseminate information on wages and
productivity and other related information, including, Art. 122. Creation of Regional Tripartite Wages and
but not limited to, employment, cost-of-living, labor Productivity Boards.
costs, investments and returns;
There is hereby created Regional Tripartite Wages and
(f) To review plans and programs of the Regional Productivity Boards, hereinafter referred to as Regional
Tripartite Wages and Productivity Boards to Boards, in all regions, including autonomous regions as may
determine whether these are consistent with national be established by law. The Commission shall determine the
development plans; offices/headquarters of the respective Regional Boards.

(g) To exercise technical and administrative supervision Powers and functions of the Regional Boards in their
over the Regional Tripartite Wages and Productivity respective territorial jurisdictions
Boards;
(a) To develop plans, programs and projects relative to
(h) To call, from time to time, a national tripartite wages, incomes and productivity improvement for
conference of representatives of government, their respective regions;
workers and employers for the consideration of
measures to promote wage rationalization and (b) To determine and fix minimum wage rates
productivity; and applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders,
(i) To exercise such powers and functions as may be subject to guidelines issued by the Commission;
necessary to implement this Act.
(c) To undertake studies, researches, and surveys
The Commission shall be composed of necessary for the attainment of their functions,
objectives and programs, and to collect and compile
(a) the Secretary of Labor and Employment as ex-officio data on wages, incomes, productivity and other
chairman, related information and periodically disseminate the
same;
(b) the Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice- (d) To coordinate with the other Regional Boards as
chairman, may be necessary to attain the policy and intention of
this Code;
(c) and two (2) members each from workers’ and
employers’ sectors who shall be appointed by the (e) To receive, process and act on applications for
President of the Philippines upon recommendation of exemption from prescribed wage rates as may be
the Secretary of Labor and Employment to be made provided by law or any Wage Order; and
on the basis of the list of nominees submitted by the
workers’ and employers’ sectors, respectively, and (f) To exercise such other powers and functions as may
who shall serve for a term of five (5) years. The be necessary to carry out their mandate under this
Executive Director of the Commission shall also be a Code.
member of the Commission.
Implementation of the plans, programs, and projects of the
The Commission shall be assisted by a Secretariat to be Regional Boards referred to in the second paragraph, letter (a)
headed by an Executive Director and two (2) Deputy of this Article, shall be through the respective regional
Directors, who shall be appointed by the President of the offices of the Department of Labor and Employment within
Philippines, upon the recommendation of the Secretary of their territorial jurisdiction; Provided, however, That the
Labor and Employment. Regional Boards shall have technical supervision over the
regional office of the Department of Labor and Employment
The Executive Director shall have the same rank, salary, with respect to the implementation of said plans, programs and
benefits and other emoluments as that of a Department projects.
Assistant Secretary, while the Deputy Directors shall have the
same rank, salary, benefits and other emoluments as that of a
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Productivity Boards (RTWPB) without the approval of or,


Each Regional Board shall be composed of worse, contrary to those promulgated by the National Wages
and Productivity Commission (NWPC), are ineffectual, void
(a) the Regional Director of the Department of Labor and cannot be the source of rights and privileges.
and Employment as chairman,
A wage order issued without the required public consultation
(b) the Regional Directors of the National Economic and and newspaper publication is null and void.
Development Authority and the Department of Trade
and Industry as vice-chairmen and Refusal or Failure to Comply with a Wage Order (RA
8188)
(c) two (2) members each from workers’ and employers’
sectors who shall be appointed by the President of the  Refusal or failure to comply with a wage order is
Philippines, upon the recommendation of the punishable
Secretary of Labor and Employment, to be made on ▪ with fine ranging from P25,000 to P1,000.00
the basis of the list of nominees submitted by the or
workers’ and employers’ sectors, respectively, and
who shall serve for a term of five (5) years. ▪ imprisonment from two to four years or

Each Regional Board to be headed by its chairman shall be ▪ both fine and imprisonment;
assisted by a Secretariat. (As amended by Republic Act No.
6727, June 9, 1989)  The employer shall further be ordered to pay an
amount double the unpaid benefits owing to the
employee.
Art. 123. Wage Order.
Employees Not Covered by Wage Order
Whenever conditions in the region so warrant, the Regional
Board shall investigate and study all pertinent facts; and based a. Household or domestic helpers, and workers in the
on the standards and criteria herein prescribed, shall proceed personal service of another;
to determine whether a Wage Order should be issued. b. Workers and employees in retail/service
establishments regularly employing not more than 10
Any such Wage Order shall take effect after fifteen (15) days workers; and,
from its complete publication in at least one (1) newspaper of c. Workers and employees in new business enterprises
general circulation in the region. outside the NC and export processing zobnes for a
period of not more than two or three years.
In the performance of its wage-determining functions, the
Regional Board shall conduct public hearings/consultations,
giving notices to employees’ and employers’ groups,
provincial, city and municipal officials and other interested
parties.

Any party aggrieved by the Wage Order issued by the


Regional Board may appeal such order to the Commission
within ten (10) calendar days from the publication of such
order.

It shall be mandatory for the Commission to decide such


appeal within sixty (60) calendar days from the filing
thereof.

The filing of the appeal does not stay the order unless the
person appealing such order shall file with the Commission,
an undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the
order of the corresponding increase, in the event such order is
affirmed. (As amended by Republic Act No. 6727, June 9,
1989)

Guidelines issued by the Regional Tripartite Wages and


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Art. 124. Standards/Criteria for minimum wage fixing.  The employer and the union shall negotiate to
correct the distortions.
The regional minimum wages to be established by the
Regional Board shall be as nearly adequate as is economically  Any dispute arising from wage distortions shall be
feasible to maintain the minimum standards of living resolved through the grievance procedure under
necessary for the health, efficiency and general well-being of their collective bargaining agreement
the employees within the framework of the national economic
and social development program. In the determination of such  and, if it remains unresolved, through voluntary
regional minimum wages, the Regional Board shall, among arbitration. Unless otherwise agreed by the parties in
other relevant factors, consider the following: writing, such dispute shall be decided by the
voluntary arbitrators within ten (10) calendar days
(a) The demand for living wages; from the time said dispute was referred to voluntary
arbitration.
(b) Wage adjustment vis-à-vis the consumer price index;

(c) The cost of living and changes or increases therein; In cases where there are no collective agreements or
recognized labor unions:
(d) The needs of workers and their families;
 The employers and workers shall endeavor to
(e) The need to induce industries to invest in the correct such distortions.
countryside;
 Any dispute arising therefrom shall be settled
(f) Improvements in standards of living; through the National Conciliation and Mediation
Board and,
(g) The prevailing wage levels;
 if it remains unresolved after ten (10) calendar days
(h) Fair return of the capital invested and capacity to pay of conciliation, shall be referred to the appropriate
of employers; branch of the National Labor Relations
Commission (NLRC). It shall be mandatory for the
(i) Effects on employment generation and family NLRC to conduct continuous hearings and decide the
income; and dispute within twenty (20) calendar days from the
time said dispute is submitted for compulsory
(j) The equitable distribution of income and wealth arbitration.
along the imperatives of economic and social
development. The pendency of a dispute arising from a wage distortion
shall not in any way delay the applicability of any increase in
The wages prescribed in accordance with the provisions of this prescribed wage rates pursuant to the provisions of law or
Title shall be the standard prevailing minimum wages in every wage order.
region. These wages shall include wages varying with
industries, provinces or localities if in the judgment of the Wage distortion – means a situation where an increase in
Regional Board, conditions make such local differentiation prescribed wage rates results in the elimination or severe
proper and necessary to effectuate the purpose of this Title. contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an
Any person, company, corporation, partnership or any other establishment as to effectively obliterate the distinctions
entity engaged in business shall file and register annually embodied in such wage structure based on skills, length of
with the appropriate Regional Board, Commission and the service, or other logical bases of differentiation.
National Statistics Office, an itemized listing of their labor
component, specifying the names of their workers and All workers paid by result, including those who are paid on
employees below the managerial level, including learners, piecework, takay, pakyaw or task basis, shall receive not less
apprentices and disabled/handicapped workers who were hired than the prescribed wage rates per eight (8) hours of work a
under the terms prescribed in the employment contracts, and day, or a proportion thereof for working less than eight (8)
their corresponding salaries and wages. hours.

Where the application of any prescribed wage increase by All recognized learnership and apprenticeship agreements
virtue of a law or wage order issued by any Regional shall be considered automatically modified insofar as their
Board results in distortions of the wage structure within an wage clauses are concerned to reflect the prescribed wage
establishment: rates. (As amended by Republic Act No. 6727, June 9, 1989)

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Wage distortion – simply means that if the pay advantage of a Title III
position over another is removed or significantly reduced by a WORKING CONDITIONS FOR
pay adjustment required by a wage order, such pay advantage SPECIAL GROUPS OF EMPLOYEES
should somehow be restored.
Chapter I
Job levels – are determined by using such grading factors as EMPLOYMENT OF WOMEN
skills requirement, degrees of responsibility, knowledge
required, working conditions, or some similar factors. Art. 130. Nightwork prohibition.

The job grades aim to approximate the relative importance of No woman, regardless of age, shall be employed or permitted
jobs and to pay them accordingly: the higher the job level, the or suffered to work, with or without compensation:
higher the pay grade.
(a) In any industrial undertaking or branch thereof
If the duly established pay level differentations in the between ten o’clock at night and six o’clock in the
company are obliterated or severely contracted, such that the morning of the following day; or
previous pay gaps are gone or almost gone, then there is salary
distortion. (b) In any commercial or non-industrial undertaking or
branch thereof, other than agricultural, between
Any issue involving wage distortion is not a valid ground for a midnight and six o’clock in the morning of the
strike or lockout. following day; or

Pay disparity of same comparable jobs in different regions (c) In any agricultural undertaking at nighttime unless
cannot be considered a wage distortion. she is given a period of rest of not less than nine (9)
consecutive hours.
Wage distortion involves comparison of job located in the
same region. Art. 131. Exceptions.
Examination of alleged salary distortion is limited to jobs or
position in the same employer in the same region. The prohibitions prescribed by the preceding Article shall not
apply in any of the following cases:

Art. 125. Freedom to bargain. (a) In cases of actual or impending emergencies caused
by serious accident, fire, flood, typhoon, earthquake,
No wage order shall be construed to prevent workers in epidemic or other disasters or calamity, to prevent
particular firms or enterprises or industries from bargaining loss of life or property, or in cases of force majeure
for higher wages with their respective employers. (As or imminent danger to public safety;
amended by Republic Act No. 6727, June 9, 1989)
(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid
Art. 126. Prohibition against injunction. serious loss which the employer would otherwise
suffer;
No preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal or (c) Where the work is necessary to prevent serious loss
other entity against any proceedings before the Commission of perishable goods;
or the Regional Boards. (As amended by Republic Act No.
6727, June 9, 1989) (d) Where the woman employee holds a responsible
position of managerial or technical nature, or where
the woman employee has been engaged to provide
Art. 127. Non-diminution of benefits. health and welfare services;

No wage order issued by any regional board shall provide for (e) Where the nature of the work requires the manual
wage rates lower than the statutory minimum wage rates skill and dexterity of women workers and the same
prescribed by Congress. (As amended by Republic Act No. cannot be performed with equal efficiency by male
6727, June 9, 1989) workers;

(f) Where the women employees are immediate


members of the family operating the establishment or
undertaking; and

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(g) Under other analogous cases exempted by the Maternity Leave under the SS Law
Secretary of Labor and Employment in appropriate
regulations. Sec. 14-A. Maternity Leave Benefit. - A female member who
has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of her
Art. 132. Facilities for women. childbirth or miscarriage shall be paid a daily maternity
benefit equivalent to one hundred percent (100%) of her
The Secretary of Labor and Employment shall establish average daily salary credit for 60 days or 78 days in case of
standards that will ensure the safety and health of women caesarian delivery, subject to the following conditions:
employees. In appropriate cases, he shall, by regulations,
require any employer to: (a) employee shall have notified her employer of her
pregnancy and the probable date of her childbirth,
(a) Provide seats proper for women and permit them to which notice shall be transmitted to the SSS;
use such seats when they are free from work and
during working hours, provided they can perform (b) full payment shall be advanced by the employer
their duties in this position without detriment to within 30 days from filing of the maternity leave
efficiency; application;

(b) To establish separate toilet rooms and lavatories for (c) payment of daily maternity benefits shall be a bar to
men and women and provide at least a dressing the recovery of sickness benefits to be received;
room for women;
(d) maternity benefits shall be paid only for the first four
(c) To establish a nursery in a workplace for the benefit deliveries or miscarriages;
of the women employees therein; and
(e) the SSS shall immediately reimburse the employer of
(d) To determine appropriate minimum age and other 100% of the amount of maternity benefits advanced
standards for retirement or termination in special to the employee;
occupations such as those of flight attendants and the
like. (f) if an employee member should give birth or suffer
miscarriage without the required contribution, the
employer shall pay to the SSS damages equivalent to
Art. 133. Maternity leave benefits. the benefits which said employee member would
otherwise have been entitled to.
(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) Art. 134. Family planning services; incentives for family
months, maternity leave of at least two (2) weeks planning.
prior to the expected date of delivery and another
four (4) weeks after normal delivery or abortion (a) Establishments which are required by law to
with full pay based on her regular or average weekly maintain a clinic or infirmary shall provide free
wages. The employer may require from any woman family planning services to their employees which
employee applying for maternity leave the production shall include, but not be limited to, the application or
of a medical certificate stating that delivery will use of contraceptive pills and intrauterine devices.
probably take place within two weeks.
(b) In coordination with other agencies of the
(b) The maternity leave shall be extended without pay government engaged in the promotion of family
on account of illness medically certified to arise out planning, the Department of Labor and Employment
of the pregnancy, delivery, abortion or miscarriage, shall develop and prescribe incentive bonus schemes
which renders the woman unfit for work, unless she to encourage family planning among female
has earned unused leave credits from which such workers in any establishment or enterprise.
extended leave may be charged.

(c) The maternity leave provided in this Article shall be


paid by the employer only for the first four (4)
deliveries by a woman employee after the effectivity
of this Code.

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Art. 135. Discrimination prohibited. may again be pregnant.

It shall be unlawful for any employer to discriminate against


any woman employee with respect to terms and conditions of Art. 138. Classification of certain women workers.
employment solely on account of her sex.
Any woman who is permitted or suffered to work, with or
The following are acts of discrimination: without compensation, in any night club, cocktail lounge,
massage clinic, bar or similar establishments under the
(a) Payment of a lesser compensation, including wage, effective control or supervision of the employer for a
salary or other form of remuneration and fringe substantial period of time as determined by the Secretary of
benefits, to a female employees as against a male Labor and Employment, shall be considered as an employee
employee, for work of equal value; and of such establishment for purposes of labor and social
legislation.
(b) Favoring a male employee over a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of REPUBLIC ACT NO. 7877
their sexes.
An Act Declaring Sexual Harassment Unlawful in the
Criminal liability for the willful commission of any unlawful Employment, Education or Training Environment, and for
act as provided in this Article or any violation of the rules and Other Purposes
regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code:
Provided, That the institution of any criminal action under
this provision shall not bar the aggrieved employee from
SECTION 2. Declaration of Policy. - The State shall value
filing an entirely separate and distinct action for money
the dignity of every individual, enhance the development of
claims, which may include claims for damages and other
its human resources, guarantee full respect for human rights,
affirmative reliefs. The actions hereby authorized shall
and uphold the dignity of workers, employees, applicants for
proceed independently of each other. (As amended by
employment, students or those undergoing training, instruction
Republic Act No. 6725, May 12, 1989)
or education. Towards this end, all forms of sexual
harassment in the employment, education or training
environment are hereby declared unlawful.
Art. 136. Stipulation against marriage.
SECTION 3. Work, Education or Training -Related, Sexual
It shall be unlawful for an employer to require as a condition
Harassment Defined. - Work, education or training-related
of employment or continuation of employment that a woman
sexual harassment is committed by an employer, employee,
employee shall not get married, or to stipulate expressly or
manager, supervisor, agent of the employer, teacher, instructor,
tacitly that upon getting married, a woman employee shall be
professor, coach, trainor, or any other person who, having
deemed resigned or separated, or to actually dismiss,
authority, influence or moral ascendancy over another in a
discharge, discriminate or otherwise prejudice a woman
work or training or education environment, demands,
employee merely by reason of her marriage.
requests or otherwise requires any sexual favor from the
other, regardless of whether the demand, request or
requirement for submission is accepted by the object of said
Art. 137. Prohibited acts.
Act.
It shall be unlawful for any employer:
(a) In a work-related or employment environment, sexual
harassment is committed when:
(1) To deny any woman employee the benefits provided
for in this Chapter or to discharge any woman
(1) The sexual favor is made as a condition in the
employed by him for the purpose of preventing her
hiring or in the employment, re-employment or
from enjoying any of the benefits provided under
continued employment of said individual, or in
this Code.
granting said individual favorable compensation,
terms of conditions, promotions, or privileges; or
(2) To discharge such woman on account of her
the refusal to grant the sexual favor results in
pregnancy, or while on leave or in confinement due
limiting, segregating or classifying the employee
to her pregnancy;
which in any way would discriminate, deprive
ordiminish employment opportunities or otherwise
(3) To discharge or refuse the admission of such
adversely affect said employee;
woman upon returning to her work for fear that she
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(b) Create a committee on decorum and investigation


(2) The above acts would impair the employee's rights of cases on sexual harassment. The committee shall
or privileges under existing labor laws; or conduct meetings, as the case may be, with officers
and employees, teachers, instructors, professors,
(3) The above acts would result in an intimidating, coaches, trainors, and students or trainees to increase
hostile, or offensive environment for the employee. understanding and prevent incidents of sexual
harassment. It shall also conduct the investigation of
(b) In an education or training environment, sexual alleged cases constituting sexual harassment.
harassment is committed:
In the case of a work-related environment, the committee
(1) Against one who is under the care, custody or shall be composed of at least one (1) representative each
supervision of the offender; from the management, the union, if any, the employees from
the supervisory rank, and from the rank and file employees.
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the In the case of the educational or training institution, the
offender; committee shall be composed of at least one (1)
representative from the administration, the trainors,
(3) When the sexual favor is made a condition to the instructors, professors or coaches and students or trainees,
giving of a passing grade, or the granting of honors as the case may be.
and scholarships, or the payment of a stipend,
allowance or other benefits, privileges, or The employer or head of office, educational or training
consideration; or institution shall disseminate or post a copy of this Act for the
information of all concerned.
(4) When the sexual advances result in an intimidating,
hostile or offensive environment for the student, SECTION 5. Liability of the Employer, Head of Office,
trainee or apprentice. Educational or Training Institution. - The employer or head
of office, educational or training institution shall be
Any person who directs or induces another to commit any solidarily liable for damages arising from the acts of sexual
act of sexual harassment as herein defined, or who harassment committed in the employment, education or
cooperates in the commission thereof by another without training environment if the employer or head of office,
which it would not have been committed, shall also be held educational or training institution is informed of such acts
liable under this Act. by the offended party and no immediate action is taken.

SECTION 4. Duty of the Employer or Head of Office in a SECTION 6. Independent Action for Damages. - Nothing
Work-related, Education or Training Environment. - It in this Act shall preclude the victim of work, education or
shall be the duty of the employer or the head of the work- training-related sexual harassment from instituting a separate
related, educational or training environment or institution, to and independent action for damages and other affirmative
prevent or deter the commission of acts of sexual harassment relief.
and to provide the procedures for the resolution, settlement or
prosecution of acts of sexual harassment. Towards this end, SECTION 7. Penalties. - Any person who violates the
the employer or head of office shall: provisions of this Act shall, upon conviction, be penalized by
imprisonment of not less than one (1) month nor more than
(a) Promulgate appropriate rules and regulations in six (6) months, or a fine of not less than Ten thousand pesos
consultation with and joint1y approved by the (P10,000) nor more than Twenty thousand pesos (P20,000),
employees or students or trainees, through their duly or both such fine and imprisonment at the discretion of the
designated representatives, prescribing the procedure court.
for the investigation of sexual harassment cases
and the administrative sanctions therefor. Any action arising from the violation of the provisions of this
Act shall prescribe in three (3) years.
Administrative sanctions shall not be a bar to
prosecution in the proper courts for unlawful acts
of sexual harassment.

The said rules and regulations issued pursuant to this


subsection (a) shall include, among others, guidelines
on proper decorum in the workplace and educational
or training institutions.

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Chapter II Art. 143. Minimum wage.


EMPLOYMENT OF MINORS
Househelpers shall be paid the following minimum wage
rates:

Art. 139. Minimum employable age.


(1) Eight hundred pesos (P800.00) a month for
(a) No child below fifteen (15) years of age shall be househelpers in Manila, Quezon, Pasay, and
employed, Caloocan cities and municipalities of Makati, San
Juan, Mandaluyong, Muntinlupa, Navotas, Malabon,
except Parañaque, Las Piñas, Pasig, Marikina, Valenzuela,
Taguig and Pateros in Metro Manila and in highly
 when he works directly under the sole urbanized cities;
responsibility of his parents or guardian, and
 his employment does not in any way interfere (2) Six hundred fifty pesos (P650.00) a month for those
with his schooling. in other chartered cities and first-class municipalities;
and
(b) Any person between fifteen (15) and eighteen (18)
years of age may be employed for such number of (3) Five hundred fifty pesos (P550.00) a month for those
hours and such periods of the day as determined by in other municipalities.
the Secretary of Labor and Employment in
appropriate regulations. Provided, That the employers shall review the employment
contracts of their househelpers every three (3) years with the
(c) The foregoing provisions shall in no case allow the end in view of improving the terms and conditions thereof.
employment of a person below eighteen (18) years
of age in an undertaking which is hazardous or Provided, further, That those househelpers who are receiving
deleterious in nature as determined by the Secretary at least One thousand pesos (P1,000.00) shall be covered by
of Labor and Employment. the Social Security System (SSS) and be entitled to all the
benefits provided thereunder. (As amended by Republic Act
No. 7655, August 19, 1993)
Art. 140. Prohibition against child discrimination.

No employer shall discriminate against any person in respect Art. 144. Minimum cash wage.
to terms and conditions of employment on account of his age.
The minimum wage rates prescribed under this Chapter shall
be the basic cash wages which shall be paid to the
Chapter III househelpers in addition to lodging, food and medical
EMPLOYMENT OF HOUSEHELPERS attendance.

Art. 141. Coverage.


Art. 145. Assignment to non-household work.
This Chapter shall apply to all persons rendering services in
households for compensation. No househelper shall be assigned to work in a commercial,
industrial or agricultural enterprise at a wage or salary rate
Domestic or household service – shall mean service in the lower than that provided for agricultural or non-agricultural
employer’s home which is usually necessary or desirable for workers as prescribed herein.
the maintenance and enjoyment thereof and includes
ministering to the personal comfort and convenience of the
members of the employer’s household, including services of Art. 146. Opportunity for education.
family drivers.
If the househelper is under the age of eighteen (18) years,
Art. 142. Contract of domestic service. the employer shall give him or her an opportunity for at least
elementary education. The cost of education shall be part of
The original contract of domestic service shall not last for the househelper’s compensation, unless there is a stipulation
more than two (2) years but it may be renewed for such to the contrary.
periods as may be agreed upon by the parties.

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Art. 147. Treatment of househelpers. Chapter IV


EMPLOYMENT OF HOMEWORKERS
The employer shall treat the househelper in a just and humane
manner. In no case shall physical violence be used upon the
househelper.
Art. 153. Regulation of industrial homeworkers.

Art. 148. Board, lodging, and medical attendance. The employment of industrial homeworkers and field
personnel shall be regulated by the government through the
The employer shall furnish the househelper, free of charge, appropriate regulations issued by the Secretary of Labor and
suitable and sanitary living quarters as well as adequate food Employment to ensure the general welfare and protection of
and medical attendance. homeworkers and field personnel and the industries employing
them.

Art. 149. Indemnity for unjust termination of services.


Art. 154. Regulations of Secretary of Labor.
If the period of household service is fixed, neither the
employer nor the househelper may terminate the contract The regulations or orders to be issued pursuant to this Chapter
before the expiration of the term, except for a just cause. If shall be designed to assure the minimum terms and conditions
the househelper is unjustly dismissed, he or she shall be paid of employment applicable to the industrial homeworkers or
the compensation already earned plus that for fifteen (15) field personnel involved.
days by way of indemnity.

If the househelper leaves without justifiable reason, he or Art. 155. Distribution of homework.
she shall forfeit any unpaid salary due him or her not
exceeding fifteen (15) days. For purposes of this Chapter, the

Employer of homeworkers – includes any person, natural or


Art. 150. Service of termination notice. artificial who, for his account or benefit, or on behalf of any
person residing outside the country, directly or indirectly, or
If the duration of the household service is not determined through an employee, agent contractor, sub-contractor or any
either in stipulation or by the nature of the service, the other person:
employer or the househelper may give notice to put an end to
the relationship five (5) days before the intended termination (1) Delivers, or causes to be delivered, any goods,
of the service. 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 accordance with his
Art. 151. Employment certification. directions; or

Upon the severance of the household service relation, the (2) Sells any goods, articles or materials to be processed
employer shall give the househelper a written statement of or fabricated in or about a home and then rebuys
the nature and duration of the service and his or her them after such processing or fabrication, either by
efficiency and conduct as househelper. himself or through some other person.

Art. 152. Employment record.

The employer may keep such records as he may deem


necessary to reflect the actual terms and conditions of
employment of his househelper, which the latter shall
authenticate by signature or thumbmark upon request of the
employer.

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